Notes to Accounts of Jubilant Ingrevia Ltd.

Mar 31, 2025

(h) Provisions and contingencies

i) Provisions

A provision is recognised if,
as a result of a past event, the
Company has a present legal
or constructive obligation that
can be estimated reliably, and
it is probable that an outflow
of economic benefits will be
required to settle the obligation.

If the effect of the time value of
money is material, provisions
are determined by discounting
the expected future cash flows
at a pre-tax rate that reflects
current market assessments of
the time value of money and
the risks specific to the liability.
Where discounting is used, the
increase in the provision due to
the passage of time is recognised
as a finance cost. The amount
recognised as a provision is the
best estimate of the consideration
required to settle the present
obligation at reporting date,
taking into account the risks and
uncertainties surrounding the
obligation.

ii) Contingent assets

When some or all of the
economic benefits required to
settle a provision are expected to
be recovered from a third party,
the receivable is recognised as
an asset if it is virtually certain
that reimbursement will be
received and the amount of the
receivable can be measured
reliably and disclosed when inflow
of economic benefits therefrom is
probable.

iii) Contingent liabilities

A disclosure for a contingent
liability is made when there is a
possible obligation or a present
obligation that may, but probably
will not, require an outflow of
resources. When there is a
possible obligation or a present
obligation in respect of which the
likelihood of outflow of resources

is remote, no provision or
disclosure is made.

(i) Revenue recognition

Revenue from sale of products is
recognised when the Company
satisfies a performance obligation
upon transfer of control of products
to customers at the time of shipment
to or receipt of goods by the
customers as per the terms of the
underlying contracts. Service income
is recognised when the Company
satisfies a performance obligation as
and when the underlying services are
performed.

The Company exercises judgment in
determining whether the performance
obligation is satisfied at a point in
time or over a period of time. The
Company considers indicators
such as how customer consumes
benefits as services are rendered or
who controls the asset as it is being
created or existence of enforceable
right to payment for performance
to date and alternate use of such
product or service, transfer of
significant risks and rewards to the
customer, acceptance of delivery by
the customer, etc. Invoices are issued
as per the terms of business and are
receivable in accordance with the
agreed credit period. No element of
financing is deemed present as the
sales are made with the credit
period i.e. in the range of days of 30
to 90 days.

Revenues are measured based on
the transaction price allocated to
the performance obligation, which
is the consideration, net of taxes
or duties collected on behalf of the
government and applicable discounts
and allowances. The computation
of these estimates using expected
value method involves significant
judgment based on various factors
including contractual terms,
historical experience, estimated
inventory levels and expected
sell-through levels in supply chain.
The transaction price is allocated to
each performance obligation in the
contract on the basis of the relative
standalone selling prices of the
promised goods or services. The
transaction price may be fixed or
variable and is adjusted for time value
of money if the contract includes
significant financing component.

A receivable is recognised by the
Company when control of the goods
and services is transferred and the
Company''s right to an amount of
consideration under the contract with
the customer is unconditional, as
only the passage of time is required.
When either party to a contract has
performed, the Company presents
the contract in the balance sheet
as a contract asset or a contract
liability, depending on the relationship
between the company''s performance
and the customer''s payment.

Income in respect of entitlement
towards export incentives is
recognised in accordance with the
relevant scheme on recognition of
the related export sales. Such export
incentives are recorded as part of
other operating revenue.

Scrap sales are recognised when
control of scrap goods are transferred
i.e., on dispatch of goods and are
accounted for net of returns and
rebates.

(j) Employee benefits

i) Short-term employee benefits:

All employee benefits falling
due within twelve months from
the end of the period in which
the employees render the
related services are classified
as short-term employee
benefits, which include benefits
like salaries, wages, short
term compensated absences,
performance incentives, etc. and
are recognised as expenses in
the period in which the employee
renders the related service and
measured accordingly.

ii) Post-employment benefits:

Post-employment benefit plans
are classified into defined benefits
plans and defined contribution
plans as under:

a) Gratuity (defined benefit plan)

The Company has an obligation
towards gratuity, a defined benefit
retirement plan covering eligible
employees. The plan provides
for a lump sum payment to
vested employees at retirement,
death while in employment or on
termination of employment of an
amount based on the respective

employee''s salary and the tenure
of employment. The liability in
respect of gratuity is recognised
in the books of accounts based
on actuarial valuation by an
independent actuary. The gratuity
liability for certain employees of
the Company is funded with Life
Insurance Corporation of India.

b) Provident fund (defined
contribution plan)

This is treated as defined
contribution plan. The Company
makes contribution to Regional
Provident Fund Commissioner.
Company''s contribution to the
provident fund is charged to
Statement of Profit and Loss.

iii) Other long-term employee
benefits- Compensated
absences

As per the Company''s
policy, eligible leaves can be
accumulated by the employees
and carried forward to future
periods to either be utilised
during the service (as per policy
and approval mechanism), or
encashed. Encashment can
be made during service, on
early retirement, on withdrawal
of scheme, at resignation and
upon death of the employee.
Accumulated compensated
absences are treated as other
long-term employee benefits.

iv) Termination benefits:

Termination benefits are
recognised as an expense when,
as a result of a past event,
the Company has a present
obligation that can be estimated
reliably, and it is probable that
an outflow of economic benefits
will be required to settle the
obligation.

v) Actuarial valuation

The liability in respect of all
defined benefit plans and other
long term employee benefits is
accrued in the books of account
on the basis of actuarial valuation
carried out by an independent
actuary using the Projected Unit
Credit Method. The obligation is
measured at the present value
of estimated future cash flows.
The discount rates used for

determining the present value of
obligation, is based on the market
yields on Government securities
as at the Balance Sheet
date, having maturity periods
approximating to the terms of
related obligations.

Remeasurement gains and
losses on other long term
employee benefits are recognised
in the Statement of Profit and
Loss in the year in which they
arise. Remeasurement gains
and losses in respect of all
defined benefit plans arising from
experience adjustments and
changes in actuarial assumptions
are recognised in the year in
which they occur, directly in other
comprehensive income. Changes
in the present value of the defined
benefit obligation resulting from
plan amendments or curtailments
are recognised immediately
in the Statement of Profit and
Loss as past service cost. Gains
or losses on the curtailment
or settlement of any defined
benefit plan are recognised when
the curtailment or settlement
occurs. Any differential between
the plan assets (for a funded
defined benefit plan) and the
defined benefit obligation as per
actuarial valuation is recognised
as a liability if it is a deficit or as
an asset if it is a surplus (to the
extent of the lower of present
value of any economic benefits
available in the form of refunds
from the plan or reduction in
future contribution to the plan)

Current service cost is recognised
as an expense in the Statement
of Profit and Loss in the period
in which the employee renders
the related service. It represents
the increase in the present value
of the defined benefit obligation
resulting from employee service
during the current financial year.
Current service cost is presented
as part of employee benefits
expense and is not deferred
or capitalised unless directly
attributable to the acquisition or
construction of a qualifying asset.

Past service cost is recognised as
an expense in the Statement of
Profit and Loss on a straight-line
basis over the average period
until the benefits become vested.

To the extent that the benefits
are already vested immediately
following the introduction of, or
changes to, a defined benefit
plan, the past service cost is
recognised immediately in the
Statement of Profit and Loss.

Past service cost may be either
positive (where benefits are
introduced or improved) or
negative (where existing benefits
are reduced).

(k) Share based payments

The Company has opted the policy
to account for Jubilant Ingrevia
Employees Welfare Trust as a legal
entity separate from the Company,
but, as a subsidiary of the Company.

The Company recognises share
based payment expenses basis
grant date fair value of options
(net of estimated forfeiture) and for
those granted to the employees
of subsidiaries is considered as
the Company''s equity contribution
and is added to the carrying value
of investment in the respective
subsidiaries, with a corresponding
increase in equity, over the vesting
period. The increase in equity
recognised in reference to share
based payment transaction is
presented as a separate component
in equity under “share options
outstanding account”. For the option
awards, grant date fair value is
determined on the basis of option¬
pricing model (Black-Scholes-
Merton). Forfeitures are estimated
at the time of grant and revised, if
necessary, in subsequent periods if
actual forfeitures materially differ from
those estimates.

The balance of a share options
outstanding account is transferred
to retained earnings upon expiry
or upon exercise of options, as the
Company is operating the Employee
Stock Option schemes through
Jubilant Ingrevia Employees Welfare
Trust, which has purchased shares
from the secondary market.

(l) Finance costs and finance
income

Finance costs consist of interest
and other costs that an entity incurs
in connection with the borrowing of
funds. Finance cost also includes
exchange differences to the extent
regarded as an adjustment to

the finance costs. Finance costs
that are directly attributable to
the construction or production or
development of a qualifying asset are
capitalised as part of the cost of that
asset. Qualifying assets are assets
that necessarily take a substantial
period of time to get ready for their
intended use or sale. All other finance
costs are expensed in the period in
which they occur.

Investment income earned on the
temporary investment of specific
borrowings pending their expenditure
on qualifying assets is deducted
from the finance costs eligible for
capitalisation. Any difference between
the proceeds (net of transaction
costs) and the redemption amount
is recognised in the Statement of
Profit and Loss over the period of
the borrowings using the effective
interest method.

Finance income consists of interest
income. Interest income or expense
is recognised using the effective
interest method. In calculating interest
income or expense, the EIR is
applied to the gross carrying amount
of the asset (when the asset is not
credit-impaired) or to the amortised
cost of the liability. However, for
financial assets that have become
credit-impaired subsequent to initial
recognition, interest income is
calculated by applying the effective
interest rate to the amortised cost
of the financial asset. If the asset is
no longer credit-impaired, then the
calculation of interest income reverts
to the gross basis.

(m) Income tax

Income tax expense comprises
current and deferred tax. It is
recognised in Statement of Profit
and Loss except to the extent items
recognised directly in equity or in OCI.

» Current tax:

Current tax comprises the
expected tax payable or
receivable on the taxable income
or loss for the year and any
adjustment to the tax payable or
receivable in respect of previous
years. The amount of current
tax payable or receivable is the
best estimate of the tax amount
expected to be paid or received
after considering uncertainty

related to income taxes, if any.

It is measured using tax rates
enacted or substantively enacted
at the reporting date.

Current tax assets and liabilities
are offset only if there is a legally
enforceable right to set off the
recognised amounts, and it is
intended to realise the asset and
settle the liability on a net basis
or simultaneously.

» Deferred tax:

Deferred tax is recognised in
respect of temporary differences
between the carrying amounts
of assets and liabilities for
financial reporting purposes and
the amounts used for taxation
purposes. Deferred tax is not
recognised for:

♦ temporary differences arising
on the initial recognition

of assets or liabilities in a
transaction that is not a
business combination and that
affects neither accounting nor
taxable profit or loss at the
time of the transaction; and

♦ temporary differences
related to freehold land and
investment in subsidiaries and
associates to the extent that
the Company is able to control
the timing of the reversal of
the temporary differences and
it is probable that they will not
reverse in the foreseeable
future;

Deferred tax assets (DTA) include
Minimum Alternate Tax (MAT) paid in
accordance with the tax laws in India,
which is likely to give future economic
benefits in the form of availability
of set off against future income tax
liability. MAT is a tax liability of a
Company computed at specified
rate on adjusted book profits as per
applicable provisions of the Income
Tax Act. A Company is liable to pay
MAT, if the income tax payable under
normal provisions of the Income
Tax Act is less than tax payable
under MAT.

Deferred tax assets are recognised for
unused tax losses, unused tax credits
and deductible temporary differences
to the extent that it is probable that
future taxable profits will be available

against which they can be used.
Unrecognised deferred tax assets are
reassessed at each reporting date and
recognised to the extent that it has
become probable that future taxable
profits will be available against which
they can be used.

Deferred tax is measured at the
tax rates that are expected to be
applied to the period when the asset
is realised or the liability is settled,
based on the laws that have been
enacted or substantively enacted by
the reporting date. The measurement
of deferred tax reflects the tax
consequences that would follow from
the manner in which the Company
expects, at the reporting date, to
recover or settle the carrying amount
of its assets and liabilities.

Deferred tax assets and liabilities
are offset only if there is a legally
enforceable right to set off the
recognised amounts, and it is
intended to realise the asset and
settle the liability on a net basis or
simultaneously.

(n) Leases - Company as a lessee

The Company assesses whether
a contract contains a lease, at
inception of a contract. A contract is,
or contains, a lease if the contract
conveys the right to control the
use of an identified asset for a
period of time in exchange for
consideration. To assess whether a
contract conveys the right to control
the use of an identified asset, the
Company assesses whether: (1)
the contact involves the use of an
identified asset; (2) the Company
has substantially all of the economic
benefits from use of the asset
through the period of the lease; and
(3) the Company has the right to
direct the use of the asset.

The Company''s lease asset classes
primarily consist of leases for land,
buildings, plant and equipment and
vehicles which typically run for a
period of 3 to 25 years, with an option
to renew the lease after that date.

For certain leases, the Company
is restricted from entering into any
sub-lease arrangements. At the date
of commencement of the lease, the
Company recognises a right-of-use
asset and a corresponding lease
liability for all lease arrangements

in which it is a lessee, except for
leases with a term of twelve months
or less (short-term leases). For these
short-term leases, the Company
recognises the lease payments as an
operating expense on a straight-line
basis over the term of the lease.

The right-of-use assets are
initially recognised at cost, which
comprises the initial amount of
the lease liability adjusted for any
lease payments made at or prior
to the commencement date of the
lease plus any initial direct costs
less any lease incentives. They are
subsequently measured at cost
less accumulated depreciation and
impairment losses, if any.

Right-of-use assets are depreciated
from the commencement date on a
straight-line basis over the shorter
of the lease term and useful life of
the underlying asset. Right-of-use
assets are tested for impairment
whenever there is any indication that
their carrying amounts may not be
recoverable. Impairment loss, if any,
is recognised in the Statement of
Profit and Loss.

The lease liability is initially measured
at amortised cost at the present
value of the future lease payments.
The lease payments are discounted
using the interest rate implicit in the
lease or, if not readily determinable,
using the incremental borrowing
rates based on information available
as at the date of commencement
of the lease. Lease liabilities are
remeasured with a corresponding
adjustment to the related right-of-use
asset if the Company changes its
assessment of whether it will exercise
an extension or a termination option.
Lease liability and right-of-use asset
have been separately presented
in the Balance Sheet and lease
payments have been classified as
financing cash flows.

Ind AS 116 requires lessees to
determine the lease term as the
non-cancellable period of a lease
adjusted with any option to extend
or terminate the lease, if the use of
such option is reasonably certain.

The Company makes an assessment
on the expected lease term on a
lease-by-lease basis and thereby
assesses whether it is reasonably

certain that any options to extend
or terminate the contract will be
exercised. In evaluating the lease
term, the Company considers factors
such as any significant leasehold
improvements undertaken over the
lease term, costs relating to the
termination of the lease and the
importance of the underlying asset
to Company''s operations taking into
account the location of the underlying
asset and the availability of suitable
alternatives. The lease term in future
periods is reassessed to ensure that
the lease term reflects the current
economic circumstances.

The Company has elected to
account for short-term leases using
the practical expedients. Instead
of recognising a right-of-use asset
and lease liability, the payments in
relation to these short-term leases
are recognised as an expense in
statement of profit and loss.

(o) Segment reporting

Operating segments are reported in
a manner consistent with the internal
reporting provided to the Chief
Operating Decision Maker (CODM).
The CEO and Managing Director
of the Company is responsible for
allocating resources and assessing
performance of the operating
segments, and accordingly, identified
as the CODM. Revenues, expenses,
assets and liabilities, which are
common to the enterprise as a whole
and are not allocable to segments
on a reasonable basis, have been
treated as “unallocated revenues/
expenses/assets/liabilities”, as the
case may be.

(p) Foreign currency transactions
and translation

i) Functional and presentation
currency

The functional currency of the
Company is the Indian rupee.
These financial statements are
presented in Indian rupee.(?)

ii) Transactions and balances

Foreign currency transactions
are translated into the
functional currency using the
exchange rates at the dates
of the transactions. Foreign
exchange gains and losses
resulting from the settlement of

such transactions and from the
translation of monetary assets
and liabilities denominated in
foreign currencies at balance
sheet date exchange rates
are generally recognised in
Statement of Profit and Loss.

Non-monetary items that are
measured at fair value in a foreign
currency are translated using the
exchange rates at the date when
the fair value was determined.
Translation differences on
assets and liabilities carried at
fair value are reported as part of
the fair value gain or loss. For
example, translation differences
on non-monetary assets such as
equity investments classified as
FVOCI are recognised in other
comprehensive income.

(q) Government grants

Grants from the government are
recognised at their fair value where
there is a reasonable assurance
that the grant will be received and
the Company will comply with all
attached conditions.

Government grants relating to income
are deferred and recognised in the
Statement of Profit and Loss over
the period necessary to match them
with the costs that they are intended
to compensate and presented within
other operating revenue.

Government grants relating to the
purchase of property, plant and
equipment are included in non¬
current liabilities as deferred income
and are credited to Statement of
Profit and Loss on a straight-line
basis over the expected lives of the
related assets and presented within
other income.

(r) Earnings per share

i) Basic earnings per share

Basic earnings per share is
calculated by dividing:

» the profit attributable to owners
of the Company

» by the weighted average number
of equity shares outstanding
during the year, adjusted for
bonus elements in equity shares
issued during the year.

ii) Diluted earnings per share

Diluted earnings per share
adjusts the figures used in the
determination of basic earnings
per share to take into account:

» the after income tax effect of
interest and other financing
costs associated with dilutive
potential equity shares, and

» the weighted average number
of additional equity shares that
would have been outstanding
assuming the conversion of all
dilutive potential equity shares.

(s) Measurement of fair values

A number of the accounting
policies and disclosures require
measurement of fair values, for both
financial and non-financial assets
and liabilities.

Fair values are categorised into
different levels in a fair value
hierarchy based on the inputs used in
the valuation techniques as follows:

Level 1: quoted prices (unadjusted)
in active markets for identical assets
or liabilities.

Level 2: inputs other than quoted
prices included in Level 1 that are
observable for the asset or liability,
either directly (i.e. as prices) or
indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability
that are not based on observable
market data (unobservable inputs).

The Company has an established
control framework with respect to
the measurement of fair values.

This includes a finance team
that has overall responsibility for
overseeing all significant fair value
measurements, including Level 3 fair
values.

The finance team regularly reviews
significant unobservable inputs and
valuation adjustments. If third party
information is used to measure
fair values, then the finance team
assesses the evidence obtained
from the third parties to support the
conclusion that these valuations
meet the requirements of Ind AS,
including the level in the fair value
hierarchy in which the valuations
should be classified.

When measuring the fair value of
an asset or a liability, the Company
uses observable market data as far
as possible. If the inputs used to
measure the fair value of an asset or
a liability fall into different levels of
the fair value hierarchy, then the fair
value measurement is categorised
in its entirety in the same level of the
fair value hierarchy as the lowest
level input that is significant to the
entire measurement.

The Company recognises transfers
between levels of the fair value
hierarchy at the end of the reporting
year during which the change has
occurred.

Further information about the
assumptions made in measuring
fair values used in preparing these
financial statements is included in the
respective notes.

(t) Critical estimates and judgments

The preparation of financial
statements requires management
to make judgments, estimates
and assumptions that affect the
application of accounting policies
and the reported amounts of assets,
liabilities, income and expenses.
Actual results may differ from these
estimates.

Estimates and underlying
assumptions are reviewed on
an ongoing basis. Revisions to
accounting estimates are recognised
in the period in which the estimates
are revised and in any future periods
affected. In particular, information
about significant areas of estimation
uncertainty and critical judgments
in applying accounting policies that
have the most significant effect
on the amounts recognised in the
financial statements is included in the
following notes:

» Assessment of useful life of

property, plant and equipment

and intangible asset - Note 2(c).

» Valuation of inventories

- Note 2(f).

» Recognition of revenue and

related accruals - Note 2(i).

» Fair value measurements

- Note 2(s)

» Impairment of financial assets
and non-financial assets - Note
2(d) and Note 2(e).

» Estimation of assets and

obligations relating to employee
benefits - Note 2(j) and Note 32.

» Recognition and estimation of
tax expense including deferred
tax - Note 2(m), Note 8 and
Note 30.

» Recognition and measurement
of contingency : Key assumption
about the likelihood and
magnitude of an outflow of
resources - Note 38.

» Lease term: whether the

Company is reasonably certain
to exercise extension options -
Note 2(n) and Note 40.

» Share based payments - Note
2(k) and Note 47.

(u) Recent accounting

pronouncement

i) Recent accounting

pronouncement effective
during the year

The Ministry of Corporate Affairs
(“MCA”) notifies new standards
or amendments to the existing
standards under Companies
(Indian Accounting Standards)
Rules as issued from time to
time. MCA has notified below
amendments which are effective
from 01 April 2024.

Introduction of Ind AS 117 -
Insurance contracts

MCA notified Ind AS 117,
a comprehensive standard
that prescribes recognition,
measurement and disclosure
requirements to all insurance
contracts. The standard
is applicable to insurance
companies and it applies to
all companies i.e., insurers,
irrespective of diversities in
practice for accounting insurance
contracts. The standard is not
applicable to the entities which
are accounted as “insurance like”
regulated by IRDAI.

Amendments to Ind AS 116
- Lease liability in a sale and
leaseback

The amendments require
an entity to recognise lease
liability including variable lease
payments which are not linked
to index or a rate at the date of
commencement and right of use
asset it retains.

The Company has reviewed the
new pronouncements and based
on its evaluation has determined
that these pronouncements have
no material impact on the financial
statements.

ii. Recent accounting

pronouncement issued but not
made effective

The Ministry of Corporate Affairs
(“MCA”) notifies new standard
or amendments to the existing
standards under Companies
(Indian Accounting Standards)
Rules as amended from time to
time. During the year ended 31
March 2025, MCA has notified
following new standards or
amendments to the existing
standards applicable to the
Company:

Lack of exchangeability -
Amendments to Ind AS 21

The amendments to Ind AS
21 “The Effects of Changes
in Foreign Exchange Rates”
specify how an entity should
assess whether a currency is
exchangeable and how it should
determine a spot exchange rate
when exchangeability is lacking.
The amendments also require
disclosure of information that
enables users of its financial
statements to understand how the
currency not being exchangeable
into the other currency affects, or
is expected to affect, the entity''s
financial performance, financial
position and cash flows.

The amendments are effective
for annual reporting periods
beginning on or after 01 April
2025. When applying the
amendments, an entity cannot
restate comparative information.

The amendments will not have a
material impact on the Company''s
financial statements.

Notes:

(1) The amount of non-current investment represents maximum amount of investments outstanding during the year. Hence this
disclosure also suffice the requirements of Section 186(4) of the Act.

(2) The Company holds 37.98% paid up equity share capital of Mister Veg Foods Private Limited (“MVFPL”). The shareholder
agreement entitles the Company to nominate one board member and it also entitles the Company to vote in all the shareholders
meetings in proportion to their shareholding, accordingly, this investment is classified and presented as an associate. MVFPL is
primarily engaged in the business of food products.

(3) Pursuant to Share Purchase, Subscription and Shareholder''s agreement (“SPSSA”) with AMP Energy C&I Private Limited and AMP
Energy Green Fifteen Private Limited (“AMP”) dated 8 October 2021, the Company had acquired 26.00% stake of AMP, for the
purpose of setting up a solar power plant with capacity of 15.5 MW, for captive consumption of power. Pursuant to that, the Company
had made investment of ?58.28 million in AMP, representing investment in 582,800 number of equity shares of '' 10 each and
52,452 number of 0.01% Compulsorily Convertible Debenture of '' 1,000 each. Further, the Company had also entered into a Power
Purchase Agreement (‘PPA'') with AMP to procure 100% of the output of solar energy produced for next 20 years as per the rates
negotiated in agreement. As per the SPSSA, in the event of termination of the contracts or completion of the PPA term, the Company
will receive investment value only without any share of profit/ loss in the associate. Accordingly, the investment amount has been
amortised to give the effect of expected fixed return on such investment due to the difference in agreement rate and existing
government grid rates. As the Company has significant influence, the investment has been presented as investment in associate as
per Ind AS 28 “Investments in associates and joint ventures”.

(4) Pursuant to Securities Subscription and Shareholder''s agreement (SSSA) with Teq Green Power XI Private Limited, O2 Power SG
Pte Ltd and O2 Renewable Energy XVIII Private Limited (“O2”) dated 07 March 2024, the Company had acquired 19.97% stake of
O2 as on 31 March 2025 with a target to acquire 26% to 28% stake of O2, for the purpose to develop an off-site Inter State grid-
connected captive generating plant with gross capacity of around 10.8 MW of wind and 6.25 MWAC of solar. Pursuant to that, the
Company had made investment of '' 76.88 million in O2 as on 31 March 2025, representing investment in 2,844,375 number of
equity shares of '' 10 each and 48,431 number of 0.01% Compulsorily Convertible Debenture of '' 1,000 each. Further, the Company
had also entered into a Power Purchase Agreement (‘PPA'') with O2 to procure 100% of the output produced for next 25 years. As
per the SSSA, in the event of termination of the contracts or completion of the PPA term, the Company will receive investment value
only without any share of profit/ loss in the associate. Accordingly, the investment amount has been amortised to give the effect of
expected fixed return on such investment due to the difference in agreement rate and existing government grid rates.

Note 15: Nature and purpose of other equity

» Capital reserve

Accumulated capital reserve not available for distribution of dividend and expected to remain invested permanently.

» Securities premium

The unutilised accumulated balance represents excess of issue price over face value on issue of shares. This reserve is utilised in
accordance with the provisions of the Act.

» General reserve

This represents appropriation of profit and is available for distribution of dividend.

» Share options outstanding account

This account used to recognise the grant date fair value of options issued to eligible employees pursuant to the Company''s employee
stock option plan.

» Retained earnings

Retained earnings represent the amount of accumulated earnings and re-measurement differences on defined benefit plans recognised
in OCI within equity.

16.1 Nature of security of non-current borrowings and other terms of repayment as at 31 March 2025

16.1.1 Indian rupee term loans amounting to '' 1,285.71 million (31 March 2024: '' 1,500 million) from Axis Bank Limited is secured
by a first pari-passu charge created on entire movable fixed assets of the Company. This is repayable in 14 equal quarterly
installments from December 2024.

16.1.2 Indian rupee term loans amounting to '' 1,470 million (31 March 2024: '' 1,500 million) from HDFC Bank Limited is secured by
a first pari-passu charge created on entire movable fixed assets of the Company. This is repayable in 16 structured quarterly
installments from December 2024.

16.1.3 Indian rupee term loans amounting to '' 1,200 million (31 March 2024: '' 1,200 million) from HDFC Bank Limited is secured by
a first pari-passu charge created on entire movable fixed assets of the Company. This is repayable in 16 structured quarterly
installments from June 2025.

The term loans carry floating interest rate calculated in accordance with the terms of the arrangement which is a specified
benchmark rate (reset at periodic intervals), adjusted for agreed spread. During the year ended 31 March 2025, the interest rate
on long-term Indian rupees term loans range from 7.09% to 8.60 % per annum (31 March 2024: 7.53% to 8.50% per annum).

16.1.4 Loan from subsidiary amounting to '' 860 million (31 March 2024: '' 1,262.50 million) repayable upto five years from the date
of disbursement and carries interest rate in range from 6.55% to 7.78% (31 March 2024: 7.05% to 7.76%) per annum. The
loan from subsidiary, classified as current borrowings is in accordance with the request letter received from the subsidiary for
payment to be made during the financial year 2025-26.

16.2: Nature of security of current borrowings and other terms of repayment as at 31 March 2025

16.2.1 Working capital facilities and demand loan sanctioned by consortium of banks are secured by a first charge by way of
hypothecation, ranking pari-passu inter-se banks, of the entire book debts and receivables and inventories, both present and
future, of the Company wherever the same may be or be held. Working capital loans are repayable as per terms of agreement
within one year.

16.2.2 Short term loans and working capital facilities are availed in Indian rupees which carry floating interest rate calculated in
accordance with the terms of the arrangement which is a specified benchmark rate (reset at periodic intervals), adjusted for
agreed spread. During the year ended 31 March 2025, the interest rate on short-term Indian currency loans range from 6.00% to
10.10 % per annum (31 March 2024: 6.69% to 9.60% per annum).

(B) Defined benefit plans

i. Gratuity

In accordance with Ind AS 19 “Employee Benefits”, an actuarial valuation has been carried out in respect of gratuity. The
discount rate is 6.90% p.a. (31 March 2024: 7.13% p.a.) which is determined by reference to market yield on Government bonds
at the Balance Sheet date.

The retirement age has been considered at 58 years (31 March 2024:_58 years) and mortality table is as per IALM (2012-14)

(31 March 2024: IALM (2012-14)). Expected average remaining working lives of employees are 16.55 years (31 March 2024:
17.26 years) and weighted average duration are 6.23 years (31 March 2024: 6.60 years)

The estimates of future salary increases, considered in actuarial valuation is 10% p.a., for first three years and 6% p.a.
thereafter (31 March 2024: 10% p.a. for first three years and 6% p.a. thereafter), taking into account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.

The plan assets are maintained with Life Insurance Corporation of India in respect of gratuity scheme for certain employees of a
unit of the Company. The details of investments maintained by Life Insurance Corporation are not available with the Company,
hence not disclosed. The expected rate of return on plan assets is 6.90% p.a. (31.March 2024: 7.13% p.a.).

(C) Risk exposures:

These plans typically expose the Company to the following actuarial risks:

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the plan''s liability.

Interest rate risk: A fall in the discount rate, which is linked, to the Government Bond rate will increase the present value of the liability
requiring higher provision.

Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will
create a plan deficit.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any
longevity risk.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an
individual or a legal entity, whether they are institutional, dealers or end-user customer, their geographic location, industry, trade
history with the Company and existence of previous financial difficulties.

As at 31 March 2025 and 31 March 2024, there is no major customer not meeting the credit risk policies of the Company.
Expected credit loss with respect to trade receivables:

With respect to trade receivables, based on internal assessment which is driven by the historical experience/current facts
available in relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. The
Company estimates its allowance for trade receivable using lifetime expected credit loss. The balance past due for more than 6
months (net of expected credit loss allowance) is '' 26.02 million (31 March 2024: '' 12.18 million).

The following methods/assumptions were used to estimate the fair values::

(a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount
due to the short term maturities of these instruments. Further, the fair value disclosure of lease liabilities is not required.

(b) Fair valuation of non-current financial assets has been disclosed to be same as carrying value as there is no significant difference
between carrying value and fair value.

(c) Long term borrowings taken by the Company are as per the Company''s credit and liquidity risk assessment and there is no
comparable instrument having the similar terms and conditions with related security being pledged and hence the carrying value of
the borrowings represents the best estimate of fair value.

Note 34: Financial risk management

Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk
management framework.

The Company, through three layers of defense namely policies and procedures, review mechanism and assurance aims to maintain a
disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit committee of
the Board of Directors with top management oversees the formulation and implementation of the risk management policies. The risks are
identified at business unit level and mitigation plan are identified, deliberated and reviewed at appropriate forums.

The Company has exposure to the following risks arising from financial instruments::

- credit risk (see (i));

- liquidity risk (see (ii)); and

- market risk (see (iii)).

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company''s receivables from customers, loans and investments and other
financial assets. The carrying amount of financial assets represents the maximum credit exposure.

Trade receivables and other financial assets

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before
the Company''s standard payment and delivery terms and conditions are offered. The Company''s review includes external ratings,
if they are available, financial statements, credit agency information, industry information and business intelligence. Sale limits
are established for each customer and reviewed annually. Any sales exceeding those limits require approval from the appropriate
authority as per policy.

* Receivables are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing
to engage in a payment plan with the Company.

Expected credit loss with respect to other financial asset:

With regards to all financial assets with contractual cash flows, other than trade receivables, management believes these to be
high quality assets with negligible credit risk. The management believes that the parties, from which these financial assets are
recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and accordingly no allowance
for excepted credit loss has been provided on these financial assets.

ii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far
as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company''s treasury department is responsible for managing the short-term and long-term liquidity requirements. Short-term
liquidity situation is reviewed daily by the treasury department. Long-term liquidity position is reviewed on a regular basis by the
Board of Directors and appropriate decisions are taken according to the situation.

Notes:

(1) Carrying amount presented as net of unamortised transaction cost.

(2) Contractual cash flows exclude future interest payable.

iii. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company''s
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimising the return.

Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases
and borrowings are denominated and the functional currency of the Company. The currencies in which the Company is exposed
to risk are EUR and USD.

The Company follows a natural hedge driven currency risk mitigation policy, to the extent possible. Any residual risk is
evaluated and appropriate risk mitigating steps are planned, including but not limited to, entering into forward contracts and
interest rate swaps.

Exposure to currency risk

The summary quantitative data about the Company''s exposure (unhedged) to currency risk as reported to the management of the
Company is as follows:

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest
rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the
Company are principally denominated in INR with a mix of fixed and floating rates of interest. The Company has exposure to
interest rate risk, arising principally on changes in base lending rate.

Exposure to interest rate risk

The interest rate profile of the Company''s interest bearing financial instruments, as reported to the management of the Company
is as follows:

The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate liabilities assuming
the amount of the liability outstanding at the year-end was outstanding for the whole year.

If interest rates had been 25 basis points higher or lower and all other variables were held constant, the Company''s
profit before tax and other equity for the year ended 31 March 2025 would decrease or increase by '' 19.64 million
(31 March 2024: '' 20.73 million). This is mainly attributable to the Company''s exposure to interest rates on its floating
rate borrowings.

Note 35: Capital management

(a) Risk management

The Company''s objectives when managing capital are to:

» Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits
for other stakeholders; and

» Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return
capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

‘Net debt'' (total borrowings net of cash and cash equivalents and other bank balances) divided by ‘Total equity'' (as shown in the
Balance Sheet).

The gearing ratios were as follows:

The Board of Directors at their meeting held on 13 May 2025 have recommended a final dividend of '' 2.50 (250%) per equity share
of '' 1 each amounting to '' 398.20 million for the year ended 31 March 2025 subject to approval in ensuing Annual General Meeting.
During the year ended 31 March 2025, the Company has already declared an interim dividend of '' 2.50 per equity share of '' 1 each
and hence, the total dividend for the year ended 31 March 2025 is amounting to be '' 796.41 million i.e. '' 5.00 (500%) per equity
share of '' 1.

Note 36: Segment information

Business Segments

The CEO and Managing Director of the Company have been identified as the Chief Operating Decision Maker (CODM) as defined
by Ind AS 108 “Operating Segments”. Operating Segments have been defined and presented based on the regular review by the
CODM to assess the performance of each segment and to make decision about allocation of resources. Accordingly, the Company
has determined reportable segments by the nature of its products and services, which are as follows:

a. Specialty chemicals: i) Bio-Pyridine & Bio-Picolines ii) Fine chemicals iii) Agro chemicals iv) Custom development and
manufacturing organization v) Microbial control solutions.

b. Nutrition & Health solutions: i) Nutrition and health ingredients ii) Animal and human nutrition health solutions.

c. Chemical intermediates: i) Acetyls ii) Specialty ethanol.

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the
financial statements of the Company as a whole.

No operating segments have been aggregated to form the above reportable operating segments.

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total
common costs.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and not allocable to segments on reasonable
basis have been included under ‘unallocated revenue or expenses or assets or liabilities''.

Finance costs and fair value gains and losses on certain financial assets are not allocated to individual segments as the underlying
instruments are managed on a Company basis.

Borrowings, current taxes, deferred taxes and certain financial assets and liabilities are not allocated to the segments and have been
included under ‘unallocated assets or liabilities''.

Information related to each reportable segment is set out below. Segment results (profit before interest and tax) is used to measure
performance because management believes that this information is most relevant in evaluating the results of the respective
segments relative to other entities that operate in the same industries.

*Non-current assets are excluding financial instruments and deferred tax assets.

During the year ended 31 March 2025, one customer contributed 11.95% ( 31 March 2024: 12.38%) to the Company''s revenue.

Note No. 37. Related Party Disclosures

1 Related parties where control exists or with whom transactions have taken place:

a) Subsidiaries including step-down subsidiaries:

Jubilant Life Sciences (Shanghai) Limited, Jubilant Ingrevia (USA) Inc. (Formerly known as Jubilant Life Sciences (USA)

Inc.), Jubilant Infrastructure Limited, Jubilant Life Sciences NV, Jubilant Life Sciences International Pte. Ltd., Jubilant Ingrevia
Employee Welfare Trust, Jubilant Agro Sciences Limited.

b) Enterprise in which certain directors are interested or are in common:

Jubi

---

Mar 31, 2024

(1) The amount of non-current investment represents maximum amount of investments outstanding during the year. Hence this disclosure also suffice the requirements of Section 186(4) of the Act.

(2) During the year ended 31 March 2023, the Company had exercised the option to convert 2,656 number of 0.01% Convertible Preference Shares (''CPS'') of H 10 each of Mister Veg Foods Private Limited, India ("MVFPL") into 2,656 numbers of equity shares of H 10 each in the ratio of 1:1. Further, the Company had also subscribed 3,473 equity share on right issue basis for cash consideration of H 21.25 million. After conversion of preference shares into equity shares and acquisition of additional equity shares on right issue basis, the Company holds 37.98% paid up equity share capital of MVFPL. The shareholder agreement entitles the Company to nominate one board member and it also entitles the Company to vote in all the shareholders meetings in proportion to their shareholding, accordingly, this investment is classified and presented as an associate, measured at cost. MVFPL is primarily engaged in the business of food products.

(3) Pursuant to Share Purchase, Subscription and Shareholder''s agreement ("SPSSA") with AMP Energy C&I Private Limited and AMP Energy Green Fifteen Private Limited ("AMP") dated 8 October 2021, the Company had acquired 26.00% stake of AMP, for the purpose of setting up a solar power plant with capacity of 15.5 MW, for captive consumption of power. Pursuant to that, the Company had made investment of H 58.28 million in AMP, representing investment in 582,800 number of equity shares of H 10 each and 52,452 number of 0.01% Compulsorily Convertible Debenture of H 1,000 each. Further, the Company had also entered into a Power Purchase Agreement (''PPA'') with AMP to procure 100% of the output of solar energy produced for next 20 years as per the rates negotiated in agreement. As per the SPSSA, in the event of termination of the contracts or completion of the PPA term, the Company will receive investment value only without any share of profit/ loss in the associate. Accordingly, the investment amount has been amortised to give the effect of expected fixed return on such investment due to the difference in agreement rate and existing government grid rates. As the Company has significant influence, the investment has been presented as investment in associate as per Ind AS 28 "Investments in associates and joint ventures".

Note 8. Deferred tax

Deferred income tax reflect the net tax effects of temporary difference between the carrying amount of asset and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant component of the Company''s net deferred income tax are as follows:

* Adjustment for Jubilant Ingrevia Employees Welfare Trust (''the Trust''), as the Trust is assessed along with the Company under Income-tax Act, 1961. Accordingly, this is shown as recoverable from the Trust.

# During the year ended 31 March 2024, the Company has opted for new tax regime effective financial year 2023-24 onwards whereby, the applicable statutory income tax rate will be 25.17% as against the statutory income tax rate of 34.944% in the old tax regime in the prior years. Consequently, the tax expense for the year ended 31 March 2024 includes onetime transitional write-off of brought forward minimum alternate tax credit amounting to H 125.60 million.

DTA has not been recognised on temporary differences in relation to indexation benefit on investment in subsidiaries and freehold land amounting to H 360.60 million (31 March 2023: H 327.06 million) and H 108.31 million (31 March 2023: H 97.65 million) respectively, as the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary differences will not reverse in foreseeable future.

(b) Terms and rights attached to equity shares:

The Company has only one class of shares referred to as equity shares having par value of H 1 each. The holder of each equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(c) Aggregate number of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, by way of bonus shares and shares bought back from the date of incorporation of Company:

The Company did not issue any shares pursuant to contract(s) without payment being received in cash.

The Company did not issue bonus shares.

The Company has not undertaken any buy back of shares.

Note 15. Nature and purpose of other equity

• Capital reserve

Accumulated capital reserve not available for distribution of dividend and expected to remain invested permanently.

• Securities premium

The unutilised accumulated balance represents excess of issue price over face value on issue of shares. This reserve is utilised in accordance with the provisions of the Act.

• General reserve

This represents appropriation of profit and is available for distribution of dividend.

• Share options outstanding account

This account used to recognise the grant date fair value of options issued to eligible employees pursuant to the Company''s employee stock option plan.

• Retained earnings

Retained earnings represent the amount of accumulated earnings and re-measurement differences on defined benefit plans recognised in OCI within equity.

16.1 Nature of security of non-current borrowings and other terms of repayment as at 31 March 2024

16.1.1 Indian rupee term loans amounting to H 1,500 million (31 March 2023: H 1,500 million) from Axis Bank Limited is secured by a first pari-passu charge created on entire movable fixed assets of the Company. This is repayable in 14 equal quarterly installments from December 2024.

16.1.2 Indian rupee term loans amounting to H 1,500 million (31 March 2023: H Nil) from HDFC Bank Limited is secured by a first pari-passu charge created on entire movable fixed assets of the Company. This is repayable in 16 structured quarterly installments from December 2024.

16.1.3 Indian rupee term loans amounting to H 1,200 million (31 March 2023: H Nil) from HDFC Bank Limited is secured by a first pari-passu charge created on entire movable fixed assets of the Company. This is repayable in 16 structured quarterly installments from June 2025.

16.1.4 Loan from subsidiary is repayable up to five years from the date of respective disbursement and carry interest rate in range from 7.05% to 7.76% (31 March 2023: 6.25% to 7.74%) per annum.

The term loans carry floating interest rate calculated in accordance with the terms of the arrangement which is a specified benchmark rate

(reset at periodic intervals), adjusted for agreed spread. During the year ended 31 March 2024, the interest rate on long-term Indian rupees

term loans range from 7.53% to 8.50 % per annum (31 March 2023: 7.65% to 8.25% per annum).

16.2 Nature of security of current borrowings and other terms of repayment as at 31 March 2024

16.2.1 Working capital facilities and demand loan sanctioned by consortium of banks are secured by a first charge by way of hypothecation, ranking pari-passu inter-se banks, of the entire book debts and receivables and inventories, both present and future, of the Company wherever the same may be or be held. Working capital loans are repayable as per terms of agreement within one year.

16.2.2 Short term loans and working capital facilities are availed in Indian rupees which carry floating interest rate calculated in accordance with the terms of the arrangement which is a specified benchmark rate (reset at periodic intervals), adjusted for agreed spread. During the year ended 31 March 2024, the interest rate on short-term Indian currency loans range from 6.69% to 9.60 % per annum (31 March 2023: 3.54% to 9.05% per annum).

16. (d) Borrowings secured against current assets

The Company has given current assets (as per sanctioned letter) as security for working capital facilities of H18,000.00 million (31 March 2023: H18,000.00 million) obtained from consortium of banks. The quarterly stock statement filed by the Company in respect to the same is in agreement with the books of accounts of the Company.

(B) Defined benefit plans

i. Gratuity

In accordance with Ind AS 19 "Employee Benefits" an actuarial valuation has been carried out in respect of gratuity. The discount rate is 7.13% p.a. (31 March 2023: 7.35% p.a.) which is determined by reference to market yield on Government bonds at the Balance Sheet date.

The retirement age has been considered at 58 years (31 March 2023: 58 years) and mortality table is as per IALM (2012-14) (31 March 2023: IALM (2012-14)). Expected average remaining working lives of employees are 17.26 years (31 March 2023: 17.51 years) and weighted average duration are 6.60 years (31 March 2023: 7.42 years)

The estimates of future salary increases, considered in actuarial valuation is 10% p.a., for first three years and 6% p.a. thereafter (31 March 2023: 10% p.a. for first three years and 6% p.a. thereafter), taking into account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The plan assets are maintained with Life Insurance Corporation of India in respect of gratuity scheme for certain employees of a unit of the Company. The details of investments maintained by Life Insurance Corporation are not available with the Company, hence not disclosed. The expected rate of return on plan assets is 7.13% p.a. (31 March 2023: 7.35% p.a.).

(C) Risk exposures:

These plans typically expose the Company to the following actuarial risks:

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

Interest rate risk: A fall in the discount rate, which is linked, to the Government Bond rate will increase the present value of the liability requiring higher provision.

Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Reconciliation of opening and closing balances of the present value of the defined benefit obligation:

The following methods/assumptions were used to estimate the fair values:

(a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the short term maturities of these instruments. Further, the fair value disclosure of lease liabilities is not required.

(b) Fair valuation of non-current financial assets has been disclosed to be same as carrying value as there is no significant difference between carrying value and fair value.

(c) Long term borrowings taken by the Company are as per the Company''s credit and liquidity risk assessment and there is no comparable instrument having the similar terms and conditions with related security being pledged and hence the carrying value of the borrowings represents the best estimate of fair value.

Note 34. Financial risk management

Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

The Company, through three layers of defense namely policies and procedures, review mechanism and assurance aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit committee of the Board of Directors with top management oversees the formulation and implementation of the risk management policies. The risks are identified at business unit level and mitigation plan are identified, deliberated and reviewed at appropriate forums.

The Company has exposure to the following risks arising from financial instruments:

- credit risk (see (i));

- liquidity risk (see (ii)); and

- market risk (see (iii)).

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, loans and investments and other financial assets. The carrying amount of financial assets represents the maximum credit exposure.

Trade receivables and other financial assets

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. Sale limits are established for each customer and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as per policy.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether they are institutional, dealers or end-user customer, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.

As at 31 March 2024 and 31 March 2023, there is no major customer not meeting the credit risk policies of the Company.

Expected credit loss with respect to trade receivables:

With respect to trade receivables, based on internal assessment which is driven by the historical experience/current facts available in relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company estimates its allowance for trade receivable using lifetime expected credit loss. The balance past due for more than 6 months (net of expected credit loss allowance) is H 12.18 million (31 March 2023: H 20.11 million).

* Receivables are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a payment plan with the Company.

Expected credit loss with respect to other financial asset:

With regards to all financial assets with contractual cash flows, other than trade receivables, management believes these to be high quality assets with negligible credit risk. The management believes that the parties, from which these financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and accordingly no allowance for excepted credit loss has been provided on these financial assets.

ii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company''s treasury department is responsible for managing the short-term and long-term liquidity requirements. Short-term liquidity situation is reviewed daily by the treasury department. Long-term liquidity position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken according to the situation.

(1) Carrying amount presented as net of unamortised transaction cost.

(2) Contractual cash flows exclude interest payable.

iii. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and borrowings are denominated and the functional currency of the Company. The currencies in which the Company is exposed to risk are EUR and USD.

The Company follows a natural hedge driven currency risk mitigation policy, to the extent possible. Any residual risk is evaluated and appropriate risk mitigating steps are planned, including but not limited to, entering into forward contracts and interest rate swaps.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in INR with a mix of fixed and floating rates of interest. The Company has exposure to interest rate risk, arising principally on changes in base lending rate.

The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate liabilities assuming the amount of the liability outstanding at the year-end was outstanding for the whole year.

If interest rates had been 25 basis points higher or lower and all other variables were held constant, the Company''s profit before tax and other equity for the year ended 31 March 2024 would decrease or increase by H 20.73 million (31 March 2023: H 15.02 million). This is mainly attributable to the Company''s exposure to interest rates on its floating rate borrowings.

Note 35. Capital management

(a) Risk management

The Company''s objectives when managing capital are to:

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders; and

• Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

''Net debt'' (total borrowings net of cash and cash equivalents and other bank balances) divided by ''Total equity'' (as shown in the Balance Sheet).

The Board of Directors at their meeting held on 14 May 2024 have recommended a final dividend of H 2.50 (250%) per equity share of H 1 each amounting to H 398.20 million for the year ended 31 March 2024 subject to approval in ensuing Annual General Meeting. During the year ended 31 March 2024, the Company has already declared an interim dividend of H 2.50 per equity share of H 1 each and hence, the total dividend for the year ended 31 March 2024 is amounting to be H 796.41 million i.e. H 5.00 (500%) per equity share of H 1.

Note 36. Segment information

Business segments

The CEO and Managing Director of the Company have been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS

108 "Operating Segments". Operating Segments have been defined and presented based on the regular review by the CODM to assess the

performance of each segment and to make decision about allocation of resources. Accordingly, the Company has determined reportable segments by the nature of its products and services, which are as follows:

a. Speciality chemicals: i) Bio-Pyridine & Bio-Picolines ii) Fine chemicals iii) Agro chemicals iv) Custom development and manufacturing organization v) Microbial control solutions.

b. Nutrition & Health solutions: i) Nutrition and health ingredients ii) Animal and human nutrition health solutions

c. Chemical intermediates: - i) Acetyls ii) Speciality ethanol

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

No operating segments have been aggregated to form the above reportable operating segments.

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and not allocable to segments on reasonable basis have been included under ''unallocated revenue or expenses or assets or liabilities''.

Finance costs and fair value gains and losses on certain financial assets are not allocated to individual segments as the underlying instruments are managed on a Company basis.

Borrowings, current taxes, deferred taxes and certain financial assets and liabilities are not allocated to the segments and have been included under ''unallocated assets or liabilities.

Information related to each reportable segment is set out below. Segment results (profit before interest and tax) is used to measure performance because management believes that this information is most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industries.

Note 37. Related Party Disclosures

1. Related parties where control exists or with whom transactions have taken place:

a) Subsidiaries including step-down subsidiaries:

Jubilant Life Sciences (Shanghai) Limited, Jubilant Life Sciences (USA) Inc., Jubilant Infrastructure Limited, Jubilant Life Sciences NV, Jubilant Life Sciences International Pte. Ltd., Jubilant Ingrevia Employee Welfare Trust, Jubilant Agro Sciences Limited (formerly known as Jubilant Crop Protection Limited).

b) Enterprise in which certain directors are interested or are in common:

Jubilant Pharmova Limited, Jubilant Biosys Limited, Jubilant Agri and Consumer Products Limited, Jubilant Industries Limited, Jubilant Generics Limited, Jubilant Business Services Limited, Jubilant Enpro Private Limited, Jubilant FoodWorks Limited, Jubilant Consumer Private Limited, PSI Supply NV, Jubilant Pharmaceuticals NV, Jubilant HollisterStier LLC, Jubilant Pharma Holdings Inc., JOGPL Private Limited, Jubilant Therapeutics India Limited, Jubilant Clinsys Limited, Jubilant DraxImage Limited, Jubilant First Trust Healthcare Limited, Jubilant Cadista Pharmaceuticals Inc. Jubilant DraxImage Inc., Jubilant HollisterStier General Partnership, Jubilant FoodWorks International Investments Limited, Hindustan Media Ventures Limited, Jubilant Employees Welfare Trust.

c) Key management personnel (KMP):

Mr. Hari S. Bhartia (designated as Co-Chairman and Whole-time Director w.e.f. 1 June 2023), Mr Deepak Jain (w.e.f. 1 October 2023), Mr Chandan Singh Sengar (w.e.f. 16 May 2023), Mr. Rajesh Kumar Srivastava (upto 30 September 2023), Mr. Anil Khubchandani (w.e.f. 17 May 2022 and upto 19 May 2023), Mr. Anant Pande (upto 17 May 2022), Mr. Prakash Chandra Bisht, Ms. Deepanjali Gulati.

d) Non-executive directors:

Mr. Shyam S. Bhartia, Ms. Sudha Pillai, Mr. Arun Seth, Mr. Sushil Kumar Roongta, Mr. Pradeep Banerjee, Mr. Siraj Azmat Chaudhry, Ms. Ameeta Chatterjee.

e) Associates:

Mister Veg Foods Private Limited, AMP Energy Green Fifteen Private Limited. f ) Other:

Jubilant Bhartia Foundation

* As the liabilities for the gratuity and compensated absences are provided on an actuarial basis, and calculated for the Company as a whole, the said liabilities pertaining specifically to KMP are not known and hence, not included in the above table.

** Mr. Rajesh Kumar Srivastava superannuated as CEO and Managing Director with effect from 30 September 2023. After superannuation, he continued as an employee of the Company till 31 December 2023.

*** Mr. Chandan Singh was appointed as Whole-time Director of the Company effective from 16 May 2023 and designated as Co-CEO from the same date. Before this, he was an employee of the Company.

# Commission payable is subject to the approval of shareholders in the annual general meeting.

Note:

(i) The Company has issued support letter (''letter'') to Jubilant Infrastructure Limited (''subsidiary'') for providing operational and financial support for a period of 12 months from the date of said letter.

(ii) The Company''s material related party transactions are at arm''s length and in the ordinary course of business.

(1) The central excise, state excise and customs related matters are primarily related to cenvat credit availment, levy of additional fee by the authorities on imports/exports and concessional rate for import duty respectively.

(2) The sales tax related matters are primarily related to short value added tax paid on procurement of molasses.

(3) The income tax related contingent liabilities are primarily comprising of transfer pricing matters and also certain corporate tax matters.

(4) The service tax and goods and services tax related matters are primarily related to service tax demands on ocean freights and goods and service tax credit availment.

(5) Other matters are primarily related to additional demand for environmental clearances and certain employee''s related matters. The above mentioned litigations are pending with various courts/authorities.

Future cash outflows in respect of the above matters are determinable only on receipt of judgments/decisions pending at various stages/forums.

The Company believes that none of these matters, either individually or in aggregate, are expected to have any material impact on its financial statements.

(ii) As at 31 March 2024, the Company has outstanding letter of credits amounting to H 521.27 million (31 March 2023: H 15.03 million).

Note 39. Commitments as at year end

a) Capital commitments:

Estimated amount of contracts remaining to be executed on capital account (net of advances) is H 802.84 million (31 March 2023: H 1,391.97 million) for property, plant and equipment and H 3.65 million (31 March 2023: H 12.54 million) for intangible assets.

b) Other commitments:

i. The Company has total commitment for short term leases as at 31 March 2024 is H 3.77 million (31 March 2023: H 1.62 million).

ii. As on 31 March 2024, the Company has made a commitment to invest H 102.50 million in O2 Renewable Energy XVIII Private Limited engaged in electricity generation through solar and wind energy.

iii. The Company has issued support letter (''letter'') to Jubilant Infrastructure Limited (''subsidiary'') for providing operational and financial support for a period of 12 months from the date of said letter.

(d) The weighted average incremental borrowing rate applied to discount lease liabilities is in the range of 6.75% - 9.16%.

Note 41. Other operating income includes primarily sale of scrap amounting to H 199.61 million (31 March 2023: H 201.22 million) and government grants amounting to H 115.21 million (31 March 2023: H 40.77 million) relating to export sales incentives. The balance in grants receivable from government authorities amounts to H 39.05 million as at 31 March 2024 (31 March 2023: H 9.07 million).

Note 42. During the year, finance costs amounting to H 149.27 million (31 March 2023: H 165.10 million) has been capitalised in property, plant and equipment, calculated using capitalisation rate of 7.60% (31 March 2023: 6.75%)

Note 43. (a) Corporate Social Responsibility ("CSR") Expenditure:

(i) Gross amount required to be spent by the Company during the year is H 73.24 million (31 March 2023: H 48.72 million)

(ii) Amount approved by the Board to be spent during the year: H 73.25 million (31 March 2023: H 48.72 million)

(v) Total of previous year''s shortfall: Nil

(vi) Reason for shortfall: Not applicable

(vii) Nature of CSR activities: The CSR activity focus areas are health, education and livelihood to improve the quality of the life of the community around the manufacturing locations.

(viii) Details of related party transactions: Refer note 37

(ix) Where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the year should be shown separately: Not applicable

(b) Donation includes H 62.50 million (31 March 2023: H Nil) to Prudent Electoral Trust during the year.

Note 44. (i) The Company has not advanced or loaned or invested funds to any person or any entity, including foreign entities (intermediaries) with the understanding that the intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by a or on behalf of the Company (ultimate beneficiaries); or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(ii) The Company has not received any fund from any person or any entity, including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by a or on behalf of the funding party (ultimate beneficiaries); or

(b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

Note 45. The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income-tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the specified domestic transactions entered into with the specified persons and the international transactions entered into with the associated enterprises during the financial year and expects such records to be in existence before the due date of filing of income tax return. The management is of the opinion that its specified domestic transactions and international transactions are at arm''s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

Note 46. The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The Company uses accounting software for maintaining its books of account for all accounting and payroll records. During the year ended 31 March 2024, the Company had not enabled the feature of recording audit trail (edit log) at the database level the said accounting software for the period 1 April 2023 till 30 November 2023 to log any direct data changes. While for the period from 01 April 2023 to 30 November 2023, the audit trail was managed by a third party service provider but the record for this period were not preserved by the Company.

Note 47. Employee stock option scheme

The Company has a stock option plan in place namely "Jubilant Ingrevia Employees Stock Option Plan 2021" ("Plan 2021").

The Nomination, Remuneration and Compensation Committee (''Committee'') of the Board of Directors (''Board'') which comprises a majority of Independent Directors is responsible for administration and supervision of the Stock Option Plan.

Under Plan 2021, up to 2,000,000 Stock Options can be issued to eligible directors (other than promoter directors and independent directors) and other specified categories of employees of the Company / subsidiaries.

In 2020-21, Jubilant Ingrevia Employees Welfare Trust (''Trust'') was constituted for the purpose of acquisition of equity shares of the Company from the secondary market or subscription of shares from the Company, to hold the shares and to allocate/transfer these shares to eligible employees of the Company/subsidiaries from time to time on the terms and conditions specified under Plan 2021.

During the year ended 31 March 2024, Trust purchased 1,000,551 (31 March 2023: Nil) equity shares of the Company from the open market, out of which 21,995 (31 March 2023: 2,370) equity shares were transferred to the employees on exercise of options.

Fair value of options granted:

The weighted average fair value of options granted during the year for Plan 2021 was H 379.38 (31 March 2023: H411.54) per option. The fair value at grant date is determined using the Black-Scholes-Merton model which takes into account the exercise price, the term of the option, the share price at grant date, expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The weighted average share price on the date of exercise for Plan 2021 was H 436.76 (31 March 2023: H 559.70).

Expected volatility was based on an evaluation of the historical volatility of the share price, particularly over the historical period commensurate with the expected term. The expected term of the instruments has been based on historical experience and general option holder behaviour.

Note 52.Other statutory information

i. The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

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

iii. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or

disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

iv. The Company is not declared willful defaulter by any bank or financials institution or lender during the year.

v. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

vi. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies act, 2013 read with the companies (restriction on number of layers) rule, 2017.

vii. Quarterly returns or statements of current assets filed by the Company with banks are in agreement with the unaudited books of accounts and no material discrepancy was noticed with the reviewed/ audited books of account.

viii. No loans are granted to promoters, directors, KMPs and the related parties either severally or jointly with any other person, that are: (a) repayable on demand; or (b) without specifying any terms or period of repayment.

Note 53. Previous year figures have been regrouped/ reclassified to conform to the current year''s classification. The impact of such

reclassification/regrouping is not material to the financial statements

The accompanying notes, including summary of material accounting policies and other explanatory information form an integral part of the

standalone financial statements

---

Mar 31, 2023

(1) The amount of non-current investment represents maximum amount of investments outstanding during the year. Further this disclosure also suffice the requirements of Section 186(4) of the Act.

(2) During the year ended 31 March 2023, the Company has exercised the option to convert 2,656 number of 0.01% Convertible Preference Shares (''CPS'') of H10 each of Mister Veg Foods Private Limited, India ("MVFPL") into 2,656 numbers of equity shares of H 10 each in the ratio of 1:1. Further, the Company has also subscribed 3,473 Equity share on Right issue basis for cash consideration of H 21.25 million. After conversion of preference shares into equity shares and acquisition of additional equity shares on Right issue basis, the Company holds 37.98% paid up equity share capital of MVFPL. The shareholder agreement entitles the Company to nominate one Board Member and it also entitles the Company to vote in all the shareholders meetings in proportion to their shareholding, accordingly, this investment is classified and presented as an associate, measured at cost. MVFPL is primarily engaged in the business of food products.

(3) Pursuant to Share Purchase, Subscription and Shareholder''s agreement ("SPSSA") with AMP Energy C&I Private Limited and AMP Energy Green Fifteen Private Limited ("AMP") dated 8 October 2021, the Company has acquired 26.00% stake of AMP, for the purpose of setting up a solar power plant with capacity of 15.5 MW, for captive consumption of power. Pursuant to that, the Company has made investment of H 58.28 million in AMP, representing investment in 582,800 number of Equity shares of H 10 each and 52,452 number of 0.01% Compulsorily Convertible Debenture of H 1,000 each. Further, the Company has also entered into a Power Purchase Agreement (''PPA'') with AMP to procure 100% of the output of solar energy produced for next 20 years as per the rates negotiated in agreement. As per the SPSSA, in the event of termination of the contracts or completion of the PPA term, the Company will receive nominal value of its investment without any share of profit/ loss in the associate. Accordingly, the investment amount has been amortised to give the effect of expected fixed return on such investment due to the difference in agreement rate and existing government grid rates. As the Company has significant influence, the investment has been accounted as investment in associate as per Ind AS 28 "Investments in associates and joint ventures"

(e) Others

During the year ended 31 March 2021, the Company had issued 159,281,139 fully paid-up equity shares of H 1 each to the shareholders of the Jubilant Pharmova Limited, the Demerged Company, for every one fully paid-up equity share of H 1 each held by them in the Demerged Company for consideration other than cash pursuant to the composite scheme of arrangement.

Note 15. Nature and purpose of other equity

• Capital reserve

Accumulated capital reserve not available for distribution of dividend and expected to remain invested permanently.

• Securities premium

The unutilised accumulated balance represents excess of issue price over face value on issue of shares. This reserve is utilised in accordance with the provisions of the Act.

• General reserve

This represents appropriation of profit and is available for distribution of dividend.

• Share options outstanding account

This account used to recognise the grant date fair value of options issued to eligible employees pursuant to the Company''s employee stock option plan.

• Retained earnings

Retained earnings represent the amount of accumulated earnings and re-measurement differences on defined benefit plans recognised in OCI within equity.

16.1 Nature of security of non-current borrowings and other terms of repayment as at 31 March 2023

16.1.1 Indian rupee term loans amounting to H 1,500 million (31 March 2022: H Nil) from Axis Bank Limited is secured by a first pari-passu charge created on entire movable fixed assets of the Company. This is repayable in 14 equal quarterly installments from December 2024.

16.1.2 7.90% NCDs amounting to H Nil million (31 March 2022: H 1,000.00 million) originally repayable in single installment in June 2023 has been early redeemed by full repayment during the year.

16.1.3 Loan from subsidiary is repayable up to five years from the date of respective disbursement and carry interest rate in range from 6.25% to 7.74% (31 March 2022: 6.60%) per annum.

The term loans carry floating interest rate calculated in accordance with the terms of the arrangement which is a specified benchmark rate (reset at periodic intervals), adjusted for agreed spread. During the year ended 31 March 2023, the interest rate on long-term Indian rupees term loans range from 7.65% to 8.25 % per annum (31 March 2022: 6.25% to 7.40% per annum).

16.2 Nature of security of current borrowings and other terms of repayment as at 31 March 2023

16.2.1 Working capital facilities (including cash credit) sanctioned by consortium of banks are secured by a first charge by way of hypothecation, ranking pari-passu inter-se banks, of the entire book debts and receivables and inventories, both present and future, of the Company wherever the same may be or be held. Working capital loans are repayable as per terms of agreement within one year.

16.2.2 Short term loans and working capital facilities are availed in Indian rupees which carry floating interest rate calculated in accordance with the terms of the arrangement which is a specified benchmark rate (reset at periodic intervals), adjusted for agreed spread. During the year ended 31 March 2023, the interest rate on short-term Indian currency loans range from 3.54% to 9.05 % per annum (31 March 2022: 3.15% to 10.20% per annum).

16.3 Assets pledged as security

Assets with following carrying amounts are pledged as collateral/security against loans and borrowings at year end.

(B) Defined benefit plans

i. Gratuity

In accordance with Ind AS 19 "Employee Benefits", an actuarial valuation has been carried out in respect of gratuity. The discount rate is 7.35 % p.a. (31 March 2022: 7.20 % p.a.) which is determined by reference to market yield on Government bonds at the Balance Sheet date.

The retirement age has been considered at 58 years (31 March 2022: 58 years) and mortality table is as per IALM (2012-14) (31 March 2022: IALM (2012-14)). Expected average remaining working lives of employees are 17.51 years (31 March 2022: 16.95 years).

The estimates of future salary increases, considered in actuarial valuation is 10% p.a., for first three years and 6% p.a. thereafter (31 March 2022: 10% p.a. for first three years and 6% p.a. thereafter), taking into account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The plan assets are maintained with Life Insurance Corporation of India in respect of gratuity scheme for certain employees of a unit of the Company. The details of investments maintained by Life Insurance Corporation are not available with the Company, hence not disclosed. The expected rate of return on plan assets is 7.35% p.a. (31 March 2022: 7.20% p.a.).

(C) Risk exposures:

These plans typically expose the Group to the following actuarial risks:

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

Interest rate risk: A fall in the discount rate, which is linked, to the Government Bond rate will increase the present value of the liability requiring higher provision.

Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Reconciliation of opening and closing balances of the present value of the defined benefit obligation:

The following methods/assumptions were used to estimate the fair values:

(a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the short term maturities of these instruments. Further, the fair value disclosure of lease liabilities is not required.

(b) Fair valuation of non-current financial assets has been disclosed to be same as carrying value as there is no significant difference between carrying value and fair value.

(c) Fair value of quoted financial instruments (including listed non-convertible debentures) is based on quoted market price at the reporting date. The fair value of long-term borrowings is estimated by discounting future cash flows using current rates (applicable to instruments with similar terms, currency, credit risk and remaining maturities) to discount the future payouts.

Note 34. Financial risk management

Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

The Company, through three layers of defense namely policies and procedures, review mechanism and assurance aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit committee of the Board of Directors with top management oversees the formulation and implementation of the risk management policies. The risks are identified at business unit level and mitigation plan are identified, deliberated and reviewed at appropriate forums.

The Company has exposure to the following risks arising from financial instruments:

- credit risk (see (i));

- liquidity risk (see (ii)); and

- market risk (see (iii)).

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, loans and investments and other financial assets. The carrying amount of financial assets represents the maximum credit exposure.

Trade receivables and other financial assets

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. Sale limits are established for each customer and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as per policy.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether they are institutional, dealers or end-user customer, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.

As at 31 March 2023 and 31 March 2022, there is no major customer not meeting the credit risk policies of the Company.

Expected credit loss with respect to trade receivables:

With respect to trade receivables, based on internal assessment which is driven by the historical experience/ current facts available in relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company estimates its allowance for trade receivable using lifetime expected credit loss. The balance past due for more than 6 months (net of expected credit loss allowance) is H 20.11 million (31 March 2022: H 5.92 million).

With regards to all financial assets with contractual cash flows, other than trade receivables, management believes these to be high quality assets with negligible credit risk. The management believes that the parties, from which these financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and accordingly no allowance for excepted credit loss has been provided on these financial assets.

ii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company''s treasury department is responsible for managing the short-term and long-term liquidity requirements. Short-term liquidity situation is reviewed daily by the treasury department. Long-term liquidity position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken according to the situation.

iii. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and borrowings are denominated and the functional currency of the Company. The currencies in which the Company is exposed to risk are EUR and USD.

The Company follows a natural hedge driven currency risk mitigation policy, to the extent possible. Any residual risk is evaluated and appropriate risk mitigating steps are planned, including but not limited to, entering into forward contracts and interest rate swaps.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in INR with a mix of fixed and floating rates of interest. The Company has exposure to interest rate risk, arising principally on changes in base lending rate. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate liabilities assuming the amount of the liability outstanding at the year-end was outstanding for the whole year.

If interest rates had been 25 basis points higher or lower and all other variables were held constant, the Company''s profit before tax for the year ended 31 March 2023 would decrease or increase by H 15.02 million (31 March 2022: H 3.23 million). This is mainly attributable to the Company''s exposure to interest rates on its floating rate borrowings.

Note 35. Capital management

(a) Risk management

The Company''s objectives when managing capital are to:

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders; and

• Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

''Net debt'' (total borrowings net of cash and cash equivalents and other bank balances) divided by ''Total equity'' (as shown in the Balance Sheet).

The Board of Directors at their meeting held on 16 May 2023 have recommended a final dividend of H 2.50 (250%) per equity share of H 1 each amounting to H 398.20 million for the year ended 31 March 2023 subject to approval in ensuing Annual General Meeting. During the year ended 31 March 2023, the Company has already declared an interim dividend of H 2.50 per equity share of H 1 each and hence, the total dividend for the year ended 31 March 2023 is amounting to be H 796.40 million i.e. H 5.00 (500%) per equity share of H 1.

Note 36. Segment information Business segments

The CEO and Managing Director of the Company have been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108 "Operating Segments". Operating Segments have been defined and presented based on the regular review by the CODM to assess the performance of each segment and to make decision about allocation of resources. Accordingly, the Company has determined reportable segments by the nature of its products and services, which are as follows:

a. Speciality chemicals: i) Pyridine & Picolines# ii) Fine chemicals iii) Agro chemicals iv) Custom development and manufacturing organisation

b. Nutrition & Health solutions: i) Nutrition and health ingredients ii) Animal and human nutrition health solutions

c. Chemical intermediates*: - i) Acetyls# ii) Speciality ethanol

* The segment earlier presented as "Life science chemicals" has been renamed as "Chemical intermediates"

# During the year ended 31 March 2022, the major product lines earlier presented as "Speciality ingredients" and "Life sciences ingredients" have been renamed as "Pyridine & Picolines" and "Acetyls" respectively.

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

No operating segments have been aggregated to form the above reportable operating segments.

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and not allocable to segments on reasonable basis have been included under ''unallocated revenue or expenses or assets or liabilities''.

Finance costs and fair value gains and losses on certain financial assets are not allocated to individual segments as the underlying instruments are managed on a Company basis.

Borrowings, current taxes, deferred taxes and certain financial assets and liabilities are not allocated to the segments and have been included under ''unallocated assets or liabilities.

During the year ended 31 March 2023 one customer contributed 11.78 % (31 March 2022: 10.71%) to the Company''s revenue.

Note 37. Related Party Disclosures

1. Related parties where control exists or with whom transactions have taken place:

a) Subsidiaries including step-down subsidiaries:

Jubilant Life Sciences (Shanghai) Limited, Jubilant Life Sciences (USA) Inc., Jubilant Infrastructure Limited, Jubilant Life Sciences NV, Jubilant Life Sciences International Pte. Ltd., Jubilant Ingrevia Employee Welfare Trust, Jubilant Agro Sciences Limited (formerly known as Jubilant Crop Protection Limited, w.e.f. 2 June 2021).

b) Enterprise in which certain directors are interested or are in common:

Jubilant Pharmova Limited, Jubilant Biosys Limited, Jubilant Agri and Consumer Products Limited, Jubilant Industries Limited, Jubilant Generics Limited, Jubilant Business Services Limited, Jubilant Enpro Private Limited, Jubilant FoodWorks Limited, Jubilant Consumer Private Limited, PSI Supply NV, Jubilant Pharmaceuticals NV, Jubilant HollisterStier LLC, Jubilant Pharma Holdings Inc., JOGPL Private Limited, Jubilant Therapeutics India Limited, Jubilant Clinsys Limited, Jubilant DraxImage Limited, Jubilant First Trust Healthcare Limited, Jubilant Cadista Pharmaceuticals Inc. Jubilant DraxImage Inc., Jubilant HollisterStier General Partnership, Jubilant FoodWorks International Investments Limited, Hindustan Media Ventures Limited, Jubilant Employees Welfare Trust.

c) Key management personnel (KMP):

Mr. Rajesh Kumar Srivastava, Mr. Anil Khubchandani (w.e.f. 17 May 2022 and upto 19 May 2023), Mr. Anant Pande (upto 17 May 2022), Mr. Prakash Chandra Bisht, Ms. Deepanjali Gulati.

d) Non-executive directors:

Mr. Shyam S. Bhartia, Mr. Hari S. Bhartia, Ms. Sudha Pillai, Mr. Arun Seth, Mr. Sushil Kumar Roongta, Mr. Pradeep Banerjee, Mr. Siraj Azmat Chaudhry, Ms. Ameeta Chatterjee (w.e.f. 17 April 2021).

e) Associates:

Mister Veg Foods Private Limited, AMP Energy Green Fifteen Private Limited (w.e.f. 8 October 2021). f ) Other:

Jubilant Bhartia Foundation

Note 38. Contingent liabilities to the extent not provided for: (i) Claims against the Company, disputed by the Company, not acknowledged as debt:	(J in million)
	As	; at
	31 March 2023	31 March 2022
Central excise (1)	340.74	58.28
Customs (1)	314.91	12.53
Sales tax (2)	97.53	90.25
Income tax (3)	1,680.88	1,813.73
Service tax and goods and services tax (4)	72.50	46.18
State excise (1)	729.63	714.88
Others (5)	235.86	181.11

(1) The central excise, state excise and customs related matters are primarily related to cenvat credit availment, levy of additional fee by the authorities on imports/exports and concessional rate for import duty respectively.

(2) The sales tax related matters are primarily related to short VAT paid on procurement of molasses.

(3) The income tax related contingent liabilities are primarily comprising of transfer pricing matters and also certain corporate tax matters.

(4) The service tax and goods and services tax related matters are primarily related to service tax demands on ocean freights and GST credit availment.

(5) Other matters are primarily related to additional demand for environmental clearances and certain employees related matters. The above mentioned litigations are pending with various courts/authorities.

Future cash outflows in respect of the above matters are determinable only on receipt of judgments/decisions pending at various stages/forums.

The Company believes that none of these matters, either individually or in aggregate, are expected to have any material impact on its financial statements.

(ii) As at 31 March 2023, the Company has outstanding letter of credits amounting to H 15.03 million (31 March 2022: H 569.32 million).

Note 39. Commitments as at year end

a) Capital commitments:

Estimated amount of contracts remaining to be executed on capital account (net of advances) is H 1,391.97 million (31 March 2022: H 1,356.34 million) for property, plant and equipment and H 12.54 million (31 March 2022: H 12.42 million) for intangible assets.

b) Other commitments:

The Company has total commitment for short term leases as at 31 March 2023 is H 1.62 million (31 March 2022: H 1.37 million).

Note 41. Other operating income includes primarily sale of scrap amounting to H 201.22 million (31 March 2022: H 185.43 million) and government grants amounting to H 40.77 million (31 March 2022: H 34.91 million).

Note 42. During the year, finance costs amounting to H 165.10 million (31 March 2022: H 40.53 million) has been capitalised in property, plant and equipment, calculated using capitalisation rate of 6.75% (31 March 2022: 6.11%)

Note 43. Corporate Social Responsibility ("CSR") Expenditure:

(iii) Shortfall at the end of the year: Nil

(iv) Total of previous year''s shortfall: Nil

(v) Reason for shortfall: Not applicable

(vi) Nature of CSR activities: The CSR activity focus areas are health, education and livelihood to improve the quality of the life of the community around the manufacturing locations.

(vii) Details of related party transactions: Refer note 37

(viii) Where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the year should be shown separately: Not applicable

Note 44.(i) The Company has not advanced or loaned or invested funds to any person or any entity, including foreign entities (intermediaries) with the understanding that the intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by a or on behalf of the Company (ultimate beneficiaries); or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(ii) The Company has not received any fund from any person or any entity, including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by a or on behalf of the funding party (ultimate beneficiaries); or

(b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

Note 45. The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income-tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the specified domestic transactions entered into with the specified persons and the international transactions entered into with the associated enterprises during the financial year and expects such records to be in existence before the due date of filing of income tax return. The management is of the opinion that its specified domestic transactions and international transactions are at arm''s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

Note 46. Employee stock option scheme

The Company has a stock option plan in place namely "Jubilant Ingrevia Employees Stock Option Plan 2021" ("Plan 2021").

The Nomination, Remuneration and Compensation Committee (''Committee'') of the Board of Directors (''Board'') which comprises a majority of Independent Directors is responsible for administration and supervision of the Stock Option Plan.

Under Plan 2021, up to 1,500,000 Stock Options can be issued to eligible directors (other than promoter directors and independent directors) and other specified categories of employees of the Company / subsidiaries.

Note 51. Previous year figures have been regrouped/ reclassified to conform to the current year''s classification.

The accompanying notes, including summary of significant accounting policies and other explanatory information form an integral part of the standalone financial statements

---

Mar 31, 2021

Others

The Company has issued 159,281,139 fully paid-up equity shares of '' 1 each to the shareholders of the Demerged Company, for every one fully paid-up equity share of '' 1 each held by them in the Demerged Company for consideration other than cash pursuant to the Composite Scheme (refer note 32).

Note 15. Nature and purpose of other equity

• Capital reserve

Accumulated capital reserve not available for distribution of dividend and expected to remain invested permanently.

• Securities premium ¹

The unutilised accumulated balance represents excess of issue price over face value on issue of shares. This reserve is utilised in accordance with the provisions of the Act.

• General reserve ¹

This represents appropriation of profit and is available for distribution of dividend.

16.1 Nature of security of non-current borrowings and other terms of repayment

16.1.1 Indian rupee term loans amounting to '' 4,478.13 million (31 March 2020: '' Nil) from The Hongkong and Shanghai Banking Corporation Limited, ICICI Bank Limited and Non-convertible debentures amounting to '' 1,000.00 million (31 March 2020: '' Nil) are secured by a first pari-passu charge created amongst the lenders by way of:

1) First pari passu charge on all the immovable property, plant and equipment owned by the Company, situated at

Bhartiagram, Tehsil Dhanora, District Amroha, Uttar Pradesh, India (“Immovable Secured Assets”), but excluding the immovable property, plant and equipment described in (A) below (“Excluded Immovable Assets”). The details of the Immoveable Secured Assets charged/mortgaged to secure the facilities is more particular described in (B) below.

A. Excluded immovable assets:

(1) Land measuring 90,124.24 square meters together with all the buildings and structures thereon situated in the revenue estate of Village Naipura Khadar and Tigariya Bhoor, Tehsil Dhanora, District Amroha, Uttar Pradesh, India, which land is covered under common title deeds with other group companies of the Company;

(2) Land measuring 5.56 acres (equivalent to 2.253 hectares) together with all the buildings and structures thereon situated in the revenue estate of Village Fazalpur Gosai, Tehsil Dhanora, District Amroha, Uttar Pradesh, India; and

(3) Leasehold land, being plot no. A-4/2 measuring 157,509 square meters, together with all the buildings and structures thereon situated in UPSIDC Industrial Area II, Gajraula, Tehsil Dhanora, District Amroha, Uttar Pradesh, India, which land is covered under common lease deed with other group companies of the Company;

B. Immovable secured assets:

(1) Land admeasuring 32.77 Acres or 13.268 Hectares situated in the revenue estate of Village Naipura Khader, Tehsil Hasanpur (now Pargana and Tehsil Dhanora), District Moradabad (now District Amroha), Uttar Pradesh, together with buildings and structures thereon and all plant and equipment attached to the earth or permanently fastened to anything attached to the earth;

(2) Land admeasuring 154.28 Acres or 62.448 Hectares situated in the revenue estate of Village Tigariya Bhoor, Tehsil Dhanera, District Amroha, Uttar Pradesh, together with buildings and structures thereon and all plant and equipment attached to the earth or permanently fastened to anything attached to the earth;

(3) Land admeasuring 95.46 Acres or 38.648 Hectares situated in the revenue estate of Village Shahbajpur Dor, Tehsil and Pargana Hasanpur (now Dhanera), District Amroha (early in Moradabad), Uttar Pradesh, together with buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth;

(4) Land admeasuring 28.904 Hectare or 71.39 Acres, situated in the revenue estate of Village Rasoolpur Khader, Tehsil Dhanaura, District Moradabad (now District Amroha), Uttar Pradesh, together with buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth;

(5) Land admeasuring 48,576 square meters or 12 Acres or 4.856 Hectares situated in the revenue estate of Villages Sadullapur, Naipura Khadar, Sahabazpur Dor, Tehsil Hasanpur (now Pargana and Tehsil Dhanora), District Amroha, Uttar Pradesh, together with buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth.

2) First pari passu charge over entire movable property, plant and equipment of the Company, both present and future.

3) First pari passu charge over the land and building of the office premises located at 1A, Sector 16A, Noida- Uttar Pradesh-201301.

16.1.2 Indian rupee term loan amounting to '' 3,128.13 million (31 March 2020: '' Nil) from ICICI Bank Limited is repayable in 15 structured quarterly installments from June 2021.

16.1.3 Indian rupee term loan amounting to '' 1,350.00 million (31 March 2020: '' Nil) from The Hongkong and Shanghai Banking Corporation Limited is repayable in 16 equal quarterly installments from April 2021.

16.1.4 7.90% Non-convertible debentures amounting to '' 1,000.00 million (31 March 2020: '' Nil) are repayable in single installment in June 2023.

16.1.5 Refer note 32 for borrowing transferred from Jubilant Pharmova Limited pursuant to the Composite Scheme.

The term loans carry floating interest rate calculated in accordance with the terms of the arrangement which is a specified

benchmark rate (reset at periodic intervals), adjusted for agreed spread. During the year ended 31 March 2021, the interest

rate on long-term Indian currency loans from 6.25% to 7.20 % per annum.

16.2 Nature of security of current borrowings and other terms of repayment

16.2.1 Working capital facilities (including cash credit) sanctioned by consortium of banks and notified financial institutions are secured by a first charge by way of hypothecation, ranking pari-passu inter-se banks, of the entire book debts and receivables and inventories, both present and future, of the Company wherever the same may be or be held. Working capital loans are repayable as per terms of agreement within one year.

16.2.2 Short term loans are availed in Indian rupees and in foreign currency which carry floating interest rate calculated in accordance with the terms of the arrangement which is a specified benchmark rate (reset at periodic intervals), adjusted for agreed spread. During the year ended 31 March 2021, the interest rate on short-term Indian currency loans range from 7.50% to 8.65% per annum.

There are no micro, small and medium enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at the end of year. The information as required to be disclosed in relation to micro, small and medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

The Board of Directors of the Company at its meeting held on 24 October 2019 had approved the Composite Scheme of Arrangement (“Composite Scheme”) for amalgamation of certain promoter controlled entities into Jubilant Pharmova Limited (“JPM”), the Demerged Company and demerger of the Life Science Ingredients business (“LSI business”) into the Company, which was subsequently filed with National Company Law Tribunal (“NCLT”).

The Composite Scheme was approved by Honourable NCLT, Allahabad Bench vide its order dated 23 December 2020 (formal order received on 6 January 2021).

The said NCLT order was filed with the Registrar of Companies (“ROC”) by the Company and the Demerged Company on 1 February 2021 thereby making the Composite Scheme effective. In terms of the Composite Scheme, all assets and liabilities of the LSI business of the Demerged Company were transferred and vested into the Company on 1 February 2021, being the Demerger Appointed Date.

Accounting of transfer of LSI business as per approved Composite Scheme:

(i) The assets and liabilities pertaining to the LSI business, transferred to and vested in the Company pursuant to the Composite Scheme are recorded at their respective carrying values as appearing in the books of the Demerged Company.

(ii) The Company issued 159,281,139 fully paid-up equity shares of '' 1 each to the shareholders of the Demerged Company, for every one fully paid-up equity share of '' 1 each held by them in the Demerged Company.

(iii) The pre-demerger shareholding of the Demerged Company in the Company comprising of 500,000 fully paid-up equity shares of '' 1 each, was cancelled.

(iv) The share capital account has been credited with the aggregate face value of the shares issued to the shareholders pursuant to the Composite Scheme and the difference has been accounted in appropriate reserves within “Other equity”.

Note 32 (b). The Statement of Profit and Loss and Statement of Cash Flows of the Company includes figures of LSI business comprising two months of operations effective 1 February 2021. Further, in order to present the actual scale of operation of the LSI business for financial year ended 31 March 2021 and 31 March 2020, the management has presented, in addition to, the standalone financial statement of the Company comprising two months of operations effective 1 February 2021, standalone financial information of the demerged LSI business till 31 January 2021 and for the year ended 31 March 2020. The said financial information for the period 1 April 2020 to 31 January 2021 and year ended 31 March 2020, has been extracted from the disclosure in the audited financial results of the Demerged Company, for the year ended 31 March 2021, which has not been seDaratelv subject to audit or review and has been presented as ''unaudited'' supplementary information, as below:

(B) Defined benefit plans

i. Gratuity

In accordance with Ind AS 19 “Employee Benefits”, an actuarial valuation has been carried out in respect of gratuity. The discount rate assumed is 6.80% p.a. (31 March 2020: Not applicable (NA)) which is determined by reference to market yield at the Balance Sheet date on Government bonds. The retirement age has been considered at 58 years (31 March 2020: NA) and mortality table is as per IALM (2012-14) (31 March 2020: NA).

The estimates of future salary increases, considered in actuarial valuation is 10% p.a. for first three years and 6% p.a. thereafter (31 March 2020: NA), taking into account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The plan assets are maintained with Life Insurance Corporation of India in respect of gratuity scheme for certain employees of a unit of the Company. The details of investments maintained by Life Insurance Corporation are not available with the Company, hence not disclosed. The expected rate of return on plan assets is 6.80% p.a. (31 March 2020: NA).

(a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the short term maturities of these instruments. Further, the fair value disclosure of lease liabilities is not required.

(b) Fair valuation of non-current financial assets has been disclosed to be same as carrying value as there is no significant difference between carrying value and fair value.

(c) Fair value of quoted financial instruments (including listed non-convertible debentures) is based on quoted market price at the reporting date. The fair value of other long-term borrowings is estimated by discounting future cash flows using current rates (applicable to instruments with similar terms, currency, credit risk and remaining maturities) to discount the future payouts.

There are no transfers between Level 1, Level 2 and Level 3 during the year ended 31 March 2021 and for the period 23 October 2019 to 31 March 2020.

Note 35. Financial risk management

Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

The Company, through three layers of defense namely policies and procedures, review mechanism and assurance aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit committee of the Board with top management oversees the formulation and implementation of the risk management policies. The risks are identified at business unit level and mitigation plan are identified, deliberated and reviewed at appropriate forums.

The Company has exposure to the following risks arising from financial instruments:

- credit risk (see (i));

- liquidity risk (see (ii)); and

- market risk (see (iii)).

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, loans and investments. The carrying amount of financial assets represents the maximum credit exposure.

Trade receivables and other financial assets

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. Sale limits are established for each customer and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as per policy.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether they are institutional, dealers or end-user customer, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.

As at 31 March 2021 and 31 March 2020, there is no major customer in terms of credit risk for the Company.

Expected credit loss with respect to trade receivables:

With respect to trade receivables, based on internal assessment which is driven by the historical experience/ current facts available in relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company estimates its allowance for trade receivable using lifetime expected credit loss. The balance past due for more than 6 month (net of expected credit loss allowance) is '' 22.43 million (31 March 2020: '' Nil).

Expected credit loss with respect to other financial asset:

With regards to all financial assets with contractual cash flows, other than trade receivables, management believes these to be high quality assets with negligible credit risk. The management believes that the parties, from which these financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and accordingly no allowance for excepted credit loss has been provided on these financial assets. Break up of financial assets other than trade receivables have been disclosed in Balance Sheet.

ii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company''s treasury department is responsible for managing the short-term and long-term liquidity requirements. Short-term liquidity situation is reviewed daily by the treasury department. Long-term liquidity position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken according to the situation.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted and exclude the impact of netting agreements.

Hi. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and borrowings are denominated and the functional currency of the Company. The currencies in which the Company is exposed to risk are EUR and USD.

The Company follows a natural hedge driven currency risk mitigation policy, to the extent possible. Any residual risk is evaluated and appropriate risk mitigating steps are planned, including but not limited to, entering into forward contracts and interest rate swaps.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in INR with a mix of fixed and floating rates of interest. The Company has exposure to interest rate risk, arising principally on changes in base lending rate. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate liabilities assuming the amount of the liability outstanding at the year-end was outstanding for the whole year.

If interest rates had been 25 basis points higher / lower and all other variables were held constant, the Company’s profit before tax for the year ended 31 March 2021 would decrease / increase by '' 11.20 million (31 March 2020: '' Nil). This is mainly attributable to the Company’s exposure to interest rates on its floating rate borrowings.

Note 36. Capital management

(a) Risk management

The Company''s objectives when managing capital are to:

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

Business Segments

The Chairman, Co-Chairman and CEO & Managing Director of the Company have been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108 “Operating Segments”. Operating Segments have been defined and presented based on the regular review by the CODM to assess the performance of each segment and to make decision about allocation of resources. Accordingly, the Company has determined reportable segments by the nature of its products and services, which are as follows:

a. Speciality Chemicals - i) Speciality ingredients ii) Fine chemicals iii) Crop protection chemicals iv) Custom development and manufacturing organisation

b. Nutrition & Health Solutions - i) Nutrition & health ingredients ii) Animal nutrition & health solutions iii) Human nutrition & health solutions

c. Life Science Chemicals - i) Life science ingredients ii) Speciality ethanol

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

No operating segments have been aggregated to form the above reportable operating segments.

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and not allocable to segments on reasonable basis have been included under ‘unallocated revenue / expenses / assets / liabilities’.

Finance costs and fair value gains and losses on certain financial assets are not allocated to individual segments as the underlying instruments are managed on a Company basis.

Borrowings, current taxes, deferred taxes and certain financial assets and liabilities are not allocated to the segments and have been included under ‘unallocated assets / liabilities’.

1. Related parties where control exists or with whom transactions have taken place:

a) Holding Company:

Jubilant Pharmova Limited (up to 31 January 2021).

b) Subsidiaries including step-down subsidiaries*:

Jubilant Life Sciences (Shanghai) Limited, Jubilant Life Sciences (USA) Inc., Jubilant Infrastructure Limited, Jubilant Life Sciences NV, Jubilant Life Sciences International Pte. Ltd., Jubilant Ingrevia Employee Welfare Trust.

* W.e.f. 1 February 2021 (refer note 32)

c) Key management personnel (KMP) and related entities:

Mr. Rajesh Kumar Srivastava (w.e.f. 6 February 2021), Mr. Anant Pande (w.e.f. 6 February 2021), Mr. Prakash Chandra Bisht (w.e.f. 16 February 2021), Ms. Deepanjali Gulati (appointed w.e.f. 4 August 2020).

Jubilant Biosys Limited, Jubilant Industries Limited, Jubilant FoodWorks Limited, Jubilant Agri and Consumer Products Limited, Jubilant Generics Limited, Jubilant Pharmova Limited (w.e.f. 1 February 2021), Jubilant Business Services Limited, Jubilant Enpro Private Limited, Jubilant Consumer Private Limited, PSI Supply NV, Jubilant Pharmaceuticals NV.

Future cash outflows in respect of the above matters are determinable only on receipt of judgments/decisions pending at various stages/forums.

Additionally, the Company is involved in other disputes, lawsuits, claims, governmental and/or regulatory inspections, inquiries, investigations and proceedings, including commercial matters that arise from time to time in the ordinary course of business.

The above does not include all other obligations resulting from claims, legal pronouncements having financial impact in respect of which the Company generally performs the assessment based on the external legal opinion and the amount of which cannot be reliably estimated.

The Company believes that none of these matters, either individually or in aggregate, are expected to have any material adverse effect on its financial statements.

a) Capital commitments:

Estimated amount of contracts remaining to be executed on capital account (net of advances) is '' 454.31 million (31 March 2020: '' Nil) for property, plant and equipment.

b) Other commitments:

i) Export obligation under advance license scheme on duty free import of specific raw materials, remaining outstanding is '' 58.09 million (31 March 2020: '' Nil).

ii) As on 31 March 2021, the Company has made commitment to acquire additional voting rights of 13.71% at the cost of '' 21.25 million in MVFPL, an associate company, which will provide total voting rights of 34.70% to the Company.

(d) Items of immovable properties, primarily land parcels (included under right-of-use assets) as listed in Schedule 1 of the Composite Scheme, were transferred to the Company with effect from 1 February 2021 pursuant to the said Composite Scheme (refer note 32). The Company is in process of getting the underlying lease deeds of the aforesaid immovable properties transferred/registered in its name.

Note 42. The Company has outstanding government grants related to export benefits amounting to '' 146.30 million (31 March 2020: '' Nil). Further, the Company has recognised Government grant amounting to '' 6.88 million (31 March 2020: '' Nil) in Statement of Profit and Loss.

Note 43. During the year, finance costs amounting to '' 3.41 million (31 March 2020: '' Nil) has been capitalised in property, plant and equipment, calculated using capitalisation rate of 6.61% (31 March 2020: '' Nil)

Note 44. Exceptional items consist of property, plant and equipment written off on account of obsolescence amounting to '' 129.44 million.

Note 45. On 2 June 2021, the Company has incorporated a wholly owned subsidiary namely Jubilant Crop Protection Limited with a paid-up capital of '' 1 lakh.

Note 47. Figures for the current year ended 31 March 2021 are not comparable with previous period since the standalone financial statements include figures of Life Science Ingredients business effective 1 February 2021 (refer note 32). Further, previous year figures have been regrouped/ reclassified to conform to the current year’s classification.

The accompanying notes form an integral part of the standalone financial statements

1

Retained earnings ¹

Retained earnings represent the amount of accumulated earnings and re-measurement differences on defined benefit plans recognised in OCI within equity.