Notes to Accounts of Amara Raja Energy & Mobility Ltd.

Mar 31, 2025

(i) The amount of expenditure recognised in the carrying amount of property, plant and equipment (including capital work-in progress) in the course of construction is T 8.78 crores (March 31, 2024: T 4.67 crores) [Refer Note 39].

(ii) Land admeasuring 18.94 acres amounting to T 77.84 crores is registered in the name of Mangal Industries Limited, erstwhile Company from which plastic component business was demerged and merged with the Company pursuant to the Scheme of Arrangement approved by Hon''ble National Company Law Tribunal [Refer Note 47]. The aforementioned land parcel is pending registration in the name of the Company.

Leasehold land admeasuring 15.66 acres amounting to ? 25.85 crores is registered in the name of Mangal Industries Limited, erstwhile Company from which plastic component business was demerged and merged with the Holding Company pursuant to the Scheme of Arrangement approved by Hon''ble National Company Law Tribunal [Refer Note 47]. The aforementioned lease is pending to be registered in the name of the Holding Company.

The Company holds shares of Inobat AS and Log 9 Materials Scientific Private Limited. The management of the Company do not consider that the Company is able to exercise significant influence over these entities as majority of the equity share capital is held by other shareholders, who also manage the day-to-day operations of these entities.

The valuation methodology for these investments is disclosed in Note 43D.

These investments are not held for trading. Instead, they are held for medium to long-term strategic purposes. Accordingly, the management of the Company have elected to designate these investments in equity instruments as at FVTOCI as they believe that recognising short-term fluctuations in these investments'' fair value in profit or loss would not be consistent with the Company''s strategy of holding these investments for long-term purposes and realising their performance potential in the long run.

(i) The average credit period for after market sales is one week and for sales to other customers is in the range of 30 - 60 days. No interest is charged on overdue receivables, except for overdue balances of related parties.

(ii) Of the trade receivables balance, T 188.70 crores (as at March 31, 2024: T 224.58 crores) is due from one of the Company''s large customer (March 31, 2024: two of the Company''s large customers). There are no other customers who represent more than 10% of the total balance of trade receivables.

(iii) The Company has used a practical expedient by computing the expected credit loss allowance for doubtful trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forwardlooking estimates. The expected credit loss allowance is based on the ageing of the receivables which are due and the rates used in the provision matrix.

(ii) Rights, preferences and restrictions attached to the equity shares:

The Company has only one class of shares referred to as equity shares having a face value of T 1 each. Each holder of equity share is eligible for one vote per share held. The Company declares and pays dividends in Indian rupees and foreign currency. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the holders of equity shares will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by the shareholders.

Pursuant to the business combination approved by Hon''ble National Company Law Tribunal which was effective from February 1, 2024, term loans were transferred in the name of the Company.

(ii) The interest free sales tax deferment loans were availed by the Company under the Government of Andhra Pradesh TARGET 2000 New Industrial Policy as per which the loans are repayable at the end of the 14^th year from the year in which these loans were availed. The Company has also entered into agreements with the Deputy Commissioner of Commercial Taxes, Chittoor in respect of the aforementioned loans as per which the repayment schedule of the loans have been determined as being repayable at the end of the 14^th year from the month in which these loans were availed. The Management is however of the

view that these loans are repayable at the end of the 14^th year from the year in which these loans were availed in terms of the sanction of these loans by the Government of Andhra Pradesh, Commissionerate of Industries and are accordingly making an yearly repayment of these loans.

Note 30: Exceptional items

On January 30, 2023, a fire broke out at one of the manufacturing facilities of the Company at Chittoor, Andhra Pradesh which caused damage to the Company''s property, plant and equipment and inventories. There were no loss of lives. The Company recognised a loss of ? 438.56 crores arising from such incident and the said losses and the corresponding credit arising from the insurance claim receivable were presented on a net basis during the year ended March 31, 2023.

During the year ended March 31, 2025, the Company has received an on-account payment of ? 175 crores from the Insurance Company (March 31, 2024: ? 224.13 crores) towards the insurance claim (including on reinstatement basis for property, plant and equipment) lodged on account of damage to its assets. The Company has also realised ? 11.07 crores (March 31, 2024: ? 100.13 crores) from processing and/or sale of scrap generated from the fire accident.

An amount of ? 111.07 crores representing difference between the cumulative amount received and the insurance claim receivable recognised in books, has been recognised as exceptional item in the Statement of Profit and Loss.

Note 31: Contingent liabilities and commitments
	As at March 31, 2025	As at March 31, 2024
(i) Contingent Liabilities (to the extent not provided for) :
Claims against the Company not acknowledged as debt
Matters under dispute:
- Excise duty / Service tax / Customs	97.34	86.80
- Sales tax/VAT and GST	71.21	22.28
- Income tax	26.48	24.92
- Electricity related (Refer Note below)	45.61	36.28
- Other (Building and other construction workers welfare cess, wealth tax, etc. )	8.85	9.08
It is not practicable for the Company to estimate the closure of these issues and the consequential timings of cash flows, if any, in respect of the above.
Note:
Includes an amount of ? 10.54 crores (March 31, 2024: ? 10.54 crores) which has been claimed by Andhra Pradesh Gas Power Corporation Limited (''APGPCL'') with respect to the power supplied by it to the Company through Andhra Pradesh Southern Power Distribution Corporation Limited (''APSPDCL''). The Management has contended that the said dues charged by APSPDCL as part of the regular electricity bills has been duly discharged by the Company to APSPDCL.
APGPCL has also consequently placed a lien on the investment held by the Company in it for non-payment of dues. The Management has initiated arbitration proceedings against the claim and the said action of APGPCL and is confident of a favourable outcome in this matter.
(ii) Commitments:
	As at March 31, 2025	As at March 31, 2024
(a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of capital advances)	382.89	590.07
(b) The Company has certain outstanding export obligations/ commitments which the Management is confident of meeting within the stipulated period of time / obtaining suitable extensions, wherever required.
(c) The Company has committed a capital investment of ? 495.51 crores to the State Industries Promotion Corporation of Tamil Nadu Limited upon entering into a lease agreement for land in Cheyyar for 99 years.

	As at March 31, 2025	As at March 31,2024
(d) As per the Battery Waste Management Rules, 2022, as amended, the Company has an obligation to complete the Extended Producer Responsibility (EPR) targets based on batteries placed in the market. The Company is confident of fulfilling the obligation of EPR targets through the generation of required EPR credits from waste batteries collection and other approved mechanisms.
(e) As per the E-Waste (Management) Rules, 2022, as amended, the Company has an obligation to complete the Extended Producer Responsibility (EPR) targets. The obligation for a financial year is measured based on sale of inverters made in the preceding 7^th year. The Company shall fulfil its obligation for the current financial year through purchase of EPR credits. The Company believes that it will have an e-waste obligation for future years, only if it participate in the market in such years.
(f) The Company along with its subsidiaries has entered into a Memorandum of Understanding with the Government of Telangana for setting up of new energy related projects in the State of Telangana.
Note 32: Based on and to the extent of information available with the Company under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), the relevant particulars as at reporting date are furnished below:

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

Note 33: Assets classified as held for sale

Pursuant to approval granted by the Board of Directors at their meeting held on January 25, 2023, the Management entered into a Business Transfer Agreement (BTA), as amended with Amara Raja Advanced Cell Technologies Private Limited ("ARACTâ), a wholly-owned subsidiary of the Company for sale/transfer of the New Energy Business of the Company as a going concern on a slump sale basis, for a consideration of ? 223.96 crores representing the net assets sold/transferred on June 1, 2023.

b. Defined benefit plans

The Company provides to the eligible employees defined benefit plans in the form of gratuity. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days'' salary payable for each completed year of service. Vesting occurs upon completion of five continuous years of service. The measurement date used for determining retirement benefits for gratuity is March 31.

These plans typically expose the Company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Risk Management:

Investment risk - The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Interest rate risk - The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to market yields at the end of the reporting period on government bonds. A decrease in yields will increase the fund liabilities and vice-versa.

Longevity risk - The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk - The present value of the defined benefit plan is calculated with reference to the future salaries of participants under the plan. Increase in salary due to adverse inflationary pressures might lead to higher liabilities.

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognised in the Balance Sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous year.

Note 35: Segment reporting

The Company publishes Standalone Financial Statements along with Consolidated Financial Statements. In accordance with Indian Accounting Standard (Ind AS) 108 on Operating segments, the Company has disclosed the segment information in the Consolidated Financial Statements. Accordingly, the segment information is given in the Consolidated Financial Statements of Amara Raja Energy & Mobility Limited and its subsidiaries for the year ended March 31, 2025.

Note 42: Details of Provisions

(a) Provision for warranty is made for estimated warranty claims in respect of sale of certain storage batteries which are still under warranty at the end of the reporting period, the estimated cost of which is accrued at the time of sale. These claims are expected to be settled as and when warranty claims arise. The provision for warranty claims represents the present value of the Management''s best estimate of the future outflow of economic benefits that will be required under the Company''s obligation for warranties. Management estimates the provision based on historical warranty claim information and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality. The products are generally covered under a free warranty period ranging from 6 months to 42 months.

Note 43: Financial instruments and related disclosures

A. Capital Management

The Company''s financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company funds its operations through internal accruals. The Company aims at maintaining a strong capital base largely towards supporting the future growth of its businesses as a going concern. The capital structure of the Company is based on Management''s judgment of its strategic day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

The Management and the Board of Directors monitor the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary, adjust its capital structure.

Equity share capital and other equity are considered for the purpose of Company''s Capital Management.

C. Financial risk management objectives

The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, foreign currency risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Company''s risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also seeks to drive accountability in this regard. The key risks and mitigating actions are overseen by the Board of Directors of the Company.

Liquidity Risk

The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. Also, the Company has unutilised credit limits with banks. The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended March 31, 2025 and March 31, 2024. Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis.

The Company regularly maintains the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short-term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and mutual funds with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

The Company''s current assets aggregate ? 3,571.36 crores (March 31, 2024 ? 3,549.02 crores) including Current investments, Cash and cash equivalents and Other bank balances of ? 227.76 crores (March 31, 2024 ? 369.44 crores) against an aggregate current liability of ? 2,200.34 crores (March 31, 2024 ? 1,657.92 crores). The table below provides details regarding the contractual maturities of significant non-current financial liabilities as of March 31, 2025 and March 31, 2024. Contractual maturities in respect of lease liabilities has been disclosed in Note 38.

Further, while the Company''s total equity stands at ? 7,378.27 crores (March 31, 2024: ? 6,768.65 crores crores), it has borrowings of ? 144.52 crores (March 31, 2024: ? 53.33 crores). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligations as they become due does not exist.

Market Risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is primarily not exposed to interest rate risk considering the amount of borrowings availed from banks. Further, treasury activities, focused on managing current investments are administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation. The Company invests in Mutual Fund schemes of leading fund houses. Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of underlying portfolio of the Mutual Fund schemes in which the Company has invested, such price risk is not significant. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility.

Commodity Price Risk

Material cost is the largest cost component for the Company, thus exposing it to the risk of price fluctuations based on the supply and demand conditions of those materials. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. The Company has put in place a mix of long-term and short-term mitigation plans. The long-term price view consisted of identifying single vendor dependency and finding alternate vendors and sources for the same. The Company also has a robust process of estimating the prices periodically, analyzing deviations, if any, and taking short-term corrective measures in addition to altering the outlook for the long-term, if required. The Company also leverages its financial resources to modify the inventory levels as required keeping in mind the price outlook in the near term. Similarly, the Company modifies the contract period in negotiations with the vendors to either lock in prices or link them to expected market prices. During the year ended March 31, 2025 and March 31, 2024, the Company had not entered into any derivative contracts to hedge exposure to fluctuations in commodity prices.

Foreign Currency Risk

The Company is subject to the risk that changes in foreign currency values impact the Company''s export revenues and import of raw materials and property, plant and equipment. The Company is exposed to foreign exchange risk arising from currency exposures, primarily with respect to US Dollars, EURO and GBP. Financial assets and liabilities denominated in foreign currency, are also subject to reinstatement risk.

The Company manages currency exposures within prescribed limits. The aim of the Company''s approach to management of currency risk is to leave the Company with no material residual risk.

Foreign currency sensitivity analysis

For every percentage point increase in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, holding all other variables constant, the profit before tax for the year ended March 31, 2025 would change by T 1.24 crores [March 31, 2024: T 1.39 crores]. For every percentage point decrease in the underlying exchange rate would have led to an equal but opposite effect.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in foreign currency rates.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligation.

Concentration of credit risk with respect to trade receivables are limited, due to Company''s customer base being large and diverse. All trade receivables are reviewed and assessed for default on a monthly basis. The Company''s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. loss allowances and impairment is recognised, where considered appropriate by responsible management.

The credit risk on cash and bank balances and fixed deposits is limited because the counterparties are banks with high credit ratings.

D. Fair value measurement Fair value hierarchy

The fair value of financial instruments as referred to in Note 43.B above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identified assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements]

The following levels have been used for classification:

â¢ Level 1: Quoted prices (unadjusted) for identical instruments in active market.

â¢ Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs

â¢ Level 3: Inputs which are not based on observable market data.

If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparty.

The carrying amount of financial assets and financial liabilities measured at amortised cost in the Financial Statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has classified certain unquoted equity instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the year.

Notes:

(i) The performance of investments in unquoted shares of Andhra Pradesh Gas Power Corporation Limited along with the relevant economic and market indicators, supply chain challenges and closure of power plants resulted in diminution in the fair value of the investment. Accordingly, the Company had determined the fair value of the Investment as T Nil in the previous years and recorded the resultant change in fair value in other comprehensive income. There has been no change in these factors during the current year.

(ii) During the year, the Company, based on a valuation carried out and available market information, has determined the fair value of its investment in the equity and preference shares of Log 9 Materials Scientific Private Limited (''Log 9'') at T Nil, owing to the business of Log 9 facing challenges of unfavourable economic conditions, operational disruptions and financial distress. Other comprehensive loss includes the resultant fair value change of T 225.61 crores (net of tax T 35.00 crores).

(iii) During the year, the Company as part of its strategic initiatives has made an additional investment of T 178.94 crores in Inobat AS (''Inobat''). The investment was recorded at transaction cost and irrevocably designated at fair value through other comprehensive income (''FVTOCI''). No fair value change was recorded as at March 31, 2025 considering that another investment by an unrelated party in Inobat closer to March 31, 2025 was made at the same rate as that of the aforesaid additional investment.

Additionally, as at March 31, 2025, the initial investment made in earlier years, also designated at FVTOCI was fair valued using the transaction rate at which the additional investment was made during the year. The resultant fair value gain of T 62.50 crores (net of tax T 10.43 crores) was recorded in the other comprehensive income.

Interim dividend of T 5.30 per equity share of face value of T 1 each approved by the Board of Directors at its meeting held on November 04, 2024 was paid during the current year. The Board of Directors at its meeting held on May 29, 2025 has recommended a dividend of T 5.20 per equity share of face value of T 1 each which is subject to approval of the shareholders at the ensuing Annual General Meeting of the Company and hence is not recognised as a liability. The total dividend (including interim dividend) for FY 2024-25 amounts to T 10.50 per equity share (Previous year T 9.90 per equity share).

Note 47: Business combination

The Board of Directors of the Company at its meeting held on September 26, 2022 approved a Scheme of Arrangement amongst Mangal Industries Limited (''Demerged Company'') and Amara Raja Energy & Mobility Limited (formerly known as Amara Raja Batteries Limited) [''the Company''] and their respective shareholders and creditors, under the provisions of Section 230 to 232 and other applicable provisions of the Companies Act, 2013 ("the Scheme"). The Scheme, inter-alia, provides for demerger of the plastic component for battery business (''Demerged Undertaking'') from the demerged company to the Company. The Scheme has been approved by the Hon''ble jurisdictional National Company Law Tribunal (''NCLT'') vide its order dated January 10, 2024, and the same has become effective from February 1, 2024.

The Demerged Company is engaged in various businesses such as Plastic Component for Battery Business, manufacturing of auto components (including fasteners, plastics, copper inserts /connectors and others), metal fabrication, storage solution, lead bushes and trading of various products, etc. The entire output generated from the Plastic Component for Battery Business is currently sold to the Company. This backward integration is expected to enhance the Company''s control over the supply and inventory management of its raw materials. This would help with a unified approach on supply chain management and consequent synergies leading to optimization of resource utilisation, reduced operational, logistics, supervisory and overhead / utilities costs, reduce duplication of administrative efforts and better procurement policies and prices, for the Resulting Company.

"The Company had given effect to the Scheme in accordance with the MCA''s General Circular 9/2019 dated August 21, 2019 from April 1, 2022 being the appointed date as per the Scheme and the previously issued standalone financial statements for the year ended March 31, 2023 were restated.

The excess of the purchase consideration paid aggregating T 672.56 crores over the fair value of assets acquired of T 244.57 crores has been attributed to goodwill of T 427.99 crores. The primary items that generated this goodwill are the value of the acquired assembled workforce and estimated synergies, neither of which qualify as an intangible asset. And acquisition results in enhanced control over the supply and inventory management of its raw materials. This would help with a unified approach on supply chain management and consequent synergies leading to optimization of resource utilisation, reduced operational, logistics, supervisory and overhead / utilities costs, reduce duplication of administrative efforts and better procurement policies and prices. Goodwill is not tax-deductible.

Note 48:

The Company had entered into a Share Purchase Agreement with RNGalla Family Private Limited (promoter of the Company) to purchase entire shareholding in Amara Raja Power Systems Limited (""ARPSL""), an entity primarily engaged in the manufacture of industrial chargers, integrated power systems, EV chargers for 2W and 3W applications and other energy management devices for a consideration of T 133 crores. The transaction was concluded on September 29, 2023.

Note 49:

The Company on April 30, 2021 received closure orders from the Andhra Pradesh Pollution Control Board (''APPCB'') for the Company''s plants situated at Karakambadi, Tirupati and Nunegundlapalli Village, Chittoor District. Consequently, the Company went in appeal against the said orders to the Hon''ble High Court of Andhra Pradesh at Amravati, which granted interim suspension of the closure orders. The plants of the Company were closed for a period of 5 days during the quarter ended June 30, 2021, from the date of closure orders till the date of the said interim suspension. The Company did not incur any material loss during the period of closure.

APPCB also issued two show cause notices in February, 2022 against which the Company filed a special leave petition with the Hon''ble Supreme Court which vide its order dated February 20, 2023 disposed off the matter for it to be heard at the lower courts and the same is pending disposal.

The Management has also been working with the APPCB to satisfactorily resolve the matter.

Note 50:

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment benefits has been enacted. However, the date on which the Code will come into effect has not yet been notified. The Management will complete its evaluation and will give appropriate impact in its financial statements in the period in which the Code becomes effective.

Note 51: The standalone financial statements are approved for issue by the Audit Committee and Board of Directors at their meetings held on May 29, 2025.

Mar 31, 2024

(i) The amount of expenditure recognised in the carrying amount of property, plant and equipment (including capital work-in progress) in the course of construction is T 4.67 crores (March 31, 2023: T 14.74 crores) [Refer Note 39].

(iii) Capital work-in-progress ageing schedule

* There are no capital work-in-progress where completion is overdue against original planned timelines or where estimated cost exceeded its original planned cost as on March 31, 2023. Project execution plans are calibrated annually on the basis of Management''s judgement and estimates w.r.t future business, technology developments / economy / industry / regulatory environment and all the projects are assessed as per rolling annual plan.

Leasehold land admeasuring 15.66 acres amounting to ? 25.85 crores is registered in the name of Mangal Industries Limited, erstwhile Company from which plastic component business was demerged and merged with the Company pursuant to the Scheme of Arrangement approved by Hon''ble National Company Law Tribunal [Refer Note 47]. The aforementioned lease is pending to be registered in the name of the Company.

(i) Allocation of Goodwill to cash generating units

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the Cash Generating Units (CGU) or groups of CGUs, which benefit from the synergies of the acquisition which is assessed primarily to be the lead acid batteries business.

The Company tests goodwill on an annual basis and whenever there is an indication that the CGU to which the goodwill has been allocated may be impaired. The goodwill impairment test is performed at the level of the CGU or group of CGUs that benefit from the synergies of the acquisition and which represents the lowest level at which goodwill is monitored for internal management purposes. The recoverable amount is determined based on higher of value-in-use and fair value less cost of disposal. Where there is no basis for making a reliable estimate of the price at which an orderly transaction to sell the asset would take place between market participants at the measurement date under current market conditions, the recoverable amount is determined by value-in-use. In determining the value-in-use, cash flow projections approved by appropriate level of management are considered. In circumstances where a reliable value-in-use estimate is difficult to make whereas market value of the asset or the CGU or group of CGUs is readily available, the latter is used for the determination of recoverable amount with appropriate adjustments, where applicable. As at March 31, 2024, based on the Company''s assessment of the recoverable amount duly considering the prevailing market factors and other information related to the lead acid batteries business, no impairment indicators exist.

* There are no intangible assets under development where completion is overdue against original planned timelines or where estimated cost exceeded its original planned cost as on March 31, 2024 and March 31, 2023. Project execution plans are calibrated annually on the basis of Management''s judgement and estimates w.r.t future business, technology developments / economy / industry / regulatory environment and all the projects are assessed as per rolling annual plan.

(i) The Company has advanced working capital loan to Amara Raja Advanced Cell Technologies Private Limited which is repayable on demand and carries an interest of 8% p.a.

(ii) The Company as part of its strategic initiative to venture into new energy business and EV batteries had entered into a transaction agreement with Inobat AS [Formerly known as Inobat Auto AS], Oslo Norway (''InoBat Auto'') for investment by way of conditionally convertible instruments in Inobat Auto for a value of Euro 9.90 Million. Due to the conditions not being met, the investment had been classified as loan as per terms of the agreement and is recoverable within a period of 1 year from the date of initial investment along with simple interest @ 8% p.a. The parties entered into an amendment agreement dated May 5, 2023 to extend the tenure by another six months.

Subsequent to the amendment agreement, the parties entered into another amendment agreement dated October 26, 2023 to convert the principal and interest portion of the loan into equity based on the terms and conditions. Consequently, the debt instrument was de-recognised and the equity instrument has been recognised at the conversion price which is representative of the fair value.

(i) The cost of inventories recognised as an expense during the year has been disclosed on the face of the Statement of Profit and Loss, Notes 25 and 29. During the previous year, an amount of T 199.43 crores has been recognised as loss of inventories on account of fire accident (Refer Note 31).

(ii) The cost of inventories recognised as an expense includes T 1.92 crores (during 2022-23: T 3.38 crores) in respect of writedowns of inventory to net realisable value, and has been reduced by T Nil crores (during 2022-23: T Nil) in respect of reversal of such write-downs.

(iii) There are no inventories expected to be liquidated after more than twelve months.

(iv) The mode of valuation of inventories has been stated in Note 2.E.

(ii) Of the trade receivables balance, T 224.58 crores (as at March 31, 2023: T 150.03 crores) is due from two of the Company''s large customers (March 31, 2023: one of the Company''s large customer). There are no other customers who represent more than 10% of the total balance of trade receivables.

(ii) Rights, preferences and restrictions attached to the equity shares:

All amounts are in T crores, except share data and where otherwise stated

(2) The interest free sales tax deferment loans were availed by the Company under the Government of Andhra Pradesh TARGET 2000 New Industrial Policy as per which the loans are repayable at the end of the 14th year from the year in which these loans were availed. The Company has also entered into agreements with the Deputy Commissioner of Commercial Taxes, Chittoor in respect of the aforementioned loans as per which the repayment schedule of the loans have been determined as being repayable at the end of the 14th year from the month in which these loans were availed. The Management is however of the view that these loans are repayable at the end of the 14th year from the year in which these loans were availed in terms of the sanction of these loans by the Government of Andhra Pradesh, Commissionerate of Industries and are accordingly making an yearly repayment of these loans.

The deferred revenue of ? 70.58 crores (March 31, 2023: ? 74.49 crores) arises primarily as a result of duty benefit received on import of plant and equipment under Export Promotion Capital Goods (EPCG) schemes of the Government of India. It also includes subsidy received on lease of immovable property from State Industries Promotion Corporation of Tamil Nadu. The deferred revenue will be recognised in the Statement of Profit and Loss in the proportion of depreciation charged on such assets.

Note 22: Assets classified as held for sale

Note: The tax rate used for the year 2023-2024 and 2022-2023 reconciliations above is the corporate tax rate of 25.168% payable by corporate entities in India on taxable profits under the Indian tax law.

Note 31: Exceptional items

The Company had a valid mega all risk insurance policy covering the fire accident and lodged a claim with the Insurance Company for losses suffered on account of the property, plant and equipment, inventories and loss of profits. The Insurance Company admitted the claim based on an interim survey carried out by the surveyor appointed by it and the extent of final loss admissible under the policy is being evaluated by the surveyor. The Company estimated and recognised an insurance claim receivable in respect of the claim in accordance with its accounting policy. The aforementioned losses and the corresponding credit arising from the insurance claim receivable were presented on a net basis under Exceptional items for the year ended March 31, 2023.

During the year ended March 31, 2024, the Company has received an adhoc payment of T 224.13 crores from the Insurance Company and has realised T 100.13 crores from processing and/or sale of scrap. The Company is confident of realizing the balance amount on final determination of the loss and completion of the related activities.

Note 32: Contingent liabilities and commitments
	As at March 31, 2024	As at March 31,2023 [Restated]
(i) Contingent Liabilities (to the extent not provided for) :
Claims against the Company not acknowledged as debt
Matters under dispute:
- Excise duty / Service tax	86.80	63.58
- Sales tax/VAT and GST	22.28	9.70
- Income tax	24.92	23.39
- Electricity related (Refer Note below)	36.28	36.10
- Other (Building and other construction workers welfare cess, wealth tax, etc. )	9.08	9.07

It is not practicable for the Company to estimate the closure of these issues and the consequential timings of cash flows, if any, in respect of the above.

Note: Includes an amount of T 10.54 crores (March 31, 2023: T 10.54 crores) which has been claimed by Andhra Pradesh Gas Power Corporation Limited (''APGPCL'') with respect to the power supplied by it to the Company through Andhra Pradesh Southern Power Distribution Corporation Limited (''APSPDCL''). The Management has contended that the said

All amounts are in ? crores, except share data and where otherwise stated

dues charged by APSPDCL as part of the regular electricity bills has been duly discharged by the Company to APSPDCL. APGPCL has also consequently placed a lien on the investment held by the Company in it for non-payment of dues. The Management has initiated arbitration proceedings against the claim and the said action of APGPCL and is confident of a favourable outcome in this matter.

(ii)	Commitments:
		As at March 31, 2024	As at March 31, 2023 [Restated]
(a)	Estimated amount of contracts remaining to be executed on capital account and not provided for (net of capital advances)	590.07	235.22
7b)	The Company has certain outstanding export obligations/ commitments which the Management is confident of meeting within the stipulated period of time / obtaining suitable extensions, wherever required.
7)	The Company along with its subsidiaries has entered into a Memorandum of Understanding with the Government of Telangana for setting up of new energy related projects in the State of Telangana.
7)	The Company has committed a capital investment of ? 495.51 crores to the State Industries Promotion Corporation of Tamil Nadu Limited upon entering into a lease agreement for land in Cheyyar for 99 years.

b. Defined benefit plans

These plans typically expose the Company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Risk Management:

Investment risk - The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Interest rate risk - The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

Note 42: Details of Provisions

A. Capital Management

Equity share capital and other equity are considered for the purpose of Company''s Capital Management.

C. Financial risk management objectives

The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. Also, the Company has unutilised credit limits with banks. The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended March 31, 2024 and March 31, 2023. Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis.

The Company''s current assets aggregate T 3,549.02 crores (March 31, 2023 T 3,327.06 crores) including Current investments, Cash and cash equivalents and Other bank balances of T 369.44 crores (March 31, 2023 T 123.60 crores) against an aggregate current liability of T 1,657.92 crores (March 31, 2023 T 1,487.48 crores). The table below provides details regarding the contractual maturities of significant non-current financial liabilities as of March 31, 2024 and March 31, 2023. Contractual maturities in respect of lease liabilities has been disclosed in Note 38.

Further, while the Company''s borrowings stands at T 53.33 crores (March 31, 2023: T 111.06 crores) it has a total equity of T 6,768.65 crores (March 31, 2023: T 6,005.64 crores). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligations as they become due does not exist.

Market Risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is primarily not exposed to interest rate risk considering the amount of borrowings availed from banks & which were transferred under the Scheme of Arrangement. Further, treasury activities, focused on managing current investments are administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation. The Company invests in Mutual Fund schemes of leading fund houses. Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of underlying portfolio of the Mutual Fund schemes in which the Company has invested, such price risk is not significant. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility.

Commodity Price Risk

Material cost is the largest cost component for the Company, thus exposing it to the risk of price fluctuations based on the supply and demand conditions of those materials. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. The Company has put in place a mix of long-term and short-term mitigation plans. The long-term price view consisted of identifying single vendor dependency and finding alternate vendors and sources for the same. The Company also has a robust process of estimating the prices periodically, analyzing deviations, if any, and taking short-term corrective measures in addition to altering the outlook for the long-term, if required. The Company also leverages its financial resources to modify the inventory levels as required keeping in mind the price outlook in the near term. Similarly, the Company modifies the contract period in negotiations with the vendors to either lock in prices or link them to expected market prices. During the year ended March 31, 2024 and March 31, 2023, the Company had not entered into any derivative contracts to hedge exposure to fluctuations in commodity prices.

Foreign Currency Risk

The Company manages currency exposures within prescribed limits. The aim of the Company''s approach to management of currency risk is to leave the Company with no material residual risk.

Foreign currency sensitivity analysis

For every percentage point increase in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, holding all other variables constant, the profit before tax for the year ended March 31, 2024 would change by T 1.39 crores [March 31, 2023: T 1.80 crores]. For every percentage point decrease in the underlying exchange rate would have led to an equal but opposite effect.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in foreign currency rates.

Credit risk

diverse. All trade receivables are reviewed and assessed for default on a monthly basis. The Company''s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. loss allowances and impairment is recognised, where considered appropriate by responsible management.

The credit risk on cash and bank balances and fixed deposits is limited because the counterparties are banks with high credit ratings.

D. Fair value measurement Fair value hierarchy

The following levels have been used for classification:

â¢ Level 1: Quoted prices (unadjusted) for identical instruments in active market.

â¢ Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs

â¢ Level 3: Inputs which are not based on observable market data.

(i) During the previous year ended March 31, 2023, the performance of investments in unquoted shares of Andhra Pradesh Gas Power Corporation Limited along with the relevant economic and market indicators, supply chain challenges and closure of power plants resulted in indicators of impairment. Accordingly, the Company determined the fair value of the Investment as ? Nil and recorded the impairment loss in other comprehensive income. There has been no change in these factors during the current year.

(ii) The fair value of equity and preference shares carried at fair value through other comprehensive income were determined using indirect market observable inputs and recent transactions for same / similar securities.

Interim dividend of ? 4.80 per equity share of face value of ? 1 each approved by the Board of Directors at its meeting held on October 31, 2023 was paid during the current year. The Board of Directors at its meeting held on May 28, 2024 has recommended a dividend of ? 5.10 per equity share of face value of ? 1 each which is subject to approval of the shareholders at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability. The total dividend (including interim dividend) for FY 2023-24 amounts to ? 9.90 per equity share (Previous year ? 6.10 per equity share).

Note 47: Business Combination

The Board of Directors of the Company at its meeting held on September 26, 2022 approved a Scheme of Arrangement amongst Mangal Industries Limited (''Demerged Company'') and Amara Raja Energy & Mobility Limited (formerly known as Amara Raja Batteries Limited) [''the Company''] and their respective shareholders and creditors, under the provisions of Section 230 to 232 and other applicable provisions of the Companies Act, 2013 (âthe Schemeâ). The Scheme, inter-alia, provides for demerger of the plastic component for battery business (''Demerged Undertaking'') from the demerged company to the Company. The Scheme has been approved by the Hon''ble jurisdictional National Company Law Tribunal (''NCLT'') vide its order dated January 10, 2024, and the same has become cffective from February 1, 2024.

The Company has given effect to the Scheme in accordance with the MCA''s General Circular 9/2019 dated August 21, 2019 from April 1, 2022 being the appointed date as per the Scheme and the previously issued standalone financial statements for the year ended March 31, 2023 have been restated, as below.

Fair Value of the Consideration transferred:

The fair value of purchase consideration was determined as ? 672.56 crores which has been discharged through issue of 1,22,12,864 fully paid-up equity shares of face value of ? 1/- each to the equity shareholders of the Demerged Company, in accordance with the share entitlement ratio (65 equity shares of the Company for every 74 equity shares held) approved in the Scheme. Consequent to the approval of the scheme, these shares were alloted to RN Galla Family Private Limited (shareholders of demerged Company). The fair value of the shares issued has been determined based on the Volume-weighted average market price as on the Appointed Date. The transaction was accounted in accordance with the acquisition method as per Ind AS 103 â Business Combination. As per Ind AS 103, purchase consideration has been allocated on the basis of fair valuation determined by an independent valuer.

The excess of the purchase consideration paid over the fair value of assets acquired has been attributed to goodwill. The primary items that generated this goodwill are the value of the acquired assembled workforce and estimated synergies, neither of which qualify as an intangible asset. And acquisition results in enhanced control over the supply and inventory management of its raw materials. This would help with a unified approach on supply chain management and consequent synergies leading to optimization of resource utilisation, reduced operational, logistics, supervisory and overhead / utilities costs, reduce duplication of administrative efforts and better procurement policies and prices. Goodwill is not tax-deductible.

Acquisition related costs:

During the year ended March 31, 2024 acquisition related costs of T 17.13 Crores had been recognised under Rates and Taxes, Legal and professional Expenses and Miscellaneous Expenses in the Statement of Profit and Loss.

Note 48: Acquisitions

The Company entered into a Share Purchase Agreement with RNGalla Family Private Limited (promoter of the Company) to purchase entire shareholding in Amara Raja Power Systems Limited ("ARPSLâ), an entity primarily engaged in the manufacture of industrial chargers, integrated power systems, EV chargers for 2W and 3W applications and other energy management devices for a consideration of T 133 crores. The acquisition of shares has been disclosed as Investments in subsidiary in Note 5 and ARPSL has become a wholly-owned subsidiary of the Company effective September 29, 2023.

Note 49:

The Management has also been working with the APPCB to satisfactorily resolve the matter.

Note 50:

Note 51: The standalone financial statements are approved for issue by the Audit Committee and Board of Directors at their meetings held on May 28, 2024.

Mar 31, 2023

The deferred revenue of ?74.49 crores (March 31,2022: ?76.50 crores) arises primarily as a result of duty benefit received on import of plant and equipment under Export Promotion Capital Goods (EPCG) schemes of the Government of India. It also includes subsidy received on lease of immovable property from State Industries Promotion Corporation of Tamil Nadu. The deferred revenue will be recognised in the Statement of Profit and Loss in the proportion of depreciation charged on such assets.

Note 22: Assets classified as held for sale

Pursuant to approval granted by the Board of Directors at their meeting held on January 25, 2023, the Management entered into a Business Transfer Agreement (BTA), as amended with Amara Raja Advanced Cell Technologies Private Limited ("ARACT"), a wholly-owned subsidiary of the Company for sale/transfer of the New Energy Business of the Company as a going concern on a slump sale basis, effective June 1,2023, for a consideration specified in the said agreement. The completion of the transaction is subject to the conditions of the BTA.

The New Energy Business which is expected to be sold within 12 months has been classified as disposal group held for sale and presented separately in the balance sheet. The proceeds of disposal are expected to be at the carrying amount of the related net assets and accordingly no impairment losses have been recognized on the classification of this business as held for sale. The major classes of assets and liabilities comprising the business classified as held for sale are as follows:

Note 31: Exceptional items

On January 30, 2023, a fire broke out at one of the manufacturing facilities of the Company at Chittoor, Andhra Pradesh which caused damage to the Company''s property, plant and equipment and inventories. There were no loss of lives. The Company has recognised a loss of ?438.56 crores arising from such incident for the year ended March 31,2023. The loss is estimated based on an evaluation of physical condition of property, plant and equipment and inventories, which is subject to a technical inspection by equipment manufacturers or chartered engineers and an assessment of recovery/salvage value by the designated vendors.

The Company has a valid mega all risk insurance policy covering the fire accident and has lodged a claim with the Insurance Company for losses suffered on account of the property, plant and equipment, inventories and loss of profits. The Insurance Company has admitted the claim based on an interim survey carried out by the surveyor appointed by it and the extent of final loss admissible under the policy is being evaluated by the surveyor. The Company has estimated and recognised an insurance claim receivable in respect of the claim in accordance with its accounting policy. As on the date of approval of these financial statements by the Board of Directors, the Company has received an adhoc payment of ?100 crores from the Insurance Company and is confident of realizing the balance amount on final determination of the loss and completion of the related activities.

The aforementioned losses and the corresponding credit arising from the insurance claim receivable has been presented on a net basis under Exceptional items in these standalone financial statements.

Note 32: Contingent liabilities and commitments
	As at March 31, 2023	As at March 31, 2022
(i) Contingent Liabilities (to the extent not provided for) :
Claims against the Company not acknowledged as debt
Matters under dispute:
- Excise duty / Service tax	63.58	61.00
- Sales tax/VAT and GST	9.70	9.89
- Income tax	23.39	0.86
- Electricity related (Refer Note below)	36.10	33.43
- Other (Building and other construction workers welfare cess, wealth tax, etc.)	9.07	8.95
It is not practicable for the Company to estimate the closure of these issues and the consequential timings of cash flows, if any, in respect of the above.

Note:

Includes an amount of ? 10.54 crores (March 31,2022: ? 8.04 crores) which has been claimed by Andhra Pradesh Gas Power Corporation Limited (''APGPCL'') with respect to the power supplied by it to the Company through Andhra Pradesh Southern Power Distribution Corporation Limited (''APSPDCL''). The Management has contended that the said dues charged by APSPDCL as part of the regular electricity bills has been duly discharged by the Company to APSPDCL.

APGPCL has also consequently placed a lien on the investment held by the Company in it for non-payment of dues. The Management has initiated arbitration proceedings against the claim and the said action of APGPCL and is confident of a favourable outcome in this matter.

(ii) Commitments:
	As at March 31, 2023	As at March 31, 2022
(a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of capital advances)	235.22	373.41
(b) The Company has certain outstanding export obligations/ commitments which the Management is confident of meeting within the stipulated period of time / obtaining suitable extensions, wherever required.
(c) The Company along with its subsidiaries has entered into a Memorandum of Understanding with the Government of Telangana for setting up of new energy related projects in the State of Telangana.
(d) The Company has Committed a capital investment of ? 495.51 crores to the State Industries Promotion Corporation of Tamil Nadu Limited upon entering into a lease agreement for land in Cheyyar for 99 years.

Note 34: Employee benefits

a. Defined contribution plans

The Company makes Provident Fund, Superannuation Fund and Employees'' State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. The Company recognised ?16.51 crores (Year ended March 31,2022: ?14.51 crores) for provident fund contributions, ?15.36 crores (Year ended March 31,2022: ?15.35 crores) for Superannuation Fund contributions and ?4.27 crores (Year ended March 31,2022: ?3.93 crores) towards Employees'' State Insurance Scheme contributions in the Statement of Profit and Loss.

b. Defined benefit plans

These plans typically expose the Company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk. Risk Management:

Investment risk - The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Note 35: Segment reporting

The Chairman & Managing Director of the Company has been identified as the Chief Operating Decision Maker (CODM) who evaluates the Company''s performance and allocates resources for manufacture and marketing of lead acid and other storage batteries. Accordingly, manufacturing and trading of lead acid and other storage batteries is considered as the operating segment of the Company.

Geographical information

The Company operates in India and makes certain sales to customers situated outside India. The revenue from external customers by location of customers is detailed below. All the non-current assets of the Company are situated within India.

Note 42: Details of Provisions

Note 43: Financial instruments and related disclosures A. Capital Management

Equity share capital and other equity are considered for the purpose of Company''s Capital Management.

C. Financial risk management objectives

Liquidity Risk

The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended March 31, 2023 and March 31,2022. Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis.

Further, while the Company''s total equity stands at ?5,297.84 crores (March 31,2022: ?4,551.39 crores), it has borrowings of ?16.52 crores (March 31,2022: ?23.39 crores). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligations as they become due does not exist.

Market Risk

As the Company is virtually debt-free and its deferred payment liabilities do not carry interest, the exposure to interest rate risk from the perspective of financial liabilities is negligible. Further, treasury activities, focused on managing current investments are administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation. The Company invests in Mutual Fund schemes of leading fund houses. Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of underlying portfolio of the Mutual Fund schemes in which the Company has invested, such price risk is not significant. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility.

Foreign Currency Risk

The Company manages currency exposures within prescribed limits.

The aim of the Company''s approach to management of currency risk is to leave the Company with no material residual risk.

Foreign currency sensitivity analysis

For every percentage point increase in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, holding all other variables constant, the profit before tax for the year ended March 31, 2023 would change by ?1.80 crores [March 31,2022: ?(0.93 crores)]. For every percentage point decrease in the underlying exchange rate would have led to an equal but opposite effect.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in foreign currency rates.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligation. Concentration of credit risk with respect to trade receivables are limited, due to Company''s customer base being large and diverse. All trade receivables are reviewed and assessed for default on a monthly basis. The Company''s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. loss allowances and impairment is recognised, where considered appropriate by responsible management.

Note 43: Financial instruments and related disclosures (Contd.)

D. Fair value measurement Fair value hierarchy

The following levels have been used for classification:

Level 1: Quoted prices (unadjusted) for identical instruments in active market.

Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs Level 3: Inputs which are not based on observable market data.

Notes:

(i) During the year ended March 31,2023, the performance of investment in unquoted shares of Andhra Pradesh Gas Power Corporation Limited along with the relevant economic and market indicators, Supply chain challenges and closure of power plants resulted in indicators of impairment. Accordingly, the Company determined the fair value of the Investment as ? Nil and recorded the impairment loss in Other Comprehensive Income.

(ii) During the previous year, the Company as part of its strategic initiatives has made an investment of ?36.99 crores in Series A of Log 9 Materials Scientific Private Limited (''Log 9 Materials'') by acquiring 11.86% (on a fully diluted basis) of shareholding in Log 9 Materials. Log 9 Materials is an advanced battery and deep-tech start up providing state of art batteries in terms of EV batteries, energy storage on fuel cells, etc. The investment was recognised at transaction cost and irrevocably designated at fair value through other comprehensve income.

During the the current year, the Company made an additional investment of ?77 crores in the Series B of Log 9 Materials increasing its shareholding to 14.33% (on a fully diluted basis). The Series A investment was fair valued to the transaction cost of Series B funding and based on the market observable inputs the transaction cost of Series B was considered as the best estimate of fair value as at March 31,2023.

Considering the availability of market observable inputs indirectly, the investment was reclassified under Level 2 from Level 3.

Note 47:

The Board of Directors of the Company at its meeting held on September 26, 2022, have approved a Scheme of Arrangement amongst Mangal Industries Limited (''Demerged Company'') and Amara Raja Batteries Limited (''ARBL'' or the ''Resulting Company'', or the ''Company'') and their respective shareholders and creditors, under the provisions of Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 ("Scheme") with an appointed date of April 1,2022 or such other date as may be agreed. The Scheme, inter-alia, provides for demerger of the plastic component for battery business (''Demerged Undertaking'') from the Demerged Company to the Resulting Company, and consequent issue of fully paid-up equity shares by the Company to the shareholders of the Demerged Company as per the share entitlement ratio defined in the Scheme. The Scheme is subject to the fulfilment of certain conditions including receipt of approval of shareholders (majority of public shareholders) and creditors of the Company, approval of other regulatory authorities as may be required, including those of the Stock Exchanges, Securities and Exchange Board of India ("SEBI") and the Hon'' ble jurisdictional National Company Law Tribunal ("NCLT") and any other authority as may be applicable.

As on the date of approval of these standalone financial statements by the Board, the Company has received no objection from the stock exchanges and an approval from the equity shareholders and unsecured creditors of the Company at the NCLT convened meetings held on April 12, 2023. Thereafter, an application has been filed with the Hon''ble NCLT, Amaravati Bench for its approval.

The necessary effects of scheme would be given in the standalone financial statements in the period in which the Scheme is approved. Note 48:

The Management has also been working with the APPCB to satisfactorily resolve the matter.

Note 49:

Note 50:

The standalone financial statements are approved for issue by the Audit Committee and Board of Directors at their meetings held on May 23, 2023.

Mar 31, 2022

Notes:

(i) The cost of inventories recognised as an expense during the year has been disclosed on the face of the Statement of Profit and Loss, Notes 24 and 28.

(ii) The cost of inventories recognised as an expense includes C5 crores (during 2020-21: C2.21 crores) in respect of write-downs of inventory to net realisable value, and has been reduced by C Nil (during 2020-21: C Nil) in respect of reversal of such write-downs.

(iii) There are no inventories expected to be liquidated after more than twelve months.

(iv) The mode of valuation of inventories has been stated in Note 2.E.

(ii) There are no customers who represent more than 10% of the total balance of trade receivables as at March 31,2022 and March 31,2021.

(iii) The Company has used a practical expedient by computing the expected credit loss allowance for doubtful trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking estimates. The expected credit loss allowance is based on the ageing of the receivables which are due and the rates used in the provision matrix.

(ii) Rights, preferences and restrictions attached to the equity shares:

The Company has only one class of shares referred to as equity shares having a face value of C1 each. Each holder of equity share is eligible for one vote per share held. The Company declares and pays dividends in Indian rupees and foreign currency. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the holders of equity shares will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by the shareholders.

The interest free sales tax deferment loans were availed by the Company under the Government of Andhra Pradesh TARGET 2000 New Industrial Policy as per which the loans are repayable at the end of the 14^th year from the year in which these loans were availed. The Company has also entered into agreements with the Deputy Commissioner of Commercial Taxes, Chittoor in respect of the aforementioned loans as per which the repayment schedule of the loans have been determined as being repayable at the end of the 14^th year from the month in which these loans were availed. The Management is however of the view that these loans are repayable at the end of the 14^th year from the year in which these loans were availed in terms of the sanction of these loans by the Government of Andhra Pradesh, Commissionerate of Industries and are accordingly making an yearly repayment of these loans.

It is not practicable for the Company to estimate the closure of these issues and the consequential timings of cash flows, if any, in respect of the above.

Note :

Includes an amount of C 8.04 crores which has been claimed by Andhra Pradesh Gas Power Corporation Limited (''APGPCL'') with respect to the power supplied by it to the Company through Andhra Pradesh Southern Power Distribution Corporation Limited (''APSPDCL''). The Management has contended that the said dues charged by APSPDCL as part of the regular electricity bills has been duly discharged by the Company to APSPDCL.

NOTE 32: EMPLOYEE BENEFITS

a. Defined contribution plans

The Company makes Provident Fund, Superannuation Fund and Employees'' State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. The Company recognised C 14.51 crores (Year ended March 31,2021: C12.12 crores) for provident fund contributions, C 15.35 crores (Year ended March 31, 2021: C 15.38 crores) for Superannuation Fund contributions and C3.93 crores (Year ended March 31,2021: C3.74 crores) towards Employees'' State Insurance Scheme contributions in the Statement of Profit and Loss.

b. Defined benefit plans

These plans typically expose the Company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Risk Management:

Investment risk - The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

The estimates of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.

Demographic assumptions

Mortality in Service: Indian Assured Lives Mortality 2012-14 (Urban) [Year ended March 31,2021: Indian Assured Lives Mortality (2006-08) Ultimate table].

NOTE 33: SEGMENT REPORTING

The Chairman, Managing Director & CEO of the Company has been identified as the Chief Operating Decision Maker (CODM) who evaluates the Company''s performance and allocates resources for manufacture and marketing of lead acid storage batteries. Accordingly, manufacturing and trading of lead acid storage batteries is considered as the operating segment of the Company.

Geographical information

NOTE 38: DISCLOSURE AS PER REGULATION 53(F) OF SECURITIES EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015:

(i) Loans and advances in the nature of loans given to Companies in which Directors are interested C Nil (March 31,2021: C Nil)

(ii) Details of investments made under Section 186 of the Companies Act, 2013 are disclosed in Note 5. There are no loans/guarantees issued under Section 186 of the Companies Act, 2013 read with rules issued thereunder.

NOTE 40: DETAILS OF PROVISIONS

NOTE 41: FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES

A. Capital Management

Equity share capital and other equity are considered for the purpose of Company''s Capital Management.

C. Financial risk management objectives

Liquidity Risk

The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. Also, the Company has unutilised credit limits with banks. The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended March 31, 2022 and March 31, 2021. Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis.

The Company regularly maintains the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs.

Any short-term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and mutual funds with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

The Company''s current assets aggregate C2,824.02 crores (March 31,2021 C2,820.87 crores) including Current investments, Cash and cash equivalents and Other bank balances of C88.30 crores (March 31, 2021C449.23 crores) against an aggregate current liability of C 1,527.34 crores (March 31, 2021 C1,329.45 crores). The table below provides details regarding the contractual maturities of significant non-current financial liabilities as of March 31, 2022 and March 31, 2021. Contractual maturities in respect of lease liabilities has been disclosed in Note 36.

Further, while the Company''s total equity stands at C4,551.39 crores (March 31, 2021: C4,210.26 crores), it has borrowings of C23.39 crores (March 31, 2021: C34.34 crores). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligations as they become due does not exist.

Market Risk

The Company continues to hold certain investments in equity for long term value accretion which are accordingly measured at fair value through Other Comprehensive Income. The value of investments in such equity instruments as at March 31, 2022 is C42.47 crores (March 31, 2021 C6.54 crores). Accordingly, fair value fluctuations arising from market volatility is recognised in Other Comprehensive Income. As the Company is virtually debt-free and its deferred payment liabilities do not carry interest, the exposure to interest rate risk from the perspective of financial liabilities is negligible. Further, treasury activities, focused on managing current investments are administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation. The Company invests in Mutual Fund schemes of leading fund houses. Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of underlying portfolio of the Mutual Fund schemes in which the Company has invested, such price risk is not significant. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility.

Foreign Currency Risk

The Company is subject to the risk that changes in foreign currency values impact the Company''s export revenues and import of raw materials and property, plant and equipment. The Company is exposed to foreign exchange risk arising from currency exposures, primarily with respect to US Dollars. Financial assets and liabilities denominated in foreign currency, are also subject to reinstatement risk.

The Company manages currency exposures within prescribed limits. The aim of the Company''s approach to management of currency risk is to leave the Company with no material residual risk.

Foreign currency sensitivity analysis

For every percentage point increase in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, holding all other variables constant, the profit before tax for the year ended March 31,2022 would change by C (0.93) crores [March 31,2021: C(0.56 crores)]. For every percentage point decrease in the underlying exchange rate would have led to an equal but opposite effect.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in foreign currency rates.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligation.

Concentration of credit risk with respect to trade receivables are limited, due to Company''s customer base being large and diverse. All trade receivables are reviewed and assessed for default on a monthly basis. The Company''s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. Loss allowances and impairment is recognised, where considered appropriate by responsible management.

D. Fair value measurement Fair value hierarchy

The fair value of financial instruments as referred to in Note 41.B above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identified assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements]

The following levels have been used for classification:

â¢ Level 1: Quoted prices (unadjusted) for identical instruments in active market.

â¢ Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs

â¢ Level 3: Inputs which are not based on observable market data.

(i) These investments in equity instruments are not held for trading. Instead, they are held for long term strategic purpose. Upon the application of Ind AS 109, the Company has chosen to designate these investments in equity instruments as at FVTOCI irrevocably as the Management believes that this provides a more meaningful presentation for long term strategic investments, than reflecting changes in fair value immediately in profit or loss.

(ii) The Company as part of its strategic initiatives has made an investment of C36.99 crores in Log 9 Materials Scientific Private Limited (''Log 9 Materials'') by acquiring 11.86% (on a fully diluted basis) of shareholding in Log 9 Materials. Log 9 Materials is an advanced battery and deep-tech start up providing state of art batteries be it in terms of EV batteries, energy storage on fuel cells. The investment was recognised at transaction cost and irrevocably designated at fair value through other comprehensve income. Owing to the nature of this initial investment (in unquoted instrument) and as permitted by Ind AS, where insufficent, more recent information is not available to measure fair value, cost has been assessed to be the best estimate of fair value as at March 31,2022.

Interim dividend of C4 per equity share of face value of each approved by the Board of Directors at its meeting held on November 12, 2021 was paid during the current year. The Board of Directors at its meeting held on May 20, 2022 has recommended a dividend of C0.50 per equity share of face value of C1 each which is subject to approval of the shareholders at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability. The total dividend (including interim dividend) for FY 2021-22 amounts to C4.5 per equity share (Previous year C11 per equity share).

NOTE 45:

The Company on April 30, 2021 received closure orders from the Andhra Pradesh Pollution Control Board (APPCB'') for the Company''s plants situated at Karakambadi, Tirupati and Nunegundlapalli Village, Chittoor District. Consequently, the Company went in appeal against the said orders to the Hon''ble High Court of Andhra Pradesh at Amravati, which granted interim suspension of the closure orders. The plants of the Company were closed for a period of 5 days during the quarter ended June 30, 2021, from the date of closure orders till the date of the said interim suspension. The Company did not incur any material loss during the period of closure. In the interim, APPCB has issued further two show cause notices in February, 2022 against which the Company filed a special leave petition with the Hon''ble Supreme Court which vide its order dated May 19, 2022 has stayed further proceedings arising out of the said show cause notices. The Management has been working with the APPCB to satisfactorily resolve the matter.

NOTE 46:

NOTE 47:

The financial statements are approved for issue by the Audit Committee and Board of Directors at their meetings held on May 20, 2022.

Mar 31, 2019

1. Corporate Information

Amara Raja Batteries Limited (âthe Companyâ) is one of the largest manufacturer of lead-acid storage batteries for industrial and automotive applications in India. The equity shares of the Company are listed on the BSE Limited and the National Stock Exchange of India Limited. The Companyâs products are supplied to customer groups viz., Telecom, Railways, Power Control, Solar and UPS under Industrial Battery business; and to Automobile OEMs, Replacement Market and Private Label Customers under Automotive Battery business. The Companyâs products are exported to various countries in the Indian Ocean Rim. The Company also provides installation, commissioning and maintenance services. The leading automotive and industrial battery brands of the Company are AmaronÂ®, PowerZoneâ¢, Power StackÂ®, AmaronVoltÂ® and QuantaÂ®.

(_i) The cost of inventories recognised as an expense during the year has been disclosed on the face of the Statement of Profit and Loss, Notes 23 and 27.

(ii) The cost of inventories recognised as an expense includes RS. 0.74 crores (during 2017-18: RS. 0.24 crores) in respect of write-downs of ⁽ inventory to net realisable value, and has been reduced by D Nil ( during 2017-18 : D Nil ) in respect of reversal of such write-downs.

(iii) There are no inventories expected to be liquidated after more than twelve months.

(iv) The mode of valuation of inventories has been stated in Note 2.E.

Notes:

(_ii) Of the trade receivables balance, Rs.84.00 crores (as at March 31, 2018 : Rs. Nil ) is due from one of the Companyâs large customers. There are no other customers who represent more than 10% of the total balance of trade receivables.

(iii) The Company has used a practical expedient by computing the expected credit loss allowance for doubtful trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking estimates. The expected credit loss allowance is based on the ageing of the receivables which are due and the rates used in the provision matrix.

(ii) Rights, preferences and restrictions attached to the equity shares:

The Company has only one class of shares referred to as equity shares having a face value of each. Each holder of equity share is eligible for one vote per share held. The Company declares and pays dividends in Indian rupees and foreign currency. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the holders of equity shares will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by the shareholders.

Note:

The interest free sales tax deferment loans were availed by the Company under the Government of Andhra Pradesh TARGET 2000 New Industrial Policy as per which the loans are repayable at the end of the 14th year from the year in which these loans were availed. The Company has also entered into agreements with the Deputy Commissioner of Commercial Taxes, Chittoor in respect of the aforementioned loans as per which the repayment schedule of the loans have been determined as being repayable at the end of the 14th year from the month in which these loans were availed. The Management is however of the view that these loans are repayable at the end of the 14th year from the year in which these loans were availed in terms of the sanction of these loans by the Government of Andhra Pradesh, Commissionerate of Industries and are accordingly making yearly repayment of these loans.

Note:

The deferred revenue of RS. 54.96 crores (March 31, 2018: RS. 55.02 crores) arises primarily as a result of duty benefit received on import of plant and equipment under Export Promotion Capital Goods (EPCG) schemes of the Government of India. The deferred revenue will be recognised in the Statement of Profit and Loss in the proportion of depreciation charged on such assets.

(iv) Includes RS. 8.41 crores (for the year ended March 31, 2018 : RS. 7.30 crores) recognised as income in proportion to the depreciation charged to the Statement of Profit and Loss. [Refer Note 20]

(v) The Government of India introduced the Goods and Services Tax (GST) with effect from July 1, 2017. Accordingly, in compliance with the Indian Accounting Standards and Schedule III of the Companies Act 2013, revenue from operations for the periods beginning July 1, 2017 is presented net of GST. Revenue from operations for the period up to June 30, 2017 included excise duty which now is subsumed in GST.

Note 2: Employee benefits

a. Defined contribution plans_

The Company makes Provident Fund, Superannuation Fund and Employeesâ State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. The Company recognised RS. 7.17 crores (Year ended March 31, 2018: RS. 5.76 crores) for provident fund contributions, RS. 9.89 crores (Year ended March 31, 2018: RS. 7.66 crores) for Superannuation Fund contributions and RS. 4.82 crores (Year ended March 31, 2018: RS. 4.55 crores) towards Employeesâ State Insurance Scheme contributions in the Statement of Profit and Loss.

b. Defined benefit plans

The Company provides to the eligible employees defined benefit plans in the form of gratuity. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 daysâ salary payable for each completed year of service. Vesting occurs upon completion of five continuous years of service. The measurement date used for determining retirement benefits for gratuity is March 31.

These plans typically expose the Company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Risk Management:

Investment risk - The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Interest rate risk - The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

Longetivity risk - The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan participants will increase the planâs liability.

Salary risk - The present value of the defined benefit plan is calculated with reference to the future salaries of participants under the plan. Increase in salary due to adverse inflationary pressures might lead to higher liabilities.

Note 3: Segment reporting

The Vice Chairman and Managing Director of the Company has been identified as the Chief Operating Decision Maker (CODM) who evaluates the Companyâs performance and allocates resources for manufacture and marketing of lead acid storage batteries. Accordingly, manufacturing and trading of lead acid storage batteries is considered as the operating segment of the Company,

Geographical information

Note 4: The Company had purchased. 8.68 hectares of freehold land for a consideration of RS. 15.59 crores in 2011-12 at Tehsil Laksar, District Haridwar, Uttarakhand State. Under the terms of sanction by the State Government for sale of such land, a manufacturing unit was to be set up within two years from the date of purchase of land, which owing to unforeseen circumstances could not take place. The District Collector vide order dated November 10, 2014 initiated proceedings for vesting the aforementioned land with the State Government. Based on legal advice, the Company had in the past years gone in appeal against the order of the District Collector with the Court of Board of Revenue, Dehradun, Uttarakhand State, (âthe Courtâ) which in the interim, had stayed the proceedings. The Court vide its order dated May 25, 2017 rejected the appeal filed by the Company, consequent to which the said freehold land has vested back with the State Government. The Company is in the process of evaluating various options to pursue the said order of the Court.

The Company had in the previous years, fully impaired the value of the aforesaid land. Consequent to the transition to Ind AS, and the Companyâs election to continue with the carrying amount of all of its property, plant and equipment recognised as of April 1, 2015 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as on the transition date, the provision for impairment recorded in respect of the said land before the date of transition under previous GAAP cannot be reversed in later years.

The Companyâs significant leasing arrangements are in respect of operating leases for premises (offices and warehouses). These leasing arrangements which are cancellable, range between 1 year and 9 years generally and are usually renewable by consent on mutually agreeable terms. The aggregate lease rentals of RS. 18.42 crores (year ended March 31, 2018: RS. 17.66 crores) paid under such arrangements has been charged to Statement of Profit and Loss as âRentâ under Note 27.

Note 5: Disclosure as per Regulation 53(F) of Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

(i) Loans and advances in the nature of loans given to Companies in which Directors are interested Rs. Nil (March 31, 2018: Rs. Nil)

(a) Provision for warranty is made for estimated warranty claims in respect of sale of certain storage batteries which are still under warranty at the end of the reporting period, the estimated cost of which is accrued at the time of sale. These claims are expected to be settled as and when warranty claims arise. Management estimates the provision based on historical warranty claim information and any recent trends that may suggest that future claims could differ from historical amounts. The products are generally covered under a free warranty period ranging from 6 months to 42 months.

Note 6: Financial instruments and Related Disclosures

A. Capital Management

The Companyâs financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company funds its operations through internal accruals. The Company aims at maintaining a strong capital base largely towards supporting the future growth of its businesses as a going concern. The capital structure of the Company is based on Managementâs judgment of its strategic day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

Equity share capital and other equity are considered for the purpose of Companyâs Capital Management.

C. Financial risk management objectives

The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, foreign currency risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Companyâs risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also seeks to drive accountability in this regard. The key risks and mitigating actions are overseen by the Board of Directors of the Company.

Liquidity Risk

The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. Also, the Company has unutilised credit limits with banks. The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended March 31, 2019 and March 31, 2018. Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis.

The Companyâs Current assets aggregate to RS. 2,204.07 crores (March 31, 2018 - RS. 2,152.30 crores) including Current investments, Cash and cash equivalents and Other bank balances of RS. 72.05 crores (March 31, 2018 - RS. 126.61 crores) against an aggregate Current liability of RS. 902.47 crores (March 31, 2018- RS. 992.98 crores). The table below provides details regarding the contractual maturities of significant Non-current financial liabilities as of March 31, 2019 and March 31, 2018:

Further, while the Companyâs total equity stands at RS. 3335.32 crores (March 31, 2018: RS. 2,937.39 crores), it has borrowings of RS. 58.43 crores (March 31, 2018: RS. 63.53 crores). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligations as they become due does not exist.

Market Risk

As the Company is virtually debt-free and its deferred payment liabilities do not carry interest, the exposure to interest rate risk from the perspective of Financial Liabilities is negligible. Further, treasury activities, focused on managing current investments are administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation. The Company invests in Mutual Fund schemes of leading fund houses. Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of underlying portfolio of the Mutual Fund schemes in which the Company has invested, such price risk is not significant. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility.

Foreign Currency Risk

The Company is subject to the risk that changes in foreign currency values impact the Companyâs export revenues and import of raw materials and property, plant and equipment. The Company is exposed to foreign exchange risk arising from currency exposures, primarily with respect to US Dollars. Financial assets and liabilities denominated in foreign currency, are also subject to reinstatement risk.

The Company manages currency exposures within prescribed limits. The aim of the Companyâs approach to management of currency risk is to leave the Company with no material residual risk.

Foreign currency sensitivity analysis

For every percentage point increase in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, holding all other variables constant, the profit before tax for the year ended March 31, 2019 would change by Rs. (0.29) crores [March 31, 2018: Rs. (1.29 crores)]. For every percentage point decrease in the underlying exchange rate would have led to an equal but opposite effect.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in foreign currency rates.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligation.

Concentration of credit risk with respect to trade receivables are limited, due to Companyâs customer base being large and diverse. All trade receivables are reviewed and assessed for default on a monthly basis. The Companyâs historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. Loss allowances and impairment is recognised, where considered appropriate by responsible management.

The credit risk on cash and bank balances and fixed deposits is limited because the counterparties are banks with high credit ratings.

D. Fair value measurement Fair value hierarchy

The following levels have been used for classification:

- Level 1: Quoted prices (unadjusted) for identical instruments in active market.

- Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs

- Level 3: Inputs which are not based on observable market data.

The fair value of trade receivables, trade payables and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. Where such items are non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis. Similarly for certain unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value. There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has classified certain unquoted equity instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the year.

The Board of Directors at its meeting held on May 15, 2019 have recommended a final dividend of RS.5.08 per equity share of face value of RS. 1 each for the financial year ended March 31, 2019. The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability. Interim dividend of RS. 2 per equity share of face value of RS. 1 each approved by the Board of Directors at its meeting held on November 09, 2018 was paid during the current year. The total dividend (including interim dividend) for FY 2018-19 amounts to RS. 7.08 per equity share (Previous year RS. 4.15 per equity share).

Note 7: Subsequent to the year-end, consequent to the announcement by Johnson Controls International PLC on the proposed sale of its power solutions business, a decision to acquire 2% equity shares of the Company by Galla Family (promotors group) from Johnson Controls (Mauritius) Private Limited was agreed to between the said parties. Also the shareholdersâ agreement with Johnson Controls (Mauritius) Private Limited and other agreements with Johnson Controls were terminated with effect from April 1, 2019.

Note 8: The financial statements are approved for issue by the Audit Committee and Board of Directors at their meetings held on May 15, 2019.

Mar 31, 2018

1. Corporate Information

(i) includes RS.7.30 crores (for the year ended March 31, 2017 : RS.5.63 crores) recognised as income in proportion to the depreciation charged to the Statement of Profit and Loss. [Refer Note 20]

(ii) Consequent to the introduction of Goods and Services Tax (GST) with effect from July 1, 2017, Central Excise, Value Added Tax (VAT), etc. have been subsumed into GST. In accordance with Indian Accounting Standard - 18 on Revenue and Schedule III of the Companies Act, 2013, unlike Excise Duties, levies like GST, VAT, etc. are not part of Revenue. Accordingly, revenue from operations for the period beginning July 1, 2017 to March 31, 2018 is presented net of GST. Revenue from operations of earlier periods included Excise duty which now is subsumed in GST.

a. Defined contribution plans

The Company makes Provident Fund, Superannuation Fund and Employeesâ State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. The Company recognised RS.5.76 crores (Year ended March 31, 2017: RS.4.30 crores) for provident fund contributions, RS.7.66 crores (Year ended March 31, 2017: RS.5.18 crores) for Superannuation Fund contributions and RS.4.55 crores (Year ended March 31, 2017: RS.3.69 crores) towards Employeesâ State Insurance Scheme contributions in the Statement of Profit and Loss.

b. Defined benefit plans

The Company provides to the eligible employees defined benefit plans in the form of gratuity. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 daysâ salary payable for each completed year of service. Vesting occurs upon completion of five continuous years of service. The measurement date used for determining retirement benefits for gratuity is March 31. These plans typically expose the Company to acturial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Risk Management

Investment risk - The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Longetivity risk - The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan participants will increase the planâs liability.

(i) Balance Sheet

The assets, liabilities and surplus / (deficit) position of the defined benefit plans at the Balance Sheet date were:

Demographic assumptions

Mortality in Service: Indian Assured Lives Mortality (2006-08) Ultimate table.

(vi) Sensitivity analysis

The sensitivity of the overall plan obligations to changes in the weighted key assumptions are:

Geographical information

The Company operates in India and makes certain sales to customers situated outside of India. The revenue from external customers by location of customers is detailed below. All the non-current assets of the Company are situated within India.

Refer to Note 41 on Financial Instruments and related disclosures for information on revenue from major customers.

Note 2:

The Company had purchased 8.68 hectares of freehold land for a consideration of RS.15.59 crores in 2011-12 at Tehsil Laksar, District Haridwar, Uttarakhand State. Under the terms of sanction by the State Government for sale of such land, a manufacturing unit was to be set up within two years from the date of purchase of land, which owing to unforeseen circumstances could not take place. The District Collector vide order dated November 10, 2014 initiated proceedings for vesting the aforementioned land with the State Government. Based on legal advice, the Company had in the previous year gone in appeal against the order of the District Collector with the Court of Board of Revenue, Dehradun, Uttarakhand State, (âthe Courtâ) which in the interim had stayed the proceedings. In the current year, the Court vide its order dated May 25, 2017 rejected the appeal filed by the Company, consequent to which the said freehold land has vested back with the State Government. The Company is in the process of evaluating various options to pursue the said order of the Court.

Note 3: Related party transactions

(a) Details of related parties

Entity exercising significant influence

RNGalla Family Private Limited [w.e.f. July 11, 2017]

RN Galla Family & Co. ( Partnership Firm ) [upto July 10, 2017]

Johnson Controls (Mauritius) Private Limited

Key Management Personnel

Jayadev Galla Vice-Chairman and Managing Director

Relative of Key Management Personnel

Dr. Ramachandra N Galla Chairman and Non-Executive Director

Entities in which KMP / Relatives of KMP exercise significant influence

Amara Raja Power Systems Limited

Amara Raja Electronics Limited

Mangal Industries Limited

Amara Raja Infra Private Limited

Amara Raja Industrial Services Private Limited

Amaron Batteries Private Limited

Asistmi Solutions Private Limited

Amara Raja Media and Entertainment Private Limited

G2 Healthcare Private Limited

Nine Nines Lifestyle Private Limited

Rajanna Trust

RNGalla Family Holdings Private Limited_

The Companyâs significant leasing arrangements are in respect of operating leases for premises (offices and warehouses). These leasing arrangements which are cancellable, range between 1 year and 9 years generally and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals of RS.17.66 crores (year ended March 31, 2017: RS.16.54 crores) paid under such arrangements has been charged to Statement of Profit and Loss as âRentâ under Note 27.

Note 4: Disclosure as per Regulation 53(F) of Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015:

(i) Loans and advances in the nature of loans given to Companies in which Directors are interested Rs. Nil (March 31, 2017: Rs. Nil)

(ii) Details of investments made under Section 186 of the Companies Act, 2013 are disclosed in Note 5. There are no loans / guarantees issued under Section 186 of the Companies Act, 2013.

Note 5: Details of expenditure incurred on research and development

The Company has obtained approval from Department of Scientific and Industrial Research for claiming of weighted tax benefit under Section 35(2AB) of the Income Tax Act, 1961.

Note 6: Details of Provisions

(a) Provision for warranty is made for estimated warranty claims in respect of sale of certain storage batteries which are still under warranty at the end of the reporting period, the estimated cost of which is accrued at the time of sale. These claims are expected to be settled as and when warranty claims arise. Management estimates the provision based on historical warranty claim information and any recent trends that may suggest that future claims could differ from historical amounts. The products are generally covered under a free warranty period ranging from 6 months to 3 years.

(b) The disclosure of provisions movement as required under the provisions of Ind AS 37 is as follows:

A. Capital Management

Equity share capital and other equity are considered for the purpose of Companyâs Capital Management.

B. Categories of Financial Instruments

C. Financial risk management objectives

The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, foreign currency risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Companyâs risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also seeks to drive accountability in this regard. The key risks and mitigating actions are overseen by the Board of Directors of the Company.

Liquidity Risk

The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. Also, the Company has unutilised credit limits with banks. The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended March 31, 2018 and March 31, 2017. Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis.

The Companyâs Current assets aggregate to RS.2,1 52.30 crores (March 31, 2017 - RS.1,758.62 crores) including Current investments, Cash and cash equivalents and Other bank balances of RS.126.61 crores (March 31, 2017 - RS.298.70 crores) against an aggregate Current liability of RS.992.98 crores (March 31, 2017- RS.759.62 crores). The table below provides details regarding the contractual maturities of significant Non-current financial liabilities as of March 31, 2018 and March 31, 2017:

Further, while the Companyâs total equity stands at RS.2,937.39 crores (March 31, 2017: RS.2,593.07 crores), it has borrowings of RS.63.53 crores (March 31, 2017: RS.72.47 crores). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligations as they become due does not exist.

Market Risk

As the Company is virtually debt-free and its deferred payment liabilities do not carry interest, the exposure to interest rate risk from the perspective of Financial liabilties is negligible. Further, treasury activities, focused on managing current investments are administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation.The Company invests in Mutual Fund schemes of leading fund houses. Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of underlying portfolio of the Mutual Fund schemes in which the Company has invested, such price risk is not significant. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility.

Foreign Currency Risk

The Company manages currency exposures within prescribed limits. The aim of the Companyâs approach to management of currency risk is to leave the Company with no material residual risk.

Foreign currency sensitivity analysis

For every percentage point increase in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, holding all other variables constant, the profit before tax for the year ended March 31, 2018 would change by C (1.29 crores) [March 31, 2017: C(0.42 crores)]. For every percentage point decrease in the underlying exchange rate would have led to an equal but opposite effect.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in foreign currency rates.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligation.

Concentration of credit risk with respect to trade receivables are limited, due to Companyâs customer base being large and diverse. All trade receivables are reviewed and assessed for default on a monthly basis.The Companyâs historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. Loss allowances and impairment is recognised, where considered appropriate by responsible management.

The credit risk on cash and bank balances and fixed deposits is limited because the counterparties are banks with high credit ratings.

The following table gives details in respect of revenues generated from top customer and top 5 customers:

D. Fair value measurement Fair value hierarchy

The fair value of financial instruments as referred to in Note 41 above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identified assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements] The following levels have been used for classification:

- Level 1: Quoted prices (unadjusted) for identical instruments in active market.

- Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs

- Level 3: Inputs which are not based on observable market data.

The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. Where such items are Non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis. Similarly for certain unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value.

Note: These investments in equity instruments are not held for trading. Instead, they are held for long term strategic purpose. Upon the application of Ind AS 109, the company has chosen to designate these investments in equity instruments as at FVTOCI irrevocably as the Management believes that this provides a more meaningful presentation for long term strategic investments, than reflecting changes in fair value immediately in profit or loss.

The following table presents the fair value hierarchy of assets measured at fair value on a recurring basis :

The Board of Directors at its meeting held on May 18, 2018 have recommended a final dividend of RS.2.15 per equity share of face value of RS.1 each for the financial year ended March 31, 2018. The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognised as a liability. Interim dividend of RS.2 per equity shares of face value of RS.1 each approved by the Board of Directors at its meeting held on November 9, 2017 was paid during the current year. The total dividend (including interim dividend) for FY 2017-18 amounts to RS.4.15 per equity share (Previous year RS.4.25 per equity share).

Note 7: The financial statements are approved for issue by the Audit Committee at its meeting held on May 14, 2018 and by the Board of Directors on May 18, 2018.

Mar 31, 2017

* Beneficial interest in respect of 12,795,074 shares of Dr. Ramachandra N Galla, 12,445,834 shares of Jayadev Galla and 14,990,400 shares of the rest was transferred in the name of RN Galla Family & Co.

Note: The interest free sales tax deferment loans were availed by the Company under the Government of Andhra Pradesh TARGET 2000 New Industrial Policy as per which the loans are repayable at the end of the 14th year from the year in which these loans were availed. The Company has also entered into agreements with the Deputy Commissioner of Commercial Taxes, Chittoor in respect of the aforementioned loans per which the repayment schedule of the loans have been determined as being repayable at the end of the 14th year from the month in which these loans were availed. The Management is however of the view that these loans are repayable at the end of the 14th year from the year in which these loans were availed in terms of the sanction of these loans by the Government of Andhra Pradesh, Commissioner ate of Industries and are accordingly making an early repayment of these loans.

Note: The provision for warranty claims represents the present value of the Management''s best estimate of the future outflow of economic benefits that will be required under the Company''s obligation for warranties. The estimation has been made on the basis of historical warranty trends and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality.

a. Defined contribution plans

The Company makes Provident Fund, Superannuation Fund and Employees'' State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. The Company recognized Rs,4.30 crores (Year ended March 31, 2016: Rs,3.50 crores) for provident fund contributions, Rs,5.18 crores (Year ended March 31, 2016: Rs,4.09 crores) for Superannuation Fund contributions and Rs,3.69 crores (Year ended March 31, 2016: Rs,3.11 crores) towards Employees'' State Insurance Scheme contributions in the Statement of Profit and Loss.

b. Defined benefit plans

(i) Balance Sheet

The assets, liabilities and surplus / (deficit) position of the defined benefit plans at the Balance Sheet date were:

(v) Assumptions

With the objective of presenting the plan assets and plan obligations of the defined benefits plans at their fair value on the Balance Sheet, assumptions under Ind AS 19 are set by reference to market conditions at the valuation date.

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognized in the Balance Sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous year.

Note 1: Segment reporting

The Vice Chairman and Managing Director of the company has been identified as the Chief Operating Decision Maker (CODM) who evaluates the Company''s performance and allocates resources for manufacture and marketing of lead acid storage batteries. Accordingly, manufacturing and trading of lead acid storage batteries is considered as the operating segment of the Company.

Geographical information

Refer to Note 43 on Financial Risk Management and Capital Management for information on revenue from major customers.

Note 2: The Company had purchased 8.68 hectares of freehold land for a consideration of Rs,15.59 crores in 2011-12 at Tehsil Laksar, District Haridwar, Uttarakhand State. Under the terms of sanction by the State Government for sale of such land, a manufacturing unit was to be set up within two years from the date of purchase of land, which owing to unforeseen circumstances could not take place. The District Collector vide order dated November 10, 2014 initiated proceedings for vesting the aforementioned land with the State Government. Based on legal advice, the Company has gone in appeal against the order of the District Collector and is pursuing the matter with relevant authorities. Consequent to the appeal by the Company against the aforesaid order, the Court of Board of Revenue, Dehradun, Uttarakhand State, has stayed the proceedings initiated under the aforesaid order.

However, pending resolution of the matter which is sub-judice, the Company had in the previous years, fully impaired the value of the aforesaid land. Consequent to the transition to Ind AS, and the Company''s election to continue with the carrying amount of all of its property, plant and equipment recognized as of April 1, 2015 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date, the provision for impairment recorded in respect of the said land before the date of transition under previous GAAP cannot be reversed in later years.

Note 3: Related party transactions

(a) Details of related parties Entity exercising significant influence

RN Galla Family & Co. (Partnership Arm)

Johnson Controls (Mauritius) Private Limited, Mauritius

Key Management Personnel

Jayadev Galla Vice Chairman and Managing Director

Relative of Key Management Personnel

Dr. Ramachandra N Galla (Father of KMP) Chairman

Entities in which KMP / Relatives of KMP exercise significant influence

Amara Raja Power Systems Limited

Amara Raja Electronics Limited

Mangal Industries Limited

Amara Raja Infra Private Limited

Amara Raja Industrial Services Private Limited

Asistmi Solutions Private Limited

Amara Raja Media and Entertainment Private Limited

RNGalla Family Holdings Private Limited

G2 Healthcare Private Limited

Nine Nines Lifestyle Private Limited

Amaron Batteries Private Limited

Rajanna Trust

The Company''s significant leasing arrangements are in respect of operating leases for premises (off i ces and warehouses). These leasing arrangements which are cancellable, range between 1 years and 9 years generally and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals of Rs,16.54 crores (year ended March 31, 2016: Rs,14.50 crores) paid under such arrangements has been charged to the Statement of Profit and Loss.

Note: Net of income from sale of batteries, scrap, etc. Nil crores (Year ended March 31, 2016: Rs,2.44 crores)

Note 4: Disclosure as per Regulation 53(f) of Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015:

(i) Loans and advances in the nature of loans given to Companies in which Directors are interested Rs,Nil (March 31, 2016: Rs,Nil)

(ii) Details of investments made under Section 186 of the Companies Act, 2013 are disclosed in Note 5. There are no loans / guarantees issued under Section 186 of the Companies Act, 2013.

The Company has obtained approval from Department of Scientific and Industrial Research for claiming of weighted tax benefit under Section 35(2AB) of the Income Tax Act, 1961.

2. The fair values of investments in unquoted equity investments has been estimated using a discounted cash fi ow model under income approach. The valuation requires Management to make certain assumptions about model inputs, including forecast cash flows, discount rate and credit risk, the probabilities of the various estimates within range can be reasonably assessed and are used in Management''s estimate of fair value for these unquoted investments.

Note 5: Fair value hierarchy

The categories used are as follows:

Level 1: Quoted prices for identified instruments in an active market.

Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and Level 3: Inputs which are not based on observable market data.

This note provides information about how the Company determines fair values of various financial assets and financial liabilities.

Fair value of the Company''s financial assets and financial liabilities that are measured at fair value on a recurring basis.

Some of the Company''s financial assets and financial liabilities are measured at the fair value at the end of each reporting period. The following table gives information about how the fair value of these financial assets and financial liabilities are determined (in particular, the valuation technique and other inputs used).

Notes:

1 If the Long-term revenue growth rates used were 1% higher/lower while all other variables were held constant, the carrying amount of the shares would increase/(decrease) by Rs,0.78 crores and Rs,(0.68) crores respectively [as at March 31, 2016: increase/(decrease) by Rs,0.63 crores and Rs,(0.55) crores; as at April 1, 2015: increase/(decrease) by Rs,0 .61 crores and Rs,(0.53) crores respectively].

2 A 1% increase/ (decrease) in WACC or discount rate used while holding all other variables constant would (decrease)/increase the carrying amount of the unquoted equity investments by Rs,(1.17 crores) and Rs,(0.96 crores), Rs,1.34 crores and Rs,1.12 crores respectively (as at March 31, 2016: (decrease)/increase by Rs,(0.93 crores) and Rs,(0.77 crores), Rs,1.07 crores and Rs,0.90 crores respectively; as at April 1, 2015: (decrease)/increase by Rs,(0.87 crores) and Rs,(0.73 crores), Rs,1.01 crores and Rs,0.86 crores respectively)

3 These investments in equity instruments are not held for trading. Instead, they are held for long term strategic purpose. Upon the application of Ind AS 109, the Company has chosen to designate these investments in equity instruments as at FVTOCI irrevocably as the Management believes that this provides a more meaningful presentation for long term strategic investments, than reflecting changes in fair value immediately in profit or loss.

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, credit risk and foreign currency risk. The Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are overseen by the Board of Directors of the Company.

A. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligation. Trade receivables Concentration of credit risk with respect to trade receivables are limited, due to Company''s customer base being large and diverse. All trade receivables are reviewed and assessed for default on a monthly basis.

Historical experience of collecting receivables is that credit risk is low. Hence, trade receivables are considered to be a single class of financial assets.

The following table gives details in respect of revenues generated from top customer and top 5 customers:

Apart from one customer who is the largest customer of the Company, the Company does not have significant credit risk exposure to any single counter party.

Other financial assets

The Company maintain exposure in cash and cash equivalents, term deposits with banks and money market liquid mutual funds.

The Company''s maximum exposure of credit risk as at March 31, 2017, March 31, 2016 and April 1, 2015 is the carrying value of each class of financial assets.

B. Foreign currency risk management

The Company manages currency exposures within prescribed limits. The aim of the Company''s approach to management of currency risk is to leave the Company with no material residual risk.

The following table presents foreign currency risk from non-derivative financial instruments as of March 31, 2017, March 31, 2016 and April 1, 2015.

* Others includes currencies such as Singapore $, Japanese Yen, Russian ruble, South Korean Won, etc.

Foreign currency sensitivity analysis

A 5% strengthening of the INR against key currencies to which the Company is exposed would have led to approximately an additional Rs,2.46 crores gain in the Statement of Profit and Loss (2015-16: Rs,2.81 crores gain). A 5% weakening of the INR against these currencies would have led to an equal but opposite effect.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 5% change in foreign currency rates.

C. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. Also, the Company has unutilized credit limits with banks. The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended March 31, 2017 and March 31, 2016. Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis.

The Company regularly maintains the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short-term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and mutual funds with appropriate maturities to optimize the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2017, March 31, 2016 and April 1, 2015:

Capital Management

Equity share capital and other equity are considered for the purpose of Company''s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders. The capital structure of the Company is based on Management''s judgment of its strategic day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

The Management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or is necessary, adjust its capital structure.

Note 6: Dividend

The Board of Directors at its meeting held on May 24, 2017 have recommended a dividend of Rs,4.25 per equity share of face value of Rs,1 each for the financial year ended March 31, 2017. The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

Note 7: Transition to Ind AS

For periods up to and including the year ended March 31, 2016, the Company had prepared its financial statements in accordance with the accounting standards notified under Section 133 of the Companies Act, 2013 ("the Act") read together with Rule 7 of the Companies (Accounts) Rules, 2014 ("Previous GAAP"). The Company''s financial statements for the year ended March 31, 2017 are prepared in accordance with Ind AS notified under Section 133 of the Act read together with the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) Amendment Rules, 2016, as applicable. The adoption of Ind AS was carried out in accordance with Ind AS 101 First time Adoption of Indian Accounting Standards, using April 1, 2015 as the transition date. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements be applied consistently and retrospectively for all financial years presented. Accordingly, the Company has prepared financial statements which comply with Ind AS for the year ended March 31, 2017, together with the comparative information as at and for the year ended March 31, 2016 and the opening Ind AS Balance Sheet as at April 1, 2015 the date of transition to Ind AS.

In preparing these financial statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101 as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at transition date under Ind AS and Previous GAAP have been recognized directly in equity [retained earnings or another appropriate category of equity]. This note explains the principal adjustments made by the Company in restating its financial statements prepared under previous GAAP, including the Balance Sheet as at April 1, 2015 and the financial statements as at and for the year ended March 31, 2016.

A. Exceptions from full retrospective application:

(i) Estimates exception: Upon an assessment of the estimates made under Previous GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS except where estimates were required by Ind AS and not required by Previous GAAP.

(ii) Classification and measurement of financial assets: The Company has determined the classification of financial assets in terms of whether they meet the amortized cost creteria or the fair value through other comprehensive income criteria based on the facts and circumstances that existed as of the transition date.

(iii) Government loans: The requirements of Ind AS 20 - Accounting for Government Grants and Disclosure of Government Assistance and Ind AS 109 - Financial Instruments, in respect of recognition and measurement of interest-free loans from government authorities is opted to be applied prospectively to all grants received after the date of transition to Ind AS. Consequently, the carrying amount of such interest-free loans as per the financial statements of the Company prepared under Previous GAAP is considered for recognition in the opening Ind AS Balance Sheet.

B. Exemptions from retrospective application:

(i) Deemed cost for property, plant and equipment and intangible assets: The Company has elected to continue with carrying value of all its property plant and equipment, and intangible asets recognized as of April 1, 2015 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

C. Transition to Ind AS - Reconciliations.

The following reconciliations provide a quantification of the effect of significant differences arising from the transition

from Previous GAAP to Ind AS in accordance with Ind AS 101:

i. Reconciliation of Equity as at April 1, 2015 and March 31, 2016

ii. Reconciliation of Total Comprehensive Income for the year ended March 31, 2016; and

iii. Material adjustment to Statement of cash flows.

Notes to the reconciliations

a. Under previous GAAP, dividends on equity shares (including dividend distribution tax thereon) recommended by the board of directors after the end of reporting period but before the financial statements were approved for issue were recognized in the financial statements as a liability. Under Ind AS, such dividends (including dividend distribution tax thereon) are recognized when declared by the members in general meeting. The effect of this change is an increase in total equity as at March 31, 2016 of Rs,Nil (April 1, 2015 - Rs,73.99 crores), but does not affect profit before tax and profit for the year ended March 31, 2016.

b. Under previous GAAP, discounting of provisions was not permitted and provisions were measured at best estimate of the expenditure required to settle the obligation at the balance sheet date without considering the effect of discounting. Under Ind AS, provisions are measured at discounted amounts, if the effect of time value of money is material. The Company has discounted the warranty provisions to present value at the reporting dates resulting in the provisions being decreased. Consequently, the unwinding of discount has been recognized as a finance cost. Further, the corresponding differences in deferred taxes have also been recognized.

c. Under previous GAAP, actuarial gains and losses were recognized in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognized in other comprehensive income. Consequently, the tax effect of the same has also been recognized in other comprehensive income under Ind AS instead of profit or loss. The actuarial losses for the year ended March 31, 2016 were Rs,0.09 crores and tax effect thereon Rs,0.03 crores. This change does not affect the total equity, but there is a increase in the profit before tax of Rs,0.09 and in total comprehensive income of Rs,0.06 crores for the year ended March 31, 2016.

d. Under previous GAAP, long-term investments were measured at cost less provision for diminution, other than temporary. Under Ind AS, these financial assets have been classified as FVTOCI. On the date of transition to Ind AS, these financial assets have been measured at their fair value which is higher than the cost as per previous GAAP, resulting in an increase in carrying amount. The corresponding deferred taxes have also been recognized. These changes do not affect profit before tax for the year ended March 31, 2016 because the investments have been classified as FVTOCI.

e. Under previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be measured at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposits has been recognized as prepaid rent. Profit for the year end and total equity as at March 31, 2016 decreased by Rs,0.21 crores due to amortization of prepaid rent, which is partially off-set by the notional interest income of Rs,0.20 crores recognized on security deposits.

f. Under Ind AS, government grants in the nature of duty benefit under Export Promotion Capital Goods scheme (EPCG) received have been recognized separately in the financial statements. Deferred revenue of Rs,38.63 crores (April 1, 2015: Rs,Nil) arises as a result of duty benefit received on import of plant and equipment under EPCG scheme. The deferred revenue is recognized in the Statement of Profit and Loss in the proportion of depreciation charged on such assets.

g. Under previous GAAP, revenue was recognized net of trade discounts, rebates, sales taxes and excise duties. Under Ind AS, revenue is recognized at the fair value of the consideration received or receivable, after deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the government such as sales tax and value added tax except excise duty. Discounts given include rebates, price reductions and incentives given to customers (including through free issues of traded batteries), which have been reclassified from ''advertising and sales promotion'' within other expenses and ''purchase of traded goods'' under Previous GAAP and netted from revenue under Ind AS. The change does not affect total equity as at March 31, 2016, profit before tax or total comprehensive income for the year ended March 31, 2016.

h. Under previous GAAP, revenue from sale of products was presented net of excise duty. However, under Ind AS, excise duty is included in sale of goods. Excise duty expense is presented separately on the face of Statement of Profit and Loss. Thus, sale of goods under Ind AS has increased with a corresponding increase in expenses. In the light of above, increase/ (decrease) of excise duty on finished goods included as part of changes in inventories of finished goods, work-in-progress and stock-in-trade has been included in ''excise duty'' presented as expense on the face of the Statement of Profit and Loss.

Note 8: The financial statements are approved for issue by the Board of Directors on May 24, 2017.

Mar 31, 2015

A) Rights, preferences and restrictions attached to equity shares

The Company has one class of equity shares having a face value of Rs. 1 each. Each holder of equity share is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the Annual General Meeting, except in case of interim dividend. In the event of liquidation, the holders of equity share will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Interest free sales tax deferment

The Company has availed interest free sales tax deferment under Andhra Pradesh sales tax deferment scheme (Target 2000) from the financial year 1997-98 as per the eligibility norms in respect of expanded capacities. The Company has availed total deferment of Rs. 811.40 million since March1998, which is repayable after a period of 14 years from the date of each availment in annual installments.

- Eligible amount of interest free sales tax deferment - Rs. 813.33 million

- Period eligible for availment - January 1998 till September 2015

The estimates of future salary increases considered in actuarial valuation, taking into account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.

Notes relating to Micro, Small and Medium Enterprises

Based on, and to the extent of information received from the suppliers with regard to their status under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), on which the auditors have relied, the disclosure requirements under Section 22 of MSMED Act with regard to the payments made/due to Micro, Small and Medium Enterprises are given below:

*The unclaimed dividends represent those relating to the years 2007-08 to 2013-14 (for previous year from 2006-07 to 2012-13) and no part thereof has remained unpaid or unclaimed for a period of seven years or more from the date they became due for payment requiring transfer to the Investor Education and Protection Fund.

a. Note on Depreciation

In view of the applicability of the provisions of Schedule II "Depreciation" w.e.f. April 1, 2014, the Company has revised its policy of providing depreciation whereby the Company continued to provide depreciation based on the useful lives as arrived at based on technical evaluation. The management of the Company is of opinion that the useful lives adopted for such assets are reasonable based on technical evaluation, past experience of usage pattern and working conditions in which such assets are put to use. In respect of other fixed assets, the Company computed depreciation based on useful lives as specified in Schedule II of the Companies Act, 2013. Accordingly the carrying amount of such assets as on April 1, 2014 are being depreciated over the remaining useful life of the assets.The above compliance with Schedule II to Companies Act, 2013 resulted in an additional depreciation of Rs. 360.76 million in the current financial year.

b. Impairment provision on freehold land of Rs. 80.36 million(previous year Rs. Nil)

The Company had procured 8.6 hectares of land in FY 2011-12. However, as the Company has not put to use the above land, the District Collector has passed orders vesting the above land with the state government. Consequent to the above action of District Collector, the Company has provided for impairment loss of the said land during the current year amounting to Rs. 80.36 million. The total cost of the land purchased was Rs. 155.88 million. The Company had already provided for impairment during FY 2012-13, to the extent of Rs. 75.52 million.

NOTE 2: The Company is engaged in the manufacture of lead acid storage batteries. In the perception of the management, identifying the Company's business into further segments as per Accounting Standard - 17, does not arise.

NOTE NO. 3: RELATED PARTY TRANSACTIONS

Related parties particulars pursuant to "Accounting Standard -18"

I. Parties where control exists: None

II. Parties with whom transactions have taken place during the year A) List of related parties

1. Investing party for which the Company is an Associate

Johnson Controls (Mauritius) Private Limited

2. Key management personnel

Sri Jayadev Galla Vice Chairman and Managing Director

3. Relatives of key management personnel

Dr. Ramachandra N Galla Father of Sri Jayadev Galla

Smt G. Amara Kumari Mother of Sri Jayadev Galla

Smt G. Padmavathi Wife of Sri Jayadev Galla

Dr. G. Ramadevi Sister of Sri Jayadev Galla

Sri Ashok Galla Son of Sri Jayadev Galla

Sri Siddharth Galla Son of Sri Jayadev Galla

4. Enterprises over which key management personnel and / or their relatives exercise significant influence

Amara Raja Power Systems Limited

Amara Raja Electronics Limited

Mangal Industries Limited

Amara Raja Infra Private Limited

Amara Raja Industrial Services Private Limited

Asistmi Solutions Private Limited

Rajanna Trust

NOTE 4: LEASES

The Company is obligated under cancelable operating leases for offices, warehouses etc, which are renewable at the option of both the lessor and the lessee. Total rental expense debited to the Statement of Profit and Loss under cancelable operating leases amounts to Rs. 127.47 million (PY Rs. 114.10 million).

There are no sub-lease payments received / receivable recognised in the Statement of Profit and Loss. Also, there are no contingent rents payable and there are no restrictions imposed by lease agreements such as those concerning dividends and additional debt.

NOTE 5: EXCEPTIONAL ITEMS

Exceptional items represent net provision for fuel surcharge adjustment for financial years 2009-10 to 2011-12, surcharge on arrears and additionnal demand charges for financial year 2014-15 of Rs. 72.79 million (PY Rs. 38.84 million) claim(s) by Southern Power Distribution Company of Andhra Pradesh Limited as per the orders from Andhra Pradesh Electricity Regulatory Commission.

NOTE 6: CONTINGENT LIABILITIES AND COMMITMENTS Rs million As at As at March 31,2015 March 31,2014

A. Contingent liabilities

Claims against the Company not acknowledged as debts

i) Excise duty/service tax 11.85 11.85

ii) Sales tax 54.05 99.77

iii) Income tax 13.14 14.49

iv) Electricity 692.35 541.86

v) Export obligation 208.82 234.23

[Against all the above, Rs71.91 million (PY Rs 66.96 million) was paid under protest]

B. Commitments

Estimated amount of contracts remaining to be executed on capital account and not 2,663.68 700.62 provided for

Note: On the basis of the current status of individual cases and as per the legal advice obtained,whereever applicable, the management is of the view that no provision is required in respect of the above cases.

The balances in various personal accounts are subject to confirmation by and reconciliation with the concerned parties.

NOTE 7:

In the opinion of Board of Directors the assets other than fixed assets and non-current investments are expected to realise the value stated in the financial statements, in the ordinary course of business.

NOTE 8:

Previous year figures have been regrouped wherever necessary to conform to current year classification.

NOTE 9:

Figures have been rounded off to the nearest million.

Mar 31, 2014

1. Corporate Information

Amara Raja Batteries Limited ("the Company") is the second largest manufacturer of lead-acid storage batteries for industrial and automotive applications in India. The equity shares of the Company are listed in BSE Limited and the National Stock Exchange of India Limited. The Company''s products are supplied to various user segments viz., Telecom, Railways, Power Control and UPS under Industrial Battery business, and to Automobile OEMs, Replacement Market and Private Label Customers under Automotive Battery business. The Company''s products are being exported to various countries in the Indian Ocean Rim. The Company also provides installation S commissioning and maintenance services to the customers. The leading automotive and industrial battery brands of the Company are AmaronÂ®, PowerZoneÂ, Power StackÂ®, AmaronVoltÂ and QuantaÂ®.

NOTE 1: SHORT-TERM BORROWINGS

The working capital facilities from State Bank of India, State Bank of Hyderabad, Andhra Bank and The Bank of Nova Scotia are secured by hypothecation of all current assets of the Company. The fixed assets of the Company are provided as collateral security byway of pari-passu second charge for the working capital facilities availed from State Bank of India

NOTE 2: TRADE PAYABLES

Notes relating to Micro, Small and Medium Enterprises

Based on, and to the extent of information received from the suppliers with regard to their status under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), on which the auditors have relied, the disclosure requirements of Schedule VI to the Companies Act, 1956 with regard to the payments made/due to Micro, Small and Medium Enterprises are given below:

NOTE 3: The Company is engaged in the manufacture of lead acid storage batteries. In the perception of the management, identifying the Company''s business into further segments as per Accounting Standard - 17, does not arise.

NOTE 4: RELATED PARTY TRANSACTIONS

Related parties particulars pursuant to "Accounting Standard -18"

I. Parties where control exists: None

II. Parties with whom transactions have taken place during the year

A) List of related parties

1. Investing party for which the Company is an Associate

Johnson Controls (Mauritius) Private Limited

2. Key management personnel

Sri Jayadev Galla Sri Ravi Bhamidipati

3. Relatives of key management personnel

Dr. Ramachandra N Galla Father of Sri Jayadev Galla

Smt G. Amara Kumari Mother of Sri Jayadev Galla

Smt G. Padmavathi Wife of Sri Jayadev Galla

Dr. G. Ramadevi Sister of Sri Jayadev Galla

Sri Ashok Galla Son of Sri Jayadev Galla

Sri Siddharth Galla Son of Sri Jayadev Galla

NOTE 30: RELATED PARTY TRANSACTIONS (Contd.)

4. Enterprises over which key management personnel and / or their relatives exercise significant influence

Amara Raja Power Systems Limited

Amara Raja Electronics Limited

Mangal Industries Limited

Amara Raja Infra Private Limited

Amara Raja Industrial Services Private Limited

Rajanna Trust

Mangamma and Gangulu Naidu Memorial Trust

NOTE 5: LEASES

The Company is obligated under cancelable operating leases for offices, warehouses etc, which are renewable at the option of both the lessor and the lessee. Total rental expense debited to the Statement of Profit and Loss under cancelable operating leases amounts to Rs.114.10 million (PYRs.983.31 million).

There are no sub-lease payments received / receivable recognised in the Statement of Profit and Loss. Also, there are no contingent rents payable and there are no restrictions imposed by lease agreements such as those concerning dividends and additional debt.

NOTE 6: EXCEPTIONAL ITEMS

Exceptional items represent net provision for fuel surcharge adjustment for financial years 2009-10 to 2011-12, surcharge on arrears and additional demand charges for financial year 2013-14 of Rs.38.84 million (PYRs.91.57 million ) claim(s) by Southern Power Distribution Company of Andhra Pradesh Limited as per the orders from Andhra Pradesh Electricity Regulatory Commission

NOTE 7:

The balances in various personal accounts are subject to confirmation by and reconciliation with the concerned parties

NOTE 8:

In the opinion of Board of Directors the assets other than fixed assets and non-current investments are expected to realise the value stated in the financial statements, in the ordinary course of business

NOTE 9:

Figures have been rounded off to the nearest million

Mar 31, 2013

1. Corporate Information

Amara Raja Batteries Limited ("the Company") is the second largest manufacturer of lead-acid storage batteries for industrial and automotive applications in India. The equity shares of the Company are listed in BSE Limited and the National Stock Exchange of India Limited. The Company''s products are supplied to various user segments viz., Telecom, Railways, Power Control and UPS under Industrial Battery business; and to Automobile OEMs, Replacement Market and Private Label Customers under Automotive Battery business. The Company''s products are being exported to various countries in the Indian Ocean Rim. The Company also provides installation & commissioning and maintenance services to the customers. The leading automotive and industrial battery brands of the Company are AmaronÂ®, PowerZoneÂ, Power StackÂ®, AmaronVoltÂ and QuantaÂ®.

NOTE 2 : SEGMENT REPORTING

The Company is engaged in the manufacture of lead acid storage batteries. In the perception of the management, identifying the Company''s business into further segments as per Accounting Standard - 17, does not arise.

NOTE 3 : RELATED PARTY TRANSACTIONS

Related parties particulars pursuant to "Accounting Standard -18"

I. Parties where control exists: None

II. Parties with whom transactions have taken place during the year A) List of related parties

1. Investing party for which the Company is an Associate

Johnson Controls (Mauritius) Private Limited

2. Key management personnel

Sri Jayadev Galla Sri Ravi Bhamidipati

3. Relatives of key management personnel

Dr. Ramachandra N Galla Father of Sri Jayadev Galla

Smt G. Amara Kumari Mother of Sri Jayadev Galla

Smt G. Padmavathi Wife of Sri Jayadev Galla

Dr. G. Ramadevi Sister of Sri Jayadev Galla

Sri Ashok Galla Son of Sri Jayadev Galla

Sri Siddharth Galla Son of Sri Jayadev Galla

4. Enterprises over which key management personnel and / or their relatives exercise significant influence

Amara Raja Power Systems Limited

Amara Raja Electronics Limited

Mangal Industries Limited

Amara Raja Infra Private Limited

Amara Raja Industrial Services Private Limited

Rajanna Trust

Mangamma and Gangulu Naidu Memorial Trust

NOTE 4 : LEASES

The Company is obligated under cancelable operating leases for offices, warehouses, etc, which are renewable at the option of both the lessor and the lessee. Total rental expense debited to the Statement of Profit and Loss under cancelable operating leases amounts to H 98.31 million (previous year H 66.64 million).

There are no sub-lease payments received / receivable recognised in the Statement of Profit and Loss. Also, there are no contingent rents payable and there are no restrictions imposed by lease agreements such as those concerning dividends and additional debt.

NOTE 5 : EXCEPTIONAL ITEMS

Exceptional items represent net provision for fuel surcharge adjustment claim(s) of H 91.57 million (previous year H Nil) by Southern Power Distribution Company of Andhra Pradesh Limited for financial years from 2009-10 to 2011-12 as per the orders from Andhra Pradesh Electricity Regulatory Commission.

NOTE 6 :

The balances in various personal accounts are subject to confirmation by and reconciliation with the concerned parties.

NOTE 7 :

In the opinion of Board of Directors the assets other than fixed assets and non-current investments are expected to realise the value stated in the financial statements, in the ordinary course of business.

NOTE 8:

Previous year political donation of H 1.00 million represent payment to the Communist Party of India (CPI), Chittoor District Council.

NOTE 9:

Figures have been rounded off to the nearest million.

Mar 31, 2012

1. Corporate Information

Amara Raja Batteries Limited ("ARBL" or "the Company"), part of the Amara Raja Group of Companies, is the second largest manufacturer of lead-acid storage batteries for industrial and automotive applications in India. The equity shares of the Company are listed in both Bombay Stock Exchange and National Stock Exchange. The Company's products are supplied to various user segments like Telecom, Railways, Power Control, UPS and Exports under Industrial Battery business; and to Automobile OEMs, Replacement Market, Private Label Customers and Exports under Automotive Battery business. The Company also provides installation & commissioning and maintenance services to its customers. The leading automotive and industrial battery brands of the Company are AmaronÃÂ®, PowerZoneÃ, Power StackÃÂ®, AmaronVoltÃ and QuantaÃ.

a) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs 2/- each. Each holder of equity share is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting, except in case of interim dividend. In the event of liquidation, the holder of equity share will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

b) Aggregate number of bonus shares issued during the period of five years immediately preceding the reporting date

During the financial year 2008-09 the Company has allotted 28,468,750 equity shares as fully paid-up bonus shares by capitalising part of general reserve.

a) Interest free sales tax deferment

The Company has availed interest free sales tax deferment under Andhra Pradesh sales tax deferment scheme (Target 2000) from the financial year 1997-98 as per the eligibility norms in respect of expanded capacities. The Company has availed total deferment of Rs 811.40 Million since March,1998, which is repayable after a period of 14 years from the date of first availment.

- Eligible amount of interest free sales tax deferment - Rs 813.33 Million

a) Note forming part of accounts in relation to Micro, Small and Medium Enterprises

Based on, and to the extent of information received from the suppliers with regard to their status under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), on which the auditors have relied, the disclosure requirements of Schedule VI to the Companies Act, 1956 with regard to the payments made/due to Micro, Small and Medium Enterprises are given below

Note: 2. LOANS AND ADVANCES (UNSECURED AND CONSIDERED GOOD) (Contd...)

APSPDCL'S original demand. The Company has paid Rs 17.26 Million (Previous year Rs 13.57 Million) under protest. The Company has not provided the balance of Rs1.26 Million in the books and has preferred an appeal against the order of Vidyut Ombudsman.

Note: 3. CONTINGENT LIABILITIES AND COMMITMENTS

Rs Million

As at As at

Particulars March 31, 2012 March 31, 2011

A. Contingent liabilities

a) Claims against the Company not acknowledged as debts

i) Excise duty/service tax 16.10 18.62

ii) Sales tax 30.06 88.21

iii) Income tax 48.93 -

iv) Electricity 248.89 205.44

v) Dues to supplier - 0.75 [Against all the above Rs9.48 Million (Rs5.64 Million) was paid under protest]

b)Other contingent liabilities

i) Bills discounted with scheduled banks - 69.13

B. Commitments

a) Estimated amount of contracts remaining to be executed

on capital account and not provided for 142.31 236.94

Note: 4.

The balances in various personal accounts are subject to confirmation by and reconciliation with the concerned parties.

Note: 5.

In the opinion of Board of Directors the assets other than fixed assets and non-current investments are expected to realise the value stated in the financial statements in the ordinary course of business.

Note: 6.

Current year political donation of Rs 1 Million represent payment to the Communist Party of India (CPI), Chittoor District Council.

Note: 7.

From the financial year 2011 -12, the revised Schedule VI notified under the Companies Act, 1956 is applicable to the Company for preparation and presentation of financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. Flowever, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified and rearranged the previous year figures in accordance with the requirements of revised Schedule VI.

Note: 8.

Figures in Rupees have been rounded off to the nearest Million.

Mar 31, 2010

1. a) The CompanyÃs fixed assets both movable and immovable (other than those which are specifically hypothecated to HDFC Bank) both present and future have been placed as security under first charge for the term loan obtained in foreign currency from BNP Paribas.

b) The working capital facilities from State Bank of India, State Bank of Hyderabad, Andhra Bank and the Bank of Nova Scotia are secured by hypothecation of stock of raw materials, work-in-process, finished goods, stores and spares, bills receivable and book debts. The fixed assets of the Company are provided as collateral security by way of second charge for the working capital facilities availed from State Bank of India.

c) Consequent to an order passed by Vidyut Ombudsman in March 2010, Andhra Pradesh Southern Power Distribution Company Ltd., (APSPDCL) has demanded Rs. 27.00 million as low voltage surcharge (including interest) for the period from June, 2005 to November, 2007. The Company has created a liability in the accounts for Rs. 25.80 million during the financial year ended March 31, 2009, as per APSPDCLÃs original demand. The Company has not provided the balance of Rs. 1.20 million in the books and has preferred an appeal against the order of Vidyut Ombudsman.

2. The Company is availing the sales tax deferment benefit since 1997-98 on its expanded capacity. Such deferment claimed, as on March 31, 2010 is Rs. 638.95 million (PY Rs. 567.43 million). This amount is subject to revision by the assessment authorities, on completion of assessments.

3.The Company is engaged in the manufacture of lead acid storage batteries. In the perception of the management, identifying the CompanyÃs business into further segments as per Accounting Standard Ã 17, does not arise.

4.Related Party Transactions

Related parties particulars pursuant to ÃAccounting Standard Ã18Ã A) List of Related Parties

1. Key Management Personnel Sri. Jayadev Galla

3. Enterprises in which Key Management Personnel and / or their relatives have significant influence Amara Raja Power Systems Limited Amara Raja Electronics Limited Mangal Precision Products Limited Galla Foods Limited Amara Raja Infra Private Limited

4. a) Enterprise with significant influence

Johnson Controls Mauritius Private Limited, Mauritius

b) Associates of enterprise with significant influence

Boading Fengfan Rising Battery Seperator Co. Limited, China

Enertec Do Brasil Ltda., Brazil

Shanghai Johnson Controls International Battery Co. Limited, China

Johnson Controls, K. K., Japan

Johnson Controls (S) Private Limited, Singapore

5.Note forming part of accounts in relation to Micro and Small Enterprises Based on, and to the extent of information received from the suppliers with regard to their status under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), on which the auditors have relied, the disclosure requirements of schedule VI to the Companies Act, 1956 with regard to the payments made / due to Micro and Small Enterprises are given below:

6. The balances in various personal accounts are subject to confirmation by and reconciliation with the concerned parties.

7. In the opinion of the Board of Directors the current assets, loans and advances are expected to realise the value stated in the accounts, in the ordinary course of business.

8. Previous year figures have been regrouped wherever necessary to confirm to the current yearÃs classification.

9. Figures have been rounded off to the nearest thousands and rupee wherever it is mentioned in million and rupees respectively.

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