Indag Rubber Ltd. — AGM Information 2021

Sep 3, 2021

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3 September, 2021

BSE Limited (Company code‐1321) Phiroze Jeejeebhoy Towers, (Scrip code‐509162) Dalal Street, Mumbai‐400001

Subject: Notice of the 42[nd] Annual General Meeting and Annual Report.

Dear Sir,

Pursuant to the provisions of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed following:

1. Notice of the 42[nd] Annual General Meeting (AGM) scheduled to be held on Thursday, the 30[th] Day of September, 2021 at 03.30 P.M. (IST) through VC/OAVM.

2. Annual Report of the Company for the financial year ended March 31, 2021.

Kindly arrange to take the above information on your records.

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Encl: as above

• BOARD OF DIRECTORS

Mr. Nand Khemka

(Chairman cum Managing Director)

Mr. Prithvi Raj Khanna

Ms. Bindu Saxena

Mr. Harjiv Singh

Mr. Shiv Vikram Khemka

Mr. Uday Harsh Khemka

Mr. Raj Kumar Agrawal

(w.e.f. June 15, 2021)

Mr. Vijay Shrinivas

(CEO & Whole-Time Director w.e.f. June 01, 2021)

Mr. Kewal Krishan Kapur (CEO & Whole-Time Director till May 31, 2021)

Mr. Ranjitha Parameswar (till March 31, 2021)

• REGISTERED OFFICE

• WORKS

• BANKERS

11, Community Centre, Saket, New Delhi-110017

Village Jhiriwala, Hadbast No. 73, Nalagarh, Dist.-Solan (HP)-174101

1. State Bank of India

2. Kotak Mahindra Bank

3. STATUTORY AUDITORS

4. INTERNAL AUDITORS

5. COST AUDITORS

6. SECRETARIAL AUDITORS

Khanna & Annadhanam (Registration No. 001297N) Chartered Accountants 706, Akash Deep Building, 26-A, Barakhamba Road, New Delhi – 110001

Ernst & Young LLP (LLP Identity No. AAB-4343) Chartered Accountants 4[th] -5[th] Floor, Plot No. 2B, Tower 2, Sector 126, Noida - 201304

Shome & Banerjee (Registration No. 000001) Cost Accountants Pocket-C, 211B, Siddhartha Extension, New Delhi -110014

RMG & Associates (Registration No. P2001DE16100) Company Secretaries 207, Suchet Chambers, 1224/5, Bank Street, Karol Bagh, New Delhi – 110005

CONTENTS

	CONTENTS
S. No.	Particulars	Page No.
1.	Notice	03
2.	Notice to Shareholders/ Investors for Unpaid Dividends	16
3.	Board’s Report	17
4.	Particulars of Conservation of Energy, and Technology Absorption, and Foreign	24
	Exchange Earning and Outgo (Annexure-I)
5.	Annual Report on Corporate Social Responsibility (Annexure-II)	25
6.	Particulars of Employees (Annexure-III)	28
7.	Form AOC-1 (Annexure-IV)	30
8.	Form AOC-2 (Annexure-V)	32
9.	Secretarial Audit Report (Annexure-VI)	33
10.	Management Discussion and Analysis Report (Annexure-VII)	36
11.	Report on Corporate Governance	39
12.	Compliance Certifcate on Corporate Governance	51
13.	Independent Auditor’s Report on Standalone Ind AS Financial Statements and	52
	Annexure(s) thereto
14.	Standalone Balance Sheet	61
15.	Standalone Statement of Proft & Loss	62
16.	Standalone Statement of changes in Equity	63
17.	Standalone Cash Flow Statement	64
18.	Notes to Standalone Financial Statements	66
19.	Independent Auditor’s Report on Consolidated Ind AS Financial Statements and	101
	Annexure(s) thereto
20.	Consolidated Balance Sheet	109
21.	Consolidated Statement of Proft & Loss	110
22.	Consolidated Statement of change in Equity	112
23.	Consolidated Cash Flow Statement	113
24.	Notes to Consolidated Financial Statements	115

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INDAG RUBBER LIMITED

CIN : L74899DL1978PLC009038 Regd. Office: 11, Community Centre, Saket, New Delhi-110017. Landline No. 011-26963172/73; E-mail Id:- info@indagrubber.com; Website: www.indagrubber.com

NOTICE

NOTICE IS HEREBY GIVEN THAT THE FORTY-SECOND ANNUAL GENERAL MEETING OF THE MEMBERS OF INDAG RUBBER LIMITED WILL BE HELD ON THURSDAY, SEPTEMBER 30, 2021 AT 03:30 P.M. THROUGH VIDEO CONFERENCING (“VC”) / OTHER AUDIO VISUAL MEANS (“OAVM”), TO TRANSACT THE FOLLOWING BUSINESS:

AS ORDINARY BUSINESS:

1. To receive, consider and adopt the financial statements of the company, and, if thought fit, to pass the following resolutions as ORDINARY RESOLUTIONs:

2. a) Audited standalone financial statements of the company for the financial year ended March 31, 2021.

   • “RESOLVED THAT the audited standalone financial statements of the Company including the balance sheet as at March 31, 2021, the statement of profit and loss, the cash flow statement for the year ended on that date and the reports of the Board of Directors and Auditors, thereon be and are hereby received, considered and adopted.”

3. b) Audited consolidated financial statements of the company for the financial year ended March 31, 2021.

   • “RESOLVED THAT the audited consolidated financial statements of the Company including the balance sheet as on March 31, 2021, the statement of profit and loss, the cash flow statement for the year ended on that date and the report of the Auditors thereon be and are hereby received, considered and adopted.”

4. To declare the Final Dividend and confirm payment of Interim Dividend for the financial year 2020-2021, and, if thought fit, to pass the following resolution as an ORDINARY RESOLUTION :

“RESOLVED THAT pursuant to the recommendation of the Board of Directors, final dividend of Rs. 1.50/- per equity share of face value of Rs. 2/- each (75%), in addition to the interim dividend of Rs. 0.90/- per equity share of face value of Rs. 2/- each (45%) already paid, be and is hereby declared out of the current profits and General Reserves of the Company for the financial year ended March 31, 2021 and that the same be paid, to those Members whose names appear on the company’s register of members as on September 30, 2021 (if shares held in physical form) and to those beneficial owners whose names are furnished by NSDL and CDSL as on the close of business hours on September 23, 2021 (if shares held in dematerialized form).”

1. To appoint a Director in place of Mr. Shiv Vikram Khemka (DIN-01214671) who retires by rotation and being eligible, offers himself for re-appointment, and, if thought fit, to pass the following resolution as an ORDINARY RESOLUTION :

“RESOLVED THAT pursuant to the provisions of Section 152 of the Companies Act, 2013, Mr. Shiv Vikram Khemka (DIN-01214671), who retires by rotation at this meeting and being eligible has offered himself for re-appointment, be and is hereby re-appointed as a Director of the Company, liable to retire by rotation.”

AS SPECIAL BUSINESS:

• 4 . Fixation of the remuneration of the Cost Auditors of the company for the financial year 2021-2022.

• To consider and, if thought fit, to pass with or without modification(s), the following resolution as an ORDINARY RESOLUTION:

“RESOLVED THAT pursuant to the provisions of section 148(3) and all other applicable provisions, if any, of the Companies Act, 2013 and on the recommendation of the Board of Directors, consent of the members be and is hereby accorded for the payment of remuneration of Rs. 1,50,000/- plus applicable taxes and out of pocket expenses and on terms and conditions as may be mutually agreed to between the Board of Directors and Shome & Banerjee, (Registration No. 000001) Cost Accountants, Cost Auditors of the Company for the financial year commencing from April 1, 2021 till March 31, 2022.”

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1. Regularization of the appointment of Mr. Vijay Shrinivas (DIN 08337007) as Director who was appointed as an Additional Director.

To consider and, if thought fit, to pass with or without modification(s), the following resolution as an ORDINARY RESOLUTION:

“RESOLVED THAT pursuant to the provisions of Section 149, 152 and 161 and any other applicable provisions of the Companies Act, 2013 and the rules made thereunder and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including any statutory modifications or re-enactments thereof, and pursuant to the Articles of Association of the Company, Mr. Vijay Shrinivas (DIN 08337007), who was appointed as an Additional Director (by the Board of Directors of the Company) with effect from June 01, 2021, and holds the office up to the date of the this Annual General Meeting, and in this respect of whom the Company has received a notice in writing from a member, as per the provisions of Section 160 of the Companies Act, 2013, proposing Mr. Vijay Shrinivas as a candidate for the office of Director, be and is hereby appointed as Director of the Company, whose office shall be liable to retire by rotation.

RESOLVED FURTHER THAT any Key Managerial Personnel be and is hereby severally authorised to do all such acts and take all such steps as may be necessary, proper or expedient to give effect to the aforesaid resolution.”

6. Appointment of Mr. Vijay Shrinivas (DIN: 08337007) as Whole-time Director (Key Managerial Personnel designated as Chief Executive Officer).

To consider and, if thought fit, to pass with or without modification(s), the following resolution as a SPECIAL RESOLUTION:

“RESOLVED THAT pursuant to the provisions of Section 196, 197, 203 and any other applicable provisions of the Companies Act, 2013 and the rules made thereunder read with Schedule V of the Companies Act, 2013 and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, including any statutory modifications or reenactments thereof, and pursuant to the Articles of Association of the Company and pursuant to the recommendation and approval of the Nomination and Remuneration Committee and Board of Directors, the members hereby accord their approval for appointment of Mr. Vijay Shrinivas (DIN: 08337007), as Whole-time Director (Key Managerial Personnel designated as Chief Executive Officer) of the Company for a period of three years with effect from June 01, 2021 on the below terms and conditions:

(A) TERM

Period of 3 years with effect from June 1, 2021.

• (B) REMUNERATION

• 1) Fixed Salary : Rs. 132.75 lakh per annum

  • Fixed Salary shall include the following-

Particulars	Amount (per annum)
i. Basic salary	Rs.66,37,500
ii. Perquisites and allowances (100% of Basic salary), which may include House Rent Allowance, Special Allowance, Leave Travel Allowance, Exgratia, Company’s contribution towards Provident Fund, Gratuity etc	Rs.66,37,500
Total fxed salary	Rs.132,75,000

• 2) Variable Salary (Commission) : 2% of Profit before Tax (excluding income from MRO project)

3) Other benefits:

• i. Leave with full pay and allowance during the tenure and encashment of leave at the end of the tenure shall be allowed as per the rules of the company

• ii. Premium on Group Mediclaim Policy for self and family (as per the terms of the policy); premium on Group Personnel Accident (for self) taken by the company

• iii. Premium on Directors and Officers Liability Policy taken by the company shall not be treated as part of the remuneration, unless he is proved guilty

• iv. Telecommunication facility as per the policy of the Company

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RESOLVED FURTHER THAT the overall managerial remuneration payable to Mr.Vijay Shrinivas shall be such amount as may be altered, varied, revised by the Board from time to time on recommendation of Nomination & Remuneration Committee.

RESOLVED FURTHER THAT in the event in any financial year during the tenure of Mr.Vijay Shrinivas, Whole time Director, the Company does not earn any profits or earns inadequate profits as contemplated under the provisions of Schedule V to the Companies Act, 2013, the Company shall pay to the Whole time Director, the above remuneration, including commission, as the minimum remuneration by way of fixed salary, perquisites, commission and other benefits as specified above, subject to such other approvals as may be necessary.

Other Terms and conditions:

• 1) The Whole Time Director shall not become interested or otherwise concerned directly or through his wife and/ or children in any buying and selling agency of the Company in future without the prior approval of the Board of Directors or subject to such other approvals as may be considered necessary.

• 2) The Whole Time Director shall not be entitled to fees payable to Directors for attendance at Board Meetings and all other Committees appointed by the Board.

• 3) The Agreement may be terminated by either party by giving to the other three-month notice of such termination. The Whole Time Director will not be entitled to any compensation for loss of office due to termination under Section 202 of the Companies Act, 2013 or otherwise.

• 4) The Whole Time Director shall exercise such power and function and on such term as the Board of Directors of the company may prescribe from time to time, it being agreed and understood that the Board shall have the power to alter, modify, revoke or withdraw all or any of the powers so conferred.

• 5) The Whole Time Director shall be liable to retire by rotation.

  • RESOLVED FURTHER THAT the any Key Managerial Personnel be and is hereby severally authorised to do all such acts and take all such steps as may be necessary, proper or expedient to give effect to the aforesaid resolution.”

• Appointment of Mr. Raj Kumar Agrawal (DIN 00177578) as Independent Director of the Company for a term of 5 Years.

To consider and, if thought fit, to pass with or without modification(s), the following resolution as an ORDINARY RESOLUTION:

“RESOLVED THAT pursuant to the provision of Section 149, 150, 152 and 161 and any other applicable provisions of the Companies Act, 2013 and the rules made thereunder read with Schedule IV of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including any statutory modifications or re-enactments thereof, and pursuant to the Articles of Association of the Company and pursuant to the recommendation and approval of the Nomination and Remuneration Committee and Board of Directors, the Members of the Company hereby accord their approval for appointment of Mr. Raj Kumar Agrawal as an Independent Director of the Company for a consecutive term of 5 years with effect from June 15, 2021 till June 14, 2026 (not subject to retirement by rotation), and in this respect, the Company has received a notice in writing from a member, as per the provisions of Section 160 of the Companies Act, 2013, proposing Mr. Raj Kumar Agrawal as a candidate for the office of Independent Director.

RESOLVED FURTHER THAT the any Key Managerial Personnel be and is hereby severally authorised to do all such acts and take all such steps as may be necessary, proper or expedient to give effect to the aforesaid resolution.”

By Order of the Board of Directors For Indag Rubber Limited

Place: New Delhi Date: May 31, 2021

Manali D. Bijlani Company Secretary F4704

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NOTES

In view of the massive outbreak of the COVID-19 pandemic and pursuant to Circular No. 14/2020 dated April 08, 2020, Circular No.17/2020 dated April 13, 2020 issued by the Ministry of Corporate Affairs (“MCA Circulars”) followed by Circular No. 20/2020 dated May 05, 2020 and Circular No. 02/2021 dated January 13, 2021 and all other relevant circulars issued from time to time and Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/79 dated 12th May 2020 and SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated January 15, 2021, issued by the Securities and Exchange Board of India (“SEBI Circulars”) and in compliance with the provisions of the Companies Act, 2013 (“Act”) and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), the 42nd AGM of the Company is being conducted through VC/OAVM Facility, which does not require physical presence of members at a common venue. The deemed venue for the 42nd AGM shall be the Registered Office of the Company. Members can attend and participate in the ensuing AGM through VC/OAVM.

This notice is sent to all the members whose name appears as on August 27, 2021 in the Register of Members.

1. PURSUANT TO THE CIRCULAR NO. 14/2020 DATED APRIL 08, 2020, ISSUED BY THE MINISTRY OF CORPORATE AFFAIRS, THE FACILITY TO APPOINT PROXY TO ATTEND AND CAST VOTE FOR THE MEMBERS IS NOT AVAILABLE FOR THIS AGM. HOWEVER, THE BODY CORPORATES ARE ENTITLED TO APPOINT AUTHORISED REPRESENTATIVES TO ATTEND THE AGM THROUGH VC/OAVM AND PARTICIPATE THERE AT AND CAST THEIR VOTES THROUGH E-VOTING.

2. The Members can join the AGM in the VC/OAVM mode 15 minutes before and after the scheduled time of the commencement of the Meeting by following the procedure mentioned in the Notice. The facility of participation at the AGM through VC/OAVM will be made available for 1000 members on frst come frst served basis. This will not include large Shareholders (Shareholders holding 2% or more shareholding), Promoters, Institutional Investors, Directors, Key Managerial Personnel, the Chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee, Auditors etc. who are allowed to attend the AGM without restriction on account of first come first served basis.

3. The attendance of the Members attending the AGM through VC/OAVM will be counted for the purpose of reckoning the quorum under Section 103 of the Companies Act, 2013.

4. In line with the Ministry of Corporate Affairs (MCA) Circular No. 17/2020 dated April 13, 2020, the Notice calling the AGM has been uploaded on the website of the Company at www.indagrubber.com. The Notice can also be accessed from the websites of the Stock Exchange i.e. BSE Limited at www.bseindia.com and the AGM Notice is also available on the website of NSDL (agency for providing the Remote e-Voting facility) i.e. www.evoting.nsdl. com.

5. AGM will be convened through VC/OAVM in compliance with applicable provisions of the Companies Act, 2013 read with MCA Circular No. 14/2020 dated April 08, 2020 and MCA Circular No. 17/2020 dated April 13, 2020, MCA Circular No. 20/2020 dated May 05, 2020 and MCA Circular No. 2/2021 dated January 13, 2021.

6. The Register of Members and Share Transfer Books of the Company will remain closed from September 24, 2021 to September 30, 2021 (both days inclusive).

7. Explanatory Statement pursuant to Section 102 of the Companies Act, 2013, which sets out details relating to Special Business at the meeting, is annexed hereto.

8. Final Dividend of Rs. 1.50/- per equity share of face value of Rs. 2/- each (75%) has been recommended by the Board of Directors, subject to the approval of the members at the ensuing Annual General Meeting for the year ended on March 31, 2021 which is proposed to be paid on and before October 30, 2021. The Interim Dividend of Rs. 0.90/- per equity share, for the Financial Year 2020-21, was declared on November 10, 2020 and paid on December 05, 2020.

9. Members may note that pursuant to Income-Tax Act, 1961, (“the IT Act”) as amended by the Finance Act, 2020, dividends paid or distributed by the Company after 1st April 2020, shall be taxable in the hands of the Members and the Company shall be required to deduct tax at source (TDS) at the prescribed rates from the dividend to be paid to Members. The TDS rate would vary depending on the residential status of the Member and the documents submitted by them and accepted by the Company. The Company has also sent individual communication on July 20, 2021 to the members who have registered their email IDs with the Company/RTA.

10. Members may kindly refer to the website link https://indagrubber.com/uploads/document/Email_to_Shareholders_ reg__TDS_on_Final_Div__2020-21.pdf for further information. The members are requested to update their PAN with the RTA (if shares held in physical mode) and with depositories (if shares held in demat mode).

11. Members who have not encashed their dividend warrants are advised to write to the Company immediately for claiming dividends declared by the Company, which are yet to be transferred to IEPF.

12. Members seeking further information about the accounts are requested to write at least 7 days before the date of the meeting so that it may be convenient to get the information ready at the meeting.

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1. Members are requested to inform the Company’s Registrar and Share Transfer Agent i.e. Skyline Financial Services Private Limited, D-153/A, 1st Floor, Okhla Industrial Area, Phase-I, New Delhi-110020 / or via email at admin@skylinerta.com about the changes, if any, in their registered address along with the Pin Code, quoting their Folio Number and DP ID/ Client ID and email address.

2. Members are further requested to also inform changes, if any, pertaining to their name, telephone/ mobile numbers, Permanent Account Number (PAN), mandates, nominations, power of attorney, bank details such as, name of the bank and branch details, bank account number, MICR code, IFSC code, etc., to their DPs in case the shares are held by them in electronic form and to the RTA in case the shares are held by them in physical form.

3. Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent Account Number (PAN) by every participant in the Securities Market. Members holding shares in electronic form are, therefore, requested to submit the PAN to their Depository Participants (DPs) with whom they are maintaining their demat accounts. Members holding the shares in physical form can submit their PAN details to the RTA / Company.

4. In compliance with the aforesaid MCA Circulars and SEBI Circulars, the Notice of 42nd Annual General Meeting and Annual Report for the year 2020-2021 of the Company is being sent only through electronic mode to those Members whose email addresses are registered with the Company/ Depositories. Therefore, Members are requested to furnish or update their e-mail IDs with the Registrar for sending the soft copies of the Notice of 42nd Annual General Meeting and Annual Report for the year 2020-2021 of the Company and to avail e-voting facility in respect of the resolutions to be passed at the General Meetings of the Company.

5. Since the AGM will be held through VC/OAVM Facility, the Route Map is not annexed in this Notice.

6. Pursuant to the prohibition imposed vide Secretarial Standard on General Meetings (SS-2) issued by the ICSI and the MCA circular, no gifts/coupons shall be distributed w.r.t the Meeting.

7. Voting through electronic means

8. a. Pursuant to the provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management and Administration) Rules, 2014 (as amended) and Regulation 44 of SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 (as amended), and the Circulars issued by the Ministry of Corporate Affairs dated April 08, 2020, April 13, 2020 and May 05, 2020 the Company is providing facility of remote e-Voting to its Members in respect of the business to be transacted at the AGM. For this purpose, the Company has authorised National Securities Depository Limited (NSDL) for facilitating voting through electronic means, as the authorized agency. The facility of casting votes by a member using remote e-Voting system as well as venue for voting on the date of the AGM will be provided by NSDL.

9. b. A person whose name is recorded in the Register of Members or in the Register of Beneficial Owners maintained by the depositories as on September 23, 2021 (the “Cut-off Date”) only shall be entitled to vote through e-voting facility w.r.t. the AGM. The voting rights of members shall be in proportion to their share of the paid-up equity share capital of the Company as on the cut-off date.

10. c. Persons who have acquired shares and become members of the Company after electronic dispatch of Notice of AGM but before cut-off date of September 23, 2021 may obtain their USER ID and password for e-voting from Skyline Financial Services Pvt. Ltd., D-153/A, 1st Floor, Okhla Industrial Area, Phase – I, New Delhi110020 / or via email at admin@skylinerta.com or from NSDL.

11. d. The remote e-voting period begins on September 27, 2021 at 09:00 A.M. and ends on September 29, 2021 at 05:00 P.M. The remote e-voting module shall be disabled by NSDL for voting thereafter. The Members, whose names appear in the Register of Members / Beneficial Owners as on the record date (cut-off date) i.e. September 23, 2021, may cast their vote electronically. The voting right of shareholders shall be in proportion to their share in the paid-up equity share capital of the Company as on the cut-off date, being September 23, 2021.

12. e. Members attending the meeting, through VC / OAVM facility, who have not already cast their vote by remote e-voting shall be able to exercise their right at the meeting and that the members who have cast their vote by remote e-voting prior to the meeting may also attend the meeting, through VC / OAVM facility, but shall not be entitled to cast their vote again.

13. f) Instructions for e-voting are as under-

    • The way to vote electronically on NSDL e-Voting system consists of “Two Steps” which are mentioned below:

    • Step 1: Access to NSDL e-Voting system

14. A) Login method for e-Voting and joining virtual meeting for Individual shareholders holding securities in demat mode:

In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual shareholders holding securities in demat mode are allowed to vote through their demat account maintained with

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Depositories and Depository Participants. Shareholders are advised to update their mobile number and email Id in their demat accounts in order to access e-Voting facility.

Login method for Individual shareholders holding securities in demat mode is given below:

Type of shareholders	Login Method
Individual Shareholders holding securities in demat mode with NSDL.	1. Existing IDeAS user can visit the e-Services website of NSDL Viz. https://eservices.nsdl.comeither on a Personal Computer or on a mobile. On the e-Services home page click on the “Benefcial Owner”icon under“Login”which is available under ‘IDeAS’section , this will prompt you to enter your existing User ID and Password. After successful authentication, you will be able to see e-Voting services under Value added services. Click on“Access to e-Voting”under e-Voting services and you will be able to see e-Voting page. Click on company name ore-Voting service provider i.e. NSDLand you will be re- directed to e-Voting website of NSDL for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. 2. If you are not registered for IDeAS e-Services, option to register is available at https://eservices.nsdl.com. Select“Register Online for IDeAS Portal”or click at https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp 3. Visit the e-Voting website of NSDL. Open web browser by typing the following URL:https:// www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholder/ Member’ section. A new screen will open. You will have to enter your User ID (i.e. your sixteen digit demat account number hold with NSDL), Password/OTP and a Verifcation Code as shown on the screen. After successful authentication, you will be redirected to NSDL Depository site wherein you can see e-Voting page. Click on company name ore-Voting service provider i.e. NSDLand you will be redirected to e-Voting website of NSDL for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. 4. Shareholders/Members can also download NSDL Mobile App “NSDL Speede” facility by scanning the QR code mentioned below for seamless voting experience.
Individual Shareholders holding securities in demat mode with CDSL	1. Existing users who have opted for Easi / Easiest, they can login through their user id and password. Option will be made available to reach e-Voting page without any further authentication. The URL for users to login to Easi / Easiest arehttps://web.cdslindia.com/ myeasi/home/login orwww.cdslindia.com and click on New System Myeasi. 2. After successful login of Easi/Easiest the user will be also able to see the E Voting Menu. The Menu will have links ofe-Voting service provider i.e. NSDL.Click onNSDLto cast your vote. 3. If the user is not registered for Easi/Easiest, option to register is available at https://web.cdslindia.com/myeasi/Registration/EasiRegistration 4. Alternatively, the user can directly access e-Voting page by providing demat Account Number and PAN No. from a link inwww.cdslindia.com home page. The system will authenticate the user by sending OTP on registered Mobile & Email as recorded in the demat Account. After successful authentication, user will be provided links for the respective ESP i.e.NSDLwhere the e-Voting is in progress.

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Individual Shareholders (holding securities in demat mode) login through their depository participants

You can also login using the login credentials of your demat account through your Depository Participant registered with NSDL/CDSL for e-Voting facility. Upon logging in, you will be able to see e-Voting option. Click on e-Voting option, you will be redirected to NSDL/CDSL Depository site after successful authentication, wherein you can see e-Voting feature. Click on company name or e-Voting service provider i.e. NSDL and you will be redirected to e-Voting website of NSDL for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting.

Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget Password option available at abovementioned website.

Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through Depository i.e. NSDL and CDSL.

through Depository i.e. NSDL and CDSL.
Login type	Helpdesk details
Individual Shareholders holding securities in demat mode with NSDL	Members facing any technical issue in login can contact NSDL helpdesk by sending a request at evoting@nsdl.co.in or call at toll free no.: 1800 1020 990 and 1800 22 44 30
Individual Shareholders holding securities in demat mode with CDSL	Members facing any technical issue in login can contact CDSL helpdesk by sending a request athelpdesk.evoting@cdslindia.comor contact at 022- 23058738 or 022-23058542-43

B) Login Method for e-Voting and joining virtual meeting for shareholders other than Individual shareholders holding securities in demat mode and shareholders holding securities in physical mode.

How to Log-in to NSDL e-Voting website?

1. Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile.

2. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholder/Member’ section.

3. A new screen will open. You will have to enter your User ID, your Password/OTP and a Verification Code as shown on the screen.

Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices.nsdl.com/ with your existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.

1. Your User ID details are given below :

Manner of holding shares i.e. Demat (NSDL or CDSL) or Physical	Your User ID is: 8 Character DP ID followed by 8 Digit Client ID For example if your DP ID is IN300 and Client ID is 12 thenyour user ID is IN30012**. 16 Digit Benefciary ID For example if your Benefciary ID is 12** then your user ID is 12** EVEN Number followed by Folio Number registered with the company For example if folio number is 001 and EVEN is 101456 then user ID is 101456001**
a) For Members who hold shares in demat account with NSDL.
b) For Members who hold shares in demat account with CDSL.
c) For Members holding shares in Physical Form.

1. Password details for shareholders other than Individual shareholders are given below:

2. a) If you are already registered for e-Voting, then you can user your existing password to login and cast your vote.

3. b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the ‘initial password’ which was communicated to you. Once you retrieve your ‘initial password’, you need to enter the ‘initial password’ and the system will force you to change your password.

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• c) How to retrieve your ‘initial password’?

  • (i) If your email ID is registered in your demat account or with the company, your ‘initial password’ is communicated to you on your email ID. Trace the email sent to you from NSDL from your mailbox. Open the email and open the attachment i.e. a .pdf file. Open the .pdf file. The password to open the .pdf file is your 8 digit client ID for NSDL account, last 8 digits of client ID for CDSL account or folio number for shares held in physical form. The .pdf file contains your ‘User ID’ and your ‘initial password’.

  • (ii) If your email ID is not registered, please follow steps mentioned below in process for those shareholders whose email ids are not registered.

• If you are unable to retrieve or have not received the “ Initial password” or have forgotten your password:

• a) Click on “ Forgot User Details/Password ?”(If you are holding shares in your demat account with NSDL or CDSL) option available on www.evoting.nsdl.com.

• b) Physical User Reset Password ?” (If you are holding shares in physical mode) option available on www.evoting.nsdl.com.

• c) If you are still unable to get the password by aforesaid two options, you can send a request at evoting@ nsdl.co.in mentioning your demat account number/folio number, your PAN, your name and your registered address etc.

• d) Members can also use the OTP (One Time Password) based login for casting the votes on the e-Voting system of NSDL.

• After entering your password, tick on Agree to “Terms and Conditions” by selecting on the check box.

• Now, you will have to click on “Login” button.

• After you click on the “Login” button, Home page of e-Voting will open.

- Step 2: Cast your vote electronically and join General Meeting on NSDL e Voting system.

- How to cast your vote electronically and join General Meeting on NSDL e Voting system?

1. After successful login at Step 1, you will be able to see all the companies “EVEN” in which you are holding shares and whose voting cycle and General Meeting is in active status.

2. Select “EVEN” of company for which you wish to cast your vote during the remote e-Voting period and casting your vote during the General Meeting. For joining virtual meeting, you need to click on “VC/OAVM” link placed under “Join General Meeting”.

3. Now you are ready for e-Voting as the Voting page opens.

4. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for which you wish to cast your vote and click on “Submit” and also “Confirm” when prompted.

5. Upon confirmation, the message “Vote cast successfully” will be displayed.

6. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.

7. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.

General Guidelines for shareholders

1. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/ JPG Format) of the relevant Board Resolution/ Authority letter etc. with attested specimen signature of the duly authorized signatory(ies) who are authorized to vote, to the Scrutinizer by e-mail to scrutinizer@indagrubber. com with a copy marked to evoting@nsdl.co.in.

2. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in the correct password. In such an event, you will need to go through the “Forgot User Details/Password?” or “Physical User Reset Password?” option available on www.evoting.nsdl.com to reset the password.

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1. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and e-Voting user manual for Shareholders available at the download section of www.evoting.nsdl.com or call on toll free no.: 1800 1020 990 and 1800 22 44 30 or send a request at evoting@nsdl.co.in or contact Ms. Pallavi Mhatre, Manager or Ms. Soni Singh, Asst. Manager, National Securities Depository Limited, Trade World, ‘A’ Wing, 4th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, at the designated email id – evoting@nsdl.co.in or pallavid@nsdl.co.in or SoniS@nsdl.co.in or at telephone nos.:- +91 22 24994545, +91 22 24994559, who will also address the grievances connected with voting by electronic means. Members may also write to the Company Secretary at info@indagrubber.com

Process for those shareholders whose email ids are not registered with the depositories for procuring user id and password and registration of e mail ids for e-voting for the resolutions set out in this notice :

1. In case shares are held in physical mode please provide Folio No., Name of shareholder, scanned copy of the share certificate (front and back), PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) by email to info@indagrubber.com

2. In case shares are held in demat mode, please provide DPID-CLID (16 digit DPID + CLID or 16 digit beneficiary ID), Name, client master or copy of Consolidated Account statement, PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) to info@indagrubber.com. If you are an Individual shareholders holding securities in demat mode, you are requested to refer to the login method explained at step 1 (A ) i.e. Login method for e-Voting and joining virtual meeting for Individual shareholders holding securities in demat mode .

3. Alternatively shareholder/members may send a request to evoting@nsdl.co.in for procuring user id and password for e-voting by providing above mentioned documents.

4. In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual shareholders holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and Depository Participants. Shareholders are required to update their mobile number and email ID correctly in their demat account in order to access e-Voting facility.

THE INSTRUCTIONS FOR MEMBERS FOR e-VOTING ON THE DAY OF THE 42[nd] AGM ARE AS UNDER:-

1. The procedure for e-Voting on the day of the AGM is same as the instructions mentioned above for remote e-voting.

2. Only those Members/ shareholders, who will be present in the AGM through VC/OAVM facility and have not casted their vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through e-Voting system in the AGM.

3. Members who have voted through Remote e-Voting will be eligible to attend the AGM. However, they will not be eligible to vote at the AGM.

4. The details of the person who may be contacted for any grievances connected with the facility for e-Voting on the day of the AGM shall be the same person mentioned for Remote e-voting.

INSTRUCTIONS FOR MEMBERS FOR ATTENDING THE 42[nd] AGM THROUGH VC/OAVM ARE AS UNDER:

1. Member will be provided with a facility to attend the AGM through VC/OAVM through the NSDL e-Voting system. Members may access by following the steps mentioned above for Access to NSDL e-Voting system . After successful login, you can see link of “VC/OAVM link” placed under “Join General meeting” menu against company name. You are requested to click on VC/OAVM link placed under Join General Meeting menu. The link for VC/OAVM will be available in Shareholder/Member login where the EVEN of Company will be displayed. 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 remote e-Voting instructions mentioned in the notice to avoid last minute rush.

2. Members are encouraged to join the Meeting through Laptops for better experience.

3. Further Members will be required to allow Camera and use Internet with a good speed to avoid any disturbance during the meeting.

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1. Please note that Participants Connecting from Mobile Devices or Tablets or through Laptop connecting 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.

2. Members who would like to express their views or ask questions during the AGM may register themselves as a speaker by sending their request from their registered email address mentioning their Name, DP ID and Client ID/ Folio Number, PAN and Mobile Number at info@indagrubber.com on or before September 23, 2021. Those Members who have registered themselves as a Speaker will only be allowed to express their views/ ask questions during the AGM.

3. Institutional Investors who are Members of the Company, are encouraged to attend and vote in the AGM through VC/OAVM Facility.

4. g) During the 42nd AGM, Members may access the scanned copy of Register of Directors and Key Managerial Personnel and their shareholding maintained under Section 170 of the Act and the Register of Contracts and Arrangements in which Directors are interested maintained under Section 189 of the Act, at website of the Company at https://indagrubber.com/home/investor_relation/1.

5. h) The Board of Directors has appointed Mr. Kanishk Arora of M/s. Kanishk Arora & Co., Practicing Company Secretary, as the Scrutinizer for conducting remote e-voting in a fair and transparent manner.

6. i) The Scrutinizer shall, immediately after the conclusion of voting at the AGM, unblock the votes cast through remote e-Voting and e-Voting in the presence of at least two witnesses not in the employment of the Company. The Scrutinizer shall, within 24 hours from the conclusion of the AGM, prepare and present a consolidated report of the total votes cast in favour or against, if any, to the Chairman or any other Key Managerial Personnel who shall countersign the same and declare the results of the voting within 48 hours of conclusion of Annual General Meeting.

7. j) The results declared alongwith the report of Scrutinizer shall be placed on the website of the Company www.indagrubber.com and on the website of NSDL immediately after the declaration of results by the Chairman or any other Key Managerial Personnel. The results shall also be forwarded to the Stock Exchange within 48 hours of the conclusion of Annual General Meeting.

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Explanatory Statement

(Pursuant to Section 102 of the Companies Act, 2013)

Item No. 4: Fixation of remuneration of Shome & Banerjee, Cost Auditors.

Shome & Banerjee, Cost Accountants were appointed as Cost Auditors of the Company by the Board at its meeting held on May 08, 2021 for the financial year 2021-2022, as recommended by the Audit Committee.

Mr. Rakesh Singh, Partner of Shome & Banerjee, is a Fellow member of the Institute of Cost Accountants of India, and has held the highest post of “President” for the term 2012-2013. The Board of your company after considering the qualification and experience of Mr. Rakesh Singh, partner of Shome & Banerjee, thought fit to fix the remuneration of Rs. 1,50,000/- plus applicable taxes and out of pocket expense, subject to the approval of the members.

Shome & Banerjee, Cost Accountants are not related to any director of the Company. None of the directors, key managerial personnel of the company and their relatives, is interested financial or in the resolution set out in the notice.

The Board of directors recommend the ordinary resolution for the approval of the members.

Item No. 5 & 6: Appointment of Mr. Vijay Shrinivas (DIN: 08337007) as Wholetime Director (Key Managerial Personnel designated as Chief Executive Officer).

Based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors in their meeting held on May 08, 2021 appointed Mr. Vijay Shrinivas as an Additional Director and Wholetime Director (Key Managerial Personnel designated as Chief Executive Officer) of the Company for a period of 3 years with effect from June 01, 2021, subject to the approval of the members of the Company in the Annual General Meeting. The office of Mr. Vijay Shrinivas is liable to retire by rotation.

Mr.Vijay Shrinivas, aged 50 years, has done Masters in International Business from Institute of Foreign Trade, New Delhi and Mechanical Engineering from DTE, Tamil Nadu. He was last working with Arvind Ltd. as Chief Sales & Marketing Officer. Prior to that he was with DuPont, Bharat Shell, L&T, Tube Investment (Murugappa Group) in various operating and leadership roles. Mr. Vijay Shrinivas was initially appointed as Chief Commercial Officer in April 2018. He has considerable expertise and experience to further enhance the growth of the company and drive the company’s long-term performance. He will also be responsible to perform such other duties as may from time to time be entrusted by the board. Keeping in view the role and responsibilities of Mr. Vijay Shrinivas, Board recommends the appointment and payment of remuneration of the terms and conditions as set forth in the resolution.

The statement containing additional information as required under Schedule V of the Act is annexed to the Notice.

Mr. Vijay Shrinivas is interested in the resolution set out at item no. 5 & 6 of the Notice with regard to his appointment.

None of the directors, key managerial personnel of the company and their relatives, is interested in the resolution set out in the notice.

The Board of directors recommend the ordinary resolution as set out in item no. 5 and special resolution as set out in item no. 6, for the approval of the members.

Item No. 7: Appointment of Mr. Raj Kumar Agrawal (DIN: 00177578) as Independent Director of the Company.

Mr. Raj Kumar Agrawal has done his B.Com (Hons) from Shri Ram College of Commerce and Chartered Accountancy from the Institute of Chartered Accountants of India. He has been associated with SR Batliboi & Co (an EY Member firm) for more than 43 years in various capacities and retired as a senior partner of the firm on 30th June 2019. He has experience of providing accounting, advisory and other services to companies in various industry sectors and has also served the Accounting Standards Board and Audit & Assurance Standards Board of the Institute of Chartered Accountants of India.

Considering the vast and rich experience of Mr. Raj Kumar Agrawal and on the recommendation of the Nomination and Remuneration Committee, the Board of Directors appointed Mr. Raj Kumar Agrawal as Additional and Independent Director of the Company for a consecutive term of five (5) years i.e from June 15, 2021 to June 14, 2026, not liable to retire by rotation and approved the same in their meeting on May 31, 2021.

Mr. Raj Kumar Agrawal holds office up to the date of 42nd Annual General Meeting of the Company.

Notice has been received from a member proposing Mr. Raj Kumar Agrawal as candidate for the office of Independent Director of the Company. Mr. Raj Kumar Agrawal is not disqualified from being appointed as a Director in terms of Section 164 of the Act and has given his consent to act as Director. The Company has received declaration from Mr. Raj Kumar Agrawal that he meets with the criteria of independence as prescribed.

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In the opinion of the Board, Mr. Raj Kumar Agrawal fulfils the conditions for appointment as Independent Director; and he is independent of the management. Brief resume of Mr. Raj Kumar Agrawal, nature of his expertise in specific functional area and names of listed companies in which he holds directorships, are provided in this Notice.

Mr. Raj Kumar Agrawal is interested in the resolution set out at item no. 7 of the Notice with regard to his appointment.

None of the Directors and/or Key Managerial Personnel of the Company and their relatives is concerned or interested, financial or otherwise, in the resolution.

The Board recommends the Ordinary Resolution set out at Item no. 7 of the Notice for the approval of the shareholders.

	By Order of the Board of Directors
	ForIndag Rubber Limited
	Manali D. Bijlani
Place: New Delhi	Company Secretary
Date: May 31, 2021	F4704

THE STATEMENT CONTAINING ADDITIONAL INFORMATION AS REQUIRED UNDER SCHEDULE V TO THE ACT

I. General Information

1. Nature of industry:

• The Company manufactures and market Precured Tread Rubber and allied items such as Cushion Gums, URSG and Envelopes.

2. Date or expected date of commencement of commercial production:

The Company has commenced its commercial production under Certificate of Commencement of Business issued by MCA on September 03, 1979.

3. In case of new companies, expected date of commencement of activities as per project approved by

financial institutions appearing in the prospectus:

Not applicable, since the Company was incorporated on June 02, 1978.

4. Financial performance based on given indicators:

Particulars	STANDALONE	STANDALONE	CONSOLIDATED	CONSOLIDATED
	2020-21 (Rs. In lakh)	2019-20 (Rs. In lakh)	2020-21 (Rs. In lakh)	2019-20 (Rs. In lakh)
Sales and other Income	17,388.25	19,135.00	17,388.38	19,135.25
Proft before Finance Cost & Depreciation	2,031.74	2,070.97	2,048.12	2,125.21
Finance Cost	26.58	25.00	26.58	25.00
Proft before Depreciation	2,005.16	2,045.97	2,021.54	2,100.21
Depreciation	328.55	374.32	328.55	374.32
Exceptional Items	1,324.02	-	1,324.02	-
Proft after exceptional and before tax (includingdiscontinued operations)	352.59	1,671.65	368.97	1,725.89
Proft after tax(before minority)	276.06	1,328.10	281.52	1,372.05
Proft after tax(after minority)	276.06	1,328.10	253.62	1,345.42
Transfer to General Reserve	-	-	-	-
Interim Dividend	236.25	630.00		-
Final Dividend		393.75		-

5. Foreign investments or collaborations, if any: The Company has investment in SRL 142 Holdings Limited (fair value Rs. 1617.10 lakhs as on March 31, 2021).

II. Information about the appointee:

1. Background details:

Mr.Vijay Shrinivas, aged 50 years, has done Masters in International Business from Institute of Foreign Trade, New Delhi and Mechanical Engineering from DTE, Tamil Nadu.

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He was last working with Arvind Ltd. as Chief Sales & Marketing Officer. Prior to that he was with DuPont, Bharat Shell, L&T, Tube Investment (Murugappa Group) in various operating and leadership roles. He has been working with the company as Chief Commercial Officer since April 27, 2018.

2. Past remuneration:

As Chief Commercial Officer, the remuneration of Mr.Vijay Shrinivas was Rs.120.75 lakh per annum (including variable portion).

3. Recognition or awards: NIL/NA

4. Job profile and his suitability:

Mr.Vijay Shrinivas has vast experience in various operating and leadership roles. He was looking after Sales, Marketing and Technical Services of the Company.

As Wholetime Director (Key Managerial Personnel designated as Chief Executive Officer), Mr.Vijay Shrinivas is entrusted with to perform such duties and exercise such powers as have been or may from time to time be entrusted or conferred upon him by the Board. Mr.Vijay Shrinivas is part of Senior Management of the Company of proven calibre and skill and is having wide ranging experience in project planning and management.

5. Remuneration proposed

• As set forth in item no 6 of the notice, for shareholders’ approval.

6. Comparative remuneration profile with respect to industry, size of the company, profile of the position and person (in case of expatriates the relevant details would be w.r.t. the country of his origin)

There are no set standards for remuneration in the industry. The executive remuneration in the industry has been increasing significantly in last few years. Having regard to the type of industry, trends in the industry, size of the Company, the responsibilities, academic background and capabilities, the Company believes that the remuneration proposed to be paid to Mr.Vijay Shrinivas as a Wholetime Director (Key Managerial Personnel designated as Chief Executive Officer) is appropriate.

The Company has its own remuneration policy based on its short-term and long-term objectives and role perceived and played by employees at top levels. Considering his rich experience, competence, and the growth and development of the Company under his leadership, the terms of his remuneration are considered fair and reasonable.

7. Pecuniary relationship directly or indirectly with the company, or relationship with the managerial personnel or other director, if any.

Mr.Vijay Shrinivas does not have any pecuniary relationship with the Company other than the remuneration payable to him as a Wholetime Director (Key Managerial Personnel designated as Chief Executive Officer) of the Company and earlier as Chief Commercial Officer. He is working with the Company purely in a professional capacity. He has been working with the company as Chief Commercial Officer since April 27, 2018.

Mr.Vijay Shrinivas is not related to other managerial personnel or other directors in the Company.

III. Other information:

1. Reasons of loss or inadequate profits

During the year under review, the Company opted for the Himachal Pradesh (Legacy Cases Resolution) Scheme, 2019 on January 21, 2021 for settlement of Entry Tax matter of earlier years which was pending before the Hon’ble High Court of Himachal Pradesh. The Company has settled the case and an amount of Rs. 1,324.02 Lakhs (including settlement fee of Rs. 79.34 Lakhs) has been charged as expense and the same has been treated as Exceptional Item, due to which Profit before tax during the year worked out to Rs. 3.53 crores as compared to Rs. 16.72 crores in the previous year.

2. Steps taken or proposed to be taken for improvement

The Company has embarked on a series of strategic and operational measures that is expected to result in the improvement in the present position. The powerful brand and deep PAN India distribution network are expected to position the Company better.

3. Expected increase in productivity and profits in measurable terms

The Company has taken various initiatives to maintain its leadership, improve market share and financial performance. It has been aggressively pursuing and planting its stratigy to improve the financial performance.

The Company has also strategically planned to address the issue of productivity and increase profits and has put in place measures to reduce the cost.

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NOTICE TO SHAREHOLDERS/INVESTORS FOR UNPAID DIVIDENDS

1. The Shareholders / Investors of Indag Rubber Limited are notified that in pursuance of the section 124 of the Companies Act, 2013 (the Act), the Company is required to transfer amount of Dividends that remain unclaimed / unpaid for a period of seven (7) years from the date of transfer to the company’s Unpaid Dividend Account, to the Investor Education and Protection Fund (IEPF) established under Section 125 of the Companies Act, 2013.

2. Further, all shares in respect of which dividend has not been paid or claimed for seven (7) consecutive years or more shall also be transferred to the demat account of IEPF as notified by Ministry of Corporate Affairs.

3. Dividends, including Interim Dividends declared during the following Financial Years shall fall due for transfer to IEPF on completion of a period of seven years from the date of transfer of Final Dividend / Interim Dividend to Unpaid Dividend Account. A table containing the due dates for transfer to IEPF for various years is given below for the information of the Shareholders/Investors:

Financial Year	Unpaid Dividend– Interim\Final	Dividend Amount unpaid as on March 31, 2021(in Rs.)	Number of corresponding shares of which dividend is unclaimed	Due Dates for Transfer to IEPF
2013-14	Final	494162.50	76025	August 31,2021
2014-15	Interim	356256.00	79168	November 03,2021
2014-15	Final	583387.50	388925	September 20,2022
2015-16	Interim	379413.00	421570	December 10,2022
2015-16	Final	621145.50	414097	July02,2023
2016-17	Interim	368478.90	409421	November 30,2023
2016-17	Final	683571.00	455714	July25,2024
2017-18	Interim	403592.40	448436	December 17,2024
2017-18	Final	360163.50	240109	September 20,2025
2018-19	Interim	221936.40	246596	December 20,2025
2018-19	Final	281920.50	187947	August 29,2026
2019-20	Interim	162329.40	180366	December 16,2026
2019-20	Second Interim	438603.00	292402	March 27,2027
2020-21	Interim	174483.98	197842	December 17,2027

1. Shareholders / Investors who have not encashed their Dividend Warrants including Interim Dividends, if any, for any of the aforesaid Financial Years, are requested to lodge their claims by quoting their respective Folio No./DPClient ID with Company at:

Company Secretary, Indag Rubber Limited

Khemka House, 11,

Community Centre, Saket New Delhi-110017

Phone: 011-26963172-73, Email: info@indagrubber.com

1. Shareholders are advised to ensure that their claims for unpaid / unclaimed dividend are lodged timely so as to reach the same before the date indicated against each year in the table at Sr. No. 2 above. The claims received after these dates shall not be entertained and the amount outstanding shall be transferred to IEPF within 30 days of this date as per the relevant provisions of law.

2. It may also be noted that the company has transferred unclaimed dividend and equity shares (only those shares whose dividend was unclaimed since last 7 consecutive years) to IEPF account of MCA for the previous financial years, the details of which are available on our website www.indagrubber.com

3. Shareholders whose shares and unclaimed dividend have been transferred to IEPF may claim the shares or apply for refund by making an application to IEPF Authority in Form IEPF-5 (available on www.iepf.gov.in) along with requisite fee as decided by it from time to time.

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BOARD’S REPORT

To

The Members,

The Board of Directors are pleased to present the Annual Report of the Company together with the audited standalone and consolidated Financial Statements for the year ended March 31, 2021.

FINANCIAL RESULTS AND STATE OF THE COMPANY’S AFFIARS

Particulars	STANDALONE	STANDALONE	CONSOLIDATED	CONSOLIDATED
	2020-21 (Rs. In lakh)	2019-20 (Rs. In lakh)	2020-21 (Rs. In lakh)	2019-20 (Rs. In lakh)
Sales and other Income	17,388.25	19,135.00	17,388.38	19,135.25
Proft before Finance Cost&Depreciation	2,031.74	2,070.97	2,048.12	2,125.21
Finance Cost	26.58	25.00	26.58	25.00
Proft before Depreciation	2,005.16	2,045.97	2,021.54	2,100.21
Depreciation	328.55	374.32	328.55	374.32
Exceptional Items	1,324.02	-	1,324.02	-
Proft after exceptional and before tax (including discontinued operations)	352.59	1,671.65	368.97	1,725.89
Proft after tax(before minority)	276.06	1,328.10	281.52	1,372.05
Proft after tax(after minority)	276.06	1,328.10	253.62	1,345.42
Transferto General Reserve	-	-	-	-
Interim Dividend	236.25	630.00		-
Final Dividend		393.75		-

PERFORMANCE REVIEW

During the year under review your Company had net revenue of Rs.173.88 crores as against Rs. 191.35 crores in the previous year. The Profit before finance cost and depreciation amounted to Rs. 20.32 crores as against Rs. 20.71 crores in the previous year.

During the year under review, the Company opted for the Himachal Pradesh (Legacy Cases Resolution) Scheme, 2019 on January 21, 2021 for settlement of Entry Tax matter of earlier years which was pending before the Hon’ble High Court of Himachal Pradesh. The Company has settled the case and an amount of Rs. 1,324.02 Lakhs (including settlement fee of Rs. 79.34 Lakhs) has been charged as expense and the same has been treated as Exceptional Item, due to which Profit before tax during the year worked out to Rs. 3.53 crores as compared to Rs. 16.72 crores in the previous year.

The financial results and the results of operations, including major developments have been further discussed in various sections of this report.

Operations of the Company were impacted severely by COVID-19 disruptions. Various State Transport Undertaking (STU) could not resume their full operations, which impacted our business.

INTERNAL FINANCIAL CONTROLS

The Company has policies and procedures in place for ensuring orderly and efficient conduct of its business including adherence to the 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. The details of internal control system are given in the Management Discussion and Analysis Report (MDAR).

DIVIDEND

During the year, the Board of Directors had declared Interim Dividend of Rs. 0.90/- per equity share of face value of Rs. 2/- each (45%) on November 10, 2020 which has been paid on December 05, 2020.

The Board of Directors are pleased to recommend a Final Dividend of Rs. 1.50/- per Equity Share of face value of Rs. 2/- each (75%) for the Financial Year 2020-2021, thus making a total Dividend of Rs. 2.40/- per Equity Share of Rs. 2/each (120%).

Accordingly, subject to the approval of the Shareholders at the ensuing Annual General Meeting, the Final Dividend will be paid to those Members whose name appears on the Register of Members of the Company as on close of business hours of September 30, 2021 if shares are held in physical form; in respect of shares held in dematerialized form it will

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be paid to those members whose names are furnished by NSDL and CDSL, as beneficial owners as on September 23, 2021.

INVESTOR EDUCATION AND PROTECTION FUND

Final Dividend which was declared by the company for the year ended March 31, 2014 at the Annual General Meeting held on July 25, 2014 and remained unclaimed will be transferred to the Investor Education and Protection Fund Authority (IEPF) of the Central Government within 30 days of August 31, 2021 pursuant to the provisions of Companies Act, 2013. Thereafter no claim shall lie on final dividend for the year ended March, 2014 from the shareholders. Notice for unpaid dividend is attached with this annual report.

Details of unclaimed dividend and equity shares in respect of which dividend remained unpaid for a period of 7 consecutive years were transferred to Investor Education and Protection Fund Authority during the year are as under-

Year	Type	Amount transferred to IEPF (in Rs.)	Date on which dividend transferred to IEPF	Number of shares transferred to IEPF	Date on which shares transferred to IEPF
2012-13	Final	461,494.00	11.09.2020	7255	22.09.2020
2013-14	Interim	307,394.50	18.12.2020	9275	30.12.2020

Details of resultant benefit during the year i.e. Dividend arising out of the shares already transferred to IEPF are as under-

Year	Total number of Shares lying in IEPF on the date of declaration of Dividend	Dividend directly transferred to IEPF (in Rs.)
2020-21(Interim)	2,52,461	2,24,777.90

TRANSFER TO RESERVES

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

MATERIAL CHANGES AFFECTING FINANCIAL POSITIONS OF THE COMPANY

No material changes have occurred and commitments made, affecting the financial position of the company, between the end of the financial year of the company and the date of this report.

There is no order passed by any regulator or court or tribunal against the company, impacting the going concern concept or future operations of the company.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Mr. Ranjitha Parameswar (DIN: 01879913) completed his second consecutive term as Independent Director on March 31, 2021 and ceased to be the member of the Board and Committees, thereof.

Mr. Kewal Krishan Kapur (DIN: 00745117) completes his term as Whole Time Director designated as Chief Executive Officer on May 31, 2021 and ceases to be the member of the Board and Committees, thereof. The Board of Directors appreciated the efforts and expertise of Mr. K.K. Kapur and placed on record the contribution made by him during his tenure with the Company.

Mr. Vijay Shrinivas (DIN: 08337007) was appointed as Additional Director and Whole Time Director (Key Managerial Personnel designated as Chief Executive Officer) by the Board of Directors of the Company upon recommendation of the Nomination & Remuneration Committee with effect from June 01, 2021. The appointment of Mr. Shrinivas is subject to the approval of the members in this Annual General Meeting.

Mr. Shiv Vikram Khemka (DIN: 01214671), who retires by rotation at this meeting and being eligible has offered himself for re-appointment. The Board recommends the re-appointment of Mr. Shiv Vikram Khemka as Director liable to retire by rotation. The information in terms of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been provided in the notes to the notice convening the Annual General Meeting.

During the year under review, Shri J.K. Jain, Chief Financial Officer of the Company passed away on September 24, 2020 and vacated the office on the said date.

Mr. Anil Bhardwaj, General Manager (Finance and Accounts) was re-designated as General Manager (Accounts) & Chief Financial Officer of the Company on February 17, 2021.

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INDEPENDENT DIRECTORS’ DECLARATION

Independent Directors have confirmed and declared that they are not disqualified to act as an Independent Director in compliance with the provisions of Section 149 of the Companies Act, 2013. The Board confirms that the Independent Directors fulfill all the conditions specified in the Companies Act, 2013 making them eligible to act as Independent Directors.

BOARD MEETINGS

The details of number and dates of meetings held by the Board and its Committees, attendance of Directors and sitting fee/ commission/ remuneration paid to them is given separately in the attached Corporate Governance Report.

EVALUATION OF THE BOARD’S PERFORMANCE

In compliance with the Companies Act, 2013 and Regulation 17(10) of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, the performance evaluation of the Board, its committees and of individual directors was carried out during the year under review. More details on the same are given in the Corporate Governance Report.

The performance evaluation of Independent Directors was done by the entire Board of Directors on February 10, 2021 and in the evaluation, the directors who were subject to evaluation did not participate. The Board opined that the Independent Directors meet the criteria of persons with integrity and possess relevant expertise / experience, including proficiency (where required) and fulfilling the conditions specified in the Act for appointment as Independent Directors and are independent of the Management.

NOMINATION AND REMUNERATION POLICY

The Remuneration Policy applies to Directors and senior management personnel. The policy is approved by the Nomination and Remuneration Committee and the Board.

The policy is available on the company’s website and web link for the same is https://indagrubber.com/uploads/document/ NRC-policy.pdf. The policy is designed to attract, motivate and retain manpower by creating congenial work environment and inculcating a sense of belonging, besides offering appropriate remuneration package and superannuation benefits. The appointment and remuneration of Executive Directors is based on merit and seniority of person. Non- Executive Directors are paid sitting fee and commission in accordance with the Companies Act, 2013.

STAKEHOLDERS’ RELATIONSHIP COMMITTEE

Stakeholder Relationship Committee comprised of Mr. Ranjitha Parameswar as Chairman (till March 31, 2021)) and Mr. Nand Khemka and Mr. Kewal Krishan Kapur as members. Mr. Ranjitha Parameswar vacated the position of Chairman of the Committee due to completion of his tenure as Independent Director of the Company with effect from March 31, 2021 and Mr. Harjiv Singh was appointed as the Chairman of the Committee (with effect from April 01, 2021). The details of terms of reference of the Committee member, dates of meetings held and attendance of the Directors are given separately in the Corporate Governance Report.

AUDIT COMMITTEE

Audit Committee comprised of Mr. Ranjitha Parameswar as Chairman (till March 31, 2021) and Mr. Nand Khemka and Mr. Prithvi Raj Khanna as members. Mr. Ranjitha Parameswar vacated the position of Chairman of the Committee due to completion of his tenure as Independent Director of the Company with effect from March 31, 2021. Mr. Prithvi Raj Khanna was nominated as the Chairman of the Committee and Mr. Harjiv Singh was appointed as a member of the Committee with effect from April 01, 2021. The details of terms of reference of the Audit Committee member, dates of meeting held and attendance of the Directors are given separately in the Corporate Governance Report.

VIGIL MECHANISM

Company has a vigil mechanism for directors and employees to report their concerns about unethical behavior, actual or suspected fraud or violation of the company’s Code of Conduct. The mechanism provides for adequate safeguards against victimization of directors and employees who avail of the mechanism. In exceptional cases, directors and employees have direct access to the Chairman of the Audit Committee. Vigil Mechanism (Whistle Blower Policy) is available on the company’s website.

DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The company has a policy on prohibition, prevention and redressal of sexual harassment of women at workplace and matters connected therewith or incidental thereto covering all the aspects as contained under “Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013”.

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The company has complied with the provision relating to constitution of Internal Complaints Redressal Committee under the Act. The Internal Committee composed of internal members and an external member who has extensive experience in the field.

During the financial year 2020-2021, the details of the complaint were as under-

1.	Number of complaints fled duringthe fnancialyear	Nil
2.	Number of complaints disposed of duringthe fnancialyear	NotApplicable
3.	Number of complaintspendingas on end of the fnancialyear	Nil

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO

The particulars required to be furnished under Section 134(3)(m) of the Companies Act, 2013 read with Companies (Account) Rules, 2014 are set out in Annexure ‘I’ , which forms part of the report.

COMMITMENT TO QUALITY AND ENVIRONMENT

Indag recognizes quality and productivity as a pre-requisite for its operations and has implemented ISO 9001:2015 standards and ISO 14001:2015 standards.

Anti-pollution systems are fully installed and operational. Continuous efforts to preserve the environment are pursued.

CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility Committee comprised of Mr. Nand Khemka as the Chairman and Mr. Prithvi Raj Khanna, Mr. K.K. Kapur, Mr. Shiv Vikram Khemka and Mr. Uday Harsh Khemka as the members. (*Appointed as members of the Committee with effect from August 27, 2020.)

During the year, we continued CSR activities towards improving the quality of life interalia, of the community in and around Nalagarh through health programs, education and better agricultural and dairy farming practices. We also continued our support to five (5) Navi Disha Schools at Nabha engaged in imparting education to under privileged students. Details about CSR policy and initiatives taken by the Company during the year are available on company’s website www.indagrubber.com

The web-link of the same is https://indagrubber.com/uploads/document/CSR_Policy.pdf

Report on CSR activities is given in Annexure ‘II’ forming part of this report.

PARTICULARS OF EMPLOYEES

Information in accordance with the provisions of Section 134(3)(q) and Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, regarding employees is given in Annexure ‘III’ .

SUBSIDIARIES, JOINT VENTURE AND ASSOCIATE COMPANIES

The Company has a subsidiary company namely SUN-AMP Solar India Private Limited, a step-down subsidiary namely Samyama Jyothi Solar Energy Private Limited and a joint venture namely Sun Mobility EV Infra Private Limited. The company has periodically reviewed the matters pertaining to its subsidiary, step down subsidiary and joint venture and found it satisfactory.

During the year under review, SUN-AMP Solar India Private Limited (Subsidiary) has entered into a transaction for sale of 100% equity shareholding of Samyama Jyothi Solar Energy Private Limited (Step-down Subsidiary of Indag) to NextPower III Singapore Holdco Pte. Ltd. After completion of the aforesaid transaction, Samayama Jyothi will cease to be a subsidiary of SUN-AMP and step-down subsidiary of Indag. However, SUN-AMP Solar India Private Limited will continue to remain a non-material subsidiary of Indag.

A statement containing salient features of the financial statements of the Company’s subsidiary, step down subsidiary and joint venture is attached to the financial statements of the Company in Form AOC-1 as Annexure ‘IV’.

Copies of the financial statement of the subsidiary and joint venture companies will be available on the Company’s website www.indagrubber.com. The company has framed a Policy for determining Material Subsidiary. Contribution of subsidiary(ies) to the overall performance of the company is given in Note “45” of the consolidated financial statements.

RELATED PARTY TRANSACTIONS

All related party transactions entered by the company during the financial year were in the ordinary course of business and at arm’s length basis, were entered with the omnibus/prior approval of the Audit Committee, which were periodically

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placed before the Board for review. The details of the transactions with related party are provided in the company’s financial statements in accordance with the Accounting Standards.

The statement containing details of the Related Party transactions of the Company in Form AOC-2 is enclosed as

Annexure ‘V’.

The company has a policy on materiality of and dealing with Related Party Transactions, as approved by the Board, which is available at its website www.indagrubber.com.

AUDITORS

Khanna & Annadhanam, Chartered Accountants, Statutory Auditors of the Company were appointed in the 38th Annual General Meeting held on June 19, 2017 to hold office until the conclusion of 43rd Annual General Meeting. There are no qualifications or reservation or remarks made by the Auditors in their Report.

SECRETARIAL AUDIT

Secretarial Audit was conducted during the year by the Secretarial Auditor RMG & Associates, Practicing Company Secretaries. The Secretarial Auditors Report is attached as Annexure ‘VI’ . There are no qualifications or observations or remarks made by the Secretarial Auditor in their report.

COST AUDITORS

Based on the recommendation of Audit Committee, the Board approved the appointment of Shome & Banerjee, Cost Accountants, as the Cost Auditors of the company for the financial year 2021-2022 at a remuneration of Rs. 1,50,000/plus out of pocket expenses and taxes. The proposed remuneration of the Cost Auditors would be approved by the members in the ensuing General Meeting.

In terms of Section 148 of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 the cost accounts and records are being made and maintained by the company.

Cost Audit Report for the financial year ended on March 31, 2020 was filed on September 14, 2020.

REPORTING OF FRAUDS BY AUDITORS

During the year under review, none of the Auditors have reported to the Audit Committee, or to the Board, under section 143(12) of the Companies Act, 2013, any instances of fraud committed against the Company by its officers or employees.

LOANS, GUARANTEES OR INVESTMENTS

The company has made investments in securities of other body corporate(s) and given guarantees in the ordinary course of its business, the details of which are given in Note ‘5 & 11’ to Financial Statements, which are within the limits prescribed under Section 186 of the Companies Act, 2013.

DEPOSIT

Your company has not accepted any deposit and, accordingly no amount was outstanding as at the Balance Sheet date.

MANAGEMENT DISCUSSION & ANALYSIS REPORT

Management Discussion and Analysis Report for the year under review, as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is annexed herewith as Annexure ‘VII’ to this Report.

The development and implementation of risk management policy has been covered in the Management Discussion and Analysis Report.

EXTRACT OF ANNUAL RETURN

The particular required to be furnished under Section 92(3) read with Section 134(3) of the Companies Act, 2013 and with Companies (Management and Administration) Rules, 2014 as prescribed is available at company’s website link at https://indagrubber.com/investorrelation/detail/1/1

LISTING

The equity shares of your Company are listed on the BSE Limited.

DEMATERIALISATION OF SHARES

The shares of your Company are being traded in electronic form and the Company has established connectivity with both the depositories i.e. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited

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(CDSL). In view of the numerous advantages offered by the depository system, members are requested to avail the facility of dematerialization of shares with either of the depositories as aforesaid. As on March 31, 2021, 99.07% of the share capital stands dematerialized.

CORPORATE GOVERNANCE

A separate report of the Board of Directors of the Company on Corporate Governance is included in the Annual Report .

CODE OF CONDUCT

Directors, key managerial personnel and senior management of the company have confirmed compliance with the Code of Conduct applicable to the directors and employees of the company and the declaration in this regard made by the CEO & Whole Time Director forms a part of this report of the directors. Code of Conduct is available on the company’s website www.indagrubber.com.

COMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCE

The certificate from RMG & Associates, Practicing Company Secretaries confirming compliance with the requirements of Corporate Governance as stipulated in Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms part of the Annual report.

COMPLIANCE WITH SECRETARIAL STANDARD

Secretarial Standard 1: Meetings of the Board of Directors and Secretarial Standard 2: General Meetings, as applicable have been complied with by the company.

DISCLOSURE WITH RESPECT TO DEMAT SUSPENSE ACCOUNT/UNCLAIMED SUSPENSE ACCOUNT-

	Particulars	Number of shareholders	Number of shares
A.	Aggregate number of shareholders and the outstanding shares in the suspense account lyingat the beginningof theyear	117	38275
B.	Number of shareholders who approached listed entity for transfer of shares from suspense account duringtheyear	NIL	NIL
C.	Number of shareholders to whom shares were transferred from suspense account duringtheyear	NIL	NIL
D.	Number of shareholders who have not claimed dividend for last 7 years, and whose shares have been transferred to IEPF account of MCA from Demat Suspense Account	35	11275
E.	Aggregate number of shareholders and the outstanding shares in the suspense account lying at the end of the year The voting rights on these shares shall remain frozen till the rightful owner of such shares claim the shares	82	27000

ANNEXURES FORMING A PART OF BOARD’S REPORT

The Annexure referred to in this Report and other information which are required to be disclosed are annexed herewith and form a part of this Report:

Annexure	Particulars
I	Particulars of Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
II	Report on Corporate Social Responsibility
III	Particulars of Employees under Section 134(3)(q) and Section 197(12) of the Companies Act, 2013
IV	Form AOC-1
V	Form AOC-2
VI	Secretarial Audit Report
VII	Management Discussion and Analysis Report

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CAUTIONARY STATEMENT

Statements in this report, describing the Company’s objectives, expectations and/or anticipations may be forward looking within the meaning of applicable Securities Law and Regulations.

Actual results may differ materially from those stated in the statement. Important factors that could influence the Company’s operations include global and domestic supply and demand conditions affecting selling prices of finished goods, availability of inputs and their prices, changes in the Government policies, regulations, tax laws, economic developments within the country and outside and other factors such as litigation and industrial relations.

The Company assumes no responsibility in respect of the forward-looking statements, which may undergo changes in future on the basis of subsequent developments, information or events.

DIRECTOR’S RESPONSIBILITY STATEMENT

Your Directors wish to inform members that the Audited Accounts containing Financial Statements for the Financial Year 2020-21 are in conformity with the requirements of the Companies Act, 2013. They believe that the Financial Statements reflect fairly, the form and substance of transactions carried out during the year and reasonably present the Company’s financial condition and results of operation.

In terms of provisions of Section 134(3)(c) of the Companies Act, 2013, your Directors further confirm as under:

• i) That in preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

• ii) That the Directors had 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 Company at the end of financial period and of profit or loss of the Company for that period;

• iii) That the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

• iv) That the Directors have prepared the annual accounts on a “going concern basis”.

• v) That the Directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively; and

• vi) That the Directors had devised proper system to ensure compliance with the provision of all applicable laws and that such systems were adequate and operating effectively.

The Company’s Internal Auditors have conducted periodic audits to provide reasonable assurance that the Company’s approved policies and procedures have been followed.

APPRECIATIONS

Your Directors wish to place on record their appreciation for the continuous support received from the members, customers, suppliers, bankers, various statutory bodies of the Government of India and the Company’s employees at all levels.

For and on behalf of the Board of Directors Indag Rubber Limited

Place : New Delhi Date : May 08, 2021

Nand Khemka Chairman & Managing Director DIN: 00211084

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ANNEXURE-I

A. Conservation of Energy

• (i) Steps taken or impact on conservation of energy are as under-

• All fluorescent tubes and bulbs were changed to LED lights at plant.

• (ii) Steps undertaken by the company for utilizing alternate source of energy:

• Solar power rooftop of 35 KV is being used at Nalagarh plant as an alternate source of energy.

• (iii) Capital investment on energy conservation equipments:

• During the current financial year, no capital expenditure has been incurred on energy conservation equipments.

• B. Technology Absorption, Research and Development (R&D)

• The company has not imported any technology during the last three years.

• C. Research and development (R&D):

Sustained R&D efforts are being made by the Company to improve product quality.

Research Sustained	and development (R&D): R&D eforts are being made by the Company to improve product quality.
Sl.no.	Particulars	Amount (Rs. in lakh)
1	Capitalexpenditurein R&D	12.62
2	Revenue expenditurein R&D	1.08
3	Expenditure onSalarywith respect toR&D	8.42

• D. Foreign Exchange Earning and Outgo

Total Foreign Exchange used and earned:

Particulars	2020-21 (Rs. in lakh)	2019-20 (Rs. in lakh)
Foreign Exchange earned	135.39	105.26
Foreign Exchange used	5.24	139.15

For and on behalf of the Board of Directors Indag Rubber Limited

Place : New Delhi Date : May 08, 2021

Nand Khemka Chairman & Managing Director DIN: 00211084

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ANNEXURE-II

Annual Report on CSR Activities for the Financial Year ended on March 31, 2021.

1. Brief outline on CSR Policy of the Company:

• (a) Company would spend not less than 2% of the average net profit of the company, calculated in accordance with Section 198 of the Companies Act, 2013, made during the three immediately preceding Financial Year.

• (b) CSR activities shall be undertaken by the company as prescribed under Schedule VII of the Companies Act, 2013.

• (c) Company will give preference to conduct CSR activities in Nalagarh (Himachal Pradesh) and National Capital Region and such other State(s) in India wherein the company has its operation; and

• (d) Board may decide to undertake the activities either by itself or through a registered trust or a registered society or a company established by the company, or its holding or subsidiary or associate company under Section 8 of the Act or otherwise.

• Company has been carrying out CSR activities mainly in the field of promoting education, rural area development, empowerment of weaker section, environment sustainability, sanitation, healthcare, vocational skills and livelihood enhancement etc.

2. Composition of CSR Committee:

Sl. No.	Name of Director	Designation/ Nature of Directorship	Number of meetings of CSR Committee held during theyear	Number of meetings of CSR Committee attended during theyear
1.	Mr. Nand Khemka	Chairman	04	04
2.	Mr. K.K. Kapur	Member	04	04
3.	Mr. P.R Khanna	Member	04	04
4.	Shiv Vikram Khemka	Member	04	02*
5.	UdayHarsh Khemka	Member	04	02*

*Mr. Shiv Vikram Khemka and Mr. Uday Harsh Khemka were appointed as the member of the CSR Committee on August 27, 2020.

3.

Web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed on the website of the company: The Board adopted the CSR policy, which is uploaded at Company website the web link for the same is https://indagrubber.com/uploads/document/CSR_Policy.pdf.

• Details of the CSR activities undertaken at Indag can be accessed at https://indagrubber.com/uploads/document/ CSR-Activities-carried-out-during-2020-2021.pdf

4. 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): Not Applicable

5. 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:

Sl. No.	Financial Year	Amount available for set-of from preceding Financial Years(in Rs.)	Amount required to be set-of for the Financial Year, if any (in Rs.)
Nil

6.

7.

• Average net profit of the Company as per section 135(5): Rs. 16,70,38,000

• (a) Two percent of average net profit of the Company as per section 135(5): Rs. 33,41,000

  • Add: Amount unspent brought forward: Rs. 1,98,000

• (b) Surplus arising out of the CSR projects or programmes or activities of the previous Financial Years: Nil

• (c) Amount required to be set off for the financial year, if any: Nil

• (d) Total CSR obligation for the Financial Year (7a+7b-7c): Rs. 35,39,000

8. (a) CSR amount spent or unspent for the Financial Year:

Total Amount Spent for the Financial Year. (In Rs.)	Amount Unspent(In Rs.)	Amount Unspent(In Rs.)	Amount Unspent(In Rs.)	Amount Unspent(In Rs.)	Amount Unspent(In Rs.)
	Total Amount transferred to Unspent CSR Account asper section 135(6).		Amount transferred to any fund specifed under Schedule VII asper secondproviso to section 135(5).
	Amount.	Date of transfer.	Name of the Fund	Amount.	Date of transfer.
35,62,224	Nil	Nil	Nil	Nil	Nil

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(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Sl. No. Name of the Project Item from the list of activities in Schedule VII to the Act. Local area (Yes/ No). Location of the project. Project duration. Amount allocated for the project (in Rs.). Amount spent in the current Financial Year (in Rs.). Amount transferred to Unspent CSR Account for the project as per Section 135(6) (in Rs.). Mode of Implementation Direct (Yes/No). Mode of Implementation -Through Implementing Agency State District Name CSR Registration number. Nil (c) Details of CSR amount spent against other than on-going projects for the Financial Year:	(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Sl. No. Name of the Project Item from the list of activities in Schedule VII to the Act. Local area (Yes/ No). Location of the project. Project duration. Amount allocated for the project (in Rs.). Amount spent in the current Financial Year (in Rs.). Amount transferred to Unspent CSR Account for the project as per Section 135(6) (in Rs.). Mode of Implementation Direct (Yes/No). Mode of Implementation -Through Implementing Agency State District Name CSR Registration number. Nil (c) Details of CSR amount spent against other than on-going projects for the Financial Year:	(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Sl. No. Name of the Project Item from the list of activities in Schedule VII to the Act. Local area (Yes/ No). Location of the project. Project duration. Amount allocated for the project (in Rs.). Amount spent in the current Financial Year (in Rs.). Amount transferred to Unspent CSR Account for the project as per Section 135(6) (in Rs.). Mode of Implementation Direct (Yes/No). Mode of Implementation -Through Implementing Agency State District Name CSR Registration number. Nil (c) Details of CSR amount spent against other than on-going projects for the Financial Year:	(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Sl. No. Name of the Project Item from the list of activities in Schedule VII to the Act. Local area (Yes/ No). Location of the project. Project duration. Amount allocated for the project (in Rs.). Amount spent in the current Financial Year (in Rs.). Amount transferred to Unspent CSR Account for the project as per Section 135(6) (in Rs.). Mode of Implementation Direct (Yes/No). Mode of Implementation -Through Implementing Agency State District Name CSR Registration number. Nil (c) Details of CSR amount spent against other than on-going projects for the Financial Year:	(8)	Mode of Implementation - Through Implementing Agency	CSR Registration number.	CSR00000083	CSR00000802	NA	NA	NA	NA	NA	NA	NA
(11)	Mode of Implementation -Through Implementing Agency	CSR Registration number.	Nil
		Name
						Name	Youthreach	The Nabha Foundation	NA	NA	NA	NA	NA	NA	NA
(10)	Mode of Implementation Direct (Yes/No).
				(7)	Mode of implementation - Direct (Yes/ No).		No	No	Yes	Yes	Yes	Yes	Yes	Yes	Yes
(9)	Amount transferred to Unspent CSR Account for the project as per Section 135(6) (in Rs.).
				(6)	Amount spent for the project (in Rs.)		Rs. 8,00,000	Rs. 22,00,000	Rs. 64,710	Rs. 80,000	Rs. 2,52,000	Rs. 34,000	Rs. 64,474	Rs. 62,080	Rs. 5,000	Rs. 35,62,264
(8)	Amount spent in the current Financial Year (in Rs.).
				(5)	Location of the project.	District	Nalagarh	Nabha	Nalagarh	Nalagarh	Nalagarh	Nalagarh	Nalagarh	Nalagarh	Nalagarh	Total
(7)	Amount allocated for the project (in Rs.).
						State	Himachal Pradesh	Punjab	Himachal Pradesh	Himachal Pradesh	Himachal Pradesh	Himachal Pradesh	Himachal Pradesh	Himachal Pradesh	Himachal Pradesh
(6)	Project duration.			(4)	Local area (Yes/ No).		Yes	No	Yes	Yes	Yes	Yes	Yes	Yes	Yes
				(3)	Item from the list of activities in Schedule VII to the Act.		Promoting health care including preventive health care and Sanitation.	Promoting Education	Rural development	Rural development	Promoting equality/ empowerment	Rural development	Promoting health care including preventive health care and Sanitation.	Promoting health care including preventive health care and Sanitation.	Promoting gender equality and empowering women.
(5)	Location of the project.	District
		State
(4)	Local area (Yes/ No).
				(2)	Name of the Project		Healthcube	Support to Primary Schools	Contribution to Govt. School	Infrastructural Assistance	Reducing inequalities among socially and economically backward groups	Promote rural sports	Creation of COVID isolation ward at Nalagarh, Plant	Medical aid and treatment to road accident victims	Celebration of International Women Day 2021
(3)	Item from the list of activities in Schedule VII to the Act.
(2)	Name of the Project
(1)	Sl. No.			(1)	Sl. No.		1	2	3	4	5	6	7	8	9

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(d) Amount spent in Administrative Overheads:Nil	(e) Amount spent on Impact Assessment, if applicable:Nil	(f) Total amount spent for the Financial Year (8b+8c+8d+8e):Rs. 35,62,264	(g) Excess amount for set of, if any	Sl. No. Particular Amount (In Rs.)	(i) Two percent of average net proft of the company as per section 135(5) 35,39,000	(Including Rs. 1,98,000, the unspent amount of Previous Year)	(ii) Total amount spent for the Financial Year 35,62,264	(iii) Excess amount spent for the Financial Year [(ii)-(i)] 23,264	(iv) Surplus arising out of the CSR projects or programmes or activities of the previous Financial Years, if any -	(v) Amount available for set of in succeeding Financial Years [(iii)-(iv)] Nil	9. (a) Details of Unspent CSR amount for the preceding three Financial Years:	Sl. Preceding Amount transferred to Amount spent Amount transferred to any fund specifed under Amount remaining	No. Financial Year. Unspent CSR Account under in the reporting Schedule VII as per section 135(6), if any. to be spent in	section 135 (6) (in Rs.) Financial Year succeeding Name of the Fund Amount Date of transfer.	(in Rs.). Financial Years. (in Rs).	(in Rs.)	1 2019-20 Nil Rs. 1,98,000 Nil Nil Nil Nil	2 2018-19 Nil Nil Nil Nil Nil Nil	3 2017-18 Nil Nil Nil Nil Nil Nil	Total Rs. 1,98,000	(b) Details of CSR amount spent in the Financial Year for on-going projects of the preceding Financial Year(s):	(1) (2) (3) (4) (5) (6) (7) (8) (9)	Sl. Project ID. Name Financial Year in Project Total amount Amount spent on Cumulative amount Status of	No. of the which the project duration. allocated for the project in the spent at the end of the project -	Project. was commenced. the project reporting Financial reporting Financial Completed /	(in Rs.). Year. (in Rs). Year. (in Rs.) Ongoing.	Nil	10. 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:Nil	(asset-wise details)	(a) Date of creation or acquisition of the capital asset(s).	(b) Amount of CSR spent for creation or acquisition of capital asset. (c) Details of the entity or public authority or benefciary under whose name such capital asset is registered, their address etc.	(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset). 11. Specify the reason(s), if the company has failed to spend two per cent of the average net proft as per section 135(5):Not Applicable	Place : New Delhi K.K. Kapur Nand Khemka Date : May 08, 2021 (Chief Executive Ofcer) Chairman & Managing Director

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ANNEXURE-III

Particulars of Employees

PARTICULARS OF EMPLOYEES PURSUANT TO SECTION 134(3)(q) OF THE COMPANIES ACT, 2013 READ WITH RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014

Requirements of Rule 5(1)	Details
(i) the ratio of the remuneration of each director to the median remuneration of the employees of the company for the fnancial year;	Mr. Mr. Nand Khemka - 656 : 29 (2239%) Mr. K K Kapur - 658 : 29 (2245%) Mr. P R Khanna - 51:29 (175%) Mr. R. Parameswar - 51:29 (175%) Ms. Bindu Saxena - 26:29 (88%) Mr. Harjiv Singh - 18:29 (61%)
(ii) the percentage increase in remuneration of each director, Chief Financial Ofcer, Chief Executive Ofcer, Company Secretary or Manager, if any, in the fnancial year;	Directors Mr. Nand Khemka - (14.19%) Mr. K K Kapur - (13.95%) Mr. P R Khanna - (9.56%) Mr. R. Parameswar - (9.56%) Ms. Bindu Saxena - (6.06%) Mr. Uday Harsh Khemka - NIL Mr. Shiv Vikram Khemka - NIL Mr. Harjiv Singh - 48.28% Key Managerial Personnel Mr. J.K. Jain(CFO) - 2.54% Mrs. Manali D Bijlani(CS) - 3.51% *Mr Anil Bhardwaj(CFO) - N.A.
(iii) the percentage increase in the median remuneration of employees in the fnancial year;	6.24%
(iv) the number of permanent employees on the rolls of company;	327 employees as on 31.03.2021
(v) average percentile increase already made in the salaries of employees other than the managerial personnel in the last fnancial year and its comparison with the percentile increase in the managerial remuneration and justifcation thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration;	“Average Salary increase of non-managerial employees is 3.90% Average Salary decrease of managerial employees (Directors) is 14.07%”
(vi) afrmation that the remuneration is as per the remuneration policy of the company.	Remuneration paid during the year ended March 31, 2021 is as per the Remuneration Policy of the Company

*Mr. JK Jain vacated office of CFO on 24th Sep 2020 and the data is calculated accordingly

**Mr. Anil Bhardwaj was appointed as GM-Accounts & CFO w.e.f 17th Feb 2021

For and on behalf of the Board of Directors Indag Rubber Limited

Place : New Delhi Date : May 08, 2021

Nand Khemka Chairman & Managing Director DIN: 00211084

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Last Employment	Arvind Ltd.	Enron India Pvt. Ltd.	Promoter and Chairman of Indag Rubber Limited since incorpration	ATC Tyre Ltd.	Shell India Market Pvt. Ltd.	Continental India Ltd.	Berger Paints Ltd.	J.K. Tyre Industries Ltd.	Rajdoot Paints Ltd.	GAIL (India) Ltd.	_ Mr. Jainendar Kumar Jain vacated the ofce of Chief Financial Ofcer due to his demise on September 24, 2020. ** Mr. Anil Bhardwaj General Manager (F&A) was appointed_ as General Manager (Accounts) & CFO by the Board of Directors of the Company in their meeting held on February 17, 2021. For and on behalf of the Board of Directors Indag Rubber Limited Nand Khemka* Place : New Delhi Chairman & Managing Director Date : May 08, 2021 DIN: 00211084
Age (in years)	49	83	86	68	49	64	52	54	49	75
Exp.	22 years	Over 50 years	Over 50 years	45 years	26 years	46 years	30 years	30 years	24 years	45 years
Date of Com- mencement of Employ- ment	27.04.2018	09.04.2001	02.06.1978	01.12.2010	10.11.2018	03.03.2015	01.07.2010	17.05.2010	08.03.2004	01.07.2006
Qualifcations	B. Tech, MBA (IIFT)	Masters in Mathematics, CMA	MS in Foreign trade and masters Degree in Business Administration from Columbia Unoversity, New York, USA	B.Sc.	Management Programme (IIM Lucknow), B.SC(Computer Science)	M.Sc Chemistry, LIRI	B.Com., CMA	Dip in Elect, B.Sc, MBA	B.Sc (MICRO BIOLOGY- HONS), F.C.S., LL.B.	B Com , CA
Gross Remuneration received (Amt. in Rs.)	1,12,91,945	78,96,927	78,75,000	47,79,745	41,51,994	34,70,618	33,53,909	33,45,509	24,76,103	22,69,096
Nature of Employment, whether contractual or otherwise	Regular	Business Head (Contractual)	Business Head (Contractual)	Regular	Regular	Regular	Regular	Regular	Regular	Regular
Relationship with other Directors	Nil	Nil	Relative of Mr. Shiv Vikram Khemka and Mr. Uday Harsh Khemka	Nil	Nil	Nil	Nil	Nil	Nil	Nil
% of equity shares	Nil	Nil	0.07	Nil	Nil	Nil	0.00003	Nil	Nil	0.00003
Designation	Chief Commercial Ofcer	Chief Executive Ofcer & Whole Time Director	Chairman cum Managing Director	Sr. Genaral Manager (Plant)	General Manager (Marketing)	Sr.Deputy General Manager (Plant)	General Manager (Accounts) & CFO (w.e.f. February 17, 2021)	General Manager (Sales & Marketing)	Company Secretary	Chief Financial Ofcer (Up to September 24, 2020 and includes Leave Encashment)
Name	Mr. Vijay Shrivivas	Mr. Kewal Krishan Kapur	Mr. Nand Khemka	Mr. Bijendra Kashyap	Mr. Rohit Kapoor	Mr. Krishan Kumar Awasthi	Mr. Anil Bhardwaj**	Mr. Arvind Dwivedi	Ms. Manali D. Bijlani	Mr. Jainendar Kumar Jain*
Sl. No.	1	2	3	4	5	6	7	8	9	10

29

ANNEXURE-IV

Form AOC-1

(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014) Statement containing salient features of the financial statements of subsidiaries/ associates companies/ joint ventures

Part “A”- Subsidiaries

rule 5 of Companies (Accounts) Rules, 2014) Statement containing salient features of the fnancial statements of subsidiaries/ associates companies/ joint ventures Part “A”- Subsidiaries	rule 5 of Companies (Accounts) Rules, 2014) Statement containing salient features of the fnancial statements of subsidiaries/ associates companies/ joint ventures Part “A”- Subsidiaries	rule 5 of Companies (Accounts) Rules, 2014) Statement containing salient features of the fnancial statements of subsidiaries/ associates companies/ joint ventures Part “A”- Subsidiaries	rule 5 of Companies (Accounts) Rules, 2014) Statement containing salient features of the fnancial statements of subsidiaries/ associates companies/ joint ventures Part “A”- Subsidiaries
(In Rupees)
Sl. No.	Particulars	Details
1.	Sl. No.	1	2
2.	Name of the subsidiary	SUN-AMP Solar India (P) Limited (subsidiary of the Company)	Samyama Jyothi Solar Energy (P) Limited (Subsidiary of SUN-AMP Solar India(P)Ltd)
3.	The date since when subsidiary was acquired	October 13, 2016	October 13, 2016
4.	Reporting period for the subsidiary concerned, if diferent from the holding company’s reporting period	-	-
5.	Reporting currency and Exchange rate as on the last date of the relevant Financial year in the case of foreign subsidiaries	NA	NA
6.	Share Capital	7,33,00,000	5,56,11,130
7.	Reserves and surplus	(1,57,28,528)	2,01,45,462
8.	Total assets	5,77,49,652	17,77,07,107
9.	Total liabilities	1,78,180	10,19,50,515
10.	Investments	5,73,23,000 (Investment in Samyama)	-
11.	Turnover	-	4,11,80,102
12.	Proft(loss)before taxation	(2,96,749)	70,01,861
13.	Provision for taxation	-	10,92,291
14.	Proft(loss)after taxation	(2,96,749)	59,09,570
15.	Proposed dividend	-	-
16.	% of shareholding	51%	100% equity shares are held by SUN-AMP Solar India(P)Ltd.

The audited financial statements of the above subsidiaries have been drawn up to the same reporting date as that of the company i.e. March 31, 2021.

1. Names of subsidiaries which are yet to commence operations- Not Applicable

2. Names of subsidiaries which have been liquidated or sold during the year- On 16th October, 2020 Non-material Subsidiary Company, Sun Amp Solar India Pvt. Ltd. (Sun Amp) and step down subsidiary Samyama Jyothi Solar Energy Pvt. Ltd. (Samyama Jyothi) have signed the Share Purchase Agreement (SPA), for the sale of Sun Amp’s investment in equity shares of Samyama Jyothi, to the independent purchaser. As per SPA, there are few conditions precedent to closing, which need to be fulfilled by the Subsidiary company to the satisfaction of the Purchaser, the Purchaser will process the sale consideration of USD 1,012,000 equivalent to approximately Rs. 7.44 crores being the agreed sale consideration and the above transaction will be considered as completed post transfer of 100% Equity shares of Samyama Jyothi by Sun Amp to the Purchaser.

30

Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129(3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

Sl. No.	Name of Associates or Joint Ventures	Sun Mobility EV Infra Pvt. Ltd. (Joint Venture) (Formerly known as Alberieth EV Services Pvt. Ltd.)
1.	Latest audited Balance Sheet Date	March 31, 2020
2.	Date on which the Associate or Joint Venture was associated or acquired	February 18, 2019
3.	Shares of Associate or Joint Ventures held by the company on the year end	-
	Number of Equity shares of Rs.10/- each	15,00,000
	Number of Optionally Convertible Redeemable Preference Shares(OCRPS)of Rs.10/- each	1,20,00,000
	Amount of Investment in Associates or Joint Venture	Rs.13,50,00,000 (Rupees Thirteen Crores FiftyLakhs Only)
	Extent of Holding (in percentage)	50% (Equity Shares) 100%(OCRPS)
4.	Description of how there is signifcant infuence	By way of joint control
5.	Reason why the associate/joint venture is not consolidated	Consolidated
6.	Net worth attributable to shareholding as per latest audited Balance Sheet	Rs. 14,38,87,816/-
7.	Proft or (Loss) for the year(31-3-2021)
	i. Considered in Consolidation	(Rs.51,49,157)
	ii. Not Considered in Consolidation	(Rs.51,49,157)

1. Names of associates or joint ventures which are yet to commence operations.- Not Applicable

2. Names of associates or joint ventures which have been liquidated or sold during the year.- Not Applicable

For and on behalf of the Board of Directors

Nand Khemka Chairman cum Managing Director DIN: 00211084

K.K. Kapur

CEO and Whole Time Director DIN: 00745117

Place: New Delhi Date: May 08, 2021

Manali D. Bijlani Company Secretary

Anil Bhardwaj GM (Accounts) & CFO

31

ANNEXURE-V

Form AOC-2

(Pursuant to clause (h) of sub-section (3)of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto:

1.	Details of contracts or arrangements or transactions not at arm’s length basis	Details of contracts or arrangements or transactions not at arm’s length basis
(a)	Name(s) of the related party and nature of relationship	N.A
(b)	Nature ofcontracts/arrangements/transactions
(c)	Duration of the contracts / arrangements/ transactions
(d)	Salient terms of the contracts or arrangements or transactionsincluding thevalue,ifany
(e)	Justifcation for entering into such contracts or arrangements ortransactions
(f)	Date(s) ofapprovalby theBoard
(g)	Amount paid as advances,ifany:
(h)	Date on which the special resolution was passed in general meeting as required under frst proviso to section 188
2.	Details of material contracts or arrangement or transactions at arm’s length basis
(a)	Name(s) of the related party and nature of relationship	Elcom Systems Private Limited (Entity in which one or more KMP has a signifcant infuence/control)
(b)	Nature ofcontracts/arrangements/transactions	SubLeaseAgreement dated October 22,2020
(c)	Duration of the contracts / arrangements/ transactions	The Sub Lease Agreement shall be efective for a period of 9 years and 6 months, starting from the date of completion of construction of maintenance, repair and overhaul facility (MRO) at Bhiwadi, which is under progress. Construction of the MRO facility got delayed, mainly due to Covid-19 pandemic.
(d)	Salient terms of the contracts or arrangements or transactions including the value, if any:	Sub-lease of MRO facility for a period of 9 years 6 months, with lock-in-period of 9 years, on a monthly lease rent of Rs.36/- per sq.ft., (basic rent of Rs.20/- per sq.ft and rent premium up to Rs.16/- per sq.ft) which shall be enhanced by12% afterevery 3 years.
e	Date(s) ofapprovalby theBoard,ifany:	January15,2019*
(f)	Amount paid as advances,ifany:	NIL

* The material Related Party Transaction was approved by the Shareholders through Postal Ballot on February 22, 2019.

For and on behalf of the Board of Directors Indag Rubber Limited

Place : New Delhi Date : May 08, 2021

Nand Khemka Chairman cum Managing Director DIN: 00211084

Manali D. Bijlani Company Secretary

K.K.Kapur CEO & Whole Time Director DIN: 00745117 Anil Bhardwaj GM-Accounts & CFO

32

ANNEXURE-VI

FORM NO. MR - 3 SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED ON MARCH 31, 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]

To, The Members Indag Rubber Limited (CIN: L74899DL1978PLC009038) 11, Community Centre, Saket New Delhi - 110017

We have conducted the secretarial audit of the compliance of the applicable statutory provisions and the adherence to good corporate practices by Indag Rubber Limited (hereinafter referred to as ‘the Company’), having its Registered Office at 11, Community Centre, Saket, New Delhi - 110017. 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, to the extent possible due to the widespread of COVID – 19 Pandemic , of the Company’s books, papers, minutes 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 March 31, 2021 , complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes 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 as maintained by the Company for the Financial Year ended on March 31, 2021 according to the provisions of:

• I. The Companies Act, 2013 (‘the Act’) and the rules made thereunder;

• II. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;

• III. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

• IV. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;

• V. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):

• (a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 including the provisions with regard to disclosures and maintenance of records required under the said Regulations;

• (b) Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (“SEBI PIT Regulations”) ;

• (c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 [Not Applicable as the Company has not issued any further share capital during the Financial Year under review] ;

• (d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 [Not applicable as the Company has not offered any shares or granted any options pursuant to any employee benefit scheme during the Financial Year under review];

• (e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 [Not applicable as the Company has not issued and listed any debt securities during the Financial Year under review];

• (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 to the extent of securities issued;

• (g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 [Not applicable as the Company has not delisted/proposed to delist its equity shares from any Stock Exchange during the Financial Year under review];

• (h) The Securities and Exchange Board of India (Buy Back of Securities) Regulations, 2018 [Not applicable as the Company has not bought back/proposed to buy-back any of its securities during the Financial Year under review].

33

• VI. Laws specifically applicable to the industry to which the Company belongs, as identified by the management, that is to say:

• Indian Boilers Act, 1923

• Indian Boiler Regulations, 1950

• The Rubber Act, 1947

• Rubber Rules, 1955

For the compliances of Environmental Laws, Labour Laws & other General Laws, our examination and reporting is based on the documents, records and files as produced and shown to us and the information and explanations as provided to us, by the officers and management of the Company and to the best of our judgment and understanding of the applicability of the different enactments upon the Company, in our opinion there are adequate systems and processes exist in the Company to monitor and ensure compliance with applicable Environmental Laws, Labour Laws & other General Laws.

The compliance by the Company of applicable financial laws, like direct and indirect tax laws, have not been reviewed in this audit since the same have been subject to review by the statutory financial auditor and other designated professionals.

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

1. 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. However, the stricter applicability of the Secretarial Standards is to be observed by the Company.

2. Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

3. General Circular Nos.14/2020, 17/2020 and 20/2020 dated April 08, 2020, April 13, 2020 and May 05, 2020, respectively, issued by the Ministry of Corporate Affairs and Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/79 dated May 12, 2020 issued by the Securities and Exchange Board of India to hold Extra-Ordinary General Meetings/ Annual General Meetings through Video Conferencing (VC) or other audio-visual means (OAVM).

4. MCA Notification No. G.S.R 186 (E) dated March 19, 2020 read with Notification No. G.S.R 395 (E) dated June 23, 2020 issued by the Ministry of Corporate Affairs to conduct the Meetings of the Board or its committees through Video Conferencing (VC) or other audio-visual means (OAVM).

During the period under review, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, circulars, notifications etc. mentioned above. Further, it is recommended that for the better governance and compliance of the applicable laws to the Company, proper timelines shall be followed in stricter sense.

Further, during the year under review, the Company imposed a monetary penalty of Rs. 2,060/- on the concerned designated person, who have traded in the equity shares of the Company, during trading window closure, and the said amount has been remitted to the Investor Protection and Education Fund (IEPF) account, for violation of the Code of Conduct under “SEBI PIT Regulations” and necessary reporting in this regard has been given to the Stock Exchange(s) in compliance with the SEBI Circular No. SEBl/HO/ISD/ISD/CIR/P/2020/135 dated July 23, 2020.

We further report that

• the Board of Directors of the Company is constituted with proper balance of Executive Directors, Non-Executive Directors, Independent Directors and Woman Director during the period under review.

• Adequate notice(s) were given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent generally seven days in advance to all Directors 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.

• Majority decision is carried through, while the dissenting members’ views, if any, are generally captured and recorded as part of the minutes.

• As per the records, the Company generally filed all the forms, returns, documents and resolutions as were required to be filed with the Registrar of Companies and other authorities and all the formalities relating to the same is in compliance with the Act.

We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. We further report that during the audit period the Company has following specific events/actions having a major bearing on the Company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards etc. referred to above:

34

1. The Board of Directors of the Company in its Meeting held on November 10, 2020, declared an interim dividend of Rs. 0.90/- per equity share of Rs. 2/- each for the financial year 2020-2021.

2. The Board of Directors in its Meeting held on February 17, 2021, has re-designated Mr. Anil Bhardwaj as General Manager (Accounts) & Chief Financial Officer of the Company. The vacancy was created on September 25, 2020, due to the sad demise of Mr. Jainendar Kumar Jain, Chief Financial Officer (CFO) of the Company.

3. Mr. Ranjitha Parameswar (DIN: 01879913) who was appointed as a “Non-Executive Independent Director” for a second consecutive term of two years commencing from April 01, 2019 till March 31, 2021, completed his tenure on March 31, 2021. Consequently, he ceased to be an Independent Director of the Company with effect from close of business hours on March 31, 2021.

4. Samyama Jyothi Solar Energy Private Limited shall cease to be a subsidiary of SUN-AMP Solar India Private Limited and step-down subsidiary of the Company, consequent to the sale of 100 % shareholding in it by SUN AMP Solar India Private Limited.

For RMG & Associates Company Secretaries Firm Registration No. P2001DE16100 Peer Review No.: 734 / 2020

Date: May 08, 2021 CS Manish Gupta Place: New Delhi Partner UDIN: F005123C000262798 FCS: 5123; C.P. No.: 4095

Note: This report is to be read with ‘Annexure’ attached herewith and forms an integral part of this report.

Annexure

To,

The Members Indag Rubber Limited (CIN: L74899DL1978PLC009038) 11, Community Centre, Saket New Delhi - 110017

Our Secretarial Audit Report of even date, for the financial year ended March 31, 2021 is to be read along with this letter:

1. It is the responsibility of management of the Company to maintain secretarial records, devise proper systems to ensure compliance with the provisions of all applicable laws and regulations and to ensure that the systems are adequate and operating effectively.

2. Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by the Company with respect to secretarial compliances.

3. We believe that audit evidence and information obtained from the Company’s management is adequate and appropriate for us to provide a basis for our opinion.

4. Wherever required, we have obtained the management’s representation about the compliance of laws, rules and regulations and happening of events etc.

5. The Secretarial Audit Report is neither an assurance as to future viability of the Company nor of the efficacy or effectiveness with which the management has conducted affairs of the Company.

6. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.

7. We have conducted online verification & examination of records, as facilitated by the Company, due to COVID-19 and subsequent lockdown situation for the purpose of issuing this Report.

For RMG & Associates Company Secretaries Firm Registration No. P2001DE16100 Peer Review No.: 734 / 2020

Date: May 08, 2021 CS Manish Gupta Place: New Delhi Partner UDIN: F005123C000262897 FCS: 5123; C.P. No.: 4095

35

ANNEXURE-VII

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

The tyre retreading industry witnessed a slow down due to a complete halt of economic activities amid COVID 19 pandemic.

The economic activities bounced back strongly in Q3 & Q4 FY’21 owing to the pent-up demand. This resulted in a sharp increase in the commodity prices across the globe squeezing the profit margins for the tyre and retreading industry.

In terms of demand, the retreading industry and tyre industry registered a positive comeback before the second COVID19 wave hit the industry again in later part of Q4 FY’21.

OPPORTUNITIES AND THREATS

GST implementation, Better Roads and Higher capacity trucks have contributed to faster movement of goods. This is a positive development for the logistics industry.

The downturn since Demonetization, restricted use of cash and better and higher capacity trucks (increased capex) is leading to consolidation of Medium and Large fleet owners and the Owner Driver Segment is being squeezed out of business slowly and progressively. This trend is likely to drive Retreading traffic towards organized and branded Retreaders.

Covid has further strained finances of fleet operators who were already facing head winds due to poor fleet utilization levels, increased fuel prices and consequent cash flow & profitability issues. They are more likely to favorably consider retreading solutions over new tyres,

Radialization trend is continuously going upward every year with ~51% radialization in FY21. It is an established fact that Radial tyres are more suitable for retreading compared to bias tyres. This is a positive trend, although in the short term the fleet owners are struggling with the right maintenance and driving practices using radial tyres. Increased education efforts from Tyre and retreading companies on handling of Radial tyres, is leading to lesser abuse of radial tyre, therefore bringing more tyres for retreading in the long run.

Focus by GOI and state governments on Infrastructure outlay has led to improved road network in terms of Quantity and Quality. This is work-in-progress and will continue, driving growth in the freight movement by road. The government has also imposed curbs on imports of tyres in a move to promote domestic manufacturing, which will benefit the entire value chain as the domestic tyre production will get a fillip.

Today retreading is expected to be around 2/3rd of new tyre replacement industry, with all the key drivers we anticipate it to be 1:1 ratio between retreaded tyres and new tyres in the total tyre replacement industry in coming years.

The commodity prices for raw materials used in manufacturing of retreading materials have increased significantly in FY21 stressing the profit margins for retreading material manufacturers and retreaders. . On a conservative estimate a radial tyre gives at least 50% more mileage than a bias tyre and thus contracting the total demand in tyre replacement market proportionately.

The ongoing Covid Pandemic is a once in a century event, which is causing loss of life and creating uncertain economic environment with multiple waves.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANC

Indag has only one business segment, that is, manufacture of precured tread rubber (PTR) and allied items, hence segment wise reporting is not required.

OUTLOOK

Retreading:

Demand for retreading of tyres depends primary depends on the usage of the heavy commercial vehicles. After a strong headwind due to the global pandemic in first two quarters of FY21, the economy bounced back strongly in Q3 & Q4, bringing GDP back to its growth curve which in turn improved fleet utilization as well.

There was an oversupply of commercial vehicles in past few years due to prebuying of vehicles by fleet owners amid BS-V and BS-VI norms implementation. Now the overcapacity is anticipated to normalize and fleet utilization is expected to improve further.

Amid the global pandemic and increasing fuel prices, the severe financial conditions are encouraging the fleet owners to increase the share of retreading. Tremendous development in road infrastructure and GST implementation has also improved the average running per day of vehicles increasing the demand in tyre replacement industry. The transportation

36

industry at large is moving towards more organized setup, which will drive demand for organized players in the retreading industry.

Retreading is a sustainable solution for tyre replacement and promotes re-use which other is burnt or goes to landfill. Retreading not only has a compelling economic value proposition to the fleet owners and operators, it also is a sustainable solution to the growing environment concerns.

RISKS AND CONCERNS

The company has laid down a well-defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process. A detailed exercise is being carried out to identify, evaluate, manage and monitor various risks. The Audit Committee and the Board periodically review the risks and suggest steps to be taken to manage/ mitigate the same through a properly defined framework.

During the year, a risk analysis and assessment was conducted and no major risks were noticed, which may threaten the existence of the company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal control systems and procedures designed to effectively control the operations at its Head Office, Plants and Depots. The internal control systems are designed to ensure that the financial and other records are reliable for the preparation of financial statements and for maintaining assets. The Company has well designed Standard Operating Procedures.

Independent Internal Auditors conduct audit covering a wide range of operational matters and ensure compliance with specified standards. Planned periodic reviews are carried out by Internal Audit. The findings of Internal Audit are reviewed by the top management and by the Audit Committee of the Board of Directors.

Based on the deliberations with Statutory Auditors to ascertain their views on the financial statements including the Financial Reporting System and Compliance to Accounting Policies and Procedures, the Audit Committee was satisfied with the adequacy and effectiveness of the Internal Controls and Systems followed by the company.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial statements have been prepared in accordance with the requirement of the Companies Act, 2013 and applicable Accounting Standards issued by the Institute of Chartered Accountant of India.

Rs. in Lakh)

Sl. No.	Particulars	Year ended	Year ended	Year ended	Year ended
		March 31, 2021	March 31,2020	March 31, 2021	March 31,2020
		Standalone		Consolidated
1.	Revenue from operations	16,984.43	18,677.39	16,984.43	18,677.39
	Other income	403.82	457.61	403.95	457.86
2.	Total income	17388.25	19,135.00	17,388.38	19,135.25
3.	Expenses
	Cost of materials consumed	10,053.36	12,637.23	10,053.36	12637.23
	Purchases of stock in trade	32.47	16.05	32.47	16.05
	Changes in inventories of fnished goods, stock-in-trade and work in progress	673.50	(546.14)	673.50	(546.14)
	Employee benefts expense	2,095.25	2,059.81	2,095.25	2,059.81
	Depreciation and amortisation expense	328.55	374.32	328.55	374.32
	Finance costs	26.58	25.00	26.58	25.00
	Other expenses	2,501.93	2,897.08	2,505.03	2,899.48
4.	Total expenses	15,711.64	17,463.35	15,714.74	17,465.75
5.	Proft before Share of Proft/(loss) of Joint Venture and tax	1,676.61	1671.65	1,673.64	1,669.50
6.	Share of loss of Joint Venture	-	-	51.49	10.40
7.	Proft before exceptional items	1,676.61	1671.65	1,622.15	1,659.10
8.	Exceptional Items	1,324.02	-	1,324.02	-

37

Sl. No.	Particulars	Year ended	Year ended	Year ended	Year ended
		March 31, 2021	March 31,2020	March 31, 2021	March 31,2020
		Standalone		Consolidated
9.	Proft/(loss) before tax(V-VI)	352.59	1,671.65	298.13	1,659.10
10.	Tax expense
	Current tax	103.04	437.14	103.04	437.14
	Deferred tax	(24.45)	(98.55)	(24.45)	(98.55)
	Income tax adjustment for earlier years	(2.06)	4.96	(2.06)	4.96
11.	Total tax expense	76.53	343.55	76.53	343.55
12.	Proft after tax from continuing operations	276.06	1328.10	221.60	1,315.55
13.	Proft / (loss) after tax from discontinued operations	-	-	59.92	56.50
14.	Proft/(loss) for theyear	276.06	1328.10	281.52	1,372.05
15.	Other Comprehensive Income (net of tax)	1,028.99	(468.42)	1,028.99	(468.42)
16.	Total Comprehensive Income	1,305.05	859.68	1,310.51	903.63

HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS

During the year the Company had cordial relations with workers, staff and officers. The shop floor management is done through personal touch, using various motivational tools and meeting their training needs. The company has taken steps for safety of employees and implemented regular safety audit, imparted machine safety training, wearing protective equipment etc. The Company established a Covid ward at its Plant to ensure safety of workers in this pandemic.

The Company believes in empowering its employees through greater knowledge, team spirit and developing greater sense of responsibility. On the job training as well as classroom training by way of seminars, conventions, functional and managerial programs for capability development and building technical expertise were attended by respective functions such as Sales & Marketing, Finance & Accounts, Procurement, Supply Chain, HR etc. There were 327 regular employees as at March 31, 2021.

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

The significant changes in the key financial ratio of the Company, which are more than 25% as compared to the previous year are as given below-

Sl.No.	Particulars	FY 2020-21	FY 2019-20	**Change (%) **	Explanations
(i)	Interest Coverage Ratio	64.08	67.87	-5.58%	Not applicable
(ii)	OperatingProft Margin(%)	10.03	9.08	10.39%	Not applicable
(iii)	Net Proft Margin(%)	1.63	7.11	-77.14%	Due to Exceptional Item amounting to Rs. 1,324.02 Lakhs (Litigation settlement).
(iv)	Return on Net Worth	1.40	7.12	-80.34%

For and on behalf of the Board of Directors Indag Rubber Limited

Nand Khemka

Place : New Delhi Date : May 08, 2021

Chairman & Managing Director DIN: 00211084

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REPORT ON CORPORATE GOVERNANCE

(Pursuant to Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

In accordance with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and some of the best practices followed internationally on Corporate Governance, the report containing the details of corporate governance systems and processes at Indag Rubber Limited is as under:

I. Company’s Philosophy on Code of Governance

The Company recognizes the importance of good Corporate Governance, which is a tool for building a strong and everlasting beneficial relationship with the customers, suppliers, bankers and more importantly with the investors.

The Company believes that its key decisions must serve the underlying goals of enhancing shareholders’ value over a sustained period of time, and achieving the definite and measurable performance targets.

II. Board of Directors

(a) Composition of the Board

As on March 31, 2021, the Board comprised of eight directors, which include two executive directors and six non-executive directors. The Board is primarily responsible for the overall management of the Company’s business.

The composition of the Board of Directors as on March 31, 2021 with their attendance at the Board Meetings held during the year 2020-2021 and at the last Annual General Meeting is given below:

DIN	Name of the Directors	Number of Board Meetings attended during F.Y. (20- 21)	Attendance at the last AGM held on 25.09.2020	Relationship with other Directors	Number of shares and convertible instruments held by Non-Executive Directors
00211084	Mr. Nand Khemka (Chairman cum Managing Director)	6/6	Yes	Relative of Mr. Shiv Vikram Khemka and Mr. Uday Harsh Khemka	-
00048800	Mr. Prithvi RajKhanna	6/6	Yes	Nil	5,000
01879913	Mr. Ranjitha Parameswar*	6/6	Yes	Nil	Nil
00167802	Ms. Bindu Saxena	6/6	Yes	Nil	Nil
00507695	Mr. Harjiv Singh	6/6	Yes	Nil	Nil
00323609	Mr. Uday Harsh Khemka	6/6	No	Relative of Mr. Nand Khemka and Mr. Shiv Vikram Khemka	12,50,750 (Joint Holding with Mrs.Nitya Khemka)
01214671	Mr. Shiv Vikram Khemka	6/6	Yes	Relative of Mr. Nand Khemka and Mr. Uday Harsh Khemka	12,50,750 (joint holding with Mrs. Urvashi Khemka)
00745117	Mr. Kewal Krishan Kapur (Whole-time Director)	6/6	Yes	Nil	-

• Completed his second consecutive term as an Independent Director of the Company on March 31, 2021.

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Present Directorship in other Companies and Committee Position (Including Indag Rubber Limited)-

Sl. No.	Name of Director	Number of Directorship held in Public Companies (including Indag Rubber Ltd.)	Directorship held in Public Companies and Committee Position(s)	Directorship held in Public Companies and Committee Position(s)	Directorship held in Public Companies and Committee Position(s)	Directorship held in Public Companies and Committee Position(s)
			Name of the company	Listed or Non- Listed	Committee(s)	Position
1.	Mr. Nand Khemka	2	Indag Rubber Limited Executive (Interested)	Listed	Audit Committee Stakeholder Relationship Committee	Member Member
			Unipatch Rubber Limited Non-Executive (Interested)	Non-Listed	Nil	Nil
2.	Mr. Prithvi Raj Khanna	2	Indag Rubber Limited Non-Executive (Independent)	Listed	Audit Committee	Member (till 31.03.2021)
			DCM Shriram Industries Limited Non-Executive (Independent)	Listed	Audit Committee Stakeholder Relationship Committee	Chairman Chairman
3.	Mr. Ranjitha Parameswar	1	Indag Rubber Limited Non-Executive (Independent)	Listed	Audit Committee Stakeholder Relationship Committee	Chairman (till 31.03.2021) Chairman (till 31.03.2021)
4.	Ms. Bindu Saxena	3	Inox Wind Limited Non-Executive (Independent)	Listed	Audit Committee	Member
			Indag Rubber Limited Non-Executive (Independent)	Listed	Nil	Nil
			Eros International Media Limited (Independent)	Unlisted	Nil	Nil
5.	Mr. Harjiv Singh	1	Indag Rubber Limited Non-Executive (Independent)	Listed	Nil	Nil
6.	Mr. Uday Harsh Khemka	1	Indag Rubber Limited Non-Executive (Interested)	Listed	Nil	Nil
7.	Mr. Shiv Vikram Khemka	1	Indag Rubber Limited Non-Executive (Interested)	Listed	Nil	Nil
8.	Mr. Kewal Krishan Kapur	1	Indag Rubber Limited Executive (Interested)	Listed	Stakeholder Relationship Committee	Member

• It does not include Alternate Directorship, Directorship in foreign companies, companies registered under Section 8 of the Companies Act, 2013 and private limited companies.

• ** Membership / Chairmanship of only Audit Committee and Stakeholder Relationship Committee in all public limited companies (including Indag Rubber Limited) have been considered.

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(b) Board Meetings

Six meetings of the Board of Directors were held during the year, viz. on June 26, 2020, August 27, 2020, September 15, 2020, November 10, 2020, February 10, 2021 and on February 17, 2021.

(c) Separate Meeting of Independent Directors

As stipulated by the Code of Independent Directors under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate meeting of the Independent Directors of the Company was held on February 10, 2021. All Independent Directors were present in the meeting.

(d) Familiarization Programmes imparted to Independent Directors

Independent Directors of the Board are familiarized through updates on nature of industry in which the company operates, company’s performance and future outlook related to business, operations, expansion, strategy, budgets, financial statements, besides relevant regulatory updates. The web link of the Familiarization Programmes imparted to Independent Directors is https://indagrubber.com/uploads/ document/Familiarisation-Programme-2020-21.pdf

(e) Evaluation of the Board’s Performance

Board has a formal mechanism for evaluating its performance and as well as that of its Committees and individual directors, including the Chairman of the Board based on the criteria laid down by Nomination and Remuneration Committee.

The evaluation process for the financial year 2020-2021 has been completed.

A chart or a matrix setting out the skills/expertise/competence of the board of directors

**No **	Name of the Directors	Competencies	Competencies	Competencies	Competencies	Competencies	Competencies
		Financial Literacy	Industry experience & knowledge	Leadership & Strategic Planning	Legal & Governance	Technology & Innovation	Risk Management
1	Mr. Nand Khemka	√	√	√		√	√
2	Mr. P R Khanna	√		√	√		√
3	Mr. R Parameswar	√		√	√		√
4.	Ms. Bindu Saxena	√		√	√		√
5	Mr. Harjiv Singh	√		√			√
6	Mr. Shiv Khemka	√	√	√		√	√
7	Mr. UdayKhemka	√	√	√		√	√
8	Mr. K K Kapur	√	√	√	√	√	√

(f) All the Independent Director fulfills the conditions specified in the SEBI (LODR) Regulations and are independent of the management.

(g) During the year, no Independent Director has resigned before the expiry of his tenure.

Mr. Ranjitha Parameswar (Independent Director) of the Company completed his second consecutive term as Independent Director and vacated the office on March 31, 2021.

III. Audit Committee

(a) Brief description of terms of reference

Audit Committee assists the Board in its responsibility of overseeing the quality and integrity of the accounting, auditing and reporting practices of the Company and its compliance with the legal and regulatory requirements. The Committee’s purpose is to oversee the accounting and financial process of the Company, the audits of the Company’s financial statements, the appointment, independence, performance and remuneration of the statutory auditors including the cost auditors, the performance of internal auditors and the Company’s risk management policies. The terms of reference of Audit Committee cover the areas mentioned under Part C of Schedule II of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as well as Section 177 of the Companies Act, 2013.

Audit Committee invites CEO & Whole Time Director, Chief Financial Officer, representative of Statutory Auditors, Internal Auditors and Cost Auditors for meeting(s), to provide inputs on issues relating to accounts,

41

taxation, internal audit finding, internal controls, risk managements etc.

(b) Composition, meeting and attendance

Audit Committee comprised of three directors as on March 31, 2021 out of which two were non-executive (Independent) directors and one was executive director having financial management expertise. Chairman of the committee, Mr. Ranjitha Parameswar, (Independent Director) was present at the last Annual General Meeting. Mr. Ranjitha Parameswar ceased to be the Chairman of the Committee with effect from March 31, 2021, Mr. P.R Khanna was designated as Chairman of the Committee while Mr. Harjiv Singh, Independent Director, was appointed as the member of the Committee with effect from April 01, 2021.

Company Secretary acts as the secretary to the Audit Committee.

Six meetings of the Audit Committee were held during the year viz. on June 26, 2020, August 27, 2020, September 15, 2020, November 10, 2020, February 10, 2021 and on February 17, 2021 respectively. The details of the members, chairperson and their attendance at the meetings are as follows:

Name of the Director	Position	Category	No. of meetings attended
Mr. RanjithaParameswar	Chairman	Non-ExecutiveIndependentDirector	6 of6
Mr. P. R. Khanna	Member	Non-ExecutiveIndependentDirector	6 of6
Mr. NandKhemka	Member	ExecutivePromoter Director	6 of6

IV. Nomination and Remuneration Committee

(a) Brief description of terms of reference

The Nomination and Remuneration Committee assists the Board in overseeing the method, criteria and quantum of compensation for directors and senior management based on their performance and defined assessment criteria. The Committee formulates the criteria for evaluation of the performance of Independent Directors and the Board of Directors; identifying the persons who are qualified to become directors, and who may be appointed in senior management and recommend to the Board their appointment and removal. The terms of the reference of Nomination and Remuneration Committee covers the areas mentioned under Part D of Schedule II of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as well as section 178 of the Companies Act, 2013.

(b) Composition, meeting and attendance

Three meetings of the Nomination and Remuneration Committee were held during the year viz. on June 26, 2020, February 10, 2021 and February 17, 2021. The composition of the Nomination and Remuneration Committee, names of members & chairperson and details of their attendance at the meetings are as follows:

follows:
Name of the Director	Position	Category	No. of meetings attended
Mr. P. R. Khanna	Chairman	Non-Executive Independent Director	3 of 3
Mr. Ranjitha Parameswar	Member	Non-Executive Independent Director	3 of 3
Ms. Bindu Saxena	Member	Non-ExecutiveIndependentDirector	3 of3
Mr. NandKhemka	Member	ExecutivePromoter Director	3 of3

Mr.Prithvi Raj Khanna, Chairman of the Nomination and Remuneration Committee was present at the last Annual General Meeting.

Mr. Ranjitha Parameswar ceased to be the Member of the Committee with effect from March 31, 2021 and Mr. Harjiv Singh, Independent Director, was appointed as the member of the Committee with effect from April 01, 2021.

(c) Performance evaluation criteria for Independent Directors-

Broad parameters for evaluating the performance of Independent Directors amongst other include their qualification, experience, participation at the Board/ Committee meetings, understanding and discharging their roles and responsibilities, ability to function as a team, exercise of independent judgment, prudence, commitment and ability to contribute and monitor corporate governance practices, adherence to the code of conduct, maintaining independence and integrity.

V. Remuneration of Directors

• (a) There was no pecuniary relationship or transaction between the non-executive directors and the company during the financial year 2020-2021.

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(b) Criteria of making payments to Non-Executive Directors

Sitting fees and profit related commission is paid to non-executive directors based on their contribution and participation in the meeting of the Board or Committees, thereof.

Payment criteria of non-executive directors are given in the Nomination and Remuneration Policy. The web link for the same is https://indagrubber.com/uploads/document/NRC-policy.pdf

• (c) Details of remuneration to directors: Company has paid following remuneration to directors during the year under review, which is in accordance with the section 178(4) of the Companies Act, 2013.

(i) Non-Executive Directors

The non-executive directors are paid sitting fee and profit related commission. Profit related commission of a sum not exceeding one percent of the net profits of the Company calculated in accordance with the provisions of section 197 and 198 read with Schedule V of the Companies Act, 2013, is divided amongst the non-executive directors as recommended by the Nomination and Remuneration Committee and determined by the Board, broadly on the basis of contribution made at the Board meeting(s) as well as various Committee meeting(s) and the time spent on operational matters.

Non-executive directors are paid sitting fee of Rs. 1,00,000/- for attending the Board meetings, Rs. 50,000 for Audit Committee Meetings and Independent Directors meeting and Rs. 20,000/- per meeting for attending other Committee meetings. No sitting fee is paid for attending the meetings of CSR Committee, as decided by the Board.

(ii) Executive Director

The appointment and payment of remuneration of the executive directors is governed by resolutions passed by the shareholders of the company. A separate service contract is not entered into by the company with executive directors.

(iii) Elements of remuneration paid to the executive and non-executive directors during the financial year 2020-2021 are given below-

Name of Director	Salary (in Rs.)	Perquisite (in Rs.)	Sitting fee (in Rs.)	Bonus/ Proft related commission for the year 2020-2021 (in Rs.)	Total (in Rs.)
Category A- Executive Directors
Mr. Nand Khemka Chairman cum ManagingDirector	78,75,000	-	-	-	78,75,000
Mr. K.K. Kpaur CEO & Whole Time Director	77,99,229	97,698	-	-	78,96,927
Category B- Non Executive Directors
Mr. Prithvi Raj Khanna Independent Director	-	-	10,10,000	6,15,000	16,25,000
Mr. Ranjitha Parameswar Independent Director	-	-	10,90,000	6,15,000	17,05,000
Ms. Bindu Saxena Independent Director	-	-	7,10,000	3,10,000	10,20,000
Mr. Harjiv Singh Independent Director	-	-	6,50,000	2,15,000	8,65,000
Mr. Shiv Khemka	-	-	Nil	Nil	Nil
Mr. UdayKhemka	-	-	Nil	Nil	Nil

(iv) The office of Whole Time Director can be terminated with three months’ notice from either side.

• (v) No severance fee is payable to any director.

(vii) Stock option details - Company does not have any stock option scheme.

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(viii) There are no other performance linked incentives paid by the Company.

VI. Stakeholders’ Relationship Committee

• (i) Stakeholders’ Relationship Committee looks into shareholders’ and investors’ grievances. Mr. Ranjitha Parameswar, Non-executive Independent Director is the Chairman of the Committee.

• Mr. Ranjitha Parameswar ceased to be the Chairman of the Committee with effect from March 31, 2021 and Mr. Harjiv Singh, Independent Director, was appointed as the Chairman of the Committee with effect from April 01, 2021.

The Board has designated Ms. Manali D. Bijlani, Company Secretary as the Compliance Officer.

(ii) Composition and attendance-

Sl. No.	Name of the Director	Category	No. of meeting attended
1	Mr. R Parameswar(Chairman)	Non-ExecutiveIndependentDirector	4of 4
2	Mr. NandKhemka	Executive (Interested)	4of 4
3	Mr. K.K.Kapur	Executive (Interested)	4of 4

• (iv) No. of investors’ complaints received by the RTA/ Company during the year: Nil

• No. of complaints not solved to the satisfaction of shareholders during the year: Nil

• No. of complaints pending as at March 31, 2021: Nil

VII. General Body Meetings

(a) The details of the last three Annual General Meetings held are as under:

**AGM **	Day	Date	Time	Venue	Whether Special Resolutionpassed
39th	Tuesday	August 14, 2018	1 0 : 0 0 A.M.	Sai International Centre, Pragati Vihar, Lodhi Road, New Delhi-110003	1. Appointment of Mr.Harjiv Singh (DIN-00507695) as an Independent Director of the Company for second term 2. Re-classifcation of certain Promoters and Promoter Group category shareholders to Public categoryshareholders.
40th	Tuesday	July 23, 2019	1 1 : 0 0 A.M.	Sai International Centre, Pragati Vihar, Lodhi Road,New Delhi-110003	Reappointment of Mr. K.K. Kapur as a whole time director for a period of two years with efect from June 1, 2019.
41st	Friday	September 25, 2020	15:30 P.M.	11, Community Centre, Saket, New Delhi 110017. (Held through Video Conferencing)	No

(b) Details on Postal Ballot

**Sl.No. **	Particular	Status
1.	Whether any special resolution passed last year through postal ballot – details of voting pattern	No
2.	Person who conducted the postal ballot exercise	NA
3.	Whether any special resolution is proposed to be conducted through postal ballot	None of the businesses proposed to be transacted at the ensuing AGM requires passing of a special resolution through postal ballot. None of the business is approved by the Board which requires passing of a special resolution through postal ballot.
4.	Procedure for postal ballot	As given in Section 110 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

44

VIII. Means of Communication

**Sl. No. **	Particular	Status
a.	Quarterly results	Quarterly / Half-yearly/ Annual Financial Results are e-fled with BSE.
b.	Newspaper wherein results normally published	Business Standard or Financial Express or Jansatta
c.	Websitewhere displayed	Placed oncompany’swebsite www.indagrubber.com
d.	Whether website displays ofcial newsrelease	Financial information, shareholding pattern, codes & polices etc. are updated on website www.indagrubber.com
e.	Presentation made to institutional investors oranalyst	Uploaded on company website and also fled with BSE Limited
General Shareholders’ Information (i) Annual General Meeting to be held: Day : Thursday Date : September 30, 2021 Time : 03:30 P.M. Venue : Registered Ofce of the Company situated at 11 Community Centre, Saket, New Delhi - 110017 (ii) Financial Year : April 01, 2020 to March 31, 2021 (iii) Dividend Payment Date : Interim Dividend- December 05, 2020 : Final Dividend-within prescribed time period

X. General Shareholders’ Information

(iv) Stock Exchanges on which the Company’s Shares are listed BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001 The Listing Fees as applicable have been paid within prescribed time period.

(v) Stock Code

Stock Code
ISIN under DepositorySystem	INE802D01023
BSE Limited	509162

(vii) Market Price Data: High/Low during each month during the financial year 2020-2021

The details of Monthly High and Low price(s) on BSE Limited for the financial year 2020-2021 are as under:

under:
Month	Monthly High	Monthly Low	S&P BSE SENSEX Performance (Monthly High)	S&P BSE SENSEX Performance (Monthly Low)
April,2020	60.80	45.90	33,887.25	27,500.79
May,2020	63.00	49.00	32,845.48	29,968.45
June,2020	78.75	50.00	35,706.55	32,348.10
July,2020	71.80	61.70	38,617.03	34,927.20
August,2020	91.50	60.00	40,010.17	36,911.23
September,2020	89.00	64.00	39,359.51	36,495.98
October,2020	79.00	64.20	41,048.05	38,410.20
November,2020	91.00	66.35	44,825.37	39,334.92
December, 2020	100.00	73.25	47,896.97	44,118.10
January,2021	113.90	85.10	50,184.01	46,160.46
February,2021	106.90	87.55	52,516.76	46,433.65
March,2021	105.15	99.05	51,821.84	48,236.35

45

==> picture [346 x 203] intentionally omitted <==

Monthly High and Low of Share Price movement of the Company

• (viii) In case the securities are suspended from trading, reason thereof- No order was passed for company’s securities being suspended from trading.

• (ix) Registrar & Share Transfer Agent:

Skyline Financial Services Private Limited, D-153/A, 1[st] Floor, Okhla Industrial Area, Phase-1, New Delhi-110020 Phone No.: 011-26812682-83 E-mail id- grievances@skylinerta.com Website- www.skylinerta.com

(x) Share Transfer System:

In order to expedite the process of share transfers, the Board has delegated the power to approve share transfers to senior executives, who attend to share transfer formalities weekly. The Company has appointed Skyline Financial Services Private Limited as the Registrar and Share Transfer Agent for physical transfer of securities as well as dematerialization/ rematerialization of securities.

• (xi) Distribution of Shareholding as on March 31, 2021:

No. of equity shares held (Nominal Value)	Number of shareholder	% to total numbers	Shareholding amount (Rs.)	% to total amount
Up To 5,000	5518	96.17	3102284.00	5.91
5,001 To 10,000	88	1.53	699700.00	1.33
10,001 To 20,000	53	0.92	735340.00	1.40
20,001 To 30,000	23	0.40	557618.00	1.06
30,001 To 40,000	11	0.19	391142.00	0.75
40,001 To 50,000	4	0.07	188584.00	0.36
50,001 To 1,00,000	17	0.30	1208062.00	2.30
1,00,000 and Above	24	0.42	45617270.00	86.89
Total	5738	100	52500000	100

46

(xiii) Categories of Shareholding as on March 31, 2021:

Categories of Shareholding as on March 31, 2021:
Category	No. of Shares held	% of Shareholding
Promoter and Promoter Group
Individuals	11280010	42.97%
Bodies Corporate-Indian	7459740	28.42%
Bodies Corporate- Foreign	513000	1.95%
Public
Individuals shareholders	4266873	16.25%
Bodies Corporate	788970	3.01%
Non Resident Indians	211606	0.81%
Resident Indian HUF	194778	0.74%
Trust	65813	0.25%
Firm	279202	1.06%
ClearingMembers/ House	98313	0.37%
Foreign Portfolio Investors	651524	2.48%
Alternate Investment Funds	151435	0.58%
Investor Education and Protection Fund Authority Ministryof Corporate Afairs	261736	1.00%
Unclaimed Suspense Account	27000	0.10%
Total	26250000	100%

(xiv) Dematerialization of shares and liquidity

Company has established connectivity with both the depositories i.e. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) to handle dematerialization of shares.

As on March 31, 2021, a total of 26005230 equity shares which form 99.07% of the share capital stand dematerialized. The equity shares are frequently traded on BSE Limited and hence provide liquidity to the investors.

(xv) Outstanding GDRs/ ADRs/ Warrants/ Convertible instruments

The Company has not issued Global Depository Receipts or American Depository Receipt or Warrants or any Convertible instruments.

(xvi) Commodity Price Risk/ Foreign Exchange Risk and Hedging

The Company did not engage in hedging activities.

(xvii) Plant Location :

(a) Village Jhiriwala, Hadbast No.-73, Nalagarh, District Solan, Himachal Pradesh - 174101

• (b) Plot No.-86, Industrial Area, Bhiwadi, Distt.-Alwar, Rajasthan – 301019 – (DORMANT)

(xviii) Address for Correspondence:

(a)	For Transfer of physical shares, request for	:	Skyline Financial Services Private Limited
	dematerialization of shares, change of mandates/		D-153/A, 1stFloor, Okhla Industrial
	address or any other query		Area, Phase-1, New Delhi-110020.
			Phone No.: 011-26812682-83
			E-mail id- grievances@skylinerta.com
			Website- www.skylinerta.com
(b)	For any investor grievance	:	The Company Secretary
			Indag Rubber Limited
			11, Community Centre, Saket,
			New Delhi – 110 017.
			Phone no.: 011-26963172-73
			info@indagrubber.com

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(xx) Credit Risk Rating

• During the financial year 2020-2021, the Company has obtained credit rating from ICRA, which has reaffirmed long term rating of “[ICRA] A (Stable)” on Rs. 4 crores (long term fund based) and also reaffirmed a shortterm rating of “[ICRA] A1” on Rs. 39.00 crores [(including Rs. 0.50 crore unallocated limits) non fund based facilities].

X. Other Disclosures

• a. During the financial year ended March 31, 2021 there were no materially significant related party transactions that may have potential conflict with the interests of the Company at large.

• b. No penalties were imposed, and no strictures were passed by Stock Exchange or SEBI or any statutory authority on any capital market related matters during the last three years.

• c. The Company has announced Whistle Blower policy. All the personnel of the company have the access to the Audit Committee.

• d. The Company has complied with the mandatory requirements of the SEBI (LODR) Regulations, 2015 and has adopted various non-mandatory requirements as well, as discussed under relevant headings.

• e. The Company has framed a Material Subsidiary Policy and the same is placed on the Company’s website and the web link for the same is https://indagrubber.com/uploads/document/Policy-for-determining-MaterialSubsidiary.pdf

• f. The Company has framed Related Party Transaction Policy and is placed on the Company’s website and the web link for the same is https://indagrubber.com/uploads/document/Policy-on-Materiality-of-Related-PartyTransaction.pdf

• g. The Company did not engage in commodity hedging activities.

• h. The Company has not raised funds through preferential allotment or qualified institution placements as specified under Regulation 32(7A).

• i. A certificate from RMG & Associates, Practicing Company Secretaries is enclosed as Annexure-A certifying that that none of the Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as directors of companies by the Board/Ministry of Corporate Affairs or any such statutory authority.

• j. The Board had accepted recommendations, if any, of the Committee(s).

• k. During the year, a total fees was paid to the Statutory Auditor by the Company and its Subsidiaries are given below-

below-
Particulars	Continuing operations (Rs. in lakhs)	Discontinued operations (Rs. in lakhs)
As Auditor:
Audit fees	21.05	2.06
Tax Audit fees	2.72	-
Certifcation	0.5	-
Reimbursement of expenses GST	0.57 6.00	.01
Total	30.84	2.07

l. Disclosure in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

During the financial year 2020-2021, the details of the complaint were as under-

1.	Number of complaints fled duringthe fnancialyear	Nil
2.	Number of complaints disposed of duringthe fnancialyear	Not Applicable
3.	Number of complaintspendingas on end of the fnancialyear	Nil

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XII. There has been no instance of non-compliance of any requirement of Corporate Governance Report.

XIII. ADOPTION OF DISCRETIONARY REQUIREMENTS

A. The Board

The company has an executive chairperson.

B. Shareholder Rights

Half yearly financial results are forwarded to the Stock Exchanges and uploaded on the website of the Company like quarterly results.

C. Modified opinion(s) in Audit Report

There was no audit qualification in the Auditors’ Report on the Company’s financial statements.

D. Reporting of Internal Auditor

The Internal Auditor of the Company is a permanent invitee to the Audit Committee Meeting and regularly attends the Meeting for reporting their findings of the internal audit to the Audit Committee.

• XIV. The company has fully complied with the applicable requirement specified in regulation 17 to 27 and clauses (b) to (i) of sub-regulation (2) of regulation 46 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Annual Compliance with the Code of Conduct for the Financial Year 2020-2021.

Pursuant to the Schedule V (Part D) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, I hereby confirm that the Company has received affirmations on compliance with the Code of Conduct for the financial year ended March 31, 2021 from all the Board Members and Senior Management Personnel.

For and on behalf of the Board of Directors Indag Rubber Limited

Date: May 08, 2021 Place: New Delhi

K. K. Kapur CEO & Whole Time Director DIN: 00745117

49

ANNEXURE- A

CERTIFICATE

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

To, The Members

Indag Rubber Limited (CIN: L74899DL1978PLC009038) 11, Community Centre, Saket, New Delhi – 110017.

We have examined the relevant registers, records, forms, returns and disclosures received from the directors of Indag Rubber Limited (CIN: L74899DL1978PLC009038) having its Registered Office at 11, Community Centre, Saket, New Delhi - 110017 (hereinafter referred to as “ the Company ”) produced before us by the Company for the purpose of issuing this certificate, in pursuance of the provisions of Regulation 34(3) read with Schedule V Para C Sub clause 10(i) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time (hereinafter referred to as “Listing Regulations”).

In our opinion and to the best of our information and according to the verifications (including Director Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary by us and explanations furnished to us by the Company and its officers, we hereby certify that none of the Directors on the Board of Directors of the Company, as stated below, for the Financial year ended March 31, 2021 have been debarred or disqualified from being appointed or continuing as directors of companies by the Securities and Exchange Board of India (SEBI), Ministry of Corporate Affairs (MCA) or any such other statutory authority.

S. No.	DIN	Full Name	Designation	Date of Appointment
1.	00211084	Mr. Nand Khemka	Managing Director	02-06-1978
2.	01879913	Mr. Ranjitha Parameswar*	Director	21-09-1996
3.	00048800	Mr. Prithvi Raj Khanna	Director	20-01-2000
4.	00745117	Mr. Kewal Krishan Kapur	Wholetime Director	09-04-2001
5.	00167802	Ms. Bindu Saxena	Director	08-10-2014
6.	00323609	Mr. Uday Harsh Khemka	Director	08-10-2014
7.	01214671	Mr. Shiv Vikram Khemka	Director	14-08-2015
8.	00507695	Mr. Harjiv Singh	Director	24-05-2018

*Completed his second consecutive term as an Independent Director of the Company on March 31, 2021.

Ensuring the eligibility for the appointment / continuity of a Director on the Board of Directors of the Company 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 RMG & Associates Company Secretaries Firm Registration No. P2001DE16100 Peer Review No. : 734 / 2020

Place: New Delhi CS Manish Gupta Date: 08-05-2021 Partner UDIN: F005123C000262798 FCS: 5123; C.P. No.: 4095

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COMPLIANCE CERTIFICATE

To, The Members, Indag Rubber Limited (CIN: L74899DL1978PLC009038) 11, Community Centre, Saket New Delhi - 110017

We have examined the compliance of conditions of Corporate Governance by Indag Rubber Limited (hereinafter referred to as ‘the Company’), having its Registered Office at 11, Community Centre, Saket, New Delhi-110017, for the year ended on March 31, 2021, as stipulated in the relevant provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time (“Listing Regulations”).

The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to a review of procedures and implementation thereof, adopted by the Company for ensuring compliance with 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 to the best of our information and according to the explanations given to us, we certify that the Company has compiled with the conditions of Corporate Governance as stipulated in the above-mentioned Listing Regulations.

We further state that 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 RMG & Associates Company Secretaries Firm Registration No. P2001DE16100 Peer Review No. : 734 / 2020

Date : May 08, 2021 Place : New Delhi UDIN : F005123C000262875

CS Manish Gupta Partner FCS: 5123; C.P. No.: 4095

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706, AKASH DEEP, 26-A, BARAKHAMBA ROAD NEW DELHI - 110 001

KHANNA & ANNADHANAM CHARTERED ACCOUNTANTS

INDEPENDENT AUDITOR’S REPORT

To The Members of Indag Rubber Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Indag Rubber Limited (“the Company”), which comprise the Balance Sheet as at 31[st] March 2021, the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and notes to the standalone 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 31[st] March 2021 and the profit, changes in equity and its cash flows for the year ended on that date.

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 Standalone 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 (ICAI) together with the ethical requirements that are relevant to our audit of the standalone 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 most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

standalone fnancial statements of the current period. These standalone fnancial statements as a whole, and in forming opinion on these matters.	matters were addressed in the context of our audit of the our opinion thereon, and we do not provide a separate
The key audit matters	How the matter was addressed in our audit
Investments
The company has long term investments in a subsidiary and a Joint Venture amounting to Rs. 1645.35 lakhs. These investments are carried at cost less provision for impairment loss if any. These long-term investments are tested for impairment periodically as changes in business environment, including due to the efect of second wave of Covid -19, could have signifcant impact on these investments which could result in impairment, requiring adjustment to their carrying amount. The calculation of impairment charge requires signifcant judgments of management with respect to determine recoverable amount of these investments. The company has long term investment carried at fair value of Rs. 1617.10 lakhs (Cost Rs. 1202 lakhs) in SRL 142 Holdings Ltd., a related party, by way of fully paid up compulsorily convertible preference shares. SRL has interest in oil production and exploration Company in Nigeria.	Compared the carrying amount of investments with audited fnancial statements of investee companies to verify whether their net assets, being an approximation of their minimum recoverable amount, were in excess of their carrying amount;- Obtained and reviewed recoverable amount as determined by the management for each instrument; and - Verifed the method of determining recoverable amount and key assumptions used therein through historical information, approved budget, growth rate used to support revenue, discount rate and any other relevant information, as applicable.

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The key audit matters	How the matter was addressed in our audit
The oil industry is exposed signifcantly to macroeconomic factors such as commodity prices, currency fuctuations, interest rate risk political developments etc. The assessment of commercial viability and technical feasibility of exploration oil and gas is complex and includes a number of signifcant variables.	In the case of fair valuation of investments held in SRL 142 Holdings Limited, we tested the valuation prepared by the management with inputs from SRL, which included reference to estimated oil resources, market price of crude oil and gas prevailing in the international market, the rupee US Dollar exchange rate, assumptions as to future production of oil and gas, capital expenditure to be incurred, contracts entered into by the Nigerian Oil Company, the Country risk and regulatory frame work prevailing in Nigeria.
Inventories
The Company carries inventory of fnished goods, raw materials, work in progress valued at Rs. 3599.45 lakhs as at March 31, 2021. Such inventory is held at Nalagarh Plant and warehouses/ depots in various cities in India as at the reporting date. Considering the number of locations and the level of inventory held at factory and warehouses, as well as the physical verifcation of inventory at these locations, the risk of existence of such inventory and the identifcation of non-moving, obsolete / damaged inventory and overall valuations is a signifcant area of audit. The inventory valuation also requires management estimates towards write down of inventory items to its net realizable value (wherever applicable) and allowance for slow moving or non-moving inventory. Considering the relative signifcance of the Inventory to the Standalone fnancial statements, we have considered the inventory as key audit matter.	● Our audit response in respect of testing the existence and valuation of inventory and allowance for slow / non-moving inventory and obsolescence consisted of following procedures: ● Procedures to test the existence of inventory relevant internal controls, including physical verifcation process that is performed annually by management at various locations and the testing of automated recording of sales and purchase transactions in the IT system. ● We observed the physical verifcation of inventory conducted by the management at Nalagarh Plant. Our procedures in this regard included: - Observing compliance of stock count instructions by management personnel; observing steps taken by management to ascertain the existence inventory on the date of the count (including identifcation of non-moving, obsolete / damaged inventory); ● We performed cut of testing for purchase and sales transactions made near the reporting date to assess whether transactions are recorded in the correct period by testing shipping records, sales / purchase invoices, for sample transactions.
Trade Receivables
The Company trade receivables at year end amount to Rs. 2945.97 lakhs. Judgment is required to evaluate whether any allowance should be made to refect the risk of non-recoverability towards expected audit loss Expected Credit Loss (ECL). The Company recognizes loss allowance for trade receivables. Assessment of the recoverability of trade receivables is inherently subjective and requires signifcant management judgment regarding fnancial position of entities from whom these balances are recoverable, terms of underlying arrangements, overdue balances, market conditions etc.	In view of the signifcance of the matter, we applied the following key audit procedures: ● Obtaining an understanding of and assessing the process, implementation and operating efectiveness of the Company’s key internal controls over the process of estimating the loss allowance for trade receivables and other fnancial assets including adherence to the requirements of the relevant accounting standards ● Assessing the Company’s methodology for provisioning towards trade receivables. ● Understanding the key inputs used in the provisioning by the Company such as repayment history, terms of underlying arrangements, overdue balances, market conditions.

53

The key audit matters	How the matter was addressed in our audit
	● Obtaining an understanding and assessing the reasonableness of the provisioning process, as well as key judgments and assumptions used by the management for circulating expected credit loss relating to trade receivables. ● Assessing the disclosures made as per the relevant accounting standards.

Information Other than the Standalone Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board’s Report and Corporate Governance, but does not include the standalone financial statements and our auditor’s report thereon.

Our opinion on the standalone 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 standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone 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.

Management’s Responsibilities for the Standalone 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 (including other comprehensive income), 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 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Board of Directors 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 the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone 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 standalone 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 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

54

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 financial controls 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 system 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 standalone 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 standalone financial statements, including the disclosures, and whether the standalone financial statements represent the 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 standalone 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

1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government in terms of Section 143(11) of the Act, we give in “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, we report that:

3. 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;

4. 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;

5. c) the Standalone Balance Sheet, the Standalone Statement of Profit and Loss, Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flow dealt with by this Report are in agreement with the books of account;

6. d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.

7. e) on the basis of the written representations received from the directors as on 31[st] March 2021 taken on record by the Board of Directors, none of the directors is disqualified as on 31[st] March 2021 from being appointed as a director in terms of Section 164(2) of the Act;

8. 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 B”;

55

• g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section 197(16) of the Act, as amended:

• In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

• 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 Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements. Refer Note 36 to the standalone financial statements;

• ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

• iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

For Khanna & Annadhanam Chartered Accountants Firm Registration No.: 001297N

B. J. Singh Partner Membership No.: 007884 UDIN: 21007884AAAABT7436

Place: New Delhi Date : 8[th] May, 2021

56

ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph ‘Report on Other Legal and Regulatory Requirements’ of our report of even date)

• (i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

• (b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

• (c) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the title deeds of immovable properties are held in the name of the Company.

• (ii) The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.

• (iii) According to the information and explanations given to us, 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 Companies Act, 2013. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.

• iv) In our opinion and according to the information and explanations given to us, there are no loans and securities granted in respect of which provisions of Section 185 and 186 of the Companies Act, 2013 are applicable. In our opinion and according to the information and explanations given to us, the Company has complied with provisions of section 186 of the Companies Act, 2013 in respect of guarantees given and investments made.

• (v) The Company has not accepted any deposits from the public.

• (vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 148(1) of the Companies Act, 2013, related to the manufacture of products, 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 same.

• (vii) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees’ state insurance, income-tax, duty of customs, goods and service tax, cess and other material statutory dues applicable to it.

• b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees’ state insurance, income-tax, duty of customs, goods and service tax, cess and other material statutory dues were outstanding at the year end, for a period of more than six months from the date they became payable. The particulars of dues of income-tax, sales-tax, service tax, duty of customs, excise duty, goods and service tax, value added tax and cess as at 31 March, 2021 which have not been deposited on account of any dispute, are as follows:

Name of the statute	Nature of dues	Amount (Rs. in lakhs)	Period to which the amount relates	Forum where dispute is pending
Income Tax Act, 1961	Income tax demand	139.15	A.Y.1998-99	Delhi High Court
Income Tax Act, 1961	Income tax demand	16.39	A.Y. 2017-18	CIT (Appeals)
Income Tax Act, 1961	Income tax demand	8.08	A.Y. 2018-19	CIT (Appeals)
Gujarat Sales Tax Act, 1969	Non-Submission of C Forms	32.43	F.Y. 2002-03	Deputy Commissioner, Vadodara

• (viii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to any bank. Further, the Company does not have any debentures and loan from financial institution or government.

• (ix) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, the Company has not

57

raised any money by way of initial public offer / further public offer / debt instruments and term loans and hence, reporting under clause is not applicable to the Company and hence not commented upon.

• (x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud on or by the officers and employees of the Company has been noticed or reported during the year.

• (xi) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.

• (xii) In our opinion, the Company is not a Nidhi company. Therefore, the provisions of clause 3(xii) of the Order are not applicable to the Company and hence not commented upon.

• (xiii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, transactions with the related parties are in compliance with Section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.

• (xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence not commented upon.

• (xv) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him.

• (xvi) According to the information and explanations given to us, the provisions of Section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.

For Khanna & Annadhanam Chartered Accountants (Firm Regn. No. 001297N)

B. J. Singh Partner Membership No. 007884 UDIN: 21007884AAAABT7436

Place: New Delhi Date: 8[th] May, 2021

58

ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph ‘Report on Other Legal and Regulatory Requirements’ of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal controls over financial reporting of Indag Rubber Limited (‘the Company”) as of 31[st] March, 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 Board of Directors of the Company are responsible for establishing and maintaining the internal financial controls based on the internal control over financial reporting criteria established by the respective Companies 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. 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.

Auditor’s Responsibility

Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company 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, prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. 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 over financial reporting 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 over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting 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 over financial reporting 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 Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, 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 over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

59

Opinion

In our opinion to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2021, based on, the internal control over financial reporting criteria established by the respective companies considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

For Khanna & Annadhanam Chartered Accountants (Firm Regn. No. 001297N)

B. J. Singh Partner Membership No. 007884 UDIN: 21007884AAAABT7436

Place: New Delhi Date: 8[th] May, 2021

60

Standalone Balance Sheet as at 31 March, 2021

		Note	As at	As at
		No.	31 March, 2021	31 March, 2020
			(Rs. / lakh)	(Rs. / lakh)
ASSETS
Non-current assets
a.	Property, plant and equipment	3	2,497.51	2,516.27
b.	Capital work-in-progress		1,933.89	1,010.69
c.	Other intangible assets	4	12.53	20.83
d.	Financial assets
	i. Investments	5	8,731.17	7,706.93
	ii. Loans	6	1.48	0.53
	iii. Other fnancial assets	8	101.34	61.81
e.	Income tax assets (Net)	7	281.68	81.41
f.	Other non-current assets	9	229.70	213.08
	Total non-current assets		13,789.30	11,611.55
Current assets
a.	Inventories	10	3,599.45	3,694.79
b.	Financial assets
	i. Investments	11	732.12	534.89
	ii. Trade receivables	12	2,945.97	3,721.42
	iii. Cash and cash equivalents	13	174.32	105.41
	iv. Bank balances other than (iii) above	14	185.45	212.97
	v. Loans	6	17.57	17.57
	vi. Other fnancial assets	8	152.59	544.13
c.	Other current assets	9	622.42	588.88
	Total current assets		8,429.89	9,420.06
	Total assets		22,219.19	21,031.61
EQUITY AND LIABILITIES
Equity
a.	Equity share capital	15	525.00	525.00
b.	Other equity	16	19,193.89	18,125.96
	Total equity		19,718.89	18,650.96
Liabilities
Non-current liabilities
a.	Provisions	20	87.92	69.15
b.	Deferred tax liabilities (Net)	17	283.09	248.73
	Total non-current liabilities		371.01	317.88
Current liabilities
a.	Financial liabilities
	i. Trade payables:-	18
	Total outstanding dues of micro enterprises and small		44.54	361.79
	enterprises
	Total outstanding dues of creditors other than micro		1,476.10	1,186.58
	enterprises and small enterprises
	ii. Other fnancial liabilities	19	334.39	305.68
b.	Provisions	20	48.78	26.94
c.	Other current liabilities	21	225.48	181.78
	Total current liabilities		2,129.29	2,062.77
	Total liabilities		2,500.30	2,380.65
	Total equity and liabilities		22,219.19	21,031.61
Signifcant accounting policies		2

The accompanying notes are an integral part of the financial statements

As per our report of even date For and on behalf of the Board of Directors For Khanna & Annadhanam Chartered Accountants ICAI Firm’s Registration No.: 001297N

B. J. Singh Partner Membership No. 007884

Nand Khemka

Chairman cum Managing Director DIN : 00211084

K. K. Kapur

CEO and Whole Time Director DIN : 00745117

Place: New Delhi Date: May 8, 2021

Manali D Bijlani Company Secretary

Anil Bhardwaj GM (Accounts) & CFO

61

Standalone Statement of Profit and Loss for the year ended 31 March, 2021

		Note	Year ended	Year ended
		No.	31 March, 2021	31 March, 2020
			(Rs. / lakh)	(Rs. / lakh)
I	Revenue from operations	22	16,984.43	18,677.39
II	Other income	23	403.82	457.61
III	Total income (I+II)		17,388.25	19,135.00
IV	Expenses
	Cost of materials consumed	24	10,053.36	12,637.23
	Purchases of stock in trade		32.47	16.05
	Changes in inventories of fnished goods, stock-in-trade and work in	25	673.50	(546.14)
	progress
	Employee benefts expense	26	2,095.25	2,059.81
	Finance costs	28	26.58	25.00
	Depreciation and amortisation expense	27	328.55	374.32
	Other expenses	29	2,501.93	2,897.08
	Total expenses (IV)		15,711.64	17,463.35
V VI	Proft before exceptional items and tax (III-IV) Exceptional items	36(b)	1,676.61 1,324.02	1,671.65 -
**VII **	Proft/(loss) before tax (V-VI)		352.59	1,671.65
**VIII **	Tax expense
	Current tax	32	103.04	437.14
	Deferred tax	17	(24.45)	(98.55)
	Income tax adjustment for earlier year	32	(2.06)	4.96
			76.53	343.55
IX X	Proft/(loss) for the year (VII-VIII) Other comprehensive income (‘OCI’)		276.06	1,328.10
	i. Items that will not be reclassifed subsequently to the statement of
	proft and loss
	a. Gain/(loss) on change in fair valuation of equity instruments		893.61	(482.63)
	carried at fair value through OCI
	b. Gain/(loss) on sale of equity and equity related instruments		207.07	(13.86)
	c. Remeasurement gain/(loss) on defned beneft obligations (net)		(13.08)	14.36
			1,087.60	(482.13)
	ii. Income tax relating to items that will not be reclassifed subsequently
	to statement of proft and loss
	a. Current tax	32	(0.20)	(6.54)
	b. Deferred tax	17	58.81	(7.17)
			58.61	(13.71)
	Total other comprehensive income (X)		1,028.99	(468.42)
XI	Total Comprehensive income for the year (IX+X)		1,305.05	859.68
**XII **	Earnings per equity share
	Basic and diluted (Rs.) [Nominal value of share Rs. 2]	30	1.05	5.06
Signifcant accounting policies		2

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

As per our report of even date For and on behalf of the Board of Directors For Khanna & Annadhanam Chartered Accountants ICAI Firm’s Registration No.: 001297N B. J. Singh Nand Khemka Partner Chairman cum Managing Director Membership No. 007884 DIN : 00211084

K. K. Kapur CEO and Whole Time Director DIN : 00745117

Place: New Delhi Date: May 8, 2021

Manali D Bijlani Company Secretary

Anil Bhardwaj GM (Accounts) & CFO

62

Standalone Statement of changes in equity for the year ended 31 March, 2021

		Amount
		(Rs. / lakh)
a.	Equity share capital
	Balance as at 1 April, 2019	525.00
	Changes in equity share capital during the year	-
	Balance as at 31 March, 2020	525.00
	Balance as at 1 April, 2020	525.00
	Changes in equity share capital during the year	-
	Balance as at 31 March, 2021	525.00

b. Other equity

b. Other equity
	Reserve and surplus				Other comprehensive income (Rs. / lakh)	Total equity attributable to shareholders of the Company (Rs. / lakh)
	Capital reserve (Rs. / lakh)	Securities premium (Rs. / lakh)	General reserve (Rs. / lakh)	Retained earnings (Rs. / lakh)
Balance as at 1 April, 2019 Proft for the year Other comprehensive income for the year, net of income tax Total comprehensive income Dividend paid (including taxes) Balance as at 31 March, 2020 Balance as at 1 April, 2020 Proft for the year Other comprehensive income for the year, net of income tax Total comprehensive income Dividend paid (including taxes) Balance as at 31 March, 2021	0.29 - -	450.00 - -	1,148.80 - -	16,360.42 1,328.10	540.55 - (468.42)	18,500.06 1,328.10 (468.42)
	- -	- -	- -	1,328.10 1,233.78	(468.42) -	859.68 1,233.78
	-	-	-	94.32	(468.42)	(374.10)
	0.29	450.00	1,148.80	16,454.74	72.13	18,125.96
	0.29 - -	450.00 - -	1,148.80 - -	16,454.74 276.06 -	72.13 - 1,028.99	18,125.96 276.06 1,028.99
	- -	- -	- -	276.06 237.12	1,028.99 -	1,305.05 237.12
	-	-	-	**38.94 **	1,028.99	1,067.93
	0.29	450.00	1,148.80	16,493.68	1,101.12	19,193.89

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

As per our report of even date For Khanna & Annadhanam Chartered Accountants ICAI Firm’s Registration No.: 001297N B. J. Singh Partner Membership No. 007884

For and on behalf of the Board of Directors

Nand Khemka

K. K. Kapur

Chairman cum Managing Director DIN : 00211084

CEO and Whole Time Director DIN : 00745117

Place: New Delhi Date: May 8, 2021

Manali D Bijlani Company Secretary

Anil Bhardwaj GM (Accounts) & CFO

63

Standalone Statement of Cash flow for the year ended 31 March, 2021

		Year ended	Year ended
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
A.	Cash fow from operating activities
	Proft before tax	352.59	1,671.65
	Adjustments for:
	Exceptional item (Litigation settlement under LCR Scheme)[refer note 36 (b)]	1,324.02	-
	Depreciation and amortisation expense	328.55	374.32
	Loss/(Gain) on disposal of property, plant and equipment (net)	10.37	(2.64)
	Bad debt written of	1.36	1.36
	Provision for doubtful debts	22.32	39.86
	Provision for doubtful advance written back	-	(0.17)
	Provision /Liabilities no longer required written back	(4.89)	(0.03)
	Unrealised loss/(gain) on foreign exchange fuctuation	(0.49)	(2.07)
	Loss/(gain) arising on fnancial assets designated through FVTPL	(121.22)	(95.94)
	Loss/(gain) on disposal of debt instruments at FVTPL	(28.69)	(14.86)
	Dividend income from investments	(186.18)	(285.94)
	Interest expense	20.23	20.00
	Interest income earned on fnancial assets	(56.35)	(49.13)
	Operating proft before working capital changes	1,661.62	1,656.41
	Adjustments for changes in working capital:
	Adjustments for operating assets:
	Decrease/(Increase) in trade receivables	752.26	(314.09)
	Decrease/(Increase) in inventories	95.34	115.70
	Decrease/(Increase) in loans	(0.95)	5.34
	Decrease/(Increase) in other fnancial assets	(98.90)	(18.32)
	Decrease/(Increase) in other assets	(30.84)	(366.05)
	Adjustments for operating liabilities:
	(Decrease)/Increase in trade payables	(22.84)	105.29
	(Decrease)/Increase in other liabilities	43.70	18.49
	(Decrease)/Increase in fnancial liabilities	13.96	68.04
	(Decrease)/Increase in provisions	27.53	27.00
	Cash generated from operating activities	2,440.88	1,297.81
	Income taxes paid (Net)	(301.05)	(466.91)
	Entry Tax Payment[refer note 36 (b)]	(872.69)	-
	Net cash fow from /(used in) operating activities	1,267.14	830.90
B.	Cash fow from investing activities
	Purchase of Property plant and equipment	(1,240.32)	(1,384.73)
	Proceeds from sale of Property plant and equipment	2.52	8.61
	Purchases of Investments	(7,361.85)	(7,293.37)
	Proceeds from sale/maturity of Investments	7,388.99	8,575.21
	Bank balance not considered as Cash and cash equivalents	27.52	3.39
	Interest received	57.91	52.59
	Dividend received	186.18	285.94
	Net cash fow from /(used in) investing activities	(939.05)	247.64

64

contd... Standalone Statement of Cash flow for the year ended 31 March, 2021

		Year ended	Year ended
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
C.	Cash fow from fnancing activities
	Government Grant Received	-	30.00
	Interest paid	(20.53)	(18.88)
	Dividend paid	(237.78)	(1,025.41)
	Tax on dividend paid	(0.87)	(210.03)
	Net cash (used in) fnancing activities	(259.18)	(1,224.32)
	Net (decrease)/increase in cash and cash equivalents (A+B+C)	68.91	(145.78)
	Cash and cash equivalents at the beginning of the year	105.41	251.19
	Cash and cash equivalents at the end of the year	174.32	105.41
	Components of cash and cash equivalents:
	Cash on hand	3.85	2.66
	Balances with banks:
	-on current accounts	8.25	63.49
	-on cash credit accounts	162.22	39.26
	Total cash and cash equivalents	174.32	105.41

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

As per our report of even date

For Khanna & Annadhanam Chartered Accountants ICAI Firm’s Registration No.: 001297N B. J. Singh Partner Membership No. 007884

For and on behalf of the Board of Directors

Nand Khemka

K. K. Kapur CEO and Whole Time Director DIN : 00745117

Chairman cum Managing Director DIN : 00211084

Place: New Delhi Date: May 8, 2021

Manali D Bijlani Company Secretary

Anil Bhardwaj GM (Accounts) & CFO

65

Notes to Standalone financial statements for the year ended 31 March, 2021

1. Corporate information

Indag Rubber Limited (hereinafter referred to as “the Company”) is a Public Limited Company incorporated and domiciled in India. The registered office of the Company is located at 11 Community Centre, Saket, New Delhi110017, India. The Company’s CIN is - L74899DL1978PLC009038.

The Company’s shares are listed on Bombay Stock Exchange (‘BSE’). The Company is engaged in the manufacturing and selling of Precured Tread Rubber and allied products.

These financial statements were approved by the Board of Directors and authorized for issue on May 8, 2021.

2.

2.1

Significant accounting policies

Statement of compliance and basis of preparation and presentation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standard) (Amendment) Rules, 2016. The Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under Section 133 of the Companies Act, 2013 (“the Act”).

The financial statements have been prepared on historical cost basis except for certain financial instruments which are measured at fair value at the end of each reporting period as explained in the accounting policies below.

The financial statements of the Company are presented in Indian Rupees (Rs.) and all values are rounded to the nearest lakh, except when otherwise indicated.

With effect from 1st April, 2019, Ind AS 116 – “Leases” (Ind AS 116) supersedes Ind AS 17 – “Leases”. The Company has adopted Ind AS 116 using the Modified retrospective approach. The adoption of the standard did not have any significant impact on the financial statements.

2.2

Basis of classification of Current and Non-Current

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

Deferred tax assets and liabilities are classified as non-current assets or liabilities.

2.3

Use of estimates

• i) The preparation of these financial statements, in conformity with the recognition and measurement principles of Ind AS, requires the management of the Company to make judgments, estimates and assumptions that affect application of accounting policies and the reported amount of assets and liabilities, disclosures relating to contingent assets and liabilities as at the date of the financial statements and the reported amounts of income and expenses for the periods presented. Actual results may differ from these estimates. Accounting estimates could change from period to period.

Estimates and underlying assumptions are reviewed on ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected. Changes in estimates are reflected in the financial statements in the period in which changes are made, if material, their effects are disclosed in the notes to the financial statements.

Key source of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of valuation of deferred tax assets, property plant and equipments, impairement of investments, provisions and contingent liabilities.

• ii) Uncertainty relating to the global health pandemic Covid-19

The Company has made assessment about the recoverability and carrying value of its assets comprising property, plant and equipment, investments, inventory and trade receivables taking into account the

66

second wave on Covid-19 started in April 2021. Based on current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets. The situation is changing rapidly giving rise to inherent uncertainty around the extent and timing of the potential future impact of the COVID19 which may be different from that estimated as at the date of approval of these standalone financial statements. The Company will continue to closely monitor any material changes arising of future economic conditions and impact on its business.

2.4 Revenue Recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is received. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The following specific criteria must also be met before revenue is recognised:

i) Sale of goods

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. Revenue is recognised when collectability of the resulting receivables is reasonably assured.

ii) Sale of services

Revenue from sale of services is recognised as and when the services are rendered and the stage of completion can be measured reliably.

iii) Dividend and interest income

Dividend income from investments is recognised when the right to receive dividend is established by the reporting date.

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 proportion basis, with reference to the principal outstanding and at the effective interest rate, which is the rate that exactly discounts estimated future cash receipts over the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

iv) Export Benefits

Export entitlements in the form of Duty Drawback Scheme, Focus Product Scheme and Merchandise Export from India are recognized in the statement of profit and loss when the right to receive credit as per the terms of the scheme is established in respect of exports made and when there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.

2.5 Leases

The Company, as a lessee, recognises a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.

67

2.6 Foreign currency

For short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the lease term

These financial statements are presented in Indian rupees (Rs. / lakh), which is the Company’s functional and presentation currency.

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Foreign currency denominated monetary assets and liabilities are re-measured into the functional currency at the exchange rate prevailing on the balance sheet date.

Exchange differences are recognized in the Statement of Profit and Loss.

2.7 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are recognized in the Statement of Profit and Loss in the period in which they are incurred.

Borrowing costs include interest and amortisation of ancillary costs incurred in connection with the arrangement of borrowings.

2.8 Employee benefits

• (i) Retirement benefit in the form of provident fund (where contributed to the Regional PF Commissioner) is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognises contribution payable to the provident fund scheme as expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre payment will lead to, for example, a reduction in future payment or a cash refund.

Retirement benefits in the form of provident fund contributed to the Trust set up by the employer is a defined benefit scheme and is provided for on the basis of actuarial valuation of projected unit credit method made at the end of each financial year. The difference between the actuarial valuation of the provident fund of employees at the year end and the balance of own managed funds is provided for as liability in the books by the Company.

• (ii) Gratuity liability under the Payment of Gratuity Act is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year. The gratuity plan has been funded by policy taken from Life Insurance Corporation of India. Actuarial gains and losses are recognised in full in the other comprehensive income for the period in which they occur. Past service cost both vested and unvested is recognised as an expense at the earlier of

• (a) When the plan amendment or curtailment occurs; and

• (b) When the entity recognises related restructuring costs or termination benefits.

• (iii) Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

• (iv) The Company treats accumulated leave expected to be carried forward beyond twelve months, as longterm employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/ losses are immediately taken to the statement of profit and loss and are not deferred.

2.9 Income Taxes

Income tax expense represents the sum of the tax currently payable and deferred tax.

68

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.

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 to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

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 realised, 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.

Current and deferred tax for the year

Current and deferred tax are recognised in profit or 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.

2.10 Property, plant and equipment

Property, plant and equipment, capital work in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciated them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in the statement of profit and loss as incurred. The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of respective asset if the recognition criteria for a provision are met.

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 assets.

Gains or losses arising from disposal or retirement of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

2.11 Depreciation on property, plant and equipment

Leasehold land is amortised on a straight line basis over the period of lease i.e., 95/99 years. Freehold land is not depreciated.

Depreciation on property, plant and equipment including stores and spares transferred from inventory is calculated on a straight-line basis using the rates arrived at, based on the useful lives estimated by the management, which are equal to the useful lives prescribed under Schedule II to the Companies Act, 2013.

69

Estimated useful lives of the assets are as follows:

S. No.	Assets	Useful lives inyears
i.	Buildings	Ranging from 5 to 60 Years
ii.	Plant and equipment	Ranging from 3 to 15 Years
iii.	Furniture and Fixtures	10 years
iv.	Ofce equipment	Ranging from 3 to 6 Years
v.	Vehicles	Rangingfrom 8 to 10 Years

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at the end of each reporting period with the effect of any change in estimate accounted for on a prospective basis.

2.12

Intangible assets

Intangible assets purchased are measured at cost as of the date of acquisition less accumulated amortisation and accumulated impairment, if any.

Intangible assets consist of rights under licensing agreement and software licenses which are amortised over license period which equates the useful life ranging between 2-4 years on a straight-line basis or actual life of license whichever is earlier.

2.13 Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. 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. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

The Company bases its impairment calculation on detailed budgets and forecast calculations which are prepared separately for each of the Company’s cash-generating units to which the individual assets are allocated.

Impairment losses, including impairment on inventories, are recognized in the statement of profit and loss. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

2.14 Inventories

Inventories are valued as follows:

nventories nventories are valued as follows:
Raw materials, stores and spares	Lower of cost and net realizable value. However, materials and other
and packing materials	items held for use in the production of inventories are not written down
	below cost if the fnished products in which they will be incorporated,
	are expected to be sold at or above cost. Cost is determined on
	moving weighted average method.
Work in progress and fnished goods	Lower of cost and net realizable value. Cost includes direct materials
(own manufactured)	and labour and a proportion of manufacturing overheads based on
	normal operating capacity. Cost is determined on monthly moving
	weighted average basis.
Traded goods	Lower of cost and net realizable value. Cost includes cost of purchase
	and other costs incurred in bringing the inventories to their present
	location and condition. Cost is determined on moving weighted
	average basis.

70

Net realisable value is the estimated selling price in the ordinary course of business less estimated cost of completion and estimated costs necessary to make the sale.

2.15 Provisions

Provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

2.16 Financial instruments - Financial assets, Financial liabilities and Equity instruments

• 2.16.1 Financial Assets Recognition: Financial assets include Investments, Trade Receivables, Advances, Security Deposits, Cash and Cash equivalents. Such assets are initially recognised at transaction price when the Company becomes party to contractual obligations. The transaction price includes transaction costs unless the asset is being fair valued through the Statement of Profit and Loss.

• 2.16.2 Classification: Management determines the classification of an asset at initial recognition depending on the purpose for which the assets were acquired. The subsequent measurement of financial assets depends on such classification.

2.16.3 Financial assets are classified as those measured at:

• (a) amortised cost, where the financial assets are held solely for collection of cash flows arising from payments of principal and/ or interest.

• (b) fair value through other comprehensive income (FVTOCI), where the financial assets are held not only for collection of cash flows arising from payments of principal and interest but also from the sale of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in other comprehensive income.

• (c) fair value through profit or loss (FVTPL), where the assets are managed in accordance with an approved investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in the Statement of Profit and Loss in the period in which they arise. Trade Receivables, Advances, Security Deposits, Cash and Cash equivalents etc. are classified for measurement at amortised cost while investments may fall under any of the aforesaid classes. However, in respect of particular investments in equity instruments that would otherwise be measured at fair value through profit or loss, an irrevocable election at initial recognition may be made to present subsequent changes in fair value through other comprehensive income. This option has been adopted by the company irrevocably.

2.16.4 Financial Assets at fair value through other comprehensive income:

These include financial assets that are equity instruments and are irrevocably designated as such upon initial recognition. Subsequently, these are measured at fair value and changes therein are recognized directly in other comprehensive income, net of applicable income taxes.

Dividends from these equity investments are recognized in the Statement of Profit and Loss when the right to receive payment has been established. When the equity investment is derecognized, the cumulative gain or loss in equity is transferred to Other equity.

2.16.5 Financial assets at fair value through profit or loss:

Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs that are directly attributable to the acquisition of financial assets, which are measured at fair value through profit or loss, are immediately recognised in profit or loss.

• 2.16.6 Cash and cash equivalents : Cash and cash equivalents comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, from the date of purchase which are subject to an insignificant risk of changes in value.

71

• 2.16.7 Equity instruments: An equity instrument is any contract that evidences residual interests in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.

• 2.16.8 Financial Liabilities: Borrowings, trade payables and other financial liabilities are initially recognised at the value of the respective contractual obligations. They are subsequently measured at amortised cost. Any discount or premium on redemption/settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the liability using the effective interest method and adjusted to the liability figure disclosed in the Balance Sheet.

• Financial liabilities are derecognised when the liability is extinguished, that is, when the contractual obligation is discharged, cancelled or on expiry.

• 2.16.9 Financial guarantee contracts: These are initially measured at fair value and are subsequently measured at the higher of the amount of loss allowance determined or the amount initially recognized, less the cumulative amount of income recognized.

• 2.16.10 Other financial liabilities: These are measured at amortized cost using the effective interest rate method.

• 2.16.11 Determination of fair value: The fair value of a financial instrument on initial recognition is normally the transaction price (fair value of the consideration given or received). Subsequent to initial recognition, the Company determines the fair value of financial instruments, that are quoted in active markets, using the quoted prices (financial assets held) and using valuation techniques for other instruments. Valuation techniques include discounted cash flow method and other valuation models.

2.16.12 Derecognition of financial assets and financial liabilities:

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes 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 recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.

Financial liabilities are derecognised when these are extingushed, which is when the obligation is discharged, cancelled or expired.

2.16.13 Impairment of financial assets:

The Company assesses at each reporting date whether a financial asset (or a group of financial assets) such as investments, trade receivables, advances and security deposits held at amortised cost and financial assets that are measured at fair value through other comprehensive income are tested for impairment based on evidence or information that is available without undue cost or effort. Expected credit losses are assessed and loss allowances recognised if the credit quality of the financial asset has deteriorated significantly since initial recognition.

2.16.14 Derivative financial instruments

The Company does not hold any derivative and embedded derivative financial instruments.

2.17 Fair value measurement

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 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.

In addition, for financial reporting purposes, fair value measurements are categorised 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: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

72

• Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

2.18 Segment reporting

The Operating Segment have been reported in a manner consistent with the internal reporting provided to the Chief Financial Officer and the Chief Executive Officer who are the Chief Operating Decision Maker (CODM).The Company is engaged in the manufacturing of the Precured Tread Rubber, Bonding Repair and Extrusion Gum and Rubber Cement, which are used for retreading of tyres and providing tyre retreading service. These products do not have any different risk and returns and thus the CODM performs review based on one operating segment.

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

2.19 Investments in subsidiary & Joint Venture

Investments in subsidiary & Joint Venture are measured at cost as per Ind AS-27 – Separate financial statements.

2.20 Earnings per share

Basic earnings per share are computed by dividing profit/loss for the period by the weighted average number of shares outstanding during the year. Partly paid up shares are included as fully paid equivalents according to the fraction paid up. Diluted earnings per share are computed using the weighted average number of shares and dilutive potential shares, except where the result would be anti-dilutive.

2.21 Government grants and subsidies

Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the Company will comply with the conditions attached to them, and (ii) the grant/ subsidy will be received.

Where the grant or subsidy relates to revenue, it is recognized as income on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs, which they are intended to compensate. Where the grant relates to an asset, it is reduced from the respective cost of an asset and accordingly depreciation is calculated on reduced amount

2.22 Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

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3 Property, plant and equipment

	Freehold land	Leasehold land	Buildings	Plant and equipment	Furniture and fxtures	Ofce equipment	Vehicles	Total
	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
Cost or deemed cost
As at 01.04.2019	80.37	15.79	1,047.12	2,189.25	62.55	91.07	47.34	3,533.49
Additions	-	-	-	216.57	13.93	20.72	10.78	262.00
Deductions	-	-	-	7.25	-	0.98	1.49	9.72
Govt Grant	-	-	-	30.00	-	-	-	30.00
As at 31.03.2020	80.37	15.79	1,047.12	2,368.57	76.48	110.81	56.63	3,755.77
Additions	-	-	1.12	297.50	0.49	12.45	-	311.56
Deductions	-	-	-	33.18	0.01	1.58	6.08	40.85
As at 31.03.2021	80.37	15.79	1,048.24	2,632.89	76.96	121.68	50.55	4,026.48
Depreciation
As at 01.04.2019	-	0.56	131.56	674.01	8.00	46.08	20.59	880.80
Charge for theyear	-	0.19	43.88	249.82	44.64	16.84	7.08	362.45
Deductions	-	-	-	1.59	-	0.83	1.33	3.75
As at 31.03.2020	-	0.75	175.44	922.24	52.64	62.09	26.34	1,239.50
Charge for theperiod	-	0.19	43.82	246.49	2.89	17.90	6.14	317.43
Deductions	-	-	-	22.64	-	1.03	4.29	27.96
As at 31.03.2021	-	0.94	219.26	1,146.09	55.53	78.96	28.19	1,528.97
Net block
As at 31.03.2020	80.37	15.04	871.68	1,446.33	23.84	48.72	30.29	2,516.27
As at 31.03.2021	80.37	14.85	828.98	1,486.80	21.43	42.72	22.36	2,497.51

• The leasehold land comprises land obtained on lease from Rajasthan State Industrial & Mineral Development Corporation Limited for 99 years and land obtained from Government of Himachal Pradesh for 95 years.

4 Other intangible assets

Other intangible assets
	Computer Software	Total
	(Rs. / lakh)	(Rs. / lakh)
Cost or deemed cost
As at 01.04.2019	48.70	48.70
Additions	9.16	9.16
Deductions	-	-
As at 31.03.2020	57.86	57.86
Additions	2.82	2.82
Deductions	-	-
As at 31.03.2021	60.68	60.68
Amortisation
As at 01.04.2019	25.16	25.16
Charge for the year	11.87	11.87
Deductions	-	-
As at 31.03.2020	37.03	37.03

74

	Computer Software	Total
	(Rs. / lakh)	(Rs. / lakh)
Charge for the period	11.12	11.12
Deductions	-	-
As at 31.03.2021	48.15	48.15
Net block
As at 31.03.2020	20.83	20.83
As at 31.03.2021	12.53	12.53

5 Investments

			As at			As at
		**31 **	March, 2021			31 March,2020
		Face value	Numbers	(Rs. / lakh)	Face value	Numbers	(Rs. / lakh)
		per share /			per share
		unit			/ unit
		(in Rs)			(in Rs)
Non-current
A.	Investments carried at cost
	[Fully paid-up (Unquoted)]
i.	Investment in subsidiary
	Equity shares of SUN-AMP Solar India	10	37,38,300	295.35	10	37,38,300	295.35
	Private Limited
				295.35			295.35
ii.	Investment in Joint Venture
	Sun Mobility EV Infra Private Limited
	(formerly known as Alberieth EV Services
	Private Limited)
	Equity shares	10	15,00,000	150.00	10	15,00,000	150.00
	0.001% Optionally convertible redeemable	10	1,20,00,000	1,200.00	10	1,20,00,000	1,200.00
	preference shares
				1,350.00			1,350.00
				1,645.35			1,645.35
B.	Investments carried at Fair value through
	other comprehensive income
i.	Equity shares
	[Fully paid-up (Quoted)]
	IDFC Limited	10	16,770	7.94	10	16,770	2.49
	Lupin Limited	2	1,372	14.00	2	1,372	8.09
	AIA Engineering Limited	2	593	12.17	2	593	8.20
	Larsen and Toubro Limited	2	2,128	30.19	2	2,128	17.20
	DCB Bank Limited	10	20,833	21.38	-	-	-
	Engineers India Limited	5	4,370	3.36	5	4,370	2.62
	Axis Bank Limited	2	1,468	10.24	2	1,468	5.57
	ICICI Bank Limited	2	6,850	39.87	2	6,858	22.20
	Tech Mahindra Limited	5	3,610	35.79	5	3,610	20.41
	United Spirits Limited	2	3,015	16.77	2	3,015	14.61
	Wipro Limited	2	9,818	40.66	2	9,818	19.31
	Cipla Limited	2	2,220	18.10	2	2,220	9.39
	P.I. Industries Limited	1	1,169	26.40	1	1,199	13.67
	Supreme Industries Limited	2	627	12.81	2	627	5.45
	City Union Bank Limited	1	9,738	15.19	1	9,738	12.63
	Persistent Systems Limited	10	717	13.78	10	1,867	10.29
	La Opala RG Limited	2	2,846	6.31	2	2,846	4.25
	Eastern Treads Limited	10	11,100	6.11	10	11,100	1.88
	Vamshi Rubber Limited	10	4,664	0.90	10	4,664	0.68
	PVR Limited	10	1,079	13.23	10	1,079	12.77
	Torrent Pharmaceuticals Limited	5	1,063	27.05	5	1,063	20.96
	Page Industries Limited	10	49	14.86	10	49	8.29
	Amrutanjan Health care Limited	1	2,456	13.94	1	2,456	8.10
	Cadila Healthcare Limited	1	1,214	5.35	1	1,214	3.24

75

			As at				As at
		**31 March, **		2021			31 March,2020
		Face value	Numbers		(Rs. / lakh)	Face value	Numbers	(Rs. / lakh)
		per share /				per share
		unit				/ unit
		(in Rs)				(in Rs)
	Cholamandalam investment and fnance	2	4,615		25.79	2	4,615	7.06
	company Limited
	Garware Technical fbres Limited	10		840	21.56	10	840	8.96
	(Erstwhile Garware wall ropes Limited)
	Embassy Ofce Park - REIT	300	5,600		18.24	300	5,600	19.68
	Kajaria Ceramics Limited	1	2,061		19.10	1	2,061	7.76
	Aavas Financiers Ltd	10		650	15.74	-	-	-
	Mindspace Business Parks - REIT	275	7,000		20.63	-	-	-
					527.46			275.76
ii.	Equity mutual funds
	(Unquoted)
	HDFC Balance Advantage Fund - Direct	-		-	-	10	3,10,556.25	63.17
	Plan - Dividend (merged with HDFC
	Prudence Fund)
	HDFC Top 100 Fund - Direct Plan	-		-	-	10	4,90,313.60	153.91
	-Dividend (Erstwhile HDFC Top 200 Fund)
	HDFC Top 100 Fund - Direct Plan -Growth	100	42,581.41		257.82	-	-	-
	ICICI Prudential Equity & Debt fund -	-		-	-	10	3,94,706.74	88.26
	Direct Plan - Dividend (Erstwhile ICICI
	Prudential Balanced Fund)
	ICICI Prudential Equity & Debt Fund -	10	77,294.80		142.04	-	-	-
	Direct Plan - Growth
	Kotak Standard Multicap Fund - Regular	-		-	-	10	3,63,612.17	61.84
	Plan - Dividend (Erstwhile Kotak Select
	Focus Fund)
	Kotak Flexicap Fund - Regular Plan	10	2,28,954.98		102.94	-	-	-
	(Erstwhile Kotak Standard Multicap Fund -
	Regular Plan - Growth)
	Kotak Flexicap Fund - Direct Growth	10	1,83,549.60		89.44	-	-	-
	(Erstwhile Kotak Standard Multicap Fund -
	Direct Plan - Growth)
	SBI Blue Chip Fund - Regular Plan -Dividend	-		-	-	10	2,71,815.81	46.01
	SBI Blue Chip Fund - Regular Plan	10	1,54,627.20		80.08	-	-	-
	-Growth
	ICICI Prudential Multi Cap Fund - Regular	-		-	-	10	2,18,254.51	30.56
	Plan - Dividend
	ICICI Prudential Multi Cap Fund - Regular	10	15,330.30		54.81	-	-	-
	Plan - Growth
	Axis Focused 25 Fund - Direct Plan -	10	2,15,649.47		89.30	-	-	-
	Growth
	Franklin India Focused Equity Fund -Direct	-		-	-	10	2,02,815.07	35.55
	- Dividend Payout (Erstwhile Franklin India
	High Growth Companies Fund)
	Kotak Equity Arbitrage Fund - Direct Plan	-		-	-	10	18,09,692.72	202.18
	- Dividend
	Kotak Equity Arbitrage Fund - Direct Plan	-		-	-	10	4,99,316.93	145.15
	-Growth
	Avendus Enhanced Return Fund				378.52			239.16
	Mirae Asset Large Cap Fund - Regular	10	1,15,442.88		75.62	10	1,15,442.88	44.83
	Plan - Growth
	UTI Arbitrage Fund - Direct Plan - Growth	10	4,39,638.95		125.10	-	-	-
	UTI Arbitrage Fund - Direct Plan - Dividend	-		-	-	10	8,75,513.64	149.13
	Payout
	ICICI Prudential Equity Arbitrage Fund -	-		-	-	10	13,69,590.97	199.55
	Direct Plan - Dividend
					1,395.67			1,459.30
iii.	Capital venture fund (unquoted)
	Zodius Technology Fund	10	6,91,017.14		69.79	10	7,61,401.14	93.65
	IIFL Special Opportunities Fund Series 4	8.45	25,25,059.34		237.17	10	25,25,059.34	208.45

76

			As at			As at
		31 March, 2021				31 March,2020
		Face value	Numbers	(Rs. / lakh)	Face value	Numbers	(Rs. / lakh)
		per share /			per share
		unit			/ unit
		(in Rs)			(in Rs)
	India Small and Mid Cap Gems fund	-	-	-	100	1,00,000.00	81.59
	India Whizdom Fund			20.86			161.11
				327.82			544.80
iv.	Investment in Compulsory convertible
	preference shares (Unquoted)
	SRL 142 Holdings Limited	$1	18,00,000	1,617.10	$1	18,00,000	1383.43
	(These preference shares are fully paid
	up and will be compulsory converted into
	equity shares after eight years from the
	date of issue.)
				1,617.10			1,383.43
v.	Investment in Equity shares (Unquoted)
	Lithium Urban Technologies Private	10	9,029	256.51	10	9,029	256.51
	Limited
				256.51			256.51
				4,124.56			3,919.80
C.	Investments carried at Fair value through proft and loss (Unquoted)
	LIC MF Bond Fund - Growth Plan	10	7,29,047.18	413.63	10	7,29,047.18	392.46
	Kotak Credit Risk Fund - Direct -	-	-	-	10	10,63,925.99	249.60
	Growth Plan (Erstwhile Kotak Income
	Opportunities Fund)
	Kotak Floating Rate Fund Direct Plan	1,000	22,780.27	263.58	-	-	-
	Growth
	IDFC Banking & PSU Debt Fund - Direct	10	5,25,896.44	102.76	-	-	-
	-Plan - Growth
	Aditya Birla Sun Life Banking & PSU Debt	100	1,07,799.51	312.32	-	-	-
	fund - Growth - Direct Plan (Erstwhile
	Aditya Birla Sun Life Treasury Optimizer
	Plan)
	ICICI Prudential Real Estate AIF-1	100	1,42,204.00	142.20	100	1,68,328.00	168.33
	UTI-Fixed Term Income Fund - Series	-	-	-	10	20,00,000.00	221.08
	XXVIII-II (1210 Days) - Direct - Growth
	Plan
	UTI Fixed Term Income Fund - Series	-	-	-	10	30,00,000.00	337.91
	XXVIII-XIII ( 1134 Days) - Direct Plan -
	Growth
	IDFC Bond Fund - Short Term - Direct Plan	10	9,78,037.66	458.33	-	-	-
	– Growth
	SBI Short term Debt Fund - Direct Plan	10	17,58,701.23	457.77	-	-	-
	- Growth
	Axis Short Term Fund - Direct Plan - Growth	10	20,10,919.44	510.81	-	-	-
				2,661.40			1,369.38
D.	Investments carried at amortised cost
	(Unquoted)
i.	Tax free Bonds
	7.40% IIFCL (HNI) 22-Jan-33 (Tax Free)	1,000	18,250	186.54	1,000	18,250	186.88
	8.26% IIFCL 23-Aug-28 (Tax Free)	10,00,000	8	84.83	10,00,000	8	85.52
				271.37			272.40
ii.	Investment in preference shares
	7.5% Cumulative Redeemable Preference	-	-	-	1000	50,000	500.00
	Shares of Tata Capital Limited
	(Cumulative redeemable preference
	shares are fully paid up and are
	redeemable at par after 7 years from the
	date of allotment.)
				-			500.00

77

					As at	As at				As	at
				**31 **	**March, **		2021			31 March,2020
			Face value		Numbers			(Rs. / lakh)	Face value	Numbers		(Rs. / lakh)
			per share /						per share
			unit						/ unit
			(in Rs)						(in Rs)
	iii.	Corporate and psu bonds
		11.80% SREI Equipment Finance Limited	10,00,000				1.00	9.81	-		-		-
		10.25% SREI Equipment Finance Ltd	1,000			1500.00		14.49	-		-		-
		9.90% IFCI Limited	25,000				8.00	2.18	-		-		-
		9.48% West Bengal Financial Corporation	1,00,000				2.00	2.01	-		-		-
								28.49					-
								299.86				772.40
								8,731.17				7,706.93
		Measured at fair value through proft or loss						2,661.40				1,369.38
		Measured at amortised cost						299.86				772.40
		Measured at fair value through other						4,124.56				3,919.80
		comprehensive income
		Measured at cost						1,645.35				1,645.35
								8,731.17				7,706.93
	a.	Aggregate amount of quoted investments						527.46				275.76
		and market value thereof
	b.	Aggregate amount of unquoted						8,203.71				7,431.17
		investments (including mutual funds)
	Notes:
	i.	Investment in Subsidiary				Registered Ofce				% of shareholding
									31 March 2021 31 March				2020
		Equity shares of Sun-AMP Solar India			11, Community Centre,						51%		51%
		Private Limited			Saket, New Delhi -110017
	ii.	Investment in Joint Venture
		Sun Mobility EV Infra Private Limited			11, Community Centre,
		(formerly known as Alberieth EV Services			Saket, New Delhi -110017
		Private Limited)
		Equity shares									50%		50%
		0.001% Optionally covertible redeemable								100%		100%
		preference shares
			Non-current							Current
			As		at			As at		As at		As at
			31 March,	2021		31 March, 2020			31 March, 2021		31 March, 2020
			(Rs. / lakh)				(Rs./lakh)		(Rs. / lakh)			(Rs./lakh)
6	Loans
	(Unsecured, considered good)
	(at	amortised cost)
		Loan to employees		1.48				0.53		17.57		17.57
				1.48				0.53		17.57		17.57
7	Income tax assets (net)
	Income tax assets
		Income tax paid (Net of provision for	281.68					81.41		-			-
		income tax)
			281.68					81.41		-			-

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8 Other financial assets

Other fnancial assets
	Non-current		Current
	As at	As at	As at	As at
	31 March, 2021	31 March, 2020	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
Fixed deposits with banks
Deposits with banks and government tax	54.17	21.18	-	-
authorities paid under protest and pledged
	54.17	21.18	-	-
Deposits
Security deposits - considered good	46.50	40.06	98.74	42.25
	46.50	40.06	98.74	42.25
Others
Deposit with government tax authorities under	-	-	25.70	477.36
protest [refer note 36(a)]
Interest accrued on fnancial assets carried at
amortised cost:
- fxed deposits with banks	0.67	0.57	5.62	6.87
- other deposits	-	-	1.26	0.92
- other investments	-	-	7.82	6.59
Export benefts receivable	-	-	13.14	9.53
Other receivable	-	-	0.31	0.61
	0.67	0.57	53.85	501.88
	101.34	61.81	152.59	544.13

• 9 Other assets

Other assets
	Non-current		Current
	As at	As at	As at	As at
	31 March, 2021	31 March, 2020	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
Capital advances	223.76	204.44	-	-
Advance to suppliers	-	-	34.57	42.45
Balances with statutory / government authorities	-	-	485.47	451.52
Prepaid expenses (refer note 38)	5.94	8.64	83.56	76.86
Advances to employees	-	-	15.23	13.63
Other advances	-	-	3.59	4.42
	229.70	213.08	622.42	588.88

• 10 Inventories

Inventories
	As at	As at
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Raw materials	1,206.94	637.65
[including stock in transit Rs. 66.58 lakh (previous year Rs. Nil)]
Packing materials	17.38	10.03
Stores and spare parts	112.83	107.70
Work-in-progress	251.15	273.15
Finished goods	1,988.16	2,645.24
Traded goods	22.99	21.02
	3,599.45	3,694.79

79

11 Investments

Current

Investments Current
	As at 31 March, 2021			As at 31 March,2020
	Face	Numbers	(Rs. /	Face	Numbers		(Rs. /
	value per		lakh)	value per			lakh)
	unit			unit
	(In Rs)			(In Rs)
Investments carried at Fair value
through proft and loss
Investments in Mutual Funds (Unquoted)
Reliance Mutual Fund ETF Liquid Bees	1,000	3.17	0.03	1,000		3.17	0.03
Aditya Birla Sun Life Banking & PSU Debt	-	-	-	100	36,790.60		98.22
fund - Growth - Direct Plan (Erstwhile
Aditya Birla Sun Life Treasury Optimizer
Plan)
UTI Liquid Cash Plan - Direct Plan - Growth	1,000	3,711.11	125.08	-		-	-
UTI Overnight Fund - Direct - Growth Plan	-	-	-	1,000	3,658.48		100.03
UTI-Fixed Term Income Fund - Series	10 20,00,000.00		235.30	-		-	-
XXVIII-II (1210 Days) - Direct - Growth Plan
UTI Fixed Term Income Fund - Series	10 30,00,000.00		371.71	-		-	-
XXVIII-XIII (1134 Days) - Direct Plan -
Growth
UTI Fixed Term Income Fund - Series	-	-	-	10	30,00,000.00		336.61
XXVII - VI (1113 Days) - Direct - Growth
Plan
			732.12				534.89
Aggregate amount of unquoted investments			732.12				534.89
Trade receivables
					As at		As at
				31 March,	2021	31 March, 2020
				(Rs. /	lakh)	(Rs. / lakh)
Trade Receivables considered good - Secured					83.58		70.86
Trade Receivables considered good - Unsecured				2,862.39			3,650.56
Trade Receivables - Credit impaired				104.21			81.89
				3,050.18			3,803.31
Allowances for credit losses (doubtful debts)				104.21			81.89
				2,945.97			3,721.42

12 Trade receivables

Notes:

• a. The credit period generally allowed on sales of goods and services varies from 21 to 60 days.

b. The allowances for credit losses (doubtful debts) at the reporting period are analysed by the Company on case to case basis.

• c. Movement in the credit loss allowances:

	As at	As at
	31 March,	31 March,
	2021	2020
	(Rs. / lakh)	(Rs. / lakh)
Balance at the beginning of the year	81.89	42.03
Movement in expected credit loss allowance on trade receivables	22.32	39.86
Balance at the end of the year	104.21	81.89

• d. The concentration of credit risk is limited due to the fact that the customer base is large and unrelated.

80

13 Cash and cash equivalents

		As at	As at
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
Balances with banks:
-	On current accounts	8.25	63.49
-	On cash credit accounts	162.22	39.26
		170.47	102.75
Cash	on hand	3.85	2.66
		174.32	105.41

Note:

Cash credit from banks are secured by first pari passu charge on entire current assets including stocks lying at the Company’s factory at Nalagarh and other stock points, on book debts and on entire fixed assets of the Company - present and future.

The Company has not utilised Cash Credit as on 31 March,2021 and 31 March,2020.

14 Bank balances other than above

Other bank balances:

-	Deposits with remaining maturity for less than 12 months (Deposits pledged	130.16	156.15
	with banks and other government authorities)
-	Unpaid dividend accounts	55.29	56.82
		185.45	212.97

15 Equity share capital

	As at 31 March, 2021 As at 31 March,2020
	No. of shares (Rs. / lakh) No. of shares (Rs. / lakh)
Authorised shares Equity shares of Rs. 2 each 3,50,00,000 700.00 3,50,00,000 700.00 Issued, subscribed and fully paid-up shares Equity shares of Rs. 2 each fully paid up 2,62,50,000 525.00 2,62,50,000 525.00

Notes:

• a. Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting year

	As at 31	March, 2021	As at 31	March,2020
	No. of shares	(Rs. / lakh)	No. of shares	(Rs. / lakh)
Equity shares
At the beginning of the year	2,62,50,000	525.00	2,62,50,000	525.00
Movement during the year	-	-	-	-
Outstanding at the end of the year	2,62,50,000	525.00	2,62,50,000	525.00

b. Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

c.

Detail of shareholders holding more than 5% shares

	As at 31	March, 2021	As at 31	March,2020
	No. of shares	% Holding	No. of shares	% Holding
Equity shares of Rs. 2 each fully paid
i. Mrs. Jeet Khemka	87,60,005	33.37%	87,65,005	33.39%
ii. Khemka Aviation Private Limited	62,72,325	23.89%	62,72,325	23.89%

81

16 Other equity

		As at	As at
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
i.	Capital reserve
	a. Proft on re-issue of forfeited shares	0.29	0.29
		0.29	0.29
ii.	Securities premium	450.00	450.00
iii.	General reserve	1,148.80	1,148.80
iv.	Retained earnings
	Balance at the beginning of year	16,454.74	16,360.42
	Proft for the year	276.06	1,328.10
	Final dividend (amount per share Rs. Nil, previous year Rs. 1.50)	-	(393.75)
	Interim dividend (amount per share Re.0.90, previous year Rs. 2.40)	(236.25)	(630.00)
	Tax on dividends	(0.87)	(210.03)
	Balance at the end of year	16,493.68	16,454.74
v.	Other comprehensive income
	Balance at the beginning of year	72.13	540.55
	Gain/(loss) on change in fair valuation of equity instruments	893.61	(482.63)
	Gain/(loss) on sale of equity and equity related instruments	207.07	(13.86)
	Re-measument gain on defned beneft obligations (net)	(13.08)	14.36
	Income tax relating to items that will not be reclassifed to proft or loss	0.20	6.54
	Deferred tax	(58.81)	7.17
	Balance at the end of year	1,101.12	72.13
	Total other equity	19,193.89	18,125.96

Notes

(i) Capital reserve

Capital reserve represents the amount on account of forfeiture of equity shares of the Company.

(ii) Securities premium

Securities Premium represents amount received on issue of shares in excess of the par value.

(iii) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. Central cash subsidy amounting to Rs. 30 lakh received for the installation of plant at Nalagarh in 2006 is included in general reserve.

However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

(iv) Retained earnings

Retained earnings represent the amount of accumulated earnings of the Company.

(v) Other comprehensive income

It comprises amounts that will not be re-classifed to profit & loss and are eligible to be re-classified in retained earning.

82

17 Deferred tax liabilities (Net)

				As at	As at
				31 March, 2021	31 March, 2020
				(Rs. / lakh)	(Rs. / lakh)
	Deferred tax liabilities			361.29	311.03
	Deferred tax assets			(78.20)	(62.30)
				283.09	248.73
		Opening Balance	Recognised in Proft and loss	Recognised in other	Closing balance
				comprehensive
				Income
		(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
	As at 31 March, 2021
	Deferred tax (assets) / liabilities in
	relation to :
	Property, plant and equipment &	235.51	(16.63)	-	218.88
	other intangible assets
	Fair value change in investments	75.52	8.08	58.81	142.41
	Provisions for doubtful debts	(20.61)	(5.62)	-	(26.23)
	Provision for employee benefts	(24.18)	(10.22)	-	(34.40)
	Tax impact of expenses chargeable	(17.51)	(0.06)	-	(17.57)
	in the fnancial statements but
	allowable under the Income Tax
	Act, 1961 in future years
	Net Deferred (assets) / liabilities	248.73	(24.45)	58.81	283.09
	As at 31 March 2020
	Deferred tax (assets) / liabilities in
	relation to :
	Property, plant and equipment &	306.96	(71.45)	-	235.51
	other intangible assets
	Fair value change in investments	101.22	(18.53)	(7.17)	75.52
	Provisions for doubtful debts	(12.24)	(8.37)	-	(20.61)
	Provision for employee benefts	(24.30)	0.12	-	(24.18)
	Tax impact of expenses	(17.19)	(0.32)	-	(17.51)
	chargeable in the fnancial
	statements but allowable under
	the Income Tax Act, 1961 in future
	years
	Net Deferred (assets) / liabilities	354.45	(98.55)	(7.17)	248.73
18	Tradepayables
				As at	As at
				31 March, 2021	31 March, 2020
				(Rs. / lakh)	(Rs. / lakh)
	Total outstanding dues of micro enterprises and small		enterprises (refer note 37)	44.54	361.79
	Total outstanding dues of creditors other than micro enterprises and small			1,476.10	1,186.58
	enterprises
				1,520.64	1,548.37

83

19 Other financial liabilities

Other fnancial liabilities
	As at	As at
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Current
Unpaid dividend (refer note below)	55.29	56.82
Payable towards capital goods	23.82	7.24
Retention money and security deposits	235.60	217.75
Interest on sales tax/gst payable	5.20	5.20
Interest payable on security deposits	14.48	14.78
Other payables	-	3.89
	334.39	305.68

Note:

Unpaid dividend is credited to Investor Education and Protection Fund as and when due.

20 Provisions

Provisions
	Non - Current		Current
	As at	As at	As at	As at
	31 March, 2021	31 March, 2020	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
Provision for employee benefts
Provision for gratuity	-	-	24.70	-
Provision for leave encashment	87.92	69.15	24.08	26.94
	87.92	69.15	48.78	26.94

21 Other liabilities

Other liabilities
	Non - Current		Current
	As at	As at	As at	As at
	31 March, 2021	31 March, 2020	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
Advances from customers	-	-	23.98	23.90
Others statutory dues payables (refer note	-	-	155.56	120.89
below)
Other payables	-	-	45.94	36.99
	-	-	225.48	181.78

Note:

Others statutory dues majorly comprises of GST and TDS.

22 Revenue from operations

Revenue from operations
	Year ended	Year ended
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Sale of products:
Manufactured goods	16,892.62	18,582.02
Traded goods	43.97	29.00
	16,936.59	18,611.02
Less: Rebates and claims	2.83	6.73
	16,933.76	18,604.29
Sale of services	14.53	24.76
Other operating revenue:
Scrap sales	30.35	43.82
Export benefts	5.79	4.52
Revenue from operations	16,984.43	18,677.39

84

23 Other income

23	Other income
		Year ended		Year ended
		31 March, 2021		31 March, 2020
		(Rs. / lakh)		(Rs. / lakh)
	Interest income earned on fnancial asset recognised at amortised cost :
	- Bank deposits		11.18	12.17
	- Investment in debt instruments		23.20	26.09
	- Other fnancial assets		21.97	10.87
	Dividend income :
	- Dividend from investments valued at FVTPL		-	0.23
	- Dividend from investments valued at OCI		186.18	244.61
	- Dividend from investments valued at amortised cost		-	41.10
	Gain/(loss) on disposal of debt instruments at FVTPL		28.69	14.86
	Gain on disposal of property, plant and equipment		-	2.64
	Gain/(loss) arising on fnancial assets designated through FVTPL		121.22	95.94
	Gain on foreign exchange fuctuations (net)		-	4.86
	Provision for doubtful advance written back		-	0.17
	Provision /Liabilities no longer required written back		4.89	0.03
	Other non-operating income		6.49	4.04
			403.82	457.61
24	Cost of materials consumed
		Year ended		Year ended
		31 March, 2021		31 March, 2020
		(Rs. / lakh)		(Rs. / lakh)
	Inventory at the beginning of the year		637.65	1,289.93
	Add : Purchases	10,622.65		11,984.95
	Less : Inventory at the end of the year		1,206.94	637.65
	Cost of materials consumed	10,053.36		12,637.23
25	Changes in inventories of fnished goods, stock-in-trade and work in	progress

	Year ended	Year ended
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Inventories at the end of the year
Traded goods	22.99	21.02
Work-in-progress	251.15	273.15
Finished goods	1,988.16	2,645.24
	2,262.30	2,939.41
Inventories at the beginning of the year
Traded goods	21.02	21.71
Work-in-progress	273.15	227.64
Finished Goods	2,645.24	2,149.27
	2,939.41	2,398.62
(Increase)/decrease in inventories	677.11	(540.79)
Insurance claim due to goods destroyed by fre or during transit	3.61	5.35
	673.50	(546.14)

85

26	Employee benefts expense
		Year ended	Year ended
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
	Salaries, wages and bonus	1,923.02	1,880.33
	Contribution to provident and other funds	107.97	115.08
	Gratuity expense (refer note 38)	35.91	33.07
	Staf welfare expenses	28.35	31.33
		2,095.25	2,059.81
27	Depreciation and amortisation expense
		Year ended	Year ended
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
	Depreciation of property, plant and equipment	317.43	362.45
	Amortisation of intangible assets	11.12	11.87
		328.55	374.32
28	Finance costs
		Year ended	Year ended
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
	Interest expense	20.23	20.00
	Other borrowing costs	6.35	5.00
		26.58	25.00
29	Other expenses

Other expenses
	Year ended	Year ended
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Consumption of stores and spare parts	50.60	55.77
Packing expenses	234.89	224.46
Power and fuel	390.52	448.29
Repairs and maintenance:
-Plant & machinery	62.26	85.77
-Buildings	21.32	15.17
-Others	44.46	64.70
Rent (refer note 35)	193.39	195.95
Rates and taxes	13.57	11.98
Insurance	63.12	66.50
Travelling and conveyance	102.68	235.31
Communication costs	33.99	29.67
Printing and stationery	9.02	12.52
Legal and professional fees	261.29	245.72
Payments to statutory auditors (refer details below)	29.05	24.71
Freight and forwarding charges	525.44	638.84
Provision for doubtful debts	22.32	39.86
Vehicle running and maintenance	11.43	19.05
Loss on disposal/discard of property, plant and equipment	10.37	-
Security and other service charges	75.85	69.35
Loss on foreign exchange fuctuation	0.55	-
Service charges to C and F agents	72.52	77.38
Advertisement and sales promotion	130.14	83.43

86

29 Other expenses

contn...

Other expenses contn...
	Year ended	Year ended
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Bad debt written of	1.36	1.36
Commission on sales	34.77	63.51
Bank charges	15.93	12.80
Donation	1.00	0.08
CSR expenditure (refer note 41)	35.62	57.39
Miscellaneous expenses	54.47	117.51
	2,501.93	2,897.08
Payments to statutory auditor
As auditor:
Audit fees	19.28	20.75
Tax audit fees	2.72	3.00
Certifcation	0.50	0.30
GST Audit fees	6.00	-
Reimbursement of expenses	0.55	0.66
	29.05	24.71

30 Earnings per equity share

Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. The Company did not have any potentially dilutive securities in any of the years presented.

	Year ended	Year ended
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Net proft as per statement of proft and loss	276.06	1,328.10
No. of equity shares at the beginning and closing of the year	2,62,50,000	2,62,50,000
Weighted average number of equity shares for calculating basic and	2,62,50,000	2,62,50,000
diluted EPS
Basic and Diluted earnings per share (Rs.)	1.05	5.06
[Nominal value of shares Rs.2 ]

31 Segment Information

The Operating Segment has been reported in a manner consistent with the internal reporting provided to the Chief Financial Officer and the Chief Executive Officer who are the Chief Operating Decision Maker (CODM).The Company is engaged in the manufacturing of the Precured Tread Rubber, Bonding Repair and Extrusion Gum and Rubber Cement, which are used for retreading of tyres and providing tyre retreading service. These products do not have any different risk and returns and thus the CODM performs review based on one operating segment.

32 Income Taxes Expenses

Amount recognised in profit and loss

32	Income Taxes Expenses Amount recognised inproft and loss
		Year ended	Year ended
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
A)	Income taxes
	Current tax
	For current year	103.04	437.14
	Income tax adjustment for earlier year	(2.06)	4.96
		100.98	442.10

87

32 Income Taxes Expenses contn... Amount recognised in profit and loss

B)

Income Taxes Expenses Amount recognised inproft and loss contn...
	Year ended	Year ended
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Deferred tax
In respect of the current year (refer note 17)	(24.45)	(98.55)
	(24.45)	(98.55)
Income tax expense recognised in the statement of proft and loss (i)	76.53	343.55
Other comprehensive income section
Income tax relating to items that will not be reclassifed to proft or loss
a. Current tax	(0.20)	(6.54)
b. Deferred tax	58.81	(7.17)
	58.61	(13.71)
	135.14	329.84
Tax adjustment for earlier years (calculated for efective tax rates) (ii)	(2.06)	4.96
Net Efective Tax recognised in statement of proft and loss in respect	78.59	338.59
of current year (i - ii)
Reconciliation of Efective Tax Rate:
Proft before tax	352.59	1,671.65
Applicable tax rate	25.17%	25.17%
Calculated income tax expense	88.74	420.72
Tax efect of:
a. Income not taxable as per applicable tax laws	(4.80)	(39.17)
b. Non-deductible expenses	9.24	9.79
c. Income Taxable at diferent rate/change in tax rate	(14.59)	(52.75)
Income tax expense as per statement of proft and loss Efective tax rate	78.59 21.71%	338.59 20.55%

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred taxes 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.

88

• 33 Related party disclosures

• 33.1 Name and relationships of related-parties:

• a. Subsidiary Company

  • i. SUN - AMP Solar India Private Limited

• b. Step - down Subsidiary Company

  • i. Samyama Jyothi Solar Energy Private Limited

• c. Joint Venture Company

  • i. Sun Mobility EV Infra Private Limited (Formerly known as Alberieth EV Services Private Limited)

• d. Key management personnel

  • i. Mr. Nand Khemka (Chairman cum Managing Director)

  • ii. Mr. Shiv Vikram Khemka (Non Executive Director)

  • iii. Mr. Uday Harsh Khemka (Non Executive Director)

  • iv. Mr. K.K. Kapur (CEO and Whole Time Director)

  • v. Mr. J.K Jain (CFO) upto September 24, 2020

  • vi Mr Anil Bhardwaj [GM (Accounts) & CFO] w.e.f February 17, 2021

  • vii. Mrs. Manali D. Bijlani (CS)

  • viii. Ms. Bindu Saxena (Independent Director)

  • ix. Mr. R Parameswar (Independent Director)

  • x. Mr. P.R. Khanna (Independent Director)

  • xi. Mr. Harjiv Singh (Independent Director)

• e. Relatives of key management personnel

  • i. Mrs. Jeet Khemka, wife of Mr. Nand Khemka

  • ii. Mrs. Urvashi Khemka, wife of Mr. Shiv Vikram Khemka

  • iii. Mrs. Nitya Mohan Khemka, wife of Mr. Uday Harsh Khemka

• f. Enterprises owned or significantly influenced by key management personnel or their relatives (either individually or with others)

  • i. Unipatch Rubber Limited

  • ii. Khemka Aviation Private Limited

  • iii. Nand and Jeet Khemka Foundation

  • iv. Sun Securities Limited

  • v. Sun London Limited

  • vi. Youth Reach

  • vii. SRL 142 Holdings Limited

  • viii. The Nabha Foundation

  • ix. Hooghly Holdings Private Limited

  • x. M P Flour Mills Private Limited

89

2

Related party transactions:

33.2 The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis:

• 1 Enterprises owned or significantly influenced by key management personnel or their relatives (either individually or with others)

ed party transactions: The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)	ed party transactions: The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)	ed party transactions: The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)	ed party transactions: The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)	ed party transactions: The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)	ed party transactions: The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)	ed party transactions: The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)
(Rs. / lakh)
Particulars	Year ended		Year ended		Year ended
	31 March 2021	31 March 2020	31 March 2021	31 March 2020	31 March 2021	31 March 2020
Name ofparties:	Sale ofgoods		Purchase ofgoods		Rentpaid
- Unipatch Rubber Limited	129.72	158.91	3.81	0.90	-	-
- Khemka Aviation Private Limited	-	-	-	-	83.25	90.80
- HooghlyHoldings Private Limited	-	-	-	-	43.29	31.20
Name of parties:	Reimbursement of expenses received		Dividend paid		CSR expenditure
- Unipatch Rubber Limited	-	-	10.69	46.31	-	-
- Khemka Aviation Private Limited	0.62	1.47	56.45	244.62	-	-
- Nand and Jeet Khemka Foundation	0.49	0.71	-	-	-	-
- The Nabha Foundation	-	-	-	-	22.00	40.00
- Youth Reach	0.27	0.92	-	-	8.00	13.00
- Others	-	-	4.62	20.01	-	-
Name of parties: Reimbursement of expensespaid Sale of services - Khemka Aviation Private limited 1.32 1.61 - - - HooghlyHoldings Private Limited 5.48 1.69 - - - Unipatch Rubber Limited - - - 4.93 - M P Flour Mills Private Limited 0.11 - - -
Name of parties:	Reimbursement of expensespaid		Sale of services
- Khemka Aviation Private limited	1.32	1.61	-	-
- HooghlyHoldings Private Limited	5.48	1.69	-	-
- Unipatch Rubber Limited	-	-	-	4.93
- M P Flour Mills Private Limited	0.11	-	-	-

Joint Venture Company

3

- M P Flour Mills Private Limited Joint Venture Company	0.11 -	0.11 -
Name of parties:	Conversion from optionally convertible redeemable preference shares to equity shares
Sun MobilityEV Infra Private Limited	-	140.00
Relatives of Key managementpersonnel
Particulars	Year ended
	31 March 2021	31 March 2020
Name ofparties:	Dividendpaid
- Mrs. Jeet Khemka	78.89	341.84
- Mrs. Urvashi Khemka (Joint holder with Mr. Shiv Vikram Khemka)	11.26	48.78

Key management personnel

Key management personnel
Particulars	Year ended		Year ended		Year ended
	31 March 2021	31 March 2020	31 March 2021	31 March 2020	31 March 2021	31 March 2020
Name ofparties:	Remuneration		Sitting fees		Dividendpaid
- Mr. Nand Khemka	78.75	91.77	-	-	0.17	0.72
- Mr. Uday Harsh Khemka (Joint holder with Mrs. Nitya Mohan Khemka)	-	-	-	-	11.26	48.78
- Mr. K.K. Kapur	78.97	91.77	-	-	-	-
- Mr. J.K Jain*	40.47	45.63	-	-	-	-

4

90

3

4

Particulars	Year ended	Year ended	Year ended	Year ended	Year ended	Year ended
	31 March 2021	31 March 2020	31 March 2021	31 March 2020	31 March 2021	31 March 2020
Name ofparties:	Remuneration		Sitting fees		Dividendpaid
- Mrs. Manali D Bijlani	24.76	23.92	-	-	-	-
- Mr. Anil Bhardwaj	4.29	-	-	-	-	-
- Ms. Bindu Saxena	3.10	3.30	7.10	4.90	-	-
- Mr. P.R. Khanna	6.15	6.80	10.10	5.90	-	-
- Mr. R. Parameswar	6.15	6.80	10.90	7.70	-	-
- Mr. Harjiv Singh	2.15	1.45	6.50	2.50	-	-

*includes gratuity payment of Rs 17.78 Lakhs and leave encashment of Rs 0.99 lakhs for March 31, 2021 Remueration do not include provisions for encashable leave and gratuity, as separate actuarial valuation are not available.

Related party transactions

Balances outstanding at year end :

Related party transactions Balances outstanding at year end :	Related party transactions Balances outstanding at year end :	Related party transactions Balances outstanding at year end :	Related party transactions Balances outstanding at year end :
(Rs. / lakh) Particulars As at As at 31 March 2021 31 March 2020 1 Subsidiary Company Name ofparties: Investment in equity shares -SUN AMP Solar India Private Limited 295.35 295.35 2 Joint Venture Company Name ofparties: Investment in equity shares - Sun MobilityEV Infra Private Limited 150.00 150.00 Name of parties: Investment in optionally convertible redeemable preference shares - Sun MobilityEV Infra Private Limited 1,200.00* 1,200.00	(Rs. / lakh)
	Particulars	As at	As at
		31 March 2021	31 March 2020
	Name ofparties:	Investment in equity shares
	- Sun MobilityEV Infra Private Limited	150.00	150.00
	Name of parties:	Investment in optionally convertible redeemable preference shares
	- Sun MobilityEV Infra Private Limited	1,200.00	1,200.00

Key management personnel

- Sun MobilityEV Infra Private Limited Key management personnel	1,200.00 1,200.00	1,200.00 1,200.00
Name ofparties:	Remuneration
- Mr. Nand Khemka	-	11.94
- Mr. K.K. Kapur	-	2.67
- Ms. Bindu Saxena	3.10	3.30
- Mr. P.R. Khanna	6.15	6.80
- Mr. R. Parameswar	6.15	6.80
- Mr. Harjiv Singh	2.15	1.45

Enterprises owned or significantly influenced by key management personnel or their relatives (either individually or with others)

or with others)
Name ofparties:	Tradepayables
- Khemka Aviation Private Limited	0.92	8.04
- HooghlyHoldings Private Limited	8.14	-
Name of parties:	Trade receivable
- Unipatch Rubber Limited	0.02	26.26

* On 16th October, 2020, Non- material Subsidiary Company, Sun Amp Solar India Pvt. Ltd. (Sun Amp) and step down subsidiary Samyama Jyothi Solar Energy Pvt. Ltd. (Samyama Jyothi) have signed the Share Purchase Agreement (SPA), for the sale of Sun Amp’s investment in equity shares of Samyama Jyothi to an independent purchaser. As per SPA, there are few Conditions Precedent to closing, which need to be fulfilled by the Subsidiary company to the satisfaction of the Purchaser.

91

• 33.3 The Company had taken approval of the shareholders through Postal Ballot on February 22, 2019 to build maintenance, repair and overhaul facility (MRO) at Bhiwadi in two phases costing about Rs. 3000 Lakhs to be leased to a related party (Elcom Systems Pvt. Ltd.). The Company has incurred Rs. 1868.52 Lakhs till 31st March, 2021, against estimated cost of Rs. 2300 Lakhs for Phase-I. The Lease Agreement executed on October 22, 2020 for a period of 9 years and 6 months on monthly rent of Rs. 36 p.s.f. with an increase of 12% after every three years, was taken on record in the Board Meeting held on November 10, 2020 and addendum to the agreement on May 8, 2021. Since construction of the MRO facility got delayed, mainly due to Covid-19 pandemic, the lease will commence on completion of the facility. The lease period will remain unchanged for 9 years and 6 months.

34 Capital commitments

		As at	As at
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
a.	Estimated amount of contracts remaining to be executed	343.44	1,264.51
	on capital account and not provided for [net of advances of
	Rs.223.76 lakh (As at 31 March, 2020 Rs.204.44 Lakh)]

35 Leases

a The Company has taken premises under lease agreements for various purposes. These are generally short term leases not involving right to use assets as defined in Ind AS 116. The amount of rent paid for leased premises amounts to Rs. 193.39 lakhs (previous year Rs. 195.95 lakhs) recognised in statement of profit & loss.

The company has hired buildings for corporate office, lease hold land and warehouses at some of the places. Either the lease period is less than 12 months or the rent involved is not material.

• b Transition to Ind AS 116 - Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment Rules, has notified Ind AS 116 Leases which replaces the existing lease standard, Ind AS 17 Leases, and other interpretations. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors.

36 Contingent liabilities

(a) Claims against the Company not acknowledged as debt

		As at	As at
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
i.	The Company is under litigation with the revenue authorities	159.15	159.15
	regarding expenditure claimed by the Company arising out of an
	arbitration award. As per the Company, the expenditure should
	be allowed in the year the arbitrator has passed the award. The
	department is of the view that the liability is not accrued till the
	award becomes a rule of court and has therefore disallowed the
	expenditure in the AY 1998-99. During the fnancial year 2006-
	2007, the Company had received a demand notice from Income tax
	authorities pursuant to the order by Income Tax Appellate Tribunal,
	Delhi. The Company is presently in appeal before the Hon’ble Delhi
	High Court. The Company has deposited Rs. 20.00 Lakh against the
	demand which is included under note no. 8.
ii.	In respect of the assessment year 2017-18, the Assessing Ofcer	20.50	20.50
	has disallowed expenditure of Rs.57.66 lakh and also made
	additions amounting to Rs.1.58 lakh under Income Tax Act. The Company has fled an appeal before CIT (Appeals) against the order of the Assessing Ofcer and the proceedings are in progress. The
	Company has deposited a sum of Rs.4.11 Lakh against the demand
	which is included under note no.8.
iii.	In respect of the assessment year 2018-19, the Assessing Ofcer has disallowed expenditure of Rs.33.28 lakh.The Company has fled	10.11	-
	an appeal on 13th April 2021 before CIT (Appeals) against the order of the Assessing Ofcer and deposited Rs 2.03 lakh under protest.

92

36 Contingent liabilities contn...

(a) Claims against the Company not acknowledged as debt

		As at	As at
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
iv.	Pending labour cases, being disputed by the Company.	10.81	10.81
v.	Demand raised by the Sales Tax Authorities, being disputed by the	32.43	31.11
	Company.
vi.	Entry tax demand, being disputed by the Company.	-	1244.68
vii.	Input Credit claimed by the Company but not allowed by the GST	287.61	-
	department.
	Total	520.61	1,466.25

The amount assessed as contingent liability does not include interest (except in demand raised by the sales tax authorities) that could be claimed by the counter parties.

Based on expert opinions, the management believes that the Company has a strong chance of success in the above mentioned cases and hence no provision is considered necessary in respect of the disputed amounts detailed above.

• 36 (b) The Company has opted for the Himachal Pradesh (Legacy Cases Resolution) Scheme, 2019 on January 21, 2021 for settlement of Entry Tax matter of earlier years which was pending decision before Honorable High Court of Himachal Pradesh. Accordingly, an amount of Rs 1,244.68 lakhs which was treated as a contingent liability till the previous year ended 31 March 2020 and settlement fee of Rs. 79.34 lakhs has been charged off as expense and treated Rs. 1324.02 lakhs as exceptional item in the statement of profit and loss in financial statement for the year ended 31st March 2021 of standalone financial statements.

37 Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act, 2006”)

	As at	As at
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Principal amount remaining unpaid to any supplier at the end of each accounting
year
- Trade payables	44.54	361.79
- Payable for capital creditors	3.70	-
Interest due on above.	-	-
Amount of interest paid by the Company to the suppliers in terms of section 16	-	-
of the Act.
Amount paid to the suppliers beyond the respective due date.	-	-
Amount of interest due and payable for the period of delay in payments (which	-	-
have been paid but beyond the due date during the year) but without adding the
interest specifed under the Act.
Amount of interest accrued and remaining unpaid at the end of each accounting	-	-
year.
Amount of further interest remaining due and payable even in the succeeding	-	-
years, until such date when the interest dues as above are actually paid to the
small enterprise, for the purpose of disallowance as a deductible expenditure
under section 23 of this Act.

Dues to micro and small enterprise have been determined to the extend such parties have been identified on the basic of information collected by the management.

93

38 Employee benefit plans

a. Defined contribution plans

The Company makes contribution to Provident Fund and Employee State Insurance Scheme which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Company also contributes towards provident fund at the rate prescribed under EPFO Scheme to a provident fund trust for some of the senior staff members. All provident fund contributions are charged to the statement of profit and loss.

b. Defined benefit plan

Gratuity

The Company has a defined benefit gratuity plan. Employee who have completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The most recent valuation of the present value of defined benefit obligation was carried as at 31 March, 2021 in which 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 principal assumptions used for the purposes of the actuarial valuations were as follows:

	Valuation as at	Valuation as at
	31 March, 2021	31 March,2020
Expected rate of return	7.27%	7.65%
Discount rate(%)	6.80%	6.77%
Expected rate(s)of salaryincrease	7.00%	7.00%
Mortality rates inclusive of provision for disability	100% of IALM (2012-14)	100% of IALM (2012-14)
Retirement Age(Years)	58/70	58/70
Withdrawal Rate(%) (Ages)
Upto 30years	3.00%	3.00%
From 31 to 44years	2.00%	2.00%
Above 44years	1.00%	1.00%
Year ended Year ended 31 March, 2021 31 March, 2020 (Rs. / lakh) (Rs. / lakh)
Service cost: Total service cost 36.04 34.41 Net interest expenses (0.13) (1.34) Components of defned beneft costs recognised in proft or loss 35.91 33.07 Remeasurement on the net defned beneft liability Acturial gain/(loss) on plan assets (2.74) (0.16) Actuarial gain/(loss) from change in demographic assumptions - - Actuarial gain/(loss) from change in fnancial assumptions 1.04 4.09 Actuarial gain/(loss) from change in experience adjustment (11.38) 10.43 Components of defned beneft costs recognised in other comprehensive income (13.08) 14.36

Notes:

i. The current service cost and the net interest expenses for the year are included in the ‘Employee benefits expense’ line item in the Statement of profit and loss.

• ii. The remeasurement of the net defined liability is included in other comprehensive income.

94

The amounts included in the balance sheet arising from the Company’s obligation in respect of defined benefit plans is as follows:

ns is as follows:
	As at	As at
	31 March, 2021	31 March, 2020
	Rs. / Lakh	Rs. / Lakh
Present value of defned beneft obligation
Non-current	-	-
Current	24.70	(1.88)
	24.70	(1.88)

Movement in the present value of the defined benefit obligation and fair value of the plan assets are as

follows:

• A Present value of the defined benefit obligation

follows: Present value of the defned beneft obligation
	Year ended	Year ended
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Opening defned beneft obligation	350.67	317.73
Current service cost	36.04	34.41
Interest cost	23.74	24.24
Past service cost including curtailment gains/losses	-	-
Actuarial (gain)/loss on obligation	10.34	(14.52)
Benefts paid	(64.51)	(11.19)
Closing defned beneft obligation	356.28	350.67

• B Fair value of the plan assets

B	Fair value of the plan assets
C	Year ended Year ended 31 March, 2021 31 March, 2020 (Rs. / lakh) (Rs. / lakh)
	Opening fair value of plan assets 352.55 335.27 Return on plan assets (excluding amount included in net interest expense) 23.87 25.58 Remeasurement gain/(loss) (2.74) (0.16) Contributions from the employer 22.41 3.05 Benefts paid (64.51) (11.19) Closing fair value of plan assets 331.58 352.55 Net liability/(asset) (A-B) 24.70 (1.88) The fair value of the plan assets are as follows Fund managed by insurer 331.58 352.55

The company has invested fund in LIC of India (“insurer”). The future information of fund investments are not available with the Company.

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. Sensitivity analysis:

If the expected salary growth and discount rate increases /(decreases) by 0.50%, the defined benefit obligation would change as:

	As at 31 March 2021	As at 31 March 2021	As at 31 March 2020	As at 31 March 2020
	Increase by 0.50%	Decrease by 0.50%	Increase by 0.50%	Decrease by 0.50%
	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
Discount rate	(16.79)	18.25	(15.87)	17.22
Salary growth rate	17.37	(16.45)	16.47	(15.30)

Notes

i. Sensitivities due to mortality and withdrawals are not material and hence impact of change not calculated.

ii. Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of the defined benefit obligation by 0.50 percentage, keeping all other actuarial assumptions constant.

95

39 Financial instruments

A. Capital Management

Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Company’s capital management is to safeguard its ability to continue as going concern and to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. No changes were made in the objectives, policies or processes for managing capital except for budgeting for cash flow projections considering the impact of ongoing pandemic COVID - 19.

• B. Categories of financial instruments

			As at	As at
			31 March, 2021	31 March, 2020
			(Rs. / lakh)	(Rs. / lakh)
Financial assets
i)	Measured at fair value through proft or loss
	a.	Investments
		- non current	2,661.40	1,369.38
		- current	732.12	534.89
ii)	Measured at amortised cost
	a.	Non current investments	299.86	772.40
	b.	Loans
		- non current	1.48	0.53
		- current	17.57	17.57
	c.	Trade receivables	2,945.97	3,721.42
	d.	Cash and cash equivalents	174.32	105.41
	e.	Other bank balances	185.45	212.97
	f.	Other fnancial assets
		- non current	101.34	61.81
		- current	152.59	544.13
**iii) **	Measured at fair value through other comprehensive income
	a.	Non current investments	4,124.56	3,919.80
**iv) **	Measured at cost
	a.	Non current investments	1,645.35	1,645.35
Financial liabilities
	a.	Trade payables	1,520.64	1,548.37
	b.	Other fnancial liabilities	334.39	305.68

C. Financial risk

In the course of its business, the Company is exposed primarily to fluctuations in Interest rates, security price risk, credit risk and liquidity risk which may adversely impact the fair value of its financial instruments, the operation of the Company did not have an exposure for foreign currency exchange rates as the majority of the operations are in India only. The Company has a risk management policy covering risks associated with the financial assets and liabilities such as interest rate risk, security price risk and credit risk. The risk management policy has been approved by the board of directors. The risk management framework aims to:

• Create a stable business planning environment by reducing the impact of interest rate fluctuations on the Company’s business plan.

• Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

The Company does not use the derivative financial instruments for risk mitigation.

a. Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the foreign currency exchange rates, interest rates, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

96

i. Foreign currency exchange rate risk

The Company operates majorly in India but is exposed to foreign exchange risk arising through its sale and purchase of goods and services with overseas suppliers and investment in foreign currency transactions primarily with respect to US Dollar (‘USD’). The Company does not use the derivative financial instruments to manage it’s risk.

The Company has exposure in US dollars only as per details given below:

Particulars	Receivables -	Cash in	Payable - Trade	Investments
	Trade Receivables	Hand	Payables
	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
As at 31 March, 2021	85.83	-	-	1,617.10
As at 31 March, 2020	60.28	-	-	1,383.43

ii. The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the year are as follows:

Particulars	USD
	(Rs. / lakh)
As at 31 March, 2021
Assets	1,702.93
Liabilities	-
As at 31 March, 2020
Assets	1,443.71
Liabilities	-

iii. Interest rate risk

Financial liabilities

The company is virtually debt free and the exposure to Interest Rate risk from the perspective of financial liabilities is negligible. Further, treasury activities focus on managing investments and debt instruments and are administered under a set of approved policies guided by safety, liquidity and returns.

Financial assets

The Company’s investments are primarily in fixed rate interest bearing investments. Hence the Company is not significantly exposed to interest rate risk.

b. Security price risk

The Company is exposed to equity price risks arising from equity investments held by the Company and classified in the balance sheet as fair value through OCI.

i. Equity price sensitivity analysis

The sensitivity analysis below has been determined based on the exposure to equity price risks at the end of the year.

If the equity instruments (equity shares and equity linked mutual fund) prices had been 5% higher / lower. Other comprehensive income for the year ended 31 March 2021 would increase / decrease by Rs. 206.23 Lakh (for the year ended 31 March 2020: increase / decrease by Rs. 195.99 lakh) as a result of the change in fair value of equity investment measured at FVTOCI.

ii. Exposure in mutual funds (Other than equity linked mutual fund)

The Company manages the surplus funds majorly through investments in debt based mutual fund schemes. The price of investment in these mutual fund schemes is reflected though Net Asset Value (NAV) declared by the Asset Management Company on daily basis as reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investments.

Mutual fund price sensitivity analysis - The sensitivity analysis below have been determined based on Mutual Fund Investment at the end of the year.

If NAV has been 1% higher / lower: Profit for the year ended 31 March 2021 would increase / decrease by Rs. 33.94 lakh (for the year ended 31 March 2020 by Rs. 19.04 Lakh) as a result of the changes in fair value of mutual fund investments.

97

• iii. If the tax free bonds and investment in preference shares prices had been 1% higher / lower: Profit for the year year ended 31 March 2021 would increase / decrease by Rs. 3 Lakh (for the year ended 31 March 2020: increase / decrease by Rs. 7.72 Lakh) as a result of the change if there is no change in the market risk and other assumptions.

c. Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle it’s obligations. To manage trade receivables, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and ageing of such receivables.

Financial instruments that are subject to credit risk, principally consist of investments, trade receivables and loans and advances. None of the financial instruments of the Company carry material concentration of credit risks. Financial assets for which loss allowance is measured relates to trade receivables where loss allowance at the year end was estimated at Rs. 104.21 lakh (Previous year Rs. 81.89 lakh).

Other than financial assets mentioned above, none of the Company’s financial assets are either impaired or past due, and there are no indications that defaults in payment obligations would occur as exposure to Trade Receivable is diversified. There is no single customer whose sales are exceeding 10% of the turnover of the Company.

d. Liquidity risk

Liquidity risk refers to the risk that the Company can not meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per the requirements.

During the year, the Company generated sufficient cash flows from operations to meet its financial obligations as and when they fall due.

The table below provides details regarding the contractual maturities of significant financial liabilities as at: Contractual maturities of financial liabilities

	less than 1 year	1 to 5 year	more than 5 year	Total
	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
As at 31 March, 2021
Trade payables	1,520.64	-	-	1,520.64
Other fnancial liabilities	334.39	-	-	334.39
As at 31 March, 2020
Trade payables	1,548.37	-	-	1,548.37
Other fnancial liabilities	305.68	-	-	305.68

The Company has cash credit facility from banks of Rs. 400 Lakh (As at 31 March, 2020 Rs. 800 Lakh). However, the company has not utilised the same as on 31 March 2021 and 31 March 2020

• e. Unhedged Foreign currency exposures

Particulars Currency	As at 31 March 2021 As at 31 March 2020
	In foreign currency (in lakh) (Rs. / lakh) In foreign currency (in lakh) (Rs. / lakh)
Receivables -Trade Receivables USD 1.17 85.83 0.80 60.28

Fair value measurements

Financial assets and financial liabilities are measured at fair value at the end of each quarter/year. The information of the valuation techniques and the input used are as follows:

valuation techniques and the input used are as follows:
	Level	As at 31	As at 31
		March, 2021	March, 2020
		(Rs. / lakh)	(Rs. / lakh)
Measured at fair value through proft or loss
Investments
- non current	Level 2	2,661.40	1,369.38
- current	Level 2	732.12	534.89
Sub Total		3,393.52	1,904.27

40

98

		Level	As at 31	As at 31
			March, 2021	March, 2020
			(Rs. / lakh)	(Rs. / lakh)
Measured at fair value through other comprehensive income
Non	current investments
-	Investments in Equity shares(quoted)	Level 1	527.46	275.76
-	Investments in equity oriented mutual funds	Level 2	1,395.67	1,459.30
-	Investments in Capital venture fund (unquoted)	Level 3	327.82	544.80
-	Investment in Compulsory convertible preference shares (Unquoted)	Level 3	1,617.10	1,383.43
-	Investment in equity shares (Unquoted)	Level 3	256.51	256.51
	Sub Total		4,124.56	3,919.80
	Grand Total		7,518.08	5,824.07

Valuation technique

Level 1: Quoted prices in the active market. This level of hierarchy includes financial assets that are measured by reference to quoted prices in the active market.

Level 2: Valuation techniques with observable inputs. This level of hierarchy includes items measured using inputs other than quoted prices included within Level 1 that are observable for such items, either directly or indirectly.

Level 3: Valuation techniques with unobservable inputs. This level of hierarchy includes items measured using inputs that are not based on observable market data (unobservable inputs). Fair value determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data.

The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

• a. Investments in mutual funds: Fair value is determined by reference to the quotes of net asset value (NAV) declared by the financial instituitions.

• b. Quoted equity investments: Fair value is derived from quoted market prices in active markets.

• c. Unquoted investments: Fair value is derived on the basis of income approach, in this approach the discounted cash flow method is used to capture the present value of the expected future economic benefits to be derived from the ownership of these investments or from valuation declared by fund house.

Trade receivables, trade payables and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items as generally they are of short term nature. There has been no change in the valuation methodology for Level 3 inputs during the year.

Derivative contracts: The Company has not entered into any forward contracts and swaps to manage its exposure as the Company management expects that there are nominal exposure of the Company for foreign exchange and are manageable.

41 Details of Corporate Social Responsibility (CSR) expenditure

			Year ended	Year ended
			31 March, 2021	31 March, 2020
			(Rs. / lakh)	(Rs. / lakh)
a.	Gross amount required to be spent by the Company during the year		35.39	41.53
b.	Amount spent during the year on the following :
	i.	Construction/ acquisition of any asset	-	-
	ii.	On purposes other than (i) above	35.62	57.39
			35.62	57.39

As per section 135 of the Companies Act, 2013, amount required to be spent on CSR by the Company during the year is computed at 2% of its average net profit for the immediately preceding three financial years.

42 Disclosure required under Section 186(4) of the Companies Act, 2013

The Company has given loans only to staff members which as on 31.03.2021 amounted to Rs. 19.05 lakh (previous year Rs. 18.10 lakh). The investments made by the Company in various entities have been detailed in Notes 5 and 11.

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43 Estimation uncertainty relating to the global health pandemic COVID-I9

The Company has made assessment about the recoverability and carrying value of its assets comprising property, plant and equipment, investments, inventory and trade receivables taking into account the second wave on Covid-19 started in April 2021. Based on current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets. The situation is changing rapidly giving rise to inherent uncertainty around the extent and timing of the potential future impact of the COVID-19 which may be different from that estimated as at the date of approval of these standalone financial statements. The Company will continue to closely monitor any material changes arising of future economic conditions and impact on its business.

44 Events after the reporting period

There were no events after the reporting date that could have a material effect on the financial position of the Company as at 31 March 2021. The effect of spread of Covid-19 in the month of April 2021 has been disclosed in Note 43

45 Previous year figures

Previous year figures have been regrouped/reclassified, wherever necessary to conform to this year’s classification.

As per our report of even date

For and on behalf of the Board of Directors

For Khanna & Annadhanam Chartered Accountants ICAI Firm’s Registration No.: 001297N

B. J. Singh

Partner Membership No. 007884

Nand Khemka

Chairman cum Managing Director DIN : 00211084

K. K. Kapur

CEO and Whole Time Director DIN : 00745117

Place: New Delhi Date: May 8, 2021

Manali D Bijlani

Company Secretary

Anil Bhardwaj

GM (Accounts) & CFO

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CHARTERED ACCOUNTANTS

KHANNA & ANNADHANAM

706, AKASH DEEP, 26-A, BARAKHAMBA ROAD NEW DELHI - 110 001

INDEPENDENT AUDITOR’S REPORT

To The Members of Indag Rubber Limited

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of Indag Rubber Limited and its subsidiaries listed below:

To The Members of Indag Rubber Limited Report on the Audit of the Consolidated Financial Statements Opinion We have audited the consolidated fnancial statements of Indag Rubber Limited and its subsidiaries listed below:	To The Members of Indag Rubber Limited Report on the Audit of the Consolidated Financial Statements Opinion We have audited the consolidated fnancial statements of Indag Rubber Limited and its subsidiaries listed below:
Subsidiaries
1.	Sun Amp Solar India Private Limited
2.	Samyama Jyothi Solar Energy Private Limited
Jointly controlled entity
1.	Sun Mobility EV Infra Private Limited (Formerly known as Alberieth EV Services Private Limited)

Holding Company and its subsidiaries together referred to as “the Group”, which comprise the consolidated balance sheet as at 31 March 2021, and the consolidated statement of profit and loss (including other comprehensive income), consolidated statement of changes in equity and 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 (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 as at 31 March 2021, of its consolidated profit and other comprehensive income, consolidated changes in equity and 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 SAs 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 in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (‘ICAI’), and we have fulfilled our other ethical responsibilities in accordance with the provisions of the Act. 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 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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The key audit matters	How the matter was addressed in our audit
Investments
The company has long term investments in a subsidiary and a Joint Venture amounting to Rs. 1645.35 lakhs. These investments are carried at cost less provision for impairment loss if any. These long-term investments are tested for impairment periodically as changes in business environment, including due to the efect of second wave of Covid -19, could have signifcant impact on these investments which could result in impairment, requiring adjustment to their carrying amount. The calculation of impairment charge requires signifcant judgments of management with respect to determine recoverable amount of these investments.	Compared the carrying amount of investments with audited fnancial statements of investee companies to verify whether their net assets, being an approximation of their minimum recoverable amount, were in excess of their carrying amount;- Obtained and reviewed recoverable amount as determined by the management for each instrument; and - Verifed the method of determining recoverable amount and key assumptions used therein through historical information, approved budget, growth rate used to support revenue, discount rate and any other relevant information, as applicable.
The company has long term investment carried at fair value of Rs. 1617.10 lakhs (Cost Rs. 1202 lakhs) in SRL 142 Holdings Ltd., a related party, by way of fully paid up compulsorily convertible preference shares. SRL has interest in oil production and exploration Company in Nigeria. The oil industry is exposed signifcantly to macroeconomic factors such as commodity prices, currency fuctuations, interest rate risk political developments etc. The assessment of commercial viability and technical feasibility of exploration oil and gas is complex and includes a number of signifcant variables.	In the case of fair valuation of investments held in SRL 142 Holdings Limited, we tested the valuation prepared by the management with inputs from SRL, which included reference to estimated oil resources, market price of crude oil and gas prevailing in the international market, the rupee US Dollar exchange rate, assumptions as to future production of oil and gas, capital expenditure to be incurred, contracts entered into by the Nigerian Oil Company, the Country risk and regulatory frame work prevailing in Nigeria.
Inventories
The Company carries inventory of fnished goods, raw materials, work in progress valued at Rs. 3599.45 as at March 31, 2021. Such inventory is held at Nalagarh factories and warehouses in various cities in India as at the reporting date. Considering the number of locations and the level of inventory held at factory and warehouses, as well as the physical verifcation of inventory at these locations, the risk of existence of such inventory and the identifcation of non-moving, obsolete / damaged inventory and overall valuations is a signifcant area of audit. The inventory valuation also requires management estimates towards write down of inventory items to its net realizable value (wherever applicable) and allowance for slow moving or non-moving inventory. Considering the relative signifcance of the Inventory to the consolidated fnancial statements, we have considered the inventory as key audit matter.	● Our audit response in respect of testing the existence and valuation of inventory and allowance for slow / non-moving inventory and obsolescence consisted of following procedures: ● Procedures to test the existence of inventory relevant internal controls, including physical verifcation process that is performed annually by management at various locations and the testing of automated recording of sales and purchase transactions in the IT system. ● We observed the physical verifcation of inventory conducted by the management at Nalagarh Plant. Our procedures in this regard included: - Observing compliance of stock count instructions by management personnel; observing steps taken by management to ascertain the existence inventory on the date of the count (including identifcation of non-moving, obsolete / damaged inventory); We performed cut of testing for purchase and sales transactions made near the reporting date to assess whether transactions are recorded in the correct period by testing shipping records, sales / purchase invoices, for sample transactions.

102

The key audit matters	How the matter was addressed in our audit
Trade Receivables
The Company trade receivables at year end amount to Rs. 2945.97 lakhs. Judgment is required to evaluate whether any allowance should be made to refect the risk of non- recoverability towards Expected CreditLoss (ECL). The Company recognizes loss allowance for trade receivables. Assessment of the recoverability of trade receivables is inherently subjective and requires signifcant management judgment regarding fnancial position of entities from whom these balances are recoverable, terms of underlying arrangements, overdue balances, market conditions etc.	In view of the signifcance of the matter, we applied the following key audit procedures: ● Obtaining an understanding of and assessing the process, implementation and operating efectiveness of the Company’s key internal controls over the process of estimating the loss allowance for trade receivables and other fnancial assets including adherence to the requirements of the relevant accounting standards ● Assessing the Company’s methodology for provisioning towards trade receivables. ● Understanding the key inputs used in the provisioning by the Company such as repayment history, terms of underlying arrangements, overdue balances, market conditions. ● Obtaining an understanding and assessing the reasonableness of the provisioning process, as well as key judgments and assumptions used by the management for circulating expected credit loss relating to trade receivables. ● Assessing the disclosures made as per the relevant accounting standards.

Other Information

The Holding Company’s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Holding Company’s Annual Report but does not include the 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, 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 management and Board of Directors are responsible for the preparation and presentation of these consolidated financial statements in terms of the requirements of the Act that give a true and fair view of the consolidated state of affairs, consolidated profit/loss and other comprehensive income, consolidated statement of changes in equity and consolidated cash flows of the Group in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. The respective management and Board of Directors of the entities included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of each entity and for preventing and detecting frauds and other irregularities; the 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 the 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

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the purpose of preparation of the consolidated financial statements by the management and Board of Directors of the Holding Company, as aforesaid. In preparing the consolidated financial statements, the respective management and Board of Directors of the entities included in the Group are responsible for assessing the ability of each entity to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective management and Board of Directors either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so. The respective Board of Directors of the entities included in the Group are responsible for overseeing the financial reporting process of each entity.

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 auditors’ 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 entity has adequate internal financial controls system 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 and Board of Directors of the Holding Company.

• Conclude on the appropriateness of management’s and Board of Directors of the Holding Company use of the going concern basis of accounting in preparation of consolidated financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the appropriateness of this assumption. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ 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 auditors’ report. However, future events or conditions may cause the Group (Holding company and subsidiaries) 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 such entities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of financial information of the entities included in the consolidated financial statements. We remain solely responsible for our audit opinion. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements. 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

104

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 auditors’ 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 of two subsidiaries whose Financial Statements/Financial Results/financial information reflects total assets (after eliminating intra-group transactions) of Rs.1,510.32 lakhs as at 31[st] March 2021, total revenuesof Rs.0.13lakhs and net cash inflows amounting to Rs. 38.27 lakhs for the year ended on that date, as considered in the Consolidated Financial Statements. These financial statements / financial information/financial results have been audited by other auditors whose reports have been furnished to us by the Board of Directors and our opinion on the Consolidated Financial Statements, in so far as it relates to the amounts and disclosures included in respect of these entities and our report in terms of sub-section (3) of Section 143 of the Act, in so far as it relates to aforesaid subsidiaries is based solely on the report of the other auditors and the procedures performed by us are as stated Auditor’s Responsibility section above.

Our opinion on the consolidated financial statements and our report on other legal & 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.

Report on Other Legal and Regulatory Requirements

• A. As required by Section 143(3) of the Act, based on our audit and on the consideration of the report of the other auditors on separate financial statements and other financial information of subsidiaries, as noted in the ‘Other Matters’ paragraph, 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 foresaid consolidated financial statements.

• 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.

• c) The consolidated balance sheet, 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 dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.

• d) In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under Section 133 of the Act.

• e) On the basis of the written representations received from the directors of the Holding Company as on 31 March 2021 taken onrecord by the Board of Directors of the Holding Company and on the basis of written representations received by the management from directors of its subsidiaries which are incorporated in India, as on 31 March 2021, none of the directors of the Group’s companies incorporated in India is disqualified as on 31 March 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 consolidated financial statements of the Holding Company and its subsidiary companies incorporated in India and the operating effectiveness of such controls, refer to our separate report in ‘Annexure A’.

• B. With respect to the other matters to be included in the Auditors’ 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 of pending litigations as at 31 March 2021 on the consolidated financial position of the Group. Refer Note 36 to the consolidated financial statements.

• ii. The Group did not have any material foreseeable losses on long-term contracts including derivative contracts during the year ended 31 March 2021.

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• iii. There has been no delay in transferring amounts to the Investor Education and Protection Fund by the Holding Company and its subsidiary companies incorporated in India during the year ended 31 March 2021.

• C. With respect to the matter to be included in the Auditors’ report under Section 197(16) of the Act:

In our opinion and according to the information and explanation given to us, the remuneration paid during the current year by the Holding Company and its subsidiaries which are incorporated in India to its directors is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director by the Holding Company and its subsidiaries which are incorporated in India, is not in excess ofthe limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

For Khanna & Annadhanam Chartered Accountants Firm Registration No.: 001297N

B. J. Singh Partner Membership No.: 007884 UDIN: 21007884AAAABU7441

Place: New Delhi Date : 8[th] May, 2021

106

ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph ‘Report on Other Legal and Regulatory Requirements’ of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

In conjunction with our audit of the consolidated financial statements of Indag Rubber Limited as of and for the year ended 31[st] March, 2021, we have audited the internal financial controls over financial reporting of Indag Rubber Limited (hereinafter referred to as “the Holding Company”) and its subsidiaries, as of that date. Reporting under clause (i) of sub section 3 of Section 143 of the Act in respect of the adequacy of the internal financial controls over financial reporting is not applicable to its jointly controlled entity incorporated in India pursuant to MCA notification GSR 583(E) dated June 13, 2017.

Management’s Responsibility for Internal Financial Controls

The respective Board of Directors of the Company and its subsidiary companies, which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the respective Companies 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 (“the 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.

Auditor’s Responsibility

Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company and its subsidiary companies, which are companies incorporated in India, 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, prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. 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 over financial reporting 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 over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 internal financial controls system over financial reporting of the Company and its subsidiary companies which are companies incorporated in India.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting 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 over financial reporting 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.

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Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, 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 over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting 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 to the best of our information and according to the explanations given to us, the Company, and its subsidiary companies, which are companies incorporated in India, have, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2021, based on, the internal control over financial reporting criteria established by the respective companies considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

Other Matters

Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting insofar as it relates to two subsidiary companies which are companies incorporated in India, is based solely on the corresponding reports of the auditors of such companies incorporated in India.

Our opinion is not modified in respect of the above matters.

For Khanna & Annadhanam

Chartered Accountants (Firm’s Regn. No. 001297N)

B. J. Singh Partner Membership No. 007884 UDIN: 21007884AAAABU7441

Place: New Delhi Date: 8[th] May, 2021

108

Consolidated Balance Sheet as at 31 March, 2021

		Note	As at	As at
		No.	31 March, 2021	31 March, 2020
			(Rs. / lakh)	(Rs. / lakh)
ASSETS
Non-current assets
a.	Property, plant and equipment	3	2,497.52	4,081.13
b.	Capital work-in-progress		1,933.89	1,010.69
c.	Goodwill	38	39.11	40.85
d.	Other intangible assets	4	12.53	20.83
e.	Financial assets
	i. Investments	5	8,363.93	7,391.18
	ii. Loans	6	1.48	0.53
	iii. Other fnancial assets	8	101.34	61.91
f.	Income tax assets (Net)	7	281.68	81.41
g.	Other non-current assets	9	229.70	213.08
	Total non-current assets		13,461.18	12,901.61
Current assets
a.	Inventories	10	3,599.45	3,694.79
b.	Financial assets
	i. Investments	11	732.12	534.89
	ii. Trade receivables	12	2,945.97	3,764.05
	iii. Cash and cash equivalents	13	178.58	134.92
	iv. Bank balances other than (iii) above	14	185.45	348.00
	v. Loans	6	17.57	17.57
	vi. Other fnancial assets	8	152.59	544.13
c.	Income tax assets (Net)	7	-	0.29
d.	Other current assets	9	622.42	635.38
	Total current assets		8,434.15	9,674.02
a.	Assets/Disposal group held for sale	49	1,762.30	-
	Total assets		23,657.63	22,575.63
EQUITY AND LIABILITIES
Equity
a.	Equity share capital	15	525.00	525.00
b.	Other equity	16	19,245.85	18,200.36
Equity attributable to shareholders of the company			19,770.85	18,725.36
	Non-controlling interest		365.19	337.28
	Total equity		20,136.04	19,062.64
Liabilities
Non-current liabilities
a.	Financial liabilities
	i. Borrowings	17	-	990.73
b.	Provisions	21	87.92	69.15
c.	Deferred tax liabilities (Net)	18	283.09	248.73
	Total non-current liabilities		371.01	1,308.61
Current liabilities
a.	Financial liabilities
	i. Trade payables:-	19
	Total outstanding dues of micro enterprises and small enterprises		44.54	361.79
	Total outstanding dues of creditors other than micro enterprises and small		1,477.77	1,218.78
	enterprises ii. Other fnancial liabilities	20	334.39	411.64
b.	Provisions	21	48.78	26.94
c.	Other current liabilities	22	225.59	185.23
	Total current liabilities		2,131.07	2,204.38
	Total liabilities		2,502.08	3,512.99
a.	Liabilities directly associated with asset/disposal group held for sale	49	1,019.51	-
Total equity and liabilities Signifcant accounting policies		2	23,657.63	22,575.63

The accompanying notes are an integral part of the consolidated financial statements

As per our report of even date For and on behalf of the Board of Directors

For Khanna & Annadhanam Chartered Accountants ICAI Firm’s Registration No.: 001297N

B. J. Singh Partner Membership No. 007884

Place: New Delhi Date: May 8, 2021

Nand Khemka Chairman cum Managing Director DIN : 00211084

Manali D Bijlani Company Secretary

K. K. Kapur CEO and Whole Time Director DIN : 00745117

Anil Bhardwaj GM-(Accounts) & CFO

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Consolidated Statement of Profit and Loss for the year ended 31 March, 2021

		Note	Year ended	Year ended
		No.	31 March, 2021	31 March, 2020
			(Rs. / lakh)	(Rs. / lakh)
I	Revenue from operations	23	16,984.43	18,677.39
II	Other income	24	403.95	457.86
III	Total income (I+II)		17,388.38	19,135.25
IV	Expenses
	Cost of materials consumed	25	10,053.36	12,637.23
	Purchases of stock in trade		32.47	16.05
	Changes in inventories of fnished goods, stock-in-trade and work in	26	673.50	(546.14)
	progress
	Employee benefts expense	27	2,095.25	2,059.81
	Finance costs	29	26.58	25.00
	Depreciation and amortisation expense	28	328.55	374.32
	Other expenses	30	2,505.03	2,899.48
	Total expenses (IV)		15,714.74	17,465.75
V	Proft before Share of Proft/(loss) of Joint Venture and Tax(III - IV)		1,673.64	1,669.50
VI	Share of loss of joint venture		51.49	10.40
VII	Proft before exceptional items and tax (V-VI)		1,622.15	1,659.10
VIII	Exceptional items		1,324.02	-
IX X	Proft/(loss) before tax (VII - VIII) Tax expense		298.13	1,659.10
	Current tax	32	103.04	437.14
	Deferred tax	18	(24.45)	(98.55)
	Income tax adjustment for earlier year	32	(2.06)	4.96
			76.53	343.55
XI XII	Proft after tax from continuing operations (IX-X) Discontinued operations		221.60	1,315.55
	Proft / (loss) for the period from discontinued operations before tax		70.84	66.79
	Current Tax expense of discontinued operations	49	10.92	10.29
**XIII **	Proft / (loss) after tax from from discontinued operations Proft / (loss) for the year (XI + XII)		59.92 281.52	56.50 1,372.05
**XIV **	Other comprehensive income (‘OCI’)
	i. Items that will not be reclassifed subsequently to the statement of proft and loss
	a. Gain/(loss) on change in fair valuation of equity instruments		893.61	(482.63)
	carried at fair value through OCI
	b. Gain/(loss) on sale of equity and equity related instruments		207.07	(13.86)
	c. Remeasurement gain/(loss) on defned beneft obligations (net)		(13.08)	14.36
			1,087.60	(482.13)
	ii. Income tax relating to items that will not be reclassifed subsequently to statement of proft and loss
	a. Current tax	32	(0.20)	(6.54)
	b. Deferred tax	18	58.81	(7.17)
			58.61	(13.71)
	Total other comprehensive income (XIV)		1,028.99	(468.42)
XV	Total Comprehensive income for the year (XIII+XIV)		1,310.51	903.63
	Proft for the year attributable to:
	Continuing operations
	a) Shareholders of the company		223.06	1,316.60
	b) Non Controlling Interest		(1.46)	(1.05)

110

contn... Consolidated Statement of Profit and Loss for the year ended 31 March, 2021

	Note	Year ended	Year ended
	No.	31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
Discontinued operations
a) Shareholders of the company		30.56	28.82
b) Non Controlling Interest		29.36	27.68
Other Comprehensive income attributable to:
Continuing operations
a) Shareholders of the company		1,028.99	(468.42)
b) Non Controlling Interest		-	-
Discontinued operations
a) Shareholders of the company		-	-
b) Non Controlling Interest		-	-
Total Comprehensive income attributable to:
Continuing operations
a) Shareholders of the company		1,252.05	848.18
b) Non Controlling Interest		(1.46)	(1.05)
Discontinued operations
a) Shareholders of the company		30.56	28.82
b) Non Controlling Interest		29.36	27.68
XVI Earnings per equity share	31
Continuing operations
Basic and diluted (Rs.) [Nominal value of share Rs. 2]		0.85	5.02
Discontinued operations
Basic and diluted (Rs.) [Nominal value of share Rs. 2]		0.12	0.11
Continuing & discontinued operations
Basic and diluted (Rs.) [Nominal value of share Rs. 2]		0.97	5.13
Signifcant accounting policies	2

The accompanying notes are an integral part of the consolidated financial statements

As per our report of even date For and on behalf of the Board of Directors

For Khanna & Annadhanam Chartered Accountants ICAI Firm’s Registration No.: 001297N

B. J. Singh Partner Membership No. 007884

Nand Khemka

Chairman cum Managing Director DIN : 00211084

K. K. Kapur

CEO and Whole Time Director DIN : 00745117

Place: New Delhi Date: May 8, 2021

Manali D Bijlani Company Secretary

Anil Bhardwaj GM-(Accounts) & CFO

111

Consolidated Statement of changes in equity for the year ended 31 March, 2021

		Amount
		(Rs. / lakh)
a.	Equity share capital
	Balance as at 1 April, 2019	525.00
	Changes in equity share capital during the year	-
	Balance as at 31 March, 2020	525.00
	Balance as at 1 April, 2020	525.00
	Changes in equity share capital during the year	-
	Balance as at 31 March, 2021	525.00

b. Other equity

b.	Other equity
		Reserve and surplus				Other comprehensive income	Total equity attributable to shareholders of the Company
		Capital reserve	Securities premium	General reserve	Retained earnings
		**(Rs. / lakh) **	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
	Balance as at 1 April, 2019 Proft for the year Other comprehensive income for the year, net of income tax Total comprehensive income Dividend paid (including taxes) Balance as at 31 March, 2020 Balance as at 1 April, 2020 Proft for the year Other comprehensive income for the year, net of income tax Total comprehensive income Dividend paid (including taxes) Balance as at 31 March, 2021	0.29 - -	450.00 - -	1,148.80 - -	16,417.50 1,345.42 -	540.55 - (468.42)	18,557.14 1,345.42 (468.42)
		- -	- -	- -	1,345.42 1,233.78	(468.42) -	877.00 1,233.78
		-	-		111.64	(468.42)	(356.78)
		0.29	450.00	1,148.80	16,529.14	72.13	18,200.36
		0.29	450.00	1,148.80	16,529.14	72.13	18,200.36
		- -	- -	- -	253.62 -	- 1,028.99	253.62 1,028.99
		- -	- -	- -	253.62 237.12	1,028.99 -	1,282.61 237.12
		-	-	-	16.50	1,028.99	1,045.49
		0.29	450.00	1,148.80	16,545.64	1,101.12	19,245.85

The accompanying notes are an integral part of the consolidated financial statements

As per our report of even date

For and on behalf of the Board of Directors

For Khanna & Annadhanam

Chartered Accountants ICAI Firm’s Registration No.: 001297N

B. J. Singh

Partner Membership No. 007884

Nand Khemka

Chairman cum Managing Director DIN : 00211084

K. K. Kapur

CEO and Whole Time Director DIN : 00745117

Place: New Delhi Date: May 8, 2021

Manali D Bijlani Company Secretary

Anil Bhardwaj GM-(Accounts) & CFO

112

Consolidated Statement of Cash flow for the year ended 31 Mach, 2021

		Year ended	Year ended
		31 March, 2021 31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
**A. **	Cash fow from operating activities
	Proft before tax (including discontinued operations)	368.97	1,725.89
	Adjustments for:
	Exceptional item (Litigation settlement under LCR Scheme) [refer note 36 (b)]	1324.02	-
	Depreciation and amortisation expense	403.09	448.89
	Share of loss of joint venture	51.49	10.40
	Loss/(Gain) on disposal of property, plant and equipment (net)	10.37	(2.64)
	Bad debt written of	1.36	1.36
	Provision for doubtful debts	22.32	39.86
	Provision for doubtful advance written back	-	(0.17)
	Provision /Liabilities no longer required written back	(9.94)	(0.03)
	Unrealised loss/(gain) on foreign exchange fuctuation	(0.49)	(2.07)
	Loss/(gain) arising on fnancial assets designated through FVTPL	(121.22)	(95.94)
	Loss/(gain) on disposal of debt instruments at FVTPL	(28.69)	(14.86)
	Dividend income from investments	(186.18)	(285.94)
	Interest expense	137.15	147.76
	Interest income earned on fnancial assets	(65.75)	(59.95)
	Operating proft before working capital changes	1,906.50	1,912.56
	Adjustments for changes in working capital:
	Adjustments for operating assets:
	Decrease/(Increase) in trade receivables	758.77	(356.72)
	Decrease/(Increase) in inventories	95.34	115.70
	Decrease/(Increase) in loans	(0.95)	5.34
	Decrease/(Increase) in other fnancial assets	(98.90)	24.72
	Decrease/(Increase) in other assets	(32.14)	(407.26)
	Adjustments for operating liabilities:
	(Decrease)/Increase in trade payables	(27.85)	115.68
	(Decrease)/Increase in other liabilities	42.68	19.53
	(Decrease)/Increase in fnancial liabilities	13.96	68.04
	(Decrease)/Increase in provisions	27.53	27.00
	Cash generated from operating activities	2,684.94	1,524.59
	Income taxes paid (Net)	(311.20)	(479.03)
	Entry Tax Payment[refer note 36 (b)]	(872.69)	-
	Net cash fow from/(used in) operating activities	1,501.05	1,045.56
**B. **	Cash fow from investing activities
	Purchase of Property plant and equipments	(1,245.69)	(1,384.73)
	Proceeds from sale of Property plant and equipments	2.52	8.61
	Purchases of Investments	(7,361.85)	(7,293.37)
	Proceeds from sale/maturity of Investments	7,388.99	8,575.21
	Bank balance not considered as Cash and cash equivalents	40.71	4.04
	Interest received	67.31	63.41
	Dividend received	186.18	285.94
	Net cash fow from /(used in) investing activities	(921.83)	259.11

113

contn... Consolidated Statement of Cash flow for the year ended 31 Mach, 2021

	Consolidated Statement of Cash fow for the year ended	31 Mach, 2021co	ntn...
		Year ended	Year ended
		31 March, 2021 31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
**C. **	Cash fow from fnancing activities
	Government Grant Received	-	30.00
	Proceeds/(Repayment) of long term borrowings	(95.96)	(95.96)
	Interest paid	(137.45)	(166.64)
	Dividend paid	(237.78)	(1,025.41)
	Tax on dividends paid	(0.87)	(210.03)
	Net cash (used in) fnancing activities	(472.06)	(1,468.04)
	Net increase/(decrease) in cash and cash equivalents (A+B+C)	107.16	(163.37)
	Cash and cash equivalents at the beginning of the year
	continuing operations	112.64	258.04
	discontinued operations	22.28	40.25
	Cash and cash equivalents at the end of the year	242.08	134.92
	Components of cash and cash equivalents from continuing operations:
	Cash on hand	3.89	2.71
	Balances with banks:
	-on current accounts	12.47	70.67
	-on cash credit accounts	162.22	39.26
	Components of cash and cash equivalents from discontinued operations:
	Cash on hand	-	0.02
	Balances with banks:
	-on current accounts	63.50	22.26
	Total cash and cash equivalents	242.08	134.92

The accompanying notes are an integral part of the consolidated financial statements

As per our report of even date

For and on behalf of the Board of Directors

For Khanna & Annadhanam

Chartered Accountants ICAI Firm’s Registration No.: 001297N

B. J. Singh Partner Membership No. 007884

Place: New Delhi Date: May 8, 2021

Nand Khemka

K. K. Kapur

Chairman cum Managing Director CEO and Whole Time Director DIN : 00211084 DIN : 00745117 Manali D Bijlani Anil Bhardwaj Company Secretary GM-(Accounts) & CFO

114

Notes to Consolidated financial statements for the year ended 31 March, 2021

1. Corporate information

Indag Rubber Limited (hereinafter referred to as ‘the Parent Company’) is a Public Limited Company incorporated and domiciled in India. The Parent company’s shares are listed on Bombay Stock Exchange (‘BSE’). The Parent Company has invested funds in the equity share capital of a subsidiary who in turn invested the funds in the equity share capital of its subsidiary. The Parent Company is engaged in the manufacturing and selling of Precured Tread Rubber and allied products. The subsidiary along with step down subsidiary company is engaged in the business of enhancing knowledge and skills of solar technologies in India, specially the expertise in solar park development and to carry on the business of generating power supply through clean energy sub-sectors e.g., solar energy, biomass, wind, and energy efficiency projects and/or any other means, distribute, supply and sell such power either directly or through facilities or Central/State Governments or private companies or Electricity Boards to industries and to Central/State Governments. The Parent Company and its subsidiaries collectively hereinafter referred to as “the Group”.

The registered office of the Parent Company is located at 11 Community Centre, Saket, New Delhi- 110017, India. The Company’s CIN is - L74899DL1978PLC009038.

The consolidated financial statements as at March 31, 2021 present the financial position of the Group as well as its interests in joint venture. The list of entities consolidated is provided in Note 46.

These consolidated financial statements were approved by the Board of Directors and authorised for issue on May 8, 2021.

2. Significant accounting policies

• 2.1 Statement of compliance and basis of preparation and presentation

The Consolidated financial statements of the Group have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standard) (Amendment) Rules, 2016. The Group has prepared these consolidated financial statements to comply in all material respects with the accounting standards notified under Section 133 of the Companies Act, 2013 (“the Act”).

The consolidated financial statements have been prepared on historical cost basis except for certain financial instruments which are measured at fair value at the end of each reporting period as explained in the accounting policies.

The Consolidated financial statements of the Group are presented in Indian Rupees (Rs.) and all values are rounded to the nearest lakh, except when otherwise indicated.

With effect from 1st April, 2019, Ind AS 116 – “Leases” (Ind AS 116) supersedes Ind AS 17 – “Leases”. The Group has adopted Ind AS 116 using the Modified retrospective approach. The adoption of the standard did not have any significant impact on the consolidated financial statements.

2.2 Basis of Consolidation

The consolidated financial statements include the financial statements of Parent Company and its subsidiaries. Subsidiaries are entities controlled by the Company. Control exists when the Company :

• a. has power over the investee;

• b. is exposed, or has rights, to variable returns from its involvement with the investee and

• c. has the ability to affect those returns through its power over the investee.

The Company 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 listed above.

In assessing control, potential voting rights that currently are exercisable are taken into account. The results of subsidiaries acquired or disposed off during the year are included in the consolidated financial statements from the effective date of acquisition and up to the effective date of disposal, as appropriate.

Inter-company transactions and balances including unrealized profits are eliminated in full on consolidation.

Non-controlling interests in the net assets (excluding goodwill) of consolidated subsidiaries are identified separately from the Company’s equity. The interest of non-controlling shareholders may be initially measured either at fair

115

value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement basis is made on an acquisition-by-acquisition basis.

Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if it results in the non-controlling interest having a deficit balance.

Changes in the Company’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amount of the Company’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 shareholders of the Company.

When the Company loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between the aggregate of the fair value of consideration received and the fair value of any retained interest and the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any noncontrolling interests, amounts previously recognized in other comprehensive income in relation to the subsidiary are accounted for (i.e., reclassified to profit or loss) in the same manner as would be required if the relevant assets or liabilities were disposed off. 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 Financial Instruments: Recognition and Measurement or, when applicable, the cost on initial recognition of an investment in an associate or jointly controlled entity.

Investment in Joint Venture has been accounted under the equity method as per Ind AS 28 –Investments in Joint Ventures.

The group does not have any investments in associate.

2.3 Business Combinations

Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. Acquisition related costs are recognised in profit or loss as incurred. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition are recognised at their fair value at the acquisition date, except certain assets and liabilities required to be measured as per the applicable standard.

Purchase consideration in excess of the Company’s interest in the acquiree’s net fair value of identifiable assets, liabilities and contingent liabilities is recognised as goodwill. Excess of the Company’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities over the purchase consideration is recognised, after reassessment of fair value of net assets acquired, in the Capital Reserve.

The interest of non-controlling shareholders is initially measured either at fair value or at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The choice of measurement basis is made on an acquisition-by-acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity of subsidiaries.

2.4 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 cash-generating 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. Impairment loss for goodwill is recognised directly in the 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.

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• 2.5 Basis of classification of Current and Non-Current

All assets and liabilities have been classified as current or non-current as per the Group’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Group has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

Deferred tax assets and liabilities are classified as non-current assets or liabilities.

2.6 Use of estimates

• i) The preparation of these financial statements, in conformity with the recognition and measurement principles of Ind AS, requires the management of the Group to make judgments, estimates and assumptions that affect application of accounting policies and the reported amount of assets and liabilities, disclosures relating to contingent assets and liabilities as at the date of the financial statements and the reported amounts of income and expenses for the periods presented. Actual results may differ from these estimates. Accounting estimates could change from period to period.

Estimates and underlying assumptions are reviewed on ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected. Changes in estimates are reflected in the financial statements in the period in which changes are made, if material, their effects are disclosed in the notes to the financial statements.

Key source of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of valuation of deferred tax assets, property plant & equipments, impairement of investments, provisions and contingent liabilities.

• ii) Uncertainty relating to the global health pandemic Covid-19

The Group has made assessment about the recoverability and carrying value of its assets comprising property, plant and equipment, investments, inventory and trade receivables taking into account the second wave on Covid-19 started in April 2021. Based on current indicators of future economic conditions, the group expects to recover the carrying amount of these assets. The situation is changing rapidly giving rise to inherent uncertainty around the extent and timing of the potential future impact of the COVID-19 which may be different from that estimated as at the date of approval of these consolidated financial statements. The Group will continue to closely monitor any material changes arising of future economic conditions and impact on its business.

2.7 Revenue Recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is received. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The following specific criteria must also be met before revenue is recognised:

i. Sale of goods

Revenue from sale of goods is recognised when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. Revenue is recognised when collectability of the resulting receivables is reasonably assured.

• ii. Sale of services

Revenue from sale of services is recognised as and when the services are rendered and the stage of completion can be measured reliably and based on agreements/arrangements with the concerned customers.

iii. Sale of power

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from main business activities are recognised on due basis, as and when the services are rendered, based on the agreements/arrangements with the concerned parties. Unbilled revenue is recognised to the extent not billed at the year end.

117

Solar power generation income is recognised based on the monthly statement of “State Energy Account” generated by Bangalore Electricity Supply Company Limited of units generated through our Plant.

• iv. Dividend and interest income

• Dividend income from investments is recognised when the right to receive dividend is established by the reporting date.

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 proportion basis, with reference to the principal outstanding and at the effective interest rate, which is the rate that exactly discounts estimated future cash receipts over the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

2.8 Lease

The Group, as a lessee, recognises a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Group has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use asset is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of use asset.

The Group measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses incremental borrowing rate.

For short-term and low value leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the lease term

2.9 Foreign currency

These consolidated financial statements of the Group are presented in Indian rupees (Rs. / lakh) which is the Parent Company and its subsidiaries functional and presentation currency.

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Foreign currency denominated monetary assets and liabilities are re-measured into the functional currency at the exchange rate prevailing on the balance sheet date.

Exchange differences are recognised in the Consolidated Statement of Profit and Loss.

2.10 Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are recognized in the statement of profit and loss in the period in which they are incurred.

Borrowing costs include interest and amortisation of ancillary costs incurred in connection with the arrangement of borrowings.

2.11 Employee benefits

• (i) Retirement benefits in the form of provident fund (where contributed to the Regional PF Commissioner) is a defined contribution scheme. The Group has no obligation, other than the contribution payable to the provident fund. The Group recognizes contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre payment will lead to, for example, a reduction in future payment or a cash refund.

118

Retirement benefits in the form of provident fund contributed to the Trust set up by the employer is a defined benefit scheme and is provided for on the basis of actuarial valuation of projected unit credit method made at the end of each financial year. The difference between the actuarial valuation of the provident fund of employees at the year end and the balance of own managed funds is provided for as liability in the books by the Group.

• (ii) Gratuity liability under the Payment of Gratuity Act is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year. The gratuity plan has been funded by policy taken from Life Insurance Corporation of India. Actuarial gains and losses are recognised in full in the other comprehensive income for the period in which they occur. Past service cost both vested and unvested is recognised as an expense at the earlier of

• (a) when the plan amendment or curtailment occurs; and

• (b) when the entity recognises related restructuring costs or termination benefits.

• (iii) Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The Group measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

• (iv) The Group treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/ losses are immediately taken to the statement of profit and loss and are not deferred.

2.12 Income Taxes

• Income tax expense represents the sum of the tax currently payable and deferred tax.

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 consolidated 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 by the end of the reporting period.

Deferred tax

Deferred tax is recognised for the future tax consequences of temporary differences between the carrying amounts of assets and liabilities in the consolidated 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 to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

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 realised, 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 Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

In the situations where the Group is entitled to a tax holiday under the Income-tax Act, 1961 enacted in India or tax laws prevailing in the respective tax jurisdictions where it operates, no deferred tax (asset or liability) is recognized in respect of timing differences which reverse during the tax holiday period, to the extent the company’s gross total income is subject to the deduction during the tax holiday period. Deferred tax in respect of timing differences which reverse after the tax holiday period is recognized in the year in which the timing differences originate. However, the Group restricts recognition of deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such

119

deferred tax assets can be realized. For recognition of deferred taxes, the timing differences which originate first are considered to reverse first.

Current and deferred tax for the year

Current and deferred tax are recognised in consolidated 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.

Minimum alternate tax (MAT) paid in a year is charged to the consolidated statement of profit and loss as current tax. The Group recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the Group will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Group recognises MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as “MAT Credit Entitlement”. The group reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent the Group does not have convincing evidence that it will pay normal tax during the specified period.

2.13 Property, plant and equipment

Property, plant and equipment, capital work in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

When significant parts of plant and equipment are required to be replaced at intervals, the Group depreciated them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in the statement of profit and loss as incurred. The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of respective asset if the recognition criteria for a provision are met.

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 assets.

Gains or losses arising from disposal or retirement of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

2.14 Depreciation on property, plant and equipment

• a. With respect to business of manufacturing and selling of Precured Tread Rubber and allied products. Leasehold land is amortised on a straight line basis over the period of lease i.e., 95/99 years. Freehold land is not depreciated.

Depreciation on property, plant and equipment is calculated on a straight-line basis using the rates arrived at, based on the useful lives estimated by the management, which are equal to the useful lives prescribed under Schedule II to the Companies Act, 2013.

Estimated useful lives of the assets are as follows:

**S. No. **	Assets	Useful lives inyears
i.	Buildings	Ranging from 5 to 60 Years
ii.	Plant and equipment	Ranging from 3 to 15 Years
iii.	Furniture and Fixtures	10 years
iv.	Ofce equipment	Ranging from 3 to 6 Years
v.	Vehicles	Rangingfrom8 to10Years

b. With respect to solar power business:

Depreciation on property, plant and equipment calculated on a straight-line basis using the rates arrived at, based on the useful lives estimated by the management, which are equal to the useful lives prescribed under Schedule II to the Companies Act, 2013 except in respect of the following assets, where useful life is either not given or different than those prescribed in Schedule II are used:

120

S. No.		Assets	Useful lives inyears
i.	Plant and equipment
	-	Inverter	10 years
	-	Other machinery	25 years
	-	Ofce equipment	3years

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

2.15 Intangible assets

Intangible assets purchased are measured at cost as of the date of acquisition less accumulated amortisation and accumulated impairment, if any.

Intangible assets consist of rights under licensing agreement and software licenses which are amortised over license period which equates the useful life ranging between 2-4 years on a straight-line basis or actual life of license whichever is earlier.

2.16 Impairment of non-financial assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. 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. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

The Group bases its impairment calculation on detailed budgets and forecast calculations which are prepared separately for each of the Group’s cash-generating units to which the individual assets are allocated.

Impairment losses are recognized in the statement of profit and loss. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

2.17 Inventories

Inventories are valued as follows:

Raw materials, stores and spares Lower of cost and net realizable value. However, materials and other and packing materials items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated, are expected to be sold at or above cost. Cost is determined on moving weighted average method.

Work in progress and finished goods Lower of cost and net realizable value. Cost includes direct materials (own manufactured) and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost is determined on monthly moving weighted average basis.

Traded goods

Lower of cost and net realizable value. Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on moving weighted average basis.

Net realisable value is the estimated selling price in the ordinary course of business less estimated cost of completion and estimated costs necessary to make the sale.

2.18 Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is

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material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

• 2.19 Financial instruments - Financial assets, Financial liabilities and Equity instruments

• 2.19.1 Financial Assets Recognition: Financial assets include Investments, Trade Receivables, Advances, Security Deposits, Cash and Cash equivalents. Such assets are initially recognised at transaction price when the Group becomes party to contractual obligations. The transaction price includes transaction costs unless the asset is being fair valued through the Statement of Profit and Loss.

• 2.19.2 Classification: Management determines the classification of an asset at initial recognition depending on the purpose for which the assets were acquired. The subsequent measurement of financial assets depends on such classification.

• 2.19.3 Financial assets are classified as those measured at:

• (a) amortised cost, where the financial assets are held solely for collection of cash flows arising from payments of principal and/ or interest.

• (b) fair value through other comprehensive income (FVTOCI), where the financial assets are held not only for collection of cash flows arising from payments of principal and interest but also from the sale of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in other comprehensive income.

• (c) fair value through profit or loss (FVTPL), where the assets are managed in accordance with an approved investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in the Statement of Profit and Loss in the period in which they arise. Trade Receivables, Advances, Security Deposits, Cash and Cash equivalents etc. are classified for measurement at amortised cost while investments may fall under any of the aforesaid classes. However, in respect of particular investments in equity instruments that would otherwise be measured at fair value through profit or loss, an irrevocable election at initial recognition may be made to present subsequent changes in fair value through other comprehensive income. This option has been adopted by the group irrevocably.

• 2.19.4 Financial Assets at fair value through other comprehensive income: These include financial assets that are equity instruments and are irrevocably designated as such upon initial recognition. Subsequently, these are measured at fair value and changes therein are recognized directly in other comprehensive income, net of applicable income taxes.

• Dividends from these equity investments are recognized in the Statement of Profit and Loss when the right to receive payment has been established. When the equity investment is derecognized, the cumulative gain or loss in equity is transferred to Other equity.

• 2.19.5 Financial assets at fair value through profit or loss: Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs that are directly attributable to the acquisition of financial assets, which are measured at fair value through profit or loss, are immediately recognised in profit or loss.

• 2.19.6 Cash and cash equivalents : Cash and cash equivalents comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, from the date of purchase which are subject to an insignificant risk of changes in value.

• 2.19.7 Equity instruments: An equity instrument is any contract that evidences residual interests in the assets of the Group after deducting all of its liabilities. Equity instruments issued by the Parent Company are recorded at the proceeds received, net of direct issue costs.

• 2.19.8 Financial Liabilities: Borrowings, trade payables and other financial liabilities are initially recognised at the value of the respective contractual obligations. They are subsequently measured at amortised cost. Any discount or premium on redemption/settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the liability using the effective interest method and adjusted to the liability figure disclosed in the Balance Sheet.

• Financial liabilities are derecognised when the liability is extinguished, that is, when the contractual obligation is discharged, cancelled or on expiry.

• 2.19.9 Financial guarantee contracts: These are initially measured at fair value and are subsequently measured at the higher of the amount of loss allowance determined or the amount initially recognized, less the cumulative amount of income recognized.

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2.19.10 Other financial liabilities: These are measured at amortized cost using the effective interest rate method.

• 2.19.11 Determination of fair value: The fair value of a financial instrument on initial recognition is normally the transaction price (fair value of the consideration given or received). Subsequent to initial recognition, the Group determines the fair value of financial instruments, that are quoted in active markets, using the quoted prices (financial assets held) and using valuation techniques for other instruments. Valuation techniques include discounted cash flow method and other valuation models.

• 2.19.12 Derecognition of financial assets and financial liabilities:

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes 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 recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.

• Financial liabilities are derecognised when these are extingushed, which is when the obligation is discharged, cancelled or expired.

• 2.19.13 Impairment of financial assets:

The Group assesses at each reporting date whether a financial asset (or a group of financial assets) such as investments, trade receivables, advances and security deposits held at amortised cost and financial assets that are measured at fair value through other comprehensive income are tested for impairment based on evidence or information that is available without undue cost or effort. Expected credit losses are assessed and loss allowances recognised if the credit quality of the financial asset has deteriorated significantly since initial recognition.

• 2.19.14 Derivative financial instruments

• The Group does not hold any derivative and embedded derivative financial instruments.

2.20 Fair value measurement

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.

In addition, for financial reporting purposes, fair value measurements are categorised 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: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

• Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

2.21 Operating Segments

Identification of segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as Chief Financial Officer and Chief Executive Officer.

Unallocated items

Unallocated items include general corporate income and expense items which are not allocated to any business segment.

Segment accounting policies

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

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2.22 Earnings per share

Basic earnings per share are computed by dividing profit/loss for the period by the weighted average number of shares outstanding during the year. Partly paid up shares are included as fully paid equivalents according to the fraction paid up. Diluted earnings per share are been computed using the weighted average number of shares and dilutive potential shares, except where the result would be anti-dilutive.

2.23 Assets/Disposal group held for sale and discontinued operations

Assets/Disposal group held for sale are classified as held for sale if their carrying amount will be recovered 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 value 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 assets (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increase 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 Assets/Disposal group held for sale is recognised at the date of de-recognition.

Assets/Disposal group held for sale 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 a 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.

2.24 Government grants and subsidies

Grants and subsidies from the government are recognized when there is reasonable assurance that

(i) the Group will comply with the conditions attached to them, and

• (ii) the grant/ subsidy will be received.

Where the grant or subsidy relates to revenue, it is recognized as income on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs, which they are intended to compensate. Where the grant relates to an asset, it is reduced from the respective cost of an asset and accordingly depreciation is calculated on reduced amount.

2.25 Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Group does not recognize a contingent liability but discloses its existence in the financial statements.

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3 Property, plant and equipment

	Freehold land	Leasehold land	Buildings	Plant and equipment	Furniture and fxtures	Ofce equipment	Vehicles	Total
	**(Rs. / lakh) **	**(Rs. / lakh) **	**(Rs. / lakh) **	(Rs. / lakh)	(Rs. / lakh)	**(Rs. / lakh) **	**(Rs. / lakh) **	(Rs. / lakh)
Cost or deemed cost
As at 01.04.2019	80.37	15.79	1,047.12	3,998.36	62.55	91.23	47.34	5,342.76
Additions	-	-	-	216.57	13.93	20.72	10.78	262.00
Deductions	-	-	-	7.25	-	0.98	1.49	9.72
Govt Grant	-	-	-	30.00	-	-	-	30.00
As at 31.03.2020	80.37	15.79	1,047.12	4,177.68	76.48	110.97	56.63	5,565.04
Additions	-	-	1.12	297.50	0.49	12.45	-	311.56
Deductions	-	-	-	33.18	0.01	1.58	6.08	40.85
Transfer to assets/disposal groupheld for sale	-	-	-	1,809.11	-	0.16	-	1,809.27
As at 31.03.2021	80.37	15.79	1,048.24	2,632.89	76.96	121.68	50.55	4,026.48
Depreciation
As at 01.04.2019	-	0.56	131.56	843.72	8.00	46.21	20.59	1,050.64
Charge for theyear	-	0.19	43.88	324.36	44.64	16.87	7.08	437.02
Deductions	-	-	-	1.59	-	0.83	1.33	3.75
As at 31.03.2020	-	0.75	175.44	1,166.49	52.64	62.25	26.34	1,483.91
Charge for theperiod	-	0.19	43.82	246.49	2.89	17.90	6.14	317.43
Deductions	-	-	-	22.64	-	1.03	4.29	27.96
Transfer to assets/disposal group held for sale	-	-	-	244.26	-	0.16	-	244.42
As at 31.03.2021	-	0.94	219.26	1,146.08	55.53	78.96	28.19	1,528.96
Net block
As at 31.03.2020	80.37	15.04	871.68	3,011.19	23.84	48.72	30.29	4,081.13
As at 31.03.2021	80.37	14.85	828.98	1,486.81	21.43	42.72	22.36	2,497.52

Notes:

i. The leasehold land comprises land obtained on lease from Rajasthan State Industrial & Mineral Development Corporation Limited for 99 years and land obtained from Government of Himachal Pradesh for 95 years.

4

Other intangible assets

Other intangible assets
	Computer Software	Total
	(Rs. / lakh)	(Rs. / lakh)
Cost or deemed cost
As at 01.04.2019	48.70	48.70
Additions	9.16	9.16
Deductions	-	-
As at 31.03.2020	57.86	57.86
Addition	2.82	2.82
Deductions	-	-
As at 31.03.2021	60.68	60.68
Amortisation
As at 01.04.2019	25.16	25.16
Charge for the year	11.87	11.87
Deductions	-	-
As at 31.03.2020	37.03	37.03
Charge for the period	11.12	11.12
Deductions	-	-
As at 31.03.2021	48.15	48.15
Net block
As at 31.03.2020	20.83	20.83
As at 31.03.2021	12.53	12.53

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5 Investments

		As at 31	March, 2021		As at 31	March,2020
		Face value per	Numbers	(Rs. /	Face value per	Numbers	(Rs. /
		share / unit		lakh)	share / unit		lakh)
		(in Rs.)			(in Rs.)
Non-current
**A. **	Investment carried at Cost
	(accounting using Equity method)
	[Fully paid-up (Unquoted)]
i	Investment in Joint ventures
	Sun Mobility EV Infra Private Limited
	(formerly known as Alberieth EV Services
	Private Limited)
	Equity shares	10	15,00,000	78.11	10	15,00,000	129.60
	0.001% Optionally covertible redeemable	**10 **	1,20,00,000	1200.00	10	1,20,00,000	1,200.00
	preference shares
				1278.11			1,329.60
**B. **	Investments carried at Fair value
	through other comprehensive income
i.	Equity shares
	[Fully paid-up (Quoted)]
	IDFC Limited	10	16,770	7.94	10	16,770	2.49
	Lupin Limited	2	1,372	14.00	2	1,372	8.09
	AIA Engineering Limited	2	593	12.17	2	593	8.20
	Larsen and Toubro Limited	2	2,128	30.19	2	2,128	17.20
	DCB Bank Limited	10	20,833	21.38	-	-	-
	Engineers India Limited	5	4,370	3.36	5	4,370	2.62
	Axis Bank Limited	2	1,468	10.24	2	1,468	5.57
	ICICI Bank Limited	2	6,850	39.87	2	6,858	22.20
	Tech Mahindra Limited	5	3,610	35.79	5	3,610	20.41
	United Spirits Limited	2	3,015	16.77	2	3,015	14.61
	Wipro Limited	2	9,818	40.66	2	9,818	19.31
	Cipla Limited	2	2,220	18.10	2	2,220	9.39
	P.I. Industries Limited	1	1,169	26.40	1	1,199	13.67
	Supreme Industries Limited	2	627	12.81	2	627	5.45
	City Union Bank Limited	1	9,738	15.19	1	9,738	12.63
	Persistent Systems Limited	10	717	13.78	10	1,867	10.29
	La Opala RG Limited	2	2,846	6.31	2	2,846	4.25
	Eastern Treads Limited	10	11,100	6.11	10	11,100	1.88
	Vamshi Rubber Limited	10	4,664	0.90	10	4,664	0.68
	PVR Limited	10	1,079	13.23	10	1,079	12.77
	Torrent Pharmaceuticals Limited	5	1,063	27.05	5	1,063	20.96
	Page Industries Limited	10	49	14.86	10	49	8.29
	Amrutanjan Health care Limited	1	2,456	13.94	1	2,456	8.10
	Cadila Healthcare Limited	1	1,214	5.35	1	1,214	3.24
	Cholamandalam investment and fnance	2	4,615	25.79	2	4,615	7.06
	company Limited
	Garware Technical fbres Limited (Erstwhile	10	840	21.56	10	840	8.96
	Garware wall ropes Limited)
	Embassy Ofce Park - REIT	300	5,600	18.24	300	5,600	19.68
	Kajaria Ceramics Limited	1	2,061	19.10	1	2,061	7.76
	Aavas Financiers Ltd	10	650	15.74	-	-	-
	Mindspace Business Parks - REIT	275	7,000	20.63	-	-	-
				527.46			275.76
**ii. **	Equity mutual funds
	(Unquoted)
	HDFC Balance Advantage Fund - Direct	-	-	-	10	3,10,556.25	63.17
	Plan - Dividend (merged with HDFC
	Prudence Fund)
	HDFC Top 100 Fund - Direct Plan	-	-	-	10	4,90,313.60	153.91
	-Dividend (Erstwhile HDFC Top 200 Fund)
	HDFC Top 100 Fund - Direct Plan -Growth	100	42,581.41	257.82	-	-	-

126

		As at 31 March, 2021	As at 31 March, 2021		As at 31 March,2020	As at 31 March,2020
		Face value per	Numbers	(Rs. /	Face value per	Numbers	(Rs. /
		share / unit		lakh)	share / unit		lakh)
		(in Rs.)			(in Rs.)
	ICICI Prudential Equity & Debt fund - Direct	-	-	-	10	3,94,706.74	88.26
	Plan - Dividend (Erstwhile ICICI Prudential
	Balanced Fund)
	ICICI Prudential Equity & Debt Fund -	10	77,294.80	142.04	-	-	-
	Direct Plan - Growth
	Kotak Standard Multicap Fund - Regular	-	-	-	10	3,63,612.17	61.84
	Plan - Dividend (Erstwhile Kotak Select
	Focus Fund)
	Kotak Flexicap Fund - Regular Plan	10	2,28,954.98	102.94	-	-	-
	(Erstwhile Kotak Standard Multicap Fund -
	Regular Plan - Growth)
	Kotak Flexicap Fund - Direct Growth	10	1,83,549.60	89.44	-	-	-
	(Erstwhile Kotak Standard Multicap Fund -
	Direct Plan - Growth)
	SBI Blue Chip Fund - Regular Plan -Dividend	-	-	-	10	2,71,815.81	46.01
	SBI Blue Chip Fund - Regular Plan -Growth	10	1,54,627.20	80.08	-	-	-
	ICICI Prudential Multi Cap Fund - Regular	-	-	-	10	2,18,254.51	30.56
	Plan - Dividend
	ICICI Prudential Multi Cap Fund - Regular	10	15,330.30	54.81	-	-	-
	Plan - Growth
	Axis Focused 25 Fund - Direct Plan -	10	2,15,649.47	89.30	-	-	-
	Growth
	Franklin India Focused Equity Fund -Direct	-	-	-	10	2,02,815.07	35.55
	- Dividend Payout (Erstwhile Franklin India
	High Growth Companies Fund)
	Kotak Equity Arbitrage Fund - Direct Plan	-	-	-	10 18,09,692.72		202.18
	- Dividend
	Kotak Equity Arbitrage Fund - Direct Plan	-	-	-	10	4,99,316.93	145.15
	-Growth
	Avendus Enhanced Return Fund			378.52			239.16
	Mirae Asset Large Cap Fund - Regular	10	1,15,442.88	75.62	10	1,15,442.88	44.83
	Plan - Growth
	UTI Arbitrage Fund - Direct Plan - Growth	10	4,39,638.95	125.10	-	-	-
	UTI Arbitrage Fund - Direct Plan - Dividend	-	-	-	10	8,75,513.64	149.13
	Payout
	ICICI Prudential Equity Arbitrage Fund -	-	-	-	10 13,69,590.97		199.55
	Direct Plan - Dividend
				1,395.67			1,459.30
**iii. **	Capital venture fund (unquoted)
	Zodius Technology Fund	10	6,91,017.14	69.79	10	7,61,401.14	93.65
	IIFL Special Opportunities Fund Series 4	8.45 25,25,059.34		237.17	10 25,25,059.34		208.45
	India Small and Mid Cap Gems fund	-	-	-	100	1,00,000.00	81.59
	India Whizdom Fund			20.86			161.11
				327.82			544.80
**iv. **	Investment in compulsory convertible
	preference shares (Unquoted)
	SRL 142 Holdings Limited	$1	18,00,000	1,617.10	$1	18,00,000	1383.43
	(These preference shares are fully paid up and
	will be compulsory converted into equity shares
	after eight years from the date of issue.)
				1,617.10			1,383.43
**v. **	Investment in Equity shares (Unquoted)
	Lithium Urban Technologies Private Limited	10	9,029	256.51	10	9,029	256.51
				256.51			256.51
				4,124.56			3,919.80
**C. **	Investments carried at Fair value
	through proft and loss (Unquoted)
	LIC MF Bond Fund - Growth Plan	10	7,29,047.18	413.63	10	7,29,047.18	392.46

127

		As at 31 March, 2021	As at 31 March, 2021		As at 31 March,2020	As at 31 March,2020	As at 31 March,2020
		Face value per	Numbers	(Rs. /	Face value per		Numbers	(Rs. /
		share / unit		lakh)	share /	unit		lakh)
		(in Rs.)			(in Rs.)
	Kotak Credit Risk Fund - Direct - Growth	-	-	-		10 10,63,925.99		249.60
	Plan (Erstwhile Kotak Income Opportunities
	Fund)
	Kotak Floating Rate Fund Direct Plan Growth	1,000	22,780.27	263.58		-	-	-
	IDFC Banking & PSU Debt Fund - Direct	10	5,25,896.44	102.76		-	-	-
	-Plan- Growth
	Aditya Birla Sun Life Banking & PSU Debt	100	1,07,799.51	312.32		-	-	-
	fund- Growth - Direct Plan (Erstwhile Aditya
	Birla Sun Life Treasury Optimizer Plan)
	ICICI Prudential Real Estate AIF-1	100	1,42,204.00	142.20		100	1,68,328.00	168.33
	UTI-Fixed Term Income Fund - Series	-	-	-		10 20,00,000.00		221.08
	XXVIII-II (1210 Days) - Direct - Growth Plan
	UTI Fixed Term Income Fund - Series XXVIII-	-	-	-		10 30,00,000.00		337.91
	XIII ( 1134 Days) - Direct Plan - Growth
	IDFC Bond Fund - Short Term - Direct Plan	10	9,78,037.66	458.33		-	-	-
	– Growth
	SBI Short term Debt Fund - Direct Plan -	10 17,58,701.23		457.77		-	-	-
	Growth
	Axis Short Term Fund - Direct Plan - Growth	10 20,10,919.44		510.81		-	-	-
				2,661.40				1,369.38
**D. **	Investments carried at amortised cost
	(Unquoted)
i.	Tax free Bonds
	7.40% IIFCL (HNI) 22-Jan-33 (Tax Free)	1,000	18,250	186.54	1,000		18,250	186.88
	8.26% IIFCL 23-Aug-28 (Tax Free)	10,00,000	8	84.83	10,00,000		8	85.52
				271.37				272.40
**ii. **	Investment in preference shares
	7.5% Cumulative Redeemable Preference	-	-	-	1000		50,000.00	500.00
	Shares of Tata Capital Limited
	(Cumulative redeemable preference shares
	are fully paid up and are redeemable at par
	after 7 years from the date of allotment.)
				-				500.00
**iii. **	Corporate and psu bonds
	11.80% SREI Equipment Finance Limited	10,00,000	1.00	9.81		-	-	-
	10.25% SREI Equipment Finance Ltd	1,000	1500.00	14.49		-	-	-
	9.90% IFCI Limited	25,000	8.00	2.18		-	-	-
	9.48% West Bengal Financial Corporation	1,00,000	2.00	2.01		-	-	-
				28.49
				299.86				772.40
				8,363.93				7,391.18
	Measured at fair value through proft or loss			2,661.40				1,369.38
	Measured at amortised cost			299.86				772.40
	Measured at fair value through other			4,124.56				3,919.80
	comprehensive income
	Measured at cost			1,278.11				1,329.60
				8,363.93				7,391.18
a.	Aggregate amount of quoted investments and market value thereof			527.46				275.76
b.	Aggregate amount of unquoted investments	(including mutual funds)		7,836.47				7,115.42
	Notes:
i.	Investment in Joint Venture		Registered	Ofce			% of shareholding
							31 March	31 March
							2021	2020
	Sun Mobility EV Infra Private Limited
	(formerly known as Alberieth EV Services	11, Community Centre, Saket, New Delhi -110017
	Private Limited)
	Equity shares						50%	50%
	0.001% Optionally covertible redeemable						100%	100%
	preference shares

128

6 Loans

Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Unsecured, considered good) (at amortised cost) Loan to employees 1.48 0.53 17.57 17.57 1.48 0.53 17.57 17.57 Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) 7 Income tax assets/liabilities Income tax assets (Net) Income tax paid (Net of provision for income tax) 281.68 81.41 - 0.29 281.68 81.41 - 0.29 8 Other fnancial assets Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) Fixed deposits with banks Deposits with banks and government tax authorities paid under protest and pledged 54.17 21.18 - - 54.17 21.18 - - Deposits Security deposits - considered good 46.50 40.16 98.74 42.25 46.50 40.16 98.74 42.25 Others Deposit with government tax authorities under protest [refer note 36(a)] - - 25.70 477.36 Interest accrued on fnancial assets carried at amortised cost: - fxed deposits with banks 0.67 0.57 5.62 6.87 - other deposits - - 1.26 0.92 - other investments - - 7.82 6.59 Export benefts receivable - - 13.14 9.53 Other receivable - - 0.31 0.61 0.67 0.57 53.85 501.88 101.34 61.91 152.59 544.13 9 Other assets Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) Capital advances 223.76 204.44 - - Advance to suppliers - - 34.57 42.45 Balances with statutory / government authorities - - 485.47 451.52 Prepaid expenses (refer note 39) 5.94 8.64 83.56 80.15 Advances to employees - - 15.23 13.63 Contract assets - - - 43.21 Other advances - - 3.59 4.42 229.70 213.08 622.42 635.38	Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Unsecured, considered good) (at amortised cost) Loan to employees 1.48 0.53 17.57 17.57 1.48 0.53 17.57 17.57 Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) 7 Income tax assets/liabilities Income tax assets (Net) Income tax paid (Net of provision for income tax) 281.68 81.41 - 0.29 281.68 81.41 - 0.29 8 Other fnancial assets Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) Fixed deposits with banks Deposits with banks and government tax authorities paid under protest and pledged 54.17 21.18 - - 54.17 21.18 - - Deposits Security deposits - considered good 46.50 40.16 98.74 42.25 46.50 40.16 98.74 42.25 Others Deposit with government tax authorities under protest [refer note 36(a)] - - 25.70 477.36 Interest accrued on fnancial assets carried at amortised cost: - fxed deposits with banks 0.67 0.57 5.62 6.87 - other deposits - - 1.26 0.92 - other investments - - 7.82 6.59 Export benefts receivable - - 13.14 9.53 Other receivable - - 0.31 0.61 0.67 0.57 53.85 501.88 101.34 61.91 152.59 544.13 9 Other assets Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) Capital advances 223.76 204.44 - - Advance to suppliers - - 34.57 42.45 Balances with statutory / government authorities - - 485.47 451.52 Prepaid expenses (refer note 39) 5.94 8.64 83.56 80.15 Advances to employees - - 15.23 13.63 Contract assets - - - 43.21 Other advances - - 3.59 4.42 229.70 213.08 622.42 635.38	Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Unsecured, considered good) (at amortised cost) Loan to employees 1.48 0.53 17.57 17.57 1.48 0.53 17.57 17.57 Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) 7 Income tax assets/liabilities Income tax assets (Net) Income tax paid (Net of provision for income tax) 281.68 81.41 - 0.29 281.68 81.41 - 0.29 8 Other fnancial assets Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) Fixed deposits with banks Deposits with banks and government tax authorities paid under protest and pledged 54.17 21.18 - - 54.17 21.18 - - Deposits Security deposits - considered good 46.50 40.16 98.74 42.25 46.50 40.16 98.74 42.25 Others Deposit with government tax authorities under protest [refer note 36(a)] - - 25.70 477.36 Interest accrued on fnancial assets carried at amortised cost: - fxed deposits with banks 0.67 0.57 5.62 6.87 - other deposits - - 1.26 0.92 - other investments - - 7.82 6.59 Export benefts receivable - - 13.14 9.53 Other receivable - - 0.31 0.61 0.67 0.57 53.85 501.88 101.34 61.91 152.59 544.13 9 Other assets Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) Capital advances 223.76 204.44 - - Advance to suppliers - - 34.57 42.45 Balances with statutory / government authorities - - 485.47 451.52 Prepaid expenses (refer note 39) 5.94 8.64 83.56 80.15 Advances to employees - - 15.23 13.63 Contract assets - - - 43.21 Other advances - - 3.59 4.42 229.70 213.08 622.42 635.38	Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Unsecured, considered good) (at amortised cost) Loan to employees 1.48 0.53 17.57 17.57 1.48 0.53 17.57 17.57 Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) 7 Income tax assets/liabilities Income tax assets (Net) Income tax paid (Net of provision for income tax) 281.68 81.41 - 0.29 281.68 81.41 - 0.29 8 Other fnancial assets Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) Fixed deposits with banks Deposits with banks and government tax authorities paid under protest and pledged 54.17 21.18 - - 54.17 21.18 - - Deposits Security deposits - considered good 46.50 40.16 98.74 42.25 46.50 40.16 98.74 42.25 Others Deposit with government tax authorities under protest [refer note 36(a)] - - 25.70 477.36 Interest accrued on fnancial assets carried at amortised cost: - fxed deposits with banks 0.67 0.57 5.62 6.87 - other deposits - - 1.26 0.92 - other investments - - 7.82 6.59 Export benefts receivable - - 13.14 9.53 Other receivable - - 0.31 0.61 0.67 0.57 53.85 501.88 101.34 61.91 152.59 544.13 9 Other assets Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) Capital advances 223.76 204.44 - - Advance to suppliers - - 34.57 42.45 Balances with statutory / government authorities - - 485.47 451.52 Prepaid expenses (refer note 39) 5.94 8.64 83.56 80.15 Advances to employees - - 15.23 13.63 Contract assets - - - 43.21 Other advances - - 3.59 4.42 229.70 213.08 622.42 635.38	Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Unsecured, considered good) (at amortised cost) Loan to employees 1.48 0.53 17.57 17.57 1.48 0.53 17.57 17.57 Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) 7 Income tax assets/liabilities Income tax assets (Net) Income tax paid (Net of provision for income tax) 281.68 81.41 - 0.29 281.68 81.41 - 0.29 8 Other fnancial assets Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) Fixed deposits with banks Deposits with banks and government tax authorities paid under protest and pledged 54.17 21.18 - - 54.17 21.18 - - Deposits Security deposits - considered good 46.50 40.16 98.74 42.25 46.50 40.16 98.74 42.25 Others Deposit with government tax authorities under protest [refer note 36(a)] - - 25.70 477.36 Interest accrued on fnancial assets carried at amortised cost: - fxed deposits with banks 0.67 0.57 5.62 6.87 - other deposits - - 1.26 0.92 - other investments - - 7.82 6.59 Export benefts receivable - - 13.14 9.53 Other receivable - - 0.31 0.61 0.67 0.57 53.85 501.88 101.34 61.91 152.59 544.13 9 Other assets Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) Capital advances 223.76 204.44 - - Advance to suppliers - - 34.57 42.45 Balances with statutory / government authorities - - 485.47 451.52 Prepaid expenses (refer note 39) 5.94 8.64 83.56 80.15 Advances to employees - - 15.23 13.63 Contract assets - - - 43.21 Other advances - - 3.59 4.42 229.70 213.08 622.42 635.38	Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Unsecured, considered good) (at amortised cost) Loan to employees 1.48 0.53 17.57 17.57 1.48 0.53 17.57 17.57 Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) 7 Income tax assets/liabilities Income tax assets (Net) Income tax paid (Net of provision for income tax) 281.68 81.41 - 0.29 281.68 81.41 - 0.29 8 Other fnancial assets Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) Fixed deposits with banks Deposits with banks and government tax authorities paid under protest and pledged 54.17 21.18 - - 54.17 21.18 - - Deposits Security deposits - considered good 46.50 40.16 98.74 42.25 46.50 40.16 98.74 42.25 Others Deposit with government tax authorities under protest [refer note 36(a)] - - 25.70 477.36 Interest accrued on fnancial assets carried at amortised cost: - fxed deposits with banks 0.67 0.57 5.62 6.87 - other deposits - - 1.26 0.92 - other investments - - 7.82 6.59 Export benefts receivable - - 13.14 9.53 Other receivable - - 0.31 0.61 0.67 0.57 53.85 501.88 101.34 61.91 152.59 544.13 9 Other assets Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) Capital advances 223.76 204.44 - - Advance to suppliers - - 34.57 42.45 Balances with statutory / government authorities - - 485.47 451.52 Prepaid expenses (refer note 39) 5.94 8.64 83.56 80.15 Advances to employees - - 15.23 13.63 Contract assets - - - 43.21 Other advances - - 3.59 4.42 229.70 213.08 622.42 635.38
					17.57
	Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh)		Non-current	Current
	Income tax assets/liabilities Income tax assets (Net) Income tax paid (Net of provision for income tax) 281.68 81.41 - 0.29 281.68 81.41 - 0.29 Other fnancial assets
	Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh)	Non-current Current
	Fixed deposits with banks Deposits with banks and government tax authorities paid under protest and pledged 54.17 21.18 - - 54.17 21.18 - - Deposits Security deposits - considered good 46.50 40.16 98.74 42.25 46.50 40.16 98.74 42.25 Others Deposit with government tax authorities under protest [refer note 36(a)] - - 25.70 477.36 Interest accrued on fnancial assets carried at amortised cost: - fxed deposits with banks 0.67 0.57 5.62 6.87 - other deposits - - 1.26 0.92 - other investments - - 7.82 6.59 Export benefts receivable - - 13.14 9.53 Other receivable - - 0.31 0.61 0.67 0.57 53.85 501.88 101.34 61.91 152.59 544.13 Other assets				-
					-
					42.25
					42.25
	Non-current Current As at 31 March, 2021 As at 31 March, 2020 As at 31 March, 2021 As at 31 March, 2020 (Rs. / lakh) (Rs. / lakh) (Rs. / lakh) (Rs. / lakh)	Non-current Current
	Capital advances 223.76 204.44 - - Advance to suppliers - - 34.57 42.45 Balances with statutory / government authorities - - 485.47 451.52 Prepaid expenses (refer note 39) 5.94 8.64 83.56 80.15 Advances to employees - - 15.23 13.63 Contract assets - - - 43.21 Other advances - - 3.59 4.42 229.70 213.08 622.42 635.38
					635.38

129

10 Inventories

Inventories
	As at	As at
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Raw materials	1,206.94	637.65
[including stock in transit Rs. 66.58 lakh (previous year Rs. Nil)]
Packing materials	17.38	10.03
Stores and spare parts	112.83	107.70
Work-in-progress	251.15	273.15
Finished goods	1,988.16	2,645.24
Traded goods	22.99	21.02
	3,599.45	3,694.79

11 Investments

**11 **	Investments
		As at 31 March, 2021			As	at 31 March, 2020
		Face	Numbers	(Rs. /	Face	Numbers		(Rs. /
		value per		lakh)	value per			lakh)
		unit			unit
		(in Rs.)			(in Rs.)
	Current
	Investments carried at Fair value
	through proft and loss
	Investments in Mutual Funds (Unquoted)
	Reliance Mutual Fund ETF Liquid Bees	1,000	3.17	0.03	1,000		3.17	0.03
	Aditya Birla Sun Life Banking & PSU Debt	-	-	-	100	36,790.60		98.22
	fund - Growth - Direct Plan (Erstwhile
	Aditya Birla Sun Life Treasury Optimizer
	Plan)
	UTI Liquid Cash Plan - Direct Plan - Growth	1,000	3,711.11	125.08	-		-	-
	UTI Overnight Fund - Direct - Growth Plan	-	-	-	1,000	3,658.48		100.03
	UTI-Fixed Term Income Fund - Series	10 20,00,000.00		235.30	-		-	-
	XXVIII-II (1210 Days) - Direct - Growth Plan
	UTI Fixed Term Income Fund - Series XXVIII-	10 30,00,000.00		371.71	-		-	-
	XIII ( 1134 Days) - Direct Plan - Growth
	UTI Fixed Term Income Fund - Series XXVII	-	-	-	10	30,00,000.00		336.61
	- VI (1113 Days) - Direct - Growth Plan
				732.12				534.89
Aggregate amount of unquoted investments				732.12				534.89
12	Trade receivables
						As at		As at
					31 March, 2021		31 March, 2020
					(Rs.	/ lakh)		(Rs. / lakh)
	Trade Receivables considered good - Secured					83.58		70.86
	Trade Receivables considered good - Unsecured				2,862.39			3,693.19
	Trade Receivables - credit impaired					104.21		81.89
					3,050.18			3,845.94
	Allowances for credit losses (doubtful debts)					104.21		81.89
					2,945.97			3,764.05

Notes:

a. The credit period generally allowed on sales of goods and services varies from 21 to 60 days

• b. The allowances for credit losses (doubtful debts) at the reporting period are analysed by the Group on case to case basis.

• c. Movement in the credit loss allowances:

130

	As at	As at
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Balance at the beginning of the year	81.89	42.03
Movement in expected credit loss allowance on trade receivables	22.32	39.86
Balance at the end of the year	104.21	81.89

• d. The concentration of credit risk is limited due to the fact that the customer base is large and unrelated.

13 Cash and cash equivalents

		As at	As at
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
Balances with banks:
-	On current accounts	12.47	92.93
-	On cash credit accounts	162.22	39.26
		174.69	132.19
Cash on hand		3.89	2.73
		178.58	134.92

Note:

Cash credit from banks are secured by first pari passu charge on entire current assets including stocks lying at the Parent Company’s factory at Nalagarh and other stock points, on book debts and on entire fixed assets of the Parent Company - present and future.

The Group has not utilised Cash Credit as on 31 March, 2021 and 31 March, 2020.

14 Bank balances other than above

		As at	As at
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
Other bank balances:
-	Deposits with remaining maturity for less than 12 months (Deposits pledged with	130.16	156.15
	banks and other government authorities)
-	Unpaid dividend accounts	55.29	56.82
-	Trust and Retention account*	-	135.03
		185.45	348.00

*Amounts held under the current account opened as per Trust and Rentention Account (TRA) agreement, signed among the step down subsidiary, the lender and the TRA Bank, will be available to the Group as per the terms specified in the agreement.

15 Equity share capital

Equity share capital
	As at 31 March, 2021		As at 31	March,2020
	No. of shares	(Rs. / lakh)	No. of shares	(Rs. / lakh)
Authorised shares
Equity shares of Rs. 2 each	3,50,00,000	700.00	3,50,00,000	700.00
Issued, subscribed and fully paid-up shares
Equity shares of Rs. 2 each fully paid up	2,62,50,000	525.00	2,62,50,000	525.00

131

Notes:

a. Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting year

	As at 31 March, 2021	As at 31 March, 2021	As at 31 March,	2020
	No. of shares	(Rs. / lakh)	No. of shares	(Rs. / lakh)
Equity shares
At the beginning of the year	2,62,50,000	525.00	2,62,50,000	525.00
Movement during the year	-	-	-	-
Outstanding at the end of the year	2,62,50,000	525.00	2,62,50,000	525.00

b. Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

c. Detail of shareholders holding more than 5% shares

	As at 31 March, 2021 As at 31 March,2020
	No. of shares (% holding) No. of shares (% holding)
Equity shares of Rs. 2 each fully paid i. Mrs. Jeet Khemka 87,60,005 33.37% 87,65,005 33.39% ii. Khemka Aviation Private Limited 62,72,325 23.89% 62,72,325 23.89%

16 Other equity

		As at	As at
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
i.	Capital reserve
	a. Proft on re-issue of forfeited shares	0.29	0.29
		0.29	0.29
ii.	Securities premium	450.00	450.00
iii.	General reserve	1,148.80	1,148.80
iv.	Retained earnings
	Balance at the beginning of year	16,529.14	16,417.50
	Proft for the year	253.62	1,345.42
	Final dividend (amount per share Rs. Nil, previous year Rs. 1.50)	-	(393.75)
	Interim dividend (amount per share Re.0.90, previous year Rs. 2.40)	(236.25)	(630.00)
	Tax on dividends	(0.87)	(210.03)
	Balance at the end of year	16,545.64	16,529.14
v.	Other comprehensive income
	Balance at the beginning of year	72.13	540.55
	Gain/(loss) on change in fair valuation of equity instruments	893.61	(482.63)
	Gain/(loss) on sale of equity and equity related instruments	207.07	(13.86)
	Re-measument gain on defned beneft obligations (net)	(13.08)	14.36
	Income tax relating to items that will not be reclassifed to proft or loss	0.20	6.54
	Deferred tax	(58.81)	7.17
	Balance at the end of year	1,101.12	72.13
	Total other equity	19,245.85	18,200.36
Notes

(i) Capital reserve

Capital reserve represents the amount on account of forfeiture of equity shares of the Company.

(ii) Securities premium

Securities Premium represents amount received on issue of shares in excess of the par value.

132

(iii) General reserves

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. Central cash subsidy amounting to Rs. 30 lakh received for the installation of plant at Nalagarh in 2006 is included in general reserve.

However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

(iv) Retained earnings

Retained earnings represent the amount of accumulated earnings of the Group.

(v) Other comprehensive income

It comprises amounts that will not be re-classifed to profit & loss and are eligible to be re-classified in retained earning.

17 Borrowings

			Non-current	Non-current
			As at	As at
			31 March, 2021	31 March, 2020
			(Rs. / lakh)	(Rs. / lakh)
I.	Secured - at amortised cost
	i.	Term loan
		- Secured term loan from fnancial institutions (refer note)	-	1,086.69
		Less:Current maturities of long term debt	-	95.96
			-	990.73

Note:

-Particulars of security and details of secured term loan from financial institution :-

• i. Term loan from Indian Renewable Energy Development Agency Ltd (IREDA) is secured 100% by way of exclusive first charge on all movable and immovable assets of step down subsidiary, pertaining to 3.00 MW (1 X 3 MW) Solar Photovoltaic Grid Connected Power Project set up at Village Madanayakahalli, Taluka Chitradurg, District Chitradurga, in the State of Karnataka (Project No. 2245).

• ii. Exclusive charge on the step down subsidiary company’s movables, including machinery, machinery spares, tools and accessories, pertaining to all other projects funded by IREDA.

• iii. Assignment of usage rights derived under the lease deed of the project land and mortgage of other immovable assets pertaining to the project in favour of IREDA.

• iv. Exclusive charge on present & future receivables from power generation from the Project and other monies credited/ to be credited in TRA and/or held anywhere else.

• v. Pledge of 100% step down subsidiary’s shares held by the Promoters till the existence of loan. In addition to this, Corporate Guarantee has been given by Subsidiary Company “SUN-AMP Solar India Pvt. Ltd.”

• vi. The Bank Guarantee of Rs 258.00 lakh equivalent to 20% of sanctioned term loan of Rs 1290.00 lakh, which was given by Parent Company (Indag Rubber Limited) has released by IREDA vide letter dt. 14.11.2019 on fulfilment of financial covenants as per facility agreement.

vii. Rate of interest : 10.95% p.a.

The Loan was sanctioned on 06 September 2016, repayble in 48 quarterly installments commencing from 30 June 2018 as per details given below:

Terms of Repayment:	(Amount in Lakh)
Next 1 year	95.96
1-2 years	95.96
2-3 years	95.96
3-4 years	95.96
Beyond 4 years	606.89
Total loan to be repaid	990.73

The Amount of borrowing has been recognised on Effective Interest Rate (EIR) basis as per Ind As 109.

133

18 Deferred tax liabilities (Net)

Deferred tax liabilities (Net)
			As at	As at
			31 March, 2021	31 March, 2020
			(Rs. / lakh)	(Rs. / lakh)
a. Deferred tax liabilities			361.29	311.03
b. Deferred tax assets			(78.20)	(62.30)
			283.09	248.73
	Opening Balance	Recognised in Proft and	Recognised in other	Closing balance
		loss	comprehensive
			Income
	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
As at 31 March, 2021
Deferred tax (assets) / liabilities in relation to :
Property, plant and equipment & other intangible	235.51	(16.63)	-	218.88
assets
Fair value change in investments	75.52	8.08	58.81	142.41
Provisions for doubtful debts	(20.61)	(5.62)	-	(26.23)
Provision for employee benefts	(24.18)	(10.22)	-	(34.40)
Tax impact of expenses chargeable in the fnancial	(17.51)	(0.06)	-	(17.57)
statements but allowable under the Income Tax
Act, 1961 in future years
Net Deferred (assets) / liabilities	248.73	(24.45)	58.81	283.09
As at 31 March 2020
Deferred tax (assets) / liabilities in relation to :
Property, plant and equipment & other intangible	306.96	(71.45)	-	235.51
assets
Fair value change in investments	101.22	(18.53)	(7.17)	75.52
Provisions for doubtful debts	(12.24)	(8.37)	-	(20.61)
Provision for employee benefts	(24.30)	0.12	-	(24.18)
Tax impact of expenses chargeable in the	(17.19)	(0.32)	-	(17.51)
fnancial statements but allowable under the
Income Tax Act, 1961 in future years
Net Deferred (assets) / liabilities	354.45	(98.55)	(7.17)	248.73

19 Trade payables

Tradepayables
	As at	As at
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Total outstanding dues of micro enterprises and small enterprises (refer note 37)	44.54	361.79
Total outstanding dues of creditors other than micro enterprises and small enterprises	1,477.77	1,218.78
	1,522.31	1,580.57

134

20 Other financial liabilities

Other fnancial liabilities
	As at	As at
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Current
Current maturities of long term debt (refer note 17)	-	95.96
Unpaid dividend (refer note below)	55.29	56.82
Payable towards capital goods	23.82	17.24
Retention money and security deposits	235.60	217.75
Interest on sales tax/gst payable	5.20	5.20
Interest payable on security deposits	14.48	14.78
Other payables	-	3.89
	334.39	411.64

Note:

Unpaid dividend is credited to Investor Education and Protection Fund as and when due.

21 Provisions

		Non - Current	Non - Current	Current	Current
		As at	As at	As at	As at
		31 March, 2021	31 March, 2020	31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)	**(Rs. / lakh) **	(Rs. / lakh)
	Provision for employee benefts
	Provision for gratuity	-	-	24.70	-
	Provision for leave encashment	87.92	69.15	24.08	26.94
		87.92	69.15	48.78	26.94
22	Other liabilities
	Advances from customers	-	-	23.98	23.90
	Others statutory dues payables (refer note below)	-	-	155.67	124.34
	Other payables	-	-	45.94	36.99
		-	-	225.59	185.23

Note:

Others statutory dues majorly comprises of GST and TDS.

23 Revenue from operations

Revenue from operations
	Year ended	Year ended
	31 March,	31 March, 2020
	2021
	(Rs. / lakh)	(Rs. / lakh)
Sale of products:
Manufactured goods	16,892.62	18,582.02
Traded goods	43.97	29.00
	16,936.59	18,611.02
Less: Rebates and claims	2.83	6.73
	16,933.76	18,604.29
Sale of services	14.53	24.76
Other operating revenue:
Scrap sales	30.35	43.82
Export benefts	5.79	4.52
Revenue from operations	16,984.43	18,677.39

135

24 Other income

24	Other income
			Year ended	Year ended
		31	March, 2021	31 March, 2020
			(Rs. / lakh)	(Rs. / lakh)
	Interest income earned on fnancial asset recognised at amortised cost:-
	- Bank deposits		11.31	12.17
	- Investment in debt instruments		23.20	26.09
	- Other fnancial assets		21.97	10.87
	Dividend income :-
	- Dividend from investments valued at FVTPL		-	0.23
	- Dividend from investments valued at OCI		186.18	244.61
	- Dividend from investments valued at amortised cost		-	41.10
	Gain/(loss) on disposal of debt instruments at FVTPL		28.69	14.86
	Gain on disposal of property, plant and equipment		-	2.64
	Gain/(loss) arising on fnancial assets designated through FVTPL		121.22	95.94
	Gain on foreign exchange fuctuations (net)		-	4.86
	Provision for doubtful advance written back		-	0.17
	Provision /Liabilities no longer required written back		4.89	0.03
	Other non-operating income		6.49	4.29
			403.95	457.86
25	Cost of materials consumed
			Year ended	Year ended
		31	March, 2021	31 March, 2020
			(Rs. / lakh)	(Rs. / lakh)
	Inventory at the beginning of the year		637.65	1,289.93
	Add : Purchases		10,622.65	11,984.95
	Less : Inventory at the end of the year		1,206.94	37.65
	Cost of materials consumed		10,053.36	12,637.23
26	Changes in inventories of fnishedgoods, stock-in-trade and work inprogress
			Year ended	Year ended
		31	March, 2021	31 March, 2020
			(Rs. / lakh)	(Rs. / lakh)
	Inventories at the end of the year
	Traded goods		22.99	21.02
	Work-in-progress		251.15	273.15
	Finished goods		1,988.16	2,645.24
			2,262.30	2,939.41
	Inventories at the beginning of the year
	Traded goods		21.02	21.71
	Work-in-progress		273.15	227.64
	Finished Goods		2,645.24	2,149.27
			2,939.41	2,398.62
	(Increase)/decrease in inventories		677.11	(540.79)
	Insurance claim due to goods destroyed by fre or during transit		3.61	5.35
			673.50	(546.14)

136

27	Employee benefts expense
		Year ended	Year ended
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
	Salaries, wages and bonus	1,923.02	1,880.33
	Contribution to provident and other funds	107.97	115.08
	Gratuity expense (refer note 39)	35.91	33.07
	Staf welfare expenses	28.35	31.33
		2,095.25	2,059.81

		2,095.25	2,059.81
28	Depreciation and amortisation expense
		Year ended	Year ended
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
	Depreciation of property, plant and equipment	317.43	362.45
	Amortisation of intangible assets	11.12	11.87
		328.55	374.32
29	Finance costs
		Year ended	Year ended
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
	Interest expense	20.23	20.00
	Other borrowing costs	6.35	5.00
		26.58	25.00
30	Other expenses

Other expenses
	Year ended	Year ended
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Consumption of stores and spare parts	50.60	55.77
Packing expenses	234.89	224.46
Power and fuel	390.52	448.29
Repairs and maintenance:
-Plant & machinery	62.26	85.77
-Buildings	21.32	15.17
-Others	44.46	64.70
Rent (refer note 35)	193.39	195.95
Rates and taxes	13.57	11.98
Insurance	63.12	66.50
Travelling and conveyance	102.68	235.31
Communication costs	33.99	29.67
Printing and stationery	9.02	12.52
Legal and professional fees	262.17	245.95
Payments to statutory auditors (refer details below)	30.84	26.49
Freight and forwarding charges	525.44	638.84
Provision for doubtful debts	22.32	39.86
Vehicle running and maintenance	11.43	19.05
Loss on disposal/discard of property, plant and equipment	10.37	-
Loss on foreign exchange fuctuation	0.55	-
Security and other service charges	75.85	69.35
Service charges to C and F agents	72.52	77.38
Advertisement and sales promotion	130.14	83.43
Bad debt written of	1.36	1.36
Commission on sales	34.77	63.51
Bank charges	15.96	12.81
Donation	1.00	0.08
CSR expenditure (refer note 42)	35.62	57.39

137

30 Other expenses contd...

Other expenses contd...
	Year ended	Year ended
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Miscellaneous expenses	54.87		117.89
	2,505.03		2,899.48
Payments to statutory auditor
As auditor:
Audit fees	21.05		22.38
Tax audit fees	2.72		3.00
Certifcation	0.50		0.30
GST Audit fees	6.00		-
Reimbursement of expenses	0.57		0.81
	30.84		26.49

31 Earnings per equity share

Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders of the Parent Company by the weighted average number of equity shares outstanding during the period. The Parent Company did not have any potentially dilutive securities in any of the years presented.

	Year ended	Year ended
	31 March, 202131 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Net proft as per statement of proft and loss (continuing operations)	223.06	1,316.60
Net proft as per statement of proft and loss (discontinued operations)	30.56	28.82
No. of equity shares at the beginning and closing of the year	2,62,50,000	2,62,50,000
Weighted average number of equity shares for calculating basic and diluted EPS	2,62,50,000	2,62,50,000
Basic and Diluted earnings per share (Rs.) - Continuing operations	0.85	5.02
[Nominal value of shares Rs.2 ]
Basic and Diluted earnings per share (Rs.) - Discontinued operations	0.12	0.11
[Nominal value of shares Rs.2 ]
Basic and Diluted earnings per share (Rs.) - Continuing operations &	0.97	5.13
Discontinued operations
[Nominal value of shares Rs.2 ]

32 Income taxes Expenses Amount recognised in proft and loss

		Year ended	Year ended
		31 March, 2021 31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
A)	Income taxes
	Current tax
	For current year	113.96	447.43
	Income tax adjustment for earlier year	(2.06)	4.96
		111.90	452.39
	Deferred tax
	In respect of the current year (refer note 18)	(24.45)	(98.55)
	Income tax expense recognised in the statement of proft and loss (i)	(24.45) 87.45	(98.55) 353.84
	Other comprehensive income section
Income tax relating to items that will not be reclassifed to proft or loss
a.	Current tax	(0.20)	(6.54)
b.	Deferred tax	58.81	(7.17)
		58.61	(13.71)
		146.06	340.13
	Tax adjustment for earlier years (calculated for efective tax rates) (ii) Net Efective Tax recognised in statement of proft and loss in respect of	(2.06) 89.51	4.96 348.88
	current year (i - ii)

138

32 Income taxes Expenses contd... Amount recognised in proft and loss

		Year ended	Year ended
		31 March, 2021 31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
B)	Reconciliation of Efective Tax Rate: Proft before tax	368.97	1,725.89
	Applicable tax rate for Parent company	25.17%	25.17%
	Calculated income tax expense	92.86	434.37
	Tax efect of:
a.	Income not taxable as per applicable tax laws	(4.80)	(39.17)
b.	Non-deductible expenses	9.24	9.79
c.	Income Taxable at diferent rate/change in tax rate	(20.75)	(58.73)
d.	others	12.96	2.62
	Income tax expense as per statement of proft and loss Efective tax rate	89.51 23.70%	348.88 20.50%

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred taxes 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.

33 Related party disclosures

• 33.1 Name and relationships of related-parties:

• a. Joint Venture Company

• i. Sun Mobility EV Infra Private Limited (Formerly known as Alberieth EV Services Private Limited)

• b. Key management personnel

• i. Mr. Nand Khemka (Chairman cum Managing Director)

• ii. Mr. Shiv Vikram Khemka (Non Executive Director)

• iii. Mr. Uday Harsh Khemka (Non Executive Director)

• iv. Mr. K.K. Kapur (CEO and Whole Time Director)

• v. Mr. J.K Jain (CFO) upto September 24, 2020

• vi. Mr. Anil Bhardwaj [GM-(Accounts) & CFO] w.e.f February 17, 2021

• vii. Mrs. Manali D. Bijlani (CS)

• viii. Ms. Bindu Saxena (Independent Director)

• ix. Mr. R Parameswar (Independent Director)

• x. Mr. P.R. Khanna (Independent Director)

• xi. Mr. Harjiv Singh (Independent Director)

• c. Relatives of key management personnel

• i. Mrs. Jeet Khemka, wife of Mr. Nand Khemka

• ii. Mrs. Urvashi Khemka, wife of Mr. Shiv Vikram Khemka

• iii. Mrs. Nitya Mohan Khemka, wife of Mr. Uday Harsh Khemka

• d. Enterprises owned or significantly influenced by key management personnel or their relatives (either individually or with others)

• i. Unipatch Rubber Limited

• ii. Khemka Aviation Private Limited

• iii. Nand and Jeet Khemka Foundation

• iv. Sun Securities Limited

• v. Sun London Limited

• vi. Youth Reach

• vii. SRL 142 Holdings Limited

• viii. The Nabha Foundation

• ix. Sun Mobility Private Limited

• x. Hooghly Holdings Private Limited

• xi. M P Flour Mills Private Limited

• e. Affiliate Entities

• i. SUN Alternate Energy Private Limited

139

2 Joint Venture Company

Related party transactions :

33.2 The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis:

• 1 Enterprises owned or significantly influenced by key management personnel or their relatives (either individually or with others)

ted party transactions : The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)	ted party transactions : The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)	ted party transactions : The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)	ted party transactions : The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)	ted party transactions : The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)	ted party transactions : The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)	ted party transactions : The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis: Enterprises owned or signifcantly infuenced by key management personnel or their relatives (either individually or with others)
(Rs /Lakh)
Particulars	Year ended		Year ended		Year ended
	31-Mar-21	31-Mar-20	31-Mar-21	31-Mar-20	31-Mar-21	31-Mar-20
Name ofparties :	Sale ofgoods		Purchase ofgoods		Rentpaid
- Unipatch Rubber Limited	129.72	158.91	3.81	0.90	-	-
- Khemka Aviation Private Limited	-	-	-	-	83.25	90.80
- HooghlyHoldings Private Limited	-	-	-	-	43.29	31.20
Name of parties :	Reimbursement of expenses received		Dividend paid		CSR expenditure
- Unipatch Rubber Limited	-	-	10.69	46.31	-	-
- Khemka Aviation Private Limited	0.62	1.47	56.45	244.62	-	-
- Nand and Jeet Khemka Foundation	0.49	0.71	-	-	-	-
- The Nabha Foundation	-	-	-	-	22.00	40.00
- Youth Reach	0.27	0.92	-	-	8.00	13.00
- Others	-	-	4.62	20.01	-	-
Name of Parties: Reimbursement of Expenses Paid Sale of services - Khemka Aviation Private limited 1.32 1.61 - - - HooghlyHoldings Private Limited 5.48 1.69 - - - Unipatch Rubber Limited - - - 4.93 - M P Flour Mills Private Limited 0.11 - - -
Name of Parties:	Reimbursement of Expenses Paid		Sale of services
- Khemka Aviation Private limited	1.32	1.61	-	-
- HooghlyHoldings Private Limited	5.48	1.69	-	-
- Unipatch Rubber Limited	-	-	-	4.93
- M P Flour Mills Private Limited	0.11	-	-	-

Joint Venture Company
Name of parties:	Conversion from optionally convertible redeemable preference shares to equity shares
Sun MobilityEV Infra Private Limited	-	140.00

3 Key Management Personnel

Sun MobilityEV Infra Private Limited Key Management Personnel	- 140.00	- 140.00
Particulars	Year ended		Year ended		Year ended
	31-Mar-21	31-Mar-20	31-Mar-21	31-Mar-20	31-Mar-21	31-Mar-20
Name ofparties :	Remuneration		Sitting fees		Dividendpaid
- Mr. Nand Khemka	78.75	91.77	-	-	0.17	0.72
- Mr. Uday Harsh Khemka (Joint holder with Mrs. Nitya Mohan Khemka)	-	-	-	-	11.26	48.78
- Mr. K.K. Kapur	78.97	91.77	-	-	-	-
- Mr. J.K Jain*	40.47	45.63	-	-	-	-
- Mrs. Manali D Bijlani	24.76	23.92	-	-	-	-
- Mr. Anil Bhardwaj	4.29	-	-	-	-	-
- Ms. Bindu Saxena	3.10	3.30	7.10	4.90	-	-
- Mr. P.R. Khanna	6.15	6.80	10.10	5.90	-	-
- Mr. R. Parameswar	6.15	6.80	10.90	7.70	-	-
- Mr. Harjiv Singh	2.15	1.45	6.50	2.50	-	-

*includes gratuity payment of Rs 17.78 Lakhs and leave encashment of Rs 0.99 lakhs for March 31, 2021 Remueration do not include provisions for encashable leave and gratuity, as separate actuarial valuation are not available.

140

4 Relatives of Key Management Personnel Particulars Year ended 31-Mar-21 31-Mar-20 Name ofparties : Dividendpaid - Mrs. Jeet Khemka 78.89 341.84 - Mrs. Urvashi Khemka(Joint holder with Mr. Shiv Vikram Khemka) 11.26 48.78 Related party transactions Balance outstanding atyear end. (Rs / Lakh) Particulars As at As at 31-Mar-21 31-Mar-20 31-Mar-21 31-Mar-20 1 Joint Venture Company Name of Parties : Investment in equity shares Investment in optionally convertible redeemable preference shares - Sun MobilityEV Infra Private Limited 150.00 150.00 1,200.00 1,200.00 2 Key Management Personnel Name of Parties : Remuneration - Mr. Nand Khemka - 11.94 - Mr. K.K. Kapur - 2.67 - Ms. Bindu Saxena 3.10 3.30 - Mr. P.R. Khanna 6.15 6.80 - Mr. R. Parameswar 6.15 6.80 - Mr. Harjiv Singh 2.15 1.45	Relatives of Key Management Personnel
	Particulars	Year ended
		31-Mar-21	31-Mar-20
	Name ofparties :	Dividendpaid
	- Mrs. Jeet Khemka	78.89	341.84
	- Mrs. Urvashi Khemka(Joint holder with Mr. Shiv Vikram Khemka)	11.26	48.78
	Related party transactions Balance outstanding atyear end. (Rs / Lakh)
	Particulars As at As at 31-Mar-21 31-Mar-20 31-Mar-21 31-Mar-20

3 Enterprises owned or significantly influenced by key management personnel or their relatives (either individually or with others)

or with others)
Name of Parties :	Trade Payables		Trade Receivable
- Unipatch Rubber Limited	-	-	0.02	26.26
- Khemka Aviation Private Limited	0.92	8.04	-	-
- HooghlyHoldings Private Limited	8.14	-	-	-

33.3 The Group had taken approval of the shareholders through Postal Ballot on February 22, 2019 to build maintenance, repair and overhaul facility (MRO) at Bhiwadi in two phases costing about Rs. 3000 Lakhs to be leased to a related party (Elcom Systems Pvt. Ltd.). The Group has incurred Rs. 1868.52 Lakhs till 31st March, 2021, against estimated cost of Rs. 2300 Lakhs for Phase-I. The Lease Agreement executed on October 22, 2020 for a period of 9 years and 6 months on monthly rent of Rs. 36 p.s.f. with an increase of 12% after every three years, was taken on record in the Board Meeting held on November 10, 2020 and addendum to the agreement on May 8, 2021. Since construction of the MRO facility got delayed, mainly due to Covid-19 pandemic, the lease will commence on completion of the facility. The lease period will remain unchanged for 9 years and 6 months.

34 Capital commitments

		As at	As at
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
a.	Estimated amount of contracts remaining to be executed on	343.44	1,264.51
	capital account and not provided for [net of advances of Rs.
	223.76 lakh (As at 31 March, 2020 Rs. 204.44 lakh)]

• b. The subsidiary Company “SUN-AMP Solar India Private limited” has given corporate guarantee to Indian Renewable Energy Development Limited (IREDA) against a loan of Rs 1,290.00 lakhs taken by the step down subsidiary company “Samyama Jyothi Solar Energy Private Limited”,.

• a. The Group has taken premises under lease agreements for various purposes. These are generally short term leases not involving right to use assets as defined in Ind AS 116. The amount of rent paid for leased premises amounts to Rs. 193.39 lakhs (previous year Rs. 195.95 lakhs) recognised in statement of profit & loss.

35 Leases

141

The Group has hired buildings for corporate office, lease hold land and warehouses at some of the places. Either the lease period is less than 12 months or the rent involved is not material.

• b. Transition to Ind AS 116 - Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment Rules, has notified Ind AS 116 Leases which replaces the existing lease standard, Ind AS 17 Leases, and other interpretations. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors.

36(a) Contingent liabilities

ntingent liabilities	ntingent liabilities
Claims against the Group not acknowledged as debt		As at	As at
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
i.	The Group is under litigation with the revenue authorities regarding an	159.15	159.15
	expenditure claimed by the Group arising out of an arbitration award. As
	per the Group, the expenditure should be allowed in the year the arbitrator
	has passed the award. The department is of the view that the liability
	is not accrued till the award becomes a rule of court and has therefore
	disallowed the expenditure in the AY 1998-99. During the fnancial year
	2006-2007, the Group had received a demand notice from Income tax
	authorities pursuant to the order by Income Tax Appellate Tribunal, Delhi.
	The Group is presently in appeal before the Hon’ble Delhi High Court. The
	Group has deposited Rs. 20.00 lakh against the demand which is included
	under note no. 8.
ii.	In respect of the assessment year 2017-18, the Assessing Ofcer has	20.50	20.50
	disallowed expenditure of Rs.57.66 lakh and also made additions
	amounting to Rs.1.58 lakh under Income Tax Act. The Group has fled an
	appeal before CIT (Appeals) against the order of the Assessing Ofcer
	and the proceedings are in progress. The Group has deposited a sum of
	Rs.4.11 Lakh against the demand which is included under note no.8.
iii.	In respect of the assessment year 2018-19, the Assessing Ofcer has	10.11	-
	disallowed expenditure of Rs.33.28 lakh.The Group has fled an appeal on
	13th April 2021 before CIT (Appeals) against the order of the Assessing
	Ofcer and deposited Rs 2.03 lakh under protest.
iv.	Pending labour cases, being disputed by the Group.	10.81	10.81
v.	Demand raised by the Sales Tax Authorities, being disputed by the	32.43	31.11
	Group.
vi	Entry tax demand, being disputed by the Group.	-	1244.68
vii.	Input Credit claimed by the Group but not allowed by the GST	287.61	-
	department.
	Total	520.61	1,466.25

The amount assessed as contingent liability does not include interest (except in demand raised by the sales tax authorities) that could be claimed by the counter parties.

Based on expert opinions, the management believes that the Group has a strong chance of success in the above mentioned cases and hence no provision is considered necessary in respect of the disputed amounts detailed above.

36(b) The Group has opted for the Himachal Pradesh (Legacy Cases Resolution) Scheme, 2019 on January 21, 2021 for settlement of Entry Tax matter of earlier years which was pending decision before Honorable High Court of Himachal Pradesh. Accordingly, an amount of Rs 1,244.68 lakhs which was treated as a contingent liability till the previous year ended 31 March 2020 and settlement fee of Rs. 79.34 lakhs has been charged off as expense and treated Rs. 1324.02 lakhs as exceptional item in the statement of profit and loss in financial statement for the year ended 31st March 2021 of consolidated financial statements.

142

37 Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act, 2006”)

	As at	As at
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Principal amount remaining unpaid to any supplier at the end of each accounting
year
- Trade payables	44.54	361.79
- Payable for capital creditors	3.70	-
Interest due on above.	-	-
Amount of interest paid by the Group to the suppliers in terms of section 16 of	-	-
the Act.
Amount paid to the suppliers beyond the respective due date.	-	-
Amount of interest due and payable for the period of delay in payments (which	-	-
have been paid but beyond the due date during the year) but without adding the
interest specifed under the Act.
Amount of interest accrued and remaining unpaid at the end of each accounting	-	-
year.
Amount of further interest remaining due and payable even in the succeeding	-	-
years, until such date when the interest dues as above are actually paid to the
small enterprise, for the purpose of disallowance as a deductible expenditure
under section 23 of this Act.

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.

38 Goodwill on consolidation

The Goodwill in the Consolidated Financial Statements represents the excess of the purchase consideration of investment over the Parent Company’s share in the net assets of the subsidiary - Sun Amp Solar India Private Limited and step down subsidiary -Samyama Jyothi Solar Energy Private Limited.

			(In Rs. Lakh)
	Investment In	Particulars	Amount
1	Sun Amp Solar India Private Limited	(a) Cost of Investment	295.35
	-Subsidiary	(b) Parent Company’s share in the net assets	(256.24)
		Goodwill (a-b)	39.11
2	Samyama Jyothi Solar Energy Private	(c) Cost of Investment	0.50
	Limited (Discontinued operations)
	-Step down subsidiary	(d) Subsidiary’s share in the net assets	(0.33)
		Goodwill (c-d)	0.17
3	Acquistion of shares of minority of Samayama	(e) Cost of Investment	110.00
	Jyothi Solar Energy Private limited
		(f) Minority share in the net assets of Samayama	108.43
		Jyothi Solar Energy Private limited
		Goodwill(e -f)	1.57
		Total Goodwill (1+2 + 3) as at 31 March, 2020	40.85
		- Additions during the year ended	-
		- Impairment during the year ended	-
		- Transferred to assets/disposalgroupheld for sale	1.74
		Balance as at 31 March, 2021	39.11

The recoverable amount of cash generating unit has been determined based on value in use. Value in use has been determined based on future cash flows, after considering current economic conditions and trends, estimated future operating results, growth rates and anticipated future economic conditions. As at 31 March, 2021 the estimated cash flow of solar power project has been discounted using pre tax discount rate and the recoverable amount of the same exceeds the carrying amount.

143

39 Employee benefit plans

• a. Defined contribution plans

The Group makes contribution to Provident Fund and Employee State Insurance Scheme which are defined contribution plans, for qualifying employees. Under the Schemes, the Group is required to contribute a specified percentage of the payroll costs to fund the benefits.The contributions payable to these plans by the Group are at rates specified in the rules of the schemes.

The Group also contributes towards provident fund at the rate prescribed under EPFO Scheme to a provident fund trust for some of the senior staff members. All provident fund contributions are charged to the statement of profit and loss.

• b. Defined benefit plan

Gratuity

The Group has a defined benefit gratuity plan. Employee who have completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The most recent valuation of the present value of defined benefit obligation was carried as at 31st March, 2021 in which 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 principal assumptions used for the purposes of the actuarial valuations were as follows:

	Valuation as at	Valuation as at
	31 March, 2021	31 March,2020
Expected rate of return	7.27%	7.65%
Discount rate (%)	6.80%	6.77%
Expected rate(s) of salary increase	7.00%	7.00%
Mortality rates inclusive of provision for disability	100% of IALM	100% of IALM
	(2012-14)	(2012-14)
Retirement Age (Years)	58/70	58/70
Withdrawal Rate (%) (Ages)
Upto 30 years	3.00%	3.00%
From 31 to 44 years	2.00%	2.00%
Above 44 years	1.00%	1.00%

	Year ended	Year ended
	31 March, 2021	31 March, 2020
	(Rs. / lakh)	(Rs. / lakh)
Service cost:
Total service cost	36.04	34.41
Net interest expenses	(0.13)	(1.34)
Components of defned beneft costs recognised in proft or loss	35.91	33.07
Remeasurement on the net defned beneft liability
Acturial gain/(loss) on plan assets	(2.74)	(0.16)
Actuarial gain/(loss) from change in demographic assumptions	-	-
Actuarial gain/(loss) from change in fnancial assumptions	1.04	4.09
Actuarial gain/(loss) from change in experience adjustment	(11.38)	10.43
Components of defned beneft costs recognised in other	(13.08)	14.36
comprehensive income

Notes:

• i. The current service cost and the net interest expenses for the year are included in the ‘Employee benefits expense’ line item in the Statement of profit and loss.

• ii. The remeasurement of the net defined liability is included in other comprehensive income.

144

The amounts included in the balance sheet arising from the Group’s obligation in respect of defined benefit plans is as follows:

		As at	As at
		31 March, 2021	31 March, 2020
		Rs. / Lakh	Rs. / Lakh
	Present value of defned beneft obligation
	Non-current	-	-
	Current	24.70	(1.88)
		24.70	(1.88)
	Movement in the present value of the defned beneft obligation and fair	value of plan assets	are as follows:
A	Present value of the defned beneft obligation	Year ended	Year ended
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
	Opening defned beneft obligation	350.67	317.73
	Current service cost	36.04	34.41
	Interest cost	23.74	24.24
	Actuarial (gain)/loss on obligation	10.34	(14.52)
	Benefts paid	(64.51)	(11.19)
	Closing defned beneft obligation	356.28	350.67
B	Fair value of the plan assets	Year ended	Year ended
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
	Opening fair value of plan assets	352.55	335.27
	Return on plan assets (excluding amount included in net interest expense)	23.87	25.58
	Remeasurement gain/(loss)	(2.74)	(0.16)
	Contributions from the employer	22.41	3.05
	Benefts paid	(64.51)	(11.19)
	Closing fair value of plan assets	331.58	352.55
C	Net liability/(asset) (A-B)	24.70	(1.88)
	The fair value of the plan assets are as follows
	Fund managed by insurer	331.58	352.55

The Group has invested fund in LIC of India (“insurer”). The future information of fund investments are not available with the Group.

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

Sensitivity analysis:

If the expected salary growth and discount rate increases /(decreases) by 0.50%, the defined benefit obligation would change as:

	As at 31 March 2021	As at 31 March 2021	As at 31 March	2020
	Increase by	Decrease by	Increase by	Decrease by
	0.50%	0.50%	0.50%	0.50%
	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
Discount rate	(16.79)	18.25	(15.87)	17.22
Salary growth rate	17.37	(16.45)	16.47	(15.30)

Notes

i. Sensitivities due to mortality and withdrawals are not material and hence impact of change not calculated.

ii. Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of the defined benefit obligation by 0.50 percentage, keeping all other actuarial assumptions constant.

145

40 Financial instruments

A. Capital Management

Capital includes equity attributable to the equity holders of the Group and all other equity reserves. The primary objective of the Group’s capital management is to safeguard its ability to continue as going concern and to ensure that it maintains an efficient capital structure and maximize shareholder value. The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. No changes were made in the objectives, policies or processes for managing capital except for budgeting for cash flow projections considering the impact of ongoing pandemic COVID - 19.

The following table summarizes the capital and Net Debt-equity ratio of the Group:

	Particulars	As at	As at
		31 March, 2021	31 March,2020
	Net debt*	-	951.77
	Total equity	-	19,062.64
	Net debt to equityratio	-	0.05
	* Net Debt = non-current borrowings + current maturities of non-current borrowings - cash and cash		equivalents
**B. **	Categories of fnancial instruments
		As at	As at
		31 March, 2021	31 March, 2020
		(Rs. / lakh)	(Rs. / lakh)
Financial assets
i)	Measured at fair value through proft or loss
	a. Investments
	- non current	2,661.40	1,369.38
	- current	732.12	534.89
ii)	Measured at amortised cost
	a. Non current investments	299.86	772.40
	b. Loans
	- non current	1.48	0.53
	- current	17.57	17.57
	c. Trade receivables	2,945.97	3,764.05
	d. Cash and cash equivalents	178.58	134.92
	e. Other bank balances	185.45	348.00
	f. Other fnancial assets
	- non current	101.34	61.91
	- current	152.59	544.13
iii)	Measured at fair value through other comprehensive income
	a. Non current investments	4,124.56	3,919.80
iv)	Measured at cost
	a. Non current investments	1,278.11	1,329.60
Financial liabilities
	a. Borrowings
	- non current	-	990.73
	b. Trade payables	1,522.31	1,580.57
	c. Other fnancial liabilities	334.39	411.64

C. Financial risk

In the course of its business, the Group is exposed primarily to fluctuations in Interest rates, security price risk, credit risk and liquidity risk , which may adversely impact the fair value of its financial instruments, the operation of the group did not have an exposure for foreign currency exchange rates as the majority of the operations are in India only. The group has a risk management policy covering risks associated with the financial assets and liabilities such as interest rate risks, security price risk and credit risks. The risk management policy has been approved by the board of directors. The risk management framework aims to:

146

• Create a stable business planning environment by reducing the impact of interest rate fluctuations on the group’s business plan.

• Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

• The Group does not use the derivative financial instruments for risk mitigation.

a. Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the foreign currency exchange rates, interest rates, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

i. Foreign currency exchange rate risk

The Group operates majorly in India but is exposed to foreign exchange risk arising through its sale and purchase of goods and services with overseas suppliers and investment in foreign currency transactions primarily with respect to US Dollar (‘USD’). The Group does not use the derivative financial instruments to manage it’s risk.

The Group has exposure in US dollars only as per details given below:

Particulars	Receivables	Cash in Hand	Payable	Investments
	- Trade		- Trade
	Receivables		Payables
	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
As at 31 March, 2021	85.83	-	-	1,617.10
As at 31 March, 2020	60.28	-	-	1,383.43

• ii. The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the end of the year are as follows:

Particulars	USD
	(Rs. / lakh)
As at 31 March, 2021
Assets	1,702.93
Liabilities	-
As at 31 March, 2020
Assets	1,443.71
Liabilities	-

iii. Interest rate risk

Financial liabilities

The Parent company is virtually debt free and the exposure to Interest Rate risk from the perspective of financial liabilities is negligible. Further, treasury activities focus on managing investments and debt instruments and are administered under a set of approved policies guided by safety, liquidity and returns.The Step down subsidiary is not exposed to any interest rate risk as there are no floating interest rate loans and borrowings.

Financial assets

The Group’s investments are primarily in fixed rate interest bearing investments. Hence the group is not significantly exposed to interest rate risk.

b. Security price risk

The group is exposed to equity price risks arising from equity investments held by the group and classified in the balance sheet as fair value through OCI.

• i Equity price sensitivity analysis

The sensitivity analysis below has been determined based on the exposure to equity price risks at the end of the year.

If the equity instruments (equity shares and equity linked mutual fund) prices had been 5% higher / lower. Other comprehensive income for the year ended 31 March 2021 would increase / decrease by Rs. 206.23 Lakh (for the year ended 31 March 2020: increase / decrease by Rs. 195.99 lakh) as a result of the change in fair value of equity investment measured at FVTOCI.

147

ii. Exposure in mutual funds (Other than equity linked mutual fund)

The group manages the surplus funds majorly through investments in debt based mutual fund schemes. The price of investment in these mutual fund schemes is reflected though Net Asset Value (NAV) declared by the Asset Management Company on daily basis as reflected by the movement in the NAV of invested schemes. The group is exposed to price risk on such Investments.

Mutual fund price sensitivity analysis - The sensitivity analysis below have been determined based on Mutual Fund Investment at the end of the year.

If NAV has been 1% higher / lower: Profit for the year ended 31 March 2021 would increase / decrease by Rs. 33.94 lakh (for the year ended 31.03.2020 by Rs. 19.04 Lakh) as a result of the changes in fair value of mutual fund investments.

• iii. If the tax free bonds and investment in preference shares prices had been 1% higher / lower:

• Profit for the year ended 31 March 2021 would increase / decrease by Rs. 3.00 Lakh (for the year ended 31 March 2020: increase / decrease by Rs. 7.72 lakh) as a result of the change if there is no change in the market risk and other assumptions.

c. Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle it’s obligations. To manage trade receivable and unbilled revenue, the group periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and ageing of such receivables.

Financial instruments that are subject to credit risk, principally consist of investments, trade receivables and loans and advances. None of the financial instruments of the group carry material concentration of credit risks. Financial assets for which loss allowance is measured relates to trade receivables where loss allowance at the year end was estimated at Rs. 104.21 lakhs (Previous year Rs. 81.89 lakhs).

Other than financial assets mentioned above, none of the group’s financial assets are either impaired or past due, and there are no indications that defaults in payment obligations would occur as exposure to Trade Receivable is diversified. There is no single customer whose sales are exceeding 10% of the turnover of the Group.

d. Liquidity risk

Liquidity risk refers to the risk that the Group can not meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per the requirements.

During the year, the Group generated sufficient cash flows from operations to meet its financial obligations as and when they fall due.

The table below provides details regarding the contractual maturities of significant financial liabilities as at:

Contractual maturities of financial liabilities

	less than 1	1 to 5 year	more than 5	Total
	year		year
	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)	(Rs. / lakh)
As at 31 March 2021
Trade payables	1,522.31	-	-	1,522.31
Other fnancial liabilities	334.39	-	-	334.39
As at 31 March 2020
Borrowings - Non Current	-	383.84	606.89	990.73
Trade payables	1,580.57	-	-	1,580.57
Other fnancial liabilities	411.64	-	-	411.64

The Parent Company has cash credit facility from banks of Rs. 400 Lakh (As at 31 March, 2020 Rs. 800 Lakh). However, the Parent company has not utilised the same as on 31 March 2021 and 31 March 2020.

e. Unhedged Foreign currency exposures

Particulars		As at 31	March 2021	As at 31 March	2020
	Currency	In foreign	(Rs. / lakh)	In foreign	(Rs. / lakh)
		currency		currency
		(in lakh)		(in lakh)
Receivables	USD	1.17	85.83	0.80	60.28
-Trade
Receivables

148

41 Fair value measurements

Financial assets and financial liabilities are measured at fair value at the end of each quarter/year. The information of the valuation techniques and the input used are as follows:

valuation techniques and the input used are as follows:
	Level		As at	As at
		31	March, 2021	31 March, 2020
			(Rs. / lakh)	(Rs. / lakh)
Measured at fair value through proft or loss
Investments
- non current	Level 2		2,661.40	1,369.38
- current	Level 2		732.12	534.89
Sub Total			3,393.52	1,904.27
Measured at fair value through other comprehensive income
Non current investments
- Investments in Equity shares (quoted)	Level 1		527.46	275.76
- Investments in equity oriented mutual funds	Level 2		1,395.67	1,459.30
- Investments in Capital venture fund (unquoted)	Level 3		327.82	544.80
- Investment in Compulsory convertible preference shares	Level 3		1,617.10	1,383.43
(Unquoted)
- Investment in equity shares (Unquoted)	Level 3		256.51	256.51
Sub Total			4,124.56	3,919.80
Grand Total			7,518.08	5,824.07

Valuation technique

Level 1: Quoted prices in the active market. This level of hierarchy includes financial assets that are measured by reference to quoted prices in the active market.

Level 2: Valuation techniques with observable inputs. This level of hierarchy includes items measured using inputs other than quoted prices included within Level 1 that are observable for such items, either directly or indirectly.

Level 3: Valuation techniques with unobservable inputs. This level of hierarchy includes items measured using inputs that are not based on observable market data (unobservable inputs). Fair value determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data.

The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

• a. Investments in mutual funds: Fair value is determined by reference to quotes from the financial institutions, i.e. net asset value (NAV) for investments in mutual funds declared by mutual fund house.

• b. Quoted equity investments: Fair value is derived from quoted market prices in active markets.

• c. Unquoted investments: Fair value is derived on the basis of income approach, in this approach the discounted cash flow method is used to capture the present value of the expected future economic benefits to be derived from the ownership of these investments or from valuation declared by fund house.

Trade receivables, trade payables and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items as generally they are of short term nature. There has been no change in the valuation methodology for Level 3 inputs during the year.

Derivative contracts: The Group has not entered into any forward contracts and swaps to manage its exposure as the Company management expect that there are nominal exposure of the Company for foreign exchange and are manageable.

42 Details of Corporate Social Responsibility (CSR) expenditure

			Year ended	Year ended
			31 March, 2021	31 March, 2020
			(Rs. / lakh)	(Rs. / lakh)
a.	Gross amount required to be spent by the Group during the year		35.39	41.53
b.	Amount spent during the year on the following :
	i.	Construction/ acquisition of any asset	-	-
	ii.	On purposes other than (i) above	35.62	57.39
			35.62	57.39

As per section 135 of the Companies Act, 2013, amount required to be spent on CSR by the Company during the year is computed at 2% of its average net profit for the immediately preceding three financial years.

149

43 Disclosure required under Section 186(4) of the Companies Act, 2013

The Group has given loans only to staff members which as on 31.03.2021 amounted to Rs. 19.05 lakh (previous year Rs. 18.10 lakh). The investments made by the Group in various entities have been detailed in Notes 5 and 11.

44 Segment Reporting

The Operating Segments have been reported in a manner consistent with the internal reporting provided to the Chief Financial Officer and Chief Executive Officer, who are the Chief Operating Decision Maker.The Group is currently focused on two business “Precured Tread Rubber and allied products/services & Power Generation.

“Precured Tread Rubber and allied products/services” segment is engaged in the manufacturing of the Precured Tread Rubber, Bonding Repair and Extrusion Gum and Rubber Cement, which are used for retreading of tyres and providing tyre retreading service.

“Power Generation” segment is into the business of enhancing knowledge and skills of solar technologies in India, specially the expertise in solar park development and to carry on the business of generating power supply through clean energy sub-sectors e.g., solar energy,biomass, wind, and energy efficiency projects and/or any other means, distribute, supply and sell such power either directly or through facilities or Central/State Governments or private companies or Electricity Boards to industries and to Central/State Governments.

Operating segments

Operating segments	Operating segments	Operating segments	Operating segments	Operating segments	Operating segments	Operating segments
(Rs. / lakh)
Particulars	Year ended 31 March 2021			Year ended 31 March 2020
	Precured Tread Rubber and allied products/ services	Power Generation	Total	Precured Tread Rubber and allied products/ services	Power Generation	Total
Revenue External sales Inter Segment Sales	16,984.43 -	- -	16,984.43 -	18,677.39 -	- -	18,677.39 -
Total revenue Results Segment results Unallocated Income (net) Operating proft Interest Income Dividend Income Interest expenses Income Tax other segment Exceptional items Proft form Discontinued operations	16,984.43 1,304.40	- (3.10)	16,984.43 1,301.30 149.91 1,451.21 56.48 186.18 20.23 87.45 (51.49) (1,324.02) 70.84	18,677.39 1,245.78	- (2.15)	18,677.39 1,243.63 110.80 1,354.43 49.13 285.94 20.00 353.84 (10.40) - 66.79
Net Proft after tax			281.52			1,372.05
	As at 31 March 2021			As at 31 March 2020
Segment assets Unallocated assets Discontinued Operations - Assets	12,755.90	4.26	12,760.16 9,135.17 1,762.30	12,789.79	1,818.92	14,608.71 7,966.92 -
Total assets	12,755.90	4.26	23,657.63	12,789.79	1,818.92	22,575.63
Segment liabilities Unallocated liabilities Discontinued Operations - Liabilities	2,500.30	1.78	2,502.08 - 1,019.51	2,380.65	141.61	2,522.26 990.73 -
Total liabilities	2,500.30	1.78	3,521.59	2,380.65	141.61	3,512.99
Other segment information for theyear
Capital expenditure Depreciation Other non-cash expenses	1,240.32 328.55 -	5.37 - -	1,245.69 328.55 -	1,384.73 374.32 -	- - -	1,384.73 374.32 -

150

(Rs. / lakh)	Share in Total comprehensive income	Amount		1,305.05		(2.97)		59.09		(27.90)	(51.49)	0.83	1,282.61
		As % of consolidated total comprehensive income		101.75%		-0.23%		4.61%		-2.18%	-4.01%	0.06%	100.00%
	Share in Other comprehensive income	Amount		1,028.99		-		-		-	-	-	1,028.99
		As % of consolidated other comprehensive income		100.00%		0.00%		0.00%		0.00%	0.00%	0.00%	100.00%
	Share in Proft and Loss	Amount		276.06		(2.97)		59.09		(27.90)	(51.49)	0.83	253.62
		As % of consolidated Proft and Loss		108.85%		-1.17%		23.30%		-11.00%	-20.30%	0.33%	100.00%
	Net Assets, i.e., total assets minus total liabilities	Amount		19,423.54		2.48		757.57		365.19	(71.89)	(340.85)	20,136.04
		As % of consolidated net assets		96.46%		0.01%		3.76%		1.81%	-0.35%	-1.69%	100.00%
	Name of the Entity		Parent Company	Indag Rubber Limited	Indian Subsidiary	Sun Amp Solar India Private Limited	Indian Step Down Subsidiary	Samyama Jyothi Solar Energy (P) Ltd (Discontinued opeations)	Minority Interest	Share of Minority	Joint Venture (proft/ loss)*	Consolidation Adjustment / Elimination	Total

151

46 Information about the composition of the group at the end of the year is as follows:

			% of holding	% of holding
Name of subsidiary company	Place of	Principal activity	As on	As on	31,March
	incorporation		31,March 2021		2020
	and operation
SUN-AMP Solar India Private limited (non-wholly-owned subsidiary)	India	Business of enhancing knowledge and skills of solar technologies	51.00%		51.00%
		Business of electricity
Samyama Jyothi Solar Energy		generation through design,
Private Limited (step down	India	development, commissioning	100.00%		100.00%
subsidiary) - discontinued operations		and operation of Solar Power
		projects.
Name of Joint Venture company	Place of	Principal activity	As on	As on	31,March
	incorporation		31,March 2021		2020
	and operation
Sun Mobility EV Infra Private Limited		Business of electric mobility	50.00%		50.00%
(formerly known as Alberieth EV Services Private Limited)	India	infrastructure services using equipment such as batteries,
		chargingstations etc.

47 Estimation uncertainty relating to the global health pandemic COVID-I9

The Group has made assessment about the recoverability and carrying value of its assets comprising property, plant and equipment, investments, inventory and trade receivables taking into account the second wave on Covid-19 started in April 2021. Based on current indicators of future economic conditions, the group expects to recover the carrying amount of these assets. The situation is changing rapidly giving rise to inherent uncertainty around the extent and timing of the potential future impact of the COVID-19 which may be different from that estimated as at the date of approval of these consolidated financial statements. The Group will continue to closely monitor any material changes arising of future economic conditions and impact on its business.

48 Events after the reporting period

There were no events after the reporting date that could have a material effect on the financial position of the Company as at 31March 2021. The effect of spread of Covid-19 in the month of April 2021 has been disclosed in Note 47.

49 Discontinued operations (Assets/Disposal group held for sale)

Assets/disposal group are classified under held for sale if their carrying amount is intended to be recovered principally through sale rather than through continuing use. The condition for classification of held for sale is met when the Assets/ Disposal group is available for immediate sale and the same is highly probable of being completed within one year from the date of classification under held for sale. Assets/Disposal group held for sale are measured at the lower of carrying amount and fair value less cost to sell.

On 16th October, 2020 Non-material Subsidiary Company, Sun Amp Solar India Pvt. Ltd. (Sun Amp) and step down subsidiary Samyama Jyothi Solar Energy Pvt. Ltd. (Samyama Jyothi) have signed the Share Purchase Agreement (SPA), for the sale of Sun Amp’s investment in equity shares of Samyama Jyothi, to the independent purchaser. As per SPA, there are few Conditions Precedent to closing, which need to be fulfilled by the Subsidiary company to the satisfaction of the Purchaser, the Purchaser will process the sale consideration of USD 1,012,000 equivalent to approximately Rs. 7.44 crores being the agreed sale consideration and the above transaction will be considered as completed post transfer of 100% Equity shares of Samyama Jyothi by Sun Amp to the Purchaser. Therefore Samyama Jyothi is consolidated according to Ind AS -105 Non-current Assets Held for Sale and Discontinued Operations.

152

Assets/Disposal group held for sale

Assets/Disposal group held for sale
	Amount in lakh
Particulars	As on 31, March 2021
Property, plant and equipment	1,490.32
Goodwill	1.74
Security Deposit with Government Authorities (VAT)	0.10
Trade receivables	36.12
Other Bank Balance	121.84
Cash & cash equivalents	63.50
Contract Assets	44.97
Advances	0.01
Prepaid Expenditure	3.70
Total	1,762.30

Liabilities directly associated with asset/disposal group held for sale

	Amount in lakh
Particulars	As on 31,March 2021
Secured term loan from fnancial institutions	895.66
Dues of creditors other than Micro enterprises & Small enterprises	2.08
Current Maturities of long term debt	95.96
Expenses Payable	22.56
Provision for Expenses	0.45
Statutory dues/taxes Payables	2.32
Provision for Income Tax	0.48
Total	1,019.51

Profit / (loss) from assets held for sale

Proft / (loss) from assets held for sale
		Amount in lakh
Particulars	Year ended	Year ended
	31, March 2021	31, March 2020
Revenue	426.12	435.53
Cost & Expenses	355.28	368.74
Proft before Income Tax	70.84	66.79
Income tax Expense	10.92	10.29
Proft After Income Tax	59.92	56.50

		Amount in lakh
Statement of Cash Flows for the Year Ended 31 March, 2021	Year ended	Year ended
	31, March 2021	31, March 2020
Net cash infow/(outfow) from Operating activities (A)	351.80	305.27
Net cash infow/(outfow) from investing activities (B)	9.27	10.82
Net cash infow/ (outfow) from fnancing activities (C)	(319.85)	(334.06)
Net increase/(decrease) in cash & cash equivalents (A+B+C)	41.22	(17.97)

153

• 50 Previous year figures

Previous year figures have been regrouped/reclassified, wherever necessary to conform to this year’s classification.

As per our report of even date

For and on behalf of the Board of Directors

For Khanna & Annadhanam

Chartered Accountants ICAI Firm’s Registration No.: 001297N

B. J. Singh

Partner Membership No. 007884

Place: New Delhi Date: May 8, 2021

Nand Khemka

K. K. Kapur

Chairman cum Managing Director CEO and Whole Time Director DIN : 00211084 DIN : 00745117 Manali D Bijlani Anil Bhardwaj Company Secretary GM-(Accounts) & CFO

154

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