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E.I.D. - Parry (India) Limited Regd. Office: Dare House, 234, N.S.C. Bose Road, Parrys Corner, Chennai- 600 001, India. Tel: 91 44 25306789 Fax: 91 44 25341609 / 25340858 CIN: L24211TN1975PLC006989

Website: www.eidparry.com

August 21, 2021

The Secretary The Secretary National Stock Exchange of India Limited BSE Ltd. Capital Market – Listing, Exchange Plaza, 5[th] Floor, 25[th] Floor, Phiroze Jeejeebhoy Towers Plot No. C/1, G Block, Bandra-Kurla Complex, Dalal Street, Fort Bandra (E), Mumbai 400 051 Mumbai 400 001

NSE SCRIP CODE: EIDPARRY

BSE SCRIP CODE: 500125

Dear Sir,

Sub: Notice of the 46[th] annual general meeting and Annual Report for the financial year 2021-22

Ref: ISIN - INE126A01031

We wish to inform you that the 46[th] Annual General Meeting (AGM) of the Company will be held on Thursday, September 16, 2021 at 3.30 p.m. IST through Video Conference (VC) .

Pursuant to Regulation 34(1) of Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), we submit herewith a copy of Annual Report of the Company along with the Notice of AGM. The copies of annual report and AGM notice have been sent today to all the shareholders whose email IDs have been shared by the Depositories as per the details registered with their Depository Participant/s (DPs) / KFin Technologies Private Limited (KFin), the Registrar and Share Transfer Agent (RTA) for the Company. The documents are also uploaded in the websites of theCompany, www.eidparry.com and RTA: https://evoting.kfintech.com/Public/Downloads.as px.

The Company has engaged KFin for providing E-voting services and VC/OAVM facility for this AGM. Details of e-voting are as follows:

	Cut-off date for determining eligibility for the remote e-voting& e-votingat the AGM	Thursday, 9thSeptember, 2021
	E-Votingstart date and time	Sunday, 12thSeptember,2021 (9:00 a.m. IST)
	E-Voting end date and time	Wednesday, 15thSeptember, 2021 (5:00 p.m. IST)

The Company is providing Video Conference facility through KFin platform for the members to participate in the AGM. Members may access the facility at https://emeetings.kfintech.com/ through the existing login credentials provided to them for e-voting. Further, the detailed instruction for e-voting, participation in the AGM through VC and remote e-voting have been provided in the notice of the AGM.

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The Company vide newspaper publication dated August 16, 2021 had informed the shareholders including those who are yet to register their e-mail addresses with their DPs or RTA about the registration process for receipt of annual report, AGM notice and login credentials for participation in the AGM through VC.

We request you to kindly take the above on record.

Thanking you,

Yours faithfully,

For E.I.D.- PARRY (INDIA) LIMITED

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Biswa Mohan Rath

Company Secretary

Encl.: a/a

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Corporate Overview

Management Reports Financial Statements

Harvesting Value

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Annual Report 2020-21

Corporate Overview Harvesting Value 01 Managing Director’s message 04 Board of Directors 06

Keeping cane at the core 08 12 Weaving flexibility across adjacencies Many shades of white 16 More Nutra is the new normal 20 Assets ought to earn 24 Corporate Information 30

Management Reports Notice 31

Boards’ Report & Management Discussion & Analysis 40 Report on Corporate Governance 83 Business Responsibility Report 101

Financial Statements

Standalone Financial Statements 115 Consolidated Financial Statements 189

Corporate Overview Management Reports Financial Statements

Harvesting Value

EID Parry remained resilient and continued to harvest value from its sugar and nutraceutical business, and its adjacencies. We exhibited improved performance even in a relatively difficult business environment riddled with market slowdown, regulatory and lockdown restrictions. Amidst the stock holding restrictions and a subdued selling price, our sugar business continued to sharpen its focus on process efficiencies, cost optimisation, strong commitment and delivery on the retail front. Moreover, we harvested value by achieving margin expansion by focusing on cost-effectiveness, continuous cost reduction and scaling up our manufacturing and other efficiencies on the back of healthy volume growth, strong product portfolio and market development. The lower interest cost, better realisation from sugar retail sales and alcohol sales also aided in enhancing our bottom line. Our focus continues to lie in strengthening the large farming community through our Cane R&D and aiding sustainable sources of livelihood to the farmers.

Moreover, with sustained profitable growth being our focal point, we are working on further enhancing our brand portfolio. Our brand strategy is enabled by innovation and entails ingenuity for the future.

We continue to expand our market presence in the retail space, and increase our customer base in our existing core portfolio through improved innovation and increased penetration of Parry’s Jaggery, Parry’s Amrit Brown Sugar, Parry’s Sweet Care Low GI Sugar and other value-added products along with an efficient supply chain and distribution network.

We have incorporated synergy in all our functions and continue to derive sustainable benefits from new products and processes.

With the existing distilleries at Nellikuppam, Haliyal and Sankili and the commissioning of a new distillery at Bagalkot to grow the ethanol stream, focus on cane development and value creation through by- products as well as a strong retail foray and leveraging our nutraceutical segment, we are all set to stay our course and harvest better value from our core and non-core assets.

Financial Highlights Ten Years at a Glance

Standalone

` Lakh

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Particulars 2011-12 2012-13 2013-14 2014-15 2015-16# 2016-17 2017-18 2018-19 2019-20 2020-21
Profitability Items
Gross Income 175364 241448 194548 226504 278559 263121 228169 204644 201557 240965
Gross Profit (PBDIT) 27447 60562 26237 38918 15751 50867 30521 41421 23518 133561^
Depreciation & 7397 10787 9731 10193 11200 11211 11446 11377 11956 20436
Amortisation
Profit/(Loss) before 20050 49775 16506 28725 4551 39656 19075 30044 11562 115111
Interest & Tax
Finance costs 6,443 13668 19616 15127 16710 13991 11290 11343 13566 9272
Profit/(Loss) Before Tax 13607 36107 (3110) 13598 (12159) 25665 7785 18701 (2004) 105839
Tax (125) 2936 (5763) (1227) (2948) (2696) (2316) 2388 (2187) 19353
Profit/(Loss) after Tax 13732 33171 2653 14825 (9211) 28361 10101 16313 183 86486
Balance Sheet Items
Net Fixed Assets 80876 128652 152515 149968 157806 148816 139584 133561 137771 129535
Investments 68278 87110 54478 68293 77432 78575 87831 97851 100341 101018
Net Current Assets 63604 104089 106014 83987 25359 8539 31370 17705 29465 96810
Total Capital Employed 212758 319851 313007 302248 260597 235930 258785 249117 267577 327363
Shareholders Funds 121223 134162 127432 136408 128276 147746 163813 171350 171375 259409
Borrowings 78971 172309 178559 160211 131941 94346 101800 83229 103499 55436
Deferred Tax Liability/ 12564 13380 7016 5629 380 (6162) (6828) (5462) (7297) 12518
(Asset)
Total 212758 319851 313007 302248 260597 235930 258785 249117 267577 327363
Ratios
Book Value per share 70 77 73 78 73 84 93 97 97 146
() EPS () 7.92 19.08 1.51 8.43 (5.21) 16.03 5.70 9.21 0.10 48.86
Dividend on Equity % 400 600 - 300 - 400 300 300 - -
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Regrouped based on Ind AS.

includes profit on sale of bio-pesticides division and investment in Parry America of ` 243.93 Crore.

^ includes profit on sale of 4% stake in Coromandel International Limited of ` 827.25 Crore.

Notes : -

Haliyal and Sankili units of Parrys Sugar Industries Limited was merged with effect from April 1, 2012.
Sadashiva Sugars Limited was merged effective April 1, 2013.
Parry Phytoremedies Private Limited was merged effective April 1, 2014.
Parrys Sugar Industries Limited was merged with effect from April 1, 2016.

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Cane crush (LMT)

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36.72 37.00 36.72 39.69
FY18 FY19 FY20 FY21
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Recovery%

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10.04 10.12 9.99 10.28
FY18 FY19 FY20 FY21
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Sugar Sold (LMT)
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3.85 4.04 3.72 4.00
FY18 FY19 FY20 FY21
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Sugar Produced (LMT)

Cogen Units Sold (LU)

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4.96 3.76 3.61 3.92
1,857 1,636 1,871 2,069
FY18 FY19 FY20 FY21
FY18 FY19 FY20 FY21
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Cogen Units Produced (LU)

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3,510 3,274 3,572 3,766
FY18 FY19 FY20 FY21
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Alcohol Sold (LL)

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609 662 627 594
FY18 FY19 FY20 FY21
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Alcohol Produced (LL)

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664 647 634 633
FY18 FY19 FY20 FY21
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Annual Report 2020-21

Managing Director’s Message

Dear Shareholder,

As we usher in a new financial year, I am motivated to quote Jodi Picoult‘s famous quote, “The human capacity for burden is like bamboo – far more flexible than you’d ever believe at first glance". The quote resonates well with the current times where we are all stuck in the middle of the pandemic and have exhibited sheer grit and resilience in facing the crisis.

It has been more than a year now that covid-19 has been wreaking havoc the world over and we are still fighting it in phases; the first wave, the second and may be the third yet to come. The pandemic has brought upon us emotional, physical, social and economic distress and even though the return of normalcy is still hidden behind the hazy clouds of unpredictability, we have not given up as a collective human race. The invention of vaccines and steady adoption of new normal is a testimony that humanity is capable of facing all the challenges head-on and is a master of adaptability.

We, at EID Parry, have become all the more resilient and the manner in which the unprecedented event that panned out last year, I believe has further strengthened our resolve to become a company that can continue to be growth and profit oriented. Despite a difficult 2020-21, with a shaky economic condition, hindered market growth, disrupted supply chain and operations, we have managed to stay the course. Our Sugar business improved during the year and in the middle of the disruption it has exhibited a better performance.

We exhibited a strong resilience by focusing on process efficiencies, cost optimisation and strong commitment and delivery on the retail front. We prepared ourselves meticulously and seeing the situation, we emphasised on savings and scaled up our efficiencies. We also worked on gaining a healthy volume growth and building up a strong portfolio of our products and focused on market development. Our deliberate focus on improving efficiencies in the systems and processes, lowering interest cost, and better realisation from sugar retail sales and alcohol sales helped us in enhancing the Company’s bottom line. We also managed

to exhibit healthy and consistent volume growth, which is a testimony of our resilience and strength.

We, EID Parry, have been pivotal in empowering the cane farmers and improving their social well being and building a long-term growth platform for the farming community, who are one of our biggest stakeholders. Over the years, we have supported the farmer with sustainable sourcing and sustainable livelihood. Your Company has also strengthened its R&D and has revved up its technological wing with the latest technological know -how and innovation, which will help your company attain sustainable growth and become an undisputed leader in the said domain. Moreover, our customer-centric approach has made us to create a niche for ourselves and helped our iconic brand ‘Parry’ to develop a greater brand resilience. We have also succeeded in creating better penetration for Parry’s Jaggery and Parry’s Amrit Brown Sugar and developing an efficient supply chain and distribution network.

The year 2020-21, was marked by the launch of Parry’s Sweet Care, a low GI Sugar aimed at catering to the need of the health-conscious consumer segment. In addition, we also started to harvest value from the Nutraceuticals business, and our adjacencies apart from sugar. Under the Nutraceuticals segment, our products like Spirulina, Astaxanthin, and Chlorella are well-received among the health-conscious community the world over. As far as Spirulina and Chlorella are concerned, both helped us to gain a leadership position with our superlative product quality and timely scientific interventions and investments.

The last few years were marked by our decision to close some of our unviable operations in TN and Puducherry due to the non-availability of adequate cane. We decided to shift some of our capacities to the high cane growing areas of Karnataka which should augur well to utilize the capacities in a productive manner in the years to come. Your company has embarked on its journey of building and leveraging the brand Parry and is in the process of delighting the consumers with differentiated value added products. We believe that the business need not have to manufacture sugar to sell sugar

Corporate Overview Management Reports Financial Statements

and there is enormous opportunity available in this untapped space, which we will be exploring with our solid foundation of brand and quality. While we have done well, we can do better. We are inspired to embrace more ambitious opportunities to expand our business.

Right from strengthening our Sugar business in terms of the upgradation of the existing distilleries at Nellikuppam, Haliyal and Sankili, the commissioning of a new distillery at Bagalkot to grow the ethanol stream, along with focusing on increasing the higher recovery cane, leveraging our Nutraceutical segment and expanding consumer-centric product portfolio, your company has left no stone unturned to strengthen its position and stand its ground as one of the leaders and pioneers in the industry.

At this point in time, I take the privilege to express my gratitude to our stakeholders, farmer community and our employees and their families who continue to stay with us and extend their full support to us.

I extend my special thanks to our shareholders who stood firm with us and put their trust in our capabilities.

Your Company continues to look forward to your encouragement and support in this difficult time of the pandemic and prays for your safety and health.

Stay Safe,

Yours Faithfully

S.Suresh Managing Director

Annual Report 2020-21

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Board Of Directors

Mr. V. Ravichandran, Chairman

Mr. V. Ravichandran is a Non-Executive Non-Independent Director and has over three decades of experience in several spheres including Finance, Strategy, Marketing, General Management, and Governance. Mr. Ravichandran holds a bachelor’s degree in Engineering and a Post Graduate Diploma in Management from the Indian Institute of Management, Ahmedabad. He is also a qualified Cost Accountant and Company Secretary. He has served the Murugappa Group for the past 30+ years. In 1994 he moved to Farm Inputs Division of E.I.D Parry as General Manager – Pesticides and consequent to the demerger of Farm Inputs Division into Coromandel Fertilizers Limited in 2003, he assumed the role of Vice-President. He has also been the Managing Director of Coromandel International Limited from 2006 to 2013 and served the Board of several Companies.

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Mr. S. Suresh, Managing Director

Mr. S. Suresh is an Executive, Non – Independent Director and has been associated with the Murugappa Group since August 2014. He is a Mechanical Engineering Graduate with a Post Graduate Diploma in Industrial Engineering and an MBA with specialization in Finance. He has 31 years of experience across different industries in handling SBUs and also in the functional areas of Sales, Marketing, Manufacturing, Industrial Relations, Supply Chain, Management of Special Projects, Industrial Engineering and business turnarounds. He is also the Managing Director of Parry Sugars Refinery India Private Limited, a subsidiary of E.I.D. Parry

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Mr. Ajay B Baliga, Director

Mr. Ajay B Baliga, is an Independent Director. He holds a B.Tech in Chemical Engineering from the University of Madras. He is a veteran supply chain and manufacturing professional. He has over 38 year’s experience in the Alcohol Industry. He is the Chairman of Nomination and Remuneration Committee of the Board of E.I.D. Parry.

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

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Mr. V. Manickam, Director

Mr. V. Manickam is an Independent Director. He is a Chartered Accountant cum insolvency professional and has put in more than 29 years of service in the Life Insurance Corporation of India in various notable capacities. He retired as Managing Director and CEO of LIC Pension Fund Ltd and served as the Secretary-General of Life Insurance Council till Mrch,2020.He joined the Board of E.I.D-Parry (India) Limited the year 2013 and is the Chairman of the Audit committee and Corporate Social Responsibility Committee of the Board of E.I.D. Parry.

Mr. Ramesh K B Menon, Director

Mr. Ramesh K B Menon is a Non-Executive Non-Independent Director. He is a Science graduate from Jaihind College, Mumbai and an alumnus of XLRI, Jamshedpur. Prior to joining the Board of Coromandel, Mr. Menon led the Group’s HR function and was actively involved in the development of business strategy, supervision for business results and governance as Executive Director-HR in the Murugappa Corporate Advisory Board (MCAB). He also served as Lead Director of the Diversified Businesses of the Murugappa Group and had been the Member of MCAB for seven years. Mr. Menon earlier worked as the Director-HR of Coats, South Asia, with a career spanning 26 years in key HR leadership assignments across regions before joining the Murugappa Group. He is currently on the Boards of Coromandel International Limited, Parry Agro Industries Limited, Parry Murray & Company Limited, UK and Ambadi Enterprises Limited.

Dr. R. cā Godbolé, Director

Dr. (Ms) R.cā Godbolé is an Independent Director. She is a trained plant molecular biologist. She has a postgraduate degree in Bio-Chemistry from the University of Bombay and a Ph.D. from Freiburg, Germany. She has held Post Doctoral positions at the Heidelberg Institute of Plant Sciences and TU Munich. She has worked as a Scientist with Syngenta Seeds (India) Limited, and was involved in various research aspects of the seed business. She is a co-founder of an Agtech firm SaliCrop in Israel, commercializing her technology which enables crops to cope with abiotic stresses better. She Joined the Board of E.I.D. – Parry (India) Limited in November 2015.

Mr. M. M. Venkatachalam, Director

Mr. M. M. Venkatachalam is a Non-Executive Non-Independent Director. He is a graduate from the University of Agricultural Sciences, Bangalore and holds a Master’s Degree in Business Administration from George Washington University, USA. Mr. Venkatchalam has held senior positions in the Murugappa Group of Companies spanning a period of two and a half decades. He is presently the Chairman of Parry Agro Industries Limited. He also serves on the Boards of The Ramco Cements Limited, Ramco Systems Limited, Coromandel Engineering Company and Coromandel International Limited. He has a keen interest in conservation and volunteers time to the Nature Conservation Foundation and the Madras Crocodile Bank Trust.

Mr. T. Krishnakumar, Director

Mr. T. Krishnakumar is an Independent Director. He holds BE (Hons) from the College of Engineering, Guindy. He has done his Post-Graduate Diploma in Management (MBA) from the Indian Institute of Management, Bangalore and also Advanced Management Program from The Wharton School, USA. He has over 38 years of rich experience with leading, reputed companies like Asian Paints, Henkel India, Murugappa group, IFFCO group (Tiffany) UAE, Johnson & Johnson and Hindustan Coca-Cola Beverages Pvt. Ltd. in various spheres, including General management, strategy, marketing, sales, distribution, supply chain, team building and governance. He was the Chairman and CEO of Hindustan Coca-Cola Beverages Pvt. Ltd., India and also the Chairman of Coca-Cola India Pvt. Ltd.

Annual Report 2020-21

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Keeping cane at the core

Cane is the core of our business. More cane is more sugar, more bagasse. More sucrose is more sugar, more molasse, more alcohol. More research is more value to farmers and everyone else. More cane development is more farmer stickiness, more and better cane availability. At EID, we are amplifying our cane development play in a very holistic and sustained manner.

Development of Cane forms the soul of EID Parry’s business and to support that we are relentlessly working on breeding and development of good varieties of cane. Our research and breeding program is one of its kind in the sector across the world and we are the only sugar manufacturer in India with a well-structured and dedicated cane R&D wing relentlessly working towards improving the yield and quality of sugarcane.

With an emphasis on creating cane crop par excellence, we have ensured developing diseasefree quality clean seeds under a three-tier nursery program in tissue culture-based nurseries, a part of our captive farms. Over the years, we have developed more than twelve high-yielding and high sugarcane varieties for the benefit of the farming community. The early maturing variety Co 11015 is being produced under the sugarcane breeding program which is witnessing scale multiplication in Tamil Nadu and Andhra mills. This variety can be multiplied through tissue culture lab and to be used by the Parry farmers as well as the farmers of other mills. We also developed location-specific varieties so as to promote and retain farmers in cane cultivation and help them to realize good yield in their farms. Our timely interventions have resulted in

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E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

increasing the average cane yield and the overall season sugar recovery.

EID Parry has entered into technical collaboration to measure the irrigation water and carbon footprints of sugarcane and chalk out a mitigation plan for efficient water usage. The autonomous irrigation system has been successful in regulating the irrigation based on crop demand, relive water stress throughout the crop cycle, minimize human intervention and thus enabling better yield and sucrose accumulation. The use of biocontrol measures, viz. Pheromone Sticky Trap and Entomo Pathogenic Nematode (EPN) distributed to farmers helped in eco-friendly pest management. We also introduced new digital-based projects that aided

in monitoring the sugarcane pests and disease through remote sensing in the command area, which in turn, helped make necessary early measures to minimize the crop damage. A collaborative project on integrated Decision Support Tool (DST) was also launched to develop real-time solutions for the farmers in precision farm management. Several technologies like wider row spacing protray and single bud seedling planting, intercropping with pulses were also adopted. In addition, more Agri Service Providers (ASP) are engaged for mechanisation in cane cultivation. EID Parry also undertook a number of initiatives for streamlining and improving the cane

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Annual Report 2020-21

procurement and management function in its Karnataka Operation which is always reeling under the pressure of heightened competition and the threat of unauthorized cane poaching. Several initiatives for reducing the harvesting & transportation (H&T) hassle and ensuring accurate booking of gangs were taken to help decrease yard balance, vehicle waiting hours, reduction of cut to crush time and improve recovery. The centralized H&T planning and execution facilitated smooth inter-unit movement and reduced yard balance. We also increased the deployment of mechanical harvesters to cover a large part of the area to counter the shortage of harvesting labour. Our decision to pay our valuable suppliers on time over the years has helped us win the farmer’s confidence and build trust and credibility. The recovery was better due to the improvement over years on increasing the HSV varieties, supply of quality seeds through clean seed program and conducive agroclimatic condition.

Initiatives

With the sustained availability of cane being a major concern, EID Parry has taken several initiatives, including incentivising farmers for cane plantation, supplying clean seeds, providing resources for drip and micro-irrigation and facilitating the various agronomy services through agencies and agri-service providers.

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Under the farmer-centric and inclusivity, we encourage and ensure that farmers are provided with ‘soil health cards’ and guide them to improve soil health and fertility, thus aiding in increasing the yield per acre. We have also in place, Farmer Connect App in Tamilnadu, Andhra Pradesh & Karnataka and during the lockdowns, we introduced “voice drops” to connect with the farmers and started canvassing and communicating with the farmers through voice calls. We have introduced a toll free number for farmers service to facilitate hassle free cane cultivation. “Call Centre for Cane operations”, a first of its kind initiative was introduced to reach farmers of TN and AP. The Call Centre team gets in touch with the farmers on a regular basis during the entire life cycle of the crop and assists them in all possible spheres provide a seamless connect.

EID Parry has also been working closely with the Government on a number of subsidy schemes to promote drip irrigation, Sustainable Sugarcane Initiative (SSI), etc. and has also embarked on a program of ensuring clean seed for planting. In a nutshell, our entire initiative directed towards improving cane quality has helped us harvest value and establish a culture of creating superior quality cane.

First sugar manufacturer in India with a dedicated Cane R&D wing

Annual Report 2020-21

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Weaving flexibility across adjacencies

Weaving flexibility across adjacencies. More bagasse, more molasses and more extracted water would drive economy of scale. Why not switch to newer usages, newer mode of monetizing the adjacencies? Flexibility of deploying molasses to produce alcohol, ethanol, sanitiser, or something else? Flexibility to convert bagasse to power or to compost or something else? Flexibility to sell power under PPA or exchange or someone else? Flexibility to use bagasse, coal or something else to produce power?

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

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Over the past few years, the Indian sugar industry has evolved multi-fold in terms of efficiency, and we have made all efforts for optimum utilization of resources, reduction of processing losses, diversification of products, utilization of by-products with impetus on ethanol production, etc.

Ethanol

The Ethanol Blending Programme (EBP), of the Government of India is a big leap towards promotion of alternative and environment-friendly fuels. With the Government’s initiatives to encourage ethanol production in the country, there has been a significant augmentation and an estimate indicates that the industry will be fully geared up to meet the demand for ethanol by reaching the target of 20% blending by 2025.

We have multiple distilleries engaged in the production of industrial alcohol and ethanol and almost the entire distillery capacity of the Company is dedicated towards ethanol & ENA (Extra Neutral

Alcohol). The company’s alcohol production will get a further fillip with the commissioning of distillery unit at Bagalkot. The company already has distilleries at Nellikuppam, Haliyal, Sankili and Sivagangai.

As part of the strategy for growing the ethanol stream as a revenue earner, the company went ahead with its distillery capacity expansion at Bagalkot factory by investing in a 60KLPD plant.

Cogeneration

The power produced through Bagasse based co-generation is an ideal substitute for thermal alternatives and reduces greenhouse gas emissions. In the present scenario, when fossil fuel prices are shooting up and there is a shortage and nonavailability of coal, bagasse based co-generation appears to be a promising development. Electricity production through cogeneration in sugar mills in India is an important avenue for supplying low-cost, non-conventional power.

Annual Report 2020-21

We are using bagasse to generate power for captive consumption as well as export. The bagasse is also used for manufacture bagasse pellets; a fuel source used for various purpose by the industry. We are also supplying Bagasse to paper mills as a raw material.

exploring opportunities to convert Sugar, Distillery & Nutra by-products (waste) into value-added Products suitable for Aquaculture, Poultry & Animal Husbandry.

We have also gone ahead with developing nutrientrich eco-friendly soilless media from sugar cane bagasse for the international and domestic market. We have developed green grow media with bagasse as the raw material. The grow media is an effective medium to grow all kinds of plants and to conserve soil and water and to improve fertility of the soil and productivity.

Manufacturing Excellence

EID is persistent towards achieving manufacturing excellence and achieve better efficiencies in steam, energy, and chemicals consumption besides reduction of total losses. We have accelerated our cost optimization drive across the value chain to further improve our operational efficiency. We are working on optimizing our efficiencies, reducing cost and eliminating across functions and processes. We pursue TPM deployment aggressively, which in turn, helps to achieve manufacturing excellence, operational safety, and a higher level of quality awareness.

We are mixing press mud, a residual output after the filtration of the juice, with distillery spent wash to produce high-quality bio-manure, which is ecofriendly as well as cost-effective than chemical fertilizers.

We are also in the process of developing further value added products from bagasse by engaging ourselves with leading educational and research institutions.

Value Added Products

We have undertaken a pilot study to extract potash from ash produced in the distilleries. We are

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E.I.D.-Parry (India) Limited

Corporate Overview

Management Reports Financial Statements

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n Development of mineralised salt lick for small ruminants from Nutra process waste.
n Development of nutrient-rich dry fodder block for cattle.
n Development of Bioplastic i.e degradable mulching sheet and poly bags from Bagasse.

The above projects are in various stages of research and development.

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Annual Report 2020-21

Many shades of white

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Sugar may be plain simple and white, but that did not stop the organization from building a colourful and higher order product portfolio within the last 3 years. With a clear understanding of consumer behaviour and perspective, the organization has chalked out and implemented a valueadded portfolio with higher margins and future business opportunities. Once again, the company has relied on its innovative and bold culture in building its future portfolio.

Today, EID Parry offers a range of products that include Brown sugar, sulfur-free process sugar, low Glycemic Index sugar, pharmaceutical sugar, fortified sugar etc. The reinvention and value-addition in our sugar products have made us stand out among our peers.

Apart from regular sugar, we have high quality, customised grades of pharmaceutical sugar catering to Indian Pharmacopoeia (IP), British Pharmacopoeia (BP), US Pharmacopoeia (USP), Japanese Pharmacopoeia (JP) and European Pharmacopoeia (EP). This sugar caters to a wide range of pharma applications like tablet coatings, liquid orals, dry syrups, intravenous applications & drug delivery systems for sustained and extended-release products.

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E.I.D.-Parry (India) Limited

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Annual Report 2020-21

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E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Consumer centric product portfolio

With a persistent focus on strengthening our core portfolio, based on strong consumer insights, we have developed the following products to capitalize on the ever increasing demand from consumers and to provide consumers with a healthier alternative to just plain sugar :

Sulphur less process Refined Sugar: The company’s flagship product is now made using sulphur free process in order to deliver superior product to the consumers.

Brown Sugar: We were first to launch pure brown sugar under the brand – Amrit with essential vital nutrients.

SweetCare: with a comprehensive understanding of the growing consumer demand for Low GI sugar, we have developed and launched Sweetcare, with the power of 7 herbal extracts and clinically tested to deliver a Glycemic Index less than 55, while yet retaining the original look, feel and taste of normal sugar. Now Parry consumers can enjoy the sweetness of sugar and life with greater confidence.

Retail business

With a robust portfolio of consumer products, innovative mindset, technical competence and capability, multi location plants and hygienic manufacturing process, EID Parry ventured into the retail business a few years ago and renewed its interest in this business in 2018. The past 3

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First Sugar Company in India to manufacture sugar in 1842

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years have witnessed a high growth in the retail volumes with a rigorous distribution system being built coupled with strong brand building operations. The organization now has the retail business accounting for almost 30% of its volumes and with higher realizations. This consumer centric approach is more future oriented and is poised for greater heights.

With this entry into retail and institution space, armed with a robust portfolio of products, EID Parry is right on track to Harvest Value from the sugar business!

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Annual Report 20-21

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More nutra is the new normal

Let’s view the new normal from the lens of ever increasing ‘affinity to natural’ in our everyday consumption. Now is the time to fortify foundations of future growth in our Nutra business

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With the evolving awareness about a healthy lifestyle, Nutraceuticals have occupied a bigger space in people’s dietary plans over the years. Its use has become all the more relevant in the current pandemic scenario where health and immunity have become everyone’s priority and more and more individuals are showing their affinity to immuno-booster and health supplements. Today, people’s affinity with the natural nutrient source has increased multi-fold and we, at EID Parry, believe in spreading health and wellness by harnessing the goodness of micro-algae. Our products like Spirulina, Astaxanthin, and Chlorella are of superlative qualities and establishes our philosophy of ‘Good on inside’ with their far-reaching health benefits. Both Spirulina and Chlorella have gained popularity as healthy food supplements and consistent advancement, scientific interventions and investments have made us further fortify our position in the market.

We have succeeded in sustaining our leadership and excellence in the premium spirulina segment and managed to consolidate our position and shares in the market further in North America and European countries with a fine 30% growth. Some of the salient features of our products such as nutritional composition, quality parameters and efficient customer service have made us stand out and helped make inroads in the key markets.

Our well–equipped and advanced manufacturing capacity is helping us to create a superior nutritional profile for our

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Corporate Overview Management Reports Financial Statements

Organic Chlorella, which is all set to accelerate the growth of our nutraceutical business significantly. We are also working on increasing our customer base by bringing in innovation and developing new products that comprise microalgae. The use of this signature ingredient will thus help us expand our product portfolio. In order to further fortify our position, we are working on identifying qualified vendors to supply organic Spirulina / Chlorella powder.

Fortification and growth

The US Nutraceuticals Inc. (Valensa), our wholly-owned subsidiary grew more than 20% in the financial year 2020-21 and went ahead improving its market position in Saw Palmetto-based products by increasing the sales with key customers and strengthening supply chain operations. Moreover, Our subsidiary Alimtec, Chile continues to produce Astaxanthin, with high quality and yield. Furthermore, the successful enhancement of the manufacturing processes of our JV, Algavista Greentech Pvt. Ltd., in producing the Natural Blue color (Phycocyanin) has further helped us leverage our position. We have also put emphasis on initiating good relationships and network with the leading colour distributors and food manufacturers during the year in order to build a strong customer base for the future. At EID, we continue to be a leading player in the EU markets for organic grade Spirulina and over the last 3 years, the business in this region has doubled.

Annual Report 2020-21

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Spirulina

Our Spirulina was one of the first to be certified organic globally as per USDA-NOP, Naturland and EU Standards. It was also the first and only Spirulina to complete the USP Dietary Ingredient Verification Program, endorsed to align with the FDA’s Food Safety Modernization Act. This validates our commitment

to quality and effective GMP quality systems in compliance with officially recognized requirements.

Chlorella

Our organic Chlorella, due to its natural cultivation process, yields a high level of Bioavailable Vitamin B12 consistently. The Vitamin B12 levels are 400 mcg/100

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gms. With the recommended RDA of 2.5 mcg/day and with an average absorption rate, 1 g of our Chlorella is enough for meeting the daily requirement of Vitamin B12 as per RDA.

Flomentum

We seek to expand our “Flomentum” brand of formulations for maintaining prostate health and have positioned it in the market as a premium brand. Flomentum has the credit of being the first and only US Pharmacopeia (USP) Verified prostate health supplement. It is composed of a pure extract from Florida® saw palmetto berries in the USA.

Annual Report 2020-21

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Assets ought to earn

Why not optimize both the assets – core and less core? Let’s relocate underutilised assets for greater sweating, monetise dormant assets to recapitalize, pare debt to rationalize leverage, strengthen balance sheet to kickstart the next phase of growth.

During the year, the Company commenced activities for setting up of a 60 KLPD green field distillery at Bagalkot, Karnataka (KN). The plant was successfully commissioned on June 30, 2021. Consequent to the closure of the sugar factory at Pudukkottai in TN, the Company decided to move the assets to Haliyal unit in KN, increasing the unit’s crushing capacity from 7500TCD to 11500 TCD.

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E.I.D.-Parry (India) Limited

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We are E.I.D.-Parry

EID Parry’s Many Firsts

l Started in 1788, the many business ventures of the Company were the first of its kind in the country
l First Sugar Company in India to manufacture sugar in 1842
l First started a distillery in India in 1843
l First sugar manufacturer in India to initiate farmercentric model of business in 1845
l First and amongst the few sugar manufacturers in India with a dedicated Cane R&D wing and cane breeding programme, adopt tissue culture to develop new and improved cane varieties
l First and only sugar, Parrys Pure, to be conferred the ‘Super Brand’ status in India
l First to promote the Fertiliser Industry in India in 1953
l First of its kind fully automated standalone distillery in Sivagangai started in 2009 with zero emission, zero effluent and captive power generation capability
l First fully Distributive Control Systems (DCS) based automated sugar plant at Pudukkottai in 2000
l First to start cogeneration of green power using sugar-cane bagasse

Products & Customizations

l High quality, customised grades of pharmaceutical sugar conforming to Indian Pharmacopoeia (IP), British Pharmacopoeia (BP), US Pharmacopoeia (USP), Japanese Pharmacopoeia (JP), European Pharmacopoeia (EP)
l Catering to wide range of pharma applications like tablet coatings, liquid orals, dry syrups,

intravenous applications & in drug delivery systems for sustained and extended release products

l Preferred vendor to major, specialty and critical industries such as infant-food, beverages, confectionary, etc.
l The first to launch pure brown sugar under the brand – Amrit with 6 vital nutrients, 10 times more nutrients than Sugar

USP

l Market leader and Sugar Czar - ahead of the innovation curve
l Manufacturing sugar with essential specifications for the food, bakery, confectioneries, beverage & pharmaceutical industries
l Enriching the lives of more than One Lakh farmers by training them on scientific methodologies to increase yield and productivity. Offering value added services to farmers such as GPS mapping, soil testing, water management, sustainable farming practices, to name a few.
l Leader in micro algae technology comprising Spirulina, Chlorella and natural beta carotenoids
l Contributing to green energy by converting the molasses generated as a by product in the sugar manufacturing process to ethanol
l Conserving ground water –minimize ground water extraction by reusing and recycling the water for various process applications
l Plants certified for ISO 22000 (Food Safety) and Bonsucro (sustainable sugar cane) to meet the demanding need of discerning customers and reduce water and carbon footprints

Annual Report 2020-21

Sugar

Right from India’s first sugar plant set up at Nellikuppam, Tamil Nadu in the year 1842 to further setting up of plants and incorporation of well-paced and well-structured R&D wing, EID Parry continues to create new parameter of excellence in the field of sugar production and cane culture. Today the company flaunts an impressive list of eight plants, spread across Tamil Nadu, Karnataka and Andhra Pradesh and also a Refinery Unit of its wholly- owned subsidiary, Parry Sugars Refinery India Private Limited in Kakinada. The distillery and co-generation plants are also present in the integrated sugar mills of the Company. It has also pioneered several scientific methodologies like sustainable sugarcane cultivation that has not only benefitted the farmers but also the industry. It is the first company in Asia to be awarded the Bonsucro International Certification for sustainable sugarcane cultivation. With emphasis on achieving benchmarks in operational efficiencies, progressive farmer-centric model of business operations, environmentally responsible mode of business and sustainable farming and socio-welfare initiatives for the agri-community, the Company is the first and amongst the few sugar manufacturers in India with a dedicated Cane Research & Breeding Centre recognised by the Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology, Government of India. ‘Parrys Pure’ is the only sugar brand to be conferred the ‘Super Brand’ status in India.

The Company expanded its retail range of products by launching the ‘Amrit’ brand of pure jaggery. The Amrit’ brand of brown sugar consolidated its market presence among discerning customers with a quantum growth in sales. Parry’s Amrit Natural Brown Sugar contains several vital minerals and almost 10% lesser calories as compared to white refined sugar thus making it “The Better Sugar”.

with low GI Sugar (Glycemic Index < 55), a healthier option. SweetCare is an ideal replacement of normal sugar with the power of 7 herbal extracts. It helps to control blood sugar levels with 30% lesser glucose load. It is made by using a sulphur-free process, is safe for consumption and has the natural taste of sugar.

Nutraceuticals

For more than four decades, E.I.D Parry has been an undisputed leader in the Nutraceuticals segment across the world with its organic Spirulina and micro algal products. Its organic Spirulina, the flagship product, enjoys a global recognition and has been certified as the highest quality organic Spirulina worldwide. In 2015, Parry Nutraceuticals added

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The Company has also gone ahead to launch Sweet Care , a clinically tested sugar

E.I.D.-Parry (India) Limited

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About Murugappa Group

another feather to its cap wherein it produced another green microalgae, Organic Chlorella, through a focussed research on microalgae. Chlorella is categorised under superfood due to its richness in Chlorophyll, essential Vitamins, Minerals and Fatty Acids and Parry’s Chlorella certifies wellness with its superlative quality. EID Parry’s nutraceuticals segment is also equipped with five state-of-theart manufacturing plants spread across India and overseas. One of the star feature of the EID Parry’s Nutraceutical segment is that it is the only player in the segment with eight international certifications for quality and consistency. EID has also a significant presence in the farm inputs business through its subsidiary Coromandel International Limited.

EID Parry is a part of Murugappa Group founded in 1900. It is one of India’s leading business conglomerates with 29 businesses, which includes ten listed Companies traded in NSE & BSE. The Group is headquartered in Chennai and its major companies include Carborundum Universal Ltd., CG Power and Industrial Solutions Ltd, Cholamandalam Financial Holdings Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd., TI Financial Holdings Ltd and Wendt (India) Ltd. The Group’s companies are market leaders in several segments including Abrasives, Auto Components, Transmission Systems, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals. The Group has alliances with leading international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile (SQM), Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). It boasts of a wide geographical presence all over India and across 6 continents.

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Our vision and mission

EID Parry seeks to excel and grow on the platform of innovation, innovation in technology; innovation in systems and innovation in practices through sustainable partnerships. The Company is committed to building organizational capability and capable agri-based organization through creation of value for shareholders and its stakeholders and partners like farmers, suppliers and employees.

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Awards

2017–18

l “Commitment to Engagement” award from Aon Hewitt in May 2017.

l Nellikuppam Unit - second prize in Best Industrial Relations Category for the period 2008-

Annual Report 2020-21

2014 from Hon’ble. Labour Minister. TN govt. for sustaining cordial industrial relations climate.

l “Chennai Best Employer Award 2017” from Employer Branding Institute India.
l ET Now’s Best Corporate Social Responsibilities Practices Award.
l India’s Best Sugar Manufacturing Company of the year 2017 Award by International Brand Consulting Corporation, USA.

2018-19

l ‘The Dream Company To Work For’ Award at the Asia HR Leadership Awards 2018.
l Award for ‘Talent Management’ at the ‘Times Ascent’ -Asia Pacific HRM Congress -2018.
l ET Now ‘Best Corporate Social Responsibility Practices Award’-2019.
l Economic Times Best Brands Award 2019.
l Pudukkottai Plant received the TPM Excellence Award - Category A from the Japan Institute of Plant Maintenance. The first sugar manufacturing plant in the world to receive the award.
l Two awards for innovative project for implementing condensate polishing unit & Energy efficient unit (Nellikuppam) award for conserving steam and power in 19th National Energy Management 2018, CII Hyderabad.
l Nellikuppam : Received golden award for the Best Technical Efficiency and silver award for the best distillery from SISTA
l Pudukkottai Unit received the CII National Level Energy Efficient Unit

2019–20

l In the 35th Kaizen Competition conducted by CII Institute of Quality, Nellikuppam plant presented the following kaizens under the category of Breakthrough: Process breakthrough through change of technology:
i. Biofuel from impure alcohol
ii. Zero effluent discharge
l For its Kaizen on ‘Bio-fuel from impure alcohol’, Nellikuppam Plant won the First Prize.
l Ramdurg unit received the National Safety Award from the Regional Labour Institute, Government of India, Ministry of Labour & Employment for the performance year 2017.
l In the 20th National Award Contest for Excellence in Energy Management held by CII, Nellikuppam unit was declared as

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“Excellent Energy Efficient Unit”. The award was given for the plant’s works in the following areas:

i. Cooling tower pumps reduction ii. Sulphur station waste heat recovery
iii. Increase in no. of nozzles in roller to reduce bagasse moisture.
l Nellikuppam Plant received 6 awards from the Government of Tamilnadu on safety.
l SISSTA Awards
i Nellikuppam distillery received the “Platinum Award” from SISSTA being the Best Distillery in Tamil Nadu region.
ii. Sivaganga distillery received the “Golden Award” from SISSTA being the Best Distillery in Tamil Nadu region.
iii Sankili unit received “Silver award” from SISSTA, for being Best Distillery for 201819 in AP & Telangana Region.

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Annual Report 2020-21

CORPORATE INFORMATION

BOARD OF DIRECTORS

V. Ravichandran, Chairman

S. Suresh, Managing Director

REGISTERED OFFICE

‘Dare House’ Parrys Corner, Chennai - 600 001. CIN : L24211TN1975PLC006989

Ajay B Baliga, Independent Director

T. Krishnakumar*, Independent Director

V. Manickam, Independent Director Ramesh K B Menon

AUDITORS

Price Waterhouse Chartered Accountants LLP Chennai

R.cā Godbolé, Independent Director

M. M. Venkatachalam

Appointed w.e.f May 6, 2021

BANKERS

State Bank of India HDFC Bank Kotak Mahindra Bank

COMPANY SECRETARY

INVESTOR CONTACTS

Biswa Mohan Rath

CORPORATE MANAGEMENT TEAM

S. Suresh, Managing Director

Balaji Prakash, Sr. Vice President-Sales & Marketing

Registrar and Transfer Agent

KFin Technologies Private Limited Unit : E.I.D.- Parry (India) Limited Selenium, Tower B, Plot No. 31 & 32, Gachibowli, Financial District, Hyderabad - 500 032. Toll free: 1800-309-4001 E-mail : [email protected]

Biswa Mohan Rath, Vice President - Legal & Company Secretary

T. Kannan, Vice President - Commercial

Madhu Sudhan Sharma, Vice President & Head - Manufacturing Muthiah Murugappan, Head – Strategy & Nutraceuticals

S. K. Sathyavrdhan, Executive Vice President - HR

S. Rameshkumar, Chief Financial Officer[#]

COMPANY

Secretarial Division

Tel : +91 - 44 - 25306789 Fax : +91 - 44 - 25341609 E-mail:[email protected] Website : www.eidparry.com

A. Sridhar, Chief Financial Officer**

upto August 12, 2021
** Appointed w.e.f. August 13, 2021

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

NOTICE

Notice is hereby given that the Forty Sixth Annual General Meeting (e-AGM) of the Members of E.I.D.- Parry (India) Limited will be held on Thursday, September 16, 2021 at 3.30 PM Indian Standard Time (“IST”) through Video Conferencing (VC) or Other Audio-Visual Means (OAVM) to transact the following business:

ORDINARY BUSINESS:

1. Adoption of Standalone Financial Statements

To consider and if deemed fit, to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT the audited standalone financial statements of the Company for the financial year ended March 31, 2021 and the reports of the Board of Directors and Auditors thereon be and are hereby received, considered and adopted.”

2. Adoption of Consolidated Financial Statements

To consider and if deemed fit, to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT the audited consolidated financial statements of the Company for the financial year ended March 31, 2021 and the report of the Auditors thereon be and are hereby received, considered and adopted.”

3. Re-appointment of Director

To consider and if deemed fit, to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 152 and other applicable provisions, if any, of the Companies Act, 2013, Mr. V. Ravichandran (DIN: 00110086) who retires by rotation and being eligible for re-appointment, be and is hereby reappointed as a Director of the Company liable to retire by rotation.”

SPECIAL BUSINESS:

4. Reappointment of Independent Director

To consider and if deemed fit, to pass the following resolution as a Special Resolution:

“RESOLVED THAT pursuant to the provisions of Sections 149 and 152 read with Schedule IV and other applicable provisions, if any, of the Companies Act, 2013 (“Act”) and the Companies (Appointment and Qualification of Directors) Rules, 2014 and Regulations 17 & 25 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (including any statutory modification(s) or re-enactment thereof for the time being in force), Dr. (Ms) R.cā Godbolé (DIN:07306268) who was appointed as an Independent Director of the Company by the Members for a term of five consecutive years from the Annual General Meeting held on August 5, 2016, who being eligible for re-appointment as an Independent Director has offered herself for re-

appointment and in respect of whom the Company has received a Notice in writing from a Member under Section 160(1) of the Act proposing her candidature for the office of Director, be and is hereby reappointed as an Independent Director of the Company, not liable to retire by rotation, to hold office for a second term of five (5) consecutive years from August 5, 2021.”

5. Appointment of Independent Director

To consider and if deemed fit, to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Sections 149, 150, 152 read with Schedule IV and other applicable provisions, if any, of the Companies Act, 2013 (the Act) and the Companies (Appointment and Qualification of Directors) Rules, 2014 and Regulations 17 & 25 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 [including any statutory modification(s) or re-enactment thereof for the time being in force], Mr. T. Krishnakumar (DIN: 00079047), who was appointed as an Additional Director of the Company with effect from May 06, 2021 by the Board pursuant to Section 161(1) of the Act and who holds office up to the date of this Annual General Meeting and in respect of whom the Company has received a notice in writing from a Member under Section 160 (1) of the Act proposing his candidature for office of Director and who is eligible for appointment as an Independent Director be and is hereby appointed as an Independent Director of the Company, not liable to retire by rotation, to hold office for a term of five consecutive years commencing from May 06, 2021.”

6. Remuneration of Cost Auditors

To consider and if deemed fit, to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 148 and other applicable provisions, if any, of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment(s) thereof for the time being in force), the remuneration of ` 8,50,000/- (Rupees Eight Lakh Fifty Thousand only) plus applicable taxes and reimbursement of out of pocket expenses payable to M/s. Narasimha Murthy & Co., Cost Accountants (Firm Registration Number: 000042) for conduct of audit of the cost records of the Company for the financial year ending March 31, 2022 as approved by the Board of Directors of the Company, be and is hereby ratified.

Annual Report 2020-21

RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to do all acts and take all such steps as may be necessary, proper or expedient to give effect to this resolution.”

By Order of the Board For E.I.D.-Parry (India) Limited Place : Chennai Biswa Mohan Rath Date : June 29, 2021 Company Secretary

Registered Office:

‘Dare House’, Parrys Corner, Chennai - 600 001. CIN: L24211TN1975PLC006989 Tel. : +91-044-25306789 Fax.: +91-044-25341609 E-mail: [email protected] Website: www.eidparry.com

NOTES

In view of the continuing Covid-19 pandemic, the Ministry of Corporate Affairs (“MCA”) has vide its circular dated May 5, 2020 read with circulars dated April 8, 2020, April 13, 2020 and January 13, 2021 (collectively referred to as “MCA Circulars”) permitted for holding the Annual General Meeting through VC / OAVM without physical presence of the members at a common venue. In compliance with the provisions of the Companies Act, 2013 (“Act”), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI (LODR) Regulations”) and MCA Circulars, the e-AGM of the Company is being held through VC / OAVM.
In compliance with the aforesaid MCA Circulars and SEBI Circulars dated May 12, 2020 and January 15, 2021, Notice of the e-AGM along with the Annual Report 2020-21 is being sent only through electronic mode to those Members whose email addresses are registered with the Company / Depository Participant(s). Members may note that the Notice and Annual Report 2020-21 will also be available on the Company’s website www. eidparry.com, website of the Stock Exchanges i.e. BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia. com respectively, and on the website of Company’s Registrar and Transfer Agent (RTA), KFin Technologies Private Limited (KFIN) at https://evoting.kfintech.com/.
Company has appointed KFin Technologies Private Limited (KFin), Registrars and Transfer Agent, to provide Video Conferencing facility for the e-AGM and the attendant enablers for conducting of the e-AGM.
Pursuant to the provisions of the Companies Act, 2013 (the Act), a Member entitled to attend and vote at the AGM is entitled to appoint a proxy to attend and vote on his/her behalf and the proxy need not be a Member of the Company. Since this e-AGM is being held pursuant to the MCA Circulars through VC / OAVM, physical attendance of Members has been dispensed with. Accordingly, the facility for appointment of proxies by

the Members will not be available for the e-AGM and hence the Proxy Form and Attendance Slip are not annexed to this Notice.

Members attending the e-AGM through VC / OAVM shall be counted for the purpose of reckoning the quorum under Section 103 of the Act.
Corporate Members (i.e. other than individuals / HUF, NRI, etc.) intending to send their authorised representatives to attend the meeting are requested to send to the Company a scanned copy of the Board or governing body Resolution / Authorization etc., authorising their representatives to attend the e-AGM through VC / OAVM on its behalf and to vote through remote e-voting. The said Resolution / Authorization shall be sent to the Scrutinizer by email through registered email address to [email protected] with a copy marked to [email protected].
Statement pursuant to Section 102 of the Act, in respect of the Item Nos. 4 to 6 to be transacted at the Annual General Meeting as set out in the Notice, is annexed hereto.
The Register of Members and Share Transfer Books of the Company will remain closed from September 10, 2021 to September 16, 2021 (both days inclusive).
The Company is providing facility for voting by electronic means (e-voting) through an electronic voting system which will include remote e-voting as prescribed under the Companies (Management and Administration) Rules, 2014 as presently in force and the businesses set out in the Notice will be transacted through such voting. Information and instructions relating to user id and password for e-voting are provided in the Notice.
As per Regulation 40 of the SEBI (LODR) Regulations, as amended, securities of listed companies can be transferred only in dematerialized form with effect from, April 1, 2019, except in case of request received for transmission or transposition of securities. In view of this and to eliminate all risks associated with physical shares and for ease of portfolio management, members holding shares in physical form are requested to consider converting their holdings to dematerialized form. Members can contact the Company or KFin for assistance in this regard.
Members holding shares in physical form, in identical order of names, in more than one folio are requested to send to the Company or KFin, the details of such folios together with the share certificates for consolidating their holdings in one folio. A consolidated share certificate will be issued to such Members after making requisite changes.
In case of joint holders, the Member whose name appears as the first holder in the order of names as per the Register of Members of the Company will be entitled to vote through remote e-voting.
The Company has transferred the unpaid or unclaimed

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dividends upto the financial year 2012-13 from timeto-time to the Investor Education and Protection Fund (IEPF) established by the Central Government. Details of dividends so far transferred to the IEPF Authority are available on the website of the IEPF Authority and same can be accessed through the link www.iepf.gov.in.

The Company has uploaded the details of unpaid and unclaimed amounts lying with the Company as on March 31, 2021 on the website of the Company (www. eidparry.com).

Information as required under the SEBI (LODR) Regulations and the Secretarial Standard on General Meetings (SS-2), issued by the Institute of Company Secretaries of India, in respect of appointment / reappointment of directors is furnished and forms part of the notice.
As per the provisions of Section 72 of the Act and Rule 19(1) of the Companies (Share Capital and Debentures) Rules 2014, Shareholders holding shares in physical form may file nomination in the prescribed SH-13 with KFin. In respect of shares held in demat form, the nomination form may be filed with the concerned Depository Participant(s).
The Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent Account Number (PAN) by every participant in securities market. Members holding shares in electronic form are, therefore requested to submit the PAN to their Depository Participant with whom they are maintaining their dematerialised accounts. Members holding shares in physical form can submit their PAN details to KFin.
The Register of Directors and Key Managerial Personnel and their shareholding maintained under section 170 of the Act and Register of Contracts or arrangements in which directors are interested maintained under section 189 of the Act, certificate of Statutory Auditor under SEBI (Share Based Employee Benefits) Regulations, 2014 relating to Company ESOP Scheme / Plan and relevant documents referred to in the proposed resolutions will be available for inspection by the members electronically during the meeting. Members seeking to inspect such documents can send an email to investorservices@ parry.murugappa.com.
The details of unclaimed fractional shares proceeds pursuant to the Scheme of Arrangement (Demerger) between Parrys Sugar Industries Limited and the Company and Scheme of Amalgamation of Parrys Sugar Industries Limited with the Company are provided in the General Shareholder Information forming part of this annual report.
Since the e-AGM will be held through VC / OAVM, the Route Map is not annexed in this Notice.
Procedure for registering the email addresses and obtaining the Annual Report, e-AGM notice and e-voting instructions by the shareholders whose email

addresses are not registered with the Depositories (in case of shareholders holding shares in Demat form) or with RTA (in case the shareholders holding shares in physical form):

Members, who have not registered their e-mail addresses so far, are requested to register their e-mail address for receiving all communication including Annual Report, Notices, Circulars, etc. from the Company electronically by following the procedure given below:

a) Members holding shares in demat form can get their e-mail ID registered by contacting their respective Depository Participant.
b) Members holding shares in physical form and who have not registered their email address and mobile number, are requested to furnish a scanned signed copy of the request letter providing the name of the shareholder, Folio No., email address, mobile number and self-attested copy of PAN, Aadhaar to the Company’s RTA, KFin Technologies Private Limited at the email address - einward. [email protected] or [email protected] or [email protected] for receiving the AGM documents electronically. The request with the above documents can also be sent to M/s. KFin Technologies Private Limited at Selenium Tower B, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad – 500 032.
c) All Members whose email address are not registered with Company /DP may temporarily get their email address and mobile number registered with RTA by accessing the link https://ris.kfintech. com/clientservices/mobilereg/mobileemailreg. aspx and follow the steps mentioned therein to enable receipt of the Annual Report, e-AGM Notice and e-voting instructions electronically.
d) In case of any queries, shareholder may write to [email protected].
e) Those members who have registered their e-mail address, mobile nos., postal address and bank account details are requested to validate/update their registered details by contacting the Depository Participant in case of shares held in electronic form. Members holding shares in physical mode are also requested to update their e-mail addresses, advise any change in their address, bank mandates by writing to KFin Technologies Private Limited, (KFin), Selenium, Tower B, Plot number 31 & 32, Financial District, Gachibowli, Hyderabad-500 032 quoting their folio number(s).
Instructions to the Members for attending the e-AGM through Video Conference:
a) Attending the e-AGM: Member will be provided with a facility to attend the e-AGM through video conferencing platform provided by KFin

Annual Report 2020-21

Technologies Private Limited. Members may access the same at https://emeetings.kfintech. com. The link for e-AGM will be available in ‘shareholders’/’members’ login where the EVENT and the Name of the Company can be selected. On login page enter the login credentials [i.e. User ID (in case of Demat Account enter – DP ID and Client ID / in case of physical mode enter Folio No.) and Existing Password]. After logging in, click on “Video Conference” option.

b) The Members can join the e-AGM 15 minutes before and after the scheduled time of the commencement of the Meeting.
c) Please note that the members who do not have the User ID and Password for e-Voting or have forgotten the User ID and Password may retrieve the same by following the instructions provided in remote e-Voting in Note 22 below.
d) Members are encouraged to join the Meeting through Laptops with Google Chrome for better experience.
e) Further Members will be required to allow access to the Camera, if any, and are requested to use Internet with good speed to avoid any disturbance during the meeting.
f) Please note that participants using Mobile Devices or Tablets or Laptops and are accessing the internet via “Mobile Hotspot” may experience Audio/Video loss due to Fluctuation in their respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches.
g) Shareholders holding shares as on cut-off date may also visit https://emeetings.kfintech.com and click on the tab “Post Your Queries” to post their queries/views/questions in the window provided, by mentioning their name, demat account number/ folio number, email ID, mobile number. The posting of the questions by the shareholders/members shall commence from Wednesday, September 8, 2021 at 9.00 a.m. and shall close on Saturday, September 11, 2021 at 5.00 p.m. Please note that, members questions will be answered only if the shareholder continues to hold the shares as of cut-off date.
h) Speaker Registration before e-AGM: Shareholder who wish to register as speakers are requested to visit https://emeetings.kfintech.com/ and click on “Speaker Registration”. Mention the demat account number / folio number, city, email id, mobile number and register yourself as speaker. The speaker registration shall commence from Wednesday, September 8, 2021 at 9.00 a.m. and shall close on Saturday, September 11, 2021 at 5.00 p.m. Shareholders shall be provided with a ‘queue number’ before the e-AGM. Shareholders are requested to remember the same and wait for their turn to be called by the moderator of the meeting

during the Question Answer Session. Due to limitations of transmission and coordination during the e-AGM, the Company may have to dispense with or curtail the Speaker Session, hence shareholders are encouraged to send their questions etc. in advance as mentioned above. The Company reserves the right to restrict the speakers at the AGM to only those Members who have registered themselves, depending on the availability of time for the AGM.

22. Information on Remote e-voting and other information: Remote e-voting :

In compliance with the provisions of Section 108 of the Act and Rules made thereunder, Regulation 44 of the SEBI (LODR) Regulations and Secretarial Standard on General Meetings (SS-2) issued by the Institute of Company Secretaries of India (ICSI), the Company is pleased to provide the members facility to exercise their right to vote through the e-Voting services provided by KFin, on all the resolutions set forth in this Notice.

In pursuant to SEBI circular no. SEBI/HO/CFD/CMD/ CIR/P/2020/242 dated December 9, 2020 on “e-Voting facility provided by Listed Companies”, e-Voting process has been enabled to all the individual demat account holders, by way of single login credential, through their demat accounts / websites of Depositories / DPs in order to increase the efficiency of the voting process. The details of the process and manner for remote e-Voting is explained herein below

Individual shareholders holding shares of the Company in Demat mode:

The procedure to login and access remote e-Voting as devised by Depositories / Depositary Participants are given below:

A. Individual Shareholders holding shares in Demat mode with National Securities Depository Limited (“NSDL”) :
Users already registered for IDeAS e-Services facility of NSDL may follow the following procedure:
i. Type in the browser / Click on the following e-Services link: https://eservices.nsdl.com
ii. Click on the button “Beneficial Owner” available for login under ‘IDeAS’ section.
iii. A new page will open. Enter your User ID and Password for accessing IDeAS.
iv. On successful authentication, you will enter your IDeAS service login. Click on “Access to e-Voting” under Value Added Services on the panel available on the left hand side.
v. Click on “Active E-voting Cycles” option under E-voting.

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

vi. You will see Company Name: “E.I.D.- Parry (India) Limited” on the next screen. Click on the e-Voting link available against E.I.D.- Parry (India) Limited or select e-Voting service provider “KFin” and you will be re-directed to the e-Voting page of KFin to cast your vote without any further authentication.
Users not registered for IDeAS e-Services facility of NSDL may follow the following procedure :
i. To register, type in the browser / Click on the following e-Services link:

https://eservices.nsdl. com

ii. Select option “Register Online for IDeAS” available on the left hand side of the page
iii. Proceed to complete registration using your DP ID, Client ID, Mobile Number etc.
iv. After successful registration, please follow steps given under Sr. No. 1 above to cast your vote
Users may directly access the e-Voting module of NSDL as per the following procedure:
i. Type in the browser / Click on the following link: https://www.evoting.nsdl.com/
ii. Click on the button “Login” available under “Shareholder/ Member” section.
iii. On the login page, enter User ID (that is, 16-character demat account number held with NSDL, starting with IN), Login Type, that is, through typing Password (in case you are registered on NSDL’s e-voting platform)/ through generation of OTP (in case your mobile/e-mail address is registered in your demat account) and Verification Code as shown on the screen.
iv. On successful authentication, you will enter the e-Voting module of NSDL. Click on “Active E-voting Cycles / VC or OAVMs” option under e-Voting. You will see Company Name: “E.I.D.Parry (India) Limited” on the next screen. Click on the e-Voting link available against E.I.D.Parry (India) Limited or select e-Voting service provider “KFin” and you will be re-directed to the e-Voting page of KFin to cast your vote without any further authentication.
B. Individual Shareholders holding shares in Demat mode with Central Depository Services (India) Limited (“CDSL”) :
Users already registered for Easi / Easiest facility of CDSL may follow the following procedure:
i. Type in the browser / Click on any of the following links: https://web.cdslindia.com/ myeasi/home/ login or www.cdslindia.com and click on New System Myeasi / Login to My Easi option under Quick Login (best operational in Internet Explorer 10 or above and Mozilla Firefox)
ii. Enter your User ID and Password for accessing Easi / Easiest.
iii. You will see Company Name: “E.I.D.- Parry (India) Limited” on the next screen. Click on the e-Voting link available against E.I.D.- Parry (India) Limited or select e-Voting service provider “KFin” and you will be re-directed to the e-Voting page of KFin to cast your vote without any further authentication.
Users not registered for Easi/Easiest facility of CDSL may follow the following procedure:
i. To register, type in the browser / Click on the following link: https://web.cdslindia.com/ myeasi/ Registration/EasiRegistration
ii. Proceed to complete registration using your DPID Client ID (BO ID), etc.
iii. After successful registration, please follow steps given under Sr. No. 1 above to cast your vote.
Users may directly access the e-Voting module of CDSL as per the following procedure:
i. Type in the browser / Click on the following links: www.cdslindia.com / https://www. evotingindia.com
ii. Provide Demat Account Number and PAN
iii. System will authenticate user by sending OTP on registered Mobile & E-mail as recorded in the Demat Account.
iv. On successful authentication, you will enter the e-voting module of CDSL. Click on the e-Voting link available against E.I.D.- Parry (India) Limited or select e-Voting service provider “KFin” and you will be re-directed to the e-Voting page of KFin.
C. Individual shareholders holding shares in Demat mode – Procedure to login through their demat accounts / Website of Depository Participant:

Individual shareholders holding shares of the Company in Demat mode can access e-Voting facility provided by the Company using login credentials of their demat accounts (online accounts) through their demat accounts / websites of Depository Participants registered with NSDL/ CDSL. An option for “e-Voting” will be available once they have successfully logged-in through their respective logins. Click on the option “e-Voting” and they will be redirected to e-Voting modules of

Annual Report 2020-21

NSDL/ CDSL (as may be applicable). Click on the e-Voting link available against E.I.D. – Parry (India) Limited or select e-Voting service provider “KFin” and you will be redirected to the e-Voting page of KFinTech to cast your vote without any further authentication.

Members who are unable to retrieve User ID / Password are advised to use “Forgot User ID” / “Forgot Password” options available on the websites of Depositories / Depository Participants.

Contact details in case of any technical issue:

details like mobile number, e-mail address, etc. on first login. You may also enter a secret question and answer of your choice to retrieve your password in case you forget it. It is strongly recommended that you do not share your password with any other person and that you take utmost care to keep your password confidential.

v. You need to login again with the new credentials.
vi. On successful login, the system will prompt you to select the E-Voting Event Number (EVEN):
6107 for E.I.D.- Parry (India) Limited.

Securities held with NSDL

Members facing any technical issue during login can contact NSDL helpdesk by sending a request at [email protected] or call at toll free nos.: 1800 1020 990 / 1800 22 44 30

Securities held with CDSL

Members facing any technical issue during login can contact CDSL helpdesk by sending a request at [email protected] or contact at 022- 23058738 or 022- 23058542-43

II. Information and instructions for remote e-Voting by shareholders other than individuals holding shares of the Company in demat mode and all shareholders holding shares in physical mode:
A. In case a Member receives an e-mail from the Company / KFin [for Members whose e-mail address is registered with the Company / Depository Participant(s)]:
i. Launch internet browser by typing the URL: https:// evoting.kfintech.com
ii. Enter the login credentials. In case of physical folio, User ID will be EVEN followed by folio number. In case of Demat account, User ID will be your DP ID and Client ID. If you are already registered with KFin for e-Voting, you can use the existing password for logging-in. If required, please visit https://evoting.kfintech.com or contact toll-free number 1800-3094-001 (from 9:00 a.m. to 6:00 p.m. on all working days) for assistance on your existing password. Members who forgotten the Password are advised to use “Forgot Password” options available on the website.
iii. After entering these details appropriately, click on “LOGIN”.
iv. You will now reach Password Change Menu wherein you are required to mandatorily change your password upon logging-in for the first time. The new password shall comprise minimum 8 characters with at least one upper case (A-Z), one lower case (a-z), one numeric (0-9) and a special character (@,#,$,etc.,). The system will prompt you to change your password and update your contact
vii. On the voting page, enter the number of shares as on the Cut-off Date under either “FOR” or “AGAINST” or alternatively, you may partially enter any number under “FOR” / “AGAINST”, but the total number under “FOR” / “AGAINST” taken together should not exceed your total shareholding as on the Cut-off Date. You may also choose to “ABSTAIN” and vote will not be counted under either head.
viii. Members holding shares under multiple folios / demat accounts shall choose the voting process separately for each of the folios / demat accounts.
ix. Voting has to be done for each item of the Notice separately. In case you do not desire to cast your vote on any specific item, it will be treated as “ABSTAINED”.
x. You may then cast your vote by selecting an appropriate option and click on “SUBMIT”.
xi. A confirmation box will be displayed. Click “OK” to confirm, else “CANCEL” to modify.
xii. Once you confirm, you will not be allowed to modify your vote.
xiii. Corporate / Institutional Members (i.e., other than Individuals, HUF, NRI etc.,) are required to send scanned certified true copy (PDF Format) of the Board Resolution/ Authority Letter etc., together with attested specimen signature(s) of the duly authorised representative(s), to the Scrutiniser through email ID: rsaevoting@gmail. com with a copy marked to evoting@kfintech. com. The scanned image of the above-mentioned documents should be in the naming format “EID Parry– 46[th] “AGM”.
B. In case whose email address is not registered with the Company / Depository Participants, kindly follow the instruction in Serial No. 20.
C. In case of any query on e-voting, Members may refer to the “Help” and “FAQs” sections / E-voting user manual available through a dropdown menu in the “Downloads” section of KFin’s website for e-voting: https://evoting. kfintech.com or contact KFin as per the details given below.

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

D. Members are requested to note the following contact details for addressing e-voting related grievances:
Ms. Sheetal Doba, Manager - Corporate Registry, KFin Technologies Private Limited, “Selenium Tower-B”, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad - 500032, Telangana. Toll-free No.: 1800 3094 001 Email: [email protected]

Other Instructions :

I. The e-Voting period commences on Sunday, September 12, 2021 (9.00 a.m. IST) and ends on Wednesday, September 15, 2021 (5.00 p.m. IST). The e-Voting module shall be disabled for voting thereafter.
II. The Members, whose names appear in the Register of Members / list of Beneficial Owners as on Thursday, September 09, 2021, being the cut-off date, are entitled to vote on the Resolutions set forth in this Notice, in the proportion of their shareholding of the paid-up capital of the equity shares of the Company. A person who is not a Member as on the cut-off date should treat this Notice for information purposes only. Once the vote on a resolution(s) is cast by the Member, the Member shall not be allowed to change it subsequently.
III. In case a person (individual holding shares in physical mode/ non individuals) has become a Member of the Company after dispatch of AGM Notice but on or before the cut-off date for E-voting, he/she may obtain the User ID and Password by writing to KFin at evoting@ kfintech.com or to the Company at investorservices@ parry.murugappa.com requesting for user ID and password. On receipt of user ID and password, the steps from SI. Nos. (i) to (vii) mentioned in II (A) above should be followed for casting of vote.
IV. Mr. R. Sridharan, M/s. R. Sridharan & Associates, Company Secretaries, Chennai is appointed as scrutinizer to scrutinise the remote e-voting and voting at the e-AGM venue in a fair and transparent manner.
V. The scrutiniser’s decision on the validity of the vote shall be final.
VI. Once the vote on a resolution stated in this notice is cast by Member through remote e-voting, the Member shall not be allowed to change it subsequently and such e-vote shall be treated as final.
VII. The scrutinizer after scrutinizing the votes cast at the meeting and through remote e-voting, will not later than 48 hours of conclusion of the meeting, make a consolidated scrutinizer’s report and submit the same to the Chairman. The results declared along with the consolidated scrutinizer’s report shall be placed on the website of the company www.eidparry. com and on the website of KFin Technologies Private Limited, https://emeetings.kfintech.com. The results

shall simultaneously be communicated to the stock exchanges.

VIII. Subject to the receipt of requisite number of votes, the resolutions shall be deemed to be passed on the date of the meeting, viz., September 16, 2021.
Instructions for members for Voting during the e-AGM session:
a) The e-voting window shall be activated upon instructions of the Chairman during the e-AGM.
b) E-voting during the e-AGM is integrated with the VC platform and no separate login is required for the same. The shareholders shall be guided on the process during the e-AGM.
c) Members / shareholders, attending the e-AGM through Video Conference and who have not cast their vote on resolutions through Remote e-Voting shall be eligible to cast their vote through e-voting system available during the e-AGM.
d) Members who have voted through Remote e-Voting will be eligible to attend the e-AGM, however, they shall not be allowed to cast their vote again during the e-AGM.

Statement pursuant to Section 102 of the Companies Act, 2013 (“Act”)

Item No. 4

Dr.(Ms) R.cā Godbolé (DIN:07306268) was appointed as an Independent Director of the Company by the Members for a term of five consecutive years from the Annual General Meeting held on August 5, 2016. Notice have been received from a member proposing Dr.(Ms) R.cā Godbolé (DIN:07306268) as a candidate for the office of Director of the Company. Dr.(Ms) Ŗcā. Godbole has given a declaration to the Board that she meets the criteria of independence as provided under section 149(6) of the Act. In the opinion of the Board, she fulfills the conditions specified in the Act and the Rules framed thereunder for appointment as Independent Director and is independent of the management. The Board, based on the performance evaluation and recommendation of the Nomination and Remuneration Committee considers that given her background, experience and contribution, the continued association of Dr. (Ms) R.cā Godbolé would be beneficial to the Company and it is desirable to continue to avail her services as an Independent Director of the Company not liable to retire by rotation for a second term of five consecutive years from August 5, 2021. The terms and conditions of appointment of Dr. (Ms) R.cā Godbolé as Independent Director would be available for inspection without any fee by the members at the Registered Office of the Company during normal business hours on any working day excluding Saturday, Sunday and Public Holidays. The disclosure under Regulation 36 of the SEBI (LODR) Regulations and SS-2 is annexed to this Notice.

The Board recommends the Special resolution at Item No. 4 for approval by the Members.

Annual Report 2020-21

Except Dr. (Ms) R.cā Godbolé, being the appointee, none of the other Directors or Key Managerial Personnel of the Company or their relatives is concerned or interested, financially or otherwise in the resolution set out at Item No. 4 of the Notice.

Brief Profile of Dr. (Ms) R.cā Godbolé

Dr. (Ms) R.cā Godbolé is a trained plant molecular biologist She has a postgraduate degree in Bio-Chemistry from the University of Bombay and a Ph.D. from Freiburg, Germany. She has held Post Doctoral positions at the Heidelberg Institute of Plant Sciences and TU Munich. She has worked as a Scientist with Syngenta Seeds (India) Limited, and was involved in various research aspects of the seed business. She is a co-founder of an Agtech firm SaliCrop in Israel, commercializing her technology which enables crops to cope with abiotic stresses better. She has authored many scientific publications and made poster presentations in various Symposia and Congresses, including the Gordon Conference on, ‘Gravitational effects on the living systems’ in 1996 at Boston.

Item No. 5

Mr. T. Krishnakumar (DIN: 00079047) was appointed as Independent Director by the Board of Directors on May 06, 2021. Pursuant to Section 161 of the Companies Act, 2013, he holds office up to the date of this annual general meeting. Notices have been received from a member proposing Mr. T. Krishnakumar as candidate for the office of Director of the Company. Mr. T. Krishnakumar has given declaration to the Board that he meets the criteria of independence as provided under section 149(6) of the Act. In the opinion of the Board, he fulfills the conditions specified in the Act and the Rules framed thereunder for appointment as Independent Director and is independent of the management.The Board based on the recommendation of the Nomination and Remuneration Committee, recommends the appointment of Mr. T. Krishnakumar as Independent Director of the Company not liable to retire by rotation for a term of five consecutive years from the date of his appointment. The terms and conditions of the appointment of Mr. T. Krishnakumar as Independent Director would be available for inspection without any fee by the members at the Registered Office of the Company during normal business hours on any working day excluding Saturday, Sunday and public holidays. The disclosure under Regulation 36 of the SEBI (LODR) Regulations and SS-2 is annexed to this Notice.

Except Mr. T. Krishnakumar, being the appointee, none of the other Directors or Key Managerial Personnel of the Company or their relatives are concerned or interested, financially or otherwise in the resolution set out at Item No. 5 of the Notice.

Brief Profile of Mr. T. Krishnakumar

Mr. T. Krishnakumar is a Engineering Graduate and holds a Post Graduate Diploma in Management from IIM, Bangalore and did his Advanced Management Program from The Wharton Business School, USA. Mr. T. Krishnakumar has over 38 years of experience mainly in the field of General management, strategy, marketing, sales, distribution, supply chain, team building and governance. He has decade plus experience on board of reputed Companies like Hindustan Coca-Cola Beverages Private Limited.

Item No. 6

The Board, on the recommendation of the Audit Committee, has approved the appointment and remuneration of M/s. Narasimha Murthy & Co., Cost Accountants as the Cost Auditors to conduct the audit of the cost records of the Company for the financial year ending March 31, 2022. In accordance with the provisions of Section 148 of the Act read with the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditors has to be ratified by the shareholders of the Company.

Accordingly, consent of the members is sought for passing an Ordinary Resolution as set out at Item No.6 of the Notice for ratification of the remuneration payable to the Cost Auditors for the financial year ending March 31, 2022.

The Board recommends the Ordinary Resolution at Item No.6 for approval by the Members.

None of the Directors / Key Managerial Personnel of the Company / their relatives are, in any way, concerned or interested, financially or otherwise, in the resolution set out at Item No. 6 of the Notice.

By Order of the Board For E.I.D. - Parry (India) Limited

Place : Chennai Biswa Mohan Rath Date : June 29, 2021 Company Secretary

The Board recommends the Ordinary Resolution at Item No.5 for approval by the Members.

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

ANNEXURE TO THE NOTICE DATED JUNE 29, 2021

DETAILS PERTAINING TO DIRECTORS AS REQUIRED UNDER REGULATION 36 OF THE SEBI (LISTING OBLIGATIONS & DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 AND SECRETARIAL STANDARDS ON GENERAL MEETINGS

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Mr. V. Ravichandran Ms. R.cā Godbolé Mr. T. Krishnakumar
Particulars
DIN 00110086 07306268 00079047
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DIN	00110086	07306268	00079047
Age	65	52	62
Date of frst appointment on the Board	30.10.2009	01.11.2015	06.05.2021
Qualifcations	• Engineering Graduate and holds a Post Graduate Diploma in Management from IIM, Ahmedabad, a Cost Accountant and a Company Secretary.	• A trained plant molecular biologist with a PHD from Freiburg, Germany • Post Graduate in Biochemistry (MSc.) from University of Bombay	• BE (Hons) from College of Engineering Guindy • Post-Graduate Diploma in Management (MBA), IIM, Bangalore • Advanced Management Program, The Wharton School, USA.
Expertise (including expertise in specifc functional area) / Brief Resume / Experience	Mr. V. Ravichandran, has over 35 years of experience in Finance, Strategy, General management, operations and marketing. He has decade plus experience on board of reputed Companies	Dr. (Ms.)R. cā Godboléhas rich experience in Research feld and Agbiotech Industry. She is a co-founder, of an Agtech frm, Salicrop, Israel.	Mr. T. Krishnakumar has over 38 years of experience in General management, strategy, marketing, sales, distribution, supply chain and team-building skills. He has decade plus experience on board of reputed Companies.
Terms and Conditions of the Appointment / Re-appointment	Reappointed as Non- Executive Director, liable to retire by rotation.	As per the resolution at Item No.4 of the Notice convening the Annual General Meeting on September 16, 2021 read with explanatory statement thereto, Dr. (Ms.) R. cā Godboléis proposed to be appointed as an Independent Director, for a second term , who is not liable to retire by rotation.	As per the resolution at Item No.5 of the Notice convening the Annual General Meeting on September 16, 2021 read with the explanatory statement there to, Mr. T. Krishnakumar is proposed to be appointed as an Independent Director for a term of fve consecutive years, who is not liable to retire by rotation.
Remuneration last drawn (including sitting fees, if any)	`16.50 Lakh\|<br>`17.60 Lakh	NA
Remuneration proposed to be paid (except sitting fees and commission)	Nil	Nil	Nil
Shareholding in the Company as on March 31, 2021	Nil	Nil	Nil
No. of meetings of the Board attended during the year	7	7	NA
Directorship in other Board as on March 31, 2021	1. Parry Sugars Refnery India Private Limited 2. Parry Infrastructure Company Private limited 3. US Nutraceuticals Inc 4. Alimtec S.A.	Nil	1. KSL Media Limited 2. Coca-cola Amatil Ltd. Australia 3. Coca-cola India Foundation 4. Coca-cola India Private Limited (As on date of appointment, May 6, 2021)
Chairman/Member of the Committees of the Boards of which he is a Director	Parry Sugars Refnery India Private Limited Loans and Investments Committee Member	Nil	Nil

Inter-se relationship with any Director / Key Managerial Personnel	Nil	Nil	Nil

*includes commission of ` 10 Lakh to be payable after approval of the financial statements at the ensuing eAGM.

Annual Report 2020-21

BOARD’S REPORT AND MANAGEMENT DISCUSSION AND ANALYSIS

To the Members of E.I.D.- Parry (India) Limited

Dear Shareholders,

Your directors have pleasure in presenting the Forty Sixth Annual Report together with the audited financial statements for the year ended March 31, 2021.

` in Crore

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Standalone Consolidated
Particulars 2020-21 2019-20 2020-21 2019-20
Revenue from operations 2,024.25 1,874.88 18,587.45 17,128.92
Gross Revenue 2,409.65 2,015.57 18,630.60 17,147.80
Profit Before Interest and Depreciation (EBITDA) 555.93 235.18 2,218.71 2,015.69
Exceptional Gains/(Loss) 715.17 - (112.08) -
Depreciation 119.99 119.56 331.70 318.96
Profit Before Interest and Tax (EBIT) 1,151.11 115.62 1,774.93 1,696.73
Finance Charges 92.72 135.66 235.61 430.49
Net Profit Before Tax 1,058.39 (20.04) 1,539.32 1,266.24
Tax Expenses 193.53 (21.87) 539.50 377.36
Net Profit After Tax Before Minority Interest 864.86 1.83 999.82 888.88
Non – Controlling Interests NA NA 552.45 421.01
Net Profit After Tax and Minority Interest 864.86 1.83 447.37 467.87
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RESERVES

The Company has not transferred any amount to the reserves for the year ended March 31, 2021.

SHARE CAPITAL

The Paid-up Equity Share Capital of the Company as on March 31, 2021 was 17,71,02,391 consisting of 17,71,02,391 equity shares of 1/- each.

During the year, the Company has allotted 1,07,410 equity shares of ` 1/- each under the Employee Stock Option Scheme 2007 and the Employee Stock Option Plan 2016.

CONSOLIDATED OPERATIONS

Consolidated Revenue from operations for the year was 18,587 Crore, as against 17,129 Crore in the previous year. Overall expenses for the year was 17,093 Crore (including exceptional items) as against 15,879 Crore in the previous year. Operating Profit (EBITDA) was 2,107 Crore (including exceptional items) as against 2,016 Crore in the previous year. Profit after Tax and minority interest for the year was 447 Crore, as against 468 Crore in the previous year.

STANDALONE OPERATIONS

Standalone Revenue from operations of your Company for the year was 2,024 Crore as against 1,875 Crore in the previous year. Operating Profit (EBITDA) (including exceptional items) was 1,271 Crore, as against 235 Crore. in the previous year. Profit after Tax for the year was at 865 Crore as against 2 Crore in the previous year.

The financial year 2020-21 has been a challenging one for the Company with weakening macro-economic conditions,

slowing market growth in several sectors caused by the COVID-19 outbreak and associated containment measures disrupting the supply chain, operations and also the eventual consumption. Against this challenging backdrop, the Company has delivered a profitable standalone sugar business with a healthy EBITDA supported by strong growth in retail portfolio. Profit before tax and before exceptional items (PBT) grew at 1813% backed by the growth in the segments in which the company operates and increased dividend from Coromandel International Limited.

The performance during the year has improved over the previous year despite the inherent challenges and risks associated with the sugar industry and the disruptions caused by the pandemic. The selling prices of sugar continued to remain subdued, with the stock holding restrictions in place. Hence the business, continued to focus on process efficiencies, cost optimisation, quality, and delivery to increase the margin. The margin expansion is a result of our strong cost savings agenda, scale efficiencies achieved on the back of healthy volume growth and strong product portfolio along with the market development. The efficiencies in systems and process, lower interest cost, better realisation from sugar retail sales and alcohol sales facilitated the Company’s bottom-line to a large extent. The business had a modest revenue growth but grew remarkably in terms of profitability despite regulatory bottlenecks and restrictions and an increase in Fair and Remunerative Price (FRP) without commensurate increase in the Minimum Selling Price (MSP) of sugar. This resilient performance is a reflection of the strength of our brands, our execution prowess, and rigour and discipline in implementing a well laid out strategy.

Today, the shareholders are increasingly interested in the sustainable and social governance aspects of

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business that are so essential to delivering value. Our long-term commitment and engagement with the large farming community who are our biggest stakeholders, is encapsulated in sustainable sourcing and providing sustainable livelihoods to farmers. As we strengthen our foundation to deliver long-term superior value, accelerating growth is our top priority. We are doing this by evolving our portfolio of brands to deliver higher growth in various market segments. We are determined to stay the course on our strategy and continue innovating for the future which can bring synergy in all our functions. Your Company continues to derive sustainable benefit from the strong foundation and long tradition of cane R&D, which differentiates it from others. New products, processes and benefits continue to flow from the system in tune with the market requirements.

The consumer centric approach of your Company enabled growth in retail sales by focusing on retail distribution and robust brand building. Your Company has made inroads in traditional and modern retail channels by deploying significant resources and providing superlative products which offer high value to the consumers. Your company continued its journey of building further on the iconic brand “Parry” by increasing the relevance of the brand and its products to the changing needs of the consumers. The brand continues to be innovative and purposeful in all forms of brand action and communication. The focus is clearly on strengthening the core portfolio by providing robust highquality white, refined and brown sugars and by launching innovative new age products. This year the company added one more feather to its innovation funnel by launching a Low GI sugar to cater to the ever-increasing health and fitness enthusiasts. The company will continue to focus on enhancing the product portfolio and the distribution coverage so that Parry sweeteners are accessible to many consumers.

Our people have always been our strongest pillars and over the years, we have built a sustainable business based on a high-performance work culture where employees are empowered and encouraged to bring out their best selves to work. We continue to build organisation capabilities which can help our people to become the leaders of the future who can thrive in this dynamic environment. We remain committed to listening to our employees and building these insights into actions. We strive continuously to be a diverse and an inclusive organisation.

ECONOMY & INDUSTRY SCENARIO

Global Outlook

One year into the COVID-19 pandemic, the accumulating human toll continues to raise concerns, even as growing vaccine coverage lifts sentiment. High uncertainty surrounds the global economic outlook, primarily related to the path of the pandemic. The contraction of activity in 2020 was unprecedented in living memory in its speed and synchronized nature. But it could have been a lot worse.

According to International Monetary Fund (IMF), after an estimated contraction of (3.3) percent in 2020, the global economy is projected to grow at 6 percent in 2021, moderating to 4.4 percent in 2022. The contraction for 2020

is 1.1 percentage points lower than projected in the October 2020 World Economic Outlook (WEO), reflecting the higherthan-expected growth outturns in the second half of the year for most regions after lockdowns were eased and as economies adapted to new ways of working. The projections for 2021 and 2022 are 0.8 percentage point and 0.2 percentage point stronger than in the October 2020 WEO, reflecting additional fiscal support in a few large economies and the anticipated vaccine-powered recovery in the second half of the year. Global growth is expected to moderate to 3.3 percent over the medium term—reflecting projected damage to supply potential and forces that predate the pandemic, including aging-related slower labour force growth in advanced economies and some emerging market economies. Thanks to unprecedented policy response, the COVID-19 recession is likely to leave smaller scars than the 2008 global financial crisis. However, emerging market economies and low-income developing countries have been hit harder and are expected to suffer more significant medium-term losses.

Indian Economy

Since the 2000s, India has made remarkable progress in reducing absolute poverty. Between 2011 and 2015, more than 90 million people were lifted out of extreme poverty. However, the COVID-19 pandemic has reversed the course of poverty reduction, at least temporarily. The economic slowdown triggered by the outbreak is believed to have had a significant impact on poor and vulnerable households. After March 25, 2020, when a national lockdown was implemented, economic activity slowed down sharply. As a result, output fell by a whopping 25 percent (year on year) between April and June, the first quarter of the financial year 2021 fiscal year. The informal sector, where the vast majority of India’s labour force is employed, has been particularly affected. As in most countries, the pandemic has exacerbated vulnerabilities for traditionally excluded groups, such as youth, women, and migrants. As growth resumes, poverty reduction is expected to return to its pre-pandemic trajectory. The response of the Government to the COVID-19 outbreak has been swift and comprehensive. A national lockdown to contain the health emergency was complemented by a comprehensive policy package to mitigate the impact on the poorest households (through various social protection measures) as well as on small and medium enterprises (through enhanced liquidity and financial support). To build back better, it will be essential for the country to stay focused on reducing inequality, even as it implements growth-oriented reforms to get the economy back on track. According to World Bank Report, the economy is expected to rebound with a strong base effect materializing in 2022 and growth is expected to stabilize at around 6-6.5 percent thereafter.

The second wave of covid-19 infections in the country has dealt a much bigger shock to the India’s health system than the first wave last year. But the economic shock may be more moderate compared to last year. One big reason for that lie in the lockdown rules this year which were mostly localised and allowed greater relaxations for industrial activity and movement of goods than last year. While the pace of economic recovery is likely to slow down, the impact on the economy will be less severe than last year.

Annual Report 2020-21

Global Sugar

For 2020-21 (sugar year), S&P Platts projects a global deficit of 2.66 Million Metric Ton (MMT), as against a marginal deficit of 0.28 MMT in Sugar year (SY) 2019-20. Due to better realisation for sugar (compared to Ethanol), Brazilian mills maximised their sugar mix, leading to a sugar production of 38.30 MMT (as against 26.76 MMT in SY 2019-20). Indian Sugar production, on a year-on-year basis, is estimated to be higher by 2.5 MMT. Sugar production in European union fell by 2 MMT due to beet crop issues, whereas dry weather in Thailand led to decline in production for the second consecutive year.

According to Czarnikow, sugar consumption was hit in many regions due to COVID-19 related lockdowns, which reduced out-of-home consumption. However, snack food sales increased during this time, reflecting a shift in consumption, as people stayed at home. As the world learned to live with COVID-19 in the second half of 2020-21, sugar consumption started to return to normal.

Global raw sugar trade hit record levels in 2020-21. This was triggered by raw sugar prices trading at 13-year lows below 10c/lb. Some countries like China took advantage of decade-cheap prices and imported large quantities of raw sugar. Demand for refined sugar remained robust in 202021, with most destinations stocking up to avoid on shortages in pandemic. Supply of refined sugar was balanced, due to significantly lower exports from Thailand and EU.

S&P Platts projects a balanced Demand – Supply scenario to emerge in SY 2021-22. Sugar production in EU and Thailand is expected to recover back to normal, adding 4 MMT over SY 2020-21. Brazil is expected to produce 3-4 MMT lower than SY 2020-21 due to dry weather.

Indian Sugar Market

The sugar industry is one of the largest agro-based industries in India. It also happens to be one of the largest process industries of the country with a major contribution to the national economy. With a decent start in the early 20th century, the Indian sugar industry has evolved into one of the most self-sufficient industries. On one hand, it provides a stable and sustainable economic platform for sugarcane farmers, industry personnel, supply chain and consumers. On the other hand, it utilizes all resources and intermediate products and co-products to the maximum extent. What comes from the farm goes back to the farm thereby becoming a sustainable circular economy.

India has of late became the world’s largest sugar producer over-taking Brazil and continues to be the largest sugar consumer. Excess sugar production in the last couple of years over the domestic consumption has resulted in surplus sugar. The primary reason for this exponential rise in sugar production is the introduction of an early maturing cane variety, released in 2009-10. Currently in Uttar Pradesh, the plantation of this variety is above 90%, which has increased the sugar production up to 12 to 13 MMT per year. This coupled with increase in FRP over the years has contributed to the highest-ever sugar production in India during the past

few seasons. In fact, sugarcane is one of the most profitable crop for farmers in India and the return is assured. The increase in the FRP of sugarcane in the last 10 years has outpaced the increase in the MSP of other crops like wheat, paddy, coarse grains and cotton, etc., thereby causing a distortion in the farm economics. This, along with the fact that sugarcane has an assured buyer, is a sturdy crop and gets the promised assured price, is the main reason for the sugarcane to be one of the most preferred crops in the country.

Indian Sugar Production has historically been cyclical in nature with 3-4 years of bumper crop usually followed by 2 years of shortfall. The shortage years helped restore Mills’ health by liquidating excess stocks and lifting market prices for sugar, thereby benefitting farmers. However, this cyclical pattern has been broken of late with sugar production outpacing consumption since the Year 2010-11 except the Year 2016-17 when Sugar production dipped to the level of just 20.3 MMT mainly due to drought conditions.

According to ISMA, India’s sugar output estimate to be lower by 8 Lakh Metric Ton (LMT) at 30.2 MMT for the Sugar season (October-September, 2020-21).The output is estimated after taking into account a likely diversion of about 2 MMT of cane juice and B-molasses for ethanol production. However, this year’s sugar production estimate is higher than the 27.42 MMT tonnes achieved in the 2019-20 sugar season. According to ISMA, the country is expected to have much lower closing stock at the end of the season at around 8.9 MMT as against the opening stock of about 10.7 MMT on October 1, 2020. The government had announced two important policy decisions to improve liquidity of sugar mills during 2020-21 sugar season, by way of announcement of sugar export programme of 6 MMT and upward revision of ethanol prices for the ethanol year 2020-21, which have been welcomed by the industry. However, the industry expectation of the implementation of a crucial policy decision, i.e., increasing MSP of sugar was not met by the Government of India. This policy decision could have improved the liquidity of the mills, enabling them to make timely cane payment to farmers.

The sugar industry continues to grapple with the age-old conundrum of ever-increasing cost of cane with no direct linkage to the sugar selling price. The Government of India needs to work on rationalising the sugarcane pricing policy. Globally, most of the countries follow a cane pricing system where sugarcane price is payable at 56 – 70% of the revenue realized from sugar and / or by–products. Contrary to the above, in case of India, a fixed cane pricing system is being followed in terms of fixation of FRP of sugarcane for every crushing season. The current high FRP fixed by the Government of India erodes almost 85 – 90% of revenue generated by sugar mills towards cane payment, thereby meaning that sugarcane cost is the major contributor in cost of production of sugar in India. As per the data available, most of the competing countries pay around 25 – 35 $ per ton, while average cane price of India is considerably higher at around 42 $ per ton. As a result, other countries like Brazil, Thailand, Australia, Central American countries etc. are comfortably placed w.r.t cane price, which then gives them a significant cost advantage in the international market.

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One more factor of the cost of production of sugar relates to its sucrose content, which gets reflected in the sugar recovery % after accounting for process losses through bagasse, press mud and final molasses. Hence, higher sugar recoveries are dependent not only on the sugarcane varieties or the cultivation practices, but also on the operational efficiencies of sugar mills. The sugar industry has made massive investments in cane development and planting of new improved cane varieties. With broadly the same sugarcane acreage, sugar recovery has increased to about 11.16% from about 10% few years back. The sugarcane farmers have also been benefitted by cane development in terms of increased sugarcane yield per unit area and the per unit cost of production of sugarcane has reduced substantially. The other factor which impacts cost of production of sugar is processing cost which is variable and primarily depends on the factors like capacity utilization, automation, utilization of resources, process being followed, efficiency of a sugar plant etc. Over the past few years, Indian sugar industry has evolved multifold in terms of efficiency and made all efforts for optimum utilization of resources, reduction of processing losses, diversification of products, utilization of by-products with impetus on ethanol production etc.

The Central Government in the last few decades have appointed several high-level committees and almost all of them have recommended a linkage between the sugarcane price and the revenue realised by the sugar mills based on Revenue Sharing Formula (RSF) supplemented by a Price Stabilization Fund (PSF). The success of any rationalised cane pricing system will depend upon fixing the MSP of sugar at a reasonable level adequate to cover the FRP and a complete stoppage of any State fixing SAP (State Advisory Price) or any other price different to the FRP fixed by the Central Government.

Government of India – Policies affecting sugar industry

Sugar & Sugarcane:

Maximum Admissible Export Quota (MAEQ):

The Central Government on 29[th] December 2020 issued a notification to facilitate export of sugar during the sugar season 2020-21 along with financial assistance. However, the Government notified lower amount of financial assistance compared to 2019-20 sugar season as detailed below:

==> picture [229 x 156] intentionally omitted <==

----- Start of picture text -----

S. SY 2020-21
Particulars
No. ( ` / MT)
1 Marketing including handling, 1,600
quality up-gradation, debagging
& rebagging and other
processintg costs
2 Internal transport and freight 2,400
charges including loading,
unloading, and fobbing etc.
3 Ocean freight against shipment 2,000
from Indian ports to the ports of
destination countries etc.
Total 6,000
----- End of picture text -----

Further, Department of Food & Public Distribution introduced a new feature in MAEQ Scheme of 2020-21. The new feature permits sugar mills to exchange their MAEQ with domestic quota of other sugar mills.

In addition to the above, the Central Government on 13[th] March 2021, issued a notification permitting export of raw / white sugar to refinery in Special Economic Zone (SEZ). As per the notification, supply of raw / white sugar by sugar mills to SEZ refinery will be considered to be export for the purpose of fulfilment of MAEQ allocation for sugar season 2020-21. The notification further entitles sugar mills to receive ocean freight for exports to SEZ refinery.

2. Sugar Development Fund Rules, 1983 [SDF]:

Vide notification dated 24-03-2021, the Central Government amended the Sugar Development Fund [SDF] Rules, 1983. The amendment had paved way for private & public sugar mills which are potentially viable sick sugar undertaking to avail loans from SDF for modernization or rehabilitation of plant & machinery for production of ethanol from molasses or sugarcane juice or for bagasse-based cogeneration plant. This is, however, subject to certain conditions mentioned in the amendment.

Vide notification dated 31-03-2021, the Government of India, has communicated that it has been decided to discontinue the financing of expansion projects through SDF, for a period till 31-03-2022.

Sugarcane (Control) Order, 1966:

3.

The Central Government has amended the provisions of the Sugarcane (Control) Order, 1966 relating to Industrial Entrepreneur Memorandum [IEM]. The Time limit for taking effective steps and Time limit for commencement of production of sugar in a new factory after filing IEM has been enhanced to 3 years and 5 years respectively as against the earlier requirement of 2 years and 4 years.

The Central Government on 22[nd] October 2020, amended Clause 3(1) of the Sugarcane (Control) Order, 1966. Through this amendment, State Governments have been empowered to fix mill wise FRP for the sugar mills wherein the concerned sugar mill is located. The amendment is effective from the 2019-20 sugar season.

FRP for SY 20-21:

The Central Government has fixed FRP for sugarcane, for sugar season 2020-21 as under:

i. ` 2850/MT for a basic recovery rate of 10%
ii. A premium of ` 28.50/MT for every 0.10 percentage point increase above 10% recovery.
iii. Proportionate reduction in FRP @ ` 28.50/MT for every 0.10 percentage point decrease in recovery for those mills whose recovery is below 10%, but above 9.50%.
iv. ` 2707.50/MT for mills having a recovery of 9.50% or less.

Annual Report 2020-21

Power:

Electricity (Late Payment Surcharge) Rules, 2021:

On 22nd Feb 2021, the Ministry of Power notified the Electricity (Late Payment Surcharge) Rules, 2021. The Rules provides for Late payment surcharge (LPS) by a distribution company to a generation company for delay in payment of monthly charges beyond the due date for all Power Purchase Agreements entered under Section 62 of the Electricity Act, 2003. Where an agreement does not specify due date for payment, 45 days from the date of presentation of bill by generating company shall be construed as due date. The rules debar a generating company from purchasing power if payment including LPS remains outstanding for a period beyond 7 months from the due date.

Distillery:

Scheme for extending fnancial assistance to set up distilleries:
The Central Government on 14th January 2021 notified a Scheme for extending financial assistance for enhancement of ethanol distillation capacity or to set up distilleries for producing 1st generation (1G) ethanol from feed stocks such as cereals, sugarcane, sugar beet etc. The quantum of financial assistance provided is interest subvention @ 6% p.a. or 50% of rate of interest charged, for a period of 5 years including one year moratorium. Further interest subvention will be available only if distilleries use dry milling technique to produce Dry Distillers Grain Soluble (DDGS).

The Central Government also notified another New Scheme for extending financial assistance to sugar mills for enhancement and augmentation of ethanol production capacity-2020. The assistance under the scheme will be utilized by sugar mills for:

i. Increasing ethanol production by enhancing the no. of working days of existing distilleries in a year by installing new incineration boilers or by adoption of any other methods approved by Central Pollution Control Board (CPCB) for Zero Liquid Discharge (ZLD) in distillery.
ii. Augmentation of ethanol production capacity by setting up new distilleries attached with sugar mills including expansion of the capacity of the distillery attached with the sugar mill.
The Central Government on 31.12.2020 requested the chief Secretaries of all the States / Union Territories to extend the permission accorded to distilleries for manufacture of Hand sanitizers by one more year from 1.1.2021.
The Cabinet Committee of Economic Affairs (CCEA) has increased the prices for Ethanol for the Ethanol Year 2020-21 (December 20 - November 21) as per details given below:

details given below:
			`/Litre
Ethanol produced from	New price from 1.12.20	Price upto 30.11.20	Increase
Heavy or fnal molasses	45.69	43.75	1.94
Heavymolasses	57.61	54.27	3.34
Sugar syrup	62.65	59.48	3.17

In addition to the above, Government of India, reduced the penalty payable for non-supply of ethanol to 1% of delivered price from 5%. Further the Government has reduced the quantum of security deposit (to be paid by distilleries to OMCs) to 1% from 5%.

Others:

Plastic Waste (Management and Handling) Rules, 2011:

The Ministry of Environment, Forest and Climate Change, notified the Plastic Waste Management (Amendment) Rules 2018, vide Notification dated 18[th] March, 2018 in supersession of the Plastic Waste (Management and Handling) Rules, 2011.

The Legislation states that Producers/Brand Owners who introduce plastic carry bags, multi-layered sachets, pouches and packaging into the marketplace need to submit an Extended Producer Responsibility (EPR) as per the rules and obtain necessary approvals from the authority (SPCB/CPCB) to dispose the waste accordingly.

Food Safety & Standards Act, 2006:

Food Safety & standards Authority of India launched FLRS (Food Licensing and Registration system) an online system. All Central Licenses are issued online pan India through FLRS system with minimum documentation. All the manufacturers, traders, restaurants who are involved in food business must obtain a 14-digit registration or a license number through FLRS, which must be printed on food packages as well as displayed on the prominent place.

Ethanol

Molasses is a viscous by-product obtained from raw sugar during the manufacturing process. Cane-based ethanol can be produced in three different ways – directly from cane juice, and from B-heavy and C molasses. In 2003, the Government of India (GOI) launched the Ethanol Blending Programme (EBP) on a pilot basis, which was subsequently extended to the notified 21 States and 4 Union Territories to promote the use of alternative and environment-friendly fuels. The programme is a part of the long-term strategy to reduce India’s dependency on crude imports and insulate

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the nation from global oil price volatility as well as give the domestic sugar sector a boost by diverting excess sugar stocks towards ethanol manufacture.

The Ministry of Petroleum & Natural Gas have released the Ethanol Procurement Policy on a Long-Term Basis under EBP. The salient features of this policy include fixing the annual procurement quantity as estimated by OMCs to remain firm for ESY (Ethanol Supply Year: Dec to Nov). The Government of India has been taking several initiatives from time-to-time to encourage the ethanol production in the country. The production capacity has also seen a significant augmentation and looking at the pace at which it is being augmented, it is expected that the industry will be able to meet the demand of ethanol to achieve the target of 20% blending by 2023. Since the blending at 20% will require around 1000 crore litres, it is required by all the stakeholders to be fully geared up for such a large production, its movement across the country and also blending by OMCs in all their depots. The government needs to take certain additional measures, which will facilitate to achieve its ambitious target of 20% blending target by 2023. The Government of India should announce a pricing policy of ethanol and its linkage to the price of raw materials / feedstocks / sugar etc. which if made available will not only build confidence amongst the manufacturers but will also encourage them to invest in the manufacture of ethanol. There should be fixed dates for the floating of EOI by OMCs to give clarity and assurance to the distilleries, which will enable them to plan their production and supplies.

At present, the lifting of ethanol is not at par with the production and contracts of ethanol. Hence, there is a need to increase the blending percentage in the surplus states. The Government of India should also give priority to ethanol manufactured from sugarcane juice and B-Heavy molasses over the ethanol manufactured from other sources which will encourage the ethanol manufacturers to manufacture ethanol from sugarcane juice and B-Heavy molasses. This will also meet the aim of the government to reduce the sugar stock. Permission should also be given to manufacture Rectified Spirit (RS) from sugarcane juice and / or B-Heavy molasses so that the sugar mills can store the RS so manufactured and after converting it into ethanol, the same may be supplied to the OMCs, during off-season of sugarcane crushing. This will also help in the supply of ethanol during monsoon months, when most of the distilleries are closed.

The movement of ethanol across the country is difficult and expensive. There is a need to augment the Infrastructural development at the depots of OMCs so that they can cope with requirement of tendered / contractual quantities. The forward-looking policy of the Government of India and timely action in various areas, augurs well for the ethanol manufacturers in the long run.

Cogeneration

Bagasse is the fibrous matter that remains after sugarcane stalks are crushed to extract their juice and is a by-product generated in the process of manufacture of sugar. It can either be sold or be captively consumed for generation of steam. It

is currently used as a biofuel and in the manufacturing of pulp and paper products and building materials. The bagasse produced in a sugar factory is however used for generation of steam which in turn is used as a fuel source and the surplus generation is exported to the power grids.

For each 10 tonnes of sugarcane crushed, a sugar factory produces nearly 3 tonnes of wet bagasse. Since bagasse is a by-product of the sugar cane, the quantity of production in the country is in proportion to the quantity of sugarcane produced.

The power produced through cogeneration substitutes the conventional thermal alternative and reduces greenhouse gas emissions. In India, interest in high-efficiency bagassebased cogeneration started in the 1980s when electricity supply started falling short of demand. High-efficiency bagasse cogeneration was perceived as an attractive technology both in terms of its potential to produce carbon neutral electricity as well as its economic benefits to the sugar sector. In the present scenario, where fossil fuel prices are shooting up and there is a shortage, co-generation appears to be a promising development. The thrust on distributed generation and increasing awareness for cutting greenhouse gas emissions increases the need for cogeneration.

The electricity production through cogeneration in sugar mills in India is an important avenue for supplying lowcost, non-conventional power. However, several financial, regulatory, and technical challenges are required to be overcome for realizing this potential.

BUSINESS OVERVIEW

Sugar

During the year, the sugarcane availability in Tamil Nadu (TN) units was better as compared to the previous year. The cane development activities initiated by the Company, including incentivising farmers in all command areas has helped to increase the area under sugarcane cultivation. In TN, despite COVID-19 lockdowns, there was an improvement in cane crushed at 16.42 LMT @ 8844 Tons of Cane per Day (TCD) per day as against 13.77 LMT @ 8863 TCD per day in the previous year. The average recovery recorded was at 8.71% as against 8.69% in the previous year. The recovery was better due to the increasing percentage of the HSV varieties as well as supply of quality seeds through clean seed programme. In addition, the agro climatic condition of the year, also favoured the increase in the recovery. This would prove beneficial in the long-term to the farmers and the industry at large. During the year, the Company closed its Pettavaithalai Unit, which was not in operation for several years due to the unavailability of adequate cane in the area, affected by continuous drought year-after-year.

In Karnataka (KN), majority of the farmers depend on the canal water for irrigation. Since good rainfall was received across all the KN Units, there was an increase in plantation for the crushing season 2020-21. In KN, the cane crushed was higher at 19.26 LMT as compared to 17.62 LMT in the previous year. The average recovery was at 11.72% as against 11.35% in the previous year.

Annual Report 2020-21

During the year, the Company took a number of initiatives to streamline and improve the cane procurement in KN which has always been reeling under the pressure of a heightened competition and the menace of unauthorized cane poaching. Efforts were made to reduce the harvesting & transportation (H&T) advance, yard balance, vehicle waiting hours and continuous cane supply etc. all of which resulted in improved recovery. Early start of the units helped the Company to ensure adequate reporting of H&T gangs. Centralized H&T planning and execution for all the 3 units of KN facilitated smooth interunit movement and reduced yard balance. Deployment of mechanical harvesters was increased to cover a large part of the area to mitigate the problem of shortage of harvesting labour. Prompt Cane payment even before the statutory deadline of 14 days also helped the Company to procure cane till end of the season across all KN Units and instil confidence in the minds of the farmers.

During the year, despite stiff resistance from various quarters, the Company’s units in KN maintained its stand of paying the statutory mandated FRP while a few neighbouring mills reportedly paid higher price. In spite of competition paying higher price than the FRP, the Company procured maximum cane till the end of the season across all the KN units. This was made possible by timely payment to all the farmers without any arrears. The Company is proud in its endeavour of paying its valuable suppliers, the farmers on time over the years , which has helped the Company in building trust and credibility in the minds of the farmers.

With respect to the Andhra Pradesh (AP) unit, the cane crushed was lower at 4.00 LMT as compared to 5.33 LMT in the previous year. The average recovery was at 9.81 % as against 8.83% in the previous year. The recovery was better due to increased percentage of HSV varieties as well as supply of quality seeds through clean seed programme. Added to this, the favourable agro climatic condition of the year facilitated the increase in recovery.

The overall cane crushed by the Company as a whole, was at 39.69 LMT as against 36.72 LMT in the previous year. The average sugar recovery was at 10.28 % as against 9.99% in the previous year.

The sustained availability of cane being a major concern, a number of initiatives are being taken up by the Company including, incentivising farmers for cane planting, supply of clean seed, providing polybag seedlings, providing resources for drip and micro irrigation and facilitating the various agronomy services through agencies and agri service providers. As part of the farmer-centric and inclusive strategy, the Company operates soil testing labs which provide ‘soil health cards’ to farmers for improving soil health and fertility. These initiatives will help in increasing the yield per acre, which in turn will increase the income per acre to the farmer through right application of fertilisers and other nutrients to the soil. To interact with the farmers throughout the life cycle of cane crop, Farmer Connect App has been effectively utilised in TN, AP & KN and a large number of farmers have been registered by using the Farmers App.

During COVID-19 lockdowns various initiatives were taken to reach farmers through voice drops and canvassing farmers through voice call. In March 2021, a new initiative of Call Centre for Cane operations was established to reach farmers of TN and AP, which is the first of its kind in sugar industry. Through this app, the cane and extension team are in regular touch with the farmers during the entire life cycle of the crop and assist the farmers immediately as and when the need arises. The Company has been working closely with the Government of India on a number of subsidy schemes to promote drip irrigation, and Sustainable Sugarcane Initiative (SSI), etc. The company has embarked on a program of ensuring clean seed for planting. In TN and AP, the 3-Tier nursery programme has been strengthened and varietal purities are being improved through quality seed sourcing from Breeding Institutes and Company’s own tissue culture seedling production centres. In TN and AP, seedling production through shade nets were effectively utilised. All these activities will pave the way for yield improvement and ensure sustained sugarcane availability in the years to come.

Price - Sugarcane & Sugar

For the Sugar Season 2020-21, the Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution, fixed the FRP for sugarcane at 285 per quintal for a basic recovery of 10.00% and a premium of 2.85 for every 0.1% increase in the recovery rate, as recommended by the Commission of Agricultural Costs and Prices (CACP). The government has also made a provision for reduction in FRP by 2.85 per quintal for every 0.1 percentage point decrease in recovery, in respect of those mills whose recovery is below 10 per cent but above 9.5 per cent. However, for mills having recovery of 9.5 per cent or below, the FRP is fixed at 270.75 per quintal.

India’s sugar production soared by 20% to 233.77 LMT in the first five months of 2020-21 SY ending September on higher cane production, as compared to 194.82 LMT in the corresponding period of the previous year. During October 2020 and February 2021 period, sugar production in Maharashtra rose to 84.85 LMT compared with 50.70 LMT in the year-ago period. In Uttar Pradesh, sugar output was lower at 74.20 LMT till February of the Sugar Year as compared with 76.86 LMT in the previous year. Sugar production in Karnataka increased to 40.53 LMT from 32.60 LMT. With such increase in production, the ex-mill prices in most of the states were under pressure and beginning to show a downward trend and average prices in Tamil Nadu were hovering between 3,200–3,225 per quintal, while in northern states the ex-mill prices were in the range of 3,160–3,180 per quintal. Whereas ex-mill prices in Maharashtra and Karnataka were reeling at MSP of sugar. The prices were almost ` 80-100 per quintal less than what it was a year back during the corresponding period. This low sugar prices, much below the cost of production for last several months, adversely affected the liquidity of mills and their ability to pay the FRP to sugar cane farmers. It was feared that if such situation persists then cane price arrears will jump very fast to uncomfortable levels, and the Industry recommended to the government for an upward revision of

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sugar MSP, which was last revised two years back when the FRP of sugarcane was at 275 per quintal. The government has already increased the FRP of sugarcane by 10 per quintal for the current year and there is need to increase the MSP of sugar

after considering the increased FRP of sugarcane for 2020-21, which is in the interest of the industry and the farmers. Even Niti Aayog had recommended one time increase of MSP of sugar to 33 per kg from 31 per kg.

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Sugar Price - 2020-21
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Manufacturing Operation:

The Company continues its expedition towards achieving manufacturing excellence and achieve better efficiencies in steam, energy, and chemicals consumption besides reduction of total losses. The Company has accelerated its cost optimization drive across the value chain to further improve its operational efficiency. The execution excellence initiatives pursued to optimize efficiencies, reduce cost and eliminate wastage has been adopted across functions and processes. TPM deployment has been aggressively pursued by the Company. The initiatives on safety, environment, and quality under TPM helped the Company to achieve manufacturing excellence, operational safety and higher level of quality awareness. The Company continues to accord the highest priority to manufacturing excellence. Several manufacturing units of Company competing with both the best within and outside the industry, received various awards and accolades during the year bearing testimony to your Company’s focus on manufacturing excellence, safety and quality.

The Company has ensured compliance with stipulated parameters with respect to emission and effluent generation with stringent online monitoring systems which are connected online to the SPCB/ CPCB monitoring systems. During the year, the Company set up a 60 KLPD greenfield distillery plant at Bagalkot Unit. The alcohol production capacity was enhanced to 48 KLPD from 40 KLPD at Sankili. Consequent to closure of the sugar factory at Pudukkottai in TN, the Company has decided to move the assets to Haliyal

unit in KN, increasing the unit’s crushing capacity from 7500 TCD to 11500 TCD.

The Company continued to pursue its ‘go beyond’ strategies to optimise efficiencies, reduce cost, eliminate wastage and achieve stretch targets for growth. Some of the initiatives, which were undertaken during the year were as follows:

Nellikuppam

At the refinery, Fine Course Sugar production was improved to 32% from 28% to increase the supply to pharma customers.
At the distillery, spent-wash clarifier system was erected and commissioned, resulting in reduction of Spent wash Total Suspended Solid level to 45%.
Reduction of sulphuric acid consumption in integrated evaporator by repositioning the stripper top tray and Non Condenable Vapour Coolers resulted in acid saving of 1500 Liters/day.

Sankili

Secondary juice was diverted and converted as syrup for the production of Ethanol.
The erection work of the K Ash Plant was completed at Sankili, and the plant commissioning activities are under stabilization.

Annual Report 2020-21

Ramdurg

Obtained validation report for B Heavy production from S.Nigalingappa Sugar Institute, Belagavi and certification for B Heavy production from State excise.

Haliyal

Molasses tank was erected for storage of molasses at higher crushing capacity and syrup diversion for ethanol production.

Bagalkot

Retail packaging system was commissioned and supply commenced.
Commissioned Bagasse Pellets manufacturing facility.

Sales and Marketing

As a part of long term strategy, the company continues to de-risk itself from the cyclicality of the sugar business by way of value addition, and increasing the volume proportions sold in Institution and retail segments. In this process, the Company has been diligently working on evolving several strategies to meet the changing aspirations of the consumers and customers. The Company continued to focus in strengthening its presence in the branded sugar retail market to benefit from higher realizations, healthy long-term prospects and a more stable realization for its sugar.

This effort was ably enabled by rising disposable incomes, higher awareness of consumers and Increasing urbanization. The pandemic also acted as a catalyst in accelerating the consumers to move towards branded commodities and staples by increasing hygiene quotient and higher preference towards untouched and clean packed sugar. Another fillip to the efforts of the organization has also come in the form of supply chain enhancements towards the Modern Trade channel with some consolidations and rapid expansion to Tier 2 towns.

The Company continues to seize the opportunity by investing in creation of vibrant brands, consumer-centric products, and a robust supply chain to enable the long-term shift towards consumer centric business. With technology and digitization rapidly increasing and changing consumer purchase behaviours and patterns, the Company is constantly innovating its approach to the consumer and providing them with a differentiated product portfolio. The Company seeks to significantly scale up the retail business with deep consumer insight, robust innovations, strong brand building and a pervasive distribution network.

The brand of brown sugar Amrit continued to grow with strong consumer demand generation and intense focus on distribution. The Company has made small yet confident investments in media to create higher awareness for the brand and to build a strong consumer franchisee. The Company’s retail product portfolio is now well poised to cater to the large consumer base starting with a basic branded sugar to a highly innovative Low GI sugar. The Company aims to straddle the entire benefit ladder for the

sweetener’s category with strong product development and rigorous brand building efforts. The Company has registered a growth of 20% in its retail sales in this challenging year.

The Company continued its strong performance in the Institution segment ably enabled with stringent quality systems, global certifications, high standards of hygiene and process and the robust ability to customize products for the customers. With the above, the Company has gained the leadership share in many customer segments and today supplies to Companies operating in various categories like beverages, foods, confectionary, dairy, bakery and pharmaceuticals.

Quality

The focus of the Quality function this year was towards implementing the COVID-19 protocol as laid down by the Government of India as well as some Institutional Customers and for developing site specific protocols to ensure smooth functioning of the plant operations and dispatches to customers. Parallelly, the Company continued to focus on the retail and institutional segment with quality product and processes during the crushing season and thereafter.

During the year, the units at Nellikuppam, Bagalkot and Sankili were accredited with FSSC 22000 version 5 from the DNV Certification Body. These units were also certified for ISO 9001:2018 versions of quality management system by the said certifying body. As per the customer requirements, the units at Nellikuppam and Haliyal prepared and complied with the audits, recertified for Halal and Kosher certifications.

The Company’s refinery unit in Nellikuppam plant successfully re-qualified in sustaining its GMP certifications to continue to supply drug manufacturing customers and other Pharmacopeia accreditations of Indian, European, United States, Japanese and British. During the year, the Company in its endeavour to provide quality products to customers, started packing retail sugar by adopting sulphur free process. In the Sankili unit, Integrated Management System Certifications which includes, Quality Management System ISO 9001:2015, Environmental Management System ISO 14001:2015 and OH & S ISO 45001:2018 were recertified. Nellikuppam and Haliyal re- qualified for SMETA 6.0 (Sedex Members Ethical Trade Audit). Many of the Company’s units during the year had to go through remote virtual audits due to the pandemic.

In order to continuously focus on quality and create awareness among different stake holders, the world quality week celebration with the theme of “Creating customer value” was conducted across all units this year.

Research & Development and Extension Services

The Company has continuously developed innovative cuttingedge technologies to enhance cane yield & productivity in the sugarcane cultivation, which is in line with the company’s strategy for sustainable cane production. The Company is the only sugar manufacturer in India and among the select few in the world with a dedicated Cane Breeding and Research

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Centre, recognised by the Department of Scientific and Industrial Research (DSIR), Ministry of Science & Technology, Government of India. The Company’s R&D centre is one of the national centre for testing government research station varieties (AICRP- All India Coordinated Research Programe - Sugarcane) to select the superior sugarcane varieties for cultivation and this programe is continued under the guideline of ICAR (Indian Council Of Agriculture Research).

During the past two decades, through sugarcane breeding program, the company has developed more than twelve high yielding and high sugar varieties for the benefit of farming community. The government’s recently released super early maturing variety Co 11015 is under large scale multiplication in TN and AP units and quality seed cane is being multiplied through tissue culture lab for the farmers of the Company as well as and other sugarcane farmers. To retain the farmers in cane cultivation and to realize good yield in their farms, location specific varieties were recommended for the units in TN and AP. Due to this right intervention, farmers average cane yield has increased. Overall, the sugar recovery has also witnessed increasing trend. To supply disease-free quality clean seed cane for the three-tier nursery programe, tissue culture-based nurseries are developed in company’s captive farms and quality seed cane supply is ensured to the farmers.

The Company has entered into collaboration with a company in Israel to measure the irrigation water and carbon footprints of sugarcane and also work out mitigation plans for efficient water usage. This autonomous irrigation system regulates the irrigation based on crop demand, relive water stress throughout crop cycle and minimize human intervention, which enables better yield and sucrose accumulation. The results in the first year has indicated savings of irrigation water in sugarcane cultivation without compromising the yield and further trials are on to reconfirm the results.

The Company’s R&D centre is a pioneer in managing the sugarcane pest through bio-control agents and a support for sustainable agriculture. Recently, two new novel technologies were developed in-house as biocontrol measures viz., Pheromone Sticky Trap and EPN (Entomo Pathogenic Nematode) which were distributed to larger no. of farmers for use as eco-friendly pest management in sugarcane cultivation. In the Company’s command area, pest and disease management initiatives are implemented based on an integrated eco-friendly concept, with biocontrol agents produced from in-house units and through promotion of rural entrepreneurs thus bringing inclusiveness among the farming community in technology transfer. Digital based new projects were initiated to manage the sugarcane pest and disease monitoring through remote sensing to take necessary early measures for minimizing the crop damage.

A collaborative project on integrated Decision Support Tool (DST) was launched to develop real-time solutions for the farmers for precision farm management.

To mitigate the shortage in agriculture manpower, the area under mechanical harvesting has been increased and suitable technologies are adapted in farmer’s fields to establish scientific and sustainable cultivation practices such as wider row spacing, pro-tray, single bud seedling planting

and inter-cropping with pulses. More Agri Service Providers (ASP) are engaged for mechanised inter row cultivation and ratoon management practices to reduce the manpower in cane cultivation and also to improve productivity.

Through the cane extension wing, Sustainable Sugarcane Initiative (SSI) improved cultivation method was adapted by the farmers in large scale, which increases the productivity of sugarcane by using seedling for planting and reduced usage of the seed cane and water. To enable the farmers to adopt this practice, sugarcane seedlings production was organized through local entrepreneurs and 105 Lakh seedlings were distributed to farmers to produce better crop and achieve good yield. The research and development and extension services division of the company is on a mission mode for cane development and benefit the farmers, our most valuable stakeholder.

Value Added Projects

In India most of the distilleries have installed incineration boiler and started operation. The ash generated from the boiler contains potash between 5 to 12%. As per FCO norms, the potash content in potash fertilizer should be 14.5% as water soluble potash. The Company has undertaken a pilot study to establish the extraction of potash from ash. As the opportunity for potash fertilizer availability in India is plenty and since the Company is already a pioneer with established technology & product, the Company proposes to carry out a pilot study on this concept.
The Company is exploring opportunities to convert sugar, distillery & nutra by-products & rejects into value added products suitable for aquaculture, poultry & animal husbandry.
The Company has developed in-house a nutrient rich eco-friendly soil less media from sugarcane bagasse for the international and domestic market. This green grow media developed from bagasse through a mechanical process by sustaining EC and PH, is suitable to grow all kinds of plants conserving soil and water and to improve the fertility of the soil and productivity. The Company has already designed the pilot scale plant and started trial production. Green grow media samples of 100 MT in different combinations has been produced and demonstration plots have been laid out in tea, pepper, sugarcane, avocado, mushroom, vegetable, ornamental crops, avenue tree crops and cut flower nurseries in India. This has also been demonstrated to improve soil & water conservation in neem, avocado and pomegranate plantations.
The Company has developed mineralised salt lick for small ruminants from Nutra process waste with the collaboration of Tamil Nadu University of Veterinary and Animal Sciences, Madhavaram (TANUVAS).
The Company has signed MOU with TANUVAS to develop nutrient rich dry fodder block for cattle. Animal adaptation trial has already been completed.
A project to develop Bioplastic i.e degradable mulching sheet and poly bags from Bagasse is under progress.

Annual Report 2020-21

Sugar Division-Performance

Operational Performance

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Particulars 2020-21 2019-20
Cane Crushed (LMT) 39.69 36.72
Recovery % 10.28 9.99
Sugar Produced (LMT) 3.92 3.60
Power Generated (Lakh Units) 3766 3572
Alcohol Produced (Lakh Litres) 633 634
Sugar sold (LMT) 4.00 3.73
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Financial Performance

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(` Lakh)
Sugar Cogen Distillery Total
Particulars 2020-21 2019-20 2020-21 2019-20 2020-21 2019-20 2020-21 2019-20
Revenue 1,501 1377 142 131 362 357 2,005 1865
EBITDA 135 53 11 (5) 51 79 197 127
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** Earnings before interest, tax, depreciation and amortization.

The sugar segment constituted the largest share of the Company’s revenues. The segment contributed 74% of the Company’s turnover during 2020-21 against 73% in 201920. Revenues from the sugar segment during 2020-21 was at 1,501 Crore as against 1,377 Crore in 2019-20.

Segment wise Performance & Operational Highlights

Sugar

The Company has six sugar plants with a combined capacity of 40300 TCD. During the year, the total cane crushed in Tamil Nadu plants increased to 16.42 LMT as against 13.77 LMT in the previous year. There was a marginal increase in the overall recovery in TN from 8.69% in 2019-20 to 8.71% in 2020-21. Crushing in the Company’s Sankili plant at AP was declined to 4.00 LMT as compared to 5.33 LMT, with a recovery of 9.81% as against 8.83% in the previous year.

The total cane crushed by the units in KN was at 19.26 LMT as against 17.62 LMT in the previous year. The average recovery was at 11.72% as against 11.35% in the previous year.

The overall cane crushed by the Company was 39.69 LMT in 2020-21 as against 36.72 LMT in the previous year. The weighted average recovery of the Company increased to 10.28% from 9.99% in the previous year.

During the year 2020-21, the Company produced 3.92 LMT and sold 4.00 LMT of sugar as against 3.60 LMT and 3.73 LMT respectively in the previous year.

Cogeneration - Power

The Company has an aggregate cogeneration capacity of 140 megawatts. Of the total power generated, the Company exports nearly 52% to the state electricity grid. The cogeneration segment accounted for 7% of the Company’s revenues during the year, the same as in 2019-20. Revenues from the segment during 2020-21 stood at 142 Crore as against 131 Crore in 2019-20.

Tamilnadu:

The units in TN generated 1,549 Lakh units and exported 795 Lakh units of power during the year as against 1,554 units and 793 Lakh units respectively in the previous year.

Karnataka:

The cumulative power generated and exported by the KN Plants stood at 1,939 Lakh units and 1,177 Lakh units as against 1,653 Lakh units and 960 Lakh units respectively in the previous year. The increase was mainly on account of higher cane crushing.

Andhra Pradesh:

The unit in Sankili generated 278 Lakh units and exported 98 Lakh units as against 364 Lakh units and 121 Lakh units respectively during the last year.

Distillery

The Company has four distilleries located at Sankili, Haliyal, Nellikuppam and Sivgangai engaged in the production of industrial alcohol and ethanol with a cumulative capacity of 237 kilolitres per day. Almost the entire distillery capacity of the Company is dedicated towards ethanol & ENA (Extra Nutral Alcohol). During the year, EID Parry commenced activities for setting up of a 60 KLPD green field distillery at Bagalkot which was commissioned in March, 2021 and commenced commercial production on June 30, 2021.

The distillery segment contributed to 18% of the Company’s revenues as against 19% in 2019-20. Revenues from the distillery segment during 2020-21 stood at 362 Crore as against 357 Crore in 2019-20.

The Company’s alcohol production saw a marginal dip at 633 Lakh liters in 2020-21 as against 634 Lakh liters in 2019-20.

Expansion of the existing distilleries at Nellikuppam, Haliyal and Sankili and the commissioning of a new distillery at

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Bagalkot are part of the Company’s strategy for enhancing the ethanol stream as a revenue earner, subject to sustained availability of molasses.

Performance Analysis, Opportunity & Threats

The Company is a large sugar producer and among the top five sugar producers in South India. It has the capacity to crush 40,300 MT per day (TPD) of sugarcane, co-generation units of 140 megawatt, distilleries with a capacity of 237 Kilo litres per day, and a sugar refinery of 3000 TPD (through its wholly owned subsidiary, Parry Sugars Refinery India Pvt Ltd (PSRIPL)). Large scale, integrated operations with the power and distillery business along with nutraceuticals provide modest cushion to the Company from the sugar business cyclicality. Sugar crushing in Tamil Nadu has continuously declined over the past 3-4 years and is expected to marginally improve in the current sugar season. Lower cane availability and volatile sugar prices have led to moderation in the Company’s performance in recent past. However, distillery business has helped partially stem the impact of weak performance of the sugar businesses. While the input cane prices are driven by the government, sugar selling prices of late are also controlled by the Govt by announcing MSP and regulating the export of sugar leading to uncertainty and volatility in the profitability of the sugar industries. Besides, the government has been regulating the domestic demandsupply through restrictions on imports and exports, and stock holdings. Regulatory mechanisms and dependence on monsoons have rendered the sugar industry more uncertain.

The industrial usage of sugar, which accounts for nearly twothirds of the annual demand of around 26 MMT, may be impacted as several food manufacturing units – including soft drink beverages, chocolates, confectionery, bakeries, hotels, restaurants and cafes – are either shuttered or running at low capacities due to pandemic. As a result, overall domestic demand is expected to be lower by 1.5-2 MMT tonne in the current sugar season (SS) 2021.

Further, the oil marketing companies may reduce ethanol offtake because the lockdown due to the COVID-19 pandemic has lowered demand for petrol and diesel. Besides, they have limited storage capacity available. Production of potable alcohol from ethanol will also be impacted because of lower demand from distillers.

The increase in sugar production in the country is in addition to the opening stock of about 10.6 MMT for the year 202021 which is estimated to bring sugar availability in India to 40.8 MMT during the year. After considering domestic consumption of around 26 MMT(as per ISMA) and exports of about 6 MMT (target set by government), India will have closing stock of around 8.8 MMT for the year 2020-21. The domestic sugar prices are unlikely to witness any major improvement amid huge carry-over stocks and the prices are expected to remain largely range bound only backed by MSP of `31 per kg. The domestic prices are unlikely to increase unless sugar MSP is hiked by the government.

Though the industry recommended to Government of India for an upward revision of sugar MSP, which was last revised

two years back when the FRP of sugarcane was at 275 per quintal, the government has not acceded to the demand of the industry. The government has already increased the FRP of sugarcane by10 per quintal for the current year and there is an imminent need to increase the MSP of sugar after considering the increased FRP of sugarcane for 202021, which is in the interest of the industry and the farmers. But for this, sugar realisations would have been better. Going forward, global harvest trends are pointing at lower sugarcane yield in Brazil and other key sugar producing countries. This augurs well for India as lower output from these countries will keep supply tight and global prices firm.

The Company’s financial performance remained moderate for the financial year as cash accruals were impacted following subdued performance of the sugar business. Further, stockholding restrictions imposed by Government led to pile up of inventory, a large portion of which was funded through bank borrowings. However, the financial risk profile has gradually recovered in fiscal 2021 with better realisations from domestic sugar and distillery businesses.

The company is expected to incur a capex of about 46 Crore during 2021-22 towards expansion of the Haliyal unit. The Haliyal expansion project which was proposed to be commissioned last year was delayed due to the disruptions caused by the onset of COVID 19. The project is expected to be commissioned during the 2021-22 sugar season and will improve the Company’s revenue and profitability. The Distillery at Bagalkot will become fully operational during 2021-22, enhancing the Company’s distillery capacity by nearly 25%, adding to the Company’s ethanol manufacturing facility to take advantage of the Govt’s ethanol blending policy. The expected dividend flows from subsidiaries and possible proceeds from sale of surplus assets are likely to help in operational cash flows. During the year, the Company prepaid its debt of 407.54 Crore from the proceeds of the sale of 4% stake held in its subsidiary, Coromandel International Ltd. The Company has now no long-term debts, which places it in a comfortable position and has allowed the Company to substantially reduce its interest costs. Lower interest costs, operational efficiency and firm international sugar prices augur well for the Company in the medium to long term.

Outlook

Sugar Price

As per ISMA, sugar output in India is expected to increase by 10.2% year on year to 30.2 MMT during the sugar season (October-September) 2020-21 on account of higher production in Maharashtra and Karnataka. This estimate is after excluding sugar diversion of about 2 MMT towards ethanol production during the year. The rise in production is in addition to the opening stock of about 10.6 MMT for the year 2020-21 which is estimated to bring sugar availability in India to 40.8 MMT. After considering domestic consumption of around 26 MMT and exports of about 6 MMT, India will have closing stock of around 8.8 MMT for the year 2020-21. This stock again will be more than the normative requirement of 2-3 months stock for the next sugar season. However, it will

Annual Report 2020-21

be about 17% lower than the previous year’s closing stock of 10.6 MMT.

In February 2020, the white sugar prices in London and the raw sugar prices in New York, which averaged at USD 414 per tonne and US cent 15 per lb respectively, fell by 16%28% in April 2020 due to COVID-19 disruptions. Following this, the international sugar prices of both the varieties saw improvement on sequential basis in most of the months except for July 2020 where the white sugar prices in London fell by 4.1%, September 2020 where prices of both the varieties declined by 2.3%-2.5% and December 2020 where the international sugar prices remained almost flat. In the new year 2021, the international sugar prices grew by 7.8%9.9% in January 2021 and continued to grow by 5% - 5.7% in February (up to 24 February 2021) where the white sugar prices in London averaged at USD 461 per tonne and raw sugar prices in New York averaged at US 16 cent per lb.

The initial growth in prices was backed by unlocking of global economies and improvement in international sugar demand. In addition to this, the expected lower sugar output in the European Union (EU), the world’s third largest sugar producer, Thailand, the second largest global sugar exporter, and uncertainty over Brazil’s diversion of cane crop towards sugar during the sugar season 2020-21 would led to the upward trend in international sugar prices.

In December 2020, the Brazilian crop agency Conab had raised the sugar production estimate for the year 2020-21 (April - March) at 41.8 MMT from its earlier estimate of 39.3 MMT in August 2020. Brazil’s sugar output was 29.8 MMT during the year 2019-20. Moreover, a delay in export subsidy announcement by India for the sugar season 2020-21 also supported the growth in international prices as it restricted the outflow of sugar from India.

The export subsidy which was approved by the government on December 16, 2020 for the SY 2020-21 translated into an assistance of around 5.8 per kg for sugar to be exported. Including the subsidy, white sugar prices in London and raw sugar prices in New York averaged at 38.7 per kg and 31 per kg, respectively, during January- February 2021. The average wholesale sugar prices in India averaged at 32.9 per kg during the same period which indicates support from the international sugar prices for Indian sugar mills to export sugar. As a result, sugar exports of about 2.5 MMT have been contracted with substantial amount been assigned for Indonesia. While lower exports from Thailand provides an opportunity to India to undertake sugar exports, container shortage and uncertainty of sugar exports to Iran due to Indian rupee shortage with Iran (in the previous year, sugar exports to Iran were about 1.14 MMT) are the challenges for sugar export.

The domestic sugar prices in fact have remained in the range of 33- 34 per kg only backed by an increase in sugar Minimum Support Price (MSP) to 31 per kg in February 2019 from 29 per kg announced in June 2018. Had it not been for the MSP of 31 per kg, the domestic sugar prices would have fallen beyond the range of 33 - ` 34 per kg during these months. The domestic sugar prices

are unlikely to witness any major improvement amid huge carry-over stocks of about 10.6 MMT and an expected 10.2% growth in production to 30.2 MMT in the current SY 202021. Thus, the prices are expected to remain largely range bound only backed by MSP of ` 31 per kg. The domestic prices are unlikely to increase unless sugar MSP is hiked by the government.

Company’s performance

The Company expects to register marginal growth during the financial year 2021-22 due to better realisation from sugar and alcohol. Retail and institutional segments are expected to register modest growth over last year and exports quotas are expected to be fulfilled with better price realisations. However, institutional sales which account for 20-25% of the company’s sugar volumes may be affected by lower demand from end-user industries due to reduction in sugar consumption following the 2nd wave of Covid-19 pandemic. Besides, revenues from distillery operations too are expected to be slightly affected due to lower off-take for blending of ethanol with petrol by oil refining companies and for manufacture of potable alcohol, though the sale of ethanol for manufacture of sanitisers may increase.

Sugar performance is expected to marginally improve during the financial year 2021-22 due to the firm international prices. However, due to the higher sugar output in the country, the sugar prices are expected to be under pressure. Despite flattish sugar and distillery revenues, the closure of loss-making plants in Tamil Nadu, cost reduction measures including rationalization of workforce, reduction of debt along with the expectation that there will not be any increase in cane procurement cost, is expected to support the operating profitability over the medium to long term.

The Company’s established market position in sugar business, derived from integrated nature of operations with diversified revenue profile and financial flexibility are partially offset by the susceptibility of its business performance due to cyclicity of the sugar business and regulatory changes in the sugar industry.

Impact of COVID 19 Pandemic:

The spread of COVID 19 especially the second wave has severely impacted businesses around the globe. In many countries, including India, there has been severe disruption to regular business operation due to localised lock downs, disruptions in transportation, supply chain, travel bans, quarantines, social distancing and other emergency measures.

The Company’s significant business is sugar, and it has been identified as an essential service. The Company’s factories were operating during the lockdown by strictly adhering to the laid down safety guidelines and norms. However, there were some delays in dispatches on account of logistical issues. The Company believes that the disruptions caused by the COVID 19 is going to subside once the process of vaccination is accelerated and a large section of the people are vaccinated. This will help to restore normalcy in every sphere of activity and eventually will augur well for the economy.

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

NUTRACEUTICALS DIVISION

Industry Overview

The global nutraceutical market is estimated to be at around $160 Billion with a growth rate of 9.4% during the year 2020. The nutraceutical market constitutes: functional foods (30%), functional beverages (40%), and dietary supplements (30%). In the Nutraceuticals, herbal and botanical supplement market is estimated at $35 Billion 2020 with a growth rate of 10%, mainly by demand for functional foods and beverages.

The US market is estimated at $54.5 Billion and represents 35% of the global market and China, the second largest supplement market (14.8%), with a projected sale of $23 billion are driving the growth. The western EU market share has dipped to 11.6%. The pandemic has emphasized the importance of immunity in human health and consumer interest in dietary supplements enhancing the immunity rose significantly higher. This augments well for the growth of nutraceutical Industry in near future. Apart from immunity, the top health concerns are joint or other pain, insomnia, anxiety or stress, lack of energy, cardiovascular health, obesity and digestive complaints. The global nutraceutical ingredients sector where the Company is operating is estimated at $40 billion in 2020 and is expected to reach around $ 55 billion in the times to come. The Micro Algae segment which accounts for 1% of the ingredient market is expected to grow at a CAGR of 7-8% for the next few years.

Business Overview

Our investments in science and quality has enabled us to retain our leadership position in the premium spirulina segment and a healthy 30% growth has helped us to consolidate our shares in the key North American and European markets. Our superior value proposition in terms of nutritional composition, quality parameters and efficient customer service is finding increasing acceptance in key markets. In chlorella cultivation, the Business improved the manufacturing efficiencies and its superior nutritional profile as compared to competition is helping us to position the product better. In the coming years, Chlorella is expected to contribute significantly to the growth of business.

During the year, the business has complied with all organic standard requirements, which includes NPOP (India), USDA NOP (US) and EU Organic (EU). With stringent regulations and checks at destination ports specifically in Europe, screening of finished products for pesticide residues and fumigant ethylene oxide has increased significantly and it may continue for some time. The Company has taken all preventive and proactive measures to ensure compliance of all its products and continues to improve on the overall cGMP system with special emphasis on traceability as per the new FDA requirement.

During the year, the Company has identified and qualified certain vendors for supply of Organic Spirulina / Chlorella powder so that their products can be used as an input raw material for the tablet manufacturing without compromising on the quality. The Company has improved its food safety system through the GSFI initiatives (BRC Certification) and

USP to ensure that risk based preventive controls are in place at supply chain / process / hygiene & sanitation. The plant also went through social audits SMETA by customers through which the Company could assess the gaps and address the same effectively.

The Company’s wholly owned subsidiary, US Nutraceuticals Inc. (Valensa) grew by more than 20% during the financial year 2020-21. Valensa improved substantially its market position in Saw Palmetto based product by increasing the sales with key customers and strengthening the supply chain operations.

Our Astaxanthin operations in Alimtec, Chile continues to be profitable.

The Company’s Joint Venture Algavista Greentech Pvt Ltd has successfully optimised the manufacturing processes in producing the Natural Blue color (Phycocyanin). During the year, the company has initiated establishing relations with major colour distributors and Food manufacturers which is expected to build a strong customer base for the future.

Micro - Algae Market Share – Regions

The Company continues to be a leading player in the EU markets for organic grade spirulina. Over the last 3 years, the business in this region has doubled.

Region wise Market Share

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10%
6%
44%
40%
APAC INDIA EU & RUSSIA USA
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Operating Results

During the year, the nutraceuticals division of the Company achieved a revenue from operations of 72 Crore, about 87% of which represents exports, as against 58 Crore during the previous year representing 4% of the Company’s revenue. Profit before interest and tax for the year stood at 5 Crore as against a loss of 8 Crore during the previous year. The overseas wholly owned subsidiary, US Nutraceuticals Inc. achieved sales of US$ 26.00 million against US$ 21.52 million of previous year. On a consolidated basis, revenue grew by 21% to 254 Crore from last year revenue of 210 Crore.

Annual Report 2020-21

During the year, the sales of Spirulina and Chlorella, which scientifically proved to boost immunity, grew significantly due to the COVID-19 pandemic, wherein immune booster products saw sudden surge in the demand across globe.

Outlook

As a consequence of the COVID-19 pandemic, dietary supplements particularly those oriented towards immunity and overall- wellness is expected to increase in demand from consumers. There is a significant shift in attitude of consumers towards natural products which are backed with scientific evidence in improving nutrition and wellness. This augurs well for the company in terms of the demand environment. Apart from dietary supplements, there is an increase in interest among large multinationals in the foods and beverage segment in incorporating natural ingredients in their product formulations, creating a favourable environment for our products.

To maximise the opportunity, our renewed focus on new product development incorporating micro-algae as signature ingredients is expected to increase our presence with key customers.

With continued investments in new product development, science and in sustainable manufacturing practices, we expect the business to achieve significant growth in coming years.

COMPANY FINANCIAL PERFORMANCE (STANDALONE)

Revenue

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( ` in Crore)
BUSINESS SEGMENTS 2020-21 2019-20
Sugar 1,501 1,377
Cogen 142 131
Distillery 362 357
Sugar Total 2,005 1,865
Nutraceuticals 72 58
Total 2,077 1,923
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Note: Above includes inter segmental revenue.

EBIDTA

The Earnings before Interest, Depreciation, Tax and Amortization (excluding exceptional items) for the year was 556 Crore representing 23% of total revenue (excluding exceptional revenue) as against 235 Crore representing 12% of the total revenue in the previous year.

EBIT

EBIT for the year was 436 Crore (excluding exceptional items) as against 116 Crore in the previous year 2019-20

Finance Charges

Depreciation

Depreciation for the year 2020-21 was at 120 Crore. During the year, the Company has impaired assets to the tune of 84 Crore with respect to non-operating factories and goodwill on leased factory.

PBT

Profit Before Tax for the year was at 1,058 Crore (including net exceptional gain of 715 Crore) as against a loss of ` 20 Crore in the previous year 2019-20.

PAT

Profit After Tax for the year was at 865 Crore as against 2 Crore in the previous year 2019-20.

FINANCIAL OVERVIEW

Net worth

The Net worth as on March 31, 2021 was 2,594 Crore as against 1,714 Crore as on March 31, 2020. Capital Redemption Reserve remained unchanged during the year.

Borrowing

The borrowings of the Company decreased from 1,035 Crore in 2019-20 to 554 Crore in 2020-21. The Long-Term Debt is 0.08 times of equity as against 0.32 times of equity in the previous year. Working capital borrowing utilized was 355 Crore as on March 31, 2021 as against 492 Crore in previous year.

Fixed Assets

During the year, the company incurred 31 Crore as additions to Fixed Assets as against 93 Crore during the previous year.

Investments

The total investment of the Company as at March 31, 2021 was 1,010 Crore as against 1,003 Crore in 2019-20. No new investments were made during the year and the increase in Investment value by ` 7 Crore was on account of fair valuation.

Sale of Holdings

The Company on June 2, 2020 and December 30, 2020, sold a total of 1,17,00,000 equity shares of 1 each/- [58,50,000 equity shares on June 2, 2020 and 58,50,000 equity shares on December 30, 2020] held in the subsidiary, Coromandel International Ltd (CIL) in the open market. Post the abovementioned sale, EID Parry holds 16,54,55,580 shares of 1/- each representing 56.42% of the paid-up capital of CIL.

Rating

During the year, rating agency CRISIL has reaffirmed the Company’s Long Term rating as “CRISIL AA-/ Positive” for the long term borrowings and reaffirmed Short Term Rating as “CRISIL A1+” for the Short Term borrowings.

Finance Charges for the year 2020-21 was at 93 Crore as against 136 Crore in the previous year 2019-20.

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Book Value and Earnings per Share

Book Value of shares of the Company was 146 per share as on March 31 2021 as against 97/- per share as on March 31 2020. Earnings per share increased to 48.86 per share for the year ended March 31, 2021, from 0.10 per share for the year ended March 31, 2020.

RATIOS

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Particulars 2020-21 2019-20
Key Profitability Ratios
EBIDTA / Sales % (Operating 66.96 12.54
Profit Margin)
PAT / Sales % 42.72 0.10
PAT / Networth % (ROE) 33.34 0.11
Key Capital Structure Ratios
Net Debt / Equity Ratio 0.21 0.60
Outside Liabilities / Networth 0.65 1.38
Net Fixed Assets / Networth 0.50 0.80
Debt Service Coverage Ratio 2.98 0.96
Interest Service Coverage Ratio 14.62 1.73
Liquidity Ratio
Current Ratio 1.09 0.81
Inventory Turnover (days) 173 188
Receivables (day gross sales) 33 31
Earnings and Dividend Ratios
Dividend % 0 0
Earnings Per share () 48.86 0.10 Book Value Per share ( ) 146.47 97
P / E Multiple 6.52 1390.50
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In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI (LODR) Regulations), the Company is required to give details of significant changes (change of 25% and more as compared to the immediately previous financial year) in key financial ratios.

Ratios where there has been significant change from the financial year 2019-20 to 2020-21

Increase in Operating Profit Margin, PAT / Sales %, Return on Equity, Debt Service Coverage Ratio, Interest Service Coverage Ratio, Earnings per Share and Book Value per share is mainly on account of profit on sale of 4% stake in CIL, a subsidiary of the Company and increased dividend receipt from CIL.
Decrease in Net Debt / Equity Ratio % and Outside Liabilities / Net worth % is mainly on account of repayment of major high cost long term debts out of proceeds from sale of 4% stake in Coromandel International Limited and higher dividend received from CIL.
Decrease in Net Fixed Assets / Net worth % is mainly on account of impairment of Fixed Assets of nonoperating units and increase in the Net Worth on account of higher profit from sale of 4% stake in CIL, a subsidiary of the Company and increased dividend receipt from CIL.
Increase in Current Ratio is mainly on account of lower cane bills due payable to banks as compared to the previous year.
Decrease in PE multiple is on account of highly skewed PE multiple in the previous year as compared to the current year as the EPS in the previous year was less than ` 1.

RISK MANAGEMENT

Prediction of risk is a challenge in this pandemic era as Covid 19 has cut across traditional risk categories, from supplychain failures and digital disruption to workforce shortages, cybersecurity and health. Due to the high level of dependency on technologies, risks are becoming increasingly complex and interconnected and every organisation is concerned about the potential threats to its existence and growth prospects. The need for increased collaboration among all functions cannot be overemphasized.

A clear and comprehensive risk management framework which is understood by all is paramount to eliminate blind spots to risk. Establishing a risk management framework with a clear understanding of the risk landscape and a clearly identified risk appetite and ensuring that all the business functions are aligned to this is important to avoid disconnects.

The Company follows a well-defined risk management policy which requires the organisation to identify the risks, the businesses are exposed to and categorise them based on the impact and probability of occurrence. Mitigation plans are laid out for each risk along with frequency of risk monitoring and identification of the risk owner thereof.

The Company endeavours to continuously improve its systems, processes and controls to mitigate the risks.

The Company has a robust risk management framework to identify and evaluate business risks and opportunities. This framework seeks to create transparency, minimize adverse impact on the business objectives and enhance the Company’s competitive advantage. The Company’s risk management framework defines the risk management approach across the enterprise at various levels, including documentation and reporting.

Annual Report 2020-21

Risk Category Risk Business Continuity Global pandemic COVID-19 both first wave and the second wave, with no predictable end point has resulted in revenue shortfalls, supply chain interferences, logistics challenges, changing regulator expectations, health risk of workforce, possibility of decline in product quality etc.

Mitigation Plan Human Resources

Institutionalized an architecture to ensure employee wellbeing across the organization by effective deployment of a Business Continuity Manual, Investing in management of employee wellbeing and creating a sustainable ecosystem at workplace. Very good hygiene and clean workplace through proper sanitization at regular intervals are being strictly followed.
Facilitate COVID-19 vaccination for all employees across the organization and create awareness among all stakeholder for early vaccination.

Cane Management

Adequate Covid care is taken in field level both for the employees and the farmers / cane harvesting labour.

	• Adequate Covid care is taken in feld level both for the employees and the farmers / cane harvesting labour.
Institution and Trade business could be impacted Shortage of Harvesting Labour – Availability of Migrant Labour for Cane harvesting could be impacted. Product Quality issues due to contamination	• Periodical assessment of Covid affected areas and reporting for preventive care. • Insurance cover for Covid taken for employees, H&Tgangs and farmers.
	• Digital media being used to highlight the hygiene aspect of packed retail sugar and jaggery. • Continuous dialogues held with customers to allay their concerns. • Stress testing of fnancials is being done to understand the various scenarios and steps are being taken to improve the situation, wherever necessary.
	• Deployment of local harvesting labour and self-harvesting is being focussed. • Farmers are being encouraged for wider row planting and for increasing the share of mechanised harvesting. • Attracting labours through full Covid insurance cover.
	• Strengthening Good Manufacturing Practices (cGMP) and Quality Management Systems (QMS). • Adequate insurance cover for liability on product quality issues is in place. • Sensorial panels are established to track and stabilize quality with good hygiene and continuous trainingamongthe workers.

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

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Risk Category Risk Mitigation Plan
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Risk Category	Risk	Mitigation Plan
Information Technology	Possibility of increased fraud risks due to possible Segregation of Duties (SOD) conficts, Manuals/SOPs not updated with relevant Business Continuity Plan and Disaster Recovery (BCPDR) procedures, non-maintenance of paper/digital trail, lack of awareness and clarity of cyber security risks, management override of controls, etc. Due to domestic surplus and delay in announcement of MSP, there could be a softening in the steady sugar prices affecting the proftability. Due to the adverse weather conditions, non-availability of adequate water, pests and diseases outbreak and farmers switching to alternate crops for higher remuneration etc., availability of sugarcane may be impacted thereby diminishing proftability. Water availability, Safe water resource management and groundwater recharge effciency • Non availability of water due to monsoon failure • Ground water depletion • Poor quality of ground water	• Controls are being reviewed in the revised scenario. Management override checks are being monitored regularly. Awareness is being created and importance of cyber security risks is being frequently communicated and explained to the employees. • Policy is in place to take daily backups and disaster recovery plans are available and server is placed at different location as a standby as part of disaster recovery plan.
Sugar Price		• The Company is focusing on increasing retail volumes by increasing retail outlet placements and expanding retail infrastructure. The Company is putting efforts to increase the market share of Institutional business through robust quality systems, obtaining customer certifcations and retaining the existing customers. • Increase the saliency of high premium/value added products through brand conversion. • Introduction of new products in regular intervals(Low GI,FCS,Low Cal etc.)
Raw Material Availability		• The Company connects with farmers continuously by educating them on scientifc and sustainable sugarcane cultivation besides providing high yielding sugarcane seeds / saplings that give better yield. • The Company promotes mechanised harvesting for timely harvesting and making sugarcane a proftable crop by yield improvement. Cane team is working on reducing the cost of cultivation, increasing the yield per acre and thereby the income per acre. • The Company launched “Farmers Connect” app for better interaction and to support the farmers instantly. The Company enjoys a good brand value and trust amongst the farming community by ensuring timely payments and through regular interaction with them through village meetings, personal care and is thus a preferred partner for sugarcane supply. • The R&D initiatives of the Company takes control measures to mitigate and contain pests and diseases.
		• For the Nutra business, measures have been taken to treat wastewater, maintain downstream water quality and minimise groundwater infltration to minimise damage to aquatic ecosystems. Water conservation project has been taken up with AMM Foundation. • Additional water storage facilities are created for storing of water and rain water harvesting at many places in theplant.

Annual Report 2020-21

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Risk Category Risk Mitigation Plan
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Risk Category	Risk	Mitigation Plan
Raw Material Pricing	The Central and State Governments decide sugarcane prices in a manner that is not linked to sugar prices. Unviable sugarcane prices may impact the proftability of the sugar division. • The Company has invested in Parry Sugars Refnery India Private Limited, a wholly owned subsidiary. • Any non- performance of the invested entities will have a risk of sub-optimal return on investment. • The Company may encounter non- availability of service or failure of multiple systems which may lead to disruption in business operation due to lack of adequate processes, cyber security, backup and disaster recovery systems. • Risks may be encountered in the COVID-19 scenario due to remote workforce, work-from-home options (WFH), unsecure platforms, network connectivity threats, risks due to increased VPN and mobile device usage for work, etc. The company needs to comply with a host of laws such as the Companies Act, 2013 SEBI (LODR) Regulations and the laws including those pertaining to Contract labour, Taxation, Foreign Exchange & Export Controls, Health, Safety and Environment (HSE) etc. There has been changes in these laws from time to time Failure to comply with these laws and new requirements could result in penalties and reputational damage. COVID-19 could bring about regulatory changes which could result in operational interruptions,business restrictions.	• The Company is a member of Indian Sugar Mill Association (ISMA) and the South Indian Sugar Mills Association (SISMA) and works closely with them towards developing appropriate policy recommendations to represent the industry needs to the government. • To lobby thorough the Associations for no increase in FRP or increase in FRP along with the correspondingincrease in MSP
Investment		• Periodical review mechanism is in place to monitor the investment risk of the portfolio of assets and to oversee the strategic decision. • There is an emphasis on entering new customer segments, increased spreads, low process loss and increase the volume through proper throughput by the subsidiaryParrySugars RefneryIndia Pvt. Ltd.
Cyber Security		• Information systems, backup and disaster recovery policies and periodical review of the same are in place. Robust frewall and security event information management systems are in place to monitor all types of security breaches and to take corrective measures. Further, user awareness about cyber security risks are being spread by periodical training / information through emails etc. • Provided rental / own device systems with adequate software. • Secure connection (VPN – Virtual Private Network) is made mandatory for accessing applications from remote location. • All servers are monitored through SIEM Tool (Security Information and Management Tool). Logs are analysed by Murugappa Group information security team. • All meetings/conferences are being conducted through licensed secured collaboration tool (Microsoft Offce 365). Blocked freeware tools like ZOOM etc., • Phishing emails are getting monitored by security team, if any, such incidents are identifed.
Regulatory		A comprehensive e-compliance management system has been deployed across the company to manage compliance of all the applicable statutory regulations. Further, respective functional teams track the changes to applicable regulations across various jurisdictions and functional areas and update the e-compliance management system and also create awareness of the changes across the respective functions.

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

INTERNAL FINANCIAL CONTROLS

The Company has aligned its current system of Internal Financial Control (IFC) with the requirement under the Companies Act, 2013 (the Act). The Company has established a robust framework of IFC which includes entity level policies, processes, and operating level standard operating procedures. The Company has a well-established process and clearly- defined roles and responsibilities for people at various levels.

The Company’s internal controls are adequate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing consistent financial and operational information, complying with the applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization, and ensuring compliance with policies. Processes for formulating and reviewing annual and longterm business plans have been laid down. The Company uses a state-of- the-art enterprise resource planning (ERP) system SAP, as a business enabler to record data for accounting, consolidation, and management information purposes.

In the post-COVID scenario, the Company has increased the use of technology, data analytics, rely on electronic work paper and adopt an agile Internal Audit plan. To further strengthen, assess and report on the internal financial control, an in-house management audit division has been established by the Company which is ISO 9001:2015 certified and in 2021 it is going for the recertification. The internal audit is conducted based on the annual audit plan which is reviewed and approved by the Audit Committee. The Internal Audit reports are presented to the Audit Committee on a quarterly basis for review and deliberation.

The Management has assessed the effectiveness of the Company’s internal control over financial reporting as of March 31, 2021 and found the same to be adequate and effective. From September 2020, the Company has decided to carry out its internal audit blended with both in-house and outsourced Internal Audit team which will help to leverage our business knowledge and process and combine it with the expertise of the outsourced auditors in specialised areas.

SUBSIDIARY COMPANIES

There has been no change in the nature of business of the subsidiaries during the year under review. In accordance with Section 129(3) of the Act, the Company has prepared a consolidated financial statement of the Company and all its Subsidiary Companies, which forms part of the Annual Report. A statement containing the salient features of the financial statements of the subsidiary companies, joint ventures and associates are given in Annexure-A to this Report.

In accordance with the provisions of Section 136(1) of the Act, the Annual Report of the Company containing the standalone and consolidated financial statements has been placed on the website of the Company, www.eidparry.com. Further, the audited accounts of the Subsidiary Companies and the related

detailed information have also been placed on the website of the Company www.eidparry.com. The annual accounts of the Subsidiary Companies will also be available for inspection by any shareholder/debenture trustees at the registered office of the Company during working hours upto the date of the annual general meeting. A copy of annual accounts of subsidiaries will be made available to shareholders seeking such information at any point of time.

Parry Sugars Refinery India Private Ltd (PSRIPL)

During the year 2020-21, global sugar market remained in deficit of 2.6 MMT due to lower production in EU and Thailand. Demand for refined sugar remained robust during the year, with most destinations stocking up to avoid on shortages in pandemic. Refined market was balanced on supply side, due to significantly lower exports from Thailand and EU. Due to tight supply situation, white premium remained strong for most of the year incentivising most toll refiners to increase their throughput.

Capitalising on this market opportunity, PSRIPL established its position as one of the globally renowned re-export refiners of sugar, offering a range of quality products for international trade and institutions. During the year, despite competition from subsidised exports from Indian mills (under MAEQ scheme), PSRIPL’s sugar export volume grew by more than 40% to 8.21 LMT from 7.59 LMT in 2019-20. Consequently, the turnover increased to 2,251 Crore in 2020-21 from 2,009 Crore in 2019-20. During the year, PSRIPL significantly increased its sales to prestigious institutional customers. Availability of containers for exports during the year restricted further increase in sales volume. PSRIPL’s refining operations successfully overcame several challenges posed by the pandemic and continues to set new records in throughput and efficiencies. Inflation in material costs, energy and freight poses a formidable challenge to operating costs in 2021-22. PSRIPL will focus on increasing sales to value added segments whilst making further improvements in efficiencies in refining to counter escalation in costs during the year 2021-22.

During the year, PSRIPL incurred a loss of 138.65 Crore which includes accounting for Raw Material Inventory Losses amounting to120.45 Crore, details where of are reported in Note No 29 A forming part of the consolidated financial statements. Parry International DMCC, a wholly owned subsidiary of PSRIPL based out of Dubai recorded a trading loss of AED 5 Million.

US Nutraceuticals Inc

During the year, the Company’s wholly owned subsidiary, US Nutraceuticals Inc achieved sales of US$ 26 million as against US$ 22 million of previous year. In the core Saw Palmetto Business, the company consolidated its market position by achieving a significant growth of 25% over last year. The formulation Business of joint health was revived and exhibited good growth. The investments in Science and B-C marketing efforts is expected to increase the Company’s participation in the larger value pool of the US Dietary supplements market.

Annual Report 2020-21

Alimtec SA

Alimtec SA, Chile, the wholly owned subsidiary of the Company has seen another significant year in terms of sustainable production with better quality and yield. The investments made in the prior years on water quality improvements have resulted in better quality with productivity. The company has been constantly working towards bringing good manufacturing practices, which will improve productivity with lower cost of production.

E.I.D. Parry Europe BV.

The Company had incorporated a wholly owned subsidiary namely, EID Parry Europe BV in Netherlands on January 8, 2020, in order to cater to the sales and marketing needs of the customers and markets in Europe. Due to change in the business model and requirements, the Board at its meeting held on June 29, 2021 approved the closure of EID Parry Europe BV, which is yet to carry on any business or operation.

Coromandel International Limited (CIL)

In a year marked with the Covid-19 pandemic, CIL delivered an all-round performance, strengthening its market and financial position. CIL showed agility in prioritizing the health and safety of its employees, ensured safe running of its operations, optimising production and catering to the requirements of the farmers. Towards helping the country fight the pandemic cohesively and effectively, CIL contributed in several ways including monetary contributions, healthcare support, advocacy and public awareness campaigns, supporting self-help groups along with volunteering from its employees.

During the year, CIL registered good performance driven by a continuous emphasis on superior sales mix, farmer connect initiatives, increased operational efficiencies and better working capital management. CIL balanced partial capacity constraints arising out of lockdown with a staggered annual turnaround plan for its various manufacturing units. CIL practiced measured restraint on Capex for a reasonable part of the volatile year. In the later part of the year, CIL took a calibrated approach and improved the pace of implementation of its capital projects as the pandemic situation began to normalize.

The CIL leveraged its prior investments made towards digital transformation in empowering a large portion of its workforce to seamlessly work from home. It further accelerated the digital connect with the farming community and introduced multiple initiatives to improve its reach and communication with its customers.

In terms of financial performance, the CIL’s consolidated total income grew by 8% to reach 14,257 crore, EBITDA grew by 17% to reach 2,021 crore, EBITDA margin improved by 104 basis point to reach 14.20% and net profit improved by 25% to reach 1,329 crore for the year. With good market collections and higher subsidy receipt from the Government, the cash flow position improved significantly during the year. Net interest was reduced by 67% to come down to 65 crore

(Including Ind AS Interest) and CIL has become debt free as of March 2021.

JOINT VENTURE COMPANY

Algavista Greentech Private Limited (AGPL)

The Company’s joint venture AGPL has developed optimal processes for extracting Phycocyanin as blue colour and its differentiation as an organic product along with conventional ones is finding increasing acceptance. AGPL’s certified spirulina extract, rich in phycocyanin, is seen as viable alternative for companies considering a transition from synthetic food dyes like the ‘Brilliant Blue. The accreditations through organic certifications viz. US-NOP, EU Organic and India. NPOP have enhanced its ability to participate in the emerging organic colour segment. AGPL achieved a total sales of ` 227 Lakh in this year.

AGPL’s strong engagement with major global customers is expected to fructify into sustainable sales in the coming years.

HUMAN RESOURCES

The Company believes that the people are its key assets and focuses on nurturing and developing human talent that delivers quality products, manufacturing excellence, continued growth, customer delight and business leadership. Company’s HR vision of “Building Organizational Capability to deliver superior business performance”, is delivered by a high level of policy deployment initiatives and contemporary HR practices focusing on four key imperatives: Capability Development, Talent Management, Employee Engagement and Productivity & Cost.

The Company enables every employee to achieve high standards of performance and take up challenging goals by institutionalizing Competency Development Framework. The Company scales up capabilities across various functions by creating specialist knowledge / subject matter experts in sugar, distillery, cogeneration & value added products to enhance the internal efficiencies. A lot of interventions have been rolled out in terms of enhancing the capabilities of Executives, especially the leadership team through individual development plans, leadership coach accreditation program, etc.

The Company is committed to build the ‘Best Employer’ brand for the organization and most importantly, provide a happy, nurturing ecosystem for the employees, an ecosystem, that is not only empowering, but also builds capabilities to help them to meet the challenges of a fast changing, dynamic, world environment. The Company believes that a motivated employee with a passion for innovation in a given environment of learning & growth would engage and succeed in all initiatives.

The ‘Project Smile’ that begun in August 2017 has spread its positivity with a winning culture across the Company, bringing laurels, earning accolades and creating an environment of happiness. Smiles travelled across miles, across locations, as team members applauded excellence, expressed their appreciation and registered their satisfaction through a number of ‘smileys’. The ‘My SMILE App’, tracked

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

the smiles, culminating in the SMILE Awards, for members who had earned the largest number of ‘Smiles’ across the organization.

As on March 31, 2021, the total number of permanent employees on the rolls of the Company stand at 2022. Industrial relations remained cordial at all the Company’s units during the year under review.

AWARDS & ACCOLADES

During the year, the Company received the following Awards.

Bagalkot Unit received TPM Certificate from the Institute of Quality, CII for the strong commitment in the journey towards manufacturing excellence.
Ramdurg Unit received Technical Efficiency Award, North-West Zone, 1st Prize from the S. Nijalingappa Sugar Institute, Belagavi on 11th Jan 2021.
Nellikuppam Unit received CORONA WARRIOR Award from M/s GREENTECH FOUNDATION, New Delhi on 11-Feb-2021.
Nellikuppam Unit received the EXCELLENT ENERGY EFFICIENT UNIT Award from M/s. CII, Hyderabad at the 21st CII National conference held at Hyderabad in August, 2020.

PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE POLICY

The Company has in place a policy on prevention of sexual harassment in line with the requirements of the Sexual Harassment of women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. An Internal Complaint Committee is in place to redress the complaints received regarding sexual harassment. All employees are covered under this policy. No complaints were received and disposed off during the year under review.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

During the year, there was no change in the composition of Board except as stated below.

As per the provisions of Section 152 of the Act, read with the Articles of Association of the Company, Mr. V.Ravichandran, Director retires by rotation at the forthcoming Annual General Meeting and being eligible offers himself for reappointment and the requisite details in this connection is contained in the notice convening the meeting and the Corporate Governance Report.

The five-year term of Dr. (Ms.) R.cā Godbolé (DIN: 07306268) Independent Director of the Company expires on 4[th] August 2021. On the recommendation by the Nomination and Remuneration Committee and on the basis of performance evaluation, the Board of Directors of the Company at their meeting held on 29[th] June, 2021 have re-appointed her for a further period of five (5) years with effect form 5[th] August 2021 subject to the approval of shareholders in the ensuing AGM.

The Board of Directors vide their resolution dated 5[th ] May 2021 have appointed Mr. T. Krishnakumar

(DIN:00079047) as an Additional Director of the Company in the category of Non-Executive Independent Director with effect from 6[th] May 2021 for a period of five years subject to the approval of shareholder in the ensuing AGM.

Mr. C.K.Ranganathan (DIN: 00550501) Independent Director of the Company resigned from the Board with effect from 7[th] February 2021 due to his pressing commitments.

The Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence as prescribed under section 149(6) of the Act, and comply with Regulations 16 & 25 of the SEBI (LODR) Regulations.

Mr. S.Suresh, Managing Director, Mr.S. Rameshkumar, Chief Financial Officer and Mr. Biswa Mohan Rath, Company Secretary are the Key Managerial Personnel of the Company as per Section 203 of the Act.

Number of Meetings of the Board

Seven Meetings of the Board of Directors were held during the year, the details of which are given in the Corporate Governance Report.

Board Evaluation

In accordance with the Act, and SEBI (LODR) Regulations, the Board has carried out an evaluation of its own performance, the performance of Committees of the Board and also the directors individually. The manner in which the evaluation was carried out and the process adopted has been given in the Corporate Governance Report.

Policy on Directors’ Appointment and Remuneration and Other Details

The Board has on the recommendation of the NRC framed a policy for selection and appointment of directors, senior management and fixing their remuneration and also framed the criteria for determining the qualifications, positive attributes and independence of directors. The Remuneration Policy and criteria for Board nominations are available on the Company’s website at http://www.eidparry.com/investors/ Policies-Codes.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to Section 134(3) and 134(5) of the Act, your Directors to the best of their knowledge, belief and according to information and explanations obtained from the management, confirm that:

In the preparation of the annual accounts for the financial year ended March 31, 2021, the applicable accounting standards have been followed and there are no material departures therefrom;
they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the

Annual Report 2020-21

Company as at March 31, 2021 and of the profit of the Company for the year ended on that date;

they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
they have prepared the annual accounts on a going concern basis.
they have laid down proper internal financial controls to be followed by the Company and such controls are adequate and operating effectively and
they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

AUDITORS AND AUDITORS’ REPORT

Statutory Auditors

M/s. Price Waterhouse Chartered Accountants LLP, (FRNo.012754N/N500016) Chennai were appointed as Statutory Auditors of the Company by the shareholders at the 42[nd] Annual General Meeting held on August 4, 2017 to hold office up to the conclusion of the 47[th ] Annual General Meeting.

There are no qualifications, reservations or adverse remarks or disclaimers made by the Statutory Auditors on the standalone financial statements in their report for the year 2020-21.

Cost Auditors

In terms of the Section 148 of the Act, read with Rule 8 of the Companies (Accounts) Rules, 2014 and the Companies (Cost Records and Audit) Rules, 2014 as amended from time to time, cost audit is applicable to company’s businesses of sugar, distillery and cogeneration of power. The accounts and records for the above applicable businesses are made and maintained by the Company as specified by the Central Government under sub-section (1) of Section 148 of the Act.

The Board of Directors, on the recommendation of the Audit Committee, have appointed M/s. Narasimha Murthy & Co, Cost Accountants, as the Cost Auditors to audit the cost accounting records maintained by the Company for the financial year 2021-22 on a remuneration of ` 8,50,000/plus applicable tax and reimbursement of out of pocket expenses. A resolution seeking members’ ratification for the remuneration payable to the Cost Auditor forms part of the notice convening the Annual General Meeting.

The cost audit report for the financial year 2019-20 is filed with the Ministry of Corporate Affairs. The cost audit report for the financial year 2021-22 would be filed with the Ministry of Corporate Affairs as per the provisions of the Act.

Secretarial Auditors

The Board appointed M/s. R Sridharan & Associates, Practicing Company Secretaries, Chennai as the Secretarial Auditors to undertake the Secretarial Audit of the Company for the year 2020-21. The Report of the Secretarial Auditors is provided in Annexure-B to this Report.

There are no qualifications, reservations or adverse remarks or disclaimers made by the Secretarial Auditors in their report for the year 2020 – 2021.

The Secretarial Auditors have not reported any incident of fraud during the year under review to the Audit Committee of the Company.

Secretarial Audit of Material Unlisted Indian Subsidiary

Parry Sugars Refinery India Private Limited (PSRIPL), a material subsidiary of the Company carried out Secretarial Audit for the Financial Year 2020-21 pursuant to section 204 of the Companies Act, 2013 and Regulation 24A of the SEBI (LODR) Regulations. The Secretarial Audit Report of PSRIPL submitted by M/s. Srinidhi Sridharan & Associates, Company Secretaries, Chennai is attached as Annexure-B1 to this Report and does not contain any qualification, reservation or adverse remark or disclaimer.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company’s CSR initiatives primarily focus on improving the quality of life of the communities where it operates, through socio welfare initiatives. The various CSR initiatives undertaken by the Company during the last financial year include the following:

Healthcare

The Company pursues a well-managed health care programme across its units, providing medical amenities for people living in neighbouring villages. ‘Hospital on Wheels’, a well-equipped mobile unit with diagnostic and medical intervention amenities makes emergency care possible for people living in remote areas. In addition, mobile medical units cater to the needs of the elderly in the cane growing villages around the Units.

In addition to the comprehensive health and medical care programs for employees across the different Units, medical camps were conducted offering health checkups and free medicines for cane growers, harvesting and transport labourers.

Education

•

As an important part of its CSR program, the Company promotes education in the neighbouring villages near its units. Besides contributing to infrastructure building and facility upgradation at schools, the Company provides educational assistance to cane growers children and participates in their developmental

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

needs. Baby care centres, mid-day meals for Balawadi school children of labourers, training programme for employees’ children are few of the ongoing initiatives.

Community Welfare

The Company has always played a key role in extending relief support to villagers during natural calamities and helping the Government in its disaster management initiatives. During the year, drought relief measures were extended to farmers to mitigate crop loss. Community development works were also undertaken in the villages in and around the units. As part of its community welfare programs, the Company undertook the desilting of ponds and canals, to augment the water supply to villages and schools. Tree planting across schools and neighbourhoods were conducted as part of the green environment initiatives.

The Company has constituted a CSR Committee in accordance with Section 135 of the Act. The CSR Committee has formulated and recommended to the Board, a CSR Policy indicating the activities to be undertaken by the Company, which has been approved by the Board. The CSR Policy can be accessed on the Company’s website at www.eidparry. com.

As per the provisions of the Act, the Company was not required to spend any amount towards CSR for the year 2020-21. However, the Company has been actively involved in various CSR initiatives and an amount of ` 124.57 Lakh was spent towards CSR activities during the year 2020 – 21. The Annual Report on CSR activities is given in Annexure-C to this Report.

RELATED PARTY TRANSACTIONS

All contracts / arrangements / transactions entered into by the Company during the financial year with the related parties were on arm’s length basis and were in the ordinary course of business. There were no materially significant related party transactions with promoters, directors, key managerial personnel or other designated persons, which may have a potential conflict with the interest of the Company at large.

During the year the Company has not entered into any contracts or arrangements with related parties as referred to in sub-section (1) of section 188 of the Act.

All Related Party Transactions are placed before the Audit Committee for approval. Prior omnibus approval of the Audit Committee is obtained on a quarterly basis for the transactions which are of a foreseen and repetitive nature. The transactions entered into pursuant to the omnibus approval so granted are placed on a quarterly basis before the Audit Committee for their review. The policy on Related Party Transactions as approved by the Board is available at the web link: http:// www.eidparry.com/ investors/Policies-Codes.

EMPLOYEE STOCK OPTION SCHEME

Employee Stock Option Scheme 2007 – ESOP 2007

The Company had in the past, approved an Employee Stock Option Scheme 2007 (ESOP Scheme 2007), under which employees were granted Options. The Company made grants under the said Scheme during the period 2007 to 2011. There are no vested Options under the ESOP Scheme 2007, which were outstanding as at the end of the year. It is not proposed to make any further grants under ESOP Scheme 2007. The ESOP Scheme 2007 was approved by the Board at its meeting held on June 19, 2007, and by the shareholders of the Company by way of a special resolution at their meeting held on July 26, 2007. The Nomination and Remuneration Committee (NRC) at its meeting held on July 27, 2011, had granted stock options to various employees under the said ESOP Scheme 2007.

Employee Stock Option Plan - ESOP 2016

The Company has introduced Employee Stock Options Scheme, 2016 during the year 2016-17. The ESOP Scheme 2016 was approved by the Board at its meeting held on November 7, 2016, and by the shareholders of the Company by way of special resolution through Postal Ballot on January 21, 2017. The Shareholders had authorised the Board / Nomination and Remuneration Committee to issue to the employees, such number of Options under the ESOP Scheme 2016, as would be exercisable into not exceeding 35,17,000 fully paid-up equity shares of ` 1/ - each in the Company. The NRC is empowered to formulate the detailed terms and conditions of the ESOP Scheme 2016, administer, and supervise the same. The specific employees to whom the Options would be granted, and their eligibility criteria would be determined by the NRC at its sole discretion. Further, the NRC is empowered to determine the eligible subsidiary companies, whether existing or future, whose employees will be entitled to stock options under this Scheme. Options granted under this ESOP 2016 would vest on or after 1 (one) year from the date of grant but not later than 4 (four) years from the date of grant of such Options or any other terms as decided by the Nomination and Remuneration Committee.

No new options were granted during the year. The number of options vested and outstanding as at the year-end was 5,58,879. The details of the Options granted upto March 31, 2021, and other disclosures as required under Regulation 14 of SEBI (Share Based Employee Benefits) Regulations, 2014 is available on the Company’s website at www. eidparry.com.

The Company has received a certificate from the Statutory Auditors of the Company that the above referred Scheme had been implemented in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and the resolutions passed by the Members in this regard.

Annual Report 2020-21

CORPORATE GOVERNANCE

Maintaining high standards of Corporate Governance has been fundamental to the business of your Company since its inception. The report on corporate governance along with certificate from a practicing Company Secretary regarding compliance of conditions of Corporate Governance as stipulated under the SEBI (LODR) Regulations is annexed to this Report. The report also contains the details required to be provided on the board evaluation, remuneration policy, implementation of risk management policy, whistle-blower policy / vigil mechanism etc.

The Managing Director and the Chief Financial Officer have submitted a certificate to the Board regarding the financial statements and other matters as required under Regulation 17(8) read with Schedule II of Part B of the SEBI (LODR) Regulations.

TRANSFER TO THE INVESTOR EDUCATION AND PROTECTION FUND (IEPF)

Pursuant to the applicable provisions of the Companies Act, 2013, read with the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (“IEPF Rules”) all dividends, which remains unpaid or unclaimed for a period of seven years are required to be transferred by the Company to the IEPF established by the Central Government. Further, according to the IEPF Rules, the shares in respect of which dividend has not been encashed by the shareholders for seven consecutive years or more are also required to be transferred to the demat account created by the IEPF Authority. Accordingly, the Company has transferred the unclaimed and unpaid dividends as well as the corresponding shares as per the requirements of the IEPF Rules, details of which are provided on our website, at http://www.eidparry. com/Unpaid-Unclaimed-Dividend.

During the year, the Company has not transferred any unclaimed dividend to the IEPF established by the Central Government. The Company has also not transferred any Equity Shares in respect of which dividend has not been paid or claimed for seven consecutive years or more as enunciated under Section 124 (6) of the Act.

Vigil Mechanism & Whistle Blower Policy

The Company has a Vigil Mechanism for directors and employees to report genuine concerns and grievances and provides necessary safeguards against victimisation of employees and directors.

The Audit Committee reviews on a quarterly basis the functioning of the Whistle Blower and vigil mechanism. The Vigil Mechanism and Whistle Blower Policy have been posted on the Company’s website at www.eidparry.com and the details of the same are given in the Corporate Governance Report.

Business Responsibility Report (BRR)

The SEBI (LODR) Regulations mandate the inclusion of the BRR as part of the Annual Report for top 1000 listed entities based on market capitalisation. In compliance with the SEBI (LODR) Regulations, the BRR forms part of this Annual Report.

Dividend Distribution Policy

Pursuant to Regulation 43A of SEBI (LODR) Regulations, the top 1000 listed Companies are required to formulate a Dividend Distribution Policy. The Company’s Dividend Distribution Policy as approved by the Board is available on the Company’s website at www.eidparry.com/investors/Policies-Codes.

Conservation of energy, technology absorption, foreign exchange earnings and outgo

The particulars relating to conservation of energy, technology absorption, research and development, foreign exchange earnings and outgo as required to be disclosed under Section 134 (3)(m) of the Act, read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is given in Annexure - D to this Report.

Loans, Guarantees and Investments

During the financial year, the Company has given loans, guarantees to subsidiaries within the limits as prescribed under Section 186 of the Act. Details of Loans and Guarantees are given in Annexure - E to this Report.

Particulars of Employees and Related Disclosures

DISCLOSURES

Audit Committee

The Audit Committee comprises of Mr. V. Manickam, Independent Director as the Chairman, Dr. (Ms) R.cā Godbolé, Independent Director, Mr.M.M.Venkatachalam, Non Executive Non Independent Director and Mr. Ajay B. Baliga, Independent Director as Members.

CSR Committee

The CSR Committee comprises of Mr. V. Manickam, Independent Director, as the Chairman and Mr. V. Ravichandran, Non-Executive Non-Independent Director and Mr. S. Suresh, Managing Director as members.

The information relating to employees and other particulars required under Section 197 of the Act, read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 will be provided upon request. In terms of Section 136 of the Act, the Report and Accounts are being sent to the Members, excluding the information on employees, particulars of which are available for inspection by the Members at the Registered Office of the Company during the business hours on all working days of the Company upto the date of the forthcoming Annual General Meeting. If any member is interested in obtaining a copy thereof, such Member may write to the Company Secretary in the said regard.

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

The disclosure with regard to remuneration as required under Section 197 of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached and forms part of this Report as Annexure - F.

Insolvency and Bankruptcy Code

During the year, an application was filed under section 9 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016) against the Company before the National Company Law Tribunal, Chennai. The Petitioner has claimed that it has not received payment from the farmers for the alleged supply and installation of irrigation systems to the farmers in the Company’s Command area during the year 2010-11, for which the Company stood as a guarantor. The Company has filed a detailed counter refuting all the allegations. The Matter is yet to be heard by the Tribunal. No application under IBC was initiated by the Company as on March 31, 2021. There was no instance of one time Settlement with any Bank or financial institutions.

Annual Return

In terms of section 92 of the Act, the Annual Return of the Company in Form MGT-7 is placed on the website of the company and can be accessed at www.eidparry.com/ investors/Annual Return.

Compliance of Secretarial Standard

The Company has complied with the Secretarial Standards issued by The Institute of Company Secretaries of India and approved by the Central Government as required under Section 118(10) of the Act.

GENERAL

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

Details relating to deposits covered under Chapter V of the Act.
Issue of equity shares with differential rights as to dividend, voting or otherwise.
Issue of shares (including sweat equity shares) to employees of the Company under any scheme save and except ESOP referred to in this Report.

The Managing Director of the Company does not receive any remuneration or commission from any of its subsidiaries.

No significant or material orders were passed by the Regulators or Courts or Tribunals, which impact the going concern status and Company’s operations in future. There are no material changes and commitments, affecting the financial position of the Company which have occurred between 31st March 2021 and the date of this report.

ACKNOWLEDGEMENT

The Board places on record, its appreciation for the cooperation and support received from the investors, customers, farmers, suppliers, employees, government authorities, banks and other business associates.

On behalf of the Board

Place : Chennai V. Ravichandran Date : June 29, 2021 Chairman

Annual Report 2020-21

Percentage of shareholding	56.40	56.40	56.40	56.40	56.40	56.40	56.39	53.58	100.00	100.00	56.40	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	56.40	56.40	56.40	56.39	56.40	56.40
Investments (included in Total Assets)	35,247	-	4,804	20	-	1	-	-	1,453	523	-	337	1,543	-	33	5,738	-	-	-	-	-	675	-	-	-
Proposed Dividend (incl. Dividend Tax)	17,603	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Proft/ (Loss) after Tax	1,31,218	30	(31)	51	-	(3)	(31)	(9)	35	15	1,171	19	130	385	1	(13,865)	918	(4,507)	-	6	6	(1)	16	-	88
Provision for Tax	45,337	15	-	-	-	-	1	-	12	5	318	6	124	-	1	-	(5)	-	-	-	3	-	-	-	32
Proft/ (Loss) Before Tax	1,76,555	45	(31)	51	-	(3)	(30)	(9)	47	20	1,489	25	254	385	2	(13,865)	913	(4,507)	-	6	9	(1)	16	-	120
Total Income (incl. other income)	14,20,537	86	-	264	-	19	91	-	169	21	9,769	26	14,443	5,194	2	2,23,698	1,560	(1,358)	-	255	10	-	63	-	3,000
Total Assets #	8,94,201	2,188	177	144	-	9	160	-	2,581	524	6,257	353	16,252	639	33	1,16,619	3,932	2,985	-	164	286	676	92	7	3,686
Total Liabilities*	3,74,170	503	14	98	-	6	85	2	827	61	2,288	7	8,272	93	1	1,36,459	410	5,082	-	24	3	35	81	-	943
Reserves & Surplus	5,17,097	685	(10,118)	(425)	(19)	(38)	(813)	(20)	1,254	283	3,931	196	(1,673)	(131)	27	(54,399)	(1,654)	(5,097)	-	111	208	141	(12)	1	1,743
Share Capital	2,934	1,000	10,281	471	19	41	888	18	500	180	38	150	9,653	677	5	34,559	5,176	3,000	-	29	75	500	23	6	1,000
Exchange Rate	-	-	73.12	12.99	85.83	55.60	14.07	0.80	-	-	73.12	-	73.44	73.44	-	-	0.10	19.99	85.83	3.68	-	-	0.19	1.30	-
Reporting period	31-Mar-21	31-Mar-21	31-Mar-21	31-Mar-21	31-Mar-21	31-Mar-21	31-Dec-20	31-Mar-21	31-Mar-21	31-Mar-21	31-Mar-21	31-Mar-21	31-Mar-21	31-Mar-21	31-Mar-21	31-Mar-21	31-Mar-21	31-Mar-21	31-Mar-21	31-Dec-20	31-Mar-21	31-Mar-21	31-Dec-20	31-Mar-21	31-Mar-21
Reporting Currency	INR	INR	USD	BRL	EURO	AUD	BRL	ARS	INR	INR	USD	INR	USD	USD	INR	INR	CHP	AED	EURO	MXN	INR	INR	Naira	CFA	INR
Name of subsidiary company	Coromandel International Limited	Parry Chemicals Limited	CFL Mauritius Ltd	Coromandel Brasila Ltda	Sabero Europe BV	Sabero Australia Pty.Ltd	Sabero Organics America SA	Sabero Argentina SA	Parry Infrastructure Co. Pvt Ltd	Parrys Investments Limited	Parry America Inc	Parrys Sugar Limited	US Nutraceuticals Inc	Labelle Botanics LLC	Parry Agrochem Exports Ltd	Parry Sugars Refnery India Pvt Ltd	Alimtec S A	Parry International DMCC	E.I.D. Parry Europe B.V.	Coromandel Agronegocious De Mexico S.A De C.V.	Liberty Pesticides and Fertilisers Ltd	Dare Investments Ltd	Coromandel International (Nigeria) Limited	Coromandel Mali SASU	Coromandel SQM (India) Private Limited
S. No	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Part B: Joint Venture & Associates

==> picture [507 x 30] intentionally omitted <==

----- Start of picture text -----

Name of the Entity Yanmar Coromandel Algavista Greentech Sabero Organics
Agrisolutions Pvt. Ltd. Private Limited Phillipines Asia Inc.
----- End of picture text -----

	Yanmar Coromandel Agrisolutions Pvt. Ltd.	Algavista Greentech Private Limited	Algavista Greentech Private Limited

Relationship	Joint Venture	Joint Venture	Associate
Latest audited/unaudited balance sheet	March 31, 2021	March 31, 2021	March 31, 2021
Number of shares held	16,00,00,000	1,07,00,000	320
Amount of Investment (`In lakh)	1,600	1,070	*
% of shareholding	22.56	50.00	22.56
Networth attributable to the Company(`In lakh)	763	306	3
Proft/(loss) considered in consolidation (`In lakh)	298	(332)	2

*less than a Lakh

Notes:

All the joint ventures/associates have been considered for consolidation.
In case of Sabero Organics Philippines Asia Inc., an Associate there is significant influence due to percentage of voting share capital.

For and on behalf of Board of Directors S Suresh Managing Director

Chennai June 29, 2021

Biswa Mohan Rath Company Secretary

Annual Report 2020-21

ANNEXURE – B TO THE BOARD’S REPORT

FORM NO. MR-3

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2021

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014] and Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 as amended]

The Members,

E.I.D.- PARRY (INDIA) LIMITED CIN: L24211TN1975PLC006989 “Dare House” Parrys Corner Chennai – 600001

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by E.I.D.- Parry (India) Limited [Corporate Identification Number: L24211TN1975PLC006989] (hereinafter called the “the Company”). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts / statutory compliances and expressing our opinion thereon.

Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorised representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on March 31, 2021 complied with the statutory provisions listed hereunder and also that the Company has proper Boardprocess and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter :

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on 31[st ] March, 2021 according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made there under;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA)and the rules made there under;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;
- a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
- b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
- c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018; (Not applicable during the period under review);
- d) The Employee Stock Option Plan, 2016 approved under the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and the Employee Stock Option Scheme, 2007 approved under the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999;
- e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
- f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act, 2013 and dealing with client;
- g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (Not applicable during the period under review); and
- h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018; (Not applicable during the period under review);
(vi) The Management has identified and confirmed the following Laws as being applicable to the Company –
- The Factories Act, 1948;
(iv) The Company has complied with the applicable provisions of Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Overseas Direct Investment. There was no Foreign Direct Investment and Extemal Commercial Borrowings during the year under review.
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (SEBI Act):-
Acts and Rules relating to Sugar industries including The Sugarcane (Control) Order, 1966. The Sugar (Packing and Marking) Order, 1970 and The Sugar Development Fund;
Labour Laws and other incidental laws related to labour and employees appointed by the Company including those on contractual basis as relating to wages, gratuity, prevention of sexual

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

harassment, dispute resolution welfare, provident fund, insurance, compensation etc.,

Industries (Development and Regulation) Act, 1951;
Acts relating to consumer protection including the Competition Act, 2002;
Acts and Rules relating to prevention and control of pollution;
Acts and Rules relating to Environmental protection and energy Conservation;
Acts and Rules relating to Electricity, motor vehicles, explosives, Boilers, etc.,
Acts relating to protection of IPR;
The Information Technology Act, 2000;
The Legal Metrology Act, 2011;
The Food Safety and Standards Act, 2006;
Land revenue Laws and
Other local laws as applicable to various plants and offices;

We believe that the audit evidence which we have obtained is sufficient and appropriate to provide a basis for our audit opinion. In our opinion and to the best of our information and according to explanations given to us, we believe that the systems and mechanisms established by the Company are adequate to ensure compliance of laws as mentioned above.

With respect to the applicable financial laws such as Direct and Indirect tax laws, based on the information & explanations provided by the Management and Officers of the Company and certificates placed before the Board of Directors, we report that adequate systems are in place to monitor and ensure compliance.

We have also examined compliance with the applicable clauses / regulations of the following:

(i) Secretarial Standards with respect to Meetings of Board of Directors (SS-I) and General Meetings(SS-2) issued by The Institute of Company Secretaries of India.
(ii) The Uniform Listing Agreement entered with BSE Limited and National Stock Exchange of India Limited pursuant to the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

During the period under review, the Company generally has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. issued by the Ministry of Corporate Affairs, Securities and Exchange Board of India and such other regulatory authorities for such acts, rules, regulations, standards etc. as mentioned above.

We further report that the Board of Directors of the Company is duly constituted with proper balance of Executive Director, Non-Executive Directors, Woman Independent Director and

Independent Directors. The changes in the composition of Board of Directors that took place during the period under review were carried out in the compliance with the provisions of the Act.

Adequate notice is given to all directors to schedule the Board meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exits for seeking and obtaining further information and clarification on the agenda items before the meeting and for meaningful participation at the meeting. Notes on Agenda which are circulated less than the specified period, the necessary compliances under the Companies Act, 2013 and secretarial standard on Meeting of the Board of Directors are complied with. Board meetings that were held through video conferencing or other audio visual means / the directors who were participated through video conferencing during the period under review, the necessary compliances of Rule 3 & 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 have been complied with. Further, the Circulars, Regulations and Guidelines issued by the Ministry of Corporate Affairs, Securities and Exchange Board of India and other relevant regulatory authorities in view of the pandemic pertaining to Board / Committee meetings, General Meetings and other provisions of the Act, Rules and Regulations have been complied with by the Company.

Based on the verification of the records and minutes, the decisions were carried out with the consent of the Board of Directors / Committee Members and no Director / Member dissented on the decisions taken at such Board / Committee Meetings.Further, in the minutes of the General Meeting, the number of votes cast against the resolutions has been recorded.

We further report that based on review of compliance mechanism established by the Company, we are of the opinion that the management has adequate systems and processes commensurate with its size and operations, to monitor and ensure compliance with all applicable laws including labour laws, rules, regulations and guidelines.

We further report that the above mentioned Company being a listed entity this report is also issued pursuant to Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended and circular No.CIR/CFD/CMD1/27/2019 dated 8th February, 2019 issued by Securities and Exchange Board of India.

We further report that as per the information and explanations provided by the Management, the Company has a Material Unlisted Subsidiary, viz. Parry Sugars Refinery India Private Limited, incorporated in India as defined in Regulation 16(1)(c) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

We further report that during the audit period, the Company has:

Obtained the approval of Shareholders by way of Postal Ballot for increase in the limits for making investments / extending loans and giving guarantees or providing

Annual Report 2020-21

securities in connection with loans to Persons / Bodies Corporate not exceeding a sum of ` 1000 Crores (Rupees One Thousand Crores only) over and above the limits specified under Section 186 of the Act.

Sold 58,50,000 Equity Shares and 58,50,000 Equity Shares held in Coromandel International Limited and June 2, 2020 and December 30, 2020 respectively in open market at a price of 629 and 803 respectively not exceeding 2% of Paid up Share Capital of Coromandel International Limited in each of such transaction.
Issued and allotted 1,000 Secured, Related Listed, Redeemable, Non-Convertible Debentures (“NCDs”) on January 24, 2020 with tenure of 3 years on a private placement basis. The Company has decided to redeem

the NCDs prior to its stated date of redemption. Therefore, the Company fixed the record date for the Early Redemption for payment of Principal and Interest on March 5, 2021 and paid on March 9, 2021.

Place: Chennai For R.SRIDHARAN & ASSOCIATES

Date: June 29, 2021 COMPANY SECRETARIES

CS R.SRIDHARAN CP No. 3239 FCS No. 4775 UIN:S2003TN063400 UDIN: F004775C000542092

This report is to be read with our letter of even date which is annexed as ANNEXURE-A and forms an integral part of this report.

‘ANNEXURE -A’ TO THE SECRETARIAL AUDIT REPORT - E.I.D.-PARRY (INDIA) LIMITED

The Members, E.I.D.- PARRY (INDIA) LIMITED CIN: L24211TN1975PLC006989 “Dare House” Parrys Corner, Chennai – 600001.

Our report of even date is to be read along with this letter.

Maintenance of secretarial records is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records based on our audit.
We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done to ensure that correct facts are reflected in Secretarial records. We believe that the process and practices, we followed provide a reasonable basis for our opinion.
We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
Where ever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.,
It is the responsibility of the management of the company to devise proper systems to ensure compliance with the provisions of Corporate and other applicable laws, rules, regulations, standards and to ensure that the systems are adequate and operate effectively. Our examination was limited to the verification of procedure on test basis.
The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the company.

Place: Chennai Date: June 29, 2021

For R. SRIDHARAN & ASSOCIATES Company Secretaries

CS R.SRIDHARAN CP No. 3239 FCS No. 4775 UlN:S2003TN063400 UDIN: F004775C000542092

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

ANNEXURE – B1 TO THE BOARD’S REPORT

Form No. MR-3

FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2021 [Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

The Members,

PARRY SUGARS REFINERY INDIA PRIVATE LIMITED CIN: U15421TN2006PTC058579 Dare House, Parrys Corner Chennai – 600001

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by PARRY SUGARS REFINERY INDIA PRIVATE LIMITED [Corporate Identification Number:U15421TN2006PTC058579] (hereinafter called “the Company”). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, We hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on 31st March, 2021 complied with the statutory provisions listed hereunder and also that the Company has proper Boardprocesses and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

(i) The Companies Act, 2013 (the Act) and the rules made there under;
(ii) The Company is a Private Limited Company and wholly owned subsidiary of Listed Public Company, consequently it is deemed to be Public Company under the Act and it falls under the purview of provisions of Section 204 of the Companies Act, 2013.
(iii) Since the Company is an unlisted Company, the question of complying with the provisions of the Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made there under does not arise;

and External Commercial Borrowings during the year under review;

(vi) Since the Company is an unlisted Company, the question of complying with the provisions of the following Regulations (a to i) and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’) does not arise.
a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014;
e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;
g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009;
h) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015) and
i) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018;

We have reviewed the systems and mechanisms established by the Company for ensuring compliances under the other applicable Acts, Rules, Regulations and Guidelines prescribed under various laws as informed and certified by the company and categorized under the following major heads/groups–

Factories Act, 1948;
(iv) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder; (Not applicable);
(v) During the year under review the Company has complied with the provisions of Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Overseas Direct Investment. There is no Foreign Direct Investment
Labour laws and other incidental laws related to labour and employees appointed by the Company including those on contractual basis as relating to wages, gratuity, prevention of sexual harassment, provident fund, insurance, compensation etc.;
Acts relating to consumer protection including the Competition Act, 2002;

Annual Report 2020-21

Acts and Rules prescribed under prevention and control of pollution;
Acts and Rules relating to Environmental protection and energy conservation;
Acts and Rules relating to hazardous substances and chemicals;
Acts and Rules relating to Electricity, etc.;
SEZ Act, 2005 & Rules and Regulations made thereunder;
Other local laws as applicable to the plant and offices;
Foreign Trade (Development & Regulation) Act, 1992;

We have also examined compliance with the applicable clauses of the following:

Secretarial Standards with respect to Meetings of Board of Directors (SS-1) and General Meetings (SS-2) issued by The Institute of Company Secretaries of India.

During the period under review, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. as mentioned above.

We further report that the Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. There is no change in the composition of the Board of Directors during the period under review.

Adequate notice is given to all directors to schedule the Board Meetings, Agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications

on the agenda items before the meeting and for meaningful participation at the meeting. Meetings which are convened at shorter notice and agenda / notes on agenda which are circulated less than the specified period, the necessary compliances under the Companies Act, 2013 and Secretarial Standards on Board Meeting are complied with. During the year under review, directors have participated in the committees/board meetings through video conferencing, such meetings were properly convened and recorded in compliance with the provisions of Section 173 (2) of the Act read with Rule 3 & 4 of Companies (Meetings of Board and its Powers) Rules, 2014. Further, the Circulars, Regulations and Guidelines issued by the Ministry of Corporate Affairs, Securities and Exchange Board of India and other relevant regulatory authorities in view of the pandemic pertaining to Board/ Committee meetings, General Meetings and other provisions of the Act, Rules and Regulations have been complied with by the Company.

Based on the verification of the records and minutes, the decisions at the Board / Committee Meetings were taken with the consent of the Board of Directors / Committee Members and no Director / Member had dissented on any of the decisions taken at such Board / Committee Meetings.

We further report that during the audit period, there were no specific events having major bearing on the Company’s affairs in pursuance of above referred laws, rules, regulations, guidelines and standards during the period under review.

For SRINIDHI SRIDHARAN & ASSOCIATES COMPANY SECRETARIES

CS SRINIDHI SRIDHARAN CP No. 17990 ACS No. 47244 Place : Chennai UIN: S2017TN47230 Date : June 28, 2021 UDIN: A047244C000531354

Note: This Report is to be read with letter of even date by Secretarial Auditor, which is annexed as Annexure A and Forms an integral part of this report.

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

‘ANNEXURE-A’ TO THE SECRETARIAL AUDIT REPORT - PARRY SUGARS REFINERY INDIA PRIVATE LIMITED

The Members,

PARRY SUGARS REFINERY INDIA PRIVATE LIMITED CIN: U15421TN2006PTC058579 Dare House, Parrys Corner Chennai – 600001

Our report of even date is to be read along with this letter.

Maintenance of secretarial records is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records based on our audit.
We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
We have not verified the correctness and appropriateness of financial records and Books of Account of the company.
Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.
It is the responsibility of the management of the company to devise proper systems to ensure compliance with the provisions of all applicable laws, rules, regulations, standards and to ensure that the systems are adequate and operate effectively. Our examination was limited to the verification of procedure on test basis.
The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness with which the management has conducted the affairs of the company.

Place : Chennai Date : June 28, 2021

For SRINIDHI SRIDHARAN & ASSOCIATES COMPANY SECRETARIES

CS SRINIDHI SRIDHARAN CP No. 17990 ACS No. 47244 UIN: S2017TN47230 UDIN: A047244C000531354

Annual Report 2020-21

ANNEXURE – C TO THE BOARDS REPORT

ANNUAL REPORT ON CORPORATE SOCIAL RESPOSIBILITY ACTIVITIES FOR THE FINANCIAL YEAR 2020–21

Brief outline on CSR Policy of the Company.

E.I.D. - Parry (India) Limited (EID Parry) believes that social responsibility is not just a corporate obligation that has to be carried out but it is one’s dharma. EID Parry has been carrying out CSR activities for a long time through AMM Foundation (AMM) while also extending CSR activities to the local communities in and around its factories located in the States of Tamil Nadu, Andhra Pradesh and Karnataka.

EID Parry had identified the following broad program areas with focus on quality service delivery and empowerment:

Providing basic health care facilities to economically backward societies across geographical areas, Improving access to education, Provision of Skill Development/ Vocational Training, Rural Development, Environmental Sustainability, Promoting Sports, Arts & Culture and Sustainable livelihood.

The Company’s CSR Policy has been hosted on its website at www. eidparry.com.

Composition of CSR Committee:

Sl. No.	Name of Director	Designation / Nature of Directorship	Number of meetings of CSR Committee held duringtheyear	Number of meetings of CSR Committee attended duringtheyear
1.	V. Manickam	Chairman / NE,I	2	2
2.	V. Ravichandran	Member / NE,NI	2	2
3.	S. Suresh	Member / E,NI	2	2

Non Executive (“NE”), Executive (“E”), Non Independent (“NI”) and Independent (“I”)

Provide the web-link where Composition of CSR Policy - https://www.eidparry.com/wp-content/themes/eid/pdf/ CSR committee, CSR Policy and CSR projects pc/CSR-Policy.pdf approved by the board are disclosed on the CSR Committee - https://www.eidparry.com/about-us/committees-of-

website of the company. the-board

CSR Projects – https://www.eidparry.com/policies-codes/

Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report).
Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any

Not Applicable

` 319.47 Lakh

|Sl. No.|Financial Year
2019-20
2018-19
2017-18|Amount available for set-off from
precedingfnancialyears(in)|Amount required to be setoff for the fnancialyear,if any (in)|
|---|---|---|---|
|1.||88.81 Lakh|Nil|
|2.||120.40Lakh|Nil|
|3.||110.26Lakh|Nil|

Average net profit of the company as per section 135(5)
` (11,070 Lakh)

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

(a) Two percent of average net profit of the company as per section 135(5)
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years.
(c) Amount required to be set off for the financial year, if any

Nil

(d) Total CSR obligation for the financial year Nil (7a+7b- 7c).
(a) CSR amount spent or unspent for the financial year:

Total Amount Amount Unspent (in ) Spent for the Total Amount transferred to Unspent Amount transferred to any fund specified under Financial Year CSR Account as per section 135(6) Schedule VII as per second proviso to section 135(5) (in) Amount Date of transfer Name of the Fund Amount Date of transfer 124.57 Lakh NA NA

(b) Details of CSR amount spent against ongoing projects for the financial year:

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(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Sl. Name Item from Local Location of the Project Amount Amount Amount Mode of Mode of
No of the the list of area project duration allocated spent transferred Implementa Implementation -
Project activities in (Yes/ for the in the to tion - Direct Through Implementing
Schedule No) project current Unspent CSR (Yes/No) Agency
VII to the (in ) financial Account for Act Year (in) the
project as
State District per Name CSR
Section Registration
135(6) (in `) number
Nil
Total
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Annual Report 2020-21

(8)	Mode of Implementation - Through Implementing Agency	Name CSR Registration number	- -				- -			AMM CSR00000050	Foundation	- -					- -			- -				- -						Help Age CSR00000901	India

(7)	Mode of implementation -	Direct (Yes/No)	Yes				Yes			No		Yes					Yes			Yes				Yes						No

(6)	Amount spent for the project (`in	Lakh)	2.35				0.43			35.00		22.70					21.33			0.50				2.59						19.34

(1) (2) (3) (4) (5)	Sl. No Name of the Project Item from the list of activities in Local area (Yes/ Location of the project	schedule VII to the Act No) State District	1. Supply of sanitizer, medical camps Healthcare Yes Tamil Nadu Cuddalore	and medical equipments for covid-19	prevention & control to nearby public,	govt depts, etc..	2. Supply of food material / grocery items Eradicating Yes Tamil Nadu Cuddalore	to nearby public and other needy hunger and	segments malnutrition	3. Wellness on wheels - Mobile Health Healthcare Yes Karnataka Uttara	Van thru' AMM Kannada	4. Financial Support to Balavadi School/ Education Yes Karnataka Uttara	Financial support to NGO involving Kannada	female childen & Women skill	developments & children educational	expenses reimbursement	5. Supply of food material / grocery items Eradicating Yes Karnataka Uttara	to nearby public and other needy hunger and Kannada	segments malnutrition	6. Supply of sanitizer, medical camps Healthcare Yes Karnataka Belagavi	and medical equipments for covid-19	prevention & control to nearby public,	govt depts, etc..	7. 1.Vaccination for H&T gangs Healthcare Yes Karnataka Bagalkot	children and Bullocks.	2. Supply of Sanitizer, medical camps	and medical equipments for covid-19	prevention & control to nearby public,	govt depts, etc	8. Wellness on wheels - Mobile Health Healthcare Yes Andhra Srikakulam	Van thru' Helpage India for providing Pradesh	basic health care for elderly and	poor people in and around Rajam,	Srikakulam District, Andhra Pradesh

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

(8)	Mode of Implementation - Through Implementing Agency	Name CSR Registration number	- -				- -		- -			- -			- -			- -			- -			- -

(7)	Mode of implementation -	Direct (Yes/No)	Yes				Yes		Yes			Yes			Yes			Yes			Yes			Yes

(6)	Amount spent for the project (`in	Lakh)	4.95				5.45		1.20			0.40			6.92			0.50			0.36			0.55					124.57

(5)	Location of the project	State District	Andhra Srikakulam	Pradesh			Andhra Srikakulam	Pradesh	Andhra Srikakulam	Pradesh		Tamil Nadu Cuddalore			Tamil Nadu Pudukkottai			Tamil Nadu Sivagangai			Karnataka Bagalkot			Karnataka Uttara	Kannada

(4)	Local area (Yes/	No)	Yes				Yes		Yes			Yes			Yes			Yes			Yes			Yes
(3)	Item from the list of activities in	schedule VII to the Act	Healthcare				Education		Eradicating	hunger and	malnutrition	Eradicating	hunger and	malnutrition	Making	available safe	drinking water	Eradicating	hunger and	malnutrition	Eradicating	hunger and	malnutrition	Education
(2)	Name of the Project		Supply of Sanitizer, medical camps	and medical equipments for covid-19	prevention & control to nearby public,	govt depts, etc	Donation of school fees for children of	farmers	Supply of food material / grocery items	to nearby public and other needy	segments	Supply of food material/grocery items	to nearby public and other needy	segments	Supply of drinking water to nearby	villages of Pudukottai unit		Supply of food material/grocery items	to nearby public and other needy	segments	Supply of food material/grocery items	to nearby public and other needy	segments	Financial support to Balavadi School/	Financial support to NGO involving	female children & women skill	developments & children educational	expenses reimbursement	Total

(1)	Sl. No		9.				10.		11.			12.			13.			14.			15.			16.

Annual Report 2020-21

(d) Amount spent in Administrative Overheads Nil (e) Amount spent on Impact Assessment, if applicable NA (f) Total amount spent for the Financial Year (8b+8c+8d+8e) `124.57 Lakh
(g) Excess amount for set off, if any

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Sl. No. Particulars Amount
(i) Two percent of average net profit of the company as per Section 135(5) Nil
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Sl. No. (i)	Particulars Twopercent of average netproft of the companyasper Section 135(5)	Amount Nil
(ii)	Total amount spent for the Financial Year	`124.57 Lakh
(iii)	Excess amount spent for the fnancialyear[(ii)-(i)]	`124.57 Lakh
(iv)	Surplus arising out of the CSR projects or programmes or activities of the previous fnancialyears,if any	Nil
(v)	Amount available for set off in succeedingfnancialyears[(iii)-(iv)]	`124.57 Lakh

(a) Details of Unspent CSR amount for the preceding three financial years: Not Applicable

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Sl. Preceding Amount Amount spent Amount transferred to any fund Amount
No Financial transferred to Unspent in the reporting specified under Schedule VII as per remaining to
Year CSR Account under Financial Year section 135(6), if any be spent in
section 135 (6) (in ) Name of Amount Date of Succeeding (in) the Fund (in ) transfer financial years. (in)
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Total

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s) : Not Applicable

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(1) (2) (3) (4) (5) (6) (7) (8) (9)
Sl. Project Name of Financial Year Project Total amount Amount spent Cumulative Status of
No. ID the Project in which the duration allocated for on the project amount spent the project -
project was the project for in the current at the end of Completed
commenced FY 2020-21 Financial Year Reporting /Ongoing
(in ) (in) Financial Year
(in `)
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In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year (asset-wise details) :
(a) Date of creation or acquisition of the capital asset(s). NA (b) Amount of CSR spent for creation or acquisition of capital asset. NA (c) Details of the entity or public authority or beneficiary under whose NA name such capital asset is registered, their address etc.
(d) Provide details of the capital asset(s) created or acquired (including NA complete address and location of the capital asset).
Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5):
Not Applicable

Chennai June 29, 2021

S.Suresh Managing Director

V.Manickam Chairman, CSR Committee

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

ANNEXURE – D TO THE BOARD’S REPORT

PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO AS REQUIRED UNDER THE COMPANIES (ACCOUNTS) RULES, 2014

A. CONSERVATION OF ENERGY

Energy Conservation Initiatives:

The Company’s focus on energy and resource conservation has made its Co-gen and the sugar factories the best in its class with respect to efficiency and environment friendly operations. Various energy conservation projects has been carried out across the plants like:

Replacement of tubular heaters with DCH and replacement of tubular shell and tube heaters with PHE for better recovery has resulted in saving 1.3% steam on cane in Haliyal.
Bagalkot plant installed and commissioned Plate type heat exchangers for juice heating to reduce the steam consumption by 1%.
Plate heat exchangers for raw juice heating brought 2% reduction in steam% cane in Pugalur thereby reducing the coal consumption by 11 Tons per day.
Judicious utilisation of the rainwater at Haliyal Unit has helped in reducing the river water consumption during the monsoon to an extent of 20000 m3

B. TECHNOLOGY ABSORPTION

The efforts made towards technology absorption and benefits derived:

In its continued effort towards sustainable water utilisation, the Company has embarked on a Zero Liquid Discharge project at Nellikuppam sugar factory. The condensate polishing system had enabled recycling of 15 Crore Litres of water. Based on the outcome, a condensate polishing unit has also been commissioned at Sankili, which has substantially reduced the water consumption. The Company propose to install another condensing polishing unit at Bagalkot in order to reduce the water consumption at Bagalkot.
6 m3 per hour of rinse water is generated from IER system and rinse water recovery system is installed at Haliyal to recover 100MT of pure water and the reject is sent to BRS for salt recovery, thus making the system zero liquid discharge.
Additional RO membrane in Process RO at Sivagangai for additional 5% reject water saving thus increasing the recovery from 85% to 90% and the same has been re-used in fermentation.

Electrical Energy Conservation:

C. FOREIGN EXCHANGE EARNINGS AND OUTGO :

As the Market rates for electrical energy has dropped as compared to the last year, the Company has managed to ensure that the Cogen plants to run for meeting the heat requirement and saved on electrical energy excess generation and internal consumption.

` Lakh

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Particulars 2020-21 2019-20
Foreign exchange earned 17,116 12,770
Foreign exchange outgo :
(i) Towards expenditure 687 695
(ii) Towards dividend - -
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On behalf of the Board

Place : Chennai Date : June 29, 2021

V. Ravichandran Chairman

Annual Report 2020-21

ANNEXURE - E TO THE BOARD’S REPORT

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013

DETAILS OF LOAN GIVEN

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` Lakh
Name of the entity Parry Sugars Refinery India Private Limited
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Loans outstandingas on 1st April, 2020	-
Loangiven duringtheyear	40,000
Loans repaid includingforeign exchange difference duringtheyear	-
Converted into EquityShares duringtheyear	-
Converted into Preference Shares	-
Loans outstandingas on 31st March,2021	40,000
Purpose for the loan given	For repayment of external loans and for general corporatepurposes.

DETAILS OF GUARANTEES PROVIDED

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Name of the entity Particulars Amount Purpose
(` Lakh)
Parry Sugars Refinery India Long Term guarantee given 11,000 Issue of Debentures for repaying the
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Private Limited	to Debenture Trustee - IDBI TrusteeshipServices Limited		high cost loans availed by Parry Sugars RefneryIndia Private Limited
Alimtec S.A.	Standby Letter of Credit (USD 1.00 Million)to BANCO DE CHILE	731	Capital expenditure and Working Capital requirement.
US Nutraceuticals LLC.	Standby Letter of Credit / USD 10.00 Million to Wells Fargo Bank N.A,USA	7,311	Working Capital Requirement

DETAILS OF INVESTMENTS

The details of investments made by the Company have been given in Note no. 5A, 5B & 6 of the Annual Accounts.

On behalf of the Board

Place : Chennai Date : June 29, 2021

V. Ravichandran Chairman

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

ANNEXURE – F TO THE BOARD’S REPORT

PARTICULARS OF EMPLOYEES

Disclosure of Remuneration Under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

The details of remuneration during the financial year, 2020-21 as per Rule 5(1) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014, as amended, are as follows:

The ratio of Remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2020-21:

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Name of Director Designation Ratio #
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Mr. Ravichandran V	Chairman	4.92
Mr. Suresh S	ManagingDirector	55.63
Mr. AjayB Baliga	Director	5.16
Mr. Manickam V	Director	6.30
Mr. Ramesh K B Menon	Director	4.57
Mr. Ranganathan.C.K*	Director	3.48
Dr.(Ms) R. cā Godbolé	Director	5.25
Mr. Venkatachalam M M	Director	5.07

Note: Remuneration including sitting fees

- Number of times the median remuneration

- Ceased to be a director w.e.f February 7, 2021
The percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary in the financial year 2020-21:

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Name of the Director Designation % increase in
remuneration
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Mr. Ravichandran V	Chairman	262.64
Mr. Suresh S	ManagingDirector	6.07
Mr. AjayB Baliga	Director	394.29
Mr. Manickam V	Director	294.39
Mr. Ramesh K B Menon	Director	337.14
Mr. Ranganathan C K*	Director	349.05
Dr.(Ms) R. cā Godbolé	Director	282.61
Mr. Venkatachalam M M	Director	325.00
Mr. S. Rameshkumar	Chief Financial Offcer	8.23
Mr. Biswa Mohan Rath	CompanySecretary	11.01

Ceased to be a director w.e.f February 7, 2021

The remuneration to the Non-Executive Directors comprise of sitting fees paid for attending the Board / Committee meeting and Commission to be paid on adoption of accounts.

The actual payment of sitting fee is based on the number of meetings attended by the Director.

Last year, the Company has not paid any commission to the Non-Executive Directors due to inadequate profit as per the provisions of Section 197 read with Section 198 of the Companies Act, 2013.

The percentage increase in the median remuneration of employees in the financial year: 6.27 %
The number of permanent employees on the rolls of Company: 2022

Annual Report 2020-21

Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and comparison with the percentile increase in the managerial remuneration and justification thereof. Whether there are any exceptional circumstances for increase in the managerial remuneration.

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Parameters
Average % increase in the salaries of employees 3.50%
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Parameters Average % increase in the salaries of employees	3.50%
other than managerial personnel viz., Managing Directors in the fnancialyear,2020-21
Average % increase in the managerial remuneration in the fnancial year, 2020-21 viz., Managing Director’s remuneration	6.07%
Remarks	The Managing Directors’ remuneration comprises of fxed and variable component. The annual increment in salary is determined by the Nomination & Remuneration Committee on the basis of Company fnancials, level of responsibility, experience and scales prevailing in the industry. The Managing Director has not received any increment in salary duringthe Financial Year 2020- 21

6. Affirmation:

The Company affirms that the remuneration paid to the employees during the financial year 2020-21 is as per the Remuneration Policy of the Company.

Notes:

The nature of employment of all employees above is whole time in nature and terminable with 3 months notice on either side.
Remuneration as shown above includes salary, allowances, leave travel assistance, Company’s contribution to Provident Fund, Superannuation Fund and Gratuity Fund. Medical facilities and perquisites valued in terms of actual expenditure incurred by the Company in providing the benefits to the employees excepting in case of certain expenses where the actual amount of expenditure cannot be ascertained with reasonable accuracy, and in such cases, notional amount as per income tax rules has been adopted.
Remuneration as shown above does not include amount attributable to compensated absences as actuarial valuation is done for the Company as a whole only.
The deemed benefit on exercise of options under Company’s ESOP Scheme has not been considered as there is no Cost to the Company.
The above mentioned employees are not relatives (in terms of the Companies Act, 2013) of any Director of the Company.

On behalf of the Board

Place : Chennai Date : June 29, 2021

V. Ravichandran Chairman

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

REPORT ON CORPORATE GOVERNANCE

Pursuant to Regulation 34 read with Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended [“SEBI (LODR) Regulations”]

COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE

E.I.D.-Parry, a member of the Murugappa Group of Companies, believes in high standards of governance and adheres to good corporate practices and is constantly striving to improve them and adopt the best practices. Adherence to business ethics, transparency in dealings with all stakeholders, adequate and timely disclosure of information and commitment to corporate social responsibility are the basic elements of the governance policy of the Company. The Board recognizes that governance expectations are constantly evolving and it is committed to its standards of transparency and dissemination of information to meet both letter and spirit of the law and its own demanding levels of business ethics. The Company is committed to the spirit of Murugappa Group by upholding the core values of integrity, passion, responsibility, quality and respect in dealing with all stakeholders of the Company.

2. BOARD OF DIRECTORS

2.1 Composition and Changes during the Year

Composition

As on March 31, 2021, the Board of Directors of the Company (“Board”) had an optimum number of Executive, Non Executive Directors and Non Executive Independent Directors having expertise in the fields of business strategy, finance, marketing and business management. All the Independent Directors satisfy the criteria of independence specified in the Companies Act, 2013 (Act), Regulation 16 (1) (b) of the SEBI (LODR) Regulations and meet the criteria for appointment formulated by the Nomination and

Remuneration Committee (“NRC”) as approved by the Board.

NRC has formulated a policy on criteria for Board Nominations. It ensures diversity of qualification, experience, expertise and gender in the composition of the Board. The board members are appointed through a transparent process. The Independent Directors are issued appointment letters and the format of the appointment letter with terms and conditions of their appointment have been disclosed on the website of the Company www.eidparry.com/ about-us/independent-directors/. Each independent director is familiarized with the Company, business, industry, roles and responsibilities, the details of which are available on the website of the Company. www. eidparry.com/about- us/independent-directors/.

Independent Directors are appointed for a specific term based on the recommendations of the NRC by the Board and the members at their respective meetings. Non independent Directors are appointed as per the provisions of the Act and SEBI (LODR) Regulations. The profiles of Directors can be found on https://www. eidparry.com/about-us/board-of-directors/

The strength of the Board as on March 31, 2021 was seven directors, consisting of one Non Executive Non Independent Chairman, a Managing Director, two Non Independent Directors, one of them being a promoter and three Independent Directors including a woman director. The composition of the Board is in conformity with the Act and SEBI (LODR) Regulations.

The Composition of the Board, the number of directorship, membership and chairmanship held by each Director on the Board/ Committees of the Board of other Companies as on March 31, 2021 were as under:

Sl. No	Name of the Directors	DIN	Category	Position	No. of Directorships & Committee membership in Public Companies (excludingEID)	No. of Directorships & Committee membership in Public Companies (excludingEID)	No. of Directorships & Committee membership in Public Companies (excludingEID)	No. of Directorships & Committee membership in Public Companies (excludingEID)	Directorship in other Listed Entity	Category of Directorship
					Board*		Committee**
					Director	Chairman	Member	Chairman
1.	Mr. V. Ravichandran	00110086	NE,NI	Chairman	2	-	-	-	-	-
2.	Mr. S. Suresh	06999319	E	Managing Director	1	-	-	-	-	-
3.	Mr. V. Manickam	00179715	NE, I	Director	1	1	2	1	1. The India Cements Capital Limited	Chairman & NE,I

Annual Report 2020-21

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Sl. Name of the Directors DIN Category Position No. of Directorships & Committee Directorship in Category of
No membership in Public Companies other Directorship
(excluding EID) Listed Entity
Board Committee
Director Chairman Member Chairman
4. Mr. Ramesh K B Menon 05275821 NE, NI Director 3 - 3 1. Coromandel NE,NI
International
Limited
5. Mr.M.M.Venkatachalam 00152619 NE, NI Director 7 4 - 1. Ramco Systems NE,I
Limited NE,I
2. The Ramco
NE,NI
Cements Limited
NE,NI
3. Coromandel
International
Limited
4. Coromandel
Engineering
Company
Limited
6. Dr. (Ms) R. cā Godbolé 07306268 NE, I Director - - - - - -
7 Mr. Ajay B Baliga 00030743 NE, I Director - - - - - -
Note :
----- End of picture text -----*

Mr. C.K.Ranganathan who was an independent director of the Company, resigned from the Board with effect from February 7, 2021.

Mr. T. Krishnakumar joined the Board as an Independent Director on May 6, 2021.

Non Executive (“NE”), Executive (“E”), Non Independent (“NI”) and Independent (“I”)

Excludes directorship in Foreign companies, Private companies and Section 8 companies .

**Represents memberships of Audit and Stakeholders Relationship Committees in Public Limited Companies & Private Limited Companies which are subsidiaries of Public Limited Companies.

None of the directors on the board is a member of more than 10 committees or chairman of more than 5 committees across all the Companies in which he/she is a director as required under Regulation 26 (1) of SEBI (LODR) Regulations.

None of the independent directors on the board is an independent Director in more than seven Listed Companies as required under Regulation 25 (1) of SEBI (LODR) Regulations.

None of the directors are related to each other.

Changes in the Board during the year.

Mr.C K Ranganathan, Independent Director resigned from the Board w.e.f February 7, 2021.

2.2 Board Process

The Board meets at least once in each quarter to review, the matters specifically reserved for its attention to ensure that it exercises full control over significant strategic, financial, operational and compliance matters. Additional board meetings are held to approve the Business Plan of the Company and other specific purposes. The board is regularly briefed and updated on the key activities of the business and is provided with presentations on operations, quarterly financial

statements, subsidiary performance, and other specific matters concerning the Company.

The maximum time gap between two meetings does not exceed 120 days. The schedule of the Board meetings and Board Committee meetings is communicated in advance to the Directors to enable them to attend the meetings. The Company has a web-based portal i.e Digiboard accessible to all the Directors which contains Notice, Board agenda, detailed notes on agenda of each Board Meeting, Minutes and Presentations in compliance with Secretarial Standard on Meeting of the Board of Directors (SS-1) issued by The Institute of Company Secretaries of India.

The Board periodically reviews compliance reports of all laws applicable to the Company, as prepared by the Company as well as steps taken by the Company to rectify instances of non-compliances. The Board is also free to recommend inclusion of any matter for discussion in consultation with Chairman. The Board has no restriction to access any information and employees of the Company.

All the discussions and decisions taking place in every meeting of the Board are entered in the Minute Book. The draft minutes are circulated within the specified time to the Board and suggestions or comments for

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

changes, if any, are suitably incorporated in the minutes and the minutes are signed by the Chairman of the same meeting or by the Chairman of the succeeding meeting within the prescribed time period. The important decisions taken at the Board Meeting are communicated to the concerned department of the Company and an action taken report is placed at each Board Meeting.

The process specified for the Board meeting above are followed for the meetings of all the Committees constituted by the Board, to the extent possible. The minutes of the meetings of the Committees of the Board are placed before the Board for noting. The minutes of the subsidiary Companies are placed before the Board on a quarterly basis.

Pursuant to the provisions of the Act and SEBI (LODR) Regulations, evaluation of the performance of the Board, Committees of the Board and individual directors was carried out by the Board for the year 2020-21. The questionnaires were prepared in a structured manner taking into consideration the guidance notes on Board Evaluation issued by the SEBI. The performance of

each of the Individual Directors was evaluated on parameters such as attendance, level of participation in the meetings and contribution, independence of judgement, safeguarding the interest of the Company and other stakeholders, etc.

The performance evaluation of all the independent directors was done by the entire Board excluding the concerned independent director based on the criteria of performance evaluation laid down by the NRC.

The performance evaluation of the Chairman and the Non Independent Directors were carried out by the independent directors.

2.3 Board meeting and attendance of directors

Seven Board meetings were held during the year ended March 31, 2021 (“Year”) i.e. June 11, 2020, August 05, 2020, November 09, 2020, December 16, 2020, January 22, 2021, February 8, 2021 and March 25, 2021 and the maximum gap between any two Board meetings did not exceed one hundred twenty days during the Year.

The attendance of Directors at Board Meeting (“BM”) and last AGM were as under:

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Attendance #
Sl. Name of the Directors Position BMs AGM held on
No August 05,2020
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1	Mr. V. Ravichandran	Chairman	7	Present
2	Mr. S. Suresh	ManagingDirector	7	Present
3	Mr. V. Manickam	Director	7	Present
4	Mr. Ramesh K B Menon	Director	7	Present
5	Mr. C.K.Ranganathan @	Director	5	Present
6	Mr. M.M.Venkatachalam	Director	7	Present
7	Dr.(Ms) R. cā Godbolé	Director	7	Present
8	Mr. AjayB Baliga	Director	7	Present

includes attendance through video conference

@ ceased to be a director with effect from February 7, 2021

2.4 Details of shares held by Non-Executive Directors as on March 31, 2021:

None of the directors hold any equity shares and convertible securities in the Company.

2.5 Meeting of Independent Directors

As per the requirement under Regulation 25 (3) of the SEBI (LODR) Regulations and Schedule IV of the Act, the independent directors of the listed entity shall hold at least one meeting in a year, without the presence of non-independent directors and members of the management and all the independent directors shall strive to be present at such meeting. A meeting was held by Independent Directors on March 25, 2021 for the financial year 2020-21.

2.6 The Board has identified the following skills / expertise / competence fundamental for the effective functioning of the Company, which are currently available with the Board.
Corporate Strategy, Business Strategy
Marketing, Sales, Supply Chain Management, Product Development and Branding
Operations
Finance / Financial Management
Leadership experience and understanding of significant organisations, their process, strategies, planning etc.
Auditing, Taxation, Risk Advisory
Governance Practices, Compliance
Agriculture

Annual Report 2020-21

Given below is a list of core skills, expertise and competencies of the individual Directors:

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Skills description Mr. V Mr. S. Mr. V. Mr. Ramesh Mr. M M Dr. (Ms.) Mr.Ajay
Ravichandran Suresh Manickam K B Menon Venkatachalam R.cā B Baliga
Godbolé
      
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Skills description Corporate Strategy	Mr. V Ravichandran 	Mr. S. Suresh 	Mr. V. Manickam 	Mr. Ramesh K B Menon 	Mr. M M Venkatachalam 	Dr. (Ms.) R. cā Godbolé 	Mr.Ajay B Baliga 
, BusinessStrategy
Marketing, Sales, Supply Chain Management, Product Development and Branding							
Operations							
Finance/ Financial Management			
Leadership experience and understanding of signifcant organisations, their process, strategies, planning etc.							
Auditing, Taxation, Risk Advisory							
Governance, Practices & Compliance							
Agriculture						

Note

Mr. C.K.Ranganathan resigned w.e.f February 7, 2021. He had expertise in the areas of Corporate Strategy, Business Strategy, Marketing, Sales, Supply Chain Management, Product Development and Branding, Operations, Finance/ Financial Management, Leadership experience and understanding of significant organisations, their process, strategies, planning etc. and Governance, Practices & Compliance.

3. COMMITTEES OF THE BOARD

The Board has constituted different committees as required under the Companies Act, 2013 and SEBI (LODR) Regulations. Details of the Committees and their terms of reference are given below.

During the year, all the recommendations made by the Committees were accepted by the Board of Directors.

The Company Secretary acts as the Secretary to the committees.

3.1 Audit Committee

The Audit Committee has been constituted as required under Section 177 of the Act and Regulation 18 of the SEBI (LODR) Regulations.

3.1.1 Brief Description of the Terms of Reference

Audit Committee

Oversight of the Company’s financial reporting process and disclosure of financial information;
Reviewing, with the management, the annual financial statements and auditors’ report thereon before submission to the Board for approval.
Evaluation of internal financial controls and risk management systems.
Recommendations for appointment, remuneration and terms of appointment of auditors of the Company.
Monitoring the usage of funds from issue proceeds, to grant approvals for related party transactions which are in the ordinary course of business and on arms length basis.

3.1.2 Composition of the Committee and attendance

The Audit Committee comprises of four directors. The committee met seven times during the year on June 11, 2020, August 04, 2020, November 9, 2020, December 16, 2020, January 22, 2021, February 08, 2021 and March 25, 2021. The details of the composition of the Committee and attendance of the members were as follows:

Name of the Directors	Position	Category	No. of Meetings attended
Mr.V. Manickam	Chairman	NE,I	7
Dr.(Ms) R.cā Godbolé	Member	NE,I	7
Mr.M.M.Venkatachalam	Member	NE,NI	7
Mr. AjayB Baliga	Member	NE,I	7

Non Executive (“NE”), Non Independent (“NI”) and Independent (“I”)

The Managing Director, Head of Internal Audit, Chief Financial Officer, Senior Management team members and the Statutory Auditors are invited to attend all the meetings of the Committee. The Cost Auditors are invited to the meeting as and when required.

The committee members have separate discussions with the statutory auditors as well as internal auditors

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Corporate Overview Management Reports Financial Statements

without the presence of the management team. During the year 2020-21, the Audit Committee had such a meeting on March 25, 2021.

3.2 Nomination & Remuneration Committee

The Nomination & Remuneration Committee has been constituted as required under Section 178 of the Act and Regulation 19 of the SEBI (LODR) Regulations.

3.2.1 Brief description of Terms of Reference

Formulation of the criteria for determining qualifications, positive attributes and independence of a director and recommend to the board of directors a policy relating to, the remuneration of the directors, key managerial personnel and other employees;
Formulation of criteria for evaluation of performance of independent directors and the board of directors;
Devising a policy on diversity of board of directors;
Identifying persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down, and recommend to the board of directors their appointment and removal.
Whether to extend or continue the term of appointment of the independent director, on the basis of the report of performance evaluation of independent directors.
Recommend to the board, all remuneration, in whatever form, payable to senior management.

3.2.2 Composition of the Committee and attendance

The Nomination & Remuneration Committee met two times during the year on June 11, 2020 and August 5, 2020 and the details of the composition of the Committee and attendance of the members are as follows:

Name of the Directors	Position	Category	No. of Meetings attended
Mr. C.K. Ranganathan*	Chairman	NE,I	2
Mr. AjayB Baliga**	Chairman	NE,I	0
Mr V. Ravichandran	Member	NE,NI	2
Dr.(Ms) R.cā Godbolé	Member	NE,I	2
Mr. Ramesh K B Menon	Member	NE,NI	2

Non Executive (“NE”), Non Independent (“NI”) and Independent (“I”)

*Chairman upto February 7, 2021

** Chairman from February 8, 2021

3.3 Stake Holders Relationship Committee

The Stakeholders Relationship Committee has been constituted as required under Section 178 of the Act and Regulation 20 of the SEBI (LODR) Regulations.

3.3.1 Brief description of the Terms of Reference

Formulation of shareholders servicing policies
Review and redressal of investor complaints;
Approval/overseeing of transfers, transmissions, transpositions, splitting, consolidation of securities, issue of new / duplicate certificates, demat/remat requests, administering the unclaimed shares suspense account;
Allotment of shares on exercise of Options by employees under the Employees Stock Option Scheme/Plan; and
Determining the standards for resolution of shareholders grievance.
Resolving the grievances of the security holders.
Review of measures taken for effective exercise of voting rights by shareholders.
Performing other functions as delegated to it by the Board from time to time.

3.3.2 Composition of the Committee and attendance

The Stakeholders Relationship Committee met four times during the year on June 10, 2020, August 4, 2020, November 9, 2020 and February 8, 2021. The details of the composition of the Committee and attendance of the members are as follows.

Name of the Directors	Position	Category	No. of Meetings attended
Mr. V Ravichandran	Chairman	NE,NI	4
Mr. V Manickam	Member	NE,I	4
Mr. S Suresh	Member	E,NI	4
Mr. Ramesh K B Menon	Member	NE,NI	4

Non Executive (“NE”), Executive (“E”), Non Independent (“NI”) and Independent (“I”)

Mr.Biswa Mohan Rath, Company Secretary is the compliance officer.

3.3.3 Number of complaints received and redressed during the year are given below:

Opening Balance Received during the fnancial year 2020-21	Redressed during the fnancial year 2020-21	Closing Balance
Nil Nil	Nil	Nil

3.4 Risk Management Committee

The Risk Management Committee has been constituted as required under Regulation 21 of the SEBI (LODR) Regulations.

3.4.1 Brief description of Terms of reference

To formulate a risk management policy.

Annual Report 2020-21

To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the business of the Company;
To monitor and oversee implementation of the risk management policy, including evaluating the adequacy of risk management systems;
To periodically review the risk management policy including by considering the changing industry dynamics and evolving complexity;

3.4.2 Composition of the Committee and attendance

During the year, a Risk Management Committee meeting was held on March 24, 2021. The details of the composition of the Committee and attendance of the members were as follows:

Name of the Directors	Position	Category	No. of Meetings attended
Mr. V. Manickam	Chairman	NE,I	1
Mr. S. Suresh	Member	E,NI	1
Mr. V. Ravichandran	Member	NE,NI	1
Mr. AjayB Baliga	Member	NE,I	1

Non Executive (“NE”), Executive (“E”), Non Independent (“NI”) and Independent (“I”)

3.5 Corporate Social Responsibility (CSR) Committee

The Corporate Social Responsibility Committee has been constituted as required under Section 135 of the Act.

3.5.1 Brief Description of the Terms of reference

To formulate and recommend to the Board, a CSR Policy which shall indicate the activities to be undertaken as specified under schedule VII of Companies Act, 2013.
To recommend the amount of expenditure to be incurred on the CSR activities.
To monitor the CSR Policy of the Company from time to time
To prepare a transparent monitoring mechanism for ensuring implementation of the projects/ programmes/ activities proposed to be undertaken by the Company and to do all such acts, deeds and things as may be required in connection with the CSR activities.

3.5.2 Composition of the Committee and attendance

The Corporate Social Responsibility Committee met two times during the year, on June 10, 2020 and March 24, 2021. The details of the composition of the Committee and attendance of the members were as follows:

Name of the Directors	Position	Category	No. of Meetings attended
Mr.V Manickam	Chairman	NE,I	2
Mr. V Ravichandran	Member	NE,NI	2
Mr. S Suresh	Member	E,NI	2

Non Executive (“NE”), Executive (“E”), Non Independent (“NI”) and Independent (“I”)

REMUNERATION OF DIRECTORS

4.1 Remuneration Policy

On the recommendation of the Nomination and Remuneration Committee, the Board has framed a Policy for the members of the Board of Directors, Key Managerial Personnel, Senior Management and other employees of the Company.

This Policy is guided by the principles and objectives as enumerated under Section 178 of the Companies Act, 2013 and Regulation 19 read with Part D of Schedule II of the SEBI (LODR) Regulations, to ensure reasonableness and sufficiency of remuneration to attract, retain and motivate competent resources, a clear relationship of remuneration to performance and a balance between rewarding short and long- term performance of the Company.

This policy reflects the remuneration, philosophy and principles of the Murugappa Group and considers the pay and employment conditions with peers / competitive market to ensure that pay structures are appropriately aligned.

4.2 Remuneration of Non-Executive Directors

Non-Executive Directors (“NEDs”) are paid remuneration by way of Sitting Fees and Commission. The remuneration / commission / compensation to the NEDs decided by the Board in accordance with this policy and subject to applicable provisions of the Act and of the SEBI (LODR) Regulations.

As approved by the shareholders at the shareholders meeting, commission is paid at a rate not exceeding 1% per annum of the profits of the Company computed in accordance with the Provisions of Section 198 of the Act. The Commission paid is restricted to a fixed sum within the above limit annually and on the basis of their tenor in office during the financial year.

The Payment of Commission to the NEDs is placed before the Board every year for its consideration and approval, subject to availability of profit as computed under Section 198 of the Act.

The sitting fee payable to the NEDs for attending the Board and committee meetings is fixed subject to the statutory ceiling. The sitting fees/commission is reviewed periodically taking into consideration the various factors such as performance of the Company, time spent by the directors for attending to the affairs and business of the Company and the extent of responsibilities cast on directors under general law

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

and other factors as may be relevant for the purpose. Depending on the time and efforts put in by the directors towards the affairs of the Company, the directors are also paid a differential remuneration.

Where the annual remuneration payable to a single Non-Executive Director exceeds 50% of the total annual remuneration payable to all Non-Executive Directors, the approval of the shareholders in the manner as specified under applicable laws/ regulations is obtained.

within the overall limits specified under the Act. The compensation paid to the Managing Director is within the scale approved by the Shareholders.

The fees or compensation payable to an Executive Director who is a Promoter or member of Promoter Group, shall be subject to the approval of shareholders in the manner as prescribed under the applicable regulations, if the annual remuneration payable to such Executive Director exceeds the threshold limits, and the approval so granted shall be valid till the expiry of the term of such Director.

4.3 Remuneration of Executive Director

The elements of the total compensation are approved by the Nomination and Remuneration Committee

Non- Executive Directors are not eligible to receive stock options under the employee stock option scheme/plan (“ESOP”) of the Company.

4.4 The sitting fees and Commission paid to the non-executive directors during the Year are given below –

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( ` Lakh)
S. No Name of the Directors Category Position Sitting fees Commission
1. Mr. V. Ravichandran NE,NI Chairman 6.50 10.00
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S.No 1.	Name oftheDirectors Mr.V.Ravichandran	Category NE,NI	Position Chairman	Sittingfees 6.50	(`Lakh) Commission 10.00
2.	Mr.V.Manickam	NE,I	Director	9.10	12.00
3.	Mr.AjayB Baliga	NE,I	Director	7.30	10.00
4.	Dr. (Ms) R. cā Godbolé	NE,I	Director	7.60	10.00
5.	Mr.Ramesh K B Menon	NE,NI	Director	5.30	10.00
6.	Mr. C.K.Ranganathan*	NE,I	Director	3.10	8.58
7.	Mr.M.M.Venkatachalam	NE,NI	Director	7.00	10.00
	Total			45.90	70.58**

Non Executive (“NE”), Non Independent (“NI”) and Independent (“I”)

Sitting fee for Board and Audit Committee meetings was paid at 50,000 and for other Committees at 30,000. * Ceased to be a Director w.e.f. February 7, 2021.

** Commission to be paid after approval of the financial statements at the ensuing AGM.

4.5 The Remuneration paid to the Executive Director during the Year are given below.

S. No Name of the Directors Category 1. Mr. S. Suresh E,NI	Position	Salary, Allowances &Perquisites (`)	No of Stock optionsgranted
	Managing Director	1,86,42,216	-

Executive (“E”) and Non Independent (“NI”)

4.6 Disclosure with respect to remuneration :

i. All elements of remuneration package such as salary, benefits, bonuses, stock options, pension, etc., of the Managing Director is given below:

(in `)

DESCRIPTION	2020-21	2020-21
Salary
Basic	70,17,540
House Rent Allowance	28,07,040
Other Benefts & Perks	25,81,576	1,24,06,156
Incentive		39,98,868
Retirement Benefts
Contribution to Provident Fund	8,42,105
Contribution to Superannuation Fund	10,52,631
Contribution to Gratuity	3,42,456	22,37,192
TOTAL		1,86,42,216

ii. Details of fixed component. and performance linked incentives:- As stated above:
iii. Performance criteria for performance linked incentives; - Criteria framed as per Company Rules read with policy and the performance against the same was evaluated by the Nomination and Remuneration Committee.
iv. Service Contract - 5 years
v. Notice Period – 3 Months
vi. Severance Fees - Nil

vii. Number of stock option granted during the year – Nil

viii. Whether the same has been issued at a discount as well as the period over which accrued and over which exercisable. - No

Annual Report 2020-21

5. GENERAL BODY MEETINGS

5.1 The date, time and venue of last three Annual General Meetings (AGMs) and Extraordinary General Meetings (“EGMs”) held were as follows.

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Year ended 31st March Day Date Time Location
2018 Wednesday August 8, 2018 3.30 p.m The Music Academy, Madras
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Year ended 31st March 2018	Day Wednesday	Date August 8, 2018	Time 3.30p.m	Location The Music Academy, Madras
2019	Monday	July 29, 2019	3.30 p.m	New No. 168 (Old No. 306), T.T.K. Road, Royapettah,Chennai – 600014
2020	Wednesday	August 5, 2020	3.30 p.m	Through Video Conferencing (VC) or Other Audio Visual Means(OAVM)

5.2 Details of Special Resolutions passed during the last three AGMs are given below:

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Date of AGM Particulars
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August 8, 2018	Issue of Non Convertible Debentures for an amount not exceeding`300 Crore during a period of oneyear.
July 29, 2019	Issue of Non Convertible Debentures for an amount aggregating to`300 Crore during a period of one year. Re-appointment of Mr.V.Manickam as an Independent Director w.e.f. July 30, 2019 for a term of three years. Ratifcation of Payment of remuneration to Mr.S.Suresh, Managing Director Payment of Commission to Non-Wholetime Directors of the Company.
August 5,2020	Amendment of the object clause of the Memorandum of Association

5.3 Details of resolutions passed through postal ballot during the financial year 2020-21 and details of the voting pattern:

The Company sought the approval of shareholders through postal ballot notice dated December 16, 2020 for obtaining the approval of the shareholders for increase in the limits for making investments / extending loans and giving guarantees or providing securities in connection with loans to persons / bodies corporate by way of special resolution. The aforesaid resolutions was duly passed and the results of postal ballot/e-voting were announced on January 29, 2021. Mr. R.Sridharan of M/s. R. Sridharan & Associates, Practicing Company Secretaries, was appointed as the Scrutinizer to scrutinize the postal ballot and remote e-voting process in a fair and transparent manner.

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Resolution No. of Votes No. of Votes % of Votes % of Votes
Cast in Favour Cast Against Cast in Favour Cast Against
on Votes Polled on Votes Polled
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For increase in the limits 82729156 8921200 90.27 9.73 for making investments / extending loans and giving guarantees or providing securities in connection with loans to Persons / Bodies Corporate

Procedure for Postal Ballot

The postal ballot is conducted in accordance with the provisions specified in Section 110 and other applicable provisions, if any, of the Act read with Rule 22 of the Companies (Management and Administration) Rules, 2014. The shareholders are provided the facility to vote through e-voting. As per the MCA Circulars, this Postal Ballot Notice is being sent only through electronic mode to those Members whose email addresses are registered with the Company or depository / depository participant. Shareholders holding equity shares as on the cut-off date cast their votes through e-voting during the voting period fixed for this purpose. After completion of scrutiny of votes, the scrutinizer submits his report to the Chairman and the results of voting by postal ballot are announced within 48 hours of conclusion of the voting period. The results are displayed on the website of the Company (www.eidparry.com), and communicated to the Stock Exchanges, Depositories, and Registrar and Share Transfer Agents. The resolutions, passed by the requisite majority, are deemed to had been passed on the last date specified for e-voting.

6. MEANS OF COMMUNICATION

The quarterly and yearly audited financial results of the Company were published in newspaper in Business Standard (English) and in Dinamani (Tamil) within 48 hours of conclusion of the Board Meetings at which respective financial results were approved and results are placed on the Company’s Website at www.eidparry.com/

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Corporate Overview Management Reports Financial Statements

Press releases are posted on the company’s website. Further, the shareholding pattern and other intimations to stock exchanges from time to time are also displayed on the website of the Company.

Details of investor / analysts / brokers meetings / concall transcripts, whenever held and official news releases are also posted on the Company’s Website. The web link is www.eidparry. com/investors-meetanalysts-call/

The Company has a designated e-mail address, viz., [email protected] exclusively for investor services.

7. GENERAL SHAREHOLDER INFORMATION

A separate section has been included in the Annual Report furnishing details as required under the SEBI (LODR) Regulations.

8. OTHER DISCLOSURES & AFFIRMATIONS

8.1 Related Party Transactions

All related party transactions that were entered during the financial year were on arm’s length basis and were in the ordinary course of business. There were no materially significant related party transaction considered to have potential conflict with the interests of the Company at large.

As required under Regulation 23 of the SEBI (LODR) Regulations, the Company has formulated a policy on materiality of Related Party Transactions and also on dealing with Related Party Transactions. The policy is available on the web link www.eidparry.com/ PoliciesCodes.

8.2 Details of non- compliance, penalties and strictures imposed

There were no penalties, strictures imposed on the company by stock exchange(s) or SEBI or any statutory authority, on any matter related to capital markets, during the last three years.

8.3 Whistle Blower Policy and Vigil Mechanism

The Company has established a whistle blower mechanism to provide an avenue for reporting concerns about unethical behavior, actual or suspected fraud or violation of the Company’s code of conduct or ethics policy for the directors / employees / customers by providing adequate safeguards against victimisation of directors / employees / customers, who avail this mechanism and also for appointment of an ombudsperson to deal with the complaints received.

The Company has laid down a Whistle Blower policy which contains the process to be followed for dealing with complaints and in exceptional cases, also provides for direct access to the Chairperson of the Audit Committee. The Company affirms that no person has been denied access to the Audit Committee The policy is available on the Company’s website at www.eidparry.com.

8.4 Compliance with mandatory requirements

The Company has complied with all mandatory requirements as laid down under the SEBI (LODR) Regulations.

8.5 Compliance with Accounting Standards

The Company has followed the Guidelines of Accounting Standards as laid down by the Institute of Chartered Accountants of India (ICAI) in preparation of its financial statements and notes to accounts of this Annual Report.

8.6 Disclosure from the Senior Management

Periodical disclosures from Senior Management relating to all material financial and commercial transactions, where they had or were deemed to have had personal interest, that might have had a potential conflict with the interest of the Company at large were placed before the Board.

8.7 Commodity price risk and commodity hedging activities

The Company enters into Derivative Contracts such as Forwards, Swaps, etc., to hedge its foreign currency fluctuation risks for underlying assets/liabilities and high probable transactions at appropriate times, as per policy.

8.8 During the year under review, the Company has not raised any funds from public issue, rights issue, preferential issue or through preferential allotment or qualified institutions placement as specified under Regulation 32 (7A) of the SEBI (LODR) Regulations.
8.9 A certificate has been received from R Sridharan & Associates, Practising Company Secretary, that none of the Director on the Board of the Company has been debarred or disqualified from being appointed or continuing as director of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such statutory authority.
8.10 Total Fees for all services paid by the listed entity and its subsidiaries on a consolidated basis to the Statutory Auditor and all entities in the network firm/network.

S. No	Name of the Company	Fees (Excluding out of pocket expenses) (`in Lakh)
1.	E.I.D.- Parry (India)Limited	53.50
2.	Parry Sugars Refnery India Private Limited	12.50
	Total Fees	66.00

SUBSIDIARY COMPANIES

For the purpose of this Regulation, Parry Sugars Refinery Private Limited is a material unlisted subsidiary of the as per Regulation 16 of SEBI (LODR) Regulations. The Audit Committee reviews the financial statements and in particular, the investments made by unlisted subsidiary companies. The minutes of the Board Meetings as well as statements of all significant transactions of the unlisted subsidiary companies are placed before the Board of the Company for their review. The Company has formulated a policy for determining material subsidiaries and the policy is available at the weblink. http:// www.eidparry. com/policies-codes/

Annual Report 2020-21

10. PREVENTION OF INSIDER TRADING

The Company has formulated a Code of practices and procedures for fair disclosure of unpublished price sensitive information in accordance with the provisions of SEBI (Prohibition of Insider Trading) Regulations, 2015 as amended from time to time and the same has been published on the Company’s website http://www. eidparry. com/ Policies-Codes. A Code of Conduct to regulate, monitor and report trading by insiders in securities of the Company has also been formulated.

11. COMPLIANCE WITH THE CODE OF CONDUCT

The Board has laid down a “Code of Conduct” (Code) for all the Board members and the Senior Management of the Company. Annual declaration regarding compliance with the Code is obtained from every person covered by the Code of Conduct. A declaration to this effect signed by the Managing Director form is part of this report. The Code is available on the Company’s website at www. eidparry.com.

12. COMPLIANCE WITH CORPORATE GOVERNANCE NORMS

The Company has complied with the Corporate Governance requirements as specified under Regulations 17 to 27 and Clauses (b) to (i) of sub-regulation (2) of Regulation 46 of the SEBI (LODR) Regulations.

the conditions of corporate governance as stipulated under the SEBI (LODR) Regulations. The said certificate is annexed to this report and will be forwarded to the Stock Exchanges and the Registrar of Companies, Tamil Nadu, Chennai, along with the Annual Report.

13. NON-MANDATORY REQUIREMENTS

As regards the non-mandatory requirements, the following have been adopted.

13.1 Shareholder Rights: The quarterly financial results are published in leading financial newspapers, uploaded on the Company’s website and any major developments are covered in the press releases issued by the Company and posted in the Company’s website. The Company has therefore not been sending the half yearly financial results to the shareholders.
13.2 There are no audit qualifications on the Company’s standalone financial statements.
13.3 The Company has separate persons for the post of Chairman and Managing Director.

On behalf of the Board

Chennai V. Ravichandran June 29, 2021 Chairman

M/s. R Sridharan & Associates, Company Secretaries have certified that the Company has complied with

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

CORPORATE GOVERNANCE CERTIFICATE

Pursuant to Regulation 34 (3) read with Schedule V Para-C Sub clause (10) (i) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Members E.I.D- PARRY (INDIA) LIMITED “Dare House” Parrys Corner Chennai – 600001

We have examined documents, books, papers, minutes, forms and returns filed and other relevant records maintained by E.I.D-PARRY (INDIA) LIMITED, (CIN: L24211TN197SPLC006989) having its Registered Office at Dare House, Parrys Corner, Chennai - 600 001, for the purpose of certifying compliance of the conditions of Corporate Governance under Regulations 17 to 27 and clauses (b) to (i) of Regulation 46(2) and para C, D and E of Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the financial year ended March 31, 2021. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of certification.

The compliance of the conditions of Corporate Governance is the responsibility of the management. Our examination was limited to the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and on the basis of our examination of the records produced, explanations and information furnished, we certify that the Company has complied regarding the conditions of Corporate Governance as stipulated under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended for the financial year ended 31st March, 2021.

This Certificate is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company.

For R Sridharan & Associates Company Secretaries

CS R Sridharan CP No. 3239 FCS No. 4775

Place : Chennai Date : June 29, 2021

UIN: S2003TN063400 UDIN: F004775C000542103

Annual Report 2020-21

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

Pursuant to Regulation 34 (3) read with Schedule V Para-C Sub clause (10) (i) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Members, E.I.D.-PARRY (INDIA) LIMITED

CIN: L24211TN1975PLC006989 “DARE HOUSE”, Parrys Corner, Chennai- 600001

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of E.I.D PARRY (INDIA) LIMITED (CIN: L24211TN1975PLC006989) having its Registered Office at “DARE HOUSE”, Parrys Corner, Chennai600001 (hereinafter referred to as “The Company”) produced before us by the Company for the purpose of issuing this certificate, in accordance with Regulation 34 (3) read with Schedule V Part-C Sub clause 10 (i) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015.

In our opinion and to the best of our knowledge and according to the verifications (including Director Identification Number (DIN) Status at the portal www.mca.gov.in) and based on such examination as well as information and explanations furnished to us, which to the best of our knowledge and belief were necessary for the purpose of issue of this certificate and based on such verification as considered necessary, we hereby certify that none of the Directors as stated below on the Board of the Company as on 31st March 2021 have been debarred or disqualified from being appointed or continuing as Directors of Companies by the Securities and Exchange Board of India /Ministry of Corporate Affairs or any such other statutory authority.

==> picture [507 x 16] intentionally omitted <==

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S. No. DIN Name of the Director Designation Date of Appointment
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1.	00110086	V Ravichandran	Non-Executive – Chairman	30/10/2009
2.	06999319	S Suresh	ManagingDirector	01/07/2016
3.	00179715	V Manickam	Non-Executive - Independent Director	30/01/2013
4.	07306268	R. cā Godbolé	Non-Executive - Independent Director	01/11/2015
5.	05275821	Ramesh K B Menon	Non-Executive – Non-Independent Director	08/11/2017
6.	00152619	M M Venkatachalam	Non-Executive – Non-Independent Director	07/02/2018
7.	00030743	AjayBhaskar Baliga	Non-Executive - Independent Director	09/05/2018

Ensuring the eligibility of, for the appointment/ continuity of, every Director on the Board is the responsibility of the management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For R.SRIDHARAN & ASSOCIATES COMPANY SECRETARIES

Place : Chennai Date : June 29, 2021

CS R.SRIDHARAN CP No. 3239 FCS No. 4775 UIN: S2003TN063400 UDIN: F004775C000542048

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIOR MANAGEMENT WITH THE COMPANY’S CODE OF CONDUCT

The Board of Directors

E.I.D.-Parry (India) Limited Dare House Parrys Corner Chennai - 600 001

This is to confirm that the Board has laid down a code of conduct for all Board members and Senior Management of the Company. The code of conduct has also been posted on the website of the Company.

It is further confirmed that all Directors and Senior Management personnel of the Company have affirmed compliance with the Code of Conduct of the Company for the year ended March 31, 2021 as required under Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Chennai June 29, 2021

S. Suresh Managing Director

Annual Report 2020-21

GENERAL SHAREHOLDER INFORMATION

i.	Annual General Meeting Day, Date and Time Venue	Thursday, September 16, 2021 at 3.30 p.m. The annual general meeting (AGM) will be held through video conference in compliance with general circular number 20/2020 read with 02/2021 and all other applicable guidelines and circulars issued by the Ministry of Corporate Affairs (MCA) and Securities and Exchange Board of India (SEBI).
ii.	Financial Year	April 1, 2020 to March 31, 2021
iii.	Date of Book closure	Friday, September 10, 2021 to Thursday, September 16, 2021 (both days inclusive)
iv.	Dividend Payment Date	Not Applicable
v.	Listing of Stock Exchanges	Equity Shares : National Stock Exchange of India Limited, Exchange Plaza, Plot No. C/1. G. Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051. BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001. The Non-Convertable Debentures (NCD) and Commercial Papers (CP) of the Companyare also listed on BSE Limited.
vi.	Stock Code
	Name of the Stock Exchange / Depository	Code / ISIN
	National Stock Exchange of India Limited (NSE)	EIDPARRY
	BSE Limited (BSE)	500125
	ISIN	INE126A01031
vii.	Debenture Trustee	IDBI Trusteeship Services Limited Asian Building, Ground Floor, 17 R Kamani Marg, Ballard Estate, Mumbai – 400 001.

viii. Market Price Data – Monthly High, Low and Trading Volume for Equity Shares

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Period Bombay Stock Exchange (BSE) National Stock Exchange (NSE) (BSE & NSE)
Total volume
High Low Volume High Low Volume
(No. of shares) (No. of shares) (No. of shares)
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Apr-20	168.00	132.50	4,14,436	169.00	132.10	48,94,499	53,08,935
May-20	206.35	138.35	7,89,628	206.40	139.00	1,15,49,195	1,23,38,823
Jun-20	295.55	197.85	16,52,372	295.80	198.00	2,37,78,284	2,54,30,656
Jul-20	313.80	257.60	10,08,441	313.80	257.35	1,66,50,273	1,76,58,714
Aug-20	315.00	272.00	7,37,902	315.00	272.00	1,25,54,748	1,32,92,650
Sep-20	325.40	271.40	5,44,740	325.00	272.40	1,21,62,528	1,27,07,268
Oct-20	292.50	259.60	4,43,995	292.70	260.05	50,61,790	55,05,785
Nov-20	351.30	268.55	10,16,204	351.55	269.25	89,94,556	1,00,10,760
Dec-20	365.75	310.00	6,86,222	366.00	311.45	1,05,72,001	1,12,58,223
Jan-21	371.25	330.05	7,74,391.00	371.70	330.00	68,42,064	76,16,455
Feb-21	356.00	312.00	3,67,824.00	356.25	312.00	53,42,635.00	57,10,459
Mar-21	366.55	316.05	6,86,827.00	366.45	316.00	60,77,136.00	67,63,963

96 E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

ix. Performance in comparison to broad based indices such as BSE Sensex, NSE Nifty, CRISIL Index, etc.

Share Price performance in comparison with BSE SENSEX

Share Price performance in comparison with NSE NIFTY

50000.00 60000.00	400.00 350.00	12000.00 13000.00 14000.00 15000.00			400.00 350.00
40000.00	300.00 250.00	9000.00 10000.00 11000.00			300.00 250.00
20000.00 30000.00	200.00 150.00 100.00	5000.00 6000.00 7000.00 8000.00			200.00 150.00
10000.00	50.00	3000.00 4000.00			100.00
01-Apr-20 0.00 01-May-20 01-June-20 01-Jul-20 01-Aug-20 01-Sep-20 01-Oct-20 01-Nov-20 01-Dec-20 01-Jan-21 01-Feb-21 01-Mar-21 Close Price Sensex	0.00	01-Apr-20 01-May-20 01-June-20 01-Jul-20 01-Aug-20 01-Sep-20 01-Oct-20 01-Nov-20 01-Dec-20 01-Jan-21 01-Feb-21 01-Mar-21 0.00 1000.00 2000.00			50.00 0.00
			Close Price	Nifty

x. Investor Contacts

(a) Registrar and Transfer Agents

KFin Technologies Private Limited,

Unit: E.I.D.-Parry (India) Ltd., Selenium Tower B, Plot number 31 & 32, Gachibowli, Hyderabad – 500 032.

Toll free : 1800-3454-001

E-Mail : [email protected]; [email protected] Contact Person: Ms. Sheetal Doba, Manager Website : www.kfintech.com

(b) Company

E.I.D.-Parry (India) Limited, Secretarial Department, 3rd Floor, Dare House, Parrys Corner, Chennai – 600 001. Tel : +91-044-25306789 Fax : +91-044-25341609 E-Mail : [email protected]; [email protected]

Contact Person : Mr. Biswa Mohan Rath, Company Secretary Website : www.eidparry.com

xi. Share Transfer System

Share Transfers in Physical Form

The Board has delegated the power to approve transfers to Stakeholders Relationship Committee.

Managing Director / Chairman are individually authorised to approve transfers up to 5,000 shares (Face value of ` 1 each) per transferor / transferee.

Certain senior executives along with a Director have been authorised to approve request for transfers up to 1,000 shares (Face value of ` 1 each) per transferor / transferee.

Certain senior executives have also been authorised to approve transfers up to 500 shares (Face value of ` 1/each) per transferor / transferee.

Details of Complaints received and redressed

Nature of Complaints Received during the year	Resolved during theyear NIL
Non receipt of Dividend, Issuance of Duplicate Share Certifcate and fresh Share Certifcate and Transmission of shares NIL

There were no complaints remaining pending at the beginning and end of the financial year 2020 – 21.

The application for share transfer and other request from shareholders holding shares in physical form are processed by KFin.

Annual Report 2020-21

xii. Distribution of shareholding as on March 31, 2021*

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No. of equity shares held No. of shareholders % No. of shares %
1 - 500 51363 88.40 3846689 2.17
501 - 1000 2578 4.44 2119873 1.20
1001 - 2000 1531 2.64 2428227 1.37
2001 - 3000 655 1.13 1711048 0.97
3001 - 4000 372 0.64 1346535 0.76
4001 - 5000 309 0.53 1448430 0.82
5001 - 10000 595 1.02 4389240 2.48
10001 - 20000 308 0.53 4311435 2.43
20001 - 30000 109 0.19 2616436 1.48
30001 - 40000 43 0.07 1518652 0.86
40001 - 50000 32 0.06 1423287 0.80
50001 - 60000 19 0.03 1051040 0.59
60001 - 70000 20 0.03 1310990 0.74
70001 - 80000 10 0.02 733523 0.41
80001 - 90000 7 0.01 595559 0.34
90001 and above 150 0.26 146251427 82.58
TOTAL 58101 100.00 177102391 100.00
Shareholding Mode [#] No. of shareholders # % No. of shares %
Physical 11,868 19.72 20,26,257 1.14
Demat/Electronic 48,323 80.28 17,50,76,134 98.86
Total 60,191 100.00 17,71,02,391 100.00
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Based on Folio / Client ID wise

Shareholding Pattern as on March 31, 2021*

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Sl. No. Category No. of shareholders No. of shares % to paid-up Capital
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A	Shareholding of Promoter and Promoter Group
(1)	Indian	53	7,91,97,652	44.72
(2)	Foreign	1	12,100	0.01
	Total Shareholding of Promoter and PromoterGroup	54	7,92,09,752	44.73
B	Public Shareholding
(1)	Institutions	147	1,99,60,186	11.27
(2)	Non-Institutions	57,899	7,78,62,053	43.96
	Total Public Shareholding	58,046	9,78,22,239	55.23
C	Shares held by Custodian and against which Depository Receipts have been issued
(1)	PromoterandPromoterGroup	-	-	-
(2)	Public	1	70,400	0.04
	TOTAL(A)+(B)+(C)	58,101	17,71,02,391	100.00

*Based on PAN wise

xiii. Dematerilisation of Shares and Liquidity

The Company’s shares are compulsorily traded in dematerialized form and are available for trading on both the depositories in India viz. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Equity shares of the Company representing 98.86% of the Company’s share capital are dematerialized as on March 31, 2021. The Company’s shares are regularly traded on National Stock Exchange of India Limited and the BSE Limited, in electronic form.

xiv. Outstanding GDR/ADR/Warrants or any Convertible instruments, conversion date and likely impact on equity

As on March 31, 2021, 70,400 (0.04%) GDR are outstanding. Each GDR represents one underlying equity share.

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

xv. Plant Locations

Sugar

Plant Locations Sugar
1 Integrated Sugar Complex consisting of Sugar, Co-generation of Power and Distillery 138, Keel Arungunam Road, Nellikuppam - 607 105. Cuddalore District Tamilnadu	2 Sugar and Co-generation of Power Pugalur - 639 113 Karur District Tamilnadu
3 Distillery Udaikulam Village, Koothandan Post, Sivagangai Taluk, Sivagangai District - 630 561 Tamilnadu	4 Integrated Sugar Complex consisting of Sugar, Co-generation of Power and Distillery Hullatti Village Haliyal Mandal - 581 329 Uttara Kannada Karnataka
5 Integrated Sugar Complex consisting of Sugar, Co-generation of Power and Distillery Sankili Village Regidi Amadalavalasa Mandal Srikakulam District - 532 440 AndhraPradesh	6 Integrated Sugar Complex consisting of Sugar, Cogeneration of Power and Distillery NH-13, Nagarlal Post, Nainegali – 587 207 Bagalkot Taluq & District Karnataka
7 Sugar and Co-generation Power (leased unit) Khanpet village, PO Toragall, Ramdurg Taluk, Belgaum District, Karnataka.	Nutraceuticals 8 Nutraceuticals Factory Kadiapatti, Nemathanpatti Road Panangudi (P.O), Thirumayam Taluk Oonaiyur - 622 505 Pudukottai District Tamilnadu
9 Nutraceuticals Factory Saveriyarpuram Area Oonaiyur (P.O), Thirumayam Taluk Oonaiyur - 622 505 Pudukottai District Tamilnadu	R & D Facility 10 Sugarcane R&D Centre 43, Annai Nagar Pugalur – 639 113 Karur District., Tamil Nadu
11 Sugarcane R&D Centre D.No.23, Morai Campus Nellikuppam – 607105 Cuddalore District Tamil Nadu	12 Research Farm Edayanvalli Melpattambakkam Post – 607104 Cuddalore Dt., Tamil Nadu
13 Nutraceuticals R&D Centre 655, T.H. Road Thiruvottiyur Chennai –600019

xvi. Address for correspondence E.I.D.-Parry (India) Limited, Secretarial Department, 3rd Floor, Dare House, Parrys Corner, Chennai - 600 001. Tel :+91-044-25306789, Fax :+91-044-25341609 E-Mail : [email protected];

OTHER INFORMATION FOR SHAREHOLDERS

DIVIDENDS

Pursuant to Section 124 read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (“IEPF Rules”), all unclaimed / unpaid dividend remaining unclaimed / unpaid for a period of seven years from the date they became due for payment, are required to be transferred to the Investor Education & Protection Fund (IEPF). Accordingly, dividends remaining unclaimed for a period of 7 years will be transferred by the Company to the IEPF. Shareholders who have not encashed their dividend warrants (for earlier periods) may approach our Registrar and Transfer Agent, M/s. KFin Technologies Private Limited, Hyderabad for electronic transfer of the proceeds in lieu of dividend warrants quoting the Folio Number / Client ID.

Annual Report 2020-21

The requirement for transfer of shares in line with Section 124(6) of the Companies Act, 2013, has not arisen during the year 2020-21.

Due dates on which the unclaimed dividends would be transferred to IEPF are given below:

Year	Dividend Type	Amount of Dividend Per share (`)	Due for transfer to the Investor Education and Protection Fund
2014 –15	Interim	2.00	25.04.2022
2014 – 15	Final	1.00	10.09.2022
2016 – 17	Interim	4.00	30.03.2024
2017 – 18	Final	3.00	14.09.2025
2018 – 19	Interim	2.00	10.03.2026
2018 – 19	Interim	1.00	28.04.2026

UNCLAIMED FRACTIONAL SHARES PROCEEDS

The Company had, in July 2017, distributed the sale proceeds of fractional shares arising out of issuance of shares, pursuant to the Scheme of Amalgamation of Parrys Sugar Industries Limited with the Company, to the eligible shareholders as per their respective fractional entitlements. Fractional Entitlements in respect of few shareholders are lying unclaimed with the Company, details thereof is uploaded on the website of the Company at http://www.eidparry. com. The said fractional proceeds remaining unclaimed for a period of 7 years will be transferred by the Company to the IEPF on July 7, 2024. The Company has transferred the unclaimed fractional proceeds issued during the year March 2013 to IEPF on March 30, 2020. Details of the unclaimed proceeds transferred to IEPF is uploaded on the website of the Company at http://www.eidparry.com.

NOMINATION FACILITY

Section 72 of the Act provides inter alia, the facility of nomination to shareholders. This facility is mainly useful for all shareholders holding shares in single name.

In case where the securities are held in joint names, the nomination will be effective only in the event of the death of all the holders.

Shareholders are advised to avail this facility.

BENEFITS OF DEMATERIALISATION

1.14% of the shares are still in physical form. Since the Company’s equity shares are under compulsory demat trading, shareholders who are holding shares in physical form are advised to convert their holdings into demat form.

GENERAL

Members are requested to quote their Folio No./DP & Client ID Nos, Email ids, telephone/Fax numbers for timely investor servicing by the Company/Registrar and Transfer Agent. Members holding shares in electronic form are requested to update with their depository participant their present address, e-mail ids and bank particulars.

UNCLAIMED SUSPENSE ACCOUNT

In accordance with Regulation 39(4) read with Schedule VI of SEBI (LODR) Regulations, the Company has dematted all physical shares which remained unclaimed by shareholders and credited to a demat suspense account viz., “Unclaimed Suspense Account” opened by the Company for this purpose. All corporate benefits that accrue on these shares such as bonus shares, split etc. shall also be credited to the Unclaimed Suspense Account and the voting rights on such shares shall remain frozen. Shareholders whose shares are lying in unclaimed suspense account are requested to write to the Registrar & Transfer Agent and provide the correct details to enable the Company to transfer the unclaimed share certificate directly to the Shareholders demat account.

The following disclosures are made in pursuance of Regulation 34(3) read with Clause F of Schedule V of the SEBI (LODR), Regulations.

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Sl. No. Category No. of shareholders No. of shares
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Sl. No.	Category	No. of shareholders	No. of shares
(i)	Aggregate number of shareholders and the outstanding shares lying in the unclaimed suspense account at the beginning of theyear	1,348*	69,127
	Less: Number of shares transferred to Investor Education Protection Fund	NIL	NIL
		1,348	69,127
(ii)	Number of shareholders who approached the issuer for transfer of shares from the unclaimed suspense account during theyear	1	258
(iii)	Number of shareholders to whom shares were transferred from the unclaimed suspense account duringtheyear	1	258
(iv)	Aggregate number of shareholders and the outstanding shares lyingin the unclaimed suspense account at the end of theyear	1,347	68,869

In respect of a transmission case, claim of one of the Legal heir of the deceased shareholder has been settled. Since balance shares still remains unclaimed, it continues to appear in both no. of shareholders and no. of shares.

100 E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

BUSINESS RESPONSIBILITY REPORT

About this report

Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015 [SEBI (LODR) Regulations] prescribe that the top 1000 companies based on market capitalization as per NSE / BSE as on March 31 of every financial year, are required to have a “Business Responsibility Report” (BRR) as part of their Annual Report. Following is the Fifth Business Responsibility Report of your Company as the Company is amongst the top 1000 listed entities as per the market capitalization at NSE/ BSE as on March 31, 2021. The report has been prepared as prescribed and in accordance with Regulation 34 of the SEBI (LODR) Regulations.

About E.I.D.- Parry (India) Limited

E.I.D.-Parry (India) Limited, a leading player in sugar with interests in promising areas of nutraceuticals, is one of the oldest companies in India and one of the top five sugar producers in South India. E.I.D. Parry has six sugar plants, one standalone distillery and two plants for nutraceutical products spread across India. Most of the sugar plants are integrated sugar complexes comprising of sugar, cogeneration and distillery. The integrated sugar units have been designed to optimize process efficiencies, increase sugarcane recovery and increase energy efficiency through reduced steam and power consumption. E.I.D. Parry continues to be one of the leading producers of international quality sugar through its innovative processes and farmer-centric practices.

SECTION A:

GENERAL INFORMATION ABOUT THE COMPANY

Corporate Identity Number (CIN) of the Company:
L24211TN1975PLC006989
Name of the Company:
E.I.D.-Parry (India) Limited
Registered address:
Dare House, Parrys Corner, Chennai-600-001
Website:
www.eidparry.com
E-mail id:
[email protected]
Financial Year reported:
April 1, 2020 – March 31, 2021
Sector(s) that the Company is engaged in (industrial activity code-wise):

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NIC Code Description
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10721	Sugar
1101	Distillery
35106	Cogeneration
03213	Nutraceuticals

List three key products/services that the Company manufactures / provides (as in balance sheet):
Sugar
Distillery
Nutraceuticals

9. Total number of locations where business activity is undertaken by the Company:

a. Number of International Locations - The Company operates through two overseas subsidiaries and sells its products across nearly 40 countries with manufacturing units in U.S.A and Chile. Major geographies, where the Company operates are:
i. USA
ii. Europe
b. Number of National Locations: The Company has its registered office in Chennai and 9 manufacturing units located across India.
Markets served by the Company – Local / State/ National / International :

The company is predominantly in sugar business and serves the Indian market. The Nutra business is predominantly export oriented and serve the international geography as stated above

SECTION B:

FINANCIAL DETAILS OF THE COMPANY

Sr. No.	Particulars	FY 20-21, Standalone `Lakhs
1	Paid upCapital (INR)	1,771
2	Total Turnover (INR)	2,024
3	Totalproft after taxes (INR)	86,486
4	Total Spending on Corporate Social Responsibility (CSR) as percentage ofproft after tax (%)*	0.14%

The Company spent an amount of `124.57 Lakh on CSR activities though the Company was not

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required to spend any amount based on average net profits for the immediately preceding three financial years as specified under Section 135 of the Companies Act, 2013.

List of activities in which expenditure in 4 above has been Incurred: -


a)	Health Care Details of the projects undertaken are given in Annual Report on CSR Activities enclosed as Annexure “C” to the Board’s Report Education Eradicating hunger and Malnutrition Making available safe drinking water.
b)
c)
d)

SECTION C:

OTHER DETAILS

Does the Company have any Subsidiary Company/ Companies?
Yes. Refer to Annexure A to the Board’s Report.
Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate the number of such Subsidiary Company(s)?

Yes, E.I.D.- Parry (India) Limited encourages its Subsidiary Companies to participate in its group wide Business Responsibility (BR) initiatives on various activities. All subsidiary Companies are aligned to the activities under the aegis of Murugappa Group.

Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%,30-60%,More than 60%]

We do not mandate that our suppliers and partners participate in the Company’s BR initiatives. However, they are encouraged to do so.

(b) Details of the BR head

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Sr. Particulars Details
No.
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1	DIN	06999319
2	Name	S.Suresh
3	Designation	ManagingDirector
4	Telephone number	044-25306789
5	e-mail id	sureshs@parry. murugappa.com

2. Principle-Wise BR Policy/Policies

As per Regulation 34 of the Listing Regulations read with SEBI Circular No CIR/CFD/CMD/10/2015 dated 4th November 2015, the nine areas of Business Responsibilities are as follows:

P1 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability.
P2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle.
P3 Businesses should promote the well-being of all employees.
P4 Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized.
P5 Businesses should respect and promote human rights.
P6 Businesses should respect, protect, and make efforts to restore the environment.
P7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.
P8 Businesses should support inclusive growth and equitable development.
P9 Businesses should engage with and provide value to their customers and consumers in a responsible manner.

SECTION D:

BR INFORMATION

Details of Director/Directors responsible for BR
(a) Details of the Director / Director responsible for implementation of the BR policy/policies
DIN Number : 06999319
Name : S. Suresh
Designation : Managing Director

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(a) Details of compliance (Reply in Y/N)-YES

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----- Start of picture text -----

S. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
No.
----- End of picture text -----

1.	Do you have a policy/ policy for...	Y	Y	Y	Y	Y	Y	Y	Y	Y
2.	Has the policy been formulated in consultation with the	Y	Y	Y	Y	Y	Y	Y	Y	Y
	relevant stakeholders?
3.	Does the policy conform to any national / international	Y	Y	Y	Y	Y	Y	Y	Y	Y
	standards? If yes,
4.	Has the policy been approved by the Board? Is yes, has	Y	Y	Y	Y	Y	Y	Y	Y	Y
	it been signed by MD/ owner/ CEO/ appropriate Board
	Director?
5.	Does the company have a specifed committee of the Board/	Y	Y	Y	Y	Y	Y	Y	Y	Y
	Director/ Offcial to oversee the implementation of the policy?
6.	Indicate the link for the policy to be viewed online?	https://www.eidparry.com/investors/policies/
		codes
7.	Has the policy been formally communicated to all relevant	Y	Y	Y	Y	Y	Y	Y	Y	Y
	internal and external stakeholders?
8.	Does the company have in-house structure to implement the	Y	Y	Y	Y	Y	Y	Y	Y	Y
	policy/
9.	Does the Company have a grievance redressal mechanism	Y	Y	Y	Y	Y	Y	Y	Y	Y
	related to the policy/ policies to address stakeholders’
	grievances related to the policy/ policies?
10.	Has the company carried out independent audit/ evaluation	Y	Y	Y	Y	Y	Y	Y	Y	Y
	of the working?

All the policies are signed by the Managing Director. All the policies in E.I.D Parry are based on its guiding principles and core values. These policies are mapped to each principle hereunder:

Principle Applicable Policies Principle1: • Values and Beliefs, called the ‘Five Lights’
Businesses should conduct and govern themselves with Ethics, Transparency and • Whistle Blower Policy, Code of Conduct
Accountability. Principle 2: • Safety, Health and Environmental Policy
Businesses should provide goods and services that are safe and contribute to sustainability • Food Safety & Quality Policy
throughout their life cycle. • TPM Policy • Sustainable Sugarcane Production and Processing Policy

Principle 3:

Businesses should promote the well-being of all employees.

Safety, Health and Environmental Policy
Prevention of Sexual Harassment Policy

Principle 4:

Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized

CSR Policy

Principle 5:

Businesses should respect and promote human rights.

Values and Beliefs, called the ‘Five Lights’
Whistle Blower Policy
Code of conduct

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Principle 6: • Safety, Health and Environment Policy Businesses should respect, protect, and make efforts to restore the environment. • Sustainable Sugarcane Production and Processing Policy. • TPM Policy Principle 7: Businesses, when engaged in influencing • Values and Beliefs, called the ‘Five Lights’ public and regulatory policy, should do so in a responsible manner Principle 8: • CSR Policy Businesses should support inclusive growth and equitable development Principle 9: • Values and Beliefs, called the ‘Five Lights’ Businesses should engage with and provide value to their customers and consumers in a • Food Safety & Quality Policy responsible manner. • TPM Policy • Sustainable Sugarcane Production and Processing Policy.

(b) If answer to the question at serial number (a) against any principle, is ‘No’, please explain why:

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S. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
No.
1. The Company has not understood the Principles
2. The Company is not at a stage where it finds itself in a position
to formulate and implement the policies on specified
principles
3. The Company does not have financial or manpower Not Applicable
resources available for the task
4. It is planned to be done within next 6 months
5. It is planned to be done within the next 1 year
6. Any other reason (Please specify)
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3. Governance related to BR

(a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, more than 1 year

The BR performance revolves around a number of policies which is assessed by the BR Head monthly, quarterly and annually based upon its importance and impact on the Company’s operations and activities.

(b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published?

This is the Fifth Business Responsibility Report of the Company for FY 2020-21, which forms part of the Company’s Annual Report for FY 2020-21. The same can be accessed at http:// www.eidparry.com/investors/ Financials.

SECTION E:

PRINCIPLE-WISE PERFORMANCE

PRINCIPLE 1: BUSINESSES SHOULD CONDUCT AND GOVERN THEMSELVES WITH ETHICS, TRANSPARENCY AND ACCOUNTABILITY

The Company lays strong emphasis on ethics and the establishment of a good governance culture. The Company believes that since organizations employ societal and environmental resources, governance processes must ensure that they are utilized efficiently to meet all stakeholders’ aspirations and expectations. The Company believes in high standards of governance and adheres to good corporate practices and is constantly striving for improvement and adoption of best practices. Adherence to business ethics, transparency in dealings with all stakeholders, adequate and timely disclosure of information and commitment to corporate social responsibility are the basic elements of

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the governance policy of the company. The Company has always given its best efforts to uphold and nurture these core values across all operational aspects. These values and the commitment to ethical business practices are reflected in the spirit of the Murugappa Group which is inspired by a set of enduring values and beliefs called the ‘Five Lights’ – a guide to everyday excellence. It clearly defines a way of life and is demonstrated by these strong values we live by: Integrity, Passion, Quality, Respect and Responsibility. These five Core Principles of the Murugappa Group of which the Company is a part, inspire the Company to set standards that not only meet the requirements of applicable legislations but go beyond in many areas of its functioning.

Does the policy relating to ethics, bribery and corruption cover only the company? Does it extend to the Group/ Joint Ventures/Suppliers/Contractors/ NGOs / Others?

The Company has a Whistle blower Policy that aims to deter and detect actual or suspected misconduct. It has been established to ensure that genuine concerns of misconduct/ unlawful conduct, which an individual believes may be taking place within the organization, are raised at an early stage in a responsible and confidential manner. This mechanism also provides for adequate safeguards against victimization of employees who avail the mechanism. Any employee can report such an incident without fear to the ombudsman.

As part of the Murugappa Group, the Company is guided by its five core principles governing the group to remain consistently vigilant and ensure ethical conduct in its operations. All internal and external stakeholders of the Company are expected to work within the framework of these principles. The Company ensures selection of vendors and contractors, who maintain and follow ethical standards. The Company endeavours to impart periodical training on ethics to its employees and relevant stakeholders are also made aware of the same from time to time.

How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so.

During the year 2020-21, one Complaint was received, which has been resolved satisfactorily.

PRINCIPLE 2: BUSINESSES SHOULD PROVIDE GOODS AND SERVICES THAT ARE SAFE AND CONTRIBUTE TO SUSTAINABILITY THROUGHOUT THEIR LIFE CYCLE

Sustainability is a part of the Company’s DNA. The Company has two different business lines i.e. Sugar and Nutraceuticals, and they are all governed by the same principle of sustainability, enshrined in the tenets of conserving, preserving, enhancing and creating each business in sync with Nature. Towards sustainable agriculture, Bonsucro certified farmer’s fields bears testimony to demonstrate sustainable sugarcane production. By adopting this system, farmers could optimize external agri-inputs, substantially reduce irrigation water, and record better yield and productivity.

Bonsucro standard helps farmers and mills to measure their productivity and key environmental and social impacts. In its journey towards Bonsucro certification, a business can increase efficiency, lower energy use and reduce waste while improving on the bottom line. The Company has installed autonomous irrigation systems on an experimental basis in farmers’ holdings and in its research farms, promoting increased crop health and productivity while lowering water and fertilizer use, thus reducing soil contamination.

The Company is the world leader in microalgae technology comprising organic spirulina, organic Chlorella and Haematococcus Pluvialis (Astaxanthin). Nutraceuticals are food or parts of food that provide medical or health benefits, including the prevention and/or treatment of a disease. Nutraceuticals have an advantage over medicine because they avoid side effects and are natural dietary supplements. With its facility for organic microalgae cultivation and processing located at Oonaiyur and Saveriyarpuram in Tamilnadu, the Nutraceuticals division has received the U.S. Food and Drug Administration (US-FDA) approval. In addition, the Company undertakes multi-centre field/ clinical trials to ensure that its products do not have an untoward impact on users. With a growing shift towards natural and organic products, the Company has positioned itself firmly in the field of human health and wellness. For over three decades, the Company has been cultivating micro allege that are 100% safe, organic and devoid of any genetically modified ingredients.

List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.

The Company manufactures sugar from sugarcane, ethanol from molasses and power from bagasse. The Company understands its obligations on social and environmental concerns, risks and opportunities, and most of the products manufactured or dealt with by the Company are environment friendly. Accordingly, the Company has devised the manufacturing process of its products (Sugar, Industrial alcohol and Bagassebased power) to take care of its obligations. The Company has deployed best-in-class technology and process to manufacture its product and taken various steps to conserve energy, details of which are given in the Directors’ report. The products of the company are manufactured with strict quality standards and controls as per specifications of its customers to ensure that products supplied conform with customer’s specifications, safety and regulatory obligations. The Company strives to manufacture and sell sugar in various forms, which are healthy, natural and have added nutritional benefits.

Sugar- The Company adheres to sustainable sugarcane production and processing policy framework in line with the BONSUCRO standards with particular reference to the social, economic and environmental aspects by actively managing biodiversity and ecosystem services. To foster sustainability in business, the Company has made arrangements for precision farm management,

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thereby significantly enhancing the water and input use efficiency. Sugarcane contains 30% of solids and 70% of water. The water generated from sugarcane is reused in sugar plants, which helps in conserving groundwater. Several sustainability collaborative initiatives with leading institutes, NGO’s, supply chain partners as a part of CSR initiatives are in place to optimize the use of water in the Company’s command area of operation besides significant groundwater recharge initiatives. The Company has pioneered in initiating R&D on a novel ICT based system of “Autonomous Irrigation in sugarcane “ for the first time in the country. The system will transform the way irrigation water is applied. The system ensures precise quantities of water and with intervals solely decided by the crop based on its requirement and without any farmer intervention in irrigation. This technology will pave the way for water savings of up to 35%, especially in sugarcane, which is considered a water-intensive crop across the country.

The Company has eliminated the use of chemical pesticides by advocating an integrated pest and diseases management system combining clean seed concept through tissue culture technology for disease elimination and bio-control agents for pest management. Press mud, a by-product of sugarcane, is used as organic manure in sugarcane fields contains essential nutrients and organic carbon to improve and sustain the soil quality.

Power- Bagasse, a by-product of sugarcane, is used as biofuel to generate power and exported to the grid as a green power. The ash generated is used as a filler during manure production. Bagasse is a CO2 neutral renewable energy source, and it qualifies for clean development mechanism certification. Bagasse-based power generation facilities is an excellent alternative to fossil fuels and reduces greenhouse gas emission to safeguard the environment.

Distillery Products- Molasses, a by-product of sugarcane, is used to manufacture ethanol and is being blended with gasoline by the oil marketing companies for use in automobiles. This helps in the reduction of greenhouse gases as against fossil fuels. In manufacturing Ethanol, CO2 is generated, which is being bottled and used for industrial & potable purpose. The effluent generated from the molasses-based process, is rich in NPK, which is being extracted through advanced technology and reused as fertilizer, thus helping to reduce the use of chemical fertilizer in fields. The Company uses effective systems and equipment to minimise effluents and has installed incineration boilers along with other aux systems to ensure zero liquid discharge (ZLD) in its distilleries protecting the environment.

Nutraceuticals - Microalgae products, Spirulina and Chlorella, are being grown in the ponds, wherein water is the primary source for the cultivation of the products. Water being precious, the Company has taken up various measures like Installation of Lagoon water treatment system, rainwater collection etc., during the

year to make sure that water drawl is kept at a minimum. The Company is embarking upon the journey towards no groundwater drawl in the future and harnessing solar energy to its optimum potential to meet the part of the process energy needs.

For each such product, provide the following details in respect of resource use (Energy, water, raw material etc.) per unit of product (optional):

Sugar – For the crushing of sugarcane, the resources required are water, steam and power. As sugarcane contains 70% of water, most factories draw minimum groundwater for sugar production. The Company is one of the few to work towards achieving ZLD for the sugar operations. The Company has commissioned a condensate polishing unit at the Sankili factory, which has enabled water recycling. This water recycling facility is also proposed to be replicated across other units. The factories have installed advanced energy conservation systems like vapour conditioners, vacuum system and VFD, which conserve energy. The average Industry norm on steam required for the sugar process is 45.0% / ton of cane, whereas the Company’s factories operate between 32 to 39% / ton of cane. Various steam consumption initiatives like replacing tubular heat exchangers with Plate-type heat exchangers have been carried out. The steam to fuel industry norm is 2.0 to 2.2 whereas all factories operate between 2.4 to 2.7.

Power –The Industry norm on power required is 38 kW/ ton of cane, whereas all factories operate between 24 to 30 kW/ton of cane.

Distillery Products – The best fermentation and distillation efficiencies are achieved with overall efficiency at 89% to 90% as against the norm of 86%. In case of alcohol, water required is 25 ltr/ltr of alcohol whereas all factories of the Company operate between 10 -13 ltr/ltr.

The Company’s carbon footprints of sugar and ethanol are very negligible. The carbon footprint of sugar is expected to be in the range of 200 to 500 kg Coequivalent per tonne of sugar. Apart from liquid CO2 production, the Company has also started producing Dry ice at its Nellikuppam factory to meet the market demands/requirements.

The Company has undertaken various initiatives and progressively invested for efficient and optimal use of resources. Through continuous improvement and innovation in product formulations, the Company tries to ensure lesser consumption of water and energy resources by using efficient equipments and constantly upgrading them. The energy Consumption per unit varies as per the product mix and the details of conservation of energy are given as an Annexure to the Board’s report.

Does the company have procedures in place for sustainable sourcing (including transportation)? If yes, what percentage of your inputs was sourced

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sustainably? Also, provide details thereof, in about 50 words or so.

The Company deploys procurement practices and procedures for sustainable sourcing based on the requirements of its business. The sugarcane required for the manufacture of sugar is sourced from the farmers from the local command area. All the Company plants are situated close to cane growing area and since the inputs are procured from sources close to the units, it minimizes the transportation costs. Small and medium farmers also supply cane through bullock driven carts which significantly reduces the environmental impact due to the transportation of raw materials. To avoid staling of cane and the deterioration in its quality, the Company employs an extensive and efficient arrangement and logistics services to transport cane in a timely and cost-effective manner. The company has adopted BONSUCRO certification to service the requirements of sustainable sourcing, which has been the need of certain institutional customers. Incidentally, the Company was the first one in Asia to obtain BONSUCRO Certification for its unit, producing sugar from cane way back in 201... The Company has taken several initiatives to ensure that the farmer base covered under sustainability program is increased as per the needs of the customers.

Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work? If yes, what steps have been taken to improve their capacity and capability of local and small vendors?

The Company is predominantly engaged in manufacturing sugar and sugar cane, which is the primary raw material for its operations. The Company procures sugar cane from farmers located within its local command area and whose livelihood is directly dependent upon the Company. The Company has taken several initiatives, including incentivizing Cane development and improving the yield by adopting sustainable cultivation practices. Several farmers are currently certified as adopting sustainable practices by conforming to the latest BONSUCRO smallholder farmer standards. The Company also supports the farmers with subsidies for adopting sustainable practices like intercropping, trash mulching, single bud planting and biocontrol technology under the National Agricultural Development Program (NADP). The farmers are continually engaged with the Company in several initiatives, like clean seed development programs, integrated bio-based crop protection programs, drip irrigation etc., and also in programs sponsored by the Government, which has a direct corelationship in improving their economic well-being. The Company also promotes many rural entrepreneurs amongst its farmers for mechanized cultivation, nursery seeding production and production of biocontrol agents. This has brought about a significant economic transformation of the predominantly agrarian economy.

Women farmer empowerment has brought women into the forefront of agriculture, thus encompassing all genders in business chain management. The Company supports the communities around the place of work by seeking contractual arrangements for handling and transportation of its products and in-plant services. During COVID lockdowns, the Company has taken several social responsibility measures to help the farming community. The covid-19 safety procedures were implemented strictly and infrastructures created to take care of harvesting labours thereby supporting the farming community.

Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so.

The production of sugar from sugarcane is indeed an eco-friendly virtuous cycle. All joint and by-products generated during the process of sugar manufacture are productively utilized to produce environmentfriendly products of commercial value. The Company has laid down comprehensive guidelines on waste management for all its units, which cover hazardous and non-hazardous waste and monitoring of performance of each unit, is carried out regularly. The Company strives to make the best use of the wastes and by-products generated during the process of manufacture of sugar. It is working upon several value-added projects to create wealth from waste. The Company follows a 4R (Reduce, Reuse, Reprocess and Recycle) principle to manage waste sustainably.

Bagasse: Bagasse is usually used as a biofuel in furnaces to produce steam, which in turn is used to generate power. The Company is also using bagasse to manufacture bagasse pellets; a fuel source. Bagasse is also used as a raw material for producing paper and as feedstock for cattle.

Molasses: Molasses is mainly used for the manufacture of alcohol, yeast and cattle feed. Alcohol, in turn is used to produce ethanol, rectified spirit, potable liquor and downstream value-added chemicals such as acetone, acetic acid, butanol acetic anhydride, etc. The Company’s absolute alcohol is being utilized as green fuel, i.e., blending with the Petrol. Besides, it is also being used and plays a vital role in livestock feeding due to the nutrient, appetizing and physical properties of its sugar content. The distillery yeast sludge is sold for its use as a value-added feed additive.

Press Mud: Press mud, is the residual output after the filtration of juice, which is mixed with distillery spent wash to produce high-quality bio-manure, which is ecofriendly as well as cost-effective than chemical fertilizers.

Boiler Ash: The boiler ash generated from Incineration Plants attached to the distillery is rich in Potash and thereby serves as a vital soil nutrient. The Company

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has installed plant and process and has a patented technology for converting this rich potash resource into a form which is used as fertilizer called “K Ash”. The boiler ash is also used for brick manufacture.

Nutraceuticals: Sludge which is generated during pond cleaning is appropriately stored transported and used as manure in agricultural activities. This Pond sludge is also being sent to agriculture farming like Vetiver and Neem to test the growth feasibility. The Company has also developed from ETP sludge, a product called “Salt Lick” for the animal feed by engaging an external research Institute IAN-Kattupakkam, ensuring the generation of revenue from waste.

To create wealth from waste, effective microbial agents are applied in the harvested fields to decompose the sugarcane residues. Every acre of sugarcane crop produces around four MT of trashes. Application of microbial agents fasten the process of decomposition of trashes in the fields. Several farmers are benefited by applying this microbial inoculum to augment the organic content of the soil.

The Company is one of the few sugar factories to work towards achieving ZLD for its sugar operations. The Company has commissioned a condensate polishing unit at its Sankili factory, enabling recycling of wastewater. To reduce the effluent generation and, in turn, increase alcohol production, a fed-Batch fermentation system is commissioned at Sankili. The Company has adopted management practices detailed under international standards such as ISO 9001, ISO 14001, OHSAS. Some of the Company’s manufacturing units are already certified and are working towards improvement in energy efficiency on all spheres of operations.

PRINCIPLE 3: BUSINESSES SHOULD PROMOTE THE WELLBEING OF ALL EMPLOYEES

The Company ensures a work environment that promotes the well-being of all its employees. Focusing on health, safety and preventing discrimination are part of the Company’s guiding principles on employees’ well-being. The Company provides equal employment opportunities to all, irrespective of their caste, creed, gender, race, religion, disability, etc. The Company respects employees’ right to freedom of association, participation, collective bargaining and provides access to appropriate grievance redressal mechanisms. The Company is committed to providing a work environment that ensures that every woman employee is treated with dignity, respect and equality. The Company has instituted processes and mechanisms to ensure that issues relating to sexual harassment are effectively addressed. In terms of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, Internal Complaints Committees have been constituted in all units. These Committees are intended to facilitate open and structured discussions on sexual harassment complaints and to ensure resolution of such complaints in a fair and just manner. The Company has strengthened its performance-driven orientation through

robust competence mapping, gap identification, training and development. The Company contributes to the medical insurance of its employees and also organizes health checkups for employees.

The Company also enhances employee engagement through various initiatives on an ongoing basis. The Company is deeply committed to the safety of its employees at the workplace and regularly organizes mock fire drills and fire safety training classes at all its locations.

Please indicate the Total number of employees.

The total number of permanent Employees is 2022 as on March 31, 2021.

Please indicate the Total number of employees hired on temporary/contractual/casual basis.

The Total number of employees hired on temporary/ contractual/ casual basis is 2246 as on March 31, 2021

3. Please indicate the Number of permanent women employees

The total number of Women Employees is 36 as on March 31, 2021.

Please indicate the Number of permanent employees with disabilities

The number of permanent employees with disabilities is 5.

Do you have an employee association that is recognized by management?

Yes. We have employees’ associations for NonManagement Employees which are recognised by the Management.

6. What percentage of your permanent employees is members of this recognized employee association?:

Percentage of Permanent employees in recognised employees association is 88%.

Please indicate the Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last financial year and pending, as on the end of the financial year.

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----- Start of picture text -----

No. Category No of No of
complaints complaints
filed pending
during the as on end
financial of the
year financial
year
1 Child labour/ Nil Nil
forced labour/
involuntary labour
2 Sexual Nil Nil
harassment
3 Discriminatory Nil Nil
employment
----- End of picture text -----

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What percentage of your under mentioned employees were given safety & skill up-gradation training in the previous year?
Permanent Employees: 2022 Employees – 85%
Permanent Women Employees – 36 Women Employees – 86%
Casual/Temporary/Contractual Employees – 2246 – 100%
Employees with Disabilities – 5 – 100%

PRINCIPLE 4: BUSINESSES SHOULD RESPECT THE INTERESTS OF, AND BE RESPONSIVE TOWARDS ALL STAKEHOLDERS, ESPECIALLY THOSE WHO ARE DISADVANTAGED,VULNERABLE AND MARGINALIZED.

The Company is responsive to the requirements of all its stakeholders, and this is enshrined in our Corporate Values & Beliefs of Integrity, Passion, Quality, Respect and Responsibility. These values require that the Company acts as a responsible corporate citizen and change lives for the better, and this is to be done in a manner that reflects humility. These values require us to provide everyone with equal opportunities to progress and grow. The Company considers its employees, business associates (network of farmers, suppliers, stockists, and dealers), customers, shareholders/ investors and communities surrounding its operations and regulatory authorities as its key stakeholders. The Company continues its engagement with them through various mechanisms such as consultations with local communities, small farmer training, women empowerment in agriculture, supplier/vendor meets, customer/employee satisfaction surveys, investor forums, etc. The Company’s website, www. eidparry. com, contains comprehensive information for the stakeholders about the Company. The Company also has designated an exclusive email- id for investor services – [email protected]. The Company also promptly intimates the Stock Exchanges about all pricesensitive information or other matters that are material and of relevance to the Company’s Stakeholders.

Has the company mapped its internal and external stakeholders?

Yes. The Company has mapped its internal and external stakeholders. It uses both formal and informal mechanisms to engage with various stakeholders to understand their concerns and expectations.

Out of the above, has the company identified the disadvantaged, vulnerable & marginalized stakeholders.

The Company identifies underprivileged communities around its business locations as disadvantaged, vulnerable and marginalised stakeholders and continuously engages with all such stakeholders identifying their needs and priorities so as to serve these needs accordingly.

Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized stakeholders. If so, provide details thereof, in about 50 words or so.

The Company has always engaged itself in special initiatives with the disadvantaged, vulnerable and marginalized stakeholders. Special targeted small farmer development collaborative projects with leading institutions are underway to entail inclusive growth and development of marginal and women farmers. The Company has a dedicated state of the art and integrated R&D function with facilities recognized by the Department of Scientific & Industrial Research (DSIR), Ministry of Science & Technology, Govt. of India. The R&D facilities promote soil test based nutrient management, production of low-cost, eco-friendly bio-products and plant tissue culture facility for production of quality seed for farmers. Many rural entrepreneurs are nurtured to inclusively enable technology transfer among marginalized farming communities. Farmer entrepreneurs have been developed to produce direct transplantable sugarcane seedlings, bioagents for sugarcane pest control and also to render mechanization services to nurture rural business, livelihoods and economic development. Small, marginal and women farmers are trained at their doorstep with a state of the art mobile van, a “Mobile Village Theatre “ for inclusive reach of technologies and information and this a first of its kind concept in the sugar industry.

PRINCIPLE 5: BUSINESSES SHOULD RESPECT AND PROMOTE HUMAN RIGHTS

The Company respects the rights and dignity of all individuals and upholds the principles of human rights. The Company’s commitment to human rights and fair treatment is set out in its code of conduct and the Five Principles governing the Company. The policy provides conduct of operations with honesty, integrity and openness with respect for human rights and interests of employees. The Company believes that a sustainable organisation rests on a foundation of ethics and respect for human rights.

Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/Suppliers/ Contractors/NGOs/Others?

The Company’s Policy on Human Rights covers not only the Company but extends to its subsidiaries. The Company encourages its suppliers, contractors and others to follow the principles laid down in the five principles of its values and beliefs. Respecting human rights is fundamental to the Company’s policies and business dealings. The Company is equally focussed on building awareness around the promotion of human rights with every associate and supply chain partners. All employees and contractors are required to respect the human rights of fellow workers and the communities where we operate. The Company does not employ child

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labour and does not permit any forced or compulsory labour, conducts proper checks and audits to ensure that our contractors follow the same. The Company’s business relationship with its Vendors/ contractors encourages its vendors to comply with the relevant laws safeguarding labour rights and human rights.

How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the management?

The Company has not received any Complaints pertaining to violation of Human rights during the financial year 2020-21.

PRINCIPLE 6: BUSINESS SHOULD RESPECT, PROTECT, AND MAKE EFFORTS TO RESTORE THE ENVIRONMENT

The Company places the highest priority in ensuring that best practices and procedures are followed relating to environmental protection. Soil moisture-based irrigation is being taken up for large-scale applications, and a novel automated soil moisture meter has been developed for the purpose. Soil mapping based fertilizer prescription through integration to the cane management system has been implemented at all factories to enable need-based and precision nutrient recommendation as health cards. Both the initiatives have resulted in significant improvements in water and fertilizer use efficiency. The by-products after the process are efficiently recycled as press mud or enriched compost to implement the concept of waste to wealth creation. These value-added by-products ensure soil health through an increase in soil organic matter. Further, the Company does not use groundwater for process in any of the sugar units. Sugarcane contains 70% of water which is extracted and recycled in the process as well as used back for irrigation in fields. For improving the value realization of bagasse, the Company has developed green grow media from bagasse by a mechanical process by sustaining EC and PH, suitable to grow all kinds of plants and to conserve soil and water and to improve the fertility of the soil and productivity. Bagasse Pellet machine has been commissioned at some of the units for producing Bagasse Pellets, which can be used in Incineration boilers in place of imported coal to the extent of 20% and also supplied to prospective buyers. Bagasse is also used as fuel in boilers which does not emit any obnoxious gases like So2. Bagasse is a CO2 neutral fuel and is a source of renewable energy. All the Company’s factories have installed online effluent and air mission monitoring systems, which are connected to the websites of CPCB/ SPCB for online monitoring.

Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/ Suppliers/ Contractors/NGOs/others?

Sustainability is built into Company’s business processes. As on date, the Company is encouraging all its external stakeholders to strictly adhere to safety and restoration of the environment.

Does the company have strategies/ initiatives to address global environmental issues such as climate change, global warming, etc? Y/N. If yes, please give hyperlink for webpage etc.

Global environment issues such as climate change, global warming, GHG emissions pose challenges to all. The Company is totally committed to reducing their impact. All factories of the Company have a green belt to the extent of 40% of plant area. The Company has promoted through training and demonstrations large scale adoption of trash mulching and shredding with machines for preventing air pollution arising out of trash burning and has one of the highest areas in the country under sugarcane where sugarcane trash is not burnt. Carbon and water footprinting exercise has been carried out with National and International Institutions. At the sugar factories, bagasse is the predominant fuel used for the generation of power, which is an environmentally friendly renewable energy source. At the Distillery, Spent Wash (effluent generated) is mixed with bagasse and used as fuel in boilers to generate clean energy with minimal carbon footprint by incineration process.

3. Does the company identify and assess potential environmental risks? Y/N

Yes, the Company has a mechanism to identify and assess potential environmental risks in its plants, projects and operations. Environmental risk identification and mitigation is ingrained in the Company’s risk management system.

4. Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if yes, whether any environmental compliance report is filed?

The Company uses bagasse as the primary fuel to generate both the plants’ thermal and electrical energy requirements. Bagasse is a CO2 neutral fuel, qualifying for Clean Development Mechanism. The spent wash used in Bio-Digester produces bio-gas (60% Methane), which in turn is used in distillery boiler for steam production at the Company’s Nellikuppam Plant.

All major locations are certified for requirements under ISO 14001 (Environmental Management System) and OHSAS 18001(Occupational Health and Safety System). Layered audits are carried out to check the level of compliance. The deviation management system ensures that the corrective actions are close looped and issues are addressed within a reasonable time frame.

Has the company undertaken any other initiatives on – clean technology, energy efficiency, renewable energy, etc. Y/N. If yes, please give hyperlink for web page etc.

The Company generates green power from renewable energy sources and manufactures green fuel (Ethanol) to blend with petrol. The Company has adopted technology to ensure zero water drawl from ground/

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river/canals for the operation of the sugar factory. The distilleries of the Company are ZLD compliant and the solids recovered from the effluent are recycled as manure. The Company has undertaken many measures for energy efficiency as follows:

The Company has installed and commissioned Plate type heat exchangers in place of Tubular heat exchangers for juice heating to reduce steam consumption.
The Company has replaced tubular heaters with direct contact heaters and shell and tube heaters with Plate heaters for better heat recovery.
Energy audits and reviews are conducted to optimize the usage of thermal and electrical energy.

The Company’s factories have installed advanced energy conservation systems like vapour conditioners, vacuum system and Variable frequency driver (VFD), which conserve energy. The industry norm on steam required for the sugar process is 45.0% per ton of cane, whereas all factories operate between 32 to 39% per ton of cane. The industry norm on power required is 37 kW per ton of cane, whereas all factories operate between 24 to 30kW per ton of cane. The steam fuel ratio industry norm is 2.0 to 2.2, whereas our units operate between 2.4 to 2.7. In the area of Renewable energy, the biogas generation from effluent reduces the fossil fuel use.

The Company has installed an incinerator boiler in its distilleries for the generation of steam and power. In the incinerator, the concentrated effluent (which is called SLOP) is used as fuel which source is also the biomass for the generation of power.

Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial year being reported?

Yes, the emissions / waste generated by the Company are within the permissible limits given by CPCB/ SPCB. Besides the Company’s manufacturing units are connected online with the CPCB, which monitors on a regular basis the norms laid down under the applicable environment protection laws

Number of show cause/ legal notices received from CPCB/ SPCB which are pending (i.e., not resolved to satisfaction) as on end of Financial Year.

There were no pending or unresolved show cause/legal notices from CPCB/SPCB as at the end of 2020-21

PRINCIPLE 7: BUSINESSES, WHEN ENGAGED IN INFLUENCING PUBLIC AND REGULATORY POLICY, SHOULD DO SO IN A RESPONSIBLE MANNER

The Company believes that being in an industry, which is one the most regulated sectors, significant improvement can be achieved if the Company works together with the Government, legislators, trade bodies and regulators to

create positive policies affecting the industry, especially cane pricing and sustainable cultivation affecting millions of farmers. The Company has always been at the forefront and strived to create a positive impact in the business eco-system and communities by practising proactive advocacy not for securing certain benefits for the industry but also advocating certain best practices for the benefit of the community at large who are affected by its business. In addition, the Company engages with several industry bodies and associations to influence public and regulatory policy responsibly.

Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business deals with:

The Company is a member of various trade and chamber associations. The Indian Sugar Mills Association (ISMA) and South Indian Sugar Mills Association (SISMA) are the prime bodies that represent the interests of the private sugar mills and is the interface between the industry and Government on policy matters relating to the sugar industry. The Company actively participates in the functioning of ISMA and SISMA in the matter of advancing the cause of the Industry and policy matter concerning the industry as well as vital issues concerning the industry.

Besides, the Company is also a member of CII (Confederation of Indian Industry) and associated with FICCI (Federation of Indian Chamber of Commerce and Industry) and ASSOCHAM (Associated Chambers of Commerce and Industry of India)

Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes, specify the broad areas (drop box: Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy security, Water, Food Security, Sustainable Business Principles, Others)

The Company through ISMA, SISMA and various other industry associations, participates in advocating matters for advancement of the industry’s interest and public good. It supports various initiatives of the Government which include farmers welfare, environment, customer information and education.

PRINCIPLE 8: BUSINESSES SHOULD SUPPORT INCLUSIVE GROWTH AND EQUITABLE DEVELOPMENT

The Murugappa Group is known for its tradition of philanthropy and community service. The Group’s philosophy is to reach out to the community by establishing serviceoriented philanthropic institutions in the field of education and healthcare, which has been identified as the core focus areas. The Company has been upholding the Group’s tradition by earmarking a part of its income for carrying out its social responsibilities. The Company believes that social responsibility is not just a corporate obligation that has to be carried out, but it is one’s dharma. The Company has been

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carrying out Corporate Social Responsibility (CSR) activities for a long time through AMM Foundation, an autonomous charitable trust, in the field of education and healthcare, while also pursuing CSR activities for the benefit of local communities around the factories in the States of Tamil Nadu, Andhra Pradesh and Karnataka.

The Company has always believed in ensuring the protection of the interests of all its stakeholders in tandem with its growth. The Company believes not only in value-added business but also in discharging its responsibilities to various sections of society and in providing opportunities to learn, contribute, advance, recognize and reward initiative, innovativeness, and creativity. It believes not only in delighting customers but also the community around it by establishing serviceoriented philanthropic institutions in the field of education and medicare. The Company has leveraged its 100 years old experience in cane procurement and sugar manufacturing in satisfying the needs of its principal stakeholders, the farmers and the consumers. The most important stakeholders of the Company are farmers and rural communities with whom the Company has forged long and enduring partnerships through crop development, protection and procurement activities. The Company has the distinction of being the only sugar Company in India in making prompt payment to farmers even in the most difficult times. Timely payment to farmers is not only one of the critical and most enduring practice practised by the Company, but it is the hallmark of its existence and operations. The stakeholder communities face the challenge of securing sustainable livelihoods, which is addressed through the Company’s multi-pronged approach to address these issues at several levels and methods. Besides prompt payment, the Company helps the farmers in a number of ways to meet their crop protection needs, improvement of yield and recovery and adoption of best cultivation practices.

Does the Company have specified programs/initiatives/ projects in pursuit of the policy related to Principle 8? If yes, details thereof.

Inclusive growth is at the core of the Company’s community development strategy. As mandated by the Act and based on recommendation of the CSR Committee, the Board of Directors have adopted a CSR Policy. The CSR policy, inter-alia, deals with the objectives of the Company’s CSR initiatives, the guiding principles, the thrust areas of CSR, the responsibilities of the CSR Committee, the implementation plan and reporting framework:

The thrust areas of the Company’s CSR activities are:

Empowerment of the disadvantaged sections of the society through education, access to and awareness about financial services and the like.
Provision of access to necessities like healthcare, drinking water & upliftment of underprivileged.
Work towards eradicating and poverty, through livelihood generation and skill development.
Supporting environmental and ecological balance through afforestation, soil conservation, rainwater harvesting, conservation of flora & fauna, and similar program.
Are the programs/projects undertaken through in-house team/own foundation/external NGO/government structures/ any other organization?

The Company undertakes CSR project/programs identified by the CSR Committee and approved by the Board of Directors, in line with the CSR Policy.

Thereafter the Company implements its CSR programs/ projects:

a) Through an implementation partner that can be a public charitable trust or a society registered under applicable Acts or a Company registered under Section 8 of the Act or
b) On its own

3. Have you done any impact assessment of your initiative?

Yes, the CSR committee internally performs a review and an impact assessment of its initiatives at the end of each year to understand the effectiveness of the programme in terms of delivery of desired benefits to the community and to gain insights for improving the design and delivery of future initiatives.

What is your Company’s direct contribution to community development projects- Amount in INR and the details of the projects undertaken?

During the year 2020-21, the Company has spent an amount of `124.57 Lakh on CSR activities encompassing various community development projects. As per Section 135 of the Act, the Company was not required to spend any amount on CSR Activities during the year 2020-21 considering its average net profits for the preceding three financial years.

Details of the projects undertaken are given in Annual Report on CSR Activities enclosed as Annexure ‘C’ to the Board’s Report.

Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please explain in 50 words, or so.

The CSR Committee of the Board of Directors identifies and implements all CSR projects/ programs and periodic reports are provided for review by the committee.

The Company has a well-defined, transparent monitoring and review mechanism to ensure that each CSR projects/ program has:

i. Clear sustainable objectives developed out of the societal needs that may be determined through need assessment studies and research (secondary or primary);

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ii. Clear targets, timelines and measurable indicators, wherever possible;
iii. A progress monitoring and reporting framework that is aligned with the requirements of Section 135 of the Act and the Companies (Corporate Social Responsibility Policy) Rules, 2014.

PRINCIPLE 9: BUSINESSES SHOULD ENGAGE WITH AND PROVIDE VALUE TO THEIR CUSTOMERS AND CONSUMERS IN A RESPONSIBLE MANNER

The Company has derived a Food Safety and Quality Policy to drive its business. Many of its units are certified for Food Safety System and Quality Management systems. The Company is committed to delivering quality products to its customers. Firstly, each institutional customers specification are reviewed, and products are produced to their requirements. This provides a value proposition to the customers and meets their expectations. To provide Zerodefect products to its customers, the plants follow either TPM or interventions such as FSSC 22000 and QMS ISO 9001:2018 system. The products of the Company undergo quality checks at different levels and well-defined SOPs and procedures. This has helped to identify and eliminate bottlenecks in the processes and systems. The Company’s food safety management system is based on various practices and codes for food safety, including Hazard Analysis Critical Control Point - HACCP, Good Manufacturing Practices-GMP, Codex Alimentarius Commission Guidelines, ISO 220021:2009, FSSAI-Food Safety and Standards Authority of India and other similar food safety standards issued from time to time. Across plants, internal audits are conducted for quality, environment, Food Safety and Occupational Health and Safety (OHSAS 18001). Initiatives are taken by the Company and sometimes by collaborating even with its customers to enable the Company to benchmark with the best-inclass and be future-ready to meet the changing Customer specifications and market requirements. The Company annually goes for Food Safety Systems Certification (FSSC 22000) and certification for Supplier’s Guiding Principles (SGP) compliance, SEDEX and SMETA 6.0. They regularly audit the units which are supplying to institutional customers to verify and validate to qualify to their required standards.

The Company has established a robust quality system that covers the entire supply chain starting from raw material supplier qualification to final product specification to customer. More emphasis was given to two critical areas in this journey, one being traceability to ensure that each batch is traceable to the raw material stage and beyond. The other one is through internal control systems such as the doer/reviewer/approval system. In addition, a complete transparency/data integrity process has been established with respect to the data management system.

What percentage of customer complaints/consumer cases are pending as on the end of financial year?
During the Financial Year 2020-21, all the customer complaints received were addressed. As of 31[st ] March

2021, no customer complaints were pending with the Company. An effective system of handling customer complaints exists within the Company. On receipt of a complaint, it is acknowledged within 48 hours and thereafter handled by the respective unit and its teams systematically. The team carries out a Root Cause Analysis, and a CAPA report is prepared. Effective correction, corrective or preventives actions are taken as may be deemed appropriate. The Company records these complaints on the SAP platform. These actions initiated are communicated to the Customer. During this financial year 2020-21, a total of 65 customer complaints from institutional, trade and retail customers were registered in the SAP system within the Company. All the complaints were resolved with appropriate corrections, countermeasures / corrective / preventive actions based on the Root Cause Analysis/Why Why Analysis/Fish-bone analysis carried out at the respective units of the Company. Also, several Standard Operation Procedures (SOPs) were proactively strengthened/ revised/developed for the required quality and food safety requirements across the units and deployed. These actions were also communicated within the Company for horizontal deployment.

All the complaints are handled as per the SOP established. Root causes are identified through appropriate techniques, and appropriate corrective and preventive actions are taken. The actions taken are continuously monitored to eliminate any recurrence. A total of four complaints were received during the year concerning packaging, assay, microbiology and physical properties.

Does the company display product information on the product label, over and above what is mandated as per local laws?

The Company displays as well as reviews the displayed information of all its products for correctness of information and safety guidance on the product label as may be required under the Food Safety and standards Act, 2006, Legal Metrology Act, 2011, Drugs and Cosmetics Act,1940, Fertiliser (Control) Order,1985, Sugar (Packing and Marking) Order, 1970, and other applicable laws and as may be applicable and relevant for its products. Over and above the mandatory requirements, the Company also subscribes to various customer information requirements. Product Information about the physical dimensions and/or compositions/nutrient content are provided through the product labels/pack declaration and/or catalogues.

Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during the last five years and pending as on end of financial year? If so, provide details thereof, in about 50 words or so.

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There has been no case filed by any stakeholder against the company relating to unfair trade practices, irresponsible advertising and / or anti-competitive behaviour against the Company.

Did your company carry out any consumer survey/ consumer satisfaction trends?

product quality, process, packing, transport, and other services. The primary aim of this is to understand the levels of satisfaction amongst its customers and to identify areas of opportunities for improvement in its services. Proactively, the Company also carries out market research surveys to understand markets, customer trends and expectations etc.

The company conducts periodical customer surveys/ feed backs at planned intervals to understand its

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Independent audItor’s report

to the Members of e.I.d. - parry (India) Limited

report on the audit of the standalone financial statements

opinion

We have audited the accompanying standalone financial statements of E.I.D. - Parry (India) Limited (“the Company”), which comprise the balance sheet as at March 31, 2021, and the statement of Profit and Loss (including Other Comprehensive Income), statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year then ended.

Key audit matter

Impairment assessment of carrying value of Investment in parry sugars refinery India private Limited (psrIpL). (Refer Note 5A to the standalone financial statements)

The Company’s investment in PSRIPL, a wholly owned subsidiary of the Company, aggregates to ` 58,371 Lakh as at March 31, 2021.

PSRIPL is engaged in the business of manufacture and sale of refined sugar. The carrying value of investment is greater than the net worth of the subsidiary as at March 31, 2021 which is an indicator of potential impairment of this investment and accordingly an impairment assessment has been performed by the Management.

This is a key audit matter as the investment in PSRIPL is significant to the financial statements and management/management expert judgement is required in certain key areas such as discount and growth rates in estimating future cash flows prepared by the Company (the Model) to support the carrying value of the investment.

Basis for opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

How our audit addressed the key audit matter

Our audit procedures includes the following:

Understanding and evaluating the design and testing the operating effectiveness of key controls in relation to the impairment testing Model.
Assessing the Model and evaluating the independence, competence, capabilities and objectivity of the management’s valuer.
Assessing the historical accuracy of the Company’s forecasts by comparing the forecasts used in the prior year models with the actual performance in the current year.
Testing the mathematical accuracy of the underlying calculations and agreeing the forecasts for the ensuing year with the latest Board approved budgets.
Evaluating, along with the auditor’s experts, the key assumptions such as discount rate and growth rate used in the Model.
Performing sensitivity tests on the Model for a range of certain assumptions, such as discount rate and growth rate.
Evaluating adequacy of the disclosures made in the financial statements.

Based on the procedure performed, we did not identify any material exceptions in the impairment assessment carried out by the management in respect of the carrying value of its investment in Parry Sugars Refinery India Private Limited

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other Information

The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Board’s report together with the annexure thereto, Report on Corporate Governance and Business Responsibility Report but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

responsibilities of management and those charged with governance for the financial statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.

auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the

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underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

report on other legal and regulatory requirements

As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2021 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “annexure a”.
(g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact, if any, of pending litigations on its financial position in its standalone financial statements - Refer Note 53 to the standalone financial statements.
ii. The Company has long-term contracts including derivative contracts as at March 31, 2021 for which there were no material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2021.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2021.
The Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
- For price Waterhouse Chartered accountants LLp Firm Registration Number: 012754N/N500016 Chartered Accountants

Baskar pannerselvam

Partner Place: Chennai Membership Number: 213126 Date: June 29, 2021 UDIN No: 21213126AAAAES8454

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annexure a to Independent audItor’s report

Referred to in paragraph 14(f) of the Independent Auditor’s Report of even date to the members of E.I.D. - Parry (India) Limited on the standalone financial statements as of and for the year ended March 31, 2021.

report on the Internal Financial Controls with reference to financial statements under Clause (i) of sub-section 3 of section 143 of the act

We have audited the internal financial controls with reference to financial statements of E.I.D. - Parry (India) Limited (“the Company”) as of March 31, 2021 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management’s responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

auditors’ responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to financial

statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system with reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A company’s internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial controls with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financial statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial

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controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31, 2021, based on the internal control over financial reporting criteria established by the Company considering the essential

components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For price Waterhouse Chartered accountants LLp Firm Registration Number: 012754N/N500016 Chartered Accountants

Baskar pannerselvam

Partner Place: Chennai Membership Number: 213126 Date: June 29, 2021 UDIN No: 21213126AAAAES8454

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annexure B to Independent audItor’s report

Referred to in paragraph 13 of the Independent Auditor’s Report of even date to the members of E.I.D. - Parry (India) Limited on the standalone financial statements as of and for the year ended March 31, 2021.

i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of property, plant and equipment and intangible assets.
(b) The property, plant and equipment are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) According to the information and explanations given to us and based on the examination of the registered title deeds provided to us, we report that the title deeds of all the immovable properties of land and buildings as disclosed in Note 2, 3 and 14 to the standalone financial statements are held in the name of the Company as at the Balance Sheet date other than those immovable properties which are yet to be registered in the name of the company consequent to the Scheme of Arrangement (Demerger) of Haliyal and Sankili units of Parry Sugar Industries Limited with the Company and Scheme of Amalgamation of Sadashiva Sugars Limited with the Company.
- Immovable properties of land and buildings whose title deeds have been pledged as security for loans, guarantees, etc. are held in the name of the Company as per the Memorandum of Entry executed by the Company and confirmed by the banker as on the balance sheet date. In respect of immovable properties of land and building that have been taken on lease and included in Investment Property or Right-of-use Assets in the financial statement, the lease agreements are in the name of the Company where the Company is a lessee in the agreement.
ii. The physical verification of inventory have been conducted at reasonable intervals by the Management during the year. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b) and (iii)(c) of the

said Order are not applicable to the Company.

iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products.

We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of provident fund, employees’ state insurance and professional tax, though there has been a slight delay in a few cases, and is regular in depositing undisputed statutory dues, including, employees’ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess, goods and service tax and other material statutory dues, as applicable, with the appropriate authorities. Also refer Note 29 to the standalone financial statements regarding management’s assessment on certain matters relating to provident fund. Further, for the period April 01, 2020 to April 30, 2020 and May 01, 2020 to May 31, 2020, the company has paid Goods and Service Tax and filed GSTR-3B after the due date but within the timelines allowed by Central Board of Indirect Taxes and Customs under the Notification No. 52/2020 - Central Tax dated June 24, 2020 on fulfilment of conditions specified therein.
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of income tax, sales tax, service tax and duty of excise duty and value added tax as at March 31, 2021 which have not been deposited on account of a dispute, are as follows:

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==> picture [507 x 30] intentionally omitted <==

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Name of the statute Nature of Amount Period to which the Forum where the dispute is pending
dues (In Lakhs) amount relates
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The Finance Act,1994	Service Tax	183	2005-06 to 2016-17	Customs Excise and Service Tax Appellate Tribunal/Commissioner (Appeals)
The Central Excise Act, 1944	Excise duty	1,077	1977-78, 1997-00, 2005-2017	Assistant Commissioner/Commissioner/ Commissioner (Appeals)/CESTAT/ Honorable Supreme Court
Sales Tax Act of various states/ Central Sales Tax Act, 1956	Sales Tax	232	1981-2016	Deputy Commissioner/Joint Commissioner/Tribunal/Honorable High Court/Honorable Supreme Court
Income Tax Act, 1961	Income Tax dues	10,818	2001-02 to 2016-17	Income Tax Appellate Tribunal/CIT Appeals/ Honorable High Court

*net of amount paid under protest

viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders as at the balance sheet date.
ix. In our opinion, and according to the information and explanations given to us, the moneys raised by way of term loans have been applied, on an overall basis, for the purposes for which they were obtained. The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. The Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified under Section 133 of the Act
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For price Waterhouse Chartered accountants LLp Firm Registration Number: 012754N/N500016 Chartered Accountants

Baskar pannerselvam Partner Place: Chennai Membership Number: 213126 Date: June 29, 2021 UDIN No: 21213126AAAAES8454

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standaLone BaLanCe sHeet

AS AT MARCH 31, 2021

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(` Lakh)
particulars note as at as at
no. March 31, 2021 March 31, 2020
assets
non-current assets
(a) Property, plant and equipment 2 1,02,763 1,22,767
(b) Right-of-use asset 2A 5,519 5,873
(c) Capital work in progress 2 11,230 1,932
(d) Investment property 3 3,350 2,489
(e) Goodwill 3A - 1,452
(f) Other intangible assets 4 213 274
(g) Financial assets
(i) Investments
a) Investments in subsidiaries 5A 81,230 81,625
b) Investments in joint venture 5B 1,070 1,070
c) Other Investments 6 18,718 17,250
(ii) Loans 8 30,400 800
(iii) Other fnancial assets 9 482 387
(h) Deferred tax assets (net) 44 - 8,161
(i) Income tax assets (net) 15 9,727 6,996
(j) Other non current assets 10 1,434 1,629
total non-current assets 2,66,136 2,52,705
Current assets
(a) Inventories 11 95,706 95,681
(b) Financial assets
(i) Trade receivables 7 20,063 16,178
(ii) Cash and cash equivalents 12 1,338 1,054
(iii) Bank balances other than (ii) above 13 1,691 446
(iv) Loans 8 10,400 400
(v) Other fnancial assets 9 15,482 18,349
(c) Other current assets 10 10,181 19,566
1,54,861 1,51,674
Assets classifed as held for sale 14 6,460 3,380
total current assets 1,61,321 1,55,054
totaL assets 4,27,457 4,07,759
eQuItY and LIaBILItIes
equity
(a) Equity share capital 16 1,771 1,770
(b) Other equity 17 2,57,638 1,69,605
total equity 2,59,409 1,71,375
Liabilities
non-current liabilities
(a) Financial liabilities
i. Borrowings 18 7,942 41,000
ii. Lease liability 2A 3,810 4,408
(b) Deferred tax liabilities (Net) 44 12,518 864
(c) Long term provisions 23 719 862
(d) Other non-current liabilities 22 483 661
total non-current liabilities 25,472 47,795
Current Liabilities
(a) Financial liabilities
i. Borrowings 19 35,459 49,232
ii. Lease Liability 2A 1,101 1,062
iii. Trade payables 20
a. total outstanding dues of micro and small enterprises 303 180
b. total outstanding dues other than (iii)(a) above 30,213 43,447
iv. Other fnancial liabilities 21 70,418 90,837
(b) Short term provisions 23 1,343 1,548
(c) Other current liabilities 22 3,739 2,283
total current liabilities 1,42,576 1,88,589
total Liabilities 1,68,048 2,36,384
totaL eQuItY and LIaBILItIes 4,27,457 4,07,759
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The accompanying notes are an integral part of these standalone Ind AS financial statements. In terms of our report attached

For and on behalf of the Board of Directors

For price Waterhouse Chartered accountants LLp Firm Registration Number: 012754N/N500016 Chartered Accountants

s. suresh V. ravichandran Managing Director Chairman DIN: 06999319 DIN: 00110086 Biswa Mohan rath s. rameshkumar Company Secretary Chief Financial Officer

Baskar pannerselvam Partner Membership Number: 213126 Chennai Date: June 29, 2021

Chennai Date: June 29, 2021

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standaLone stateMent oF proFIt and Loss

FOR THE YEAR ENDED MARCH 31, 2021

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(Lakh) s.no particulars note Year ended Year ended no. March 31, 2021 March 31, 2020 I Revenues from Operations 24 202,425 187,488 II Other Income 25 38,540 14,069 III total Income (I+II) 240,965 201,557 IV expenses: Cost of materials consumed 26 137,063 126,046 Purchases of stock-in-trade 27 2,308 351 Changes in inventories of finished goods, by products, work-in- 28 (653) 1,208 progress and stock-in-trade Employee benefits expense 29 13,750 15,961 Finance costs 30 9,272 13,566 Depreciation and amortisation expense 31 11,999 11,956 Other expenses 32 32,904 34,473 total expenses (IV) 206,643 203,561 V Profit/(loss) before tax and exceptional items (III-IV) 34,322 (2,004) VI Exceptional item 33 71,517 - VII profit/(loss) before tax (V+VI) 105,839 (2,004) VIII Tax Expense: (1) Current Tax 45 (69) (89) (2) Deferred Tax 45 19,422 (2,098) 19,353 (2,187) IX profit/(loss) for the year (VII-VIII) 86,486 183 other comprehensive income i) Items that will not be reclassified to profit or loss a) Remeasurements of defined benefit plans 35 (213) b) Equity instruments through other comprehensive income 1,468 192 1,503 (21) ii) Income tax relating to items that will not be reclassfied to (393) (263) profit or loss X total other comprehensive income/(loss) (a(i-ii)+B(i-ii)) 1,110 (284) XI total comprehensive income/(loss) (Ix+x) 87,596 (101) XII Earnings per Equity Share (Nominal value per share 1)
(a) Basic 48 48.86 0.10
(b) Diluted 48 48.85 0.10
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The accompanying notes are an integral part of these standalone Ind AS financial statements. In terms of our report attached

For and on behalf of the Board of Directors

For price Waterhouse Chartered accountants LLp Firm Registration Number: 012754N/N500016 Chartered Accountants

Baskar pannerselvam

Partner Membership Number: 213126 Chennai Date: June 29, 2021

s. suresh V. ravichandran Managing Director Chairman DIN: 06999319 DIN: 00110086 Biswa Mohan rath s. rameshkumar Company Secretary Chief Financial Officer

Chennai Date: June 29, 2021

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standaLone stateMent oF CasH FLoWs

FOR THE YEAR ENDED MARCH 31, 2021

(` Lakh)

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particulars For the Year ended For the Year ended
March 31, 2021 March 31, 2020
a. Cash flow from operating activities
net profit before tax 1,05,839 (2,004)
adjustments for:
Depreciation, amortisation and impairment 20,436 11,956
Finance costs 9,272 13,566
Gain on sale of investment in subsidary (exceptional item) (82,725) -
Dividend income (30,516) (6,219)
Profit on sale of investment property and fixed assets (net) (1,227) (363)
Net (gain)/loss arising on FVTPL Transaction (105) (169)
Interest income (including government grant interest income) (1,250) (2,435)
Liabilities/provisions no longer required written back (235) (190)
Bad debts written off and provision for doubtful debts 1,704 716
Provision for employee benefits (173) 274
Rental income from investment property net of expense (1,200) (1,387)
(86,019) 15,749
operating profit before working capital changes 19,820 13,745
Changes in operating assets & liabilities
(Increase)/decrease in trade receivables (5,443) (641)
(Increase)/decrease in inventories (25) 1,591
(Increase)/decrease in bank balances considered as other than (1,249) 33
cash and cash equivalent
(Increase)/decrease in other assets 10,098 (988)
(Increase)/decrease in other financial assets 2,616 (10,578)
Increase/(decrease) in trade payable (12,876) 3,010
Increase/(decrease) in other liabilties 1,442 385
Increase/(decrease) in other financial liabilties 2,574 1,472
Increase/(decrease) in cane bills due (18,003) (9,243)
(20,866) (14,959)
Cash generated used in operations (1,046) (1,214)
Income tax paid net of refund (2,662) (342)
net cash from/(used in) operating activities (3,708) (1,556)
B. Cash flow from investing activities
Purchase of property, plant and equipment and intangible (13,060) (10,099)
assets
Proceeds from sale of investment property and fixed assets 1,558 665
Sale of investments and investment income 105 169
Investments in subsidiary companies - (1,888)
Investments in Joint venture - (410)
Intercorporate loan 400 400
Intercorporate loan (given to)/repaid by subsidiary (40,000) 51
Operating lease rental received from investment property net 1,200 1,387
of expenses
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standaLone stateMent oF CasH FLoWs

FOR THE YEAR ENDED MARCH 31, 2021

(` Lakh)

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----- Start of picture text -----

particulars For the Year ended For the Year ended
March 31, 2021 March 31, 2020
Interest received 263 349
Proceed from sale of investment in subsidary (exceptional 83,516 -
item)
Dividend income received 30,516 6,219
net cash from/(used in) investing activities 64,498 (3,157)
C. Cash flow from financing activities
Proceeds from issue of equity shares 298 -
Proceeds from long term borrowings 6,403 19,104
Repayment of long term borrowings (40,750) (10,560)
Net increase/(decrease) in working capital borrowing (13,853) 11,601
Finance costs paid (11,444) (13,410)
Lease rent payment under Ind AS 116 (refer note 2A) (1,160) (1,038)
net cash (used in)/from financing activities (60,506) 5,697
net increase in cash and cash equivalents (a+B+C) 284 984
reconciliation:
Cash and cash equivalents as at beginning of the year 1,054 70
Cash and cash equivalents as at end of the year (refer note no 1,338 1,054
12)
net increase in cash and cash equivalents 284 984
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less than ` 1 Lakh

includes amounts transferred to earmarked dividend accounts

The accompanying notes are an integral part of these standalone Ind AS financial statements. In terms of our report attached

For and on behalf of the Board of Directors

For price Waterhouse Chartered accountants LLp

Firm Registration Number: 012754N/N500016 Chartered Accountants

Baskar pannerselvam

Partner Membership Number: 213126 Chennai Date: June 29, 2021

s. suresh V. ravichandran Managing Director Chairman DIN: 06999319 DIN: 00110086 Biswa Mohan rath s. rameshkumar Company Secretary Chief Financial Officer

Chennai Date: June 29, 2021

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, (`Lakh)	particulars share Capital reserves and surplus other reserves total Capital redemption reserve Capital reserve on amalgamation securities premium reserve debenture redemption reserve Capital reserve General reserve esop reserve retained earnings equity Instruments through other compehensive Income	Balance at april 01, 2019 1,770 4,288 688 6,174 833 5,718 88,680 345 49,520 13,334 171,350	Movement during 2019-20	Proft for the year - - - - - - - - 183 - 183	Other comprehensive income for the - - - - - - - - (138) (146) (284)	year, net of income tax	Amount transferred within reserves - - - - (833) - - - 833 - -	transactions with owners in their	capacity as owners:	Recognition of share based payments - - - - - - - 126 - - 126	Balance at March 31, 2020 1,770 4,288 688 6,174 - 5,718 88,680 471 50,398 13,188 171,375	Movement during 2020-21	Proft for the year - - - - - - - - 86,486 - 86,486	Other comprehensive loss for the year, - - - - - - - - (48) 1,158 1,110	net of income tax	transactions with owners in their	capacity as owners:	Shares issued during the year 1 - - 297 - - - - - - 298	Recognition of share based payments - - - - - - - 140 - - 140	Amount transferred within reserves - - - 105 - 1 (106) -	Balance at March 31, 2021 1,771 4,288 688 6,576 - 5,718 88,681 505 136,836 14,346 259,409	The accompanying notes are an integral part of these standalone Ind AS fnancial statements.	In terms of our report attached For and on behalf of the Board of Directors	For price Waterhouse Chartered accountants LLp s. suresh V. ravichandran	Firm Registration Number: 012754N/N500016 Managing Director Chairman	Chartered Accountants DIN: 06999319 DIN: 00110086	Baskar pannerselvam Biswa Mohan rath s. rameshkumar	Partner Company Secretary Chief Financial Offcer	Membership Number: 213126	Chennai Chennai	Date: June 29, 2021 Date: June 29, 2021

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Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

Corporate information

E.I.D.-Parry (India) Limited is a significant player in Sugar with interests in promising area of Nutraceuticals. The Company also has a significant presence in Farm Inputs business through it’s subsidiary, Coromandel International Limited

The Company has six sugar factories having a capacity to crush 40,300 Tonnes of Cane per day, generate 140 MW of power and four distilleries having a capacity of 237 KLPD. In the Nutraceuticals business, it holds a strong position in the growing wellness segment mainly catering to the world markets with its organic products.

sIGnIFICant aCCountInG poLICIes

1 statement of Compliance

The financial statements have been prepared in accordance with Ind ASs notified under Sec 133 of the Companies Act, 2013 [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

a) The Company has applied the following standards and amendments for the first time for their annual reporting period commencing April 01, 2020:

Definition of Material – amendments to Ind AS 1 and Ind AS 8

Definition of a Business – amendments to Ind AS 103

COVID-19 related concessions – amendments to Ind AS 116

Interest Rate Benchmark Reform – amendments to Ind AS 109 and Ind AS 107

The amendments listed above did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.

1.1 Basis of preparation and presentation

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, defined benefit plan - plan assets measured at fair value, assets held for sale which is measured at lower of cost and fair value less cost to sell and share based payments as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.

the principal accounting policies are set out below.

1.2 revenue recognition

i. Sale of goods

Revenue is recognised when the performance obligations are satisified and the control of the product is transferred, being when the goods are delivered as per the relevant terms of the contract at which point in time the Company has a right to payment for the asset, customer has legal title of the asset, customer bears significant risk and rewards of ownership and the customer has accepted the asset or the Company has objective evidence that all criteria for acceptance have been satisfied. Payment for the sale is made as per the credit terms in the agreements with the customers. The credit period is generally short term, thus there is no significant financing component. Certain products of the Company carry a right of return. The Company based on accumulated experience estimates that the right of return and revenue is recognised only to the extent it is highly probable that a significant reversal in the cumulative revenue recognised will not occur. The

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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

validity of this assumption and estimated amount of return are reassessed at each reporting period.

ii. Rendering of services

The performance obligation under service contracts are provision of handling service, business support service and other ancillary services set forth in the contracts.Revenue from rendering of services are recognised over a period of time by reference to the stage of completion as the customer simultaneously receives and consumes the benefit provided by the Company’s performance as the Company performs.

Payment for the service rendered is made as per the credit terms in the agreements with the customers. The credit period is generally short term, thus there is no significant financing component.

iii. Dividend and interest income
a). Dividend income from investments is recognised when the shareholder’s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably).
b). Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.
iv. Insurance Claims

Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

v. Export Incentives

Export incentives are treated as income in the year of export at the estimated realisable value.

vi. Commission

Commissions are accounted as per the terms of the contract and to the extent that the amounts recoverable can be measured reliably and reasonable to expect ultimate collection

1.3 Leasing

Company as Lessee

From April 1, 2019, leases are recognised as a rightof-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Contracts may contain both lease and non-lease components. The Company allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices.

Assets and liabilities arising from a lease are initially measured on present value basis. Lease liability include the net present value of the following payments:

fixed payments (including in substance fixed payments), less any lease incentives receivable
variable lease payments that are based on an index or a rate, initially measured using the index or rates at the commencement date
amounts expected to be payable by the Company under residual value guarantees
the exercise price of purchase options if the Company is reasonably certain to exercise that option
payment of penalties for terminating the lease, if the lease term reflects the Company exercising that option

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the Company’s incremental borrowing rate is used, being the rate the Company would have to pay to borrow fund necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

Variable lease payments that are dependent on sales are recognised in statement of profit and loss in the period in which the conditions that triggers those payments occurs.

Right-of-use assets are measured at cost comprising the following:

the amount of initial measurement of lease liability

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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

any lease payments made at or before the commencement date less any incentives received
any initial direct costs and
restoration costs

Right-of-use assets are generally depreciated over the shorter of asset’s useful life and the lease term on a straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life.

Payments associated with short-term leases of equipment and all leases of low-value assets are recognised on a straight-line basis as an expense in statement of profit and loss. Short-term leases are leases with a lease term of 12 months or less. Low value assets comprise small items.

Company as Lessor

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised as expenses over the lease term on the same basis as lease income. The respective leased assets are included in the balance sheet based on their nature. The Company did not need to make any adjustments to the accounting of assets held as lessor as a result of adopting the new leasing standard.

1.4 Functional and presentation Currency and Foreign Currency transactions

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (i.e. the “functional currency”). The financial statements are presented in Indian Rupee, the national currency of India, which is the functional currency of the Company.

In preparing the financial statements of the Company, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in statement of profit and loss in the period in which they arise except for:

Exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings;
Exchange differences on transactions entered into in order to hedge certain foreign currency risks (see note 1.20 below for hedging accounting policies); and
Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised initially in other comprehensive income and reclassified from equity to profit and loss on repayment of the monetary items.

1.5 Borrowings & related costs

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in statement of profit and loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in statement of profit and loss as other gains/(losses).

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end

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of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognised in statement of profit and loss in the period in which they are incurred.

1.6 Government grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received.

Government grants are recognised in statement of profit and loss on a systematic basis over the periods in which the Company recognises as expenses the related costs for which the grants are intended to compensate.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company with no future related costs are recognised in statement of profit and loss in the period in which they become receivable.

Government grant is recognised either as other operating income, or other income or adjusted agsinst expenses depending upon the nature of the grant and the same is followed consistently.

The benefit of a government loan at a below-market rate of interest is treated as a government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates.

In respect of government loans at below-market rate of interest existing on the date of transition, the Company has availed the optional exemption under Ind AS 101 - First Time Adoption and has not recognised the corresponding benefit of the goverment loan at belowmarket interest rate as Government grant.

1.7 employee Benefits

(a) retirement benefit costs and termination benefits

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period.

Defined benefit costs are categorized as follows:

Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
net interest expense or income; and
Remeasurement

The company presents the first two components of defined benefit costs in statement of profit and loss in the line item ‘Employee benefits expense’.

Past service cost is recognised in statement of profit and loss in the period of a plan amendment.

Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to statement of profit and loss.

Curtailment gains and losses are accounted for as past service costs. The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

Contributions paid/payable to defined contribution plans comprising of Superannuation (under a scheme of Life Insurance Corporation of India) and Provident Funds for certain employees covered under the respective Schemes are recognised in the Statement of Profit and Loss each year.

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The Company makes contributions to Provident Fund Trusts for certain employees, at a specified percentage of the employee’s salary. The Company has an obligation to make good the shortfall, if any, between the return from the investments of trust and the notified interest rates.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognizes any related restructuring costs.

(b) short-term and other long-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries in the period the related service is rendered.

Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.

Gratuity for certain employees is covered under a Scheme of Life Insurance Corporation of India (LIC) and contributions in respect of such scheme are recognized in the Statement of Profit and Loss. The liability as at the Balance Sheet date is provided for based on the actuarial valuation carried out as at the end of the year.

1.8 share-based payment arrangements

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in note 50.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in statement of profit and loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.

Under the previous GAAP, share based payment costs were accrued on an intrinsic value method. Upon transition to Ind AS, the Company has availed the

exemption to apply the fair value to only unvested options.

1.9 earnings per share

The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is calculated by dividing the profit or loss attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

1.10 taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

a. Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

b. deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences and unused tax losses. Deferred tax assets are generally recognised for all deductible temporary differences and unsued tax losses to the extent that it is probable that taxable profits will be available against which those deductible temporary differences and unused tax losses can be utilized. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with

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such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

c. Current and deferred tax for the year

Current and deferred tax are recognised in statement of profit and loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

1.11 property, plant and equipment

Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost less accumulated depreciation and accumulated impairment losses. Freehold land is not depreciated.

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the Company’s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Fixtures and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

Estimated useful lives of the assets as per technical evaluation performed by the Company are as follows:

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asset useful lives (in years)
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Buildings	3 - 60years
Plant and equipment (Continuous Process)	1-18 years
Plant and equipment (General)	1-18 years
Vehicles	1- 8years
Offce equipment, furniture and fxtures	1 - 10 years

Assets on leased premises are depreciated on the remaining period of lease or as per the useful life tabulated above whichever is less.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in statement of profit and loss.

Assets costing ` 5,000 and below are depreciated over a period of one year.

1.12 Investment property

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost including transaction costs. Subsequent to initial recognition, investment properties are measured in accordance with Ind AS 16’s requirement for cost model. Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

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Estimated useful lives of the assets are as follows:

asset	useful lives (inyears)
Buildings	10 - 60years

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in statement of profit and loss in the period in which the property is derecognised.

1.13 Intangible assets

a. Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

b. Internally-generated intangible assets - research and development expenditure

Expenditure on research activities is recognised as an expense in the period in which it is incurred.

An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following have been demonstrated:

the technical feasibility of completing the intangible asset so that it will be available for use or sale;
the intention to complete the intangible asset and use or sell it;
the ability to use or sell the intangible asset;
how the intangible asset will generate probable future economic benefits;
the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
the ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internallygenerated intangible asset can be recognised, development expenditure is recognised in statement of profit and loss in the period in which it is incurred.

Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

c. derecognition of intangible assets

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in statement of profit and loss when the asset is derecognized.

d. useful lives of intangible assets

Estimated useful lives of the intangible assets are as follows:

asset	useful lives (inyears)
Software & Licenses	1- 10years

1.14 Impairment of tangible & Intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cashgenerating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives, goodwill and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their

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present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in statement of profit and loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in statement of profit and loss.

1.15 Inventories

Inventories other than by products are stated at the lower of cost and net realizable value. Inventories of byproducts are valued at net realizable value. Cost of raw materials and traded goods comprises cost of purchases after deducting rebates and discounts. Cost of work-inprogress and finished goods comprises direct materials, direct labour and an appropriate propotion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Net realizable value represents the estimated selling price in the ordinary course of business, less all estimated costs of completion and costs necessary to make the sale. Cost of inventories are determined on weighted average basis.

1.16 provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments

of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a 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.

1.17 Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in statement of profit and loss.

1.18 Financial assets

All regular way purchases or sales of financial assets are recognised and derecognized on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

All recognised financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of the financial assets

a. Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortized cost (except for debt instruments that are designated as at fair value through profit or loss on initial recognition): the debt instruments carried at amortised cost include deposits, debtors, loans and advances recoverable in cash.

the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and
the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

For the impairment policy on financial assets measured at amortized cost, refer note 1.18e.

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Investment in subsidiaries are accounted under cost basis in accordance with Ind AS 27.

Impairment on investment in subsidiaries/joint ventures are carried out in accordance with Ind AS 36.

All other financial assets are subsequently measured at fair value.

b. effective interest method

The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL. Interest income is recognised in statement of profit and loss and is included in the ‘other income’ line item.

c. Investments in equity instruments at FVtoCI

The Company has elected to carry investment in equity instruments at Fair value through other comprehensive income. On initial recognition, the Company can make an irrevocable election (on an instrument-by-instrument basis) to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments. This election is not permitted if the equity investment is held for trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the ‘Reserve for equity instruments through other comprehensive income’. The cumulative gain or loss is not reclassified to statement of profit and loss on disposal of the investments.

The Company has equity investments which are not held for trading. The Company has elected the FVTOCI irrevocable option for these investments (see note 6). Fair value is determined in the manner described in note 49.8.

Dividends on these investments in equity instruments are recognised in statement of profit and loss when the Company’s right to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment

and the amount of dividend can be measured reliably. Dividends recognised in statement of profit and loss are included in the ‘Other income’ line item.

d. Financial assets at fair value through profit or loss (FVtpL)

The Company carries derivative contracts not designated in a hedge relationship at FVTPL. Financial assets at FVTPL also includes assets held for trading. A financial asset is held for trading if: • it has been acquired principally for the purpose of selling it in the near term; or

on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or
it is a derivative that is not designated and effective as a hedging instrument or a financial guarantee.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on remeasurement recognised in statement of profit and loss. The net gain or loss recognised in statement of profit and loss incorporates any dividend or interest earned on the financial asset and is included in the ‘Other income’ line item. Dividend on financial assets at FVTPL is recognised when the Company’s right to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.

Impairment of financial assets

e.

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, lease receivables, trade receivables, other contractual rights to receive cash or other financial asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual terms of the financial instrument through the expected life of that financial instrument.

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For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information on case to case basis.

f. derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in statement of profit and loss if such gain or loss would have otherwise been recognised in statement of profit and loss on disposal of that financial asset.

g. Foreign exchange gains and losses

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period.

For foreign currency denominated financial assets measured at amortized cost and FVTPL, the exchange differences are recognised in statement of profit and loss except for those which are designated as hedging instruments in a hedging relationship.
Changes in the carrying amount of investments in equity instruments at FVTOCI relating to changes in foreign currency rates are recognised in other comprehensive income.
For the purposes of recognizing foreign exchange gains and losses, FVTOCI debt instruments are treated as financial assets measured at amortized cost. Thus, the exchange differences on the amortized cost are recognized in statement of profit and loss and other changes in the fair value of FVTOCI financial assets are recognised in other comprehensive income.

1.19 Financial liabilities and equity instruments

a. Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

b. equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in statement of profit and loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.

c. Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.

However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies, financial guarantee contracts issued by the Company, and commitments issued by the Company to provide a loan at below-market interest rate are measured in accordance with the specific accounting policies set out below.

c.1. Financial liabilities at FVTPL

Financial liabilities at FVTPL includes derivative liabilities. Non-derivative financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration recognised by the Company as an acquirer in a business combination to which Ind AS 103 applies or is held for trading or it is designated as at FVTPL. There are no nonderivative financial liabilities carried at FVTPL

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement

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recognised in statement of profit and loss. The net gain or loss recognised in statement of profit and loss incorporates any interest paid on the financial liability and is included in the ‘Other income’ line item.

Fair value is determined in the manner described in note 49.8.

c.2. Financial liabilities subsequently measured at amortised cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortized cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortized cost are determined based on the effective interest method. Interest expense that is not capitalized as part of costs of an asset is included in the ‘Finance costs’ line item.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

c.3. Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.

Financial guarantee contracts issued by the Company are initially measured at their fair values and, are subsequently measured at the higher of:

the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109;
the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 115.

c.4. Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign currency and are measured at amortized cost at the end of each reporting period, the

foreign exchange gains and losses are determined based on the amortized cost of the instruments and are recognised in ‘Other income’.

The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange component forms part of the fair value gains or losses and is recognised in statement of profit and loss.

c.5. Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognised in statement of profit and loss.

1.20 derivative financial instruments & Hedge accounting

The Company enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts, interest rate swaps and cross currency swaps. Further details of derivative financial instruments are disclosed in note 49.8

Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in statement of profit and loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of profit and loss depends on the nature of the hedging relationship and the nature of the hedged item.

The Company designates certain hedging instruments, which include derivatives and non-derivatives in respect of foreign currency risk, as either fair value hedges, cash flow hedges, or hedges of net investments in foreign operations. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk.

Cash Flow Hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recorded in other comprehensive income and are grouped under head of cash flow hedge reseve. The gain or loss relating to the ineffective portion is recognized immediately in the statement of profit and loss, and is included in the ‘Other income’ line item. The cumulative gain or loss previously recognized in other comprehensive income remains there until the forecast transaction occurs. When the hedged item is a non-financial asset, the amount recognized in other comprehensive income is transferred to the carrying amount of the asset when it is recognized. In other cases the amount recognized in other comprehensive income is transferred to statement of profit and loss in the same period that the hedged item affects statement of profit and loss. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. Any gain or loss recognised in other comprehensive income and accumulated in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in statement of profit and loss. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in the other comprehensive income is transferred to statement of profit and loss, and is included in Other income.

1.21 offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet, where there is a legally enforcable right to offset the recognised amounts and there is intention to settle on net basis or realise the assets and liabilities simultaneously.The legally enforcable right must not be contingent on future events and must be enforcable in the normal course of business and in the event of default, insolvency or bankruptcy of the group or the counterparty.

1.22 Cash flow statement

investing and financing activities of the Company are segregated based on the available information. Cash and cash equivalents includes balances in current accounts, cash on hand, cheques, drafts on hand. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet

1.23 Key sources of estimation uncertainty

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

a. Fair value measurement and valuation processes

Some of the Company’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Company engages third party qualified valuers to perform the valuation. The management works closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to the model. Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in notes 3 and 49.8.

b. useful life of property, plant and equipment

The Company reviews the estimated useful lives of property, plant and equipment at the end of each reporting period. During the current year, there has been no significant change in life considered for the assets.

c. Impairment of tangible assets, intangible assets and financial assets

The recoverable amounts have been determined based on value in use calculations which uses cash flow projections or net realisable value. For further details, refer note 1.14, 1.18e, 3A and 5A.

d. Leases

Ind AS 116 defines a lease term as the non-cancellable period for which the lessee has the right to use the underlying asset including optional periods, when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. The Company considers all relevant facts and circumstances that

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Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

create an economic incentive for the lessee to exercise the option when determining the lease term. The option to extend the lease term are included in the lease term, if it is reasonably certain that the lessee will exercise the option. The Company reassesses the option when significant events or changes in circumstances occur that are within the control of the lessee.

1.24 operating Cycle

Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

1.25 Contributed equity

Equity shares are classified as equity.Incremental costs directly attributable to the issue of new shares or options are shown in equity as deduction, net of tax, from the proceeds.

1.26 dividend

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period.

1.27 Goodwill

Goodwill on business combination is included under non current assets. Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of the business include the carrying amount of goodwill relating to the business sold. Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal management purposes.

1.28 non-current assets (or disposal groups) held for sale and discontinued operations

principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically exempt from this requirement

An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised.

A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of de-recognition.

Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.

Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.

A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single coordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately in the statement of profit and loss.

1.29 rounding off amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakh as per the requirement of Schedule III, unless otherwise stated.

Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered

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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

note 2

property, plant and equipment and capital work-in-progress

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
Carrying amounts of:
Freehold land 4,185 5,093
Buildings 18,325 20,306
Plant and equipment 79,011 95,750
Furniture and Fixtures 181 236
Office Equipment 864 1,038
Vehicles 197 344
1,02,763 1,22,767
Capital Work-in-progress 11,230 1,932
1,13,993 1,24,699
----- End of picture text -----

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(` Lakh)
particulars Freehold Buildings plant and Furniture office Vehicles total CWIp
land (refer note equipment and Fixtures equipment
2)
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particulars	Freehold land	Buildings (refer note 2)	plant and equipment	Furniture and Fixtures	offce equipment	Vehicles	total	CWIp

Cost
Balance at april 01, 2019	5,332	24,160	1,35,634	337	1,203	706	1,67,372	1,008
Additions	-	1,004	7,610	56	360	87	9,117	1,370
Disposals and Adjustments	(239)	(359)	808	(29)	49	(104)	126	-
Transfer to PPE	-	-	-	-	-	-	-	(446)
Transfer from assets held for sale	-	25	948	-	4	17	994	-
Balance at March 31, 2020	5,093	24,830	1,45,000	364	1,616	706	1,77,609	1,932
Additions	-	815	2,104	7	160	11	3,097	12,309
Disposals and Adjustments	(23)	(76)	(347)	(15)	(29)	(31)	(521)	-
Transfer to PPE	-	-	-	-	-	-	-	(3,011)
Transfer to Investment Property	(885)	-	-	-	-	-	(885)	-
Transfer from/(to) assets held for sale	-	(1,018)	(13,349)	(10)	(183)	(6)	(14,566)	-
Balance at March 31, 2021	4,185	24,551	1,33,408	346	1,564	680	1,64,734	11,230

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Corporate Overview Management Reports Financial Statements

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

(` Lakh)

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----- Start of picture text -----

particulars Freehold Buildings plant and Furniture office Vehicles total CWIp
land equipment and Fixtures equipment
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particulars	Freehold land	Buildings	plant and equipment	Furniture and Fixtures	offce equipment	Vehicles	total	CWIp
accumulated depreciation and impairment
Balance at april 01, 2019	-	3,861	37,506	114	709	270	42,460	-
Disposals and Adjustments	-	(285)	1,507	(21)	(432)	(83)	686	-
Depreciation expense	-	944	9,963	35	298	164	11,404	-
Transfer from assets held for sale	-	4	274	-	3	11	292	-
Balance at March 31, 2020	-	4,524	49,250	128	578	362	54,842	-
Disposals and Adjustments	-	(70)	(122)	(5)	6	1	(190)	-
Depreciation and impairment expense	-	2,790	15,153	50	293	124	18,410	-
Transfer from/(to) assets held for sale	-	(1,018)	(9,884)	(8)	(177)	(4)	(11,091)	-
Balance at March 31, 2021	-	6,226	54,397	165	700	483	61,971	-

Carrying amount as at March 31, 2020	5,093	20,306	95,750	236	1,038	344	1,22,767	1,932
Carrying amount as at March 31, 2021	4,185	18,325	79,011	181	864	197	1,02,763	11,230

Note:

Details of assets offered as security are provided in note 18 and 19.
Includes Building on leasehold land: Cost: 915 Lakh (2020 - 915 Lakh) and Accumulated Depreciation: 356 Lakh (2020 - 308 Lakh).
Capital work in progress primarily represents Building, Plant and equipment related work.
Refer note 52 for contractual commitments for acquisition of property, plant and equipment.
Management considers each sugar factory to be a cash generating unit (‘CGU’) and has analysed if there is an indicator of impairment. Based on the assessment certain factories of the company have either been incurring losses for the past several years or non-operating which is an indicator for impairment. Accordingly, the Company has performed a detailed impairment assessment for such factories and based on the assessment performed, as far as the operating factories are concerned, the Company has concluded that no impairment provision is required other than for goodwill relating to a leased factory. And for non-operating factories, wherever the machineries and buildings are not usable, the same has been impaired/charged off and included as exceptional items. Details of impairment are given in note 33.

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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

note 2a - Leases

(i) amounts recognised in the Balance sheet

Carrying amount of right-of-use asset

(` Lakh)

Carrying amount of right-of-use asset		(`Lakh)
particulars Factory(includingancillaryassets)* Building total	as at March 31, 2021	as at March 31, 2020
	5,392	5,873
	127	-
	5,519	5,873
		(`Lakh)
particulars	Factory (including ancillary assets)*	Building
Cost
Balance at april 01, 2019	6,354	-
Balance at March 31, 2020	6,354	-
Additions	-	134
Balance at March 31, 2021	6,354	134
		(`Lakh)
particulars	Factory (including ancillary assets)*	Building
accumulated depreciation
Balance at april 01, 2019	-	-
Depreciation expenses	481	-
Balance at March 31, 2020	481	-
Depreciation expenses	481	7
Balance at March 31, 2021	962	7

*The Company has taken a factory on lease including the building and plant and machinery thereon. The Company pays a consolidated rental and accordingly, the consolidated asset is presented. The useful life of the building and plant and machinery is beyond the lease period, hence the entire asset is depreciated over the lease period.

Carrying amount of lease liability

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
Current 1,101 1,062
Non-current 3,810 4,408
total 4,911 5,470
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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

(ii) amounts recognised in the statement of profit & loss

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
Interest expenses (included in finance costs) 466 515
Expenses relating to short-term leases (included in other expenses)^ 179 367
Expenses relating to leases of low-value assets that are not shown above as 8 5
short-term leases (included in other expenses) [^]
total 653 887
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*Refer note 30 - Finance cost

^Refer note 32 - Other expenses

(iii) extension and termination options

Extension and termination options are included in leases of the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company’s operations.

note 3 - Investment property

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(Lakh) particulars as at as at March 31, 2021 March 31, 2020 Carrying amounts of: Completed investment properties 3,350 2,489 total 3,350 2,489 ( Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Cost
Balance at beginning of the year 2,608 2,374
Transfer from property, plant & equipment 885 234
Balance at end of the year 3,493 2,608
(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
accumulated depreciation and impairment
Balance at beginning of the year 119 103
Transfer from property, plant & equipment - (8)
Depreciation expense 24 24
Balance at end of the year 143 119
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Includes Building on leasehold land: Cost: 612 Lakh (2020 - 612 Lakh) and Accumulated Depreciation: 82 Lakh (2020 - 69 Lakh).
All of the Company’s investment properties are held under freehold interests.

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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

3.1 Fair value of the Company’s investment properties

The following table gives details of the fair value of the Company’s investment properties as at March 31, 2021 and March 31, 2020:

March 31, 2020:
		(`Lakh)
particulars	as at March 31, 2021	as at March 31, 2020
i. Land and Buildings in tamilnadu	33,406	31,515

The fair value of the Company’s investment properties as at March 31, 2021 and March 31, 2020 have been arrived at on the basis of a valuation carried out by M/s.Value Assessors & Surveyors Private Limited, independent valuers not related to the Company. M/s.Value Assessors & Surveyors Private Limited are registered with the authority which governs the valuers in India, and they have appropriate qualifications and relevant experience in the valuation of properties in the relevant locations. Fair value was derived using the market comparable approach based on recent market/government guideline prices without any significant adjustments being made to the market observable data.

In estimating the fair value of the properties, the highest and best use of the properties is their current use.

For rental income earned and direct operation expenses incurred in connection with investment property refer note 25 and note 37.1 respectively.

note 3a

(i) Impairment tests for goodwill:

The Company has assessed the Goodwill for impairment and based on the assessment, Goodwill of ` 1,452 Lakh has been impaired. The Goodwill represents goodwill accounted on the date of acquisition of erstwhile subsidiary Parrys Sugar Industries Limited as reflected in the Consolidated Financial Statements of the Company for the year ended March 31, 2015 which was subsequently merged with the Company (which was a common control entity).

The Company has determined each factory location as a cash generating unit (CGU). The entire goodwill is attributable to the Company’s factory at Ramdurg.

(ii) significant estimate: key assumptions used for value-in-use calculations:

The Company tests whether goodwill has suffered any impairment on an annual basis. For the current and previous financial year, the recoverable amount of the CGUs was determined based on value-in-use calculations which require the use of assumptions. The factory at Ramdurg is operated on a leased property. The lease period expires on September 2032 and the arrangement doesn’t contain a renewal clause. Therefore, cash flow projections based on financial budgets approved by management covering a eleven-year and six months period upto the end of lease term.

the following table sets out the key assumptions for those ramdurg CGu to which entire goodwill is allocated are as follows:

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description assumption approach used to determining values
Sales volume (% annual 16.00% increase in the next financial Based on management’s expectations of
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description Sales volume (% annual	assumption 16.00% increase in the next fnancial	approach used to determiningvalues Based on management’s expectations of
growth rate)	year and a 9.00% increase in the second fnancial year. Thereafter, sales volume is expected to varyat a meagre rate	market development and past performance.
Sales price (% annual growth rate)	1.00% increase in the next fnancial year. Thereafter, at a rate of 2.00 - 3.00%.	Based on current industry trends, minimum support price announced by government and includinglong-term infation forecasts
Post-tax discount rate	11.59%	Refect specifc risks relating to the business andgeographyin which theyoperate.

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Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

(iii) significant estimate

Considering that the goodwill in this case has a limited life as it is relating to leased factory and the minimal headroom available, the Company has impaired the Goodwill of ` 1,452 Lakh.

note 4 - Intangible assets and intangible assets under development

(` Lakh)

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----- Start of picture text -----

particulars as at as at
March 31, 2021 March 31, 2020
Carrying amounts of:
Software and Licenses 213 274
total 213 274
Intangible assets under development - -
(` Lakh)
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----- Start of picture text -----

particulars as at as at
March 31, 2021 March 31, 2020
Cost
Balance at beginning of the year 452 1,240
Adjustments - (997)
Additions 1 209
Balance at end of the year 453 452
(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
accumulated depreciation and impairment
Balance at beginning of the year 178 1,145
Adjustments - (1,014)
Amortisation expense 62 47
Balance at end of the year 240 178
Carrying amount at end of the year 213 274
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note 5a

Financial assets: Investments in subsidiaries

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
I. Quoted Investments
(a) Investments in Equity Instruments at Cost
16,54,55,580 (2020 - 17,71,55,580) shares of 1 each fully paid up in 11,198 11,593 Coromandel International Limited (refer note 33) total Quoted Investments 11,198 11,593 Market Value of quoted investments 12,81,536 9,35,671 II. unquoted Investments (a) Investments in Equity Instruments at Cost 15,00,000 (2020 - 15,00,000) shares of 10 each fully paid up in Parrys 150 150
Sugar Limited
50,00,000 (2020 - 50,00,000) shares of 10 each fully paid up in Parry 500 500 Infrastructure Company Private Limited 1,027 (2020 - 1,027) shares of $10 each fully paid up in US Nutraceuticals Inc. 8,179 8,179 34,55,92,105 (2020 - 34,55,92,105) shares of 10 each fully paid up in 58,371 58,371
Parry Sugars Refinery India Private Limited (refer note 5.2)
6,838 (2020 - 6,838) equity shares fully paid up Alimtec S.A. 2,640 2,640
9,500 (2020 - 9,500) shares of 10 each fully paid up in Parry Agrochem * * Exports Limited 1 (2020 - 1) share of €1 fully paid up in E.I.D. Parry Europe B.V. * * 18,00,150 (2020 - 18,00,150) shares of 10 each fully paid up in Parrys 192 192
Investments Limited
total unquoted Investments 70,032 70,032
total non-current Investments 81,230 81,625
Financial assets: Investments in Joint Ventures
(Lakh) particulars as at as at March 31, 2021 March 31, 2020 I. unquoted Investments a. Investments in Equity Instruments at Cost 1,07,00,000 (2020 - 1,07,00,000) shares of 10 each fully paid up in 1,070 1,070
Alagavista Greentech Private Limited
total Quoted Investments 1,070 1,070
Aggregate amount of impairment in value of investments - -
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note 5B

Financial assets: Investments in Joint Ventures

less than ` 1 Lakh
5.1 The details of subsidiaries are given in the Note 51 - Related Party.
5.2 The carrying value of investments is less than the net worth of the subsidiary which is an indicator of potential impairment. The Company has performed a detailed impairment assessment and based on the assessment performed no impairment is deemed necessary.

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Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

note 6 - other Investments

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
I. Quoted Investments
(a) Investments in Equity Instruments at FVTOCI
82,440 (2020 - 82,440) shares of 10 each fully paid up in State Bank 300 162 of India 1,965 (2020 - 1,965) shares of 2 each fully paid up in Cholamandalam 11 3
Investment and Finance Company Limited
42,938 (2020 - 42,938) shares of 10 each fully paid up in Coromandel 12 5 Engineering Company Limited 2,000 (2020 - 2,000) shares of 1 each fully paid up in Carborundum 10 4
Universal Limited
2,50,000 (2020 - 2,50,000) shares of 2 each fully paid up in Metkore - 1 Alloys & Industries Limited total and aggregate market value of quoted investments 333 175 II. unquoted Investments (a) Investments in Equity Instruments at FVTOCI 100 (2020 - 100) shares of 10 each fully paid up in Travancore Sugars *
and Chemicals Limited
23,600 (2020 - 23,600) shares of 10 each fully paid up in Kartik 25 23 Investments Trust Limited 18,270 (2020 - 18,270) shares of 100 each fully paid up Murugappa 67 63
Management Services Limited
125 (2020 - 125) shares of 25 pence each fully paid up in Hawker Siddley *
Group Limted
10,000 (2020 - 10,000) shares of 1 each fully paid up in Indian Dairy * * Enterpreneurs Agricultural Company Limited 266 (2020 - 266) shares of 10 each fully paid up in Chennai Wellingdon *
Corporate Foundation
12,74,400 (2020 - 12,74,400) shares of 10 each fully paid up in Indian 18,239 16,937 Potash Limited 1,00,000 (2020 - 1,00,000) shares of 10 each fully paid up in Bio Tech 54 52
Consortium (India) Limited
2 (2020 - 2) shares of 10 each fully paid up in Murugappa Morgan * * Thermal Ceramics Limited 20 (2020 - 20) shares of 100 each fully paid up in Kullittalai Cane Farms *
Private Limited
total unquoted Investments 18,385 17,075
total other Investments 18,718 17,250
Aggregate amount of impairment in value of investments - -
Current - -
non-current 18,718 17,250
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less than ` 1 Lakh

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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

note 7 - trade receivables

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(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Unsecured, considered good 20,063 16,178
Doubtful 4,125 2,654
Allowance for doubtful debts (expected credit loss allowance) (4,125) (2,654)
total 20,063 16,178
Current 20,063 16,178
non-current - -
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Debts due by private companies in which the Company’s directors are directors is 449 Lakh (2020 - 290 Lakh)

The trade receivables of the Company do not contain a significant financing component (also refer note 49.5) and accordingly, the Company has adopted the simplified approach under Ind AS 109 for recognition of impairment losses on trade receivables. Consequently, the disclosure of trade receivables into “Trade receivables which have significant increase in credit risk” and “Trade receivables which are credit impaired” has not been given since it is not relevant to the Company.

The Company uses other publicly available financial information and its own trading records before accepting any customer. The Company’s exposure is continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

Refer Note No 51.2 for receivable from related parties.

Of the trade receivables balance, customer balances which represent more than 5% of the total balance of trade receivable are given below:

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(` Lakh)
Customer as at as at
March 31, 2021 March 31, 2020
Mondelez India Foods Limited 4,495 2,987
Hubli Electricity Supply Company Limited 1,575 1,186
TNEB Limited 1,356 1,356
US Nutraceuticals Inc. 1,174 226
Tamil Nadu Newsprint and Papers Limited 1,191 970
AP TRANCO 758 1,174
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note 8 - Loans

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
Loans receivables considered good - unsecured
i) Inter corporate loans (refer note 51.2. - for related party information) 40,000 -
ii) Others 800 1,200
40,800 1,200
Current 10,400 400
non-current 30,400 800
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148

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Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

note 9 - other financial assets

(` Lakh)

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----- Start of picture text -----

particulars non-current Current
as at as at as at as at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
at amortised Cost
(a) Security Deposits 453 387 211 225
(b) Interest receivable - - 1,688 1,847
(c) Insurance claims - - 24 109
(d) Advance recoverable in cash:
(i) Unsecured and Considered Good 29 - 45 224
(ii) Considered Doubtful - - 266 266
Less: Provision for Doubtful Advances - - (266) (266)
(e) Government subsidy receivable - - 12,920 14,857
(f) Other receivable - - 368 1,035
at Fair Value
(a) Fair value of Foreign exchange - - 226 52
Forwards
total 482 387 15,482 18,349
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*Includes interest subsidy receivable of 1,422 Lakh (March 31, 2020 - 1,799 Lakh)

note 10 - other assets

(` Lakh)

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----- Start of picture text -----

particulars non-current Current
as at as at as at as at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
(a) Security Deposit 271 124 - 8
(b) Capital Advances 23 23 664 -
(c) Balance with Government authorities 362 356 3,643 3,186
(d) Advance recoverable in kind or for
value to be received
(i) Unsecured and Considered Good 778 1,126 5,874 16,372
(ii) Considered Doubtful 2,017 1,871 - -
Less: Provision for Doubtful Advances (2,017) (1,871) - -
total 1,434 1,629 10,181 19,566
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Represents majorly advances paid to sugarcane farmers, harvesters and transporters

149

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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

note 11 - Inventories

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
(At lower of cost and net realisable value)
(a) Raw materials 2,151 2,847
(b) Work-in-process 3,989 1,657
(c) Finished goods 80,596 82,042
(d) Stock-in-trade (goods acquired for trading) 1,694 -
(e) Stores and spares 3,281 3,213
(f) By products 3,995 5,922
total 95,706 95,681
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The cost of inventories recognised as an expense during the year in respect of continuing operations was 1,38,718 Lakh (March 31, 2020 - 1,27,605 Lakh).

The cost of inventories recognised as an expense includes 82 Lakh (2019-20 - 415 Lakh) in respect of write-downs of inventory to net realisable value, and has been reduced by Nil (2019-20 - 221 Lakh) in respect of reversal of such write downs.

Finished goods includes inventories worth 7,280 Lakh (2019-20 - Nil) carried at fair value less cost to sell.

Finished goods includes goods in transit to the extent of 447 Lakh (2019-20 - 112 Lakh).

The mode of valuation of inventories has been stated in note 1.15.

note 12 - Cash and cash equivalents

For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand and in banks, cheques and drafts on hand. Cash and cash equivalents at the end of the reporting period as shown in the statement of cash flows can be reconciled to the related items in the balance sheet as follows:

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(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
(a) Balances with banks
(i) In Current account 826 1,053
(ii) In Deposit account (maturing within 3 months) 512 -
(b) Cash on hand - 1
total 1,338 1,054
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note 13 - other bank balances

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
(a) Balances with banks in earmarked accounts
- In Unpaid Dividend account 163 167
- In Deposit account (maturing more than 3 months) 1,500 -
- In Margin Money accounts towards Bank Guarantee 28 279
total 1,691 446
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Corporate Overview Management Reports Financial Statements

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

note 14 - assets classified as held for sale

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(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
(i) Asset associated with Puducherry factory held for sale (refer note a) 2,960 2,984
(ii) Asset associated with factory held for sale (refer note b) 3,500 -
(iii) Investment in Coromandel International Limited (refer note c) - 396
total 6,460 3,380
----- End of picture text -----

a. The Board of Directors of the Company in their meeting held on February 01, 2019 have approved the sale of property, plant and equipment of the Puducherry factory of the Company in next 12 months. The Company has identified potential buyers and is in the process of seeking approvals before concerned authorities. Due to lockdown, there is a delay in obtaining necessary compliance before executing the sale transaction. The directors of the Company expect that the fair value less cost to sell will be higher than the aggregate carrying amount of the related assets.Therefore, no impairment loss were recognised on reclassification of the assets as held for sale as at March 31, 2021.
b. The Board of Directors of the Company in their meeting held on December 31, 2020 have approved the sale of property, plant and equipment of the Pettavaithalai factory of the Company in next 12 months. The Company has identified potential buyers and is in the process of seeking approvals before concerned authorities. Since the carrying value of the assets exceed the fair value less cost to sell, an impairment loss of ` 5,064 Lakh was recognised on reclassification of the assets as held for sale as at March 31, 2021.
c. The Board of Directors of the Company in their meeting held on March 24, 2020 have approved the sale of 2% stake in Coromandel International Limited in next 12 months.The shares have subsequently been sold in the current year.

note 15 - Income tax assets (net)

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(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Tax refund receivable 9,727 6,996
total 9,727 6,996
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note 16 - equity share capital

(` Lakh)

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----- Start of picture text -----

particulars as at as at
March 31, 2021 March 31, 2020
autHorIsed
Equity Shares:
2,34,40,00,000 Equity Shares of 1 each (2020 - 2,34,40,00,000) 23,440 23,440 Preference Shares: 2,03,10,000 Reedemable Preference shares of 100 each (2020 - 2,03,10,000) 20,310 20,310
Issued, suBsCrIBed and FuLLY paId up
17,71,02,391 Equity Shares of ` 1 each (2020 - 17,69,94,981) 1,771 1,770
total 1,771 1,770
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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

16.1 reconciliation of number of shares and amount outstanding at the beginning and at the end of the reporting period:

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particulars 2020-21 2019-20
no of shares Lakh no of shares Lakh
equity shares of ` 1 each fully paid up
At the beginning of the period 17,69,94,981 1,770 17,69,94,981 1,770
Allotment of shares on exercise of 1,07,410 1 - -
Employee Stock Option (refer note 50)
At the end of the period 17,71,02,391 1,771 17,69,94,981 1,770
16.2 details of shares held by each shareholder holding more than 5 percent of equity shares in the company:
particulars no of shares held as at
March 31, 2021 March 31, 2020
nos. % nos. %
Ambadi Investment Ltd 6,80,58,444 38.43 6,80,58,444 38.45
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16.2 details of shares held by each shareholder holding more than 5 percent of equity shares in the company:

16.3 terms attached to equity shares:

The Company has one class of equity share having a par value of ` 1 per share. Each holder of equity share is entitled to one vote per share. The dividend when proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General meeting. Repayment of capital on liquidation will be in proportion to the number of equity shares held.

Share options granted under the Company’s employee share option plan carry no rights to dividends and no voting rights.

16.4 details of shares issued for consideration other than cash during the period of five years immediately preceding the reporting date:

During the year 2017-18, 10,74,861 equity shares of 1 each fully paid up were alloted to shareholders of Parrys Sugar Industries Limited (PSIL) other than the Company in the proportion of 2 equity shares of 1 each in the Company for every 13 equity shares of ` 10 each held in the PSIL pursuant to the Scheme of Arrangement between PSIL and the Company.

16.5 refer note 50 for the shares reserved for issue under employee stock option plans.

note 17 - other equity

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
Capital redemption reserve 4,288 4,288
Capital reserve on amalgamation 688 688
Securities premium reserve 6,576 6,174
Debenture redemption reserve - -
Capital reserve (as per Scheme of Arrangement of Demerger) 5,718 5,718
General reserve 88,681 88,680
Share options outstanding reserve 505 471
Reserve for equity instruments through other comprehensive income 14,346 13,188
Retained earnings 1,36,836 50,398
total 2,57,638 1,69,605
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Corporate Overview Management Reports Financial Statements

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

reserVes and surpLus:

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(` Lakh)
particulars Year ended Year ended
March 31, 2021 March 31, 2020
(a) Capital redemption reserve 4,288 4,288
The capital redemption reserve is created out of the statutory requirement to create such reserve on buyback of
shares. These are not available for distribution of dividend and will not be reclassified subsequently to statement of
profit and loss.
(b) Capital reserve on amalgamation 688 688
Capital reserve on amalgamation is created pursuant to Scheme of Amalgamation with Parrys Sugar Industries Limited.
(c) securities premium reserve
Opening balance 6,174 6,174
Add: Addition during the period 402 -
Closing balance 6,576 6,174
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the
provisions of the act.
(d) debenture redemption reserve
Opening balance - 833
Less: Utilised during the period - (833)
Closing balance - -
Debenture redemption reserve is created as per the statutory requirements to maintain funds to repay the debenture
liability. These will be subsequently transferred to Retained Earnings on payment of the debenture liability.
(e) Capital reserve (as per scheme of arrangement of demerger) 5,718 5,718
(f) General reserve
Opening balance 88,680 88,680
Add: Transfer from share option outstanding reserve on lapse of options 1 -
Closing balance 88,681 88,680
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.
As the general reserve is created by a transfer from one component of equity to another and is not an item of other
comprehensive income, items included in the general reserve will not be reclassified subsequently to statement of
profit and loss except to the extent permitted as per Companies Act, 2013 and rules made thereunder.
(g) share options outstanding reserve
Opening balance 471 345
Add: Addition during the period 140 126
Less: Utilised for issuing ESOP (105) -
Less: Transfer to general reseve on lapse of options (1) -
Closing balance 505 471
The above reserve relates to share options granted by the Company to its employees under its employee share option
plan. Further information about share based payments to employees is set out in note 50.
(h) reserve for equity instruments through other comprehensive income
Opening Balance 13,188 13,334
Other comprehensive income for the year net of income tax 1,158 (146)
Closing balance 14,346 13,188
This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at
fair value through other comprehensive income, net of amounts reclassified to retained earnings when those assets
have been disposed off.
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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

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(` Lakh)
particulars Year ended Year ended
March 31, 2021 March 31, 2020
(i) retained earnings
Opening balance 50,398 49,520
Add: Transfer from Debenture Redemption Reserve - 833
Profit for the year 86,486 183
Remeasurement of defined benefit plans (net of tax) (48) (138)
Closing Balance 1,36,836 50,398
The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on
the standalone Ind AS financial statements of the Company and also considering the requirements of the Companies
Act, 2013. Thus, the amounts reported above are not distributable in entirety.
total other equity 2,57,638 1,69,605
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note 18 - Long term borrowings

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(` Lakh)
particulars non-current portion Current maturities
as at as at as at as at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
unsecured - at amortised cost
i). Deposits 1,866 1,729 - -
ii). Purchase Tax Deferement Loan 161 241 - -
sub total 2,027 1,970 - -
secured - at amortised cost
i). Bonds/Debentures - 19,981 10,000 -
ii). Term Loans
- from banks 5,915 14,891 2,035 11,299
- from Government of India - Sugar - 4,158 - 1,968
Development Fund
sub total 5,915 39,030 12,035 13,267
total 7,942 41,000 12,035 13,267
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Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

(` Lakh)

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particulars March March rate of security terms of
31, 31, interest repayment
2021 2020
a. 8.00% Secured, Redeemable - 9,986 8.00% Secured by way of first Repaid during the
Non-convertible debentures mortgage/charge on various year.
2019-20 series. properties of the company
and assets coverage of 1.25
times of the aggregate face
value of NCD’s outstanding
at all times.
b. 8.25% Secured, Redeemable 10,000 9,995 8.25% Secured by way of first pari Redeemable in
Non-convertible debentures passu charge on the movable April 2021.
2018-19 series. and/or immovable Fixed
Assets of the Pudukottai
unit with minimum fixed
asset coverage of 1.25 time
of the aggregate face value
of NCDs outstanding at all
times.
c. State Bank of India - 5,379 1Year Secured by pari passu Repaid during the
MCLR + first charge of fixed assets year.
0.15% along with other term loan
lenders, including mortage
over factories land and
bulding (both present &
future) of the Company.
d. d. State Bank of India (CAPEX - 4,994 1Year Secured by pari passu Repaid during the
Term Loan) MCLR + first charge of fixed assets year.
0.15% along with other term loan
lenders, including mortage
over factories land and
bulding (both present &
future) of the Company.
e. State Bank of India - Sankili 1,549 1,631 1Year Secured by pari passu One year
Ethanol Term Loan 17.33 Cr MCLR + first charge of fixed assets moratorium
0.15% along with other term loan of repayment
lenders, including mortage Repayable in 48
over factories land and equal Monthly
bulding (both present & installments.
future) of the Company.
f. HDFC Bank - 6,666 1Year Secured by pari passu Repaid during the
MCLR + first charge of fixed assets year.
.05% along with other term loan
lenders.
g. HDFC Bank - Soft Loan 2019 - 7,420 6M Secured by pari passu first Repaid during the
MCLR charge of movable fixed year.
assets along with other
term loan lenders.
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155

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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

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----- Start of picture text -----

particulars March March rate of security terms of
31, 31, interest repayment
2021 2020
h. HDFC Bank - Bagalkot EBP ` 6,401 100 6.60% Secured by pari passu first One year
68.12 Cr as on charge of movable fixed moratorium
date assets along with other of repayment.
linked term loan lenders. Repayable in
to to 4 equal annual
3M installments.
repo
rate,
3 M
monthly
reset
i. Sugar Development Fund
Loans
i. Nellikuppam - Expansion of - 432 4% Secured by way of a bank Repaid during the
Sugar and Co-generation guarantee from State Bank year.
Units of India.
ii. Nellikuppam - Expansion of - 532 4.25% Secured by way of a bank Repaid during the
Sugar and Co-generation guarantee from State Bank year.
Units of India.
iii. Haliyal Modernisation and - 103 4.25% Secured by way of a bank Repaid during the
capacity expansion guarantee from Indusind year.
Bank Ltd.
iv. Haliyal Cane Development - 113 7.00% Secured by way of a bank Repaid during the
guarantee from Indusind year.
Bank Ltd.
v. Haliyal Modernisation and - 1,904 7.00% Secured by way of a bank Repaid during the
Expansion guarantee from Indusind year.
Bank Ltd.
vi. Sankili - Modernisation and - 99 6.75% Secured by way of a bank Repaid during the
Expansion of sugar unit guarantee from Indusind year.
and Cane Development Bank Ltd.
Loan Tranche I
vii.Sankili - Modernisation and - 264 4.25% Secured by way of a bank Repaid during the
Expansion of sugar unit guarantee from Indusind year.
and Cane Development Bank Ltd.
Loan Tranche II
viii. Bagalkot - Co Generation - 61 6.25% Secured by way of a bank Repaid during the
Loan guarantee. year.
ix. Bagalkot - Modernisation Loan - 592 7.00% Secured by way of a bank Repaid during the
guarantee. year.
x.Ramdurg - Loan for Expansion - 403 8.25% Secured by way of a bank Repaid during the
unit I guarantee. year.
xi.Ramdurg - Loan for Expansion - 700 7.00% Secured by way of a bank Repaid during the
unit II guarantee. year.
xii.Ramdurg - Loan for Expansion - 823 7.00% Secured by way of a bank Repaid during the
unit III guarantee. year.
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156

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Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

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particulars March March rate of security terms of
31, 31, interest repayment
2021 2020
xiii.Ramdurg - Cane Development - 35 6.75% Secured by way of a bank Repaid during the
Loan I guarantee. year.
xiv.Ramdurg - Cane Development - 65 7.00% Secured by way of a bank Repaid during the
Loan II guarantee. year.
j. TNPL Deposit 1,866 1,729 Interest Unsecured. Repayable in
Free December 2024.
k. Purchase Tax deferment Loan:
i. Purchase Tax deferment - 80 Interest Unsecured. Repayable on
Loan (2014-15) Free demand.
ii. Purchase Tax deferment 161 161 Interest Unsecured. Repayable in April
Loan (2015-16) Free 2022.
total 19,977 54,267
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Breach of Loan agreement

There are no breach of loan agreement and loan covenants.

note 19 - short term borrowings

(` Lakh)

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----- Start of picture text -----

particulars as at as at
March 31, 2021 March 31, 2020
unsecured - at amortised cost
a. Others
- Loan repayable on demand from banks (refer note a) 5,504 17,503
- Commercial Paper (refer b below) 9,924 -
secured - at amortised cost
a. Loan repayable on demand
- from banks (refer note c below) 189 24,295
b. Others
- Commercial Paper (refer d below) 19,842 7,434
total 35,459 49,232
----- End of picture text -----

a. Unsecured Loans: ` 5,500 Lakh WCDL from RBL Bank at the rate of 4%.
b. ` 10,000 Lakh Commercial Paper subscribed by Kotak Mahindra Mutual Fund with a tenor of 3 months at coupon rate of 3.72%.
c. Loan repayable on demand: ` 189 Lakh on account of Purchase Tax Deferment loan
d. ` 20,000 Lakh Commercial Paper subscribed by SBI with a tenor of 3 months at coupon rate of 3.72% which is carved from SBI Working Capital limit.

157

Annual Report 2020-21

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

net debt reconciliation*

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----- Start of picture text -----

(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Opening net debt 1,06,229 89,463
Proceeds from long term borrowings 6,403 19,104
Repayment of long term borrowings (40,750) (10,560)
Net increase/(decrease) in working capital borrowing (13,853) 11,601
Interest expenses (excluding interest on lease liability) 8,806 13,052
Interest reimbursement by the government (602) (2,037)
Interest paid (net of subsidy received) (11,444) (13,410)
Increase in cash equivalents (284) (984)
Closing net debt (refer note a) 54,505 1,06,229
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Reconciliation excludes cane bills due payable to bank (refer note 21) and lease liability (refer note 2A)

note a: net debt calculation

(` Lakh)

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----- Start of picture text -----

particulars as at as at
March 31, 2021 March 31, 2020
Non-current borrowings (refer note 18) 7,942 41,000
Short term borrowings (refer note 19) 35,459 49,232
Current maturities of long-term debt (refer note 18) 12,035 13,267
Interest accrued but not due on borrowings & acceptance (refer note 21) 1,829 5,583
Interest receivable (refer note 9) (1,422) (1,799)
Cash and cash equivalents (refer note 12) (1,338) (1,054)
net debt 54,505 1,06,229
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note 20 - trade payables

(` Lakh)

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----- Start of picture text -----

particulars Current
as at as at
March 31, 2021 March 31, 2020
Trade payables 27,896 41,002
Of the above
(i) Total outstanding dues of micro enterprises and small enterprises 303 180
(ii) Total outstanding dues of creditors other than micro enterprises and small 27,593 40,822
enterprises
Employee related payables 2,620 2,625
total 30,516 43,627
----- End of picture text -----*

*Dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 which is on the basis of such parties having been identified by the management and relied upon by the auditors.

158

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Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

note 21 - other financial liabilities

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(` Lakh)
particulars Current
as at as at
March 31, 2021 March 31, 2020
at amortised Cost
(a) Current maturities of long-term debt 12,035 13,267
(b) Interest accrued but not due on borrowings & acceptance 1,829 5,583
(c) Unclaimed dividends (refer note. 21.1 and 21.2) 163 167
(d) Other Liabilities
- Due to Directors 71 -
- Cane Bill due payable to Banks (refer note 21.3) 51,799 69,802
- Capital Creditors
(i) Total outstanding dues of micro enterprises and small enterprises - -
(ii) Total outstanding dues of capital creditors other than micro enterprises 549 -
and small enterprises
- Other Miscellaneous liabilities 3,972 1,258
Includes Retention money and Investment money deposits.
at Fair Value
(a) Fair value of Forwards - 760
total 70,418 90,837
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21.1 These amounts represent warrants issued to the Shareholders which remained unpresented as on March 31, 2021 and March 31, 2020 respectively.
21.2 During the year, Nil (March 31, 2020 - 203 Lakh) was transferred to the Investor Education and Protection Fund and there are no amounts due to be tranferred to Investor Education and Protection Fund.

21.3 Represents amounts payable to the bank for payments made by the bank to farmers for cane supplied to the Company.

note 22 - other liabilities

(` Lakh)

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----- Start of picture text -----

particulars non-current Current
as at as at as at as at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
a. Statutory remittances (Contributions to - - 497 277
PF and ESIC, Withholding Taxes and
Indirect Taxes)
b. Advances and deposits from customers - - 3,091 1,869
and others
c. Deferred revenue arising from interest 483 661 151 137
free deposit and government grants
total 483 661 3,739 2,283
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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

note 23 - provisions

(` Lakh)

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----- Start of picture text -----

particulars non-current Current
as at as at as at as at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Provision for compensated absences 719 862 656 555
Gratuity Payable - - 687 993
total 719 862 1,343 1,548
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*The provision for compensated absences includes annual leave and vested long service leave entitlements accrued and compensation claims made by employees.

note 24 - revenue from operations

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
(a) Sales of Products 1,90,149 1,76,577
(b) Other operating revenues
- Government subsidy (refer note 24.2) 11,635 9,144
- Sundry Income 278 1,248
- Scrap sales 363 519
total 2,02,425 1,87,488
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24.1 There are no critical judgements involved in the determination of the amount and timing of revenue. For details of disaggregated revenue refer Note 46.

24.2 The Company recognises income based on the export obligation fulfilled. For the year ended March 31, 2021, the export obligation is based on the allocation of 74,359 MT made by the Government.The unfulfilled obligation as at March 31, 2021 based on the allocated quantity amounts to 33,322 MT. The Company has time till September 30, 2021 to fulfill the above mentioned obligation.

For the year ended March 31, 2020, the export obligation is based on the allocation of 83,484 MT made by the Government (including additional quota of 11,115 MT allocated to other sugar mills undertaken by the Company).The unfulfilled obligation as at March 31, 2020 based on the allocated quantity was 29,728 MT. The obligation has been fulfilled.

24.3 Reconciliation of revenue recognised with contract price

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----- Start of picture text -----

(` Lakh)
particulars Year ended Year ended
March 31, 2021 March 31, 2020
Contract price 2,02,551 1,87,589
Adjustments for:
Rebates and discounts (126) (101)
revenue from operations 2,02,425 1,87,488
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160

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Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

note 25 - other Income

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----- Start of picture text -----

(` Lakh)
particulars Year ended Year ended
March 31, 2021 March 31, 2020
(a) Interest income earned on financial assets and others that are not
designated as fair value through profit or loss
On bank deposits (at amortised cost) 159 58
On loans and advances to subsidiaries & others (at amortised cost) 299 98
On others asset (at amortised cost) 278 736 391 547
(b) Dividend Income
From equity investments designated
as at cost 30,484 6,200
as at FVTOCI 32 30,516 19 6,219
(c) Other gains or losses
- Profit on sale of fixed assets (net) 1,227 363
- Net gain arising on financial assets designated as at FVTPL 105 169
- Net gain/(loss) on foreign currency transaction and translation 827 2,159 (822) (290)
(d) Other non-operating income
- Operating lease rental from investment property 1,840 1,945
- Services 652 771
- Insurance claim received 271 4
- Government grant Income (refer note 25.1) 602 2,037
- Commission 1,474 1,962
- Liabilities/provisions no longer required written back 235 190
- Others 55 5,129 684 7,593
total 38,540 14,069
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25.1 The Government grant income represents interest benefit on below market interest rate loans and interest subvention income (Pursuant to Notification no. 1(6)/2018-SP-I).

note 26 - Cost of material consumed

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----- Start of picture text -----

(` Lakh)
particulars Year ended Year ended
March 31, 2021 March 31, 2020
(a) Sugarcane 1,21,511 1,08,637
(b) Others 15,552 17,409
total 1,37,063 1,26,046
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Includes 447 Lakh related to material in transit for the year ended March 31, 2021 (March 31, 2020 - 112 Lakh).

note 27 - purchases of stock-in-trade

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----- Start of picture text -----

(` Lakh)
particulars Year ended Year ended
March 31, 2021 March 31, 2020
(a) Sugar 2,111 120
(b) Nutra Products 197 231
total 2,308 351
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161

Annual Report 2020-21

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

note 28 - Changes in inventories of finished goods, work-in-progress, by products and stock in trade

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
opening stock:
Work-in-progress 1,657 1,809
Finished goods (including by-products) 87,964 89,020
Stock-in-trade - 89,621 - 90,829
Closing stock:
Work-in-progress 3,989 1,657
Finished goods 84,591 87,964
Stock-in-trade 1,694 90,274 - 89,621
decrease in stocks (653) 1,208
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note 29 - employee benefit expense

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
(a) Salaries, wages and bonus 11,522 12,931
(b) Contribution to Provident and other Funds (refer note 47) 1,184 1,211
(c) Workmen and staff welfare expenses 904 1,693
(d) Share-based payments to employees (refer note 50) 140 126
total 13,750 15,961
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The Company has evaluated the impact of the recent Supreme Court Judgment in case of “Vivekananda Vidyamandir And Others Vs The Regional Provident Fund Commissioner (II) West Bengal” and the related circular (Circular No. C-I/1(33)2019/Vivekananda Vidya Mandir/284) dated March 20, 2019 issued by the Employees’ Provident Fund Organisation in relation to non-exclusion of certain allowances from the definition of ”basic wages” of the relevant employees for the purposes of determining contribution to provident fund under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. In this regard, appropiate provision has been made in the Financial Statements.

note 30 - Finance cost

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(` Lakh)
particulars Year ended Year ended
March 31, 2021 March 31, 2020
i) Interest costs;
(a) Debentures 1,588 981
(b) Loans including cane bill due to banks 6,914 11,882
(ii) Lease interest cost (refer note 2A) 466 515
(iii) Other borrowing costs 168 64
(iv) Unwinding of discounts on provisions 136 124
total 9,272 13,566
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30.1. The weighted average capitalisation rate on funds borrowed generally is 5.75 % per annum (2019-20 - 6.05 % per annum)

162

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

note 31 - depreciation and amortisation expense

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Depreciation/amortisation on
a. Property, plant and equipment 11,425 11,404
b. Right-of-use asset 488 481
c. Investment property 24 24
d. Intangible assets 62 47
total 11,999 11,956
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note 32 - other expenses

(` Lakh)

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particulars Year ended Year ended
March 31, 2021 March 31, 2020
(a) Consumption of stores, spares and consumables 2,034 2,107
(b) Power and fuel 4,740 4,841
(c) Rent (includes one-time hire charges) 187 384
(d) Repairs and maintenance (refer note 38)
- Buildings 191 248
- Plant and machinery 3,349 3,874
- Others 4,378 7,918 4,265 8,387
(e) Insurance 842 691
(f) Rates and taxes 1,089 993
(g) Packing, despatching and freight 7,991 7,919
(h) Commission to selling agents 191 224
(i) Auditors' remuneration (refer note 35) 53 73
(j) Directors' fees and commission (refer note 39.2) 117 28
(k) Sales promotion and publicity 813 1,147
(l) Professional charges 2,367 3,091
(m) Provision for doubtful debts and advances 1,617 670
(n) Bad debts/advances written off ** 87 617
Less: Transfer from provision - 87 (571) 46
(o) Cane development expenditure 421 776
(p) General manufacturing, selling and administration expenses 2,312 3,007
(q) Corporate Social Responsibility expenditure (refer note 34) 125 89
total 32,904 34,473
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Net of freight subsidy pursuant to Notification no.1(14)/2018-S.P. - I dated October 05, 2018 amounting to Nil for the year ended March 31, 2021 (March 31, 2020 - 656 Lakh).

** Includes bad debt/provision for doubtful debts pertaining to trade receivables amounting to 1,471 Lakh for the year ended March 31, 2021 (March 31, 2020 - 638 Lakh).

163

Annual Report 2020-21

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

33 exceptional Items

Exceptional items for the year ended March 31, 2021 include the following:
a. 36,281 Lakh gain on sale of 58,50,000 number of equity shares representing 2% stake in its subsidiary, Coromandel International Limited at 629.19 per share aggregating to a value of ` 36,676 Lakh in the quarter ended June 30, 2020.
b. 46,444 Lakh gain on sale of 58,50,000 number of equity shares representing 2% stake in its subsidiary, Coromandel International Limited at 800.7 aggregating to a value of ` 46,841 Lakh in the quarter ended December 31, 2020.
c. The Board at its meeting held on July 29, 2019 had approved the closure of the sugar unit at Pudukkottai due to non-availability of adequate sugarcane. The Board has approved the closure of the sugar unit at Pettavaithalai due to non-availability of adequate sugarcane as the expectation of the revival of cane cultivation in the areas is low due to a variety of factors. The Company proposed to transfer the assets of the units to its other units/dispose of other assets as it deemed appropriate. Consequently, the Company has charged 9,628 Lakh to the profit and loss account (representing 6,857 Lakh of impairment charges and ` 2,771 Lakh towards dismantling/transportation expenses) for the year ended March 31, 2021.
d. The Company has impaired Goodwill of ` 1,452 Lakh relating to Ramdurg factory based on evaluation of the recoverability, being a leased plant.
e. The Company has impaired ` 128 Lakh relating to fixed assets of its Lycopene facility in Pune.
34 expenditure incurred for Corporate social responsibility

(` Lakh)

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particulars Year ended Year ended
March 31, 2021 March 31, 2020
(i) Amount required to be spent as per Sec 135 of the Companies Act, 2013 Nil Nil
(ii) Actual expenditure incurred for Corporate Social Responsibility 125 89
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35 payment to auditors

(` Lakh)

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particulars Year ended Year ended
March 31, 2021 March 31, 2020
(i) Audit Fees 33 33
(ii) Fees for Limited Reviews and Certificates 19 37
(iii) Reimbursement of out of pocket expenses 1 3
53 73
(Lakh) Lakh) Lakh)
particulars Year ended Year ended
March 31, 2021 March 31, 2020
research and development expenditure incurred 761 389
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36 (Lakh) Lakh) Lakh)

37.1 direct operating expenses arising from Investment property

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Direct operating expenses arising from investment property that generated 641 562
rental income during the year
Direct operating expenses arising from investment property that did not 23 20
generate rental income during the year
total 664 582
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164

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

37.2 Minimum lease receivable on investment properties where Company is a Lessor

37.2	Minimum lease receivable on investment properties where Company is a Lessor	Minimum lease receivable on investment properties where Company is a Lessor
38			(`Lakh)
	particulars	Year ended March 31, 2021	Year ended March 31, 2020
	Within 1year	1,775	1,950
	total	1,775	1,950
			(`Lakh)
	particulars	Year ended March 31, 2021	Year ended March 31, 2020
	repairs and maintenance includingstores and spareparts consumed	2,256	2,594

39.1 Whole time directors remuneration:

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Short-term benefits 164 154
Post-employment benefits 22 22
total 186 176
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Note: Managerial remuneration above does not include gratuity and leave encashment benefit, since the same is computed actuarially for all the employees and the amount attributable to the managerial person cannot be ascertained separately.

The remuneration paid to the Managing Director is in accordance with the provisions of Part II, Section II of Schedule V of the Companies Act, 2013.

39.2 non whole time directors remuneration:

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Commission to non whole time directors 71 -
Directors’ sitting fees 46 28
total 117 28
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40 Impact of Covid 19 pandemic

The spread of COVID 19 has severely impacted businesses around the globe. Due to outbreak of coronavirus global pandemic, Government of India, implemented a pan India lockdown from March 2020 with certain relaxations and exceptions. The Company’s significant business is sugar and it has been identified as an essential service. The Company’s factory was operating during the lockdown except for few days in the initial lock down period and was able to complete the crushing of sugarcane as per the schedule with slight delay.

The Company has made detailed assessment of its liquidity position including the ability of the Company to continue as going concern. The Company has sanctioned credit facilities which can be used as and when necessary and has the ability to repay the debts as and when it falls due.

Management believes that it has taken into account all the possible impact of events arising from COVID 19 pandemic in the preparation of the standalone financial statements for the year ended March 31, 2021, which are not significant.

165

Annual Report 2020-21

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

41 Based on and to the extent of information available with the Company under the Micro, small and Medium enterprises development act, 2006 (MsMed act), the relevant particulars as at reporting date are furnished below:

(` Lakh)

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particulars Year ended Year ended
March 31, 2021 March 31, 2020
(i) Principal amount due to suppliers under MSMED Act, as at the end of the year 303 180
(ii) Interest accrued and due to suppliers under MSMED Act on the above - -
amount as at the end of the year
(iii) Payment made to suppliers (other than interest) beyond the appointed day, - -
during the year
(iv) Interest paid to suppliers under MSMED Act (other than Section 16) - -
(v) Interest paid to suppliers under MSMED Act (under Section 16) - -
(vi) Interest due and payable to suppliers under MSMED Act, for payments - -
already made
(vii) Interest accrued and remaining unpaid at the end of the year to suppliers - -
under MSMED Act (ii) + (vi)
total 303 180
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Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

42 disclosure as per regulation 34(3) and 53(f) of securities and exchange Board of India (Listing obligations and disclosures requirements) regulations, 2015 and section 186 of Companies act, 2013:

Loans and advances in the nature of loans to subsidiaries (refer note 51):

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
1. Loan balance 40,000 -
Maximum balance outstanding during the year 40,000 51
2. Guarantee 19,042 30,026
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note: The loan is repayable in four equal annual installments and carried interest of 6.15%.This loan was given for general bussiness purpose.

43 Consequent to the tax, cash flow optimisation and dividend related matters, the Company reassessed for adopting the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 including retrospective application from April 01, 2019 and has planned to adopt the reduced tax rates under section 115BAA. Accordingly, the Company has remeasured its deferred tax balance based on the rates prescribed in the ordinance and has written off the unutilised Minimum Alternate Tax credit. The charge to the statement of profit and loss and other comprehensive income consequent to moving to a new tax regime is 8,890 Lakh and 74 Lakh respectively.

44 deferred tax balances

The following is the analysis of deferred tax assets/(liabilities) presented in the balance sheet:

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----- Start of picture text -----

(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Deferred tax assets - 8,161
Deferred tax liabilities (12,518) (864)
(12,518) 7,297
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166

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

(` Lakh)

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----- Start of picture text -----

2020-21 opening recognised in recognised in other Closing
balance profit or loss comprehensive balance
income
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deferred tax (liabilities)/asset in relation to
Property plant and equipment	(23,191)	9,821	-	(13,370)
Leases	34	(39)	-	(5)
Provision for doubtful debts, provision for compensated absences and others	3,744	(924)	-	2,820
Financial assets at FVTOCI	(3,963)	-	(310)	(4,273)
Defned beneft obligation	264	-	(83)	181
	(23,112)	8,858	(393)	(14,647)
Tax losses	22,248	(20,119)	-	2,129

net deferred tax assets/(liability)	(864)	(11,261)	(393)	(12,518)
MAT Credit entitlement	8,161	(8,161)	-	-
net deferred tax asset	7,297	(19,422)	(393)	(12,518)

(` Lakh)

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2019-20 opening recognised in recognised in other Closing
balance profit or loss comprehensive balance
income
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deferred tax (liabilities)/asset in relation to
Property plant and equipment	(24,160)	969	-	(23,191)
Leases	-	34	-	34
Provision for doubtful debts, provision for compensated absences and others	3,752	(8)	-	3,744
Financial assets at FVTOCI	(3,625)	-	(338)	(3,963)
Defned beneft obligation	189	-	75	264
	(23,844)	995	(263)	(23,112)
Tax losses	21,044	1,204	-	22,248

net deferred tax assets/(liability)	(2,800)	2,199	(263)	(864)
MAT Credit entitlement	8,262	(101)	-	8,161
net deferred tax asset	5,462	2,098	(263)	7,297

45 Income taxes

45.1 Income tax recognised in profit or loss

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(` Lakh)
particulars 2020-21 2019-20
Current tax (69) (89)
Deferred tax 19,422 (2,098)
total income tax expense/(gain) recognised in the current year 19,353 (2,187)
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167

Annual Report 2020-21

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

The income tax expense for the year can be reconciled to the accounting profit as follows:

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----- Start of picture text -----

particulars 2020-21 2019-20
profit before tax 1,05,839 (2,004)
Income tax expense calculated at 25.17% (2020: 34.944%) 26,639 (700)
Effect of income that is exempt from taxation - (2,123)
Effect of concession/indexation (16,968) (380)
Effect of expenses that are not deductible in determining taxable profit 402 36
Effect on deferred tax balance due to remeasurement 8,890 847
Others 390 133
Income tax expense recognised in profit or loss 19,353 (2,187)
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The tax rate used for 2020-21 is 25.17%, consequent to adopting the option under section 115BAA of the Income Tax Act, 1961. For the year 2019-20, corporate tax rate of 34.944% is used.

45.2 Income tax recognised in other comprehensive income

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particulars 2020-21 2019-20
deferred tax
Arising on income and expenses recognised in other comprehensive income:
Net fair value gain on investments in equity shares at FVTOCI 310 338
Remeasurement of defined benefit obligation 83 (75)
total income tax recognised in other comprehensive income 393 263
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45.3 Income tax directly recognised in equity

No tax has been recognised directly in equity

46 segment Information

Information reported to the chief operating decision maker (CODM) for the purposes of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided, and in respect of the following segments tabulated below. The directors of the Company have chosen to organise the Company around differences in products and services. No operating segments have been aggregated in arriving at the reportable segments of the Company. Specifically the Company’s reportable segments under Ind AS 108 are as follows.

operating segment:

sugar	Cogeneration	distillery	nutraceuticals Nutraceuticals
Sugar	Power	Spirits
Geographical information: The Company operates in the following principal geographical areas - North America Europe Rest of the world
North America	Europe	Rest of the world	India (Countryof domicile)

Revenue and expenses directly attributable to segments are reported under each reportable segment. Other expenses and income which are not attributable or allocable to segments have been disclosed as net unallocable expenses/income.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Property, plant and equipment that are used interchangeably among segments are not allocated to reportable segments.

Operating segments represent the products also and therefore separate disclosure of revenue from major products is not made.

Sales to any individual customers is less than 10% of total sales.

Inter segment transfer pricing:

Inter Segment prices are normally negotiated amongst the segments with reference to cost, market prices and business risks, within an overall optimisation objective for the enterprise.

168

E.I.D.-Parry (India) Limited

Financial Statements

Corporate Overview Management Reports

==> picture [442 x 681] intentionally omitted <==

----- Start of picture text -----

Lakh) 57 - 764 547 6,219 4,032 - 2,187 183 8,880 446 9,326
(` 2020 (2,004)
1,87,431 1,87,488 (13,566) 2,78,576 1,29,183 4,07,759 1,22,170 1,14,214 2,36,384
- -
overall
2021 2,02,425 2,02,425 9,146 736 30,516 3,196 (9,272) 71,517 1,05,839 (19,353) 86,486 2,63,336 1,64,121 4,27,457 93,801 74,247 1,68,048 3,074 24 3,098
- - - - - -
2020 (4,829) (4,829)
- - - - - -
elimination
2021 (5,163) (5,163)
2020 5,819 - - 5,819 (816) 11,347 1,667 708
- - 533 144
nutraceuticals 2021 7,174 7,174 11,569 1,440
2020 - - 6,103 1,694 3,459
35,680 35,680 28,542
operatInG seGMents
- -
distillery
2021 36,161 36,161 3,155 38,982 2,359 614
2020 8,268 - 4,829 13,097 (3,737) 35,071 2,891 963
- 317
Cogeneration 2021 9,032 5,163 14,195 (2,070) 28,331 1,941
- - (786) 3,750
2020
1,37,664 1,37,664 2,03,616 1,15,918
sugar - -
7,528 1,999
2021 1,50,058 1,50,058 1,84,454 88,061
particulars revenue from operations: External Customers Other revenue from operation Inter-segmental Sales total results: Operating profit/(loss) Interest income Dividend income Other unallocated income net of expenses Finance costs Exceptional item Profit/(loss) before tax Tax expenses net profit after tax for the year other information: Segment assets Unallocated corporate assets total assets Segment liabilities Unallocated corporate liabilities total Liabilities Additions to property, plant and equipment and intangible assets Unallocated additions to property, plant and equipment and intangible assets total additions to property, plant and equipment and intangible assets
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169

Annual Report 2020-21

	operatInG seGMents	particulars sugar Cogeneration distillery nutraceuticals elimination overall	2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020	Depreciation 6,006 6,134 3,127 3,194 1,970 1,778 605 556 - - 11,708 11,662	Unallocated depreciation 291 294	total depreciation 11,999 11,956	Non cash item 212 152 985 131 640 741 15 (18) - - 1,852 1,006	Unallocated non cash item 75 -	total non cash item 1,927 1,006	46.2 Geographical information	particulars north america europe rest of the World India total	2021 2020 2021 2020 2021 2020 2021 2020 2021 2020	Segment revenue from operations 2,734 2,132 5,423 2,756 6,084 4,277 1,88,184 1,78,323 2,02,425 1,87,488	Non-current asset * - - - - - - 1,24,509 1,36,416 1,24,509 1,36,416	*Non-current assets exclude those relating to Investments, Tax assets and non-current fnancial assets.	47. employee beneft plans	a. defned contribution plans:	The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defned contribution plans, for qualifying	employees. Under the Schemes, the Company is required to contribute a specifed percentage of the payroll costs to fund the benefts. The Company recognised	`614 Lakh (year ended March 31, 2020 -`658 Lakh) for Provident Fund contributions,`292 Lakh (year ended March 31, 2020 -`258 Lakh) for Superannuation	Fund contributions and`1 Lakh (year ended March 31, 2020 -`1 Lakh) for Employee State Insurance Scheme contributions in the Statement of Proft and Loss. The	contributions payable to these plans by the Company are at rates specifed in the rules of the schemes.	B. defned beneft plans:	Gratuity -	In respect of Gratuity plan, the most recent actuarial valuation of the plan assets and the present value of the defned beneft obligation were carried out as March 31,	2021 by Mr.Khushwant Pahwa, Fellow of the Institute of Actuaries of India. The present value of the defned beneft obligation, and the related current service cost and	past service cost, were measured using the projected unit credit method. The following table sets forth the status of the Gratuity Plan of the Company and the amount	recognized in the Balance Sheet and Statement of Proft and Loss. The Company provides the gratuity beneft through annual contributions to a fund managed by the	Life Insurance Corporation of India (LIC).

170

E.I.D.-Parry (India) Limited

Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

The Company is exposed to various risks in providing the above gratuity benefit which are as follows:

Interest rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).

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

salary escalation risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liabilty.

demographic risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

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(` Lakh)
particulars Gratuity (Funded)
as at as at
March 31, 2021 March 31, 2020
present Value of obligations at the beginning of the year 3,196 2,764
Current service cost 217 221
Interest Cost 198 208
Re-measurement (gains)/losses:
- Actuarial gains and losses arising from change in financial assumption - 272
- Actuarial gains and losses arising from experience adjustment (140) (59)
Benefits paid (496) (210)
present Value of obligations at the end of the year 2,975 3,196
Changes in the fair value of planned assets
Fair value of plan assets at beginning of year 2,203 1,787
Interest Income 137 134
Return on plan assets (105) -
Contributions from the employer 501 500
Benefits Paid (448) (218)
Fair Value of plan assets at the end of the year 2,288 2,203
amounts recognized in the Balance sheet
Projected benefit obligation at the end of the year 2,975 3,196
Fair value of plan assets at end of the year 2,288 2,203
Funded status of the plans – Liability recognised in the balance sheet 687 993
Components of defined benefit cost recognised in profit or loss
Current service cost 217 221
Net interest expense 61 73
net cost in profit or loss 278 294
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171

Annual Report 2020-21

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

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particulars Gratuity (Funded)
as at as at
March 31, 2021 March 31, 2020
Components of defined benefit cost recognised in other comprehensive
income
Remeasurement on the net defined benefit liability:
- Actuarial gains and losses arising from change in financial assumption - 272
- Actuarial gains and losses arising from experience adjustment (140) (59)
Return on plan assets 105 -
net cost in other comprehensive income (35) 213
particulars Gratuity (Funded)
as at as at
March 31, 2021 March 31, 2020
assumptions
Discount rate 6.20% 6.20%
Expected rate of salary increases 6.00% 6.00%
Expected rate of attrition 5.00% 5.00%
Average age of members 41.13 40.68
Average remaining working life 16.87 17.03
Mortality (IALM (2012-2014) Ultimate) 100% 100%
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The Company has invested the plan assets with the insurer managed funds. The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits.The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.

Significant actuarial assumptions for the detemination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The results of sensitivity analysis is given below:

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(` Lakh)
particulars March 31, 2021 March 31, 2020
Discount rate
- 1% increase 203 215
- 1% decrease (233) (244)
Salary growth rate
- 1% increase (228) (239)
- 1% decrease 202 214
Attrition rate
- increase of 50% of attrition rate 3 2
- decrease of 50% of attrition rate (2) (2)
Mortality rate
- increase of 10% of mortality rate - -
- decrease of 10% of mortality rate - -
----- End of picture text -----

172

E.I.D.-Parry (India) Limited

Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

Please note that the sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods of assumptions used in preparing the sensitivity analysis from prior years. Negative represents increase and positive represents decrease in obligation

The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset)

The Company’s best estimate of the contribution expected to be paid to the plan during the next year is 903 Lakh (2020 - 1,221 Lakh).

C. note on provident Fund:

With respect to employees,who are covered under Providend Fund Trust adminstered by the Company,the Company shall make good deficiency,if any in the interest rate declared by Trust over statutory Limit. Having regards to the assets of the Fund and the return on the investments, the Company does not expect any deficiency in the foreseeable future.

The actuary has assessed the calculations of the Interest Rate Guarantees based on the guidance note issued by the Institute of Actuaries of India. The disclosures required under Ind AS 19 is as set out below:

Fund and plan asset position are as follows:

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----- Start of picture text -----

(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Accumulated Account Value of Employee's Fund 5,050 5,138
Interest Rate Guarantee Liability 146 118
present value of benefit obligation at the end of the year 5,196 5,256
Plan asset at the end of the year 5,470 5,593
surplus available (274) (337)
asset recognised in the Balance sheet - -
----- End of picture text -----

The plan assets are primarily invested in government securities, corporate bonds & special deposit schemes.

Assumptions for present value of interest rate guarantee are as follows:

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----- Start of picture text -----

particulars as at as at
March 31, 2021 March 31, 2020
Discount rate 6.48% 6.20%
Expected guaranteed rate (%) 8.50% 8.50%
Attrition rate 5.00% 5.00%
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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

48. earnings per share:

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Basic earnings per share (in ) 48.86 0.10 Diluted earnings per share (in) 48.85 0.10
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48.1 Basic earnings per share

The earnings and weighted average number of equity shares used in the calculation of basic earnings per share are as follows.

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
earnings used in the calculation of basic earnings per share
Profit after Taxation (Lakh) 86,486 183 Number of equity shares of 1 each outstanding at the beginning of the year 17,69,94,981 17,69,94,981
Add: Number of shares issued pursuant to exercise of Employees Stock option 1,07,410 -
Number of equity Shares of ` 1 each outstanding at the end of the year 17,71,02,391 17,69,94,981
Weighted average number of equity shares 17,70,22,929 17,69,94,981
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48.2 diluted earnings per share

The earnings and weighted average number of equity shares used in the calculation of diluted earnings per share are as follows.

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
earnings used in the calculation of diluted earnings per share
Profit after Taxation (` Lakh) 86,486 183
The weighted average number of equity shares for the purposes of diluted earnings per share reconciles to the weighted
average number of equity shares used in the calculation of basic earnings per share as follows:
Weighted average number of equity shares used in the calculation of basic 17,70,22,929 17,69,94,981
earnings per share
Shares deemed to be issued for no consideration in respect of employee options 39,011 12,963
Weighted average number of equity shares used in the calculation of diluted 17,70,61,940 17,70,07,944
earnings per share
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The weighted average number of equity shares for the purposes of diluted earnings per share reconciles to the weighted average number of equity shares used in the calculation of basic earnings per share as follows:

49 Financial instruments

49.1 Capital management

The Company’s capital management is intended to maximise the return to shareholders for meeting the long-term and short-term goals of the Company through the optimization of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual and long-term operating plans and strategic investment plans. The funding requirements are met through equity and long-term/short-term borrowings. The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves attributable to the equity shareholders of the Company. Net debt includes all long and short-term borrowings (including current maturities of long term debt) as reduced by cash and cash equivalents.

174

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

The following table summarises the capital of the Company:

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----- Start of picture text -----

(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Equity 2,59,409 1,71,375
Debt 55,436 1,03,499
Cash and cash equivalents (1,338) (1,054)
net debt 54,098 1,02,445
total capital (equity + net debt) 3,13,507 2,73,820
Net debt to capital ratio 0.17 0.37
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49.2 Categories of financial instruments

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(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Financial assets
Measured at fair value through profit or loss (FVtpL)
(a) Mandatorily measured:
(i) Derivative instruments not designated in hedge accounting relationship 226 52
Measured at amortised cost
(a) Cash and bank balances 3,029 1,500
(b) Other financial assets at amortised cost 76,601 36,062
Measured at FVtoCI
(a) Investments in equity instruments designated upon initial recognition 18,718 17,250
Financial liabilities
Measured at amortised cost 1,49,246 2,29,406
Measured at FVTPL - 760
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49.3 Financial risk management objectives

The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using financial instruments such as foreign currency forward contracts, interest and currency swaps to hedge risk exposures and appropriate risk management policies as detailed below. The use of these financial instruments is governed by the Company’s policies approved by the Board of Directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk and the investment of excess liquidity. The Company does not enter into trade financial instruments, including derivative financial instruments, for speculative purposes.

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Annual Report 2020-21

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

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----- Start of picture text -----

Item primarily affected by risk management policies refer
----- End of picture text -----

Item primarilyaffected by risk managementpolicies refer	Item primarilyaffected by risk managementpolicies refer	Item primarilyaffected by risk managementpolicies refer	Item primarilyaffected by risk managementpolicies refer
Market risk - currency risk	USD balances and exposure towards trade payables, exports, and long-term borrowings	Mitigating foreign currency risk using foreign currency forward contracts, option contracts and currency swaps	Note 49.4.1
Market risk - interest rate risk	Change in market interest rates	Maintaining a combination of fxed and foating rate debt; interest rate swaps for long-term borrowings; cash managementpolicies	Note 49.4.2
Market risk - other price risk	Decline in value of equity instruments	Monitoring forecasts of cash fows; diversifcation ofportfolio	Note 49.4.3
Credit risk	Ability of customers or counterparties to fnancial instruments to meet contractual obligations	Credit approval and monitoring practices; counterparty credit policies and limits; arrangements with fnancial institutions	Note 49.5
Liquidity risk	Fluctuations in cash fows	Preparing and monitoring forecasts of cashfows; cash management policies; multiple-year credit and banking facilities	Note 49.6

49.4 Market risk

The Company’s financial instruments are exposed to market rate changes. The Company is exposed to the following significant market risks:

Foreign currency risk
Interest rate risk
Other price risk

Market risk exposures are measured using sensitivity analysis. There has been no change to the Company’s exposure to market risks or the manner in which these risks are being managed and measured.

49.4.1 Foreign currency risk management

The Company is exposed to foreign exchange risk on account of following:

Exports and imports

The Company has a forex policy in place whose objective is to reduce foreign exchange risk by deploying the appropriate hedging strategies (forward covers and options) and also by maintaining reasonable open exposures within approved parameters depending on the future outlook on currencies.

a. the carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities based on gross exposure at the end of the reporting period is as under:

Currency	Liabilities	Liabilities	assets	assets
	as at March 31, 2021	as at March 31, 2020	as at March 31, 2021	as at March 31, 2020
USD (in FCY Lakh)	0.25	1.20	23.26	18.75
INR (in INR Lakh)	18	91	1,700	1,419
EURO (in FCY Lakh)	-	1.96	6.78	4.49
INR (in INR Lakh)	-	162	582	372
GBP (in FCY Lakh)	-	-	0.29	0.31
INR (in INR Lakh)	-	-	29	29

176

E.I.D.-Parry (India) Limited

Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

The foreign currency risk on above exposure is mitigated by derivative contracts. The outstanding contracts as at the Balance Sheet date are as follows:

b. Foreign currency forward and current and interest rate swaps outstanding as at the Balance sheet date:

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----- Start of picture text -----

Currency as at March 31, 2021 as at March 31, 2020
Buy sell Buy sell
Forward contracts
USD/INR (in FCY Lakh) - 105.19 - 308.20
USD/INR (in INR Lakh) - 7,690 - 23,317
EURO/INR (in FCY Lakh) - 16.04 - 34.10
EURO/INR (in INR Lakh) - 1,378 - 2,822
Number of contracts - 86 - 211
----- End of picture text -----

c. Foreign currency sensitivity analysis

The Company is mainly exposed to fluctuations in US Dollar. The following table details the Company’s sensitivity to a 10% increase and decrease against the US Dollar on the outstanding balance. 10% is the sensitivity used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only net outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the Rupee strengthens by 10% against the US Dollar. For a 10% weakening against the US Dollar, there would be a comparable impact on the profit or equity.

(` Lakh)

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----- Start of picture text -----

Currency usd impact on: Year ended Year ended
March 31, 2021 March 31, 2020
Profit or loss 601 2,199
Equity 601 2,199
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In management’s opinion the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of reporting period does not reflect the exposure during the year.

49.4.2 Interest rate risk management

The Company issues commercial papers, draws working capital demand loans, cash credit etc. for meeting its funding requirements.

Interest rates on these borrowings are exposed to change in respective benchmark rates. The Company manages the interest rate risk by maintaining appropriate mix/portfolio of the borrowings.

a. Interest rate sensitivity analysis

The sensitivity analysis below has been determined for borrowings assuming the amount of borrowings outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis points increase or decrease in case of rupee borrowings is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rate were to increase by 50 basis from March 31, 2021, in case of rupee borrowings and all other variables were held constant, additional net annual interest expense on floating rate borrowing would amount to approximately 40 Lakh (March 31, 2020: 131 Lakh).

49.4.3 other price risks

The Company is exposed to equity price risks arising from equity investments. Certain of the Company’s equity investments are held for strategic rather than trading purposes. The Company also holds certain other equity investments for trading purposes.

177

Annual Report 2020-21

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

a. equity price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 1% higher/lower other comprehensive income/equity for the year ended March 31, 2021 would increase/decrease by 187 Lakh ( 173 Lakh for the year ended March 31, 2020) as a result of the changes in fair value of equity investments measured at FVTOCI. The impact of change in equity price on profit or loss is not significant.

49.5 Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and the credit worthiness of its counterparties are periodically monitored and taken up on case to case basis. The Company evaluates the concentration of risk with respect to trade receivables as low, as primarily it’s a cash and carry business except for institutional customers and government customers and its customers are located in several jurisdictions representing large number of minor receivables operating in independent markets. There is no material expected credit loss based on the past experience. However, the Company assesses the impairment by specific items of trade receivable and has accordingly created loss allowance on trade receivables.

The Company has issued financial guarantee to its wholly owned subsidiary, Parry Sugars Refinery India Private Limited of 11,000 Lakh (March 31, 2020: 22,000 Lakh). Further the company has issued Letter of Credit to its subsidiaries US Nutraceuticals Inc. & Alimtec S.A. to the tune of 8,042 Lakh (March 31, 2020: 8,026 Lakh) during the year. Based on the financial performance of subsidiaries, the Company does not expect the guarantee liability to devolve on the Company.

The credit risk on cash and bank balances is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

49.6 Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The table below provides details regarding the contractual maturities of non-derivative financial liabilities including estimated interest payments as at March 31, 2021:

					(`Lakh)
Particulars	Carrying amount	upto 1 year	1-3 year	More than 3 year	total contracted cash fows
Accountspayable and acceptances	30,516	30,516	-	-	30,516
Borrowings (includinginterest)	56,396	49,405	6,545	2,500	58,450
Lease liability	4,911	1,101	2,282	3,413	6,796
Other fnancial liabilities	56,803	56,803	-	-	56,803
total	1,48,626	1,37,825	8,827	5,913	1,52,565

178

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

The table below provides details of non-derivative financial assets as at March 31, 2021:

(` Lakh)

Particulars	Carrying amount
Trade receivables	20,063
Other fnancial liabilities	78,285
total	98,348

The table below provides details regarding the contractual maturities of non-derivative financial liabilities including estimated interest payments as at March 31, 2020:

(` Lakh)

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----- Start of picture text -----

Particulars Carrying upto 1 year 1-3 year More than 3 total contracted
amount year cash flows
----- End of picture text -----

Accountspayable and acceptances	43,627	43,627	-	-	43,627
Borrowings (includinginterest)	1,06,905	66,910	37,607	9,369	1,13,886
Lease liability	5,470	1,062	2,201	4,553	7,816
Other fnancial liabilities	73,404	73,404	-	-	73,404
total	2,29,406	1,85,003	39,808	13,922	2,38,733

The table below provides details of non-derivative financial assets as at March 31, 2020:

(` Lakh)

Particulars	Carrying amount
Trade receivables	16,178
Other fnancial assets	38,634
total	54,812

The following table details the Company’s maturity analysis for its derivative financial instruments. The table has been drawn up based on the undiscounted estimated cash flows determined by reference to the projected market rates at the end of the reporting period. A positive amount represents an anticipated cash inflow and a negative amount represents an anticipated cash outflow.

March 31, 2021

March 31, 2021
			(`Lakh)
Particulars	Less than 1 year	1-3 year	above 3 years
Net settled
- foreign exchange forward contracts	211	15	-
March 31, 2020			(`Lakh)
Particulars	Less than 1 year	1-3 year	above 3 years
Net settled
- foreign exchange forward contracts	(623)	(85)	-

49.7 Financing facilities

The Company has access to financing facilities of which 71,998 Lakh (as at March 31, 2020: 63,708 Lakh) were unused at the end of the reporting period. The Company expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets.

179

Annual Report 2020-21

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

49.8 Fair value measurements

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

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----- Start of picture text -----

(` Lakh)
Financial assets/financial liabilities Fair Value Fair value Valuation
as at as at hierarchy techniques & key
March 31, 2021 March 31, 2020 inputs used
1) Foreign currency forward contracts
designated in hedge accounting
relationships
Financial asset 226 52 Level 2 Refer Note 3
Financial liabilities - (760) Level 2 Refer Note 3
2) Investments in quoted equity 333 175 Level 1 Refer Note 2
instruments at FVTOCI
3) Investments in unquoted equity 18,385 17,075 Level 3 Refer Note 4
instruments at FVTOCI
----- End of picture text -----*

*positive value denotes financial asset and negative value denotes financial liability

notes:

There were no transfers between Level 1 and 2 in the period.
The Level 1 financial instruments are measured using quotes in active market.
The following table shows the valuation technique and key input used for Level 2:

Financial Instrument Valuation technique Key Inputs used (a) Foreign currency forward Discounted Cash Flow Forward exchange rates, contract contracts forward and interest rates, observable yield curves.

The following table shows the valuation technique and key input used for Level 3:

Financial Instrument Valuation Key Inputs used sensitivity technique Investments in Market Discount for lack of A 5% increase in the discount for lack unquoted equity Multiple marketability, determined by of marketability used in isolation would instruments at Approach reference to the share price decrease the carrying amount by 677 FVTOCI of listed entities in similar Lakh (as at March 31, 2020: 531 Lakh) industries, ranging from 30% and decrease in the discount for lack to 50% (as at March 31, 2020: of marketability would increase the 30% to 50%) carrying amount by 677 Lakh (as at March 31, 2020: 531 Lakh).

180

E.I.D.-Parry (India) Limited

Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)

(` Lakh)

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----- Start of picture text -----

particulars Fair value as at as at
hierarchy March 31, 2021 March 31, 2020
Carrying amount Fair value Carrying amount Fair value
Financial assets
Financial assets at amortised cost:
- Trade receivables Level 2 20,063 20,063 16,178 16,178
- Cash and cash equivalents Level 2 1,338 1,338 1,054 1,054
- Bank balances other than cash and Level 2 1,691 1,691 446 446
cash equivalents
- Loans Level 2 40,800 40,838 1,200 1,199
- Other financial assets Level 2 15,738 15,738 18,684 18,684
----- End of picture text -----

(` Lakh)

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----- Start of picture text -----

particulars Fair value as at as at
hierarchy March 31, 2021 March 31, 2020
Carrying amount Fair value Carrying amount Fair value
Financial liabilities
Financial liabilities at amortised cost:
- Borrowings Level 2 56,396 56,446 1,06,905 1,07,060
- Lease liability Level 2 4,911 5,179 5,470 5,837
- Trade payables Level 2 30,516 30,516 43,627 43,627
- Other financial liabilities Level 2 57,423 57,423 73,404 73,404
----- End of picture text -----

In case of trade receivables, cash and cash equivalents, trade payables, short term borrowings and other financial assets and liabilities it is assessed that the fair values approximate their carrying amounts largely due to the shortterm maturities of these instruments.
The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

reconciliation of Level 3 fair value measurements for the year ended March 31, 2021:

(` Lakh)

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----- Start of picture text -----

particulars Investments in unquoted equity total
instruments at FVtoCI
----- End of picture text -----

Openingbalance	17,075	17,075
Totalgains or losses:
- inproft or loss	-	-
- in other comprehensive income	1,310	1,310
Closingbalance	18,385	18,385

181

Annual Report 2020-21

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

reconciliation of Level 3 fair value measurements for the year ended March 31, 2020:

		(`Lakh)
particulars	Investments in unquoted equity instruments at FVtoCI	total
Openingbalance	16,766	16,766
Totalgains or losses:
- inproft or loss	-	-
- in other comprehensive income	309	309
Closingbalance	17,075	17,075

share based payments

50. 1 employee share option plan of the Company

50.1.1 details of the employee share option plans of the Company

The Company has share option scheme for executives and senior employees of the Company. As approved by the shareholders at previous annual general meetings, ESOP schemes will be administered by the Nomination and Remuneration Committee of the Board of Directors.

Each employee share option converts into one equity share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry.

The following share-based payment arrangement were in existence during the current and prior years

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----- Start of picture text -----

s. description date of number expiry date Fair value on the date exercise
no grant of options of grant as per Black price
granted scholes option pricing
Model
----- End of picture text -----

31.08.2007	18,58,200	31.08.2017	29.46	64.80
29.10.2007	2,32,400	29.10.2017	26.32	75.70
24.01.2008	4,60,600	28.02.2015	21.98	94.15
24.04.2008	1,52,200	24.04.2018	24.59	103.60
28.07.2008	1,30,000	28.07.2018	26.63	92.98
24.09.2008	3,87,000	31.10.2012	24.11	106.30
29.10.2008	1,13,600	29.10.2018	30.73	74.95
20.03.2009	47,800	30.06.2011	32.26	69.13
28.01.2011	3,29,600	28.01.2021	90.05	225.15
28.01.2011	36,700	01.04.2014	87.86	225.15
29.04.2011	41,400	29.04.2015	92.46	240.90
29.04.2011	34,500	29.04.2015	58.18	240.90
27.07.2011	1,15,000	27.07.2015	105.80	269.10
24.10.2011	75,700	24.10.2021	80.86	220.90
24.10.2011	19,300	30.09.2014	30.21	220.90
06.02.2017	8,43,220	06.02.2026	107.85	289.50
06.02.2018	75,420	06.02.2027	125.20	319.45
06.02.2018	1,36,600	06.02.2026	119.15	319.45
07.08.2018	18,904	07.08.2026	88.84	233.75

182

E.I.D.-Parry (India) Limited

Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

description	date of grant	number of options granted	expiry date	Fair value on the date of grant as per Black scholes option pricing Model	exercise price
	09.11.2018	59,300	09.11.2027	89.24	224.35
	29.07.2019	17,272	29.07.2027	53.42	159.45
	29.07.2019	37,710	29.07.2027	56.23	159.45
	06.11.2019	37,710	28.09.2020	58.46	165.40
total		52,60,136

50.1.2 no new share options were granted during the year

50.1.3 Movements in share options during the year

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----- Start of picture text -----

s. particulars description 2020-21 2019-20
no
options Weighted options Weighted
(numbers) average (numbers) average
exercise price exercise price
per option () per option ()
a Balance at the beginning of the year Options 3,95,911 290.54 2,89,154 284.89
vested and
exercisable
Options 3,41,744 251.36 4,58,484 288.48
unvested
total 7,37,655 272.39 7,47,638 287.09
b Options granted during the year - - 92,692 161.87
c Options vested during the year 1,95,617 285.33 1,62,539 294.04
d Options exercised during the year 1,07,410 278.55 - -
e Options lapsed/cancelled during 71,366 217.16 1,02,675 279.69
the year
f Options outstanding at the end of Options 4,50,462 292.52 3,95,911 290.54
the year vested and
exercisable
Options 1,08,417 219.00 3,41,744 251.36
unvested
total 5,58,879 278.26 7,37,655 272.39
(a+b-d-e)
----- End of picture text -----

Weighted Average remaining contractual life for option outstanding as at March 31, 2021 was 1,540 days (March 31, 2020: 1,782 days)

183

Annual Report 2020-21

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

50.1.4. details of shares excercised during the year

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----- Start of picture text -----

Grant date numbers Exercise date share price at
exercised exercise date
----- End of picture text -----

29.04.2011	4,152	18.11.2020	306.20
28.01.2011	4,320	23.11.2020	323.30
28.01.2011	4,704	23.11.2020	323.30
29.04.2011	4,968	23.11.2020	323.30
06.02.2017	58,051	08.12.2020	336.75
27.07.2011	5,520	08.12.2020	336.75
06.02.2017	24,879	01.03.2021	335.95
06.02.2017	816	15.03.2021	306.20

51 related party disclosure for the year ended March 31, 2021

51.1 List of related parties

I) parties where control exists

subsidiary Companies/entities

Coromandel International Limited
Parry Chemicals Limited
CFL Mauritius Limited
Coromandel Brasil Limitada – LLP, Brazil
Liberty Pesticides and Fertilisers Limited
Dare Investments Limited
Alimtec S.A.
Sabero Europe BV, Netherlands
Sabero Australia Pty. Ltd.
Sabero Organics America S.A., Brazil
Sabero Argentina S.A.
Coromandel Agronegoious De Mexico S.A. C.V.
Parry America Inc.
Parrys Investments Limited
Parrys Sugar Limited
Parry Infrastructure Company Private Limited
US Nutraceuticals Inc.
Parry Agrochem Exports Limited
La Belle Botanics LLC
Parry Sugars Refinery India Private Limited
Parry International DMCC
Coromandel International (Nigeria) Limited
Coromandel Mali SASU
Coromandel SQM (India) Private Limited
E.I.D. Parry Europe B.V.

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Corporate Overview Management Reports Financial Statements

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

II) other related parties with whom transactions have taken place during the year

associate & Joint venture

Algavista Greentech Private Limited

Investing party Group

Ambadi Investment Limited (Investing Party)
Parry Enterprises India Limited
Parry Agro Industries Limited

other related parties

Parry Group Staff Provident Fund
EID Parry Executive Staff Pension & Assurance Scheme

Key Management personnel (KMp)

Mr. Suresh S, Manging Director

Note: Related Party relationships are as identified by the management and relied upon by the auditors.

51.2 transactions with related parties

(` Lakh)

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particulars 2020-21 2019-20
subsidiary Investing KMp & subsidiary Investing KMp &
Companies party others Companies party others
Group Group
sale of goods
a. Parry International DMCC 2,753 - - 3,014 - -
b. US Nutraceuticals Inc. 1,355 - - 301 - -
c. Coromandel International Limited 1,092 - - 399 - -
d. Parry Agro Industries Limited - 23 - - 13 -
e. Parry Sugars Refinery India Limited 2,988 - - 3,807 - -
f. Algavista Greentech Private Limited - - 240 - - 182
rendering of services/reimbursement
a. Coromandel International Limited 439 - - 658 - -
b. Parry Sugars Refinery India Private 261 - - 247 - -
Limited
c. Parry Enterprises India Limited - 60 - - 76 -
d. Parry Agro Industries Limited - 50 - - 50 -
e. US Nutraceuticals Inc. - - - 77 - -
f. Alimtec S.A. 10 - - - - -
g. Algavista Greentech Private Limited - - 78 - - 125
dividend income/share of income
a. Coromandel International Limited 30,484 - - 6,200 - -
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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

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particulars 2020-21 2019-20
subsidiary Investing KMp & subsidiary Investing KMp &
Companies party others Companies party others
Group Group
deputation charges received
a. Parry Sugars Refinery India Private 6 - - 35 - -
Limited
b. Algavista Greentech Private Limited - - 5 - - -
purchase/receipt of goods
a. Coromandel International Limited 8 - - 1 - -
b. Parry Sugars Refinery India Private 959 - - 6 - -
Limited
c. Parry Enterprises India Limited - 13 - - 10 -
d. US Nutraceuticals Inc. 12 - - - - -
e. Algavista Greentch Private Limited - - 2 - - -
receipt of services
a. US Nutraceuticals Inc. 158 - - 236 - -
b. Algavista Greentech Private Limited - - 3 - - 16
c. Parry Enterprises India Limited - 47 - - 242 -
d. Parry Sugars Refinery India Private 8 - - - - -
Limited
e. Parrys Agro Industries Limited - - - - 1 -
Interest income on ICd Loans
a. Alimtec S.A. - - - 4 - -
b. Parry Sugars Refinery India Private 229 - - - - -
Limited
subscription to equity shares
a. Algavista Greentech Private Limited - - - - - 410
b. Parry Sugars Refinery India Private - - - 1,500 - -
Limited
c. US Nutraceuticals Inc. - - - 389 - -
employee related contribution
a. Parry Group Staff Provident Fund - - 225 - - 252
b. EID Parry Executive Staff Pension & - - 257 - - 262
Assurance Scheme
Loans and advances to subsidiaries
given/(repaid)
a. Parry Sugars Refinery India Private 40,000 - - - - -
Limited
b. Alimtec S.A. - - - (51) - -
Closing balances - debit/(credit)
a. Coromandel International Limited 36 - - 405 - -
b. US Nutraceuticals Inc. 1,158 - - 164 - -
c. Parry Sugars Refinery India Private 40,276 - - 20 - -
Limited
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Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

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particulars 2020-21 2019-20
subsidiary Investing KMp & subsidiary Investing KMp &
Companies party others Companies party others
Group Group
d. Parry Agro Industries Limited - (16) - - (15) -
e. Parry Enterprises India Limited - 20 - - (10) -
f. Parry Group Staff Provident Fund - - (18) - - (60)
g. EID Parry Executive Staff Pension & - - (25) - - (26)
Assurance Scheme
h. Algavista Greentech Private Limited - - 449 - - 172
i. Parry International DMCC 1 - - 346 - -
Guarantees given
a. Parry Sugars Refinery India Private 11,000 - - 22,000 - -
Limited
b. Alimtec S.A. 731 - - 942 - -
c. US Nutraceuticals Inc. 7,311 - - 7,084 - -
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particulars 2020-21 2019-20
52 Estimated amount of contracts remaining to be executed on capital 10,492 8,317
account and not provided for net of advances
53 Other monies for which the Company is contingently liable
(a) Disputed Income Tax demands which are under various stages of appeal 5,600 8,018
(out of which 2,767 Lakh (2020 - 2,767 Lakh) have been paid under
protest). (refer note 53.3 & 53.4)
(b) Disputed Indirect Taxes demands (out of which 184 Lakh (2020 - 201 3,404 3,340
Lakh) have been deposited under protest). (refer note 53.3)
(c) Cane price (refer note 53.1) 215 254
(d) Electricity related matters 752 752
(e) Corporate Guarantee/Letter of Credit given in favour of Subsidiaries 19,042 30,026
(f) Others (refer note 53.5) 2,929 156
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53.1 The Tamilnadu Government declared State Advisory Price (SAP) for the sugar year 2013-14, 2014-15 and 2015-16. The Company has challenged the right of State Government to declare the SAP in the Hon’ble High Court of Madras. The matter is subjudice.
53.2 Future cash outflows in respect of the above referred matters are determinable only on receipt of judgements/decisions pending at various forums/authorities.
53.3 The Income Tax Department/Commercial Tax Department/Central Excise and Service Tax and GST Authority has filed appeal against the favorable order passed by lower forum in favor of the Company in appropriate appellate forum to the extent of ` 2,231 Lakh. It is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.
53.4 The Income Tax Department has been adjusting the demand orders against other refunds receivable by the company in various assessment years, and accordingly this does not include interest, as applicable.
53.5 Certain Industrial Disputes are pending before Tribunal/High Courts. The liability of the Company in respect of these disputes depends upon the final outcome of such cases and the quantum of which is not currently ascertainable.

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Notes formiNg part of the staNdaloNe fiNaNcial statemeNts

54 Subsequent to the balance sheet, the Board of Directors of the Company’s subsidiary, Coromandel International Limited have recommended a final dividend of 6 per share (estimated dividend inflow for the Company would be 9,927 Lakh), which is subject to the approval by the subsidiary’s shareholders.
55 The figures for the previous year have been reclassified/regrouped wherever necessary for better understanding and comparability.
56 approval of Ind as financial statements

The Ind AS financial statements were reviewed and recommended by the Audit Committee and has been approved by the Board of Directors in their meeting held on June 29, 2021.

In terms of our report attached

For and on behalf of the Board of Directors

For price Waterhouse Chartered accountants LLp

Firm Registration Number: 012754N/N500016 Chartered Accountants

Baskar pannerselvam

Partner Membership Number: 213126 Chennai Date: June 29, 2021

s. suresh V. ravichandran Managing Director Chairman DIN: 06999319 DIN: 00110086 Biswa Mohan rath s. rameshkumar Company Secretary Chief Financial Officer

Chennai Date: June 29, 2021

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Corporate Overview Management Reports Financial Statements

Independent audItor’s report

To the Members of e.I.d. - parry (India) Limited

report on the audit of the Consolidated Financial statements

opinion

We have audited the accompanying consolidated financial statements of E.I.D. - Parry (India) Limited (hereinafter referred to as the “Holding Company”) and its subsidiaries (Holding Company and its subsidiaries together referred to as “the Group”), its associate and joint ventures (refer Note 53 to the attached consolidated financial statements), which comprise the consolidated Balance Sheet as at March 31, 2021, and the consolidated Statement of Profit and Loss (including Other Comprehensive Income), the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies and other explanatory information prepared based on the relevant records (hereinafter referred to as “the consolidated financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group, its associate and joint ventures as at March 31, 2021, of consolidated total comprehensive income (comprising of profit and other comprehensive income), consolidated changes in equity and its consolidated cash flows for the year then ended.

Basis for opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group, its associate and joint ventures in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in India in terms of the Code of Ethics issued by ICAI and the relevant provisions of the Act, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in sub-paragraph 19 of the Other Matters paragraph below, other than the

unaudited financial statements/financial information as certified by the management and referred to in subparagraph 20 of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our opinion.

emphasis of Matters in respect of subsidiary Companies

We draw your attention to Note 29A to the consolidated financial statements regarding inventory differences aggregating to 12,045 Lakhs arising out of physical verification of inventories carried out by Parry Sugars Refinery India Private Limited (PSRIPL), a subsidiary company as at the year end and included under the heading ‘Cost of materials consumed’ in the ‘Consolidated Statement of Profit and Loss’ for the year ended March 31, 2021. As indicated in the fact finding report of an independent consultant and the legal opinion obtained by the subsidiary company, the year wise impact of such losses relating to the earlier years, cannot be ascertained and consequently the entire difference of 12,045 Lakhs has been recorded in the Consolidated Statement of Profit and Loss for the year ended March 31, 2021 in accordance with Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors’.

Our opinion is not modified in respect of this matter.

The following emphasis of matter has been included in the Independent Auditor’s Report of Parry International DMCC, a step down subsidiary of the Holding Company, vide their report dated June 21, 2021. Refer Note 45 of the consolidated financial statements.

Without qualifying the report, we wish to highlight the content of (Note 12) to the financial statement with regards to the going concern status of the Company. These financial statements have been prepared under going concern concept despite the fact that the Company has negative equity and working capital deficit, considering the undertaking provided by the shareholder.

Our opinion is not modified in respect of this matter.

Key audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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Key audit matter

Impairment assessment of the carrying value of property, plant and equipment (ppe) of parry sugars refinery India private Limited (psrIpL), a subsidiary of the Holding Company

(Refer Note 1.28 and Note 2 to the consolidated financial statements)

As detailed in the aforesaid Note, Parry Sugars Refinery India Private Limited (PSRIPL), a subsidiary of the Holding Company has incurred losses during the current year and past two years.

The fact that the subsidiary is incurring losses is an indicator of potential impairment of the carrying value of PPE of the subsidiary.

The assessment for impairment involves significant Management judgement, including identification of the Cash Generating Units, impairment indicators etc. This key audit matter is significant to the financial statements, and Management judgement is required in certain areas such as discount and growth rates in estimating future cash flows prepared by the subsidiary along with the Management’s valuer to support the carrying value of PPE.

How our audit addressed the key audit matter

Our audit procedures included the following:

Understanding and evaluating the design and testing the operating effectiveness of key controls in relation to the impairment testing Model.
Assessing the Model and evaluating the independence, competence, capabilities and objectivity of the management’s valuer.
Assessing the historical accuracy of the Company’s forecasts by comparing the forecasts used in the prior year model with the actual performance in the current year.
Testing the mathematical accuracy of the underlying calculations and agreeing the forecasts for the ensuing year with the latest Board-approved budgets.
Evaluating, along with the auditor’s experts, the key assumptions such as discount rate and growth rate used in the Model.
Performing sensitivity tests on the Model for a range of certain assumptions, such as discount rate and growth rate.
• Evaluating adequacy of the disclosures made in the financial statements.
Based on the procedures performed, we did not identify any material exceptions in the impairment assessment carried out by the management in respect of the carrying value of PPE of the subsidiary PSRIPL.
The following Key Audit Matters were included in the audit report dated April 29, 2021, containing an unmodified audit opinion on the consolidated financial statements of Coromandel International Limited, a subsidiary of the Holding Company issued by an independent firm of Chartered Accountants reproduced by us as under:

Key audit matter revenue recognition – sale of goods

Refer to note 2.6 ‘Revenue recognition‘, note 2.31.1 ’Critical judgements in applying accounting policies’ and note 2.31.2 ‘Key sources of estimation uncertainty’ to the consolidated financial statements.

Revenue from sale of goods is recognised when the control of goods is transferred to the customers. In accordance with the accounting policy, control is transferred either when the product is delivered to the customer’s site or when the product is shipped, depending on the applicable terms. The Management has exercised judgement in applying the revenue accounting policy while recognizing revenue.

auditor’s response We have performed the following principal audit procedures in relation to revenue recognized by the Parent:

Understood the revenue recognition process, evaluated the design and implementation, and operating effectiveness of internal controls relating to revenue recognised.
Selected samples and tested the operating effectiveness of internal controls, relating to transfer of control. We carried out a combination of procedures involving enquiry, observation and inspection of evidence in respect of operation of these controls.
• Tested the relevant information technology general controls, automated controls, and the related information used in recording and disclosing revenue.
In respect of the selected sample of transactions:
Tested whether the revenue is recognised upon transfer of control to customer.
We have evaluated the delivery and shipping terms of the contracts for revenue recognised during the period.
We have also tested the location stock reports from Company warehouses, where applicable, for confirmation on sales quantity made during the year.

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Financial Statements

Corporate Overview Management Reports

Key audit matter

auditor’s response

We have tested on a sample basis (including for sales near to the period end) the acknowledgments of customers. In respect of sales of fertiliser products we have also agreed the quantities sold as per the Company books with the customer acknowledgements as per the iFMS portal of the Department of Fertilisers.

accuracy, recognition, measurement, valuation , presentation and disclosures of subsidy income/ Government subsidies and related receivables

Refer to note 2.6 ‘Revenue recognition’ and note 2.31.2 ‘Key sources of estimation uncertainty’ to the consolidated financial statements.

Subsidy income pertaining to the Nutrient and other allied business is recognised on the basis of the rates notified from time to time by the Department of Fertilisers, Government of India (‘GOI’) in accordance with the Nutrient Based Subsidy (‘NBS’) policy on the quantity of fertilisers sold by the Company for the period for which notification has been issued and for the remaining period, based on estimates, when there is a reasonable assurance that the Company will comply with all necessary conditions attached to Subsidy including Direct Benefit Transfer (‘DBT’) System which was introduced by Government of India.

For the year ended March 31, 2021, subsidy income of ` 332,468 lakhs is recognised. Recognition and realisability of subsidy income is dependent on GOI Policy and its various initiatives/schemes.

The following principal audit procedures have been performed by us in relation to subsidy income recognition.

We have read the relevant circulars and notifications issued by GOI from time to time with regard to the subsidy policies.
We enquired with the relevant personnel in the Company with regard to the updates of GOI Policy and their interpretations of the relevant circulars and notifications.
Tested the relevant information technology general controls, automated controls, and the related information used in recording and disclosing subsidy income.
We have tested the NBS rates considered by the Company for the product subsidy with the applicable circulars and notifications.
We have correlated the sales quantity considered for subsidy income with the actual sales made by the Company.
We have also agreed the quantities sold as per the Company books with the customer acknowledgements as per the iFMS portal of the Department of Fertilisers and tested the DBT claims made by the Company.
We have enquired from the Management and discussed with Those Charged With Governance, the appropriateness of the subsidy rates applied to recognise subsidy income.

Valuation of subsidy receivables:

Following are the principal audit procedures performed by us for testing valuation of subsidy receivables:

We have analysed and discussed the status of outstanding subsidy receivables and its realisability with the Management.
We have tested the sanction notes received from the GOI for receipts.
We have tested the credits in the bank statements for the receipts during the year and also the subsequent receipts.
We have tested whether the deductions made by the GOI have been adjusted in the books of accounts.

The note 2.6 ‘Revenue recognition’ and note 2.31.1 ‘Critical judgements in applying accounting policies’ and note 2.31.2 ‘Key sources of estimation uncertainty’ as referred above have been reproduced in note 1.6 and 1.28 to the consolidated financial statements.

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other Information

The Holding Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Board’s Report together with the annexure thereto, Report on Corporate Governance and Business Responsibility report but does not include the consolidated financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed and the reports of the other auditors as furnished to us (Refer paragraph 19 below), we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

responsibilities of Management and those Charged with Governance for the Consolidated Financial statements

The Holding Company’s Board of Directors is responsible for the preparation and presentation of these consolidated financial statements in term of the requirements of the Act that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows, and changes in equity of the Group including its associate and joint ventures in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act. The respective Board of Directors of the companies included in the Group and of its associate and joint ventures are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group, its associate and joint ventures respectively and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Holding Company, as aforesaid.
In preparing the consolidated financial statements, the respective Board of Directors of the companies included in the Group and of its associate and joint ventures are responsible for assessing the ability of the Group and of its associate and joint ventures to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in the Group and of its associate and joint ventures are responsible for overseeing the financial reporting process of the Group and of its associate and joint ventures.

auditor’s responsibilities for the audit of the Consolidated Financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Holding Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

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Financial Statements

Corporate Overview Management Reports

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its associate and joint ventures to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and its associate and joint ventures to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group and its associate and joint ventures to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the consolidated financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when,

in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

other Matters

We did not audit the financial statements/financial information of eight subsidiaries (including their relevant subsidiaries/a step down subsidiary/joint ventures/ associate) whose financial statements/ financial information reflect total assets of 916,860 Lakhs and net assets of 527,598 Lakhs as at March 31, 2021, total revenue of 1,441,723 Lakhs, total comprehensive income (comprising of profit and other comprehensive income) of 131,819 Lakhs and net cash inflow amounting to 62,827 Lakhs for the year ended on that date, as considered in the consolidated financial statements. The consolidated financial statements also include the Group’s share of total comprehensive loss (comprising of loss and other comprehensive income) of 329 Lakhs for the year ended March 31, 2021 as considered in the consolidated financial statements, in respect of a joint venture whose financial statement/ financial information have not been audited by us. These financial statements/financial information have been audited by other auditors whose reports have been furnished to us by the Management, and our opinion on the consolidated financial statements insofar as it relates to the amounts and disclosures included in respect of these subsidiaries (including their relevant subsidiaries/a step down subsidiary/joint ventures/ associate) and joint venture and our report in terms of sub-section (3) of Section 143 of the Act including report on Other Information insofar as it relates to the aforesaid subsidiaries and joint venture, is based solely on the reports of the other auditors.
We did not audit the financial statements/financial information of one subsidiary, whose financial statements/financial information reflect total assets of Nil and net assets of Nil as at March 31, 2021, total revenue of Nil, total comprehensive income (comprising of profit and other comprehensive income) of Nil and net cash flows amounting to ` Nil for the year ended on that date, as considered in the consolidated financial statements. These financial statements/financial information are unaudited and have been furnished to us by the Management, and our opinion on the consolidated financial statements insofar as it relates to the amounts and disclosures included in respect of this subsidiary and our report in terms of subsection (3) of Section 143 of the Act including report on Other Information insofar as it relates to the aforesaid subsidiary is based solely on such unaudited financial statements/financial information. In our opinion and according to the information and explanations given to us by the Management, these financial statements/ financial information are not material to the Group.

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Of the above, the financial statements/financial information of three subsidiaries (including one step down subsidiary) located outside India, included in the consolidated financial statements, which constitute total assets of 23,808 Lakhs and net assets of 9,951 Lakhs as at March 31, 2021, total revenue of 20,375 Lakhs, total comprehensive loss (comprising of loss and other comprehensive income) of 2,905 Lakhs and net cash outflow amounting to ` 151 Lakhs for the year then ended, have been prepared in accordance with accounting principles generally accepted in their respective countries and have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Holding Company’s management has converted the financial statements of such subsidiaries located outside India from the accounting principles generally accepted in their respective countries to the accounting principles generally accepted in India. We have audited these conversion adjustments made by the Holding Company’s management. Our opinion in so far as it relates to the balances and affairs of such subsidiaries located outside India, including other information, is based on the report of other auditors and the conversion adjustments prepared by the management of the Holding Company and audited by us.
The following emphasis of matter paragraph was included in the audit report on the financial statements of Algavista Greentech Private Limited a Joint Venture of the Holding Company issued by an independent firm of Chartered Accountants vide its report dated May 19, 2021 reproduced by us as under:

“We draw your attention to Note 37 to the financial statements which explains the management’s assessment of the financial impact due to the lock-downs and other restrictions and conditions related to the Covid-19 pandemic situation, for which definitive assessment of the impact in the subsequent period would largely depend upon the circumstances as they evolve.

Our Opinion is not modified in respect of this matter.”

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial statements/financial information certified by the Management.

report on other Legal and regulatory requirements

As required by Section 143(3) of the Act, we report, to the extent applicable, that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements. Also refer Emphasis of Matters in respect of Subsidiary Companies in paragraph 4 above.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors. Also refer Emphasis of Matters in respect of Subsidiary Companies in paragraph 4 above.
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including other comprehensive income), Consolidated Statement of Changes in Equity and the Consolidated Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account and records maintained for the purpose of preparation of the consolidated financial statements.
(d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards specified under Section 133 of the Act. Also refer Emphasis of Matters in respect of Subsidiary Companies in paragraph 4 above.
(e) The matter described in the Basis of Qualified Opinion paragraph in our separate Report in “Annexure A”, in relation to a subsidiary, in our opinion, may have an adverse effect on the functioning of PSRIPL, a subsidiary company.
(f) On the basis of the written representations received from the directors of the Holding Company as on March 31, 2021 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of its subsidiary companies and joint ventures incorporated in India, none of the directors of the Group companies and joint ventures incorporated in India is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164(2) of the Act.
(g) With respect to the adequacy of internal financial controls with reference to financial statements of the Group and its joint ventures and the operating effectiveness of such controls, refer to our separate report in annexure a.

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(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The consolidated financial statements disclose the impact, if any, of pending litigations on the consolidated financial position of the Group, its associate and joint ventures– Refer Note 51 to the consolidated financial statements.
ii. The Group, its associate and joint ventures has made provisions as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts. Refer Note 24 to the consolidated financial statements.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Holding Company and its subsidiary companies and joint ventures incorporated in India.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Group and its joint ventures incorporated in India for the year ended March 31, 2021.
The Group and its joint ventures have paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
- For price Waterhouse Chartered accountants LLp Firm Registration Number: 012754N/N500016 Chartered Accountants

Baskar pannerselvam Partner Place: Chennai Membership Number: 213126 Date: June 29, 2021 UDIN No: 21213126AAAAET4625

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annexure a to Independent audItor’s report

Referred to in paragraph 23(g) of the Independent Auditor’s Report of even date to the members of E.I.D.-Parry (India) Limited on the consolidated financial statements as of and for the year ended March 31, 2021

report on the Internal Financial Controls with reference to financial statements under Clause (i) of sub-section 3 of section 143 of the act

In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March 31, 2021, we have audited the internal financial controls with reference to the financial statements of E.I.D.-Parry (India) Limited (hereinafter referred to as “the Holding Company”) and its subsidiary companies (including its relevant subsidiaries and joint ventures), which are companies incorporated in India, as of that date.

Management’s responsibility for Internal Financial Controls

The respective Board of Directors of the Holding company, its subsidiary companies (including its relevant subsidiaries and joint ventures) , to whom reporting under clause (i) of sub section 3 of Section 143 of the Act in respect of the adequacy of the internal financial controls with reference to financial statements is applicable, which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

auditor’s responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls with reference to the financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the ICAI and the Standards on Auditing deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to the financial statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to the financial statements and their operating effectiveness. Our audit of internal financial controls with reference to the financial statements included obtaining an understanding of internal financial controls with reference to the financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our qualified audit opinion on the Company’s internal financial controls system with reference to the financial statements.

Meaning of Internal Financial Controls with reference to the financial statements

A company’s internal financial control with reference to the financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control with reference to the financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

196 E.I.D.-Parry (India) Limited

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Inherent Limitations of Internal Financial Controls with reference to the financial statements

Because of the inherent limitations of internal financial controls with reference to the financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to the financial statements to future periods are subject to the risk that the internal financial control with reference to the financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Basis for Qualified opinion in respect of a subsidiary Company

According to the information and explanations given to us and based on our audit, the following material weakness have been identified as at March 31, 2021 in relation to a subsidiary.

“The Company did not have adequate internal controls for accurately measuring the raw sugar quantity consumed during the production process and analysing the losses in the production process. Also refer Emphasis of Matter section and para 23 (e) of our main report.

A ‘material weakness’ is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s financial statements will not be prevented or detected on a timely basis.”

Qualified opinion

In our opinion, except for the possible effects of the material weaknesses described in the Basis for Qualified Opinion paragraph above, in relation to a subsidiary of the Holding Company, on the achievement of the objectives of the control criteria, the Holding Company, its subsidiary companies (including

its relevant subsidiaries and joint ventures), which are companies incorporated in India, have, in all material respects, an adequate internal financial controls system with reference to the financial statements and such internal financial controls with reference to the financial statements were operating effectively as at March 31, 2021, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

We have considered the material weaknesses identified and reported above in paragraph 8 in determining the nature, timing, and extent of audit tests applied in our audit of the financial statements of PSRIPL, the subsidiary company, for the year ended March 31, 2021, and these material weaknesses do not affect our opinion on the financial statements of the subsidiary company. Also refer the Emphasis of Matters section of our main audit report.

other Matter

Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with reference to financial statements insofar as it relates to six subsidiary companies (including its relevant subsidiaries and joint ventures), which are companies incorporated in India, is based on the corresponding reports of the auditors of such companies incorporated in India. Our opinion is not modified in respect of this matter.
For price Waterhouse Chartered accountants LLp Firm Registration Number: 012754N/N500016 Chartered Accountants

Baskar pannerselvam Partner Place: Chennai Membership Number: 213126 Date: June 29, 2021 UDIN No: 21213126AAAAET4625

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ConsoLIdated BaLanCe sHeet

AS AT MARCH 31, 2021

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(` Lakh)
particulars note as at as at
no. March 31, 2021 March 31, 2020
assets
non-current assets
(a) Property, plant and equipment 2 3,06,603 3,30,700
(b) Right-of-use asset 2A 44,532 47,074
(c) Capital work in progress 2 19,166 6,913
(d) Investment property 3 3,350 2,489
(e) Goodwill 4 1,597 3,143
(f) Other intangible assets 5 2,259 2,367
(g) Intangible assets under development 1,408 1,622
(h) Financial assets
(i) Investments accounted for using equity method
a) Investments in associates 6 6 2
b) Investments in joint ventures 7 1,659 2,715
(ii) Other investments 8 39,683 36,819
(iii) Loans 10 400 800
(iv) Other fnancial assets 11 507 472
(i) Deferred tax assets (net) 34 708 8,828
(j) Income tax assets (net) 17 9,915 7,119
(k) Other non-current assets 12 7,248 6,560
total non-current assets 4,39,041 4,57,623
Current assets
(a) Inventories 13 4,07,058 4,35,405
(b) Financial assets
(i) Investments 8 3,956 1,796
(ii) Trade receivables 9 86,141 2,11,597
(iii) Government subsidies receivable 71,886 2,46,479
(iv) Cash and cash equivalents 14 73,099 10,599
(v) Bank balances other than (iv) above 15 6,207 3,225
(vi) Loans 10 1,51,768 43,257
(vii) Other fnancial assets 11 18,751 22,741
(c) Other current assets 12 61,994 66,696
8,80,860 10,41,795
Assets classifed as held for sale 16 6,460 2,984
total current assets 8,87,320 10,44,779
totaL assets 13,26,361 15,02,402
eQuItY and LIaBILItIes
equity
(a) Equity share capital 18 1,771 1,770
(b) Other equity 19 4,56,531 3,50,178
equity attributable to the owners of the Company 4,58,302 3,51,948
Non controlling interest 20 2,24,567 1,70,680
total equity 6,82,869 5,22,628
Liabilities
Non-current liabilities
(a) Financial liabilities
i. Borrowings 21 7,942 61,000
ii. Lease liability 2A 40,001 41,951
iii. Other fnancial liabilities 24 - 198
(b) Long term provisions 26 2,287 3,100
(c) Deferred tax liabilities (net) 34 18,281 13,864
(d) Other non-current liabilities 25 483 661
total non-current liabilities 68,994 1,20,774
Current liabilities
(a) Financial liabilities
i. Borrowings 22 49,727 3,15,563
ii. Lease liability 2A 3,244 2,917
iii. Trade payables 23
a. total outstanding dues of micro and small enterprises 1,308 1,123
b. total outstanding dues other than (iii)(a) above 3,94,877 3,98,903
iv. Other fnancial liabilities 24 1,06,961 1,22,716
(b) Short term provisions 26 3,537 3,036
(c) Current tax liability (net) 17 3,721 4,316
(d) Other current liabilities 25 11,123 10,426
total current liabilities 5,74,498 8,59,000
total liabilities 6,43,492 9,79,774
totaL eQuItY and LIaBILItIes 13,26,361 15,02,402
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The accompanying notes are an integral part of these consolidated Ind AS financial statements. In terms of our report attached

For and on behalf of the Board of Directors s. suresh V. ravichandran Managing Director Chairman DIN: 06999319 DIN: 00110086 Biswa Mohan rath s. rameshkumar Company Secretary Chief Financial Officer

For price Waterhouse Chartered accountants LLp Firm Registration Number: 012754N/N500016 Chartered Accountants

Baskar pannerselvam Biswa Mohan rath Partner Company Secretary Membership Number: 213126 Chennai Chennai Date: June 29, 2021 Date: June 29, 2021

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ConsoLIdated stateMent oF proFIt and Loss

FOR THE YEAR ENDED MARCH 31, 2021

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(Lakh) s. particulars note Year ended Year ended no no. March 31, 2021 March 31, 2020 I Revenues from Operations 27 18,58,745 17,12,892 II Other Income 28 4,315 1,888 III total Income (I+II) 18,63,060 17,14,780 IV Expenses: Cost of materials consumed 29A 10,45,451 10,32,769 Purchases of Stock-in-trade 2,18,458 1,35,420 Changes in inventories of finished goods, by products, work-in-progress 29B 59,368 47,808 and stock in trade Employee benefts expense 30 72,484 66,373 Finance costs 31 23,561 43,049 Depreciation and amortisation expense 32 33,170 31,896 Other expenses 33 2,45,636 2,30,608 total expenses (IV) 16,98,128 15,87,923 Share of proft/(loss) of associates 4 (82) Share of proft/(loss) of joint ventures 204 (151) V proft/(loss) before tax and exceptional items (III-IV) 1,65,140 1,26,624 VI Exceptional items 48 (11,208) - VII proft before tax (V-VI) 1,53,932 1,26,624 VIII Tax Expense: (1) Current Tax 35 45,922 38,278 (2) Deferred Tax 35 8,028 (542) 53,950 37,736 IX proft for the year after tax (VII - VIII) 99,982 88,888 other comprehensive income A. i) Items that will not be reclassifed to proft or loss a) Remeasurements of the defned beneft plans (949) (132) b) Fair value movement of cashfow hedge instrument - - c) Share of OCI as reported by Joint ventures and associate - (1) d) Equity instruments through other comprehensive income 2,779 703 1,830 570 ii) Income tax relating to items that will not be reclassfed to proft or loss (293) (690) iii) Gain on Bargain Purchase 266 - B. i) Items that will be reclassifed to proft or loss a) Effective portion of gains and loss on designated portion of hedg- (806) (10,921) ing instruments in a cash fow hedge b) Exchange differences in translating the financial statements of 272 370 foreign operations (534) (10,551) ii) Income tax relating to items that will be reclassfed to proft or loss (411) 299 x total other comprehensive income (a(i-ii)+B(i-ii)) 858 (10,372) xI total comprehensive income (Ix+x) 1,00,840 78,516 Proft for the year attributable to: - Owners of the Company 44,737 46,787 - Non-controlling interests 55,245 42,101 Other comprehensive income for the year: - Owners of the Company 336 (10,327) - Non-controlling interests 522 (45) Total comprehensive income for the year: - Owners of the Company 45,073 36,460 - Non-controlling interests 55,767 42,056 XII Earnings per Equity Share (Nominal value per share 1)
(a) Basic 43 25.27 26.43
(b) Diluted 43 25.15 26.34
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The accompanying notes are an integral part of these consolidated Ind AS financial statements.

In terms of our report attached

For price Waterhouse Chartered accountants LLp Firm Registration Number: 012754N/N500016 Chartered Accountants

Baskar pannerselvam

Partner Membership Number: 213126 Chennai Date: June 29, 2021

For and on behalf of the Board of Directors

s. suresh V. ravichandran Managing Director Chairman DIN: 06999319 DIN: 00110086 Biswa Mohan rath s. rameshkumar Company Secretary Chief Financial Officer

Chennai Date: June 29, 2021

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ConsoLIdated stateMent oF CasH FLoWs

FOR THE YEAR ENDED MARCH 31, 2021

(` Lakh)

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particulars For the Year ended For the Year ended
March 31, 2021 March 31, 2020
a. Cash flow from operating activities
net profit before tax 1,53,932 1,26,624
adjustments for:
Depreciation, amortisation and impairment 41,607 31,896
Finance costs 23,561 43,049
Dividend income (37) (61)
Profit on sale of investment property, fixed assets and fixed asset (654) 115
scrapped (net)
Net (gain)/loss arising on FVTPL Transaction (343) (183)
Interest income (including government grant interest income) (5,305) (6,400)
Liabilities/provisions no longer required written back (3,462) (235)
Bad debts written off and provision for doubtful debts 3,908 1,561
Net unrealised exchange gain or loss (8,257) 15,658
Net (gain)/loss arising on derivatives (6,713) 1,821
Earnings on equity method (208) 233
Provision for employee benefits (819) 1,496
Rental income from investment property net of expense (1,200) (1,387)
Others (27) 4
42,051 87,567
operating profit before working capital changes 1,95,983 2,14,191
Changes in working capital
(Increase)/decrease in trade and other receivables 1,24,218 (4,623)
(Increase)/decrease in government subsidies receivable 1,72,656 (2,231)
(Increase)/decrease in inventories 29,372 1,38,247
(Increase)/decrease in bank balances considered as other than cash (1,249) 5,200
and cash equivalent
(Increase)/decrease in other assets 12,655 13,698
(Increase)/decrease in other financial assets (932) (7,966)
Increase/(decrease) intrade payable 8,675 (1,07,467)
Increase/(decrease) in other liabilties (1,282) 7,632
Increase/(decrease) in other financial liabilties 2,574 (6,136)
Increase/(decrease) in exchange differences on translation to pre- 1,932 (4,399)
sentation currency
Increase/(decrease) in cane bills due (18,003) (9,243)
3,30,616 22,712
Cash generated from operations 5,26,599 2,36,903
Income taxes paid net of refund (49,500) (38,306)
net cash flow from operating activities 4,77,099 1,98,597
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ConsoLIdated stateMent oF CasH FLoWs

FOR THE YEAR ENDED MARCH 31, 2021

(` Lakh)

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particulars For the Year ended For the Year ended
March 31, 2021 March 31, 2020
B. Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets (33,404) (36,484)
Proceeds from sale of fixed assets 1,845 693
Inter-corporate deposits/loans given (1,81,368) (42,457)
Inter-corporate deposits matured/loans received 73,257 42,805
Sale/(purchase) of investments and bank deposit (net) (3,438) 1,703
Investments in subsidiary/joint ventures (1,200) (1,171)
Proceeds from sale of investments in Subsidiary (refer note 47A) 83,516 -
Interest received 3,535 4,166
Rent received from investment property (net) 1,200 1,387
Dividend income received 58 119
net cash flow used in investing activities (55,999) (29,239)
C. Cash flow from financing activities
Proceeds from issue of equity shares 1,736 1,366
Repayment of lease liability (refer note 2A) (3,051) (2,646)
Proceeds from long term borrowings 6,403 29,104
Repayment of long term borrowings (50,980) (24,298)
Net increase/(decrease) in working capital borrowing (2,65,550) (1,30,745)
Finance cost paid (26,069) (44,815)
Dividends paid (22,288) (4,868)
net cash flow used in financing activities (3,59,799) (1,76,902)
net increase/(decrease) in cash and cash equivalents (a+B+C) 61,301 (7,544)
reconciliation
Cash and cash equivalents at beginning of the year 10,599 17,060
Add: Cash & Cash Equivalents pursuant to acquisition of controlling 1,239 843
interest
Exchange gain/(loss) on cash and cash equivalents (40) 240
Cash and cash equivalents at end of the year 73,099 10,599
net increase/(decrease) in cash and cash equivalents 61,301 (7,544)
----- End of picture text -----

The accompanying notes are an integral part of these consolidated Ind AS financial statements. In terms of our report attached

For and on behalf of the Board of Directors

For price Waterhouse Chartered accountants LLp

Firm Registration Number: 012754N/N500016 Chartered Accountants

Baskar pannerselvam

Partner Membership Number: 213126 Chennai Date: June 29, 2021

s. suresh V. ravichandran Managing Director Chairman DIN: 06999319 DIN: 00110086 Biswa Mohan rath s. rameshkumar Company Secretary Chief Financial Officer

Chennai Date: June 29, 2021

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(`Lakh)	non- controlling interest total equity	1,32,456 4,45,246		42,101 88,888	(45) (10,372)			- -		- 439		742 2,472				- 823	294 -				(4,868) (4,868)	1,70,680 5,22,628		55,245 99,982	522 858			- -		- 373		765 637					- 1,141
	total equity attributable to the owners of the Company	3,12,790		46,787	(10,327)			-		439		1,730				823	(294)				-	3,51,948		44,737	336			-		373		(128)					1,141
FOR THE YEAR ENDED MARCH 31, 2021	particulars share Capital reserves and surplus other reserves Capital redemption reserve Capital reserve on amalgamation Capital reserve on consolidation securities premium reserve debenture redemption reserve Capital reserve Foreign currency translation reserve Central subsidy General reserve esop reserve statutory reserve retained earnings equity instruments through other comprehensive income effective portion of cash fow hedges	Balance at april 01, 2019 1,770 4,886 688 6,226 44,922 2,249 5,931 5,171 7 2,37,199 1,228 30 (1,283) (160) 3,926	Movement during 2019-20	Proft for the year - - - - - - - - - - - - 46,787 - -	Other comprehensive - - - - - - - 287 - - - - (158) (189) (10,267)	income for the year, net of	income tax	Amount transferred within - - - - 290 (833) - - - 18,300 (449) 1 (17,309) - -	Reserves	Recognition of share based - - - - - - - - - - 439 - - - -	payments	Other movements during - - - - - - - - - - - - - - 1,730	the year	Transactions with owners in	their capacity as owners:	On issue of shares - - - - 823 - - - - - - - - - -	Movement on account - (1) - - (12) - - (5) - (210) (1) - (86) 21 -	of reduction in control	percentage without loss of	control	Payment of dividends - - - - - - - - - - - - - - -	Balance at March 31, 2020 1,770 4,885 688 6,226 46,023 1,416 5,931 5,453 7 2,55,289 1,217 31 27,951 (328) (4,611)	Movement during 2020-21	Proft for the year - - - - - - - - - - - - 44,737 - -	Other comprehensive - - - - - - 154 341 - - - - (455) 2,011 (1,715)	income for the year, net of	income tax	Amount transferred within - - - - 408 - - - - 1 (409) 3 (3) - -	Reserves	Recognition of share based - - - - - - - - - - 373 - - - -	payments	Other movements during - - - - - - - - - - - - - - (128)	the year	Transactions with owners	in their capacity as	owners:	On issue of shares 1 - - - 1,140 - - - - - - - - - -

202 E.I.D.-Parry (India) Limited

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Corporate Overview Management Reports

	particulars share Capital reserves and surplus other reserves total equity attributable to the owners of the Company non- controlling interest total equity Capital redemption reserve Capital reserve on amalgamation Capital reserve on consolidation securities premium reserve debenture redemption reserve Capital reserve Foreign currency translation reserve Central subsidy General reserve esop reserve statutory reserve retained earnings equity instruments through other comprehensive income effective portion of cash fow hedges	Movement on account - (1) - - (16) - - (5) - (237) (1) - (164) 20 1 (403) 403 -	of reduction in control	percentage without loss	of control	Transfer of net assets to - (39) - - (747) - (18) (226) - (10,491) (57) 71,000 875 1 60,298 19,240 79,538	non-controlling interest	and consideration	received on account of	stake sale (refer note 47A)	Payment of dividends - - - - - - - - - - - - - - - - (22,288) (22,288)	Balance at March 31, 1,771 4,845 688 6,226 46,808 1,416 6,067 5,563 7 2,44,562 1,123 34 1,43,066 2,578 (6,452) 4,58,302 2,24,567 6,82,869	2021	The accompanying notes are an integral part of these consolidated Ind AS fnancial statements.	In terms of our report attached For and on behalf of the Board of Directors	For price Waterhouse Chartered accountants LLp s. suresh V. ravichandran	Firm Registration Number: 012754N/N500016 Managing Director Chairman	Chartered Accountants DIN: 06999319 DIN: 00110086	Baskar pannerselvam Biswa Mohan rath s. rameshkumar	Partner Company Secretary Chief Financial Offcer	Membership Number: 213126	Chennai Chennai	Date: June 29, 2021 Date: June 29, 2021

203

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Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

Corporate information

E.I.D.- Parry (India) Limited (EID Parry or the Holding company) is a significant player in Sugar with interests in promising areas of Nutraceuticals. The Group also has a significant presence in Farm Inputs business including Bio pesticides through its subsidiary, Coromandel International Limited.

E.I.D.- Parry (India) Limited has six sugar factories having a capacity to crush 40,300 Tonnes of Cane per day, generate 140 MW of power and four distilleries having a capacity of 237 KLPD. In the Bio Pesticides business, the Group offers a unique neem extract, Azadirachtin, having a good demand in the developed countries’ bio pesticide markets. In the Nutraceuticals business, it holds a strong position in the growing wellness segment mainly catering to the world markets with its organic products.

sIGnIFICant aCCountInG poLICIes

1.1 statement of Compliance

a) The Group has applied the following standards and amendments for the first time for their annual reporting period commencing April 01, 2020:

Definition of Material – amendments to Ind AS 1 and Ind AS 8

Definition of a Business – amendments to Ind AS 103

COVID-19 related concessions – amendments to Ind AS 116

Interest Rate Benchmark Reform – amendments to Ind AS 109 and Ind AS 107

The amendments listed above did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.

1.2 Basis of preparation and presentation

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, defined benefit plan - plan assets measured at fair value, assets held for sale which is measured at lower of cost or fair value less cost to sell and share based payments as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.

the principal accounting policies are set out below:

1.3 Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Holding Company and entities controlled by the Holding Company and its subsidiaries (together referred to as Group). Control is achieved when the Group:

has power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns

The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

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Corporate Overview Management Reports

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

When the Group has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers all relevant facts and circumstances in assessing whether or not the Group’s voting rights in an investee are sufficient to give it power, including:

the size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
potential voting rights held by the Group, other vote holders or other parties;
rights arising from other contractual arrangements; and
any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings

Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit and loss from the date the Group gains control until the date when the Group ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Group and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Group and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies.

All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

1.3.1 Changes in the Group’s ownership interests in existing subsidiaries

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the

subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the Group.

When the Group loses control of a subsidiary, a gain or loss is recognised in statement of profit and loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to statement of profit and loss or transferred to another category of equity as specified/permitted by applicable Ind AS). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under Ind AS 109, or, when applicable, the cost on initial recognition of an investment in an associate or a joint venture.

1.4 Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units (or groups of cash-generating units) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cashgenerating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in statement of profit and loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

1.5 Investments in associates and joint ventures

An associate is an entity over which the Group has significant influence. Significant influence is the power

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to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control

The results and assets and liabilities of associates or joint ventures are incorporated in these consolidated financial statements using the equity method of accounting.

An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee becomes an associate or a joint venture. On acquisition of the investment in an associate or a joint venture, any excess of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised directly in equity as capital reserve in the period in which the investment is acquired.

After application of the equity method of accounting, the Group determines whether there any is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the net investment in an associate or a joint venture and that event (or events) has an impact on the estimated future cash flows from the net investment that can be reliably estimated. If there exists such an objective evidence of impairment, then it is necessary to recognise impairment loss with respect to the Group’s investment in an associate or a joint venture.

When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with Ind AS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount, Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised in accordance with Ind AS 36 to the extent that the recoverable amount of the investment subsequently increases.

When a group entity transacts with an associate or a joint venture of the Group, profits and losses resulting from the transactions with the associate or joint venture

are recognised in the Group’s consolidated financial statements only to the extent of interests in the associate or joint venture that are not related to the Group.

The Group discontinues the use of the equity method from the date when:

(i) the investment ceases to be an associate or a joint venture as follows:
(a) If the investment becomes a subsidiary, the Group accounts for its investment in accordance with Ind AS 103, Business Combinations, and Ind AS 110, Consolidated Financial Statements. The acquisition date carrying value of the previously held equity interest in the associate or joint venture is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognised in statement of profit and loss or other comprehensive income, as appropriate.
(b) The Group ceases to exercise significant influence or joint control over the entity.
(ii) when the investment is classified as held for sale.

1.6 revenue recognition

i. Sale of goods
a) Revenue is recognised when the performance obligations are satisified and the control of the product is transferred, being when the goods are delivered as per the relevant terms of the contract at which point in time the Group has a right to payment for the asset, customer has legal title of the asset, customer bears significant risk and rewards of ownership and the customer has accepted the asset or the Group has objective evidence that all criteria for acceptance have been satisfied. Payment for the sale is made as per the credit terms in the agreements with the customers. The credit period is generally short term, thus there is no significant financing component. Certain products of the Group carry a right of return. The Group also provides customers uncertainities such as rebates based on quantity purchased, timing of collection, etc.Various estimates are made to recognise the impact of rebates and other incentives on revenue. These estimates are made based on historical and forecasted data, contractual terms and current conditions. The Group based on accumulated experience estimates the right of return and rebates and revenue is recognised only to the extent that it is highly probable that a significant reversal in cumulative revenue recognised will not occur. The validility of this assumption and estimated amount of return are reassessed at each reporting period.

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Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

ii. Subsidy Income

The Group recognizes subsidy income as per Ind AS 20 ‘Accounting for Government Grants’ on the basis of the rates notified from time to time by the Government of India in accordance with the Nutrient Based Subsidy (NBS) policy on the quantity of fertilisers sold by the Group for the period for which notification has been issued and for the remaining period, based on estimates, when there is a reasonable assurance that the Group will comply with all necessary conditions attached to Subsidy.

iii. Rendering of services

The performance obligations under service contract are provision of handling services, business support services and other ancillary services set forth in the contracts. Revenue from rendering of services are recognised over a period of time by reference to the stage of completion as the customer simultaneously receives and consumes the benefit provided by the Group’s performance as the Group performs.

Payment for the service rendered is made as per the credit terms in the agreements with the customers. The credit period is generally short term, thus there is no significant financing component.

iv. Dividend and interest income

a) Dividend income from investments is recognised when the shareholder’s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably).
b) Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.
v. Insurance Claims
Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

vi. Export Incentives

Export incentives are treated as income in the year of export at the estimated realisable value.

vii. Commission

Commissions are accounted as per the terms of the contract and to the extent that the amounts recoverable can be measured reliably and reasonable to expect ultimate collection.

1.7 Leasing

Group as Lessee

From April 01, 2019, leases are recognised as a rightof-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices.

Assets and liabilities arising from a lease are initially measured on present value basis. Lease liability include the net present value of the following payments:

fixed payments (including in substance fixed payments), less any lease incentives receivabl
variable lease payments that are based on an index or a rate, initially measured using the index or rates at the commencement date
amounts expected to be payable by the Group under residual value guarantees
the exercise price of purchase options if the Group is reasonably certain to exercise that option
payment of penalties for terminating the lease, if the lease term reflects the Group exercising that option

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used, being the rate the individual lessee would have to pay to borrow fund necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

Lease payments are allocated between principal and finance cost. The finance cost is charged to statement of profit and loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Variable lease payments that are dependent on sales are recognised in statement of profit and loss in the period in which the conditions that triggers those payments occurs.

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Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

Right-of-use assets are measured at cost comprising the following:

the amount of initial measurement of lease liability
any lease payments made at or before the commencement date less any incentives received
any initial direct costs and
restoration costs

Right-of-use assets are generally depreciated over the shorter of asset’s useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life.

Group as Lessor

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised as expenses over the lease term on the same basis as lease income. The respective leased assets are included in the balance sheet based on their nature. The Group did not need to make any adjustments to the accounting of assets held as lessor as a result of adopting the new leasing standard.

1.8 Functional and presentation currency

Items included in the financial statements of the Group are measured using the currency of the primary economic environment in which these entities operate (i.e. the “functional currency”). The financial statements are presented in Indian Rupee (`), the national currency of India, which is the functional currency and presentation currency of the Holding company.

1.9 Foreign Currency transactions

In preparing the financial statements of the Group, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at

the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated

Exchange differences on monetary items are recognised in statement of profit and loss in the period in which they arise except for:

Exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings;
Exchange differences on transactions entered into in order to hedge certain foreign currency risks (see note 1.25 below for hedging accounting policies); and
Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised initially in other comprehensive income and reclassified from equity to statement of profit and loss on repayment of the monetary items.
Effective April 01, 2018 the Group has adopted Appendix B to Ind AS 21- Foreign Currency Transactions and Advance Consideration which clarifies the date of transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income when an entity has received or paid advance consideration in a foreign currency. The effect on account of adoption of this amendment was insignificant.

1.10 Borrowings & related costs

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Corporate Overview Management Reports

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the Group does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

1.11 Government grants other than nBs subsidy income:

Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received.

Government grants are recognised in statement of profit and loss on a systematic basis over the periods in which the Group recognises as expenses the related costs for which the grants are intended to compensate.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognised in statement of profit and loss in the period in which they become receivable.

In respect of government loans at below-market rate of interest existing on the date of transition, the Group has availed the optional exemption under Ind AS 101 - First Time Adoption and has not recognised the corresponding benefit of the goverment loan at belowmarket interest rate as Government grant.

1.12 employee Benefits

(a) retirement benefit costs and termination benefits

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period.

Defined benefit costs are categorized as follows:

Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
net interest expense or income; and
Remeasurement

The Group presents the first two components of defined benefit costs in statement of profit and loss in the line item ‘Employee benefits expense’.

Past service cost is recognised in statement of profit and loss in the period of a plan amendment.

Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

Curtailment gains and losses are accounted for as past service costs. The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

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The Group makes contributions to Provident Fund Trusts for certain employees, at a specified percentage of the employees’ salary. The Group has an obligation to make good the shortfall, if any, between the return from the investments of trust and the notified interest rates.

(b) short-term and other long-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries in the period the related service is rendered.

Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Group in respect of services provided by employees up to the reporting date.

1.13 share-based payment arrangements

The fair value determined at the grant date of the equitysettled share-based payments is expensed on a straightline basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in statement of profit and loss such that

the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.

Under the previous GAAP, share based payment costs were accrued on a intrinsic value method. Upon transition to Ind AS, the Group has availed the exemption to apply the fair value to only unvested options.

1.14 earnings per share

The Group presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is calculated by dividing the profit or loss attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

1.15 taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

a. Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

b. deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences and unused tax losses to the extent that it is probable that taxable profits will be available against which those deductible temporary differences and unused tax losses can be utilized. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments

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in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

c. Current and deferred tax for the year

Deferred tax assets and liabilities are offset when there is a legally emforceable right to offset current tax assets and liabilities and when the deferred tax balances relates to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

1.16 property, plant and equipment

Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost less

accumulated depreciation and accumulated impairment losses. Freehold land is not depreciated.

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the Group’s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Fixtures and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

Estimated useful lives of the assets are as per the technical evaluation performed by the Group which are as follows:

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asset useful lives (in years)
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Buildings, Road and railway sidings	3 - 80 years
Plant and equipment	1 - 25years
Vehicles	1 - 8years
Offce equipment, furniture and fxtures	1 - 10 years

Assets on leased premises are depreciated on the remaining period of lease or as per the useful life set above whichever is earlier. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Assets costing ` 5,000 and below are depreciated over a period of one year.

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1.17 Investment property

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost including transactions costs. Subsequent to initial recognition, investment properties are measured in accordance with Ind AS 16’s requirement for cost model. Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

Estimated useful lives of the assets are as follows:

asset	useful lives (inyears)
Buildings	10-60years

1.18 Intangible assets

a. Intangible assets acquired separately

b. Internally-generated intangible assets - research and development expenditure.

Expenditure on research activities is recognised as an expense in the period in which it is incurred.

An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following have been demonstrated:

the technical feasibility of completing the intangible asset so that it will be available for use or sale;
the intention to complete the intangible asset and use or sell it;
the ability to use or sell the intangible asset;
how the intangible asset will generate probable future economic benefits;
the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
the ability to measure reliably the expenditure attributable to the intangible asset during its development.

c. derecognition of intangible assets

d. useful lives of intangible assets

Estimated useful lives of the intangible assets are as follows:

Patents, Trademarks, Product registration, 1- 20 years Technical know how, Software, Licenses and Clinical Trial cost

e. Biological assets

The Group recognises neem plantation as biological assets and are carried at historical cost of acquisition less accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditure on biological assets are added to its book value only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.

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Cost incurred for new plantations are capitalised and depreciated over their estimated useful life which has been ascribed to be 20 years.

1.19 Impairment of tangible and intangible assets

At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest Group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

1.20 Inventories

Inventories other than by products are stated at the lower of cost and net realizable value. Inventories of byproducts are valued at net realisable value. Cost of raw materials and traded goods comprises cost of purchases

after deducting rebates and discounts. Cost of work-inprogress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

Cost of inventories are determined on weighted average basis except in case of raw materials of subsidiary group, Coromandel International Limited relating to Nutrient and allied business and Crop protection determined in FIFO basis and in case of subsidiary Parry Sugars Refinery India Private Limited, cost of raw material of raw sugar, cost of work-in-progress and finished goods of white sugar are determined on the basis of ”specific identification method”.

1.21 provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

1.22 Financial instruments

Financial assets and financial liabilities are recognised when a Group entity becomes a party to the contractual provisions of the instruments.

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financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in statement of profit and loss.

1.23 Financial assets

All recognised financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of the financial assets.

a. Classification of financial assets

the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and
the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
the debt instruments carried at amortised cost include Deposits, Trade Receivables, Loans and advances recoverable in cash.

For the impairment policy on financial assets measured at amortized cost, refer Note 1.23e.

Investment in joint ventures and associates are accounted under equity method.

Impairment on investment in subsidiaries/joint ventures are carried out in accordance with Ind AS 36.

All other financial assets are subsequently measured at fair value.

b. effective interest method

interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

c. Investments in equity instruments at FVtoCI

The Group has elected to carry investment in equity instruments at Fair value through other comprehensive income. On initial recognition, the Group can make an irrevocable election (on an instrument-by-instrument basis) to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments. This election is not permitted if the equity investment is held for trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the ‘Reserve for equity instruments through other comprehensive income’. The cumulative gain or loss is not reclassified to statement of profit and loss on disposal of the investments.

The Group has equity investments which are not held for trading. The Group has elected the FVTOCI irrevocable option for these investments (see note 8). Fair value is determined in the manner described in note 50.9.

Dividends on these investments in equity instruments are recognised in statement of profit and loss when the Group’s right to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably. Dividends recognised in statement of profit and loss are included in the ‘Other income’ line item.

d. Financial assets at fair value through profit or loss (FVtpL)

The Group carries derivative contracts not designated in a hedge relationship at FVTPL. Financial assets at FVTPL also includes assets held for trading.

A financial asset is held for trading if:

it has been acquired principally for the purpose of selling it in the near term; or
on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and has a recent actual pattern of short-term profit-

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taking; or

it is a derivative that is not designated and effective as a hedging instrument or a financial guarantee.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on remeasurement recognised in statement of profit and loss. The net gain or loss recognised in statement of profit and loss incorporates any dividend or interest earned on the financial asset and is included in the ‘Other income’ line item. Dividend on financial assets at FVTPL is recognised when the Group’s right to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.

e. Impairment of financial assets

The Group applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, lease receivables, trade receivables, other contractual rights to receive cash or other financial asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Group in accordance with the contract and all the cash flows that the Group expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). The Group estimates cash flows by considering all contractual terms of the financial instrument through the expected life of that financial instrument.

For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115, the Group always measures the loss allowance at an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Group has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information on a case to case basis.

f. derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or

when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

g. Foreign exchange gains and losses

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period.

For foreign currency denominated financial assets measured at amortized cost and FVTPL, the exchange differences are recognised in statement of profit and loss except for those which are designated as hedging instruments in a hedging relationship.
Changes in the carrying amount of investments in equity instruments at FVTOCI relating to changes in foreign currency rates are recognised in other comprehensive income.
For the purposes of recognizing foreign exchange gains and losses, FVTOCI debt instruments are treated as financial assets measured at amortized cost. Thus, the exchange differences on the amortized cost are recognized in statement of profit and loss and other changes in the fair value of FVTOCI financial assets are recognised in other comprehensive income.

1.24 Financial liabilities and equity instruments

a. Classification as debt or equity

Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

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b. equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Group’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in statement of profit and loss on the purchase, sale, issue or cancellation of the Group’s own equity instruments.

c. Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.

However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies, financial guarantee contracts issued by the Group, and commitments issued by the Group to provide a loan at below-market interest rate are measured in accordance with the specific accounting policies set out below.

c.1. Financial liabilities at FVTPL

Financial liabilities at FVTPL includes derivative liabilities. Non-derivative financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration recognised by the Group as an acquirer in a business combination to which Ind AS 103 applies or is held for trading or it is designated as at FVTPL. There are no non-derivative financial liabilities carried at FVTPL.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in statement of profit and loss. The net gain or loss recognised in statement of profit and loss incorporates any interest paid on the financial liability and is included in the ‘Other income’ line item.

Fair value is determined in the manner described in note 50.9.

c.2. Financial liabilities subsequently measured at amortised cost

c.3. Financial guarantee contracts

Financial guarantee contracts issued by the Group are initially measured at their fair values and, are subsequently measured at the higher of:

the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109
the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 115.

c.4. Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign currency and are measured at amortized cost at the end of each reporting period, the foreign exchange gains and losses are determined based on the amortized cost of the instruments and are recognised in ‘Other income’.

c.5. Derecognition of financial liabilities

The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or have expired. An exchange between with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor)

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Corporate Overview Management Reports

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognised in statement of profit and loss.

1.25 derivative financial instruments & hedge accounting

The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts, interest rate swaps and cross currency swaps. Further details of derivative financial instruments are disclosed in note 50.9

a. Commodity derivatives

Some of the Group’s commodity derivatives are treated as hedges of price risk associated with the cash flow of highly probable forecast purchase and sale of raw and white sugar respectively (cash flow hedges).

The Group documents at the inception of the hedging transaction the economic relationship between hedging instruments and hedged items including whether the hedging instrument is expected to offset changes in cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking various hedge transactions at the inception of each hedge relationship.

The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability.

Commodity derivatives not designated as hedge are accounted for at fair value through profit or loss and are included in other income.

b. other financial derivatives:

The Group designates certain hedging instruments, which include derivatives and non-derivatives in respect

of foreign currency risk, as either fair value hedges, cash flow hedges, or hedges of net investments in foreign operations. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk.

Cash Flow Hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recorded in other comprehensive income and are grouped under head of cashflow hedge reseve. The gain or loss relating to the ineffective portion is recognized immediately in the statement of profit and loss, and is included in the ‘Other income’ line item. The cumulative gain or loss previously recognized in other comprehensive income remains there until the forecast transaction occurs. When the hedged item is a non-financial asset, the amount recognized in other comprehensive income is transferred to the carrying amount of the asset when it is recognized. In other cases the amount recognized in other comprehensive income is transferred to statement of profit and loss in the same period that the hedged item affects statement of profit and loss. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. Any gain or loss recognised in other comprehensive income and accumulated in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in statement of profit and loss. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in the other comprehensive income is transferred to statement of profit and loss, and is included in Other income.

1.26 Cash flow statement

Cash flows are reported using the indirect method, whereby profit/(loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Group are segregated based on the available information. Cash and cash equivalents includes balances in current accounts, cash on hand, cheques, drafts on hand.

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1.27 offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet, where there is a legally enforcable right to offset the recognised amounts and there is intention to settle on net basis or realise the assets and liabilities simultaneously.The legally enforcable right must not be contingent on future events and must be enforcable in the normal course of business and in the event of default, insolvency or bankruptcy of the group or the counterparty.

1.28 Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies the directors of the Group are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

a. Critical accounting judgements

The following are the critical judgments, apart from those involving estimations, that the directors have made in the process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognized in the financial statements.

i. revenue recognition

In making their judgment, the management considered the detailed criteria for the recognition of revenue from the sale of goods set out in Ind AS 115 and, in particular, whether the Group had transferred control over the goods to the buyer.

ii. determination of functional currency

Parry Sugars Refinery India Private Limited (PSRIPL), a subsidiary of the Holding company is domiciled in India. In making their judgement of functional currency, the directors of PSRIPL considered the detailed scenario for the determination of USD as functional currency on the basis of criteria laid down in Ind AS 21 and, in particular in which currency major purchases and sales are made.

iii. Hedge accounting

Accounting for commodity derivative contracts as cash flow hedges of highly probable forcast purchase and sale of raw and white sugar respectively. Judgement in this regard are involved in respect of whether the forecast transaction are highly probable to occur.

b. Key sources of estimation uncertainity

Key assumption concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as given below. During the year pursuant to physical verification, the Parry Sugars Refinery India Private Limited (PSRIPL), a Subsidiary, has identified stock differences aggregating to ` 12,045 Lakh. PSRIPL has estimated the losses are due to various production/input measurement reasons. Refer Note 29A for further details.

i. Fair value measurement and valuation processes

Some of the Group’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Group engages third party qualified valuers to perform the valuation. The management works closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to the model. Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in notes 3 and 50.9.

ii. useful life of property, plant & equipment

The Group reviews the estimated useful lives of Property,plant and equipment at the end of each reporting period. During the current year, there has been no material change in life considered for the assets.

iii. revenue recognition

The Group provides customer incentives, such as rebates, based on quantity purchased, timing of collections etc. Various estimates are made to recognise the impact of rebates and other incentives on revenue. These estimates are made based on historical and forecasted data, contractual terms and current conditions.

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iv. subsidy income

Subsidy income has been recognized when there is reasonable assurance that the Group will comply with all necessary conditions attached to Subsidy including those under the Direct Benefit Transfer system which was introduced by the Government of India.

v. estimation of net realisable value of inventories

Inventories are stated at the lower of cost and net realisable value. In estimating the net realisable value of inventories the Group makes an estimate of future selling prices, subsidy and costs necessary to make the sale.

vi. provision for employee benefits

The Group uses actuarial assumptions to determine the obligations for employee benefits at each reporting period. These assumptions include the discount rate, expected long-term rate of return on plan assets, rate of increase in compensation levels and mortality rates.

vii. provision for taxes

Significant judgments are required in determining the provision for income taxes, including the amount expected to be paid/recovered for uncertain tax positions.

viii. Impairment of tangible assets and Intangible assets

Parry Sugars Refinery India Private Limited, a subsidiary of the Holding Company has been incurring losses during the past 2 years. This is an indicator of potential impairment of carrying amount of property, plant and equipment of the subsidiary. Management has performed a detailed impairment assessment of the property, plant and equipment of the subsidiary and based on the assessment performed no impairment has been deemed necessary. The recoverable amounts have been determined based on value in use calculations which uses cash flow projections. For the Holding Company, management considers each sugar factory to be a cash generating unit (‘CGU’) and has analysed if there is an indicator of impairment. Based on the assessment certain factories of the Group have either been incurring losses for the past several years or non-operating which is an indicator for impairment. Accordingly, the Group has performed a detailed impairment assessment for such factories and based on the assessment performed no impairment provision is deemed necessary.

ix. provisions for doubtful receivables

The Group makes provision for doubtful receivables based on a provision matrix which takes into account historical credit loss experience and adjusted for current estimates.

x. Leases

Ind AS 116 defines a lease term as the noncancellable period for which the lessee has the right to use the underlying asset including optional periods, when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. The Group considers all relevant facts and circumstances that create an economic incentive for the lessee to exercise the option when determining the lease term. The option to extend the lease term is included in the lease term, if it is reasonably certain that the lessee will exercise the option. The Group reassesses the option when significant events or changes in circumstances occur that are within the control of the lessee.

xi. physical verification of raw materials

The raw material inventory of Parry Sugars Refinery India Private Limited (PSRIPL), a subsidiary of the Holding Company, comprising of raw sugar and coal are stored in heaps. The inventories are physically verified by the management of PSRIPL by engaging a surveyor to measure the volume and density to estimate the quantity of physical inventory.

1.29 operating Cycle

Based on the nature of products/activities of the Group and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Group has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

1.30 Contributed equity

Equity shares are classified as equity.Incremental costs directly attributable to the issue of new shares or options are shown in equity as deduction, net of tax, from the proceeds.

1.31 dividend

Provision is made for the amount of any divided declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period

1.32 rounding off amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakh as per the requirement of Schedule III, unless otherwise stated.

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note 2

property, plant and equipment and capital work-in-progress

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
Carrying amounts of:
Freehold land 31,833 32,728
Buildings, road and railway sidings 58,644 60,527
Plant and equipment 2,10,103 2,31,458
Furniture & fixtures and office equipment 4,395 4,132
Vehicles 1,628 1,855
3,06,603 3,30,700
Capital work-in-progress 19,166 6,913
3,25,769 3,37,613
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(` Lakh)
particulars Freehold Buildings, plant and Furniture Vehicles total
land road and equipment & fixtures
railway and office
sidings equipment
(refer note 3)
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particulars	Freehold land	Buildings, road and railway sidings (refer note 3)	plant and equipment	Furniture & fxtures and offce equipment	Vehicles	total
Cost
Balance at april 01, 2019	32,931	75,142	3,54,153	11,389	3,380	4,76,995
Additions pursuant to acquisition of controlling interest in Labelle Botanics LLC	50	368	84	-	-	502
Additions	-	5,240	45,753	1,541	1,009	53,543
Disposals and Adjustments	(232)	(373)	(2,221)	(233)	(299)	(3,358)
Transfer from assets held for sale	-	25	947	4	17	993
Effect of foreign currency exchange differences	(15)	1,708	3,516	33	(2)	5,240
Balance at March 31, 2020	32,734	82,110	4,02,232	12,734	4,105	5,33,915
Additions pursuant to acquisition of controlling interest in CSQM	-	505	493	122	-	1,120
Additions	23	3,399	12,183	1,584	384	17,573
Disposals and Adjustments	(54)	(160)	(3,407)	(410)	(576)	(4,607)
Transfer to investment property	(885)	-	-	-	-	(885)
Transfer from/(to) assets held for sale	-	(1,018)	(13,349)	(193)	(6)	(14,566)
Effect of foreign currency exchange differences	22	1,339	8,429	72	(2)	9,860
Balance at March 31, 2021	31,840	86,175	4,06,581	13,909	3,905	5,42,410

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(` Lakh)

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particulars Freehold Buildings, plant and Furniture Vehicles total
land road and equipment & fixtures
railway and office
sidings equipment
(refer note 3)
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particulars	Freehold land	Buildings, road and railway sidings (refer note 3)	plant and equipment	Furniture & fxtures and offce equipment	Vehicles	total

accumulated depreciation and impairment
Balance at april 01, 2019	4	18,408	1,47,942	8,064	1,996	1,76,414
Disposals and Adjustments	-	(355)	(1,032)	(668)	(252)	(2,307)
Depreciation expense	1	3,064	22,482	1,179	493	27,219
Transfer from assets held for sale	-	4	275	3	11	293
Effect of foreign currency exchange differences	1	462	1,107	24	2	1,596
Balance at March 31, 2020	6	21,583	1,70,774	8,602	2,250	2,03,215
Additions pursuant to acquisition of controlling interest in CSQM	-	231	335	84	-	650
Disposals and Adjustments	-	(140)	(2,500)	(338)	(474)	(3,452)
Depreciation and impairment expense	1	5,080	28,560	1,275	506	35,422
Transfer from/(to) assets held for sale	-	(1,018)	(9,884)	(185)	(4)	(11,091)
Effect of foreign currency exchange differences	-	1,795	9,193	76	(1)	11,063
Balance at March 31, 2021	7	27,531	1,96,478	9,514	2,277	2,35,807

Carrying amount as on March 31, 2020	32,728	60,527	2,31,458	4,132	1,855	3,30,700
Carrying amount as on March 31, 2021	31,833	58,644	2,10,103	4,395	1,628	3,06,603

note:

Details of assets offered as security is provided in Note 21 and 22.
Capital work in progress primarily represents Building and Plant and equipment related work.
Includes Building on leasehold land: Cost: 915 Lakh (2020: 915 Lakh) and Accumulated Depreciation: 356 Lakh (2020: 308 Lakh).
Interest capitalised during the year amounting to Nil (2020: 433 Lakh) is included in work-in-progress.
Refer Note 51 for contractual commitments for acquistion of property, plant and equipment.
Land measuring 446.92 acres (` 75 Lakh) is pending registration in the name of Coromandel International Limited.
Parry Sugars Refinery India Private Limited (PSRIPL), a subsidiary of the Holding Company has carried out impairment assessment of its carrying value of the assets and concluded that no impairment is necessary.

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Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

note 2a - Leases

(i) amounts recognised in the Balance sheet

Carrying amount of right-of-use asset

Carrying amount of right-of-use asset	Carrying amount of right-of-use asset
						(`Lakh)
particulars				as at March 31, 2021		as at March 31, 2020
Factory(includingancillaryassets) (refer note 1)					5,392		5,873
Land (refer note 2 and 3)					27,047		27,401
Buildings					11,081		12,535
Plant & Machinery					1,012		1,265
total					44,532		47,074
							(`Lakh)
particulars	Factory (including ancillary assets) (refer note 1)	Land (refer note 2 and 3)	Buildings		plant & Machinery		total
Cost
Balance at april 01, 2019	6,354	28,442	12,125		1,518		48,439
Additions (non-cash in nature)	-	-	2,734		-		2,734
Balance at March 31, 2020	6,354	28,442	14,859		1,518		51,173
Additions	-	682	1,003		-		1,685
Disposals and Adjustments	-	-	(40)		-		(40)
Balance at March 31, 2021	6,354	29,124	15,822		1,518		52,818
							(`Lakh)
particulars	Factory (including ancillary assets) (refer note 1)	Land (refer note 2 and 3)	Buildings		plant & Machinery		total
accumulated depreciation
Balance at april 01, 2019	-	-	-		-		-
Depreciation expenses	481	1,041	2,324		253		4,099
Disposals and Adjustments	-	-	-		-		-
Balance at March 31, 2020	481	1,041	2,324		253		4,099
Depreciation expenses	481	1,036	2,417		253		4,187
Balance at March 31, 2021	962	2,077	4,741		506		8,286

Note:

The Holding Company has taken a factory on lease including the building and plant and machinery thereon. The Holding Company pays a consolidated rental and accordingly, the consolidated asset is presented. The useful life of the building and plant and machinery is beyond the lease period, hence the entire asset is depreciated over the lease period.
Includes net carrying value of the Land reclassified on adoption of Ind AS 116 “Leases”.
Land admeasuring 324.74 acres (` 23,585 Lakh) is pending execution of lease in the name of Coromandel International Limited.

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Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

Carrying amount of lease liability

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(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Current 3,244 2,917
Non-current 40,001 41,951
total 43,245 44,868
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(ii) amounts recognised in the statement of profit and loss

amounts recognised in the statement of proft and loss
		(`Lakh)
particulars	as at March 31, 2021	as at March 31, 2020
Interest expenses (included in fnance costs)*	4,045	4,086
Expenses relating to short-term leases and leases of low-value assets that are not shown above as short-term leases (included in other expenses)^	1,309	1,293
total	5,354	5,379
*Refer Note 31 - Finance cost

^Refer Note 33 - Other expenses

(iii) extension and termination options

Extension and termination options are included in leases of the Group. These are used to maximise operational flexibility in terms of managing the assets used in the Group’s operations.

note 3 - Investment property

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(Lakh) particulars as at as at March 31, 2021 March 31, 2020 Carrying amounts of: Completed investment properties 3,350 2,489 total 3,350 2,489 ( Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Cost
Balance at beginning of the year 2,608 2,374
Transfer from Property, plant & equipment 885 234
Balance at end of the year 3,493 2,608
(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
accumulated depreciation and impairment:
Balance at beginning of year 119 103
Transfer from Property, plant & equipment - (8)
Depreciation expense 24 24
Balance at end of year 143 119
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Includes Building on leasehold land: Cost: 612 Lakh (2020 - 612 Lakh) and Accumulated Depreciation: 82 Lakh (2020 - 69 Lakh).

All of the Group’s investment properties are held under freehold interests.

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3.1 Fair value of the Group’s investment properties

The following table gives details of the fair value of the Group’s investment properties as at March 31, 2021 and March 31, 2020:

March 31, 2020:
		(`Lakh)
particulars	as at March 31, 2021	as at March 31, 2020
i. Land and Buildings in Tamilnadu	33,406	31,515

The fair value of the Group’s investment properties as at March 31, 2021 and March 31, 2020 have been arrived at on the basis of a valuation carried out by M/s.Value Assessors & Surveyors Private Limited, independent valuers not related to the Group. M/s.Value Assessors & Surveyors Private Limited are registered with the authority which governs the valuers in India, and they have appropriate qualifications and relevant experience in the valuation of properties in the relevant locations. Fair value was derived using the market comparable approach based on recent market/government guideline prices without any significant adjustments being made to the market observable data.

In estimating the fair value of the properties, the highest and best use of the properties is their current use.

For rental income earned and di.rect operation expenses incurred in connection with investment property refer note 28 and note 38.1

note 4 - Goodwill

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(Lakh) particulars as at as at March 31, 2021 March 31, 2020 Carrying amounts of: Goodwill 1,597 3,143 total 1,597 3,143 ( Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Cost
Balance at beginning of the year 3,167 2,570
Additions - 469
Impairment (refer note (a) below) (1,452) -
Effect of foreign currency exchange differences (45) 128
Balance at end of the year 1,670 3,167
(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
accumulated depreciation and impairment:
Balance at beginning of year 24 -
Amortization for the current year 49 24
Balance at end of the year 73 24
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As at March 31, 2021 goodwill of Nil (March 31, 2020: 1,452 Lakh), 1,638 Lakh (March 31, 2020: 1,659 Lakh) and 32 Lakh (March 31, 2020: 32 Lakh) relates to the Sugar, Nutraceuticals and Fertiliser segments respectively. Goodwill on each of the segment arose when the businesses were acquired and has been assessed for impairment and based on the assessment, no impairment has been considered necessary.

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Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

Impairment tests for goodwill:

(a) ramdurg CGu:

The Group has assessed Goodwill for impairment and based on the assessment, Goodwill of 1,452 Lakh has been impaired. Goodwill of 1,452 Lakh represents the goodwill accounted on the acquisition of erstwhile Subsidiary Parrys Sugar Industries Limited (which was a Common control entity) as reflected in the Consolidated Financial Statements of the Group for the year ended March 31, 2015.

The Group has determined each factory location as a cash generating unit (CGU). The entire goodwill is attributable to the Holding Company’s factory located at Ramdurg.

significant estimate: key assumptions used for value-in-use calculations of ramdurg CGu:

The Group tests whether goodwill has suffered any impairment on an annual basis. For the current and previous financial year, the recoverable amount of the CGUs was determined based on value-in-use calculations which require the use of assumptions. The factory at Ramdurg is operated on a leased property. The lease period expires in September 2032 and the arrangement doesn’t contain a renewal clause. Therefore, cash flow projections based on financial budgets approved by management covering a eleven-year and six months period upto the end of lease term.

The following table sets out the key assumptions for the Ramdurg CGU to which entire goodwill is allocated are as follows:

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description assumption approach used to determining values
Sales volume (% annual 17.00% increase in the next financial Based on management’s expectations of
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description Sales volume (% annual	assumption 17.00% increase in the next fnancial	approach used to determiningvalues Based on management’s expectations of
growth rate)	year and a 9.00% increase in the second fnancial year. Thereafter, sales volume is expected to varyat a meagre rate.	market development and past performance.
Sales price (% annual growth rate)	1.00% increase in the next fnancial year. Thereafter, at a rate of 2.00 - 3.00%.	Based on current industry trends, minimum support price announced by government and includinglong-term infation forecasts.
Post-tax discount rate	11.59%	Refect specifc risks relating to the business andgeographyin which theyoperate.

significant estimate

Considering that the goodwill in this case has a limited life as it is relating to leased factory and the minimal headroom available, the Group has impaired the Goodwill of ` 1,452 Lakh.

(b) us nutraceuticals Inc. CGu:

Goodwill of ` 1,638 Lakh represents the goodwill accounted on the acquisition of subsidiary US Nutraceuticals Inc. and acquisition of controlling interest in Labelle Botanics LLC (a 100% subsidiary from October 01, 2019) (refer note 49).

The value in use is arrived at by discounting the cash flow projections using the financial budgets covering a period of three years, and extrapolating it beyond three years using a growth rate of 2.50% p.a. The cash flows have been discounted using a rate of 15.70% p.a. This growth rate does not exceed the long term average growth rate.

The Directors and management have considered and assessed reasonably possible changes for other key assumptions and have not identified any instances that could cause the carrying amount of the US Nutraceuticals Inc. CGU to exceed its recoverable amount.

225

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

note 5 - Intangible assets

e 5 - Intangible assets
							(`Lakh)
particulars					as at March 31, 2021		as at March 31, 2020
Carryingamounts of:
Software and Licenses					213			274
Product registrations					820			572
Technical know-how					46			46
Patents					1,115			1,414
Product development					-			-
Other rights					65			61
					2,259			2,367
								(`Lakh)
particulars	software and Licenses	product registrations	technical know- how	patents	product development	other rights		total
Cost
Balance at april 01, 2019	1,242	1,912	725	3,232	98	118		7,327
Additions pursuant to acquisition of controlling interest in Labelle Botanics LLC	-	-	-	14	-	-		14
Additions	209	63	-	203	-	-		475
Disposals and Adjustments	(999)	1	2	(1)	-	-		(997)
Effect of foreign currency exchange differences	-	(90)	-	207	9	(15)		111
Balance at March 31, 2020	452	1,886	727	3,655	107	103		6,930
Additions	1	428	-	5	-	-		434
Disposals and Adjustments	-	-	-	(63)	-	-		(63)
Effect of foreign currency exchange differences	-	(42)	-	(70)	(3)	14		(101)
Balance at March 31, 2021	453	2,272	727	3,527	104	117		7,200

226

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Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

(` Lakh)

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----- Start of picture text -----

particulars software product technical patents product other total
and registrations know- development rights
Licenses how
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accumulated depreciation and impairment
Balance at april 01, 2019	1,145	1,207	636	1,886	98	44	5,016
Amortisation expense	47	169	45	171	-	3	435
Impairment recognised in statement ofproft and loss	-	-	-	95	-	-	95
Disposals and Adjustments	(1,014)	-	-	-	-	-	(1,014)
Effect of foreign currency exchange differences	-	(62)	-	89	9	(5)	31
Balance at March 31, 2020	178	1,314	681	2,241	107	42	4,563
Amortisation expense	62	170	-	237	-	4	473
Disposals and Adjustments	-	-	-	(32)	-	-	(32)
Effect of foreign currency exchange differences	-	(32)	-	(34)	(3)	6	(63)
Balance at March 31, 2021	240	1,452	681	2,412	104	52	4,941

Carrying amount at March 31, 2020	274	572	46	1,414	-	61	2,367
Carrying amount at March 31, 2021	213	820	46	1,115	-	65	2,259

note 6

Investments in associates accounted for using equity method

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(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
unquoted Investments
(a) Interest in
320 (2020: 320) Equity shares of PHP$100/- each fully paid-up in Sabero 6 2
Organics Philippines Asia Inc.
total Investment in associates accounted for using equity method 6 2
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227

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

note 7

Investments in Joint Ventures accounted for using equity method

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
unquoted Investments
1,60,00,000 (2020: 1,60,00,000) Equity shares of 10 each, fully paid-up in 1,353 824 Yanmar Coromandel Agrisolutions Private Limited Nil (2020: 50,00,000) Equity shares of 10 each, fully paid-up in Coromandel - 1,253
SQM (India) Private Limited (refer note 48)
1,07,00,000 (2020: 1,07,00,000) Equity shares of ` 10 each, fully paid-up in 306 638
Algavista Greentech Private Limited
total Investments in Joint Venture accounted for using equity method 1,659 2,715
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note 8 - other Investments

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
I. Quoted Investments
(a) Investments in Equity Instruments at FVTOCI
82,440 (2020: 82,440) shares of 10 each fully paid up in State Bank 300 162 of India 1,965 (2020: 1,965) shares of 10 each fully paid up in Cholamandalam 11 3
Investment and Finance Company Limited
50,43,138 (2020: 50,43,138) shares of 10 each fully paid up in 1,362 595 Coromandel Engineering Company Limited 2,000 (2020: 2,000) shares of 1 each fully paid up in Carborundum 10 4
Universal Limited
2,50,000 (2020: 2,50,000) shares of 2 each fully paid up in Metkore - 1 Alloys & Industries Ltd 300 (2020: 300) shares of 10 each fully paid up in Chennai Petroleum *
Corporation Limited
(b) Investments in Equity Instruments at FVTPL
13,719 (2020: 13,719) Equity shares of 10 each, fully paid up in Rama 18 3 Phosphate Limited total aggregate market value of quoted investments 1,701 768 II. unquoted Investments (a) Investments in Equity Instruments at FVTOCI 23,600 (2020: 23,600) shares of 10 each fully paid up in Kartik 25 23
Investments Trust Limited
100 (2020: 100) shares of 10 each fully paid up in Travancore Sugars * * and Chemicals Limited 42,410 (2020: 42,410) shares of 100 each fully paid up Murugappa 169 164
Management Services Limited
14,54,400 (2020: 14,54,400) shares of ` 10 each fully paid up in Indian 20,815 19,329
Potash Limited
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228

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

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----- Start of picture text -----

particulars as at as at
March 31, 2021 March 31, 2020
1,00,000 (2020: 1,00,000) shares of 10 each fully paid up in Bio Tech 54 52 Consortium (India) Limited 41,79,848 (2020: 41,79,848) Ordinary shares of Tunisian Dinars (TND) - - 10 each, fully paid up in Tunisian Indian Fertilisers S.A.# 3,600 (2020: 3,600) Equity shares of 10 each, fully paid up in Nandesari 21 18
Environment Control Limited
10,01,000 (2020: 10,01,000) Equity shares of 10 each, fully paid up in 2 2 Ranar Agrochem Limited (formerly Prathyusha Chemicals and Fertilisers Limited) 5,000 (2020: 5,000) shares of 10 each fully paid up in Chola People 223 152
Service (P) Ltd
125 (2020: 125) shares of 25 pence each fully paid up in Hawker Siddley *
Group Limted
10,000 (2020: 10,000) shares of 1 each fully paid up in Indian Dairy * * Entrepreneur and Agricultural Co Limited 266 (2020: 266) shares of 10 each fully paid up in Chennai Wellingdon *
Corporate Foundation
2 (2020: 2) shares of 10 each fully paid up in Murugappa Morgan * * Thermal Ceramics Limited 20 (2020: 20) shares of 100 each fully paid up in Kullittalai Cane Farms *
Private Limited
10 (2020: 10) equity shares of 10 each fully paid in Chola MS General * * Insurance Company Private Limited 12,82,070 (2020: 12,82,070) Ordinary shares of South African Rand 1 - - each, fully paid up in Foskor (Pty) Limited 46 (2020: 46) Class D shares of South African Rand 200,000 each, fully 1,901 1,901 paid up in Foskor (Pty) Limited 16,100 (2020: 16,100) Equity shares of 10 each, fully paid up in 444 247
Bharuch Enviro Infrastructure Limited
2,75,000 (2020: 2,75,000) Equity shares of 10 each, fully paid up in 39 20 Narmada Clean Tech 53,92,160 (2020: 53,92,160) Equity shares of 10 each, fully paid up in 12,391 12,316
A.P. Gas Power Corporation Limited
(b) Other Investment at FVTPL
19,442 (2020: 25,044) units of 1,000 each, fully paid up in Faering 266 174 Capital India Evolving Fund Mutual Funds 3,674 1,536 1,000 (2020: 1,000) shares of 10 each, fully paid up in UTI Master *
Shares
(c) Investments in Debentures at Amortised cost
Tata Capital Financial Services Ltd's NCD 300 300
(d) Others
Share application money pending allottment - at cost 5 4
Loans at FVTOCI 1,609 1,609
total unquoted Investments 41,938 37,847
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229

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

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particulars as at as at
March 31, 2021 March 31, 2020
total other Investments 43,639 38,615
Aggregate amount of impairment in value of investments - -
Current 3,956 1,796
non-current 39,683 36,819
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less than a Lakh

The Ordinary shares of Tunisian Indian Fertilisers S.A., Tunisia (TIFERT) held by the Group have been pledged to secure the obligations of TIFERT to their lenders, except 8,04,848 shares.

**represents loan amounting 1,609 Lakh (2020: 1,609 Lakh) to TIFERT which is compulsorily convertible to equity shares at the end of three years from June 2017, however the same has been extended for a period of further 2 years.

note 9 - trade receivables

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(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Secured, considered good 5,673 10,450
Unsecured, considered good 80,468 2,01,147
Unsecured, considered doubtful 19,986 16,417
1,06,127 2,28,014
Allowance for credit loss (19,986) (16,417)
86,141 2,11,597
Current 86,141 2,11,597
non-current - -
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Debts due by private companies in which the Holding Company’s directors are directors as on March 31, 2021 is Nil (March 31, 2020: 98 Lakh)

The credit period on sales of goods ranges from 10 to 180 days. No interest is charged on trade receivables up to the due date.

The Group uses other publicly available financial information and its own trading records before accepting any customer. The Group’s exposure is continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Also refer note 50.5.

note 10 - Loans

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
(a) Loan Receivables considered good - Unsecured
i. Inter-corporate deposits 1,51,368 42,857
ii. Others 800 1,200
total 1,52,168 44,057
Current 1,51,768 43,257
non-current 400 800
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230

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Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

note 11 - other financial assets

(` Lakh)

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----- Start of picture text -----

non-current Current
particulars as at as at as at as at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
at amortised Cost
(a) Security deposits 478 467 364 629
(b) Interest receivable - - 2,815 2,190
(c) Advances from related parties - - 423 14
(d) Insurance claims - - 598 2,848
(e) Funds available with commodity - - 12,446 8,734
exchange brokers
(f) Advance recoverable in cash
(i) Unsecured and Considered Good 29 - 45 224
(ii) Considered Doubtful 47 47 266 266
Less: Provision for Doubtful Advances (47) (47) (266) (266)
(g) Other receivable - - 414 1,035
at Fair Value
i) not designated as hedges
(a) Mark to Market gain on forward - - 1,234 7,067
contracts
ii) designated as hedges
(a) Mark to Market gain on forward - 5 412 -
contracts
total 507 472 18,751 22,741
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*Includes interest subsidy receivable of 1,422 Lakh (March 31, 2020: 1,799 Lakh)

note 12 - other assets

(` Lakh)

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non-current Current
particulars as at as at as at as at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
(a) Deposit 3,313 2,889 - 8
(b) Capital Advances 2,266 1,633 664 -
(c) Balance with Government Authorities 742 741 22,785 22,533
(d) Advance recoverable in kind
(i) Unsecured and Considered Good 778 1,126 38,378 44,010
(ii) Considered Doubtful 2,017 1,871 758 799
Less: Provision for Doubtful Advances (2,017) (1,871) (758) (799)
(e) Gratuity Fund - - 18 -
(f) Others 149 171 149 145
total 7,248 6,560 61,994 66,696
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231

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

note 13 - Inventories

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(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
(At lower of cost and net realisable value)
(a) Raw materials 98,993 98,666
(b) Raw materials in transit 53,833 22,988
(c) Work-in-process 10,343 8,215
(d) Finished goods 2,06,393 2,49,547
(e) By products 3,995 5,922
(f) Stock-in-trade (goods acquired for trading) 20,164 36,936
(g) Stores and spares 10,674 10,985
(h) Packing materials 2,663 2,146
total 4,07,058 4,35,405
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The cost of inventories recognised as an expense during the year was 13,23,277 Lakh (March 31, 2020: 12,15,997 Lakh). The cost of inventories recognised as an expense includes 427 Lakh (2019-20: 1,103 Lakh) in respect of writedowns of inventory to net realisable value, and has been reduced by 4,254 Lakh (2019-20: 395 Lakh) in respect of reversal of such write downs. Finished goods includes goods in transit to the extent of 447 Lakh (2019-20: 112 Lakh).

The mode of valuation of inventories has been stated in note 1.20.

Refer note 22 for inventories pledged.

note 14 - Cash and cash equivalents

For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand and in banks. Cash and cash equivalents at the end of the reporting period as shown in the statement of cash flows can be reconciled to the related items in the balance sheet as follows:

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
(a) Balances with banks
(i) In Current account 12,288 7,755
(ii) In EEFC account 54 263
(iii) In Deposit account (with original maturity less than 3 months) 60,716 2,554
(b) Cash on hand 41 27
total 73,099 10,599
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note 15 other bank balances

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
(a) Balances with banks in earmarked accounts
- In Unpaid Dividend account 2,374 2,090
- In Deposits having maturity of more than 3 months 3,017 3
- In Bonus Debenture redemption account 778 844
- In Margin Money accounts towards Bank Guarantee 38 288
total 6,207 3,225
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232

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

note 16 - assets classified as held for sale

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a. The Board of Directors of the Holding Company in their meeting held on February 01, 2019 have approved the sale of Property, plant and equipment of Puducherry factory of the Holding Company in next 12 months. The Holding Company has identified potential buyers and is in the process of seeking approvals before concerned authorities. Due to lockdown, there is a delay in obtaining necessary compliance before executing the sale transaction. The directors of the Holding Company expect that the fair value less cost to sell will be higher than the aggregate carrying amount of the related assets and liabilities.Therefore, no impairment loss were recognised on reclassification of the assets as held for sale as at March 31, 2021.
b. The Board of Directors of the Holding Company in their meeting held on December 31, 2020 have approved the sale of property, plant and equipment of the Pettavaithalai factory of the Holding Company in next 12 months. The Company has identified potential buyers and is in the process of seeking approvals before concerned authorities. Since the carrying value of the assets exceed the fair value less cost to sell, an impairment loss of ` 5,064 Lakh was recognised on reclassification of the assets as held for sale as at March 31, 2021.

note 17 - Income tax asset

(` Lakh)

particulars	as at March 31, 2021	as at March 31, 2020
Tax refund receivable	9,915	7,119
total	9,915	7,119
Current tax liabilities

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
Income Tax payable 3,721 4,316
total 3,721 4,316
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note 18 - equity share Capital

(` Lakh)

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233

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

18.1 reconciliation of number of shares and amount outstanding at the beginning and at the end of the reporting period:

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particulars 2020-21 2019-20
no of shares Lakh no of shares Lakh
equity shares of ` 1 each fully paid up
At the beginning of the period 17,69,94,981 1,770 17,69,94,981 1,770
Allotment of shares on exercise of 1,07,410 1 - -
Employee Stock Option (refer note. 44)
at the end of the period 17,71,02,391 1,771 17,69,94,981 1,770
18.2 details of shares held by each shareholder holding more than 5 percent of equity shares in the company:
particulars no of shares held as at
March 31, 2021 March 31, 2020
nos. % nos. %
Ambadi Investment Ltd 6,80,58,444 38.43 6,80,58,444 38.45
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18.2 details of shares held by each shareholder holding more than 5 percent of equity shares in the company:

18.3 terms attached to equity shares:

The Holding company has one class of equity share having a par value of ` 1 per share. Each holder of equity share is entitled to one vote per share. The dividend when proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General meeting. Repayment of capital on liquidation will be in proportion to the number of equity shares held.

Share options granted under the Holding company’s employee share option plan carry no rights to dividends and no voting rights.

18.4 details of shares issued for consideration other than cash during the period of five years immediately preceding the reporting date:

During the year 2017-18, 10,74,861 equity shares of 1 each fully paid up were alloted to shareholders of Parrys Sugar Industries Limited (PSIL) other than the Company in the proportion of 2 equity shares of 1 each in the company for every 13 equity shares of ` 10 each held in the PSIL pursuant to the Scheme of Arrangement between PSIL and the Holding Company .

note 19 - other equity

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
Capital redemption reserve 4,845 4,885
Capital reserve on amalgamation 688 688
Securities premium reserve 46,808 46,023
Debenture redemption reserve 1,416 1,416
Capital reserve 6,067 5,931
Capital reserve on consolidation 6,226 6,226
Central subsidy 7 7
Foreign currency translation reserve 5,563 5,453
Effective portion of cash flow hedges (6,452) (4,611)
Reserve for equity instruments through other comprehensive income 2,578 (328)
General reserve 2,44,562 2,55,289
Share options outstanding reserve 1,123 1,217
Statutory reserve 34 31
Retained earnings 1,43,066 27,951
4,56,531 3,50,178
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234

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

reserVes and surpLus:

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(` Lakh)
particulars Year ended Year ended
March 31, 2021 March 31, 2020
(a) Capital redemption reserve
Opening balance 4,885 4,886
Add: Reduction in control percentage without loss of control (1) (1)
Add: Transfer of net assets to non-controlling interest on account of stake (39) -
sale
Closing balance 4,845 4,885
The capital redemption reserve is created out of the statutory requirement to create such reserve on buyback of shares.
These are not available for distribution of dividend and will not be reclassified subsequently to profit or loss.
(b) Capital reserve on amalgamation 688 688
(c) securities premium reserve
Opening balance 46,023 44,922
Add: Addition during the period 1,548 1,113
Add: Reduction in control percentage without loss of control (16) (12)
Add: Transfer of net assets to non-controlling interest on account of stake (747) -
sale
Closing balance 46,808 46,023
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Securities premium is used to record the premium on issue of shares and the Holding Company’s share of premium arising from shares issued at premium to non-controlling interest, where the subscription by Holding Company and non-controlling interest is not in proportion to their existing shareholding. The reserve is utilised in accordance with the provisions of the act.

(d)	debenture redemption reserve
	Openingbalance	1,416	2,249
	Add: Addition duringtheperiod	-	-
	Less: Utilised during the period	-	833
	Closingbalance	1,416	1,416
Debenture redemption reserve is created as per the statutory requirements to maintain funds to repay the debenture
liability. These will be subsequentlytransferred to Retained Earnings onpayment of the debenture liability.
(e)	Capital reserve
	Openingbalance	5,931	5,931
	Add: Other comprehensive income for theyear, net of income tax	154	-
	Add: Reduction in controlpercentage without loss of control	*	*
	Add: Transfer of net assets to non-controlling interest on account of stake	(18)	-
	sale
	Closingbalance	6,067	5,931
(f)	Capital reserve on consolidation	6,226	6,226
(g)	Central subsidy	7	7

235

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Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

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particulars Year ended Year ended
March 31, 2021 March 31, 2020
(h) Foreign currency translation reserve
Opening balance 5,453 5,171
Add: Other comprehensive income for the year, net of income tax 341 287
Add: Reduction in control percentage without loss of control (5) (5)
Add: Transfer of net assets to non-controlling interest on account of stake (226) -
sale
Closing balance 5,563 5,453
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Add: Other comprehensive income for theyear, net of income tax 341 287 Add: Reduction in controlpercentage without loss of control (5) (5) Add: Transfer of net assets to non-controlling interest on account of stake sale (226) - Closingbalance 5,563 5,453	Add: Other comprehensive income for theyear, net of income tax 341 287 Add: Reduction in controlpercentage without loss of control (5) (5) Add: Transfer of net assets to non-controlling interest on account of stake sale (226) - Closingbalance 5,563 5,453	Add: Other comprehensive income for theyear, net of income tax 341 287 Add: Reduction in controlpercentage without loss of control (5) (5) Add: Transfer of net assets to non-controlling interest on account of stake sale (226) - Closingbalance 5,563 5,453	Add: Other comprehensive income for theyear, net of income tax 341 287 Add: Reduction in controlpercentage without loss of control (5) (5) Add: Transfer of net assets to non-controlling interest on account of stake sale (226) - Closingbalance 5,563 5,453
Exchange differences relating to the translation of the results and net assets of the Group’s foreign operations from their functional currencies to the Group’s presentation currency i.e. Indian Rupee (`) are recognised directly and accumulated in the foreign currency translation reserve. These balances are reclassifed to proft or loss on the disposal of the foreign operations. (i) effectiveportion of cash fow hedges Openingbalance (4,611) 3,926 Add: Other comprehensive income for theyear (1,715) (10,267) Add: Reduction in controlpercentage without loss of control 1 - Add: Transfer of net assets to non-controlling interest on account of stake sale 1 - Add: Other movements duringtheyear* (128) 1,730 Closingbalance (6,452) (4,611)
(i)	effectiveportion of cash fow hedges
	Openingbalance	(4,611)	3,926
	Add: Other comprehensive income for theyear	(1,715)	(10,267)
	Add: Reduction in controlpercentage without loss of control	1	-
	Add: Transfer of net assets to non-controlling interest on account of stake sale	1	-
	Add: Other movements duringtheyear*	(128)	1,730
	Closingbalance	(6,452)	(4,611)

Includes debit of 304 Lakh (2020: credit of 1,862 Lakh) adjusted against carrying value of inventory

The cash flow hedging reserve is used to recognize the effective portion of gains or losses on derivatives that are designated and qualify as cash flow hedges. Amounts are subsequently either transferred to the initial cost of non financial hedged item or reclassified to statement of profit and loss, as appropriate.

reserve for equityinstruments through other comprehensive income
Openingbalance	(328)	(160)
Add: Other comprehensive income for theyear, net of income tax	2,011	(189)
Add: Reduction in controlpercentage without loss of control	20	21
Add: Transfer of net assets to non-controlling interest on account of stake	875	-
sale
Closingbalance	2,578	(328)

Add: Other comprehensive income for theyear, net of income tax 2,011 (189) Add: Reduction in controlpercentage without loss of control 20 21 Add: Transfer of net assets to non-controlling interest on account of stake sale 875 - Closingbalance 2,578 (328)	Add: Other comprehensive income for theyear, net of income tax 2,011 (189) Add: Reduction in controlpercentage without loss of control 20 21 Add: Transfer of net assets to non-controlling interest on account of stake sale 875 - Closingbalance 2,578 (328)	Add: Other comprehensive income for theyear, net of income tax 2,011 (189) Add: Reduction in controlpercentage without loss of control 20 21 Add: Transfer of net assets to non-controlling interest on account of stake sale 875 - Closingbalance 2,578 (328)	Add: Other comprehensive income for theyear, net of income tax 2,011 (189) Add: Reduction in controlpercentage without loss of control 20 21 Add: Transfer of net assets to non-controlling interest on account of stake sale 875 - Closingbalance 2,578 (328)
This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at
fair value through other comprehensive income, net of amounts reclassifed to Retained Earnings when those assets
have	been disposed of.
(k)	General reserve
	Openingbalance	2,55,289	2,37,199
	Add: Addition duringtheyear	1	18,300
	Add: Reduction in controlpercentage without loss of control	(237)	(210)
	Add: Transfer of net assets to non-controlling interest on account of stake	(10,491)	-
	sale
	Closingbalance	2,44,562	2,55,289

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss except to the extent permitted as per Companies Act,2013 and rules made thereunder.

236

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
(l) esop reserve
Opening balance 1,217 1,228
Add: Addition during the year 373 439
Add: Transfer from/(to) other reserves (409) (449)
Add: Reduction in control percentage without loss of control (1) (1)
Add: Transfer of net assets to non-controlling interest on account of stake sale (57) -
Closing balance 1,123 1,217
The above reserve relates to share options granted by the companies in the Group to its employees under its employee
share option plan. Further information about share based payments to employees is set out in note 44.
(m) statutory reserve
Opening Balance 31 30
Add: Movement during the year 3 1
Closing balance 34 31
(n) retained earnings
Opening Balance 27,951 (1,283)
Add: Transfer from Debenture Redemption Reserve (Net) - 833
Profit for the year 44,737 46,787
Remeasurement of defined benefit plans (net of tax) (455) (158)
Consideration on sale of stake in subsidiary (net of tax) 79,538 -
Transfer of net assets to non-controlling interest on account of stake sale (8,538) -
1,43,233 46,179
Less: Appropriations
On account of reduction of control 164 86
Transfer to General Reserve and Statutory reserve 3 18,142
Closing Balance 1,43,066 27,951
The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the
standalone financial statements of the Company and also considering the requirements of the Companies Act, 2013.
Thus, the amounts reported above are not distributable in entirety.
total other equity 4,56,531 3,50,178
Less than a Lakh
note 20 - non-controlling interests
(` Lakh)
particulars Year ended Year ended
March 31, 2021 March 31, 2020
Balance at beginning of year 1,70,680 1,32,456
Share of profit and other comprehensive income for the year 55,767 42,056
Dividend paid including dividend tax (22,288) (4,868)
Add: Transfer to non-controlling interest on account of change in holding 403 294
percentage
Add: Transfer of net assets to non-controlling interest on account of stake sale 19,240 -
(refer note 47A)
Other increase on account of change in reserve 765 742
Balance at end of the year 2,24,567 1,70,680
----- End of picture text -----*

note 20 - non-controlling interests

237

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

details of non-wholly owned subsidiaries that have material non-controlling interests.

The table below shows details of non-wholly owned subsidiaries of the Group that have material non-controlling interests:

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----- Start of picture text -----

name of the subsidiary place of incorporation and proportion of ownership interests and voting
principal place of business rights held by non-controlling interests as at
March 31, 2021 March 31, 2020
Coromandel International India 43.60% 39.53%
Limited
name of the subsidiary place of incorporation and accumulated non-controlling interests as at
principal place of business March 31, 2021 March 31, 2020
Coromandel International India 2,24,567 1,70,680
Limited
----- End of picture text -----

Summarised financial information in respect of each of the Group’s subsidiaries that has material non-controlling interests is set out below. The summarised financial information below represents amounts before intragroup eliminations.

(` Lakh)

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name of the subsidiary Coromandel International Limited
as at as at
March 31, 2021 March 31, 2020
Non-current assets 2,37,435 2,35,498
Current assets 6,52,131 7,79,379
Non-current liabilities 44,322 46,456
Current liabilities 3,30,185 5,36,651
Equity attributable to owners of the Company 2,90,492 2,61,090
Non-controlling interests 2,24,567 1,70,680
----- End of picture text -----

(` Lakh)

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----- Start of picture text -----

name of the subsidiary Coromandel International Limited
Year ended Year ended
March 31, 2021 March 31, 2020
Total income 14,25,701 13,17,673
Total expenses 12,47,646 11,79,900
Share of profit/(loss) of joint ventures and associate 540 78
profit for the year 1,32,915 1,06,504
Profit attributable to owners of the Company 77,670 64,403
Profit attributable to non-controlling interests 55,245 42,101
other comprehensive income for the year 1,309 (114)
Other comprehensive income attributable to owners of the Company 787 (69)
Other comprehensive income attributable to non-controlling interests 522 (45)
total comprehensive income for the year 1,34,224 1,06,390
Total comprehensive income attributable to owners of the Company 78,457 64,334
Total comprehensive income attributable to non-controlling interests 55,767 42,056
Dividends paid to non-controlling interests (22,288) (4,868)
Net cash inflow from operating activities 4,15,015 1,86,197
----- End of picture text -----

238

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

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----- Start of picture text -----

name of the subsidiary Coromandel International Limited
Year ended Year ended
March 31, 2021 March 31, 2020
Net cash outflow from investing activities (1,25,723) (22,193)
Net cash outflow from financing activities (2,26,316) (1,72,310)
net cash inflow/(outflow) 62,976 (8,306)
----- End of picture text -----

Note:

The figures given above are based on the consolidated financials of Coromandel International Limited along with its subsidiaries, joint ventures and associates.

note 21 - non-current borrowings

(` Lakh)

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----- Start of picture text -----

particulars non-Current portion Current Maturities
as at as at as at as at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Unsecured - at amortised cost
i). Deposits (refer note 21.1) 1,866 1,729 - -
ii). Purchase tax deferement loan
161 241 - -
(refer note 21.3)
sub total 2,027 1,970 - -
secured - at amortised cost
i). Bonds/debentures (refer note 21.2) - 29,981 20,000 -
ii). Term loans
- from banks (refer note 21.4) 5,915 24,891 2,035 11,299
- from Government of India - Sugar
- 4,158 - 1,968
Development Fund
sub total 5,915 59,030 22,035 13,267
total 7,942 61,000 22,035 13,267
----- End of picture text -----

21.1 Unsecured - Deposit received from TNPL for supply of bagasse, which is interest free and repayable in December 2024.
21.2 Detail of the secured debentures are given below
a. 1,000 8.25% Secured, Redeemable Non - Convertible Debentures of ` 10,000 Lakh, is Secured by way of first pari passu charge on the movable and/or immovable Fixed Assets of the Pudukottai unit of the Holding Company. The said debenture is redeemable fully at par in April 2021.
b. 1,000 8.40% Secured, Unlisted, Redeemable Non-Convertible Debentures of ` 10,000 Lakh, is secured by charge on the fixed assets of the Parry Sugars Refinery India Private Limited (PSRIPL). The said debenture is redeemable fully at par on April 23, 2021. The Holding Company has given Corporate Guarantee to the Debenture Trustee IDBI Trusteeship Services Limited against this issue.

The Principal INR liability of Debentures mentioned above aggregating to ` 10,000 Lakh has been swapped for USD 14,791,805. The swap trade is effective from June 18, 2018 and termination date is April 23, 2021. Interest liability of 8.40% p.a. in Indian Rupees has been swapped for 4.11% fixed per annum on Effective USD Notional.

21.3 Purchase tax deferrment loan carries nil rate of interest and repayable over 5 years commencing from April 2019.
21.4 Secured Term loan from banks consists of those of Parent company secured by pari passu first charge on movable and immovable fixed assets of (both present and future) of the Parent Company and further, these are secured by second charge on the Parent Company’s current assets.

Breach of loan agreement

There is no breach of loan agreement.

239

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

note 22 - short term borrowings

(` Lakh)

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----- Start of picture text -----

particulars as at as at
March 31, 2021 March 31, 2020
unsecured - at amortised cost (refer note 22.1)
a. Loan repayable on demand
- from banks 243 27,285
b. Term loan from banks 5,504 82,646
c. Others 9,964 30,000
secured - at amortised cost
a. Loan repayable on demand
- from banks (refer note 22.2) 14,174 1,06,503
b. Term loan from banks (refer note 22.3) 19,842 69,129
total 49,727 3,15,563
----- End of picture text -----

22.1 Unsecured loans repayable on demand comprises of buyer’s credit denominated in foreign currency and cash credit. Unsecured short term loan and others includes foreign currency loans from bank and commercial papers.

22.2 Secured loans repayable on demand comprises buyer’s credit denominated in foreign currency, cash credit and purchase tax deferment. Packing Credit Facility of PSRIPL is secured by first pari passu charge on all current asset of the PSRIPL as well as second pari passu charge on all movable fixed assets of the PSRIPL. Cash credit facilities of CIL are primarily secured on the current assets of supplemented by second charge on movable and immovable properties of CIL. Cash credit facilities of US Nutraceuticals Inc. (USN) are secured by substantially all the assets of USN.
22.3 Secured short term borrowing consists of commercial papers carved from the Working Capital limits of the Parent Company.

22.4 Net debt reconciliation for the year*

(` Lakh)

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----- Start of picture text -----

particulars as at as at
March 31, 2021 March 31, 2020
i Opening net debt 3,85,379 5,05,552
ii Proceeds from long term borrowings 6,403 29,104
iii Repayment of long term borrowings (50,980) (24,298)
iv Net increase/(decrease) in working capital borrowing (2,65,550) (1,30,745)
v Interest expense (excluding interest on lease liability) 19,516 38,963
vi Interest reimbursement by the government (602) (2,037)
vii Interest paid (26,069) (44,815)
viii (Increase)/decrease in cash equivalents (61,301) 7,544
ix Increase in cash equivalents on acquisition of controlling interest (1,239) (843)
x Effect of change in foreign exchange rates 40 (240)
xi Non cash items and others 3,462 7,194
Closing net debt 9,059 3,85,379
----- End of picture text -----

Reconciliation excludes cane bills due payable to bank (refer note 24) and lease liability (refer note 2A)

240

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

note 23 - trade payables

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----- Start of picture text -----

(` Lakh)
Current
particulars as at as at
March 31, 2021 March 31, 2020
Acceptances 1,60,101 79,782
Other than Acceptances:
Outstanding dues of micro enterprises and small enterprises 1,308 1,123
Outstanding dues of creditors other than micro enterprises and small 2,32,036 3,16,376
enterprises
Employee related payables 2,740 2,745
total 3,96,185 4,00,026
----- End of picture text -----*

note 24 - other financial liabilities

(` Lakh)

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----- Start of picture text -----

particulars non-current Current
as at as at as at as at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
at amortised cost
(a) Current maturities of long-term debt - - 22,035 13,267
(b) Interest accrued but not due on borrowings - - 3,876 7,947
and acceptance
(c) Unclaimed dividends (refer note 24.1 and - - 2,374 2,090
24.2)
(d) Security deposit - 146 15,933 15,028
(e) Other Liabilities
- Due to Directors - - 71 -
- Cane Bill due payable to Banks - - 51,799 69,802
- Unclaimed debentures - - 778 844
- Capital Creditors
(i) Total outstanding dues of micro - - 5 -
enterprises and small enterprises
(ii) Total outstanding dues of capital - - 1,817 2,546
creditors other than micro enterprises
and small enterprises
- Others - 52 4,990 1,281
Financial liabilities mandatorily measured at
fair value through profit or loss (FVtpL) or fair
value through other comprehensive income
(FVtoCI)
- Foreign currency forward contracts - - 249 2,256
- Commodity futures (refer note 24.3) - - 2,466 4,553
- Currency and interest rate swaps - - 564 1,873
- Derivative desiganated in hedge accounting - - 4 1,229
relationship
total - 198 1,06,961 1,22,716
----- End of picture text -----

241

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

24.1 These amounts represent warrants issued to the Shareholders which remained unpresented as on March 31,2021 and March 31, 2020 respectively
24.2 During the year, Nil (2020: 203 Lakh) was transferred to the Investor Education and Protection Fund by the Holding Company and there are no amount due to to be tranferred to Investor Education and Protection Fund.
24.3 Commodity futures includes marked to market liability on commodity contracts designated as hedges amounting to `1,468 Lakh of PSRIPL.

note 25 - other liabilities

(` Lakh)

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----- Start of picture text -----

particulars non-current Current
as at as at as at as at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
a. Statutory remittances (Contributions to - - 2,018 1,790
PF and ESIC, Withholding Taxes and
Indirect Taxes)
b. Advances and Deposits from Customers - - 8,954 8,499
and Others
c. Deferred revenue arising from interest 483 661 151 137
free deposit and Government grant
total 483 661 11,123 10,426
----- End of picture text -----

note 26 - provisions

(` Lakh)

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----- Start of picture text -----

particulars non-current Current
as at as at as at as at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Provision for employee benefits 2,216 3,037 3,537 3,036
Provision for decommissioning liability# 71 63 - -
total 2,287 3,100 3,537 3,036
----- End of picture text -----*

*The provision for employee benefits includes gratuity, annual leave and vested long service leave entitlements accrued and compensation claims made by employees.

Movement represents unwinding of interest.

note 27 - revenue from operations

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
(a) Sales of Products 15,10,332 13,71,079
(b) Other operating revenues
- Government subsidy (refer note 27.2) 3,45,799 3,36,526
- Revenue from commodity trading (3,933) 157
- Insurance claim 274 22
- Scrap sales 411 659
- Service Income 410 389
- Others 5,452 4,060
total 18,58,745 17,12,892
----- End of picture text -----

242

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

27.1 Refer note 1.28 for critical judgements involved in the determination of the amount and timing of revenue. For details of disaggregated revenue refer note 41.
27.2 Includes production subsidy amounting to 11,635 Lakh (March 31, 2020: 9,144 Lakh) recognised by the Holding company. The Holding Company recognises income based on the export obligation fulfilled. For the year ended March 31, 2021, the export obligation is based on the allocation of 74,359 MT made by the Government.The unfulfilled obligation as at March 31, 2021 based on the allocated quantity amounts to 33,322 MT. The Holding Company has time till September 30, 2021 to fulfill the above mentioned obligation.

note 28 - other Income

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
(a) Interest income earned on financial assets and others that are not designated
as fair value through profit or loss
On asset at amortised cost 4,792 4,512
(b) Dividend Income 58 123
(c) Other gains or losses
- Profit/(loss) on sale and scrap of fixed assets (net) 654 (115)
- Net gain arising on financial assets at FVTPL 322 121
- Net gain arising on derivatives at FVTPL (831) 1,224
- Net gain/(loss) on foreign currency transaction and translation (5,264) (11,020)
(d) Other non-operating income
- Operating lease rental from investment property 1,788 1,893
- Services 264 127
- Insurance claim received 271 109
- Government grant income (refer note 28.1) 602 2,037
- Liabilities/provisions no longer required written back 235 190
- Others 1,424 2,687
total 4,315 1,888
----- End of picture text -----

28.1 The Government grant income represents subvention interest benefit on below market interest rate loans and interest income (Pursuant to Notification no. 1(6)/2018-SP-I).

note 29a - Cost of materials consumed

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Cost of materials consumed 10,45,451 10,32,769
10,45,451 10,32,769
----- End of picture text -----

Cost of materials consumed includes ` 12,045 Lakh representing cumulative adjustment relating to the current and earlier years arising from the inventory differences out of the physical verification in one of its subsidiaries. The Subsidiary Company appointed an independent consultant to find the reasons for the difference. The fact finding report indicated reasons for the difference as errors in considering sugar lost in the processing, production disruptions and others. Based on the fact finding report and the legal opinion obtained with regard to relevant provisions of Companies Act, 2013 it was concluded that there is no indication of misappropriation of inventory or fraud and it is impracticable to determine

243

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

the period specific effect of these errors or the cumulative effect of these errors at the beginning of the current period, amounting to ` 12,045 Lakh which were accounted in Financial Year 2020-21 and in the quarter ended March 31, 2021 as per paragraph 45 of Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”.

note 29B - Changes in Inventories of finished goods, work-in-progress and stock in trade

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
opening stock:
Work-in-progress 8,215 6,447
Finished goods 2,49,547 3,00,176
By products 5,922 5,002
Stock-in-trade 36,936 3,00,620 34,150 3,45,775
Add: Stock acquired on acquisition (refer note 47) 295 -
Closing stock:
Work-in-progress 10,343 8,215
Finished goods 2,06,393 2,49,547
By products 3,995 5,922
Stock-in-trade 20,164 2,40,895 36,936 3,00,620
Foreign Currency Translation Reserve 652 (2,653)
(Increase)/decrease 59,368 47,808
----- End of picture text -----

note 30 - employee benefit expense

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
(a) Salaries, wages and bonus 61,504 55,213
(b) Contribution to Provident and other Funds (refer note 42) 5,310 4,663
(c) Workmen, staff welfare expenses and others 5,131 5,853
(d) Share-based payments to employees (refer note 44) 539 644
total 72,484 66,373
----- End of picture text -----*

note 31 - Finance cost

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
(i) Interest costs:
(a) Debentures 2,430 981
(b) Loans and others 15,081 36,260
(ii) Lease interest cost (refer note 2A) 4,045 4,086
(iii) Other borrowing costs 1,869 1,598
(iv) Unwinding of discounts on provisions 136 124
total 23,561 43,049
----- End of picture text -----*

Net of Nil capitalised (2020: 433 Lakh at 5.01%)

244

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

note 32 - depreciation and amortisation expense

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Depreciation/amortisation/impairment on
a. Property, plant and equipment (refer note below) 28,437 27,219
b. Right-of-use asset 4,187 4,099
c. Investment property 24 24
d. Intangible assets (refer note below) 522 554
total 33,170 31,896
----- End of picture text -----

Note: Includes impairment expense in respect of intangible assets for the year ended March 31, 2021 Nil (March 31, 2020: 95 Lakh).

note 33 - other expenses

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
(a) Consumption of stores, spares and consumables 17,809 14,512
(b) Power and fuel 36,749 33,966
(c) Rent 2,519 3,562
(d) Repairs and maintenance
- Buildings 889 1,007
- Plant and machinery 9,510 9,252
- Others 7,811 18,210 6,681 16,940
(e) Insurance 4,452 3,552
(f) Rates and taxes 2,981 2,589
(g) Packing, dispatching and freight 1,00,247 98,229
(h) Auditors' remuneration (as auditor of Holding Company) 53 73
(i) Directors’ fees and commission 117 28
(j) Sales promotion and publicity 1,429 1,708
(k) Professional Charges 4,115 5,064
(l) Provision for doubtful debts and advances 3,786 1,515
(m) Bad Debts/advances written off 122 46
(n) General manufacturing, selling and administration expenses 50,744 46,673
(o) Corporate Social Responsibility expenditure 2,303 2,151
total 2,45,636 2,30,608
----- End of picture text -----*

Net of freight subsidy pursuant to Notification no.1(14)/2018-S.P. - I dated October 05, 2018 amounting to Nil for the year ended March 31, 2021 (March 31, 2020 - 656 Lakh).

245

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

34 deferred taxes

34.1 deferred taxes assets/(liability)

(` Lakh)

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----- Start of picture text -----

particulars as at as at
March 31, 2021 March 31, 2020
MAT credit entitlement - 8,161
Property, plant and equipment (27,026) (37,281)
Investments at FVTOCI (2,558) (2,092)
Cash flow hedges - -
Tax losses 2,234 15,260
Provision for doubtful debts advances and others 9,777 10,916
net deferred tax asset/(liability) (17,573) (5,036)
Deferred tax asset 708 8,828
Deferred tax liability 18,281 13,864
deferred tax asset/(liability) (17,573) (5,036)
----- End of picture text -----

34.2 unrecognised deductible temporary differences, unused tax losses and unused tax credits

(` Lakh)

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----- Start of picture text -----

particulars as at as at
March 31, 2021 March 31, 2020
Deductible temporary differences, unused tax losses and unused tax credits
for which no deferred tax assets have been recognised are attributable to the
following:
- long-term capital loss 44 44
- unused tax losses 66,896 82,892
total 66,940 82,936
----- End of picture text -----

35 Income tax expense

35.1 Income tax recognised in profit or loss

(` Lakh)

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----- Start of picture text -----

Year ended Year ended
particulars
March 31, 2021 March 31, 2020
Current tax 45,922 38,278
Deferred tax 8,028 (542)
total income tax expense/(gain) recognised in the current year 53,950 37,736
----- End of picture text -----

246

E.I.D.-Parry (India) Limited

Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

35.2 the income tax expense for the year can be reconciled to the accounting profit as follows:

(` Lakh)

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----- Start of picture text -----

Year ended Year ended
particulars
March 31, 2021 March 31, 2020
profit before tax 1,53,932 1,26,624
Income tax expense calculated at 25.17% (2019-20 - 34.944%) 38,745 44,247
Effect of difference in tax rates of subsidiaries 1,097 (13,450)
Effect of income that is exempt from taxation 14 87
Effect of concession (147) (397)
Effect of expenses that are not deductible in determining taxable profit 1,291 407
Effect of unused tax losses and tax offsets not recognised as deferred tax asset 3,339 870
Tax on distributed profits 2,499 1,275
Tax on undistributed profits - 7,183
Effect of change in tax rate - (3,820)
Effect on deferred tax balance due to remeasurement 6,875 847
Adjustments recognised in current year relating to current tax of previous years 1 143
Others 236 344
Income tax expense recognised in profit or loss 53,950 37,736
----- End of picture text -----

The tax rate used for 2020-21 is 25.17%, consequent to adopting the option under section 115BAA of the Income Tax Act, 1961. For the year 2019-20, corporate tax rate of 34.944% is used.

35.3 Income tax recognised in other comprehensive income

(` Lakh)

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----- Start of picture text -----

Year ended Year ended
particulars
March 31, 2021 March 31, 2020
deferred tax
Arising on income and expenses recognised in other comprehensive income:
Net fair value gain on investments in equity shares at FVTOCI (461) (655)
Net gain on designated portion of hedging instruments in cash flow hedges (411) 299
Remeasurement of defined benefit obligation 168 (35)
total income tax recognised in other comprehensive income (704) (391)
----- End of picture text -----

35.4 Consequent to the tax, cash flow optimisation and dividend related matters, the Holding Company reassessed for adopting the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 including retrospective application from April 01, 2019 and has planned to adopt the reduced tax rates under section 115BAA. Accordingly, the Holding Company has remeasured its deferred tax balance based on the rates prescribed in the ordinance and has written off the unutilised Minimum Alternate Tax credit. The charge to the statement of profit and loss and other comprehensive income consequent to moving to a new tax regime is 6,859 Lakh and 74 Lakh respectively.

is`6,859 Lakh and`74 Lakh respectively.
		(`Lakh)
particulars	Year ended March 31,2021	Year ended March 31,2020
Research and Development Expenses	2,214	2,252
		(`Lakh)
particulars	Year ended March 31,2021	Year ended March 31,2020
Amounts contributed to Electoral Trust duringtheyear	-	413

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Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

38.1 direct operating expenses arising from Investment property

(` Lakh)

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----- Start of picture text -----

Year ended Year ended
particulars
March 31, 2021 March 31, 2020
Direct operating expenses arising from investment property that generated 641 562
rental income during the year
Direct operating expenses arising from investment property that did not 23 20
generate rental income during the year
total 664 582
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38.2 Minimum lease receivables on investment properties where Group is a Lessor

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Within 1 year 1,775 1,950
total 1,775 1,950
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39 director’s remuneration:

39.1 Whole time directors remuneration:

(` Lakh)

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The remuneration paid to the Managing Director is in accordance with the provisions of Part II, Section II of Schedule V of the Companies Act, 2013.

39.2 non whole time directors remuneration

(` Lakh)

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40 Impact of Covid 19 pandemic

The spread of COVID 19 has severely impacted businesses around the globe. Due to outbreak of coronavirus global pandemic, Government of India, implemented a Pan India lockdown from March 2020 with certain relaxations and exceptions. The Group’s significant business is in Agriculture and allied products (Fertiliser, Sugar etc) and it has been identified as an essential service. The Group’s factories were operating during the lockdown except for few days in the initial lock down period and was able to conduct the operations with minor delays in certain factories/business.

The Group has made detailed assessment of its liquidity position including the ability of the Group to continue as going concern. The Group has sanctioned credit facilities which can be used as and when necessary and has the ability to repay the debts as and when it falls due.

Management believes that it has taken into account all the possible impact of events arising from COVID 19 pandemic in the preparation of the Consolidated financial statement for year ended March 31, 2021, which are not significant.

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Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

41 segment Information

Information reported to the chief operating decision maker (CODM) for the purposes of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided, and in respect of the following segments tabulated below. The directors of the Holding company have chosen to organise the Group around differences in products and services. No operating segments have been aggregated in arriving at the reportable segments of the Group. Specifically, the Group’s reportable segments under Ind AS 108 are as follows.

operating segment:

Nutrient and allied business	Crop protection	Crop protection	Sugar	Co-generation	Co-generation	Distillery	Nutraceuticals	Nutraceuticals	Others
				as:
North America		Europe			Rest of the world			India (Countryof domicile)

Sales to any individual customers is less than 10% of total sales.

Inter segment transfer pricing:

Inter Segment prices are normally negotiated amongst the segments with reference to cost, market prices and business risks, within an overall optimisation objective for the enterprise.

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----- Start of picture text -----

Lakh)(` 2020 17,12,892 - 17,12,892 1,76,818 4,512 123 (11,547) (43,049) - (82) (151) 1,26,624 38,278 (542) 88,888 13,77,712 1,24,690 15,02,402 6,38,017 3,41,757 9,79,774 31,602 294 31,896
overall - 58 4 2019-20 1,79,526 1,78,357
2021 18,58,745 18,58,745 1,99,398 4,792 (15,755) (23,561) (11,208) 204 1,53,932 45,922 8,028 99,982 10,36,935 2,89,426 13,26,361 5,52,952 90,540 6,43,492 32,879 291 33,170 India
- - - - -
2020 (15,076) (15,076) 2020-21 1,86,105 1,64,061
- - - - -
elimination
2021 (17,102) (17,102) 86,183 1,745
2020 57 - 57 - 2,164 77 - 2019-20
- - - - -
others
113
2021 2,701 Rest of the World 2,359
2020-21 1,05,140
2020 - (655) 8,919 1,390 -
nutraceuticals 2021 - 1,934 7,805 985 2019-20 1,14,374
2020 245 6,103 1,694 1,778 Europe -
distillery 87
2021 3,155 2,359 1,970 2020-21 1,24,758
2020 8,268 36,074 35,435 25,438 21,026 4,829 2,891 3,194
(3,737)
19,140 4,434
Co-generation 2021 9,032 5,163 1,941 3,127 2019-20
127
2,380 (2,070) 9,439
2020
North America 21,394 3,947
sugar
2020-21
1,629 9,489
2021 (6,820)
3,66,853 3,34,438 3,68,482 3,34,565 14,195 13,097 36,161 35,680 25,438 21,026 2,94,455 3,45,520 28,331 35,071 38,949 28,492 31,155 30,874 1,83,837 2,63,288
2020 1,58,665 9,875 1,68,540 22,029 1,51,905 45,370 3,711
Crop protection 2021 1,98,164 10,223 2,08,387 34,681 1,45,472 65,891 4,337
2020 - 12,090
11,55,003 1,50,698 7,83,686 3,15,778
-
business
nutrient and allied 2021 12,23,184 11,55,003 12,23,184 1,68,518 4,95,872 2,91,006 12,971
operating segments revenue and results:
particulars revenue from operations: External customers Inter-segmental sales total results: Operating profit/(loss) Interest income Dividend income Other unallocated expenses (net) Finance costs Exceptional Items Share of profit of Associate Share of profit of Joint Ventures Profit/(loss) before tax Income tax - Current - Deferred net profit after tax other information: Segment assets Unallocated corporate assets total assets Segment liabilities Unallocated corporate liabilities total liabilities Depreciation, amortisation and impairment expense Depreciation, amortisation and impairment expense total depreciation particulars Segment Revenue Non-current asset
41.1 segment reporting 41.2 Geographical information
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250

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Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

Non-current assets exclude those relating to investments, deferred tax assets and non-current financial assets and other assets.

The geographical information relating to the group is provided to the extent the information is readily available in accordance with para 33 of Ind AS 108 on operating segment.

41.3 revenue from major products

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----- Start of picture text -----

(` Lakh)
particulars For the year ended
March 31, 2021 March 31, 2020
Phosphatic Fertilisers 6,66,878 6,37,951
Urea 33,321 25,957
Muriate of Potash 32,065 28,172
Single Super Phosphate 43,873 37,278
Others 1,14,579 1,00,526
Government subsidies 3,32,468 3,25,119
nutrient and other allied business 12,23,184 11,55,003
Crop protection 2,08,387 1,68,540
Sugar 3,68,482 3,34,565
Co-generation 14,195 13,097
Distillery 36,161 35,680
Nutraceuticals 25,438 21,026
Others - 57
total 18,75,847 17,27,968
Less: Inter-segment revenue (17,102) (15,076)
revenue from operations 18,58,745 17,12,892
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42 employee benefit plans

a. defined contribution plans:

The Group has recognised 4,362 Lakh (March 31, 2020: 3,798 Lakh) as expense in statement of profit or loss towards defined contribution plans. The contributions payable to these plans by the Group are at rates specified in the rules of the schemes.

B. defined benefit plans:

i. Gratuity

In respect of Gratuity plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2021. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method. The following table sets forth the status of the Gratuity Plan of the Group and the amount recognized in the Balance Sheet and Statement of Profit and Loss. The Group provides the gratuity benefit through annual contributions to a fund managed by the Life Insurance Corporation of India (LIC).

The Group is exposed to various risks in providing the above gratuity benefit which are as follows:

Interest rate risk: The plan exposes the Group to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).

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

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Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

demographic risk: The Group has used certain mortality and attrition assumptions in valuation of the liability. The Group is exposed to the risk of actual experience turning out to be worse compared to the assumption.

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(` Lakh)
particulars Gratuity (Funded)
2020-21 2019-20
present Value of obligations at the beginning of the year 9,144 8,243
Current service cost 867 811
Interest cost 575 593
Re-measurement (gains)/losses:
- Actuarial gains and losses arising from change in financial assumption (8) 523
- Actuarial gains and losses arising from experience adjustment 356 (70)
Benefits paid (1,357) (955)
present Value of obligations at the end of the year 9,577 9,145
Changes in the fair value of plan assets
Fair value of plan assets at beginning of year 7,869 7,448
Interest Income 540 561
Return on plan assets (603) 321
Contributions from the employer 1,901 500
Benefits paid (1,309) (961)
Fair Value of plan assets at the end of the year 8,398 7,869
amounts recognized in the Balance sheet
Projected benefit obligation at the end of the year 9,577 9,145
Fair value of plan assets at end of the year 8,398 7,869
Funded status of the plans – liability recognised in the balance sheet 1,179 1,276
Components of defined benefit cost recognised in profit or loss
Current service cost 867 811
Net interest expense 35 32
net cost in profit or loss 902 843
Components of defined benefit cost recognised in other comprehensive income
Remeasurement of the net defined benefit liability:
- Actuarial gains and losses arising from change in financial assumption (8) 523
- Actuarial gains and losses arising from experience adjustment 356 (70)
Return on plan assets 603 (321)
net cost in other comprehensive income 951 132
assumptions March 31, 2021 March 31, 2020
Discount rate 6.20-6.84% 6.20-6.84%
Expected rate of salary increases 5-7% 5-7%
Expected rate of attrition 5-8% 5-8%
Mortality (IALM (2012-2014) Ultimate) 100% 100%
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The Group has generally invested the plan assets with the insurer managed funds. The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits.The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.

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Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

Significant actuarial assumptions for the detemination of the defined benefit obligation are discount rate, expected salary increase and employee attrition. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The results of sensitivity analysis is given below:

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----- Start of picture text -----

(` Lakh)
particulars March 31, 2021 March 31, 2020
Discount rate
- 1% increase 639 578
- 1% decrease (732) (657)
Salary growth rate
- 1% increase (665) (601)
- 1% decrease 594 540
Attrition rate
- 1% increase (24) (10)
- 1% decrease 29 11
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Note: Negative represents increase in obligation and positive represent decrease in obligation.

There was no change in the methods of assumptions used in preparing the sensitivity analysis from prior years.

The Group generally purchases insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Group is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in increase in liability without corresponding increase in the asset

The Group’s best estimate of the contribution expected to be paid to the plan during the next year is 1,547 Lakh (2020: 1,938 Lakh).

ii. note on provident Fund:

With respect to employees,who are covered under Providend Fund Trust administered by the companies in the Group, the respective companies shall make good deficiency, if any in the interest rate declared by Trust over statutory Limit. Having regards to the assets of the Fund and the return on the investments, the Group does not expect any deficiency in the foreseeable future.

The actuary has used the Deterministic Approach for the calculations of the Interest Rate Guarantees based on the

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Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

guidance note issued by the Institute of Actuaries of India. The disclosures required under Ind AS 19 is as set out below:

Fund and plan asset position are as follows:

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----- Start of picture text -----

(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Accumulated Account Value of Employee's Fund 5,050 5,138
Interest Rate Guarantee Liability 146 118
Present value of benefit obligation at the end of the year 5,196 5,256
plan asset at the end of the year 5,470 5,593
surplus available (274) (337)
asset recognised in the Balance sheet - -
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The plan assets are primarily invested in government securities, corporate bonds & special deposit schemes.

Assumptions for present value of interest rate guarantee are as follows:

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----- Start of picture text -----

particulars as at as at
March 31, 2021 March 31, 2020
Discount rate 6.48% 6.20%
Expected guaranteed rate(%) 8.50% 8.50%
Attrition rate 5.00% 5.00%
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43 earnings per share:

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Basic Earnings per share (in ) 25.27 26.43 Diluted Earnings per share (in) 25.15 26.34
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43.1 Basic earnings per share

The earnings and weighted average number of equity shares used in the calculation of basic earnings per share are as follows.

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Profit after Taxation (Lakh) 44,737 46,787 earnings used in the calculation of basic earnings per share 44,737 46,787 Number of equity shares of 1 each outstanding at the beginning of the year 17,69,94,981 17,69,94,981
Add: Number of shares issued pursuant exercise of Employees Stock option 1,07,410 -
(a) Number of equity Shares of ` 1 each outstanding at the end of the year 17,71,02,391 17,69,94,981
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254

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Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

particulars	Year ended March 31, 2021	Year ended March 31, 2020
(b) Weighted average number of equity shares	17,70,22,929	17,69,94,981

43.2 diluted earnings per share

The earnings and weighted average number of equity shares used in the calculation of diluted earnings per share are as follows.

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(` Lakh)
particulars Year ended Year ended
March 31, 2021 March 31, 2020
Earnings used in the calculation of basic earnings per share 44,737 46,787
Adjustments (199) (159)
earnings used in the calculation of diluted earnings per share 44,538 46,628
The weighted average number of equity shares for the purposes of diluted earnings per share reconciles to the
weighted average number of equity shares used in the calculation of basic earnings per share as follows:
Weighted average number of equity shares used in the calculation of basic 17,70,22,929 17,69,94,981
earnings per share
Shares deemed to be issued for no consideration in respect of
- employee options 39,011 12,963
Weighted average number of equity shares used in the calculation of diluted 17,70,61,940 17,70,07,944
earnings per share
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44 share based payments

44. 1 employee share option plan of the Holding Company

44.1.1 details of the employee share option plans of the Holding Company

The Holding Company has share option scheme for executives and senior employees of the Company. As approved by the shareholders at previous annual general meetings, ESOP schemes will be administered by the Nomination and Remuneration committee of the Board of Directors.

Each employee share option converts into one equity share of the Holding Company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry.

The following share-based payment arrangement were in existence during the current and prior years

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31.08.2007	18,58,200	31.08.2017	29.46	64.80
29.10.2007	2,32,400	29.10.2017	26.32	75.70
24.01.2008	4,60,600	28.02.2015	21.98	94.15
24.04.2008	1,52,200	24.04.2018	24.59	103.60
28.07.2008	1,30,000	28.07.2018	26.63	92.98
24.09.2008	3,87,000	31.10.2012	24.11	106.30
29.10.2008	1,13,600	29.10.2018	30.73	74.95
20.03.2009	47,800	30.06.2011	32.26	69.13

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Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

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	28.01.2011	3,29,600	28.01.2021	90.05 225.15
	28.01.2011	36,700	01.04.2014	87.86 225.15
	29.04.2011	41,400	29.04.2015	92.46 240.90
	29.04.2011	34,500	29.04.2015	58.18 240.90
	27.07.2011	1,15,000	27.07.2015	105.80 269.10
	24.10.2011	75,700	24.10.2021	80.86 220.90
	24.10.2011	19,300	30.09.2014	30.21 220.90
	06.02.2017	8,43,220	06.02.2026	107.85 289.50
	06.02.2018	75,420	06.02.2027	125.20 319.45
	06.02.2018	1,36,600	06.02.2026	119.15 319.45
	07.08.2018	18,904	07.08.2026	88.84 233.75
	09.11.2018	59,300	09.11.2027	89.24 224.35
	29.07.2019	17,272	29.07.2027	53.42 159.45
	29.07.2019	37,710	29.07.2027	56.23 159.45
	06.11.2019	37,710	28.09.2020	58.46 165.40
total		52,60,136

44.1.2 no new share options were granted during the year

44.1.3 Movements in share options during the year

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----- Start of picture text -----

s. particulars description 2020-21 2019-20
no
options Weighted options Weighted
(numbers) average (numbers) average
exercise price exercise price
per option () per option ()
a Balance at the beginning of the year Options 3,95,911 290.54 2,89,154 284.89
vested and
exercisable
Options 3,41,744 251.36 4,58,484 288.48
unvested
total 7,37,655 272.39 7,47,638 287.09
b Options granted during the year - - 92,692 161.87
c Options vested during the year 1,95,617 285.33 1,62,539 294.04
d Options exercised during the year 1,07,410 278.55 - -
e Options lapsed/cancelled during 71,366 217.16 1,02,675 279.69
the year
f Options outstanding at the end of Options 4,50,462 292.52 3,95,911 290.54
the year vested and
exercisable
Options 1,08,417 219.00 3,41,744 251.36
unvested
total (a+b- 5,58,879 278.26 7,37,655 272.39
d-e)
----- End of picture text -----

Weighted Average remaining contractual life for option outstanding as at March 31, 2021 was 1,540 days (March 31, 2020: 1,782 days)

256

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Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

44.1.4 details of shares excercised during the year

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----- Start of picture text -----

Grant date numbers Exercise date share price at
exercised exercise date
----- End of picture text -----

29.04.2011	4,152	18.11.2020	306.20
28.01.2011	4,320	23.11.2020	323.30
28.01.2011	4,704	23.11.2020	323.30
29.04.2011	4,968	23.11.2020	323.30
06.02.2017	58,051	08.12.2020	336.75
27.07.2011	5,520	08.12.2020	336.75
06.02.2017	24,879	01.03.2021	335.95
06.02.2017	816	15.03.2021	306.20

2 employee share option plan of the Coromandel International Limited (subsidiary)

44.2.1 details of the employee share option plans

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----- Start of picture text -----

particulars employee stock employee stock
option scheme option scheme
2007 (‘esop 2016 (‘esop
2007 scheme’) 2016 scheme’)
----- End of picture text -----

Approval of shareholders	July24, 2007	January11, 2017
Administration
Eligibility	The committee determines which eligible employees will receive options 1,27,85,976 1,45,81,000 1 1 1-5 years 1-4 years Within 6* years from date of vesting Within 5 years from date of vesting Latest available closing market price of the shares on the stock exchange where there is highest trading volume prior to the date of the Remuneration and Nomination Committee approving thegrant.
Number of equityshares reserved under the scheme	1,27,85,976	1,45,81,000
Number of equitysharesper option	1	1
Vesting period	1-5 years	1-4 years
Exercise period	Within 6* years from date of vesting	Within 5 years from date of vesting
Exercise Price Determination

In partial modification of the special resolution passed for establishing ESOP 2007, the shareholders in their meeting held on July 23, 2012 decided to approve the extension of the exercise period of options granted under the ESOP 2007 from three years to six years.

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Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

employee stock option scheme 2007 (‘esop 2007 scheme’):

a) Pursuant to the ESOP 2007 Scheme, the Company granted options which vest over a period of four years commencing from the respective dates of grant. Following are the number of options outstanding during the year:

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----- Start of picture text -----

particulars For the Year ended March 31, 2021 For the Year ended March 31, 2020
no. of options Weighted average no. of options Weighted average
exercise price () exercise price ()
At the beginning of the year 2,150 287.5 28,400 287.5
Exercised 2,150 287.5 26,250 287.5
At the end of the year - - 2,150 287.5
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b) The above outstanding options have been granted in various tranches and have a weighted average remaining life of nil years (2020: 0.01 years). The exercise price of the outstanding options is nil (2020: 287.5). The weighted average share price during the year is 740 (2020: ` 468).

c) Number of options exercisable at the end of the year is nil (2020: 2,500).

The fair values of the option with modified terms were determined using a Black Scholes’ model. Where relevant, the expected life used in the model has been adjusted based on management’s best estimate for the effects of nontransferability, exercise restrictions, and behavioural considerations. Expected volatility is based on the historical share price volatility over the past 3-4 years.

Following assumptions were used for calculation of fair value of grants:

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Dividend yield (%) NA 700
Expected volatility (%) NA 0.39-0.47
Risk free interest rate (%) NA 8
Expected term (in years) NA 4 to 6
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employee stock option scheme 2016 (‘esop 2016 scheme’):

a) Pursuant to the ESOP 2016 Scheme, the Company granted options which vest over a period of four years commencing from the respective dates of grant. Following are the number of options outstanding during the year:

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----- Start of picture text -----

particulars For the Year ended March 31, 2021 For the Year ended March 31, 2020
no. of options Weighted average no. of options Weighted average
exercise price () exercise price ()
At the beginning of the year 17,55,990 357.49 21,54,120 347.68
Granted 2,13,400 734.21 1,26,840 375.90
Exercised 4,22,780 338.84 4,00,170 322.30
Cancelled 1,47,870 354.92 1,24,800 319.65
At the end of the year 13,98,740 420.87 17,55,990 357.49
----- End of picture text -----*

*the weighted average fair value of options granted during the year is 263.33 (2020: 127.91)

b) The outstanding options have been granted in various tranches and have a weighted average remaining life of 1.93 years (2020: 2.39 years). The exercise price of the outstanding options range from 319.65 to 799.35 (2020: 319.65 to 529.40). The weighted average share price during the year is 740 (2020: ` 468).

c) Number of options exercisable at the end of the year 8,61,260 (2020: 8,21,850).

d) The fair values of the option were determined using a Black Scholes’ model. Where relevant, the expected life used in the model has been adjusted based on management’s best estimate for the effects of non-transferability, exercise restrictions, and behavioural considerations. Expected volatility is based on the historical share price volatility over the past 5-6 years.

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Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

Following assumptions were used for calculation of fair value of grants:

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Dividend yield (%) 650 650
Expected volatility (%) 0.32-0.33 0.32-0.33
Risk free interest rate (%) 4.77-5.67 6.14 - 6.43
Expected term (in years) 3.50-6.51 3.51 to 6.51
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45 subsidiaries

details of the Group’s subsidiaries at the end of reporting period are as follows:

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----- Start of picture text -----

name of the company Country of % of voting power (directly/
incorporation indirectly) held on
March 31, 2021 March 31, 2020
Parry Chemicals Limited (PCL) India 56.40 60.47
Parry America Inc. (PAI) USA 56.40 60.47
Coromandel International Limited (CIL) India 56.40 60.47
Sabero Europe BV (Sabero Europe) Netherlands 56.40 60.47
Sabero Australia Pty.Ltd (Sabero Australia) Australia 56.40 60.47
Sabero Organics America S.A. (SOAL) Brazil 56.39 60.46
Sabero Argentina SA (Sabero Argentina) Argentina 53.58 57.45
Coromandel Agronegocios de Mexico, S.A de C.V Mexico 56.40 60.47
(Coromandel Mexico)
Parry Infrastructure Company Private Limited (PICPL) India 100.00 100.00
Parrys Investments Limited (PIL) India 100.00 100.00
Parrys Sugar Limited (PSL) India 100.00 100.00
CFL Mauritius Limited (CML) Mauritius 56.40 60.47
Coromandel Brasil Limitada (CBL), Limited Liability Brazil 56.40 60.47
Partnership
Coromandel Mali SASU (CMS) Mali 56.40 60.47
US Nutraceuticals Inc (USN) USA 100.00 100.00
Labelle Botanics LLC (Labelle) USA 100.00 100.00
Parry Sugars Refinery India Private Limited (PSRIPL) India 100.00 100.00
Parry Agrochem Exports Limited (PAEL) India 100.00 100.00
Liberty Pesticides and Fertilisers Limited (LPFL) India 56.40 60.47
Dare Investments Limited (DIL) India 56.40 60.47
Coromandel International (Nigeria) Limited (CNL) Nigeria 56.39 60.46
Alimtec SA (ASA) Chile 100.00 100.00
Parry International DMCC Dubai 100.00 100.00
Coromandel SQM (India) Private Limited (Subsidiary from India 56.40 -
August 23, 2020)
E.I.D. Parry Europe B.V. Netherlands 100.00 100.00
----- End of picture text -----

In respect of SOAL, Coromandel Mexico, Sabero Australia and CNL the financial year is from January 01, 2020 to December 31, 2020 and accordingly audited financial statements are available up to December 31, 2020. The consolidated financial statements have been adjusted by the Management for significant transactions between January 01, 2021 and March 31, 2021 to align for consolidation purposes.

259

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

In respect of Sabero Argentina, CML, CBL and CMS, the financial year is from January 01, 2020 to December 31, 2020, however, the unaudited financial statements for the period April 01, 2020 to March 31, 2021 has been considered for the purpose of preparation of consolidated financial statements.

In respect of Sabero Europe the financial year is from June 01, 2020 to May 31, 2021. However, un-audited financial statements for the period April 01, 2020 to March 31, 2021 has been considered for the purpose of preparation of consolidated financial statements.

The auditor of the subsidiary, Parry International DMCC (PDMCC), has given an Emphasis of Matter in their audit report relating to uncertainty relating to going concern of the subsidiary. However, PDMCC shall continue as a going concern for the foreseeable future as the Parent Company is willing and able to finance its activities.

46 Financial information in respect of joint ventures and associates that are not individually material:

a. Joint ventures (` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Group’s share of profit/(loss) 204 (151)
Group’s share of other comprehensive income - 1
Group’s share of total comprehensive income 204 (150)
----- End of picture text -----

(` Lakh)

particulars	as at March 31,2021	as at March 31,2020
Aggregate carryingamount of the Group’s interests in thesejoint ventures	1,659	2,715

In respect of Yanmar Coromandel Agrisolutions Private Limited the financial year is from April 01, 2020 to March 31, 2021, however, un-audited financial statements for the period April 01, 2020 to March 31, 2021 has been considered for the purpose of preparation of consolidated financial statements.

b. associate

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
Group’s share of profit/(loss) 4 (82)
Group’s share of other comprehensive income - -
Group’s share of total comprehensive income 4 (82)
(` Lakh)
particulars as at as at
March 31, 2021 March 31, 2020
Aggregate carrying amount of the Group’s interests in these associates 6 2
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In respect of Sabero Organics Philippines Asia Inc., the financial year is from January 01, 2020 to December 31, 2020, however, the unaudited financial statements for the period April 01, 2020 to March 31, 2021 has been considered for the purpose of preparation of consolidated financial statements.

47a During the quarters ended June 30, 2020 and December 31, 2020, the Holding Company had sold 58,50,000 number of equity shares each in two tranches, representing 4% stake in its subsidiary, Coromandel International Limited, aggregating to a value of ` 83,516 Lakh. As per Ind AS 110 - Consolidated Financial Statements, the changes in ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary are equity transactions (i.e. transactions with owners in their capacity as owners). Accordingly, the gain arising out of the transactions over and above the relative interest for the 4% in the subsidiary on the respective dates of sale is recognised directly in equity in the consolidated financial statements.

260

E.I.D.-Parry (India) Limited

Corporate Overview Management Reports Financial Statements

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

47B Business Combination - Conversion of Coromandel sQM (India) private Limited from Joint Venture to subsidiary

Pursuant to Share Purchase Agreement dated July 10, 2020, Coromandel International Limited has acquired 50,00,000 equity shares held by M/s Soquimich European Holdings B.V. for a consideration of ` 1,200 Lakh. Consequent to this acquisition CSQM has become a wholly-owned subsidiary of the Coromandel International Limited with effect from August 24, 2020.

The transaction was accounted in accordance with Ind AS 103 - Business Combinations and allocated the aggregate purchase consideration as below :

The excess of identifiable assets acquired and the liabilities assumed over the consideration paid has been recognised as gain on bargain purchase in capital reserve through other comprehensive income in Consolidated Financial Statements

Details of the purchase consideration, gain on bargain purchase and the net assets are as follows:

a. purchase consideration

(` Lakh)

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----- Start of picture text -----

particulars amount
Cash paid 1,200
total 1,200
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b. assets and liabilites recognised as a result of the acquisition

(` Lakh)

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----- Start of picture text -----

particulars amount
Property, plant and equipment 470
CWIP 17
Current assets, net of current liabilities assumed 2,239
net identifiable assets acquired 2,726
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c. Calculation of gain on bargain purchase

(` Lakh)

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----- Start of picture text -----

particulars amount
Consideration transferred 1,200
Acquisition date fair value of the previously held equity interest 1,260
Less: Net identifiable assets acquired (2,726)
total (266)
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48 exceptional Item

Exceptional items for the year ended March 31, 2021 include the following:

a. The Board of the Holding Company at its meeting held on July 29, 2019 had approved the closure of the sugar unit at Pudukkottai due to non-availability of adequate sugarcane. The Board of the Holding Company has approved the closure of the sugar unit at Pettavaithalai due to non-availability of adequate sugarcane as the expectation of the revival of cane cultivation in the areas is low due to a variety of factors. The Holding Company proposed to transfer the assets of the units to its other units/dispose of other assets as it deemed appropriate. Consequently, the Holding Company has charged 9,628 Lakh to the profit and loss account (representing 6,857 Lakh of impairment charges and ` 2,771 Lakh towards dismantling/transportation expenses) for the year ended March 31, 2021.

261

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

b. The Holding Company has impaired Goodwill of ` 1,452 Lakh relating to Ramdurg factory based on evaluation of the recoverability, being a leased plant.
c. The Holding Company has impaired ` 128 Lakh relating to fixed assets of its Lycopene facility in Pune.
49 Based on and to the extent of information available with the Group under the Micro, small and Medium enterprises development act, 2006 (MsMed act), the relevant particulars as at reporting date are furnished below:

(` Lakh)

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----- Start of picture text -----

particulars Year ended Year ended
March 31, 2021 March 31, 2020
(i) Principal amount due to suppliers under MSMED Act, as at the end of the 1,313 180
year
(ii) Interest accrued and due to suppliers under MSMED Act on the above - -
amount as at the end of the year
(iii) Payment made to suppliers (other than interest) beyond the appointed - -
day, during the year
(iv) Interest paid to suppliers under MSMED Act (other than Section 16) - -
(v) Interest paid to suppliers under MSMED Act (under Section 16) - -
(vi) Interest due and payable to suppliers under MSMED Act, for payments - -
already made
(vii) Interest accrued and remaining unpaid at the end of the year to suppliers - -
under MSMED Act (ii) + (vi)
total 1,313 180
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50 Financial instruments

50.1 Capital management

The Group’s capital management is intended to maximise the return to shareholders for meeting the long-term and short-term goals of the Group through the optimization of the debt and equity balance.

The Group determines the amount of capital required on the basis of annual and long-term operating plans and strategic investment plans. The funding requirements are met through equity and long-term/short-term borrowings. The Group monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Group.

The following table summarises the capital of the Group:

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
Equity 6,82,869 5,22,628
Debt 79,704 3,89,830
Cash and cash equivalents (73,099) (10,599)
net debt 6,605 3,79,231
total capital (equity + net debt) 6,89,474 9,01,859
Net debt to capital ratio 0.01 0.42
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*Debt = Long term borrowing+short term borrowing+current maturities of long term debt

262

E.I.D.-Parry (India) Limited

Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

50.2 Categories of financial instruments

(` Lakh)

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particulars as at as at
March 31, 2021 March 31, 2020
Financial assets
Measured at fair value through profit or loss (FVtpL)
(a) Mandatorily measured:
(i) Equity investments 3,958 1,713
(ii) Derivative instruments not designated in hedge accounting relationship 1,234 7,067
Measured at amortised cost
(a) Cash and bank balances 79,306 13,824
(b) Other financial assets at amortised cost 3,28,112 5,18,578
Measured at FVtoCI
(a) Investments in equity instruments designated upon initial recognition 39,376 36,598
(b) Derivative instruments designated in hedge accounting relationship 412 5
Financial liabilities
Measured at amortised cost 6,00,777 9,34,460
Measured at FVTPL 3,283 9,911
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50.3 Financial risk management objectives

The Group has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Group seeks to minimise the effects of these risks by using financial instruments such as foreign currency forward contracts, commodity contracts, interest and currency swaps to hedge risk exposures and appropriate risk management policies as detailed below. The use of these financial instruments is governed by the Group’s policies approved by the Board of Directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk and the investment of excess liquidity. The Group does not enter into trade financial instruments, including derivative financial instruments, for speculative purposes.

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----- Start of picture text -----

Item primarily affected by risk management policies refer
----- End of picture text -----

Item	Item	Item	Item

Market risk - currency risk	USD balances and exposure towards trade payables, exports, and long-term borrowings	Mitigating foreign currency risk using foreign currency forward contracts, option contracts and swap contracts	Note 50.4.1
Market risk - interest rate risk	Change in market interest rates	Maintaining a combination of fxed and foating rate debt; interest rate swaps for long-term borrowings; cash managementpolicies	Note 50.4.2
Market risk - price risk	Change in prices of commodity and value of equityinstruments	Monitoring forecasts of cash fows; diversifcation of portfolio and commodityfutures	Note 50.4.3
Credit risk	Ability of customers or counterparties to fnancial instruments to meet contractual obligations	Credit approval and monitoring practices; counterparty credit policies and limits; arrangements with fnancial institutions	Note 50.5
Liquidity risk	Fluctuations in cash fows	Preparing and monitoring forecasts of cashfows; cash management policies; multiple-year credit and banking facilities	Note 50.6

263

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

50.4 Market risk

The Group’s financial instruments are exposed to market rate changes. The Group is exposed to the following significant market risks:

Foreign currency risk
Interest rate risk
Price risk

Market risk exposures are measured using sensitivity analysis. There has been no change to the Group’s exposure to market risks or the manner in which these risks are being managed and measured.

50.4.1 Foreign currency risk management

The Group is exposed to foreign exchange risk on account of following:

Exports and imports
Foreign currency borrowings in the form of buyer’s credit, packing credit etc. availed for meeting its funding requirements

The fluctuation in foreign currency exchange rates may have potential impact on the income statement and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the respective consolidated entities.

The Group has a forex policy in place whose objective is to reduce foreign exchange risk by deploying the appropriate hedging strategies (forward covers and options) and also by maintaining reasonable open exposures within approved parameters depending on the future outlook on currencies.

a. the carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities based on gross exposure at the end of the reporting period is as under:

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Currency Liabilities assets
as at as at as at as at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
USD (Lakh) 2,75,412 3,82,323 59,792 67,110 EURO ( Lakh) 102 242 1,887 2,177
GBP (Lakh) - - 29 29 INR ( Lakh) 57,048 27,478 5,211 3,154
AED (Lakh) 5,072 2,450 3,006 3,558 CLP ( Lakh) 48 248 18 25
----- End of picture text -----*

Indian Rupee (INR) liabilities and assets relates to Parry Sugars Refinery India Private Limited, whose functional currency is determined as US Dollars and accordingly INR is disclosed as foreign currency.

264

E.I.D.-Parry (India) Limited

Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

The foreign currency risk on above exposure is mitigated by derivative contracts. The outstanding contracts as at the Balance Sheet date are as follows:

b. Foreign currency forward and currency and interest rate swaps outstanding as at the Balance sheet date:

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----- Start of picture text -----

Currency as at March 31, 2021 as at March 31, 2020
Buy sell Buy sell
Forward contracts
i. Cash flow hedges
USD/INR (in Lakh) - 34,757 - 38,450 EURO/INR ( in Lakh) - - - -
ii. others
USD/INR (in Lakh) 1,39,865 91,854 2,22,425 95,410 EURO/INR ( in Lakh) - 1,378 - 2,822
AED/INR (in Lakh) - - - - Currency and interest rate swaps USD/INR ( in Lakh) - 30,000 - 20,000
----- End of picture text -----

The forward and option contracts have been entered to hedge highly probable forecast sale transactions and trade receivables.The swap contracts have been entered to hedge the currency and interest rate risks on the external commercial borrowings of the Group.

c. Foreign currency sensitivity analysis

The Group is mainly exposed to fluctuations in US Dollar. The following table details the Group’s sensitivity to a 10% increase and decrease against the US Dollar on the outstanding balances. 10% is the sensitivity used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only net outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the Rupee strengthens by 10% against the US Dollar. For a 10% weakening against the US Dollar, there would be a comparable impact on the profit or equity.

(` Lakh)

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----- Start of picture text -----

Currency usd impact on: Year ended Year ended
March 31, 2021 March 31, 2020
Profit or loss (17,468) (15,304)
Other comprehensive income (5,769) (9,361)
Equity (23,237) (24,665)
----- End of picture text -----

50.4.2 Interest rate risk management

The Group issues commercial papers, draws working capital demand Loans, cash credit, foreign currency borrowings, packing credit etc. for meeting its funding requirements.

Interest rates on these borrowings are exposed to change in respective benchmark rates. The Group manages the interest rate risk by maintaining appropriate mix/portfolio of the borrowings.

a. Interest rate swap contract

Parry Sugars Refinery India Private Limited had entered into a Swap contract to exchange fixed interest rate in INR to USD fixed rate on agreed notional principal amounts. Such contracts enable the Group to reduce the interest cost. Details of the fixed to fixed interest rate swap is given below.

265

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

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----- Start of picture text -----

particulars Weighted average interest rate as at as at
March 31, 2021 March 31, 2020
as at as at Lakh Lakh
March 31, 2021 March 31, 2020
Fixed Interest Rate Swap carried at FVTPL 4.41% 4.41% (564) (1,873)
(Fair value)
----- End of picture text -----

b. Interest rate sensitivity analysis

The sensitivity analysis below has been determined for borrowings assuming the amount of borrowings outstanding at the end of the reporting period was outstanding for the whole year. A 10 basis points increase or decrease in case of foreign currency borrowings and 50 basis points increase or decrease in case of rupee borrowings is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rate had been 10 basis points higher/lower in case of foreign currency borrowings and 50 basis points higher/ lower in case of rupee borrowings and all other variables were held constant, the Group’s profit for the year ended March 31, 2021 would decrease/increase by 45 Lakh (March 31, 2020: 744 Lakh)

50.4.3 price risks

a. Commodity price risk

Commodity Price Risk arises from procurement of raw sugar and sale of white sugar by PSRIPL and the consequent exposure to changes in market prices. Exposure to the market prices of the raw sugar procured and white sugar sold is managed through the use of commodity futures and other hedging instruments, including options primarily to convert floating or indexed prices to fixed prices. The use of such contracts to hedge commodity exposures is governed by the Group’s risk management policies and continuously monitored by the Trade desk team. Commodity derivatives also provides a way to meet customer’s pricing requirements whilst achieving a price structure consistent with the Group’s over all pricing strategy.

Some of the PSRIPL’s commodity derivatives are treated as hedge of highly probable forecast purchase and sale of raw and white sugar respectively. All other commodity contracts are marked to market through income statement. The impact of hedging activities is set out below:

The table below illustrates the sensitivity of the Group’s commodity pricing contracts to the price movement of commodities:

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----- Start of picture text -----

particulars Impact on Inr (-10% change on Impact on Inr (+10% change on
outstanding contracts) outstanding contracts)
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Impact on profit or loss for the year (2,425) 78 2,425 (78)
Impact on other comprehensive income (1,344) 5,793 1,344 (5,793)
for the year
Impact on total equity as at end of (3,769) 5,871 3,769 (5,871)
reporting period
----- End of picture text -----

b. equity price sensitivity analysis

The Group is exposed to equity price risks arising from equity investments. Certain of the Group’s equity investments are held for strategic rather than trading purposes. The Group also holds certain other equity investments for trading purposes. The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 1% higher/lower other comprehensive income/equity for the year ended March 31, 2021 would increase/decrease by 394 Lakh ( 366 Lakh for the year ended March 31, 2020) as a result of the changes in fair value of equity investments measured at FVTOCI. The impact of change in equity price on profit or loss is not significant.

266

E.I.D.-Parry (India) Limited

Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

50.5 Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures and control relating to the customer credit risk management. The Group uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and the credit worthiness of its counterparties are periodically monitored and taken up on case to case basis. The Group evaluates the concentration of risk with respect to trade receivables as low, as primarily its a cash and carry business except for institutional customers and government customers and its customers are located in several jurisdictions representing large number of minor receivables operating in independent markets. There is no material expected credit loss based on the past experience. However, the Group assesses the impairment by specific items of trade receivable and creates loss allowance.

The credit risk on cash and bank balances is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

50.6 Liquidity risk management

The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The table below provides details regarding the contractual maturities of non-derivative financial liabilities including estimated interest payments as at March 31, 2021:

(` Lakh)

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----- Start of picture text -----

Particulars Carrying upto 1 year 1-3 year More than 3 total contracted
amount year cash flows
----- End of picture text -----

Accountspayable and acceptances	3,96,185	3,96,304	-	-	3,96,304
Borrowings includinginterest	82,711	75,720	6,545	2,500	84,765
Lease liability	43,245	3,244	6,099	35,787	45,130
Other fnancial liabilities	78,636	76,941	-	1,500	78,441
total	6,00,777	5,52,209	12,644	39,787	6,04,640

The table below provides details of non-derivative financial assets as at March 31, 2021:

Particulars	Carrying amount
Trade and Subsidyreceivables	1,58,027
Other fnancial assets	2,92,725
total	4,50,752

The table below provides details regarding the contractual maturities of non-derivative financial liabilities including estimated interest payments as at March 31, 2020:

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----- Start of picture text -----

Particulars Carrying upto 1 year 1-3 year More than 3 total contracted
amount year cash flows
----- End of picture text -----

Accountspayable and acceptances	4,00,026	4,01,605	-	-	4,01,605
Borrowings includinginterest	3,95,600	3,34,987	57,607	9,369	4,01,963
Lease liability	44,868	2,917	7,844	36,452	47,213
Other fnancial liabilities	93,966	93,966	-	-	93,966
total	9,34,460	8,33,475	65,451	45,821	9,44,747

267

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

The table below provides details of non-derivative financial assets as at March 31, 2020:

(` Lakh)

Particulars	Carrying amount
Trade and Subsidyreceivables	4,58,076
Other fnancial assets	1,12,637
total	5,70,713

The following table details the Group’s maturity analysis for its derivative financial instruments. The table has been drawn up based on the undiscounted estimated cash flows determined by reference to the projected market rates at the end of the reporting period. A positive amount represents an anticipated cash inflow and a negative amount represents an anticipated cash outflow.

March 31, 2021

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----- Start of picture text -----

Particulars Less than 1 1-3 year above 3 years
year
----- End of picture text -----

net settled
- foreign exchange forward contracts	1,378	15	-
- option contracts	-	-	-
- currencyand interest rate swaps	(451)	(113)	-
- commodityfutures	(2,466)	-	-

March 31, 2020

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----- Start of picture text -----

Particulars Less than 1 1-3 year above 3 years
year
----- End of picture text -----

net settled
- foreign exchange forward contracts	3,674	(87)	-
- option contracts	-	-	-
- currencyand interest rate swaps	(1,873)	-	-
- commodityfutures	(4,553)	-	-

50.7 Financial guarantee contract

Coromandel International Limited (CIL), a subsidiary, has provided a sponsor guarantee for USD 41.1 million (proportionate to the shareholding of 15%) towards the borrowings of Tunisian Indian Fertilisers S.A. (TIFERT), a company based in Tunisia, manufacturing phosphoric acid. In March 2017, TIFERT has requested reschedulement of installment due to the lenders and delayed the payment. The same was not agreed to by the Lenders and the acceleration notice was served on TIFERT by lenders on March 28, 2017. The loan instalment was immediately paid on March 30, 2017 by TIFERT however, on April 04, 2017 the lenders followed up with call notice on shareholders towards guaranteed amount (CIL’s share USD 35.25 million outstanding as on March 31, 2017). CIL alongwith other shareholders of TIFERT are in discussion with the Lenders to resolve the matter with regard to liquidity situation and operational improvements of TIFERT and also to find a solution for meeting the future debt obligations of TIFERT.

Based on communication exchanged with Lenders and operational improvement initiatives taken by TIFERT, CIL reasonably considers that TIFERT would be in a position to meet the debt obligations and it is unlikely that such an event of payment under guarantee amount will arise. TIFERT has paid the subsequent half-yearly instalments that were due in September 2017 and March 2018 as per the payment schedule. The sponsor guarantee was valid upto March 31, 2018. CIL’s obligation under this financial guarantee if that amount is claimed by the counterparty to the guarantee is subject to a maximum of 10,299 Lakh (March 31, 2020: 13,707 Lakh).

268

E.I.D.-Parry (India) Limited

Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

50.8 Financing facilities

The Group has access to financing facilities of which 5,94,134 Lakh (as at March 31, 2020: 5,23,021 Lakh) were unused at the end of the reporting period. The Group expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets.

50.9 Fair value measurements

Some of the Group’s financial assets and financial liabilities are measured at fair value at the end of the reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation techniques and inputs used):

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----- Start of picture text -----

Financial assets/financial liabilities Fair Value Fair value Valuation
as at as at hierarchy techniques &
March 31, March 31, key inputs used
2021 2020
1) Foreign currency forward contracts 1,393 3,587 Level 2 Refer Note 3
2) Currency and Interest rate swap (564) (1,873) Level 2 Refer Note 3
contracts
3) Commodity future contracts (2,466) (4,553) Level 1 Refer Note 2
4) Investments in quoted equity 1,683 765 Level 1 Refer Note 2
instruments at FVTOCI
5) Investments in quoted equity 18 3 Level 1 Refer Note 2
instruments at FVTPL
6) Investments in unquoted equity and 37,693 35,833 Level 3 Refer Note
other instruments at FVTOCI 4(a) & 4(c)
7) Investments in unquoted Mutual Funds 3,674 1,536 Level 1 Refer Note 2
at FVTPL
8) Investments in unquoted equity and 266 174 Level 3 Refer Note 4(b)
other instruments at FVTPL
----- End of picture text -----*

*positive value denotes financial asset (net) and negative value denotes financial liability (net)

notes:

There were no transfers between Level 1 and 2 in the period.
The Level 1 financial instruments are measured using quotes in active market
The following table shows the valuation technique and key input used for Level 2:

Financial Instrument	Valuation technique	KeyInputs used
Foreign currency forward contracts, currency and interest rate swap	Discounted Cash Flow	Forward exchange rates, contract forward and interest rates, observable yield curves.

269

Annual Report 2020-21

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

The following table shows the valuation technique and key input used for Level 3:

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----- Start of picture text -----

Financial Instrument Valuation Key Inputs used sensitivity
technique
----- End of picture text -----

Financial Instrument	Valuation technique	Key Inputs used	sensitivity
(a) Investments in unquoted equity instruments at FVTOCI	Market Multiple Approach	Discount for lack of marketability, determined by reference to the share price of listed entities in similar industries, ranging from 30% to 50% (as at March 31, 2020: 30% to 50%)	A 5% increase/decrease in the discount for lack of marketability used in isolation would decrease/ increase the carrying amount by `823 Lakh (as at March 31, 2020:<br>`634 Lakh)
(b) Investments in unquoted venture capital fund at FVTPL	Net Asset Value (NAV) method	The Group uses net asset value (NAV) as reported by the venture capital fund for its valuation purpose.	A 10% increase/decrease in the value of unquoted investments of the fund would increase/decrease the carrying amount of investment by`15 Lakh (March 31, 2020:`13 Lakh).
(c) Investments in unquoted equity instruments at FVTOCI	Discounted Cash Flow Method	Long-term growth rates, taking into account management’s experience and knowledge of market conditions of the specifc industries, ranging from 0% to 3% (as at March 31, 2020: 0% to 2%) Weighted average cost of capital (WACC) as determined ranging from 13% to 17% (as at March 31, 2020: 12% to 15%)	If the long-term growth rates used were 100 basis points higher/ lower while all the other variables were held constant, the carrying amount would increase/decrease by`1,203 Lakh (as at March 31,<br>2020:`1,766 Lakh) A 100 basis points increase/ decrease in the WACC or discount rate used while holding all other variables constant would decrease/increase the carrying amount by`1,335 Lakh (as at<br>March 31, 2020:`1,427 Lakh)

Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)

(` Lakh)

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particulars Fair value as at as at
hierarchy March 31, 2021 March 31, 2020
Carrying Fair value Carrying Fair value
amount amount
Financial assets
Financial assets at amortised cost:
- Trade receivables Level 2 86,141 86,141 2,11,597 2,11,597
- Cash and cash equivalents Level 2 73,099 73,099 10,599 10,599
- Bank balances other than cash and cash Level 2 6,207 6,207 3,225 3,225
equivalents
- Loans Level 2 1,52,168 1,52,206 44,057 44,056
- Government subsidies receivable Level 2 71,886 71,886 2,46,479 2,46,479
- Investments at amortized cost Level 2 305 331 304 307
- Other financial assets Level 2 17,612 17,612 16,141 16,141
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270

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Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

(` Lakh)

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particulars Fair value as at as at
hierarchy March 31, 2021 March 31, 2020
Carrying Fair value Carrying Fair value
amount amount
Financial liabilities
Financial liabilities at amortised cost:
- Borrowings Level 2 82,711 82,761 3,95,600 3,95,755
- Trade payables Level 2 3,96,185 3,96,185 4,00,026 4,00,026
- Lease liability Level 2 43,245 43,513 44,868 45,234
- Other financial liabilities Level 2 78,636 78,636 93,966 93,966
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In case of trade receivables, cash and cash equivalents, trade payables, short term borrowings and other financial assets and liabilities it is assessed that the fair values approximate their carrying amounts largely due to the shortterm maturities of these instruments.
The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

reconciliation of Level 3 fair value measurements for the year ended March 31, 2021:

(` Lakh)

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particulars Investments in Investments in total
unquoted instruments unquoted venture
at FVtoCI capital fund at FVtpL
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Openingbalance	35,833	174	36,007
Totalgains or losses:
- inproft or loss	-	(56)	(56)
- in other comprehensive income	1,861	-	1,861
Purchases	-	154	154
Sold	-	(6)	(6)
Closingbalance	37,694	266	37,960

reconciliation of Level 3 fair value measurements for the year ended March 31, 2020:

(` Lakh)

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particulars Investments in Investments in total
unquoted instruments unquoted venture
at FVtoCI capital fund at FVtpL
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Openingbalance	34,177	324	34,501
Totalgains or losses:
- inproft or loss	-	(96)	(96)
- in other comprehensive income	1,660	-	1,660
Purchases	-	16	16
Sold	-	(70)	(70)
Closingbalance	35,837	174	36,011

271

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Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

note 51 - Contingent liabilities

(` Lakh)

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particulars 2020-21 2019-20
a. Commitments
(a) Capital expenditure commitment 16,486 14,363
(b) Commitment towards investment - 1,200
b. other monies for which the Group is contingently liable
(a) Letters of Credit and Bank Guarantees established for purchases of raw 40,824 51,985
materials, spares and capital goods/supply of goods
(b) Income tax demands which are under various stages of appeal (refer 6,331 10,439
note 51.3 & 51.4)
(c) Claims against the Group for Sales tax, Excise Duty and others including 6,136 6,380
industrial disputes (refer note 51.3)
(d) Cane price (refer note 51.1) 215 254
(e) Electricity related matters 752 -
(f) Other claims against the Group not acknowledged as debts 27,628 5,657
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51.1 The Tamilnadu Government declared State Advisory Price (SAP) for the sugar year 2013-14,2014-15 and 2015-16. The Holding Company has challenged the right of State Government to declare the SAP in the Hon’ble High Court of Madras. The matter is subjudice.
51.2 Future cash outflows in respect of the above referred matters are determinable only on receipt of judgements/decisions pending at various forums/authorities.
51.3 The Income Tax Department/Commercial Tax Department/Central Excise and Service Tax and GST Authority has filed appeal against the favorable order passed by lower forum in favor of the Holding Company in appropriate appellate forum to the extent of ` 2,231 Lakh. It is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.
51.4 The Income Tax Department has been adjusting the demand orders against other refunds receivable by the Holding Company in various assessment years, and accordingly contingent liability of the Holding Company does not include interest, as applicable.
51.5 Certain industrial disputes are pending before Tribunal/High Courts. The liability of the Group in respect of these disputes depends upon the final outcome of such cases and the quantum of which is not currently ascertainable.

note 52 - related party disclosure for the year ended March 31, 2021

52.1 Investing party & its Group

i) Ambadi Investment Limited (Investing Party)
ii) Parry Enterprises India Limited
iii) Parry Agro Industries Limited

52.2 Joint Venture entities

i) Coromandel SQM India Private Limited (upto August 23, 2020)
ii) Yanmar Coromandel Agrosolutions Private Limited
iii) Algavista Greentech Private Limited

52.3 associate entities

i) Labelle Botanics LLC (upto October 01, 2019)
ii) Sabero Organics Philippines Asia Inc.

272

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Financial Statements

Corporate Overview Management Reports

notes ForMInG part oF tHe ConsoLIdated FInanCIaL stateMents

52.4 others related parties

i) Parry Group Staff Provident Fund

ii) EID Parry Executive Staff Pension and Assurance scheme

iii) Parry Group Gratuity Fund

52.5 Key Management personnel

i) Mr. S. Suresh, Managing Director

52.6 transactions with related parties

(` Lakh)

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particulars Year ended Year ended
March 31, 2021 March 31, 2020
i) sale of finished goods/raw materials/services
Coromandel SQM India Private Limited 268 298
Parry Agro Industries Limited 23 13
Algavista Greentech Private Limited 240 182
ii) purchase of finished goods and services
Coromandel SQM India Private Limited 2,400 4,195
Labelle Botanic LLC - 1,086
Parry Enterprises India Limited 170 1,240
Algavista Greentech Private Limited 2 -
iii) purchase of assets and spare parts
Yanmar Coromandel Agrosolutions Private Limited 34 36
iv) receipt of services
Sabero Organics Philippines Asia Inc. 46 22
Yanmar Coromandel Agrosolutions Private Limited - 1
Parry Enterprises India Limited 57 256
Algavista Greentech Private Limited 3 16
Parry Agro Industries Limited - 1
v) rendering of services
Parry Enterprises India Limited 60 83
Parry Agro Industries Limited 50 50
Algavista Greentech Private Limited 78 125
Coromandel SQM India Private Limited 2 4
vi) expenses reimbursed by
Coromandel SQM India Private Limited - 54
Yanmar Coromandel Agrisolutions Private Limited - -
Parry Enterprises India Limited - 3
vii) deputation charges received
Algavista Greentech Private Limited 5 -
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Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

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particulars Year ended Year ended
March 31, 2021 March 31, 2020
viii) Investment made
Equity shares of Algavista Greentech Private Limited - 410
Equity shares of Yanmar Coromandel Agrisolutions Private Limited - 300
ix) employee related contribution
Parry Group Staff Provident Fund 225 216
EID Parry Executive Staff Pension and Assurance Scheme 257 335
x) Closing balances - debit/(credit)
Coromandel SQM India Private Limited - (374)
Yanmar Coromandel Agrosolutions Private Limited (11) (19)
Parry Agro Industries Limited (16) (15)
Parry Group Staff Provident Fund (18) (60)
Sabero Organics Philippines Asia Inc. 6 6
Algavista Greentech Private Limited 449 172
EID Parry Executive Staff Pension and Assurance scheme (25) (26)
Parry Enterprises India Limited 17 (1)
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274

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Financial Statements

Corporate Overview Management Reports

	(`Lakh)	share in total comprehensive income	as % of consolidated total comprehensive income amount		-15% (14,655)		77% 77,389	* 3	* 17	* 203	* 415	* 19	* 65	* 1	-16% (15,960)	* 18			* (51)	* (1)	- -	* (6)	* (20)		* -	1% 595	* (20)	* 27

		share in other comprehensive income	as % of consolidated other comprehensive income amount		129% 1,110		79% 674	- -	- -	24% 204	44% 380	- -	6% 52	- -	-248% (2,130)	* 1			-4% (35)	* 1	- -	* (1)	1% 12		* (1)	-7% (63)	* (3)	* (2)

		share in proft or loss	as % of consolidated proft or loss amount		-16% (15,765)		77% 76,715	* 3	* 17	* (1)	* 35	* 19	* 13	* 1	-14% (13,830)	0% 17			* (16)	* (2)	- -	* (5)	* (32)		* 1	1% 658	* (17)	* 29
53 disclosure of additional information as required by the schedule III	As at and for the year ended March 31, 2021	name of the entity in the Group net asset	as % of consolidated net assets amount	Parent Company	E.I.D.-Parry (India) Limited 26% 1,78,262	subsidiaries - Indian	Coromandel International Limited 42% 2,84,194	Liberty Pesticides and Fertilisers Limited * 159	Parry Chemicals Limited * 950	Dare Investments Limited * 362	Parry Infrastructure Company Private Limited * 1,754	Parrys Sugar Limited * 346	Parrys Invesments Limited * 456	Parry Agrochem Exports Limited * 32	Parry Sugars Refnery India Private limited -3% (23,083)	Coromandel SQM (India) Private Limited (w.e.f * 1,547	August 24, 2020)	Subsidiaries - Foreign	Sabero Organics America S.A. * 72	Sabero Australia Pty Ltd, Australia * 2	Sabero Europe B.V. - -	Sabero Argentina S.A. * (1)	Coromandel Agronegocios de Mexico, S.A de * 83	C.V.	Coromandel International (Nigeria) Limited * 1	Parry America Inc. * 2,239	CFL Mauritius Limited * 88	Coromandel Brasil Limitada, Limited Liability * 26	Partnership

275

Annual Report 2020-21

share in total comprehensive income	as % of consolidated total comprehensive income amount	* (1)	* (133)	1% 1,290	-4% (4,483)	* 389	- -		* 4		* 298	* (332)		* 2	56% 55,767	100% 1,00,840

share in other comprehensive income	as % of consolidated other comprehensive income amount	- -	-30% (259)	43% 372	3% 24	- -	- -		- -		- -	- -		- -	60% 522	100% 858

share in proft or loss	as % of consolidated proft or loss amount	* (1)	* 126	1% 918	-5% (4,507)	* 389	- -		* 4		* 298	* (332)		* 2	56% 55,245	100% 99,982

net asset	as % of consolidated net assets amount	* 4	1% 7,048	1% 3,522	* (2,097)	* 1,264	- -		- -		* 763	* 306		* 3	33% 2,24,567	100% 6,82,869

name of the entity in the Group		Coromandel Mali SASU	US Nutraceuticals Inc	Alimtec S.A.	Parry International DMCC	Labelle Botanics LLC	E.I.D. Parry Europe B.V.	Joint Ventures - Indian	Coromandel SQM (India) Private Limited (upto	August 23, 2020)	Yanmar Coromandel Agrisolutions Private Limited	Algavista Greentech Private Limited	Associate - Foreign	Sabero Organics Philippines Asia Inc	Non-controlling interest	total	* represents less than 1% or`1 Lakh

276

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Financial Statements

Corporate Overview Management Reports

Notes formiNg part of the CoNsolidated fiNaNCial statemeNts

54 During the current year ended March 31, 2021, pursuant to the requirements of SEBI circular no. SEBI/HO/DDHS/DDHS/ CIR/P/2019/115 dated October 22, 2019, the Parent Company and Coromandel International Limited, a subsidiary, have listed commercial papers on a recognised stock exchange.
55 The figures for the previous year have been reclassified/regrouped wherever necessary for better understanding and comparability.
56 approval of Ind as financial statements

The Ind AS financial statements were reviewed and recommended by the Audit Committee and has been approved by the Board of Directors in their meeting held on June 29, 2021.

In terms of our report attached

For and on behalf of the Board of Directors

For price Waterhouse Chartered accountants LLp

Firm Registration Number: 012754N/N500016 Chartered Accountants

s. suresh V. ravichandran Managing Director Chairman DIN: 06999319 DIN: 00110086

Baskar pannerselvam

Partner Membership Number: 213126 Chennai Date: June 29, 2021

Biswa Mohan rath s. rameshkumar Company Secretary Chief Financial Officer

Chennai Date: June 29, 2021

277

Annual Report 2020-21

E.I.D.-PARRY (INDIA) LIMITED ‘DARE HOUSE’, 234, N.S.C. BOSE ROAD, CHENNAI - 600 001 PH : + 91 44 2530 6789 FAX : + 91 +44 2534 0858 www.eidparry.com 30 E.I.D.-Parry (India) Limited

==> picture [60 x 44] intentionally omitted <==

AI assistant

E.I.D. Parry (India) Ltd. — Annual Report 2021

60326_rns_2021-08-21_2a065858-ed1f-42e7-807a-4bf4f3e12688.pdf

Ref: ISIN - INE126A01031

Harvesting Value

Financial Statements

Harvesting Value

Financial Highlights Ten Years at a Glance

Regrouped based on Ind AS.

Cane crush (LMT)

Recovery%

Sugar Produced (LMT)

Cogen Units Sold (LU)

Cogen Units Produced (LU)

Alcohol Sold (LL)

Alcohol Produced (LL)

Managing Director’s Message

Dear Shareholder,

Board Of Directors

Mr. V. Ravichandran, Chairman

Mr. S. Suresh, Managing Director

Mr. Ajay B Baliga, Director

Mr. V. Manickam, Director

Mr. Ramesh K B Menon, Director

Dr. R. cā Godbolé, Director

Mr. M. M. Venkatachalam, Director

Mr. T. Krishnakumar, Director

Keeping cane at the core

Initiatives

Weaving flexibility across adjacencies

Ethanol

Cogeneration

Manufacturing Excellence

Value Added Products

Many shades of white

Consumer centric product portfolio

Retail business

More nutra is the new normal

Fortification and growth

Spirulina

Chlorella

Flomentum

Assets ought to earn

We are E.I.D.-Parry

EID Parry’s Many Firsts

Products & Customizations

USP

Sugar

Nutraceuticals

About Murugappa Group

Our vision and mission

Awards

2018-19

2019–20

CORPORATE INFORMATION

BOARD OF DIRECTORS

REGISTERED OFFICE

AUDITORS

BANKERS

COMPANY SECRETARY

INVESTOR CONTACTS

CORPORATE MANAGEMENT TEAM

Registrar and Transfer Agent

COMPANY

Secretarial Division

upto August 12, 2021

NOTICE

ORDINARY BUSINESS:

1. Adoption of Standalone Financial Statements

2. Adoption of Consolidated Financial Statements

3. Re-appointment of Director

SPECIAL BUSINESS:

4. Reappointment of Independent Director

5. Appointment of Independent Director

6. Remuneration of Cost Auditors

Registered Office:

NOTES

22. Information on Remote e-voting and other information: Remote e-voting :

Individual shareholders holding shares of the Company in Demat mode:

Securities held with NSDL

E.I.D. Parry (India) Ltd. Annual Report 2021