29 In accordance with its accounting policy and past practice, the Company accrues revenue credits for urea subsidy claims pending notification/ final acceptance by ‘Fertiliser Industry Coordination Committee’ (FICC), Government of India, in pursuance of the Pricing Scheme administered for nitrogenous fertilisers. The total amount receivable on account of such claims as on March 31,2025 is Rs 160.56 crores (March 31,2024 : Rs. 90.43 crores). Necessary adjustments to revenue credits so accrued will be made on issuance of notification by FICC, Government of India.

30 Segment reporting

A. Operating segments and principal activities:

Operating segments are defined as components for which discrete financial information is available and whose results are reviewed regularly by the chief operating decision maker (CODM), for allocation of resources and assessing performance. Accordingly, the following segments have been identified as under:

Chemicals and Vinyl (manufacturing of poly-vinyl chloride, carbide and chlor alkali products), Sugar and Ethanol (manufacturing of sugar, ethanol and cogeneration of Power), Fenesta building system (Windows and doors), Shriram Farm solutions (Plant nutrients, seeds and pesticides), Fertiliser (manufacturing of urea), Bioseed (production of hybrid seeds), Others (Cement, Rural retail and plaster of paris). Sale of power from the co-generation facilities set up for the operating segments is included in their respective results.

B. Geographical segments:

Since the Company’s activities/ operations are primarily within the country and considering the nature of products/ services it deals in, the risks and returns are same and as such there is only one geographical segment.

C. Segment accounting policies:

In addition to the material accounting policies applicable to the operating segments as set out in note 1.3, the accounting policies in relation to segment accounting are as under:

i) Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

ii) Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, trade receivables (net of loss allowances and provision), inventories and property, plant and equipment, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consists principally of trade payables. Segment assets and liabilities do not include deferred income taxes. While most of the assets/ liabilities can be directly attributed to individual segment, the carrying amount of certain assets/ liabilities pertaining to two or more segments are allocated to the segments on a reasonable basis.

iii) Inter segment sales:

Inter segment sales between operating segments are accounted for at market price. These transactions are eliminated in consolidation.

D. Revenue from major products:

Revenue from major products is given in note 58

E. Geographical information:

39 Research and development expenses included under relevant heads in the statement of profit and loss Rs. 51.55 crores (Previous year - Rs. 52.87 crores).

40 Employee share based payments (refer note 12)

The Company has an Employees Stock Purchase Scheme which is administered through DCM Shriram Employees Benefits Trust based on acquisition of shares from the market to provide equity based incentives to employees under the Scheme. The shares offered, lock-in-period and grant price may be different for different eligible participants and determined at the time of every grant of shares. The expenses related to the grant of shares under the Scheme is accounted for on the basis of the fair value (which equals to market price of the Company's share on date of grant less exercise price) of share on the date of grant and is amortized on a straight line basis over the lock-in period, if any.

44 Capital management

The Company endeavours to optimize debt and equity balance and provide adequate strength to the balance sheet. The Company monitors capital on the basis of debt equity ratio.

45 Financial risk management

The Company's activities expose it to various financial risks : Credit risk, Liquidity risk and Market risk.

45.1 Credit risk management

Credit risk arises from credit exposure to customers (including receivables and deposit), loans and other financial assets. The Company perform credit evaluation and defines credit limits for each customer/counter party. The Company also continuously reviews and monitors the same.

The provision for doubtful debts or provision for impairment of investments etc is made on case to case basis, based on the information related to financial position, past history/ageing and other relevant available information about the counter party.

The Company also makes provision for lifetime expected credit loss based on its previous experience of provision/write off in previous years.

45.2 Liquidity risk management

(i) The Company manages liquidity by ensuring control on its working capital which involves adjusting production levels and purchases to market demand and daily sales of production and low receivables. It also ensures adequate credit facilities sanctioned from bank to finance the peak estimated funds requirements. The working capital credit facilities are continuing facilities which are reviewed and renewed every year.

The Company also ensures that the long term funds requirements are met through adequate availability of long term capital (Debt & Equity).

45.3 Market Risk

a) The Company's operations are mainly in India and therefore rupee denominated, except the following:

- Foreign currency denominated loans (Long term & Short term)

- Imports of some raw material, stores & spares and capital equipments

- Export of finished goods

The Company follows a policy of keeping these liabilities/assets fully hedged against foreign currencies. Regarding interest rate fluctuation, it follows a policy of partial hedge.

Some of the rupee liabilities have interest linked to the bank's MCLR or Financial market benchmark rates and are subject to variation in such rates.

b) Foreign Currency Risk

Foreign currency risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because of changes in foreign currency rates. The Company's exposure to the risk of changes in foreign exchange rates relates to import and exports of materials and plant and equipment, foreign currency borrowings and net investment in foreign subsidiaries. The following table shows foreign currency exposures in USD and Euro on financial instruments at the end of the reporting period. The exposure to all other foreign currencies are not material.

c) Interest rate risk exposure

Interest rate risk is the risk that changes in market interest rates will lead to changes in fair value of financial instruments or changes in interest income, expense and cash flows of the Company. The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company's interest rate exposure is mainly related to debt obligations.

50 Hon'ble High Court of Allahabad vide its order dated February 12, 2019 has set aside and quashed the notification withdrawing the Sugar Industrial Promotion Policy 2004 (Policy). The State Government has filed special leave petition (SLP) with Supreme Court against the above said order. The Company has not accrued the benefits consequent to the above said order due to uncertainties of the amount and the collection thereof.

51 The Board of Directors, in its meeting held on May 05, 2025, have recommended a final dividend of Rs. 3.40 /- per equity share of Rs 2/- each aggregating to Rs. 53.02 crores for the financial year ended March 31, 2025. The recommendation is subject to the approval of shareholders at the forthcoming Annual General Meeting.

1. Net debt = Total borrowings - cash and cash equivalents - bank balances other than cash and cash equivalents (other than earmarked balances)

2. Earnings = Profit before tax ( ) Depreciation and amortisation ( ) Finance cost (-) interest and dividend income (-) net gain/(loss) on sale of current investments

3. Net finance charges = Finance cost (including interest capitalised on qualifying assets during construction period) (-) interest and dividend income (-) net gain/(loss) on sale of current investments

4. Average networth® = On year end closing basis

(i) Net worth = Equity share capital other equity (excluding share held by trust under ESPS and cash flow hedging reserve)

5. Average inventory = On quarter closing basis*

6. Average trade receivables = On quarter closing basis*

7. Total purchases = Cost of raw material consumed Consumption of stores and spares Purchases of stock-in-trade Change in inventories of raw material and stores & spares

8. Average trade payables = On quarter closing basis*

9. Average working capital"⁰ = On quarter closing basis*

(ii) Working capital = Current assets - Current liabilities

10. Average capital employed¹"⁰ = On quarter closing basis*

(iii) Capital employed = Total assets [excluding Investments, Cash and cash equivalents, bank balances other than cash and cash equivalents (other than earmarked balances), Capital work in progress, Capital advances and Intangible assets under development] - Total liabilities [excluding total borrowings, Capital creditors and Deferred tax assets/(liabilities)(net)]

11. Profit before interest, depreciation and tax (EBIDTA) = Profit before tax ( ) Depreciation and amortisation ( ) Finance costs.

* Opening and closing numbers are audited, while, quarter ended June, September, December numbers are based on unaudited books of accounts