15.1 Terms / rights attached to equity shares:

The company has only one class of equity shares having a face value of ? 10/-per share. Each holder of equity share is entitled to one vote per share. In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

16.3 The Company has not defaulted on repayment of loans and interest payment thereon during the current and previous year.

16.4 The Company has utilised funds raised from borrowings from banks and financial institutions for the specific purposes for which they were issued/taken

16.5 The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or after the end of reporting period but before the date when financial statements are approved.

16.6 The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.

20.1 Working capital rupee loans as on 31^st March 2024 are availed from Cosmos Bank, ICICI bank, HDFC Bank and YES Bank. The interest rates on borrowing is 9.25% p.a., 8.65% p.a., 8.65% p.a. and 7.95% p.a. respectively. The Working Capital Loan is secured with Pari Passu charge on Inventory, book debts and secondary charge on assets of Chinchwad plant and Kedgaon plant.

20.2 Foreign currency working capital loan as on 31^st March 2024 is availed from ICICI Bank. The interest rates on borrowing is 6.22% p.a. Secured against raw material against export order and/or receivable of specific export order and secondary charge on assets of Chinchwad plant and Kedgaon plant.

20.3 Short term borrowings from Directors and Promoters group are unsecured and carries interest @ 10.5% p.a. The maturities of these loans fall on July 2024.

20.4 The Company has utilised funds raised from borrowings from banks and financial institutions for the specific purposes for which they were issued/taken.

20.5 The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.

Note 37 Ind AS 116 " Leases "

Operating lease where Company is a lessee:

The Company has entered into non-cancellable operating lease for land. Effective April 01, 2019, the Company adopted Ind AS 116 "Leases" and applied the standard to the lease contract existing on 1^st April, 2019 using modified retrospective method. In accordance with transitional provisions of Ind AS 116 " Leases", the Company recognised the lease liability at the date of initial application i.e. April 01, 2019 at the present value of remaining lease payments, discounted using incremental borrowing rate of the Company. The Company recognised right-of-use asset at an amount equal to the lease liability. Right-of-use asset is depreciated on straight line method based on balance number of months of lease term.

On transition, the adoption of the new standard resulted in recognition of lease liability of ' 0.33 Cr and corresponding 'Right of use' asset of ' 3.94 Cr as at 1^st April, 2019.

The weighted average incremental borrowing rate applied to lease liabilities as at April 01,2021 is 9.50%.

Following practical expedients were elected on initial application of the Standard:

(i) Not to apply this standard to contracts that were not previously identified as containing a lease in terms of IND AS 17

(ii) Applied exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application

(iii) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

Note 39 Segment information

39.1 Segment description :

Operating segments are reported in a manner consistent with the internal reporting provided to the Chairman and Managing Director who are responsible for allocating resources to and assessing the performance of operating segments. Following business segments have been considered as primary segments :

a) Building Material segment, which consists of manufacturing and trading of asbestos sheets, flat sheets, non-asbestos flat sheets, accessories for roofing products, doors and other building material.

b) Power Generation segment, which consists of generation of electricity through windmills.

39.2 Segment accounting policies:

In addition to the significant accounting policies applicable to the business segments as set out in note 2 above, the accounting policies in relation to segment accounting are as under:

i. Segment revenue and expenses:

Segment revenue and expenses include the respective amounts identifiable to each of the segments. Unallocable items in segment results include income from bank deposits, dividend, profit on sale of investments and corporate expenses.

ii. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, trade receivables, inventories and fixed assets (net of allowances and provisions), which are reported as direct off sets in the balance sheet. Segment liabilities include all operating liabilities and consists principally of creditors and accrued liabilities.

The measurement of each segment's revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the Company's financial statements.

iii. Inter segment revenue :

The company adopts a policy of pricing inter segment revenue at comparable cost to the transferee segment.

Note 40 Corporate Social Responsibility expenditure

Expenditure incurred on corporate social responsibility activities is ' 1.44 Crores (Previous Year ' 1.28 Crores.). Average net profit/(loss) for last three financial years calculated as per section 198 of Companies Act, 2013 is ' 71.95 Crores (Previous Year ' 63.94 Crores).

The financial instruments are categorized in to three levels based on the inputs used to arrive at fair value measurements

as described below -

Level 1 - Quoted prices in active markets for identical assets and liabilities.

Level 2 - Inputs other than the quoted prices included within level 1 that are observable for assets or liability either directly or indirectly.

Level 3 - Inputs based on unobservable market data

Management uses its best judgement in estimating fair value of financial instruments. However there are inherent limitations in any estimation techniques. Therefore for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the company could have realised or paid in sale transactions as on respective date. As such the fair value of financial instruments subsequent to the reporting date may be different from the amounts reported at each reporting date.

B) Financial Risk Management

The company has a exposure to the following risks arising from financial instruments -

- Credit risk

- Liquidity risk

- Market risk

Risk Management

The Company's senior management oversees the management of these risks. The senior management assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the company.

i. Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments

Trade Receivable:

Customer credit risk is managed subject to the Company's established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

Cash and cash equivalents:

Bank deposits are made with reputed banks and hence credit risk associated with it is generally low.

ii. Liquidity Risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time. The company's approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liability when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company's reputation.

iii. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from change in the price of financial instruments. Market risk comprises of three types of risks: interest risk, foreign currency fluctuation risk and other price risk such as commodity price risk. The objective of market risk management is to manage and control market risk exposure within acceptable parameters while optimizing profits.

* Managerial remuneration includes employers PF contribution but excludes post employment benefit of gratuity and Provision for leave benefit scheme, as separate figures for KMP and relatives of KMP is not available being actuarially determined on an overall basis. Post employement benefits are included on payment basis.

The sitting fees paid to non-executive directors is ? 0.0268 Crores and ? 0.0275 Crores for the year ended March 31,2024 and March 31, 2023 respectively. The Sitting fees payable to non-executive directors as on March 31, 2024 is ? 0.0018 (? Nil as on March 31, 2023)

Note 46 The Company has not advanced any loans or advances in the nature of loans to specified persons viz. promoters, directors, KMPs, related parties; which are repayable on demand or where the agreement does not specify any terms or period of repayment.

Note 47 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Note 48 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 49 The Company does not have any transaction which is not recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

Note 50 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

Note 51 Disclosure related to Struck-Off Companies

There are no transactions and / or disputed balances outstanding with companies struck off under section 248 of the Companies Act, 2013.

Note 52 Dividends

Dividends paid during the year ended March 31, 2024 include an amount of ? 1.50 per equity share towards final dividend for the year ended March 31, 2023.

Dividends paid during the year ended March 31, 2023 include an amount of ? 3.00 per equity share towards final dividend for the year ended March 31, 2022 and an amount of ? 2.50 per equity share towards interim dividends for the year ended March 31, 2023.

Dividends declared by the Company are based on the profit available for distribution. On May 25, 2024, the Board of Directors of the Company have proposed a final dividend of INR 1 per share in respect of the year ended March 31, 2024 subject to the approval of shareholders at the Annual General Meeting.

Note 1 - Return on Equity/Net Profit/Return on Capital employed is reduced mainly due to drop in operating margin on account of inflation in Raw material cost

Note 2 - Higher returns on Mutual funds 54 Update on Code on Social Security, 2020

The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

55 Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

56 Previous years' figures have been regrouped/rearranged, wherever necessary.