Notes to Accounts of Eveready Industries India Ltd.

Mar 31, 2025

18 PROVISIONS AND CONTINGENCIES
Accounting Policy:-

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will
be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are measured at
the present value of management''s best estimate of the expenditure required to settle the present obligation at the balance sheet date. These are
reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent
assets are not recognised in the financial statements.

20 TRADE PAYABLES
Accounting Policy:-

Trade payables represent liabilities for goods and services provided to the Company and are unpaid at the reporting period. The amounts are unsecured
and usually paid within time limits as contracted. Trade and other payables are presented as current liabilities unless the payment is not due within
12 months after the reporting period.

They are recognised initially at their transactional value which represents the fair value and subsequently measured at amortised cost using the
effective interest method wherever applicable.

2 REVENUE FROM OPERATIONS
Accounting Policy:-

Revenue is measured at the fair value of the consideration received or receivable.

Sale of goods

Revenue from sale of goods is recognised when control of the products has transferred and there is no unfulfilled obligation that could affect
the customer''s acceptance of the products. Revenue is recognised based on the price specified in the contract, net of the estimated discounts.
Accumulated experience is used to estimate and provide for the discounts, using the expected value method, and revenue is only recognised to the
extent that it is highly probable that a significant reversal will not occur. A contract liability is recognised for expected discounts payable to customers
in relation to sales made until the end of the reporting period. A receivable is recognised when the goods are despatched as this is the point in time
that the consideration is unconditional because only the passage of time is required before the payment is due.

Revenue excludes Goods and Services Tax (GST).

Unfulfilled Performance Obligations

The Company provides certain benefits to customers for purchasing products from the Company. These provide a material right to customers that
they would not receive without entering into a contract. Therefore the promise to provide such benefits to the customer is a separate performance
obligation. The transaction price is allocated to the product and the benefit to be provided on a relative stand-alone selling price basis. The management
estimates the stand-alone selling price per unit on the basis of providing cost of such benefit. These estimates are established using historical
information on the nature, frequency and average cost of obligations and management estimates regarding possible future incidents. To the extent
these benefits are not settled/ disbursed till the end of a reporting period these are recorded. Contract liability is recognised until the benefit is
provided which is expected to be less than 12 months.

Government grants and subsidies

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached
to them and the grants / subsidy will be received. Government grants and subsidies are recognised as income over the periods necessary to match
them with the costs for which they are intended to compensate, on a systematic basis.

25 EMPLOYEE BENEFITS EXPENSE
Accounting Policy:-
Post - Employment Benefits

Defined Benefit Plans:

The liability or asset recognised in the Balance Sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the
end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually at year end by actuaries using the
projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at
the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets.
This cost is included in ''Employee Benefits Expense'' in the Statement of Profit and Loss.

Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets
(excluding interest), is reflected in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they
occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to the
statement of profit and loss. Past service cost is recognised in the statement of profit and loss in the period of a plan amendment. Net interest is
calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

Defined Contribution Plans

Contributions under Defined Contribution Plans payable in keeping with the related schemes are recognised as expenses for the period in which the
employee has rendered the service entitling them to the contributions.

The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company''s defined benefit plans.
Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or
reductions in future contributions to the plans.

Other long-term employee benefits

The liabilities for leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related
service. They are therefore measured annually at year end by actuaries as the present value of expected future benefits in respect of services provided
by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields on
government bonds at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a
result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.

Short-term and other long-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries and sick leave in the period the related service is rendered
at the undiscounted amount of the benefits expected to be paid in exchange for that service.

25.B EMPLOYEE BENEFIT PLANS (CONTD)

Provident Fund

Contributions towards provident funds are recognised as an expense for the year. The Company has set up a Provident Fund Trust which is administered
by Trustees. Both the employees and the Company make monthly contributions to the fund at specified percentage of the employee''s salary and
aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment.

The Trust invests funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trust is
not lower than the rate of interest declared annually by the Government under ''The Employees'' Provident Funds and Miscellaneous Provisions Act,
1952'' and shortfall, if any, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of plan''s liabilities and interest rate guarantee obligations as at the Balance Sheet date using Projected
Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such
valuation, no amount is required to be provided towards future anticipated shortfall with regard to interest rate obligation of the Company as at the
Balance Sheet date. Disclosures given hereunder are restricted to the information available as per the Actuary''s Report.

Total amount charged to the Statement of Profit and Loss for the year ended March 31, 2025''397.84 lakhs (For the year ended March 31, 2024:
'' 363.19 lakhs).

Pension fund

Contribution towards Pension fund -total amount charged to the Statement of Profit and Loss for the year ended March 31, 2025 ''409.79 lakhs (For
the year ended March 31, 2024: '' 398.67 lakhs).

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund
and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020 and has
invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact, once the subject
rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules
to determine the financial impact are published.

!6 FINANCE COSTS
Accounting Policy:-

Borrowing costs include interest, amortisation of ancillary costs incurred. Costs in connection with the borrowing of funds to the extent not directly
related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated
to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying
asset upto the date of capitalisation of such asset are added to the cost of the assets.

29.C. Pursuant to the Taxation Laws (Amendment) Ordinance, 2019 issued on September 20, 2019, corporate assesses have been given the option to apply
lower income tax rate with effect from April 01,2019, subject to certain conditions specified therein. The Company has carried out an evaluation and
based on its forecasted profits, believes it will not be beneficial for the Company to choose the lower tax rate option in the near future. Accordingly,
no effect in this regard has been considered in measurement of tax expense for the year ended March 31,2025. The Company will, however, continue
to review its profitability forecast at regular intervals and make necessary adjustments to tax expense when there is reasonable certainty to avail
the beneficial (lower) rate of tax.

29.D. For Accounting policy relating to income Tax expenses refer note 8.

Note:

**The Competition Commission of India ("CCI") issued an Order dated April 19, 2018, imposing penalty on certain zinc carbon dry cell battery
manufacturers, concerning contravention of the Competition Act, 2002 (The Act). The penalty imposed on the Company was '' 17,155 lakhs. The
Company filed an appeal and stay application before the National Company Law Appellate Tribunal, New Delhi, (NCLAT) against the CCI''s said Order.
Since then, the NCLAT vide its order dated May 09, 2018, has stayed the penalty with the direction of depositing 10% of the penalty amount within
15 days with the Registry of the NCLAT. The Company has complied with the said direction of the NCLAT. Meanwhile, the Company received legal
advice to the effect that given the factual background and the judicial precedents, there are reasonable grounds on the basis of which the NCLAT
will allow the appeal and will either adjudicate upon the quantum of penalty imposed or remand it to the CCI for de novo consideration. It may also be
noted that a certain amount of penalty will be levied on the Company as it had also earlier filed an application under the Lesser Penalty Regulations
under the Act. However, at this stage it is not possible to quantify or even make a reasonable estimate of the quantum of penalty that may be imposed
on the Company. According to the aforesaid legal advice, the matter should be recognized as a contingent liability as defined under Ind-AS 37 and
there should be no adjustment required in the financial statements of the Company in accordance with Ind-AS 10. Accordingly, pending the final
disposal of the appeal, the amount has been disclosed as contingent liability in the financial statements. It may also be noted that penalty imposed
in this connection on certain officers of the Company amounting '' 53.41 Lakhs has been included in the above.

30.2 PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS COVERED UNDER SECTION 186(4) OF THE COMPANIES ACT,

2013

No loans/guarantess/investments have been given/provided/made during the year ended March 31, 2025.

Interest bearing (which is not lower than prevailing yield of related Government Security close to the tenure of respective loans) loans and recoverables
to Babcock Borsig Ltd, Mcnally Bharat Engineering Company Ltd, Williamson Financial Services Ltd, Seajuli Developers & Finance Ltd, Woodside
Parks Limited and Williamson Magor & Co. Ltd. outstanding at the year ended March 31, 2025 were ''7,600.00 Lakhs, Nil, Nil, '' 27,080.00 Lakhs,
'' 8,000.00 Lakhs and '' 6,048.77 Lakhs respectively and maximum amount outstanding during the year was '' 7,600.00 Lakhs, Nil, Nil, ''27,080.00
Lakhs, '' 8,000.00 Lakhs and '' 6,048.77 Lakhs respectively, for their business purposes. During the year ended March 31, 2021 the Company has
provided for impairment loss against above outstanding loans & recoverables.

30.7.3 FINANCIAL RISK MANAGEMENT OBJECTIVES

The Company endeavours to manage the financial risks related to it''s operations through specified policies, which deals with various market risks
(foreign currency exchange risk, interest rate risks and commodity price risks), credit risks and liquidity risks. In order to minimize any adverse effects
on the financial performance of the Company, derivative financial instruments like foreign exchange forward contracts, commodity future and option
contracts, maintaning proper mix between fixed and floating rate of borrowings are undertaken to hedge the various financial risks as per guidelines
set in those policies. Credit risk management is done through managing credit limits and transactions through letters of credit. Liquidity risk is managed
through availability of committed credit lines and borrowing facilities.

30.7.4 MARKET RISK

The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and commodity prices
in international markets. The Company enters into foreign exchange forward contracts and commodity futures contracts to manage it''s market risks.

30.7.5 FOREIGN CURRENCY RISK MANAGEMENT
Hedge Instruments Accounting Policy:-

The Company uses hedge instruments that are governed by the policies of the Company which are approved by the Board of Directors, which provide
written principles on the use of such financial derivatives consistent with the risk management strategy of the Company.

The Company uses certain forward foreign exchange contracts as hedge instruments in respect of foreign exchange fluctuation risk. These hedge
contracts do not generally extend beyond 6 months.

These hedges are accounted for and measured at fair value from the date the hedge contract is entered into and are subsequently re-measured to their
fair value at the end of each reporting period. The fair values for forward currency contracts are marked-to-market at the end of each reporting period.

The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Exchange rate
exposures are managed within the approved policy utilising forward foreign exchange contracts as and when required depending upon market volatility.

Derivative Instruments and Unhedged Foreign Currency Exposure :

30.7.5.2 FOREIGN EXCHANGE FORWARD CONTRACTS

It is the policy of the Company to enter into foreign exchange forward contracts to cover foreign currency payments for known liabilities as and
when required.

30.7.6 INTEREST RATE RISK MANAGEMENT

The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company
by maintaining an appropriate mix between fixed and floating rate borrowings contracts.

30.7.6.1 INTEREST RATE SENSITIVITY ANALYSIS

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments (borrowings) at the end
of the reporting period. For liabilities with floating rate, the analysis is prepared considering average amount outstanding at the end of each month. A
100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s
assessment of the reasonably possible change in interest rates.If interest rates had been 100 basis points higher/lower and all other variables were
held constant, the Company''s:

• profit before tax for the year ended March 31, 2025 would decrease/increase by '' 57.68 lakhs (for the year ended March 31,2024: decrease/
increase by '' 202.58 Lakhs). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

30.7.7 CREDIT RISK MANAGEMENT

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has
adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company''s
exposure of its counterparties are continuously monitored.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is
performed on the financial condition of accounts receivable and, where appropriate, credit guarantee insurance cover is purchased.

Concentration of credit risk to any counterparty did not exceed 5% of gross monetary assets at any time during the year.

30.7.10 FAIR VALUE MEASUREMENTS

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. Fair value for measurement and/or disclosure purposes in
the financial statement is determined on such a basis, except for share-based payment transactions, leasing transactions and measurements that
have some similarities to fair value but are not fair value, such as net realisable value in Inventories or value in use in Impairment of Assets. The basis
of fair valuation of these items are given as part of their respective accounting policies.

Financial instruments

The estimated fair value of the Company''s financial instruments is based on market prices and valuation techniques. Valuations are made with
the objective to include relevant factors that market participants would consider in setting a price, and to apply accepted economic and financial
methodologies for the pricing of financial instruments. References for less active markets are carefully reviewed to establish relevant and
comparable data.

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

Note There are no transfers from Level 1 and Level 2 during the year end March 31, 2025
* Below rounding off norms of the Company

Level 1:- Hierarchy includes financial instruments valued using quoted market prices. Listed equity instruments and traded debt instruments which
are traded in the stock exchanges are valued using the closing price at the reporting date. Mutual funds are valued using the closing NAV.

Level 2:- Hierarchy includes financial instruments that are not traded in active market. This includes over the counter (OTC) derivatives, close ended
mutual funds and debt instruments valued using observable market data such as yield etc. of similar instruments traded in active market. All derivative
are reported at discounted values hence are included in level 2.Borrowings have been fair valued using credit adjusted interest rate prevailing on
the reporting date.

Level 3:- If one or more significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted
equity instruments and certain debt instruments which are valued using assumptions from market participants.

30.9 ADDITIONAL DISCLOSURES RELATING TO THE REQUIREMENT OF REVISED SCHEDULE III

30.9.1 LOANS OR ADVANCES (REPAYABLE ON DEMAND OR WITHOUT SPECIFYING ANY TERMS OR PERIOD OF REPAYMENT) TO
SPECIFIED PERSONS

During the year ended March 31,2025 the Company did not provide any Loans or advances which remains outstanding (repayable on demand or
without specifying any terms or period of repayment) to specified persons ( Nil as on March 31,2024).

30.9.2 RELATIONSHIP WITH STRUCK OFF COMPANIES

The Company did not have any transaction with Companies, struck off during the year ended March 31,2025 and the year ended March 31,2024.

30.9.3 DISCLOSURE IN RELATION TO UNDISCLOSED INCOME

The Company did not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income
during the year ended March 31,2025 and March 31, 2024 in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961.

30.9.4 DETAILS OF BENAMI PROPERTY HELD

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company, during the year ended
March 31, 2025 and March 31, 2024 for holding any Benami property.

30.9.5 DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2025 and March 31, 2024.

30.9.6 UTILISATION OF BORROWED FUND & SHARE PREMIUM

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether
recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the
ultimate beneficiaries.

The Company has not advanced or lent or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

30.9.9 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies

(Restriction on number of Layers) Rules, 2017.

30.9.10 The Company has not entered into any scheme of arrangement which has accounting impact on current year.

30.10 The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and

the same has operated throughout the year for all relevant transactions recorded in the software. Further, there are no instance of audit trail feature
being tampered with, and the Audit trail has been preserved by the Company as per the Statutory requirements for record retention.

30.11 APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the Board of Directors on May 09, 2025.

For and on behalf of the Board of Directors

For Singhi & Co. Suvamoy Saha Mohit Burman

Chartered Accountants Managing Director Director

Firm Registration Number : 302049E (DIN:00112375) (DIN:00021963)

Place: Kolkata Place: Mumbai

Navindra Kumar Surana Bibek Agarwala Shampa Ghosh Ray

Partner Executive Director & CFO Company Secretary

Membership Number:053816 (DIN:07267564) (ACS: 16737)

Place: Kolkata Place: Kolkata

Place: Kolkata

---

Mar 31, 2024

18 PROVISIONS AND CONTINGENCIES Accounting Policy

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements.

22 REVENUE FROM OPERATIONS Accounting Policy

Revenue is measured at the fair value of the consideration received or receivable.

Sale of goods

Revenue from sale of goods is recognised when control of the products has transferred and there is no unfulfilled obligation that could affect the customer''s acceptance of the products. Revenue is recognised based on the price specified in the contract, net of the estimated discounts. Accumulated experience is used to estimate and provide for the discounts, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. A contract liability is recognised for expected discounts payable to customers in relation to sales made until the end of the reporting period. A receivable is recognised when the goods are despatched as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

Revenue excludes Goods and Services Tax (GST).

Unfulfilled Performance Obligations

The Company provides certain benefits to customers for purchasing products from the Company. These provide a material right to customers that they would not receive without entering into a contract. Therefore the promise to provide such benefits to the customer is a separate performance obligation. The transaction price is allocated to the product and the benefit to be provided on a relative stand-alone selling price basis. The management estimates the stand-alone selling price per unit on the basis of providing cost of such benefit. These estimates are established using historical information on the nature, frequency and average cost of obligations and management estimates regarding possible future incidents. To the extent these benefits are not settled/ disbursed till the end of a reporting period these are recorded. Contract liability is recognised until the benefit is provided which is expected to be less than 12 months.

Government grants and subsidies

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants / subsidy will be received. Government grants and subsidies are recognised as income over the periods necessary to match them with the costs for which they are intended to compensate, on a systematic basis.

25 EMPLOYEE BENEFITS EXPENSE Accounting Policy Post - Employment Benefits Defined Benefit Plans

The liability or asset recognised in the Balance Sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually at year end by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in ''Employee Benefits Expense'' in the Statement of Profit and Loss.

Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to the statement of profit and loss. Past service cost is recognised in the statement of profit and loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

Defined Contribution Plans

Contributions under Defined Contribution Plans payable in keeping with the related schemes are recognised as expenses for the period in which the employee has rendered the service entitling them to the contributions.

The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

25 EMPLOYEE BENEFITS EXPENSE (CONTD.)

Other long-term employee benefits

The liabilities for leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured annually at year end by actuaries as the present value of expected future benefits in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields on government bonds at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.

Short-term and other long-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries and sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

Contributions towards provident funds are recognised as an expense for the year. The Company has set up a Provident Fund Trust which is administered by Trustees. Both the employees and the employer make monthly contributions to the fund at specified percentage of the employee''s salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment.

The Trust invests funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trust is not lower than the rate of interest declared annually by the Government under ''The Employees'' Provident Funds and Miscellaneous Provisions Act, 1952'' and shortfall, if any, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of plan''s liabilities and interest rate guarantee obligations as at the Balance Sheet date using Projected Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, no amount is required to be provided towards future anticipated shortfall with regard to interest rate obligation of the Company as at the Balance Sheet date. Disclosures given hereunder are restricted to the information available as per the Actuary''s Report.

Contribution towards Pension fund -total amount charged to the Statement of Profit and Loss for the year ended March 31, 2024 ''398.67 lakhs (For the year ended March 31, 2023: '' 480.73 lakhs).

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020 and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact, once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

26 FINANCE COSTS Accounting Policy

Borrowing costs include interest, amortisation of ancillary costs incurred. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset are added to the cost of the assets.

29.c. Pursuant to the Taxation Laws (Amendment) Ordinance, 2019 issued on September 20, 2019, corporate assesses have been given the option to apply lower income tax rate with effect from April 01,2019, subject to certain conditions specified therein. The Company has carried out an evaluation and based on its forecasted profits, believes it will not be beneficial for the Company to choose the lower tax rate option in the near future. Accordingly, no effect in this regard has been considered in measurement of tax expense for the year ended March 31, 2024. The Company will, however, continue to review its profitability forecast at regular intervals and make necessary adjustments to tax expense when there is reasonable certainty to avail the beneficial (lower) rate of tax.

29.d. For material accounting policy information relating to income Tax expenses refer note 8.

Note:

# The Competition Commission of India ("CCI") issued an Order dated April 19, 2018, imposing penalty on certain zinc carbon dry cell battery manufacturers, concerning contravention of the Competition Act, 2002 (The Act). The penalty imposed on the Company was '' 17,155 lakhs. The Company filed an appeal and stay application before the National Company Law Appellate Tribunal, New Delhi, (NCLAT) against the CCI''s said Order. Since then, the NCLAT vide its order dated May 09, 2018, has stayed the penalty with the direction of depositing 10% of the penalty amount within 15 days with the Registry of the NCLAT. The Company has complied with the said direction of the NCLAT. Meanwhile, the Company received legal advice to the effect that given the factual background and the judicial precedents, there are reasonable grounds on the basis of which the NCLAT will allow the appeal and will either adjudicate upon the quantum of penalty imposed or remand it to the CCI for de novo consideration. It may also be noted that a certain amount of penalty will be levied on the Company as it had also earlier filed an application under the Lesser Penalty Regulations under the Act. However, at this stage it is not possible to quantify or even make a reasonable estimate of the quantum of penalty that may be imposed on the Company. According to the aforesaid legal advice, the matter should be recognized as a contingent liability as defined under Ind-AS 37 and there should be no adjustment required in the financial statements of the Company in accordance with Ind-AS 10. Accordingly, pending the final disposal of the appeal, the amount has been disclosed as contingent liability in the financial statements. It may also be noted that penalty imposed in this connection on certain officers of the Company amounting '' 53.41 Lakhs has been included in the above.

30.2 Particulars of Loans, Guarantees or Investments covered under Section 186(4) of the Companies Act, 2013

No loans/guarantess/investments have been given/provided/made during the year ended March 31, 2024.

Interest bearing (which is not lower than prevailing yield of related Government Security close to the tenure of respective loans) loans and recoverables to Babcock Borsig Ltd, Mcnally Bharat Engineering Company Ltd, Williamson Financial Services Ltd, Seajuli Developers & Finance Ltd, Woodside Parks Limited and Williamson Magor & Co. Ltd. outstanding at the year ended March 31, 2024 were ''7,600.00 Lakhs, Nil, Nil, '' 27,080.00 Lakhs, '' 8,000.00 Lakhs and '' 6,048.77 Lakhs respectively and maximum amount outstanding during the year was '' 7,600.00 Lakhs, Nil, Nil, ''27,080.00 Lakhs, '' 8,000.00 Lakhs and '' 6,048.77 Lakhs respectively, for their business purposes. During the year ended March 31, 2021, the Company has provided for impairment loss against above outstanding loans & recoverables.

The Company is having non-current financial assets amounting to '' 1,796.82 Lakhs (As at March 31, 2023: '' 1,854.67 Lakhs). The fair value of these non-current financial assets is not materially different from its carrying value.

The carrying amounts of trade receivables, cash and cash equivalents and bank balances other than cash and cash equivalents, trade payables, other current financial liabilities and short term borrowings are considered to be same as their fair values, due to their short term nature

30.8.3 Financial risk management objectives

The Company endeavours to manage the financial risks related to it''s operations through specified policies, which deals with various market risks (foreign currency exchange risk, interest rate risks and commodity price risks), credit risks and liquidity risks. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments like foreign exchange forward contracts, commodity future and option contracts, maintaning proper mix between fixed and floating rate of borrowings are undertaken to hedge the various financial risks as per guidelines set in those policies. Credit risk management is done through managing credit limits and transactions through letters of credit. Liquidity risk is managed through availability of committed credit lines and borrowing facilities.

30.8.4 Market risk

The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and commodity prices in international markets. The Company enters into foreign exchange forward contracts and commodity futures contracts to manage it''s market risks.

30.8.5 Foreign currency risk management Hedge Instruments Accounting Policy

The Company uses hedge instruments that are governed by the policies of the Company which are approved by the Board of Directors, which provide written principles on the use of such financial derivatives consistent with the risk management strategy of the Company.

The Company uses certain forward foreign exchange contracts as hedge instruments in respect of foreign exchange fluctuation risk. These hedge contracts do not generally extend beyond 6 months.

These hedges are accounted for and measured at fair value from the date the hedge contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The fair values for forward currency contracts are marked-to-market at the end of each reporting period.

The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Exchange rate exposures are managed within the approved policy utilising forward foreign exchange contracts as and when required depending upon market volatility.

30.8.5.2 Foreign Exchange Forward Contracts

It is the policy of the Company to enter into foreign exchange forward contracts to cover foreign currency payments for known liabilities as and when required.

30.8.6 Interest rate risk management

The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings contracts.

30.8.6.1 Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments (borrowings) at the end of the reporting period. For liabilities with floating rate, the analysis is prepared considering average amount outstanding at the end of each month. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s

assessment of the reasonably possible change in interest rates. If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Company''s:

• profit before tax for the year ended March 31, 2024 would decrease/increase by '' 202.58 lakhs (for the year ended March 31, 2023: decrease/ increase by '' 243.75 Lakhs). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

30.8.7 Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company''s exposure of its counterparties are continuously monitored.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, credit guarantee insurance cover is purchased.

Concentration of credit risk to any counterparty did not exceed 5% of gross monetary assets at any time during the year.

In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks. The Company''s maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on. As at March 31,2024, an amount of NIL (as at March 31,2023 an amount of NIL) and other bank guarantees amounts to '' 627.68 lakhs as at March 31, 2024 (as at March 31, 2023: '' 530.67 lakhs) has been considered as contingent liabilities (see note 32.1). These financial guarantees have been issued to banks under the supply agreements entered into with certain vendors.

30.8.7.1 Collateral held as security and other credit enhancements

The Company does not collect any collateral or other credit enhancements to cover its credit risks associated with its finacial assets.

30.8.8 Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

30.8.10 Fair value measurements

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. Fair value for measurement and/or disclosure purposes in the financial statement is determined on such a basis, except for share-based payment transactions, leasing transactions and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Inventories or value in use in Impairment of Assets. The basis of fair valuation of these items are given as part of their respective accounting policies.

Financial instruments

The estimated fair value of the Company''s financial instruments is based on market prices and valuation techniques. Valuations are made with the objective to include relevant factors that market participants would consider in setting a price, and to apply accepted economic and financial methodologies for the pricing of financial instruments. References for less active markets are carefully reviewed to establish relevant and comparable data.

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

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

Some of the Company''s financial assets and liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and liabilities are determined:

Level 1:- Hierarchy includes financial instruments valued using quoted market prices. Listed equity instruments and traded debt instruments which are traded in the stock exchanges are valued using the closing price at the reporting date. Mutual funds are valued using the closing NAV.

Level 2:- Hierarchy includes financial instruments that are not traded in active market. This includes over the counter (OTC) derivatives, close ended mutual funds and debt instruments valued using observable market data such as yield etc. of similar instruments traded in active market. All derivatives are reported at discounted values hence are included in level 2. Borrowings have been fair valued using credit adjusted interest rate prevailing on the reporting date.

Level 3:- If one or more significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity instruments and certain debt instruments which are valued using assumptions from market participants.

30.10 Additional disclosures relating to the requirement of revised Schedule III

30.10.1 Loans or advances (repayable on demand or without specifying any terms or period of repayment) to specified persons

During the year ended March 31,2024 the Company did not provide any Loans or advances which remains outstanding (repayable on demand or without specifying any terms or period of repayment) to specified persons ( Nil as on March 31, 2023).

30.10.2 Relationship with Struck off Companies

The Company did not have any transaction with Companies, struck off during the year ended March 31,2024 and the year ended March 31,2023.

30.10.3 Disclosure in relation to undisclosed income

The Company did not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year ended March 31, 2024 and March 31, 2023 in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

30.10.4 Details of Benami Property held

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company, during the year ended March 31, 2024 and March 31, 2023 for holding any Benami property.

30.10.5 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2024 and March 31, 2023.

30.10.6 Utilisation of Borrowed Fund & Share Premium

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

The Company has not advanced or lent or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

30.10.9 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies

(Restriction on number of Layers) Rules, 2017.

30.10.10 The Company has not entered into any scheme of arrangement which has accounting impact on current year.

30.11 The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and

the same has operated throughout the year for all relevant transactions recorded in the software. Further, there are no instance of audit trail feature being tampered with.

31.12 Figures of the previous year have been regrouped/rearranged wherever consider necessary

30.13 Approval of financial statements

The financial statements were approved for issue by the Board of Directors on April 26, 2024.

For and on behalf of the Board of Directors

For Singhi & Co. S. Saha M. Burman

Chartered Accountants Managing Director (DIN: 00112375) Director (DIN: 00021963)

Firm Registration Number : 302049E

Navindra Kumar Surana B. Agarwala T. Punwani

Partner Chief Financial Officer Vice President - Legal

Membership Number:053816 & Company Secretary

Place: Kolkata Place: Kolkata

Date: April 26, 2024 Date: April 26, 2024

---

Mar 31, 2023

2.16 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements.

Warranties

Provisions for service warranties and returns are recognised when the Company has a present or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably measured.

2.17 Cash and cash equivalents

Cash comprises cash in hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.18 Asset held for Sale

Asset held for Sale is classified as such when the asset is available for immediate sale and the same is highly probable of being completed within one year from the date of classification. It is measured at the lower of carrying amount and fair value less cost to sell. An Asset held for Sale is derecognised upon disposal or when the asset is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising thereon (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year in which the property is derecognised.

2.19 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) for the year as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

2.20 Operating Cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

2.21 Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability. The transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value through profit and loss are immediately recognised in the Statement of Profit and Loss.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts future cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period.

2.21.1 Financial assets

Classification

The Company classifies its financial assets in the following measurement categories:

(i) those measured at amortised cost and

(ii) those to be measured subsequently at fair value (through profit and loss).

a. Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business model whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

b. Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss where it is not measured at amortised cost.

c. Investment in subsidiaries and associate

Investment in subsidiaries and associate are measured at cost as per Ind AS 27 - Separate Financial Statements and Ind AS 28 - Investments in associates and joint ventures.

d. Impairment of financial assets

Loss allowance for expected credit losses is recognised for financial assets measured at amortised cost.

For financial assets whose credit risk has not significantly increased since initial recognition, loss allowance equal to twelve months'' expected credit losses is recognised. Loss allowance equal to the lifetime expected credit losses is recognised if the credit risk on the financial instruments has significantly increased since initial recognition.

e. Derecognition of financial assets

The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire.

2.21.2 Financial liabilities and equity Classification

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

a Equity instruments

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

b. Financial liabilities

Financial liabilities are measured at amortised cost using the effective interest rate method. Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

For trade and other payables maturing within one year from the balance sheet date, the carrying amount approximates fair value to short-term maturity of these instruments.

c. Derecognition of financial liabilities

The Company derecognises financial liabilities only when the Company''s obligations are discharged, cancelled or they expire.

d. Hedge instruments

The Company uses hedge instruments that are governed by the policies of the Company which are approved by the Board of Directors, which provide written principles on the use of such financial derivatives consistent with the risk management strategy of the Company.

The Company uses certain forward foreign exchange contracts as hedge instruments in respect of foreign exchange fluctuation risk. These hedge contracts do not generally extend beyond 6 months.

These hedges are accounted for and measured at fair value from the date the hedge contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The fair values for forward currency contracts are marked-to-market at the end of each reporting period.

The Company also uses certain future and option contracts as hedge instruments in respect of commodity price fluctuation risk. These hedge instruments are accounted for as cash flow hedges.

The hedge instruments are designated and documented as hedges at the inception of the contract. The effectiveness of hedge instruments to reduce the risk associated with the exposure being hedged is assessed and measured at inception and on an ongoing basis. The ineffective portion of designated hedges are recognised immediately in the Statement of Profit and Loss.

The effective portion of change in the fair value of the designated hedge instrument is recognised in the other comprehensive income and accumulated under the heading cash flow hedge reserve as a separate component of equity. Such amounts are reclassified into the Statement of Profit and Loss when the related hedged items affect profit or loss.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or no longer qualifies for hedge accounting. Any gain or loss recognised in other comprehensive income and accumulated in equity till that time remains and is recognised in profit or loss when the forecasted transaction ultimately affects the profit or loss. When a forecasted transaction is no longer expected to occur, the cumulative gain or loss accumulated in equity is transferred to the Statement of Profit and Loss.

2.22 Recent accounting pronouncements

Recent pronouncements - The Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31,2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 01, 2023, as below:

Ind AS1, Presentation of Financial Statements

Companies are now required to disclose material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general-purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statement.

Ind AS 8, Accounting policies, Change in Accounting Estimates and Errors

Definition of ''change in account estimate'' has been replaced by revised definition of ''accounting estimate''. As per revised definition, accounting estimates are monetary amounts in the financial statements that are subject to measurement uncertainty.

• A company develops an accounting estimate to achieve the objective set out by an accounting policy.

• Accounting estimates include: a) Selection of a measurement technique (estimation or valuation technique) b) Selecting the inputs to be used when applying the chosen measurement technique.

The amendments will help entities to distinguish between accounting policies and accounting estimates. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS12, Income Taxes

Narrowed the scope of the Initial Recognition Exemption (IRE) (with regard to leases and decommissioning obligations). Now IRE does not apply to transactions that give rise to equal and offsetting temporary differences. Accordingly, companies will need to recognise a deferred tax asset and a deferred tax liability for temporary differences arising on transactions such as initial recognition of a lease and a decommissioning provision. The Company is evaluating the impact, if any, in its financial statements.

Note:

# The Competition Commission of India ("CCI") issued an Order dated April 19, 2018, imposing penalty on certain zinc carbon dry cell battery manufacturers, concerning contravention of the Competition Act, 2002 (The Act). The penalty imposed on the Company was '' 17,155 Lakhs. The Company filed an appeal and stay application before the National Company Law Appellate Tribunal, New Delhi, (NCLAT) against the CCI''s said Order. Since then, the NCLAT vide its order dated May 09, 2018, has stayed the penalty with the direction of depositing 10% of the penalty amount within 15 days with the Registry of the NCLAT. The Company has complied with the said direction of the NCLAT. Meanwhile, the Company received legal advice to the effect that given the factual background and the judicial precedents, there are reasonable grounds on the basis of which the NCLAT will allow the appeal and will either adjudicate upon the quantum of penalty imposed or remand it to the CCI for de novo consideration. It may also be noted that a certain amount of penalty will be levied on the Company as it had also earlier filed an application under the Lesser Penalty Regulations under the Act. However, at this stage it is not possible to quantify or even make a reasonable estimate of the quantum of penalty that may be imposed on the Company. According to the aforesaid legal advice, the matter should be recognized as a contingent liability as defined under Ind-AS 37 and there should be no adjustment required in the financial statements of the Company in accordance with Ind-AS 10. Accordingly, pending the final disposal of the appeal, the amount has been disclosed as contingent liability in the financial statements. It may also be noted that penalty imposed in this connection on certain officers of the Company amounting '' 53.41 Lakhs has been included in the above.

32.2 Particulars of Loans, Guarantees or Investments covered under Section 186(4) of the Companies Act, 2013

No loans/guarantess/investments have been given/provided/made during the year ended March 31, 2023.

Interest bearing (which is not lower than prevailing yield of related Government Security close to the tenure of respective loans) loans and recoverables to Babcock Borsig Ltd, Mcnally Bharat Engineering Company Ltd, Williamson Financial Services Ltd, Seajuli Developers & Finance Ltd, Woodside Parks Limited and Williamson Magor & Co. Ltd. outstanding at the year ended March 31, 2023 were ''7,600.00 Lakhs, Nil, Nil, '' 27,080.00 Lakhs, '' 8,000.00 Lakhs and '' 6,048.77 Lakhs respectively and maximum amount outstanding during the year was '' 7,600.00 Lakhs, Nil, Nil, ''27,080.00 Lakhs, '' 8,000.00 Lakhs and '' 6,048.77 Lakhs respectively, for their business purposes. During the year ended March 31, 2021 the Company has provided for impairment loss against above outstanding loans & recoverables.

32.10.5.2 Foreign Exchange Forward Contracts

I t is the policy of the Company to enter into foreign exchange forward contracts to cover foreign currency payments for known liabilities as and when required.

32.10.6 Interest rate risk management

The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings contracts.

32.10.6.1 Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments (borrowings) at the end of the reporting period. For liabilities with floating rate, the analysis is prepared considering average amount outstanding at the end of each month. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates. If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Company''s:

• profit before tax for the year ended March 31, 2023 would decrease/increase by '' 243.75 Lakhs (for the year ended March 31, 2022: decrease/ increase by '' 237.96 Lakhs). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

32.10.7 Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company''s exposure of its counterparties are continuously monitored.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, credit guarantee insurance cover is purchased. Concentration of credit risk to any counterparty did not exceed 5% of gross monetary assets at any time during the year.

In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks. The Company''s maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on. As at March 31, 2023, an amount of NIL (as at March 31,2022 an amount of NIL) and other bank gurantees amounts to '' 530.67 Lakhs as at March 31, 2023 (as at March 31, 2022: '' 589.81 Lakhs) has been considered as contingent liabilities (see note 32.1). These financial guarantees have been issued to banks under the supply agreements entered into with certain vendors.

32.10.7.1 Collateral held as security and other credit enhancements

The Company does not collect any collateral or other credit enhancements to cover its credit risks associated with its finacial assets.

32.10.8 Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

32.12 Additional disclosures relating to the requirement of revised Schedule III

32.12.1 Loans or advances (repayable on demand or without specifying any terms or period of repayment) to specified persons

During the year ended March 31, 2023 the Company did not provide any Loans or advances which remains outstanding (repayable on demand or without specifying any terms or period of repayment) to specified persons (Nil as at March 31, 2022).

32.12.2 Relationship with Struck off Companies

The Company did not have any transaction with Companies, struck off during the year ended March 31,2023 and the year ended March 31, 2022.

32.12.3 Disclosure in relation to undisclosed income

The Company did not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year ended March 31,2023 and March 31,2022 in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

32.12.4 Details of Benami Property held

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company, during the year ended March 31, 2023 and March 31, 2022 for holding any Benami property.

32.12.5 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2023 and March 31, 2022.

32.12.6 Utilisation of Borrowed Fund & Share Premium

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

The Company has not advanced or lent or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Note:

(i) Quarterly return/statement was submitted on provisional basis.

(ii) Provision for slow/non-moving inventory was not considered and quarterly return/statement was submitted on provisional basis.

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

32.12.9 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

32.13 Figures of the previous year have been regrouped/rearranged wherever considered necessary.

32.14 Approval of financial statements

The financial statements were approved for issue by the Board of Directors on May 09, 2023.

For and on behalf of the Board of Directors

For Singhi & Co. S. Saha M. Burman

Chartered Accountants Managing Director (DIN: 00112375) Director (DIN: 00021963)

Firm Registration Number : 302049E

Navindra Kumar Surana B. Agarwala T. Punwani

Partner Chief Financial Officer Vice President - Legal

Membership Number: 053816 & Company Secretary

Place: Kolkata Place: Kolkata

Date: May 09, 2023 Date: May 09, 2023

---

Mar 31, 2022

i) The Company has not revalued its property, plant and equipment during the year ended March 31, 2022 and March 31, 2021

i i) The Company does not have any immovable property, whose title deeds are not held in the name of the Company during the year ended March 31, 2022 and also as at March 31, 2021.

iii Freehold land and buildings with a carrying amount of '' 8,171.81 Lakhs (as at March 31, 2021: '' 8,453.93 Lakhs) have been pledged to secure borrowings of the Company (Refer Note 17 and 20).

iv) Plant and equipments, furniture and fixtures, vehicles and office equipments with a carrying amount of '' 8,322.26 Lakhs (as at March 31, 2021: '' 8,626.87 Lakhs) have been pledged to secure borrowings of the Company (Refer Note 15 and 20).

Capital work-in-progress consist primarily of expenditure towards acquisition of battery manufacturing machineries.

The cost of inventories recognised as an expense includes '' 563.93 Lakhs (for the year ended March 31, 2021: '' 597.08 Lakhs) in respect of writedown of inventory on account of obsolescence/adjustments and provision for slow moving/non-moving inventory. There has also been reversals of write-down NIL (for the year ended March 31, 2021 NIL)

The mode of valuation of inventories has been stated in Note 2.15.

I nventories amounting to '' 24,071.74 Lakhs (as at March 31,2021: '' 24,542.94 Lakhs) have been pledged to secure borrowings of the Company (Refer Note 20). Details of charge has been given on the basis of records available with Registrar of Companies.

The average credit period on sale of goods is 10 days. No element of financing is deemed present and the sales are generally made with an average credit term of 10 days, which is consistent with market practice. The Company does not have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds 1 year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

Customers seeking appointment to dealership are approved by the Regional Head of Sales for a channel after completing the Customer Business Data Form, alongwith all necessary documents. New customers are usually on advance payment terms for three months. Customers seeking supply on credit after the stipulated period are extended the facility after evaluation by the Regional Head of Sales for the channel alongwith the Regional Commercial Manager. Sufficient proof of solvency has to be provided by the customer seeking credit. The credit limits are reviewed once every year in April.

(i) The Company''s maximum exposure to credit risk with respect to customers as at March 31,2022''766.22 Lakhs (as at March 31, 2021: '' 746.71 Lakhs), which is the fair value of trade receivables less impairment loss as shown below. There is no concentration of credit risk with respect to any particular customer.

Trade receivables amounting to '' 3,558.21 Lakhs (as at March 31,2021: '' 3,541.83 Lakhs) have been pledged to secure borrowings of the Company (Refer Note 20). Details of charge has been given on the basis of records available with Registrar of Companies.

(ii) Terms / rights attached to equity shares:

The Company has one class of equity shares having a par value of '' 5/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution shall be according to the members right and interest in the Company.

Pursuant to the Taxation Laws (Amendment) Ordinance, 2019 issued on September 20, 2019, corporate assesses have been given the option to apply lower income tax rate with effect from April 01, 2019, subject to certain conditions specified therein. The Company has carried out an evaluation and based on its forecasted profits, believes it will not be beneficial for the Company to choose the lower tax rate option in the near future. Accordingly, no effect in this regard has been considered in measurement of tax expense for the year ended March 31, 2022. The Company will, however, continue to review its profitability forecast at regular intervals and make necessary adjustments to tax expense when there is reasonable certainty to avail the beneficial (lower) rate of tax.

33 ADDITIONAL INFORMATION TO THE STANDALONE FINANCIAL STATEMENTS 33.1 Contingent liabilities & commitments (to the extent not provided for)		'' Lakhs
Particulars	As at March 31, 2022	As at March 31, 2021
(i) Contingent liabilities
(a) Penalty imposed by Competition Commission of India ("CCI") on the Company and on certain officers of the Company (Refer note below #)	17,208.41	17,208.41
(b) Claims against the Company not acknowledged as debts:
- Excise & Customs *	1,548.33	1,534.70
- Sales tax	32.65	37.54
* Excludes interest claimed in a few cases by respective authorities but amount not quantified.
(c) Others (includes ESI, property tax, water tax etc.)	218.16	218.16
(ii) Guarantees	589.81	656.39
(iii) Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)
- Property, plant and equipment	1,348.09	507.01
- Intangible assets	82.22	18.01

Note:

# The Competition Commission of India ("CCI") issued an Order dated April 19, 2018, imposing penalty on certain zinc carbon dry cell battery manufacturers, concerning contravention of the Competition Act, 2002 (The Act). The penalty imposed on the Company was '' 17,155 Lakhs. The Company filed an appeal and stay application before the National Company Law Appellate Tribunal, New Delhi, (NCLAT) against the CCI''s said Order. Since then, the NCLAT vide its order dated May 09, 2018, has stayed the penalty with the direction of depositing 10% of the penalty amount within 15 days with the Registry of the NCLAT. The Company has complied with the said direction of the NCLAT. Meanwhile, the Company received legal advice to the effect that given the factual background and the judicial precedents, there are reasonable grounds on the basis of which the NCLAT will allow the appeal and will either adjudicate upon the quantum of penalty imposed or remand it to the CCI for de novo consideration. It may also be noted that a certain amount of penalty will be levied on the Company as it had also earlier filed an application under the Lesser Penalty Regulations under the Act. However, at this stage it is not possible to quantify or even make a reasonable estimate of the quantum of penalty that may be imposed on the Company. According to the aforesaid legal advice, the matter should be recognized as a contingent liability as defined under Ind-AS 37 and there should be no adjustment required in the financial statements of the Company in accordance with Ind-AS 10. Accordingly, pending the final disposal of the appeal, the amount has been disclosed as contingent liability in the financial statements. It may also be noted that penalty imposed in this connection on certain officers of the Company amounting '' 53.41 Lakhs has been included in the above.

33.2 Particulars of Loans, Guarantees or Investments covered under Section 186(4) of the Companies Act, 2013

No loans, guarantees and investments have been given/provided/made during the year ended March 31, 2022.

Interest bearing (which is not lower than prevailing yield of related Government Security close to the tenure of respective loans) loans and recoverables to Babcock Borsig Ltd., Mcnally Bharat Engineering Company Ltd., Williamson Financial Services Ltd, Seajuli Developers & Finance Ltd., Woodside Parks Ltd. and Williamson Magor & Co. Ltd. outstanding at the year ended March 31, 2022 were ''7,600.00 Lakhs, Nil, Nil, '' 27,080.00 Lakhs, '' 8,000.00 Lakhs and '' 6,048.77 Lakhs respectively and maximum amount outstanding during the year was '' 7,600.00 Lakhs, Nil, Nil, ''27,080.00 Lakhs, '' 8,100.00 Lakhs and '' 6,148.77 Lakhs respectively, for their business purposes.

a) During the year ended March 31, 2021 the Company has provided for impairment loss against above outstanding loans & recoverables.

b) The aforesaid outstanding balances do not include accrued interest on such loans and recoverables as the amounts have been written off during the year ended March 31,2021 following the principles of accounting prudence. Similarly, no interest has been accrued on these loans and recoverables during the year ended March 31, 2022 applying the same rules of accounting prudence.

Provident Fund

Contributions towards provident funds are recognised as an expense for the year. The Company has set up a Provident Fund Trust which is administered by Trustees. Both the employees and the Company make monthly contributions to the fund at specified percentage of the employee''s salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment.

The Trust invests funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trust is not lower than the rate of interest declared annually by the Government under The Employees Provident Funds and Miscellaneous Provisions Act, 1952'' and shortfall, if any, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of plan''s liabilities and interest rate guarantee obligations as at the Balance Sheet date using Projected Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, no amount is required to be provided towards future anticipated shortfall with regard to interest rate obligation of the Company as at the Balance Sheet date. Disclosures given hereunder are restricted to the information available as per the Actuary''s Report.

Total amount charged to the Statement of Profit and Loss for the year ended March 31, 2022 ''377.29 Lakhs (For the year ended March 31, 2021: ''340.40 Lakhs).

Pension fund

Contribution towards Pension fund -total amount charged to the Statement of Profit and Loss for the year ended March 31,2022 ''542.94 Lakhs (For the year ended March 31, 2021: ''578.02 Lakhs).

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020 and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact, once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

Segment information

The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, general lighting products and small home appliances which come under a single business segment known as Consumer Goods. The financial performance relating to this single business segment is evaluated regularly by the Managing Director and Chief Financial Officers (Chief Operating Decision Makers).

33.9.3 Financial risk management objectives

The Company endeavours to manage the financial risks related to it''s operations through specified policies, which deals with various market risks (foreign currency exchange risk, interest rate risks and commodity price risks), credit risks and liquidity risks. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments like foreign exchange forward contracts, commodity future and option contracts, maintaining proper mix between fixed and floating rate of borrowings are undertaken to hedge the various financial risks as per guidelines set in those policies. Credit risk management is done through managing credit limits and transactions through letters of credit. Liquidity risk is managed through availability of committed credit lines and borrowing facilities.

33.9.4 Market risk

The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and commodity prices in international markets. The Company enters into foreign exchange forward contracts and commodity futures contracts to manage it''s market risks.

33.9.5 Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Exchange rate exposures are managed within the approved policy utilising forward foreign exchange contracts as and when required depending upon market volatility.

33.9.6 Interest rate risk management

The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings contracts.

33.9.6.1 Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments (borrowings) at the end of the reporting period. For liabilities with floating rate, the analysis is prepared considering average amount outstanding at the end of each month. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates. If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Company''s:

• Profit before tax for the year ended March 31, 2022 would decrease/increase by '' 237.96 Lakhs (for the year ended March 31, 2021: decrease/ increase by '' 229.20 Lakhs). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

33.9.7 Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company''s exposure of its counterparties are continuously monitored.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, credit guarantee insurance cover is purchased.

Concentration of credit risk to any counterparty did not exceed 5% of gross monetary assets at any time during the year.

In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks. The Company''s maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on. As at March 31, 2022, an amount of NIL (as at March 31, 2021 an amount of NIL) and other bank guarantees amounts to '' 589.81 Lakhs as at March 31, 2022 (as at March 31, 2021: '' 656.39 Lakhs) has been considered as contingent liabilities (see note 33.1). These financial guarantees have been issued to banks under the supply agreements entered into with certain vendors.

33.9.7.1 Collateral held as security and other credit enhancements

The Company does not collect any collateral or other credit enhancements to cover its credit risks associated with its financial assets.

33.9.8 Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

33.11 Additional disclosures relating to the requirement of revised Schedule III

33.11.1 Loans or advances (repayable on demand or without specifying any terms or period of repayment) to specified persons

During the year ended March 31, 2022 the Company did not provide any Loans or advances which remains outstanding (repayable on demand or

without specifying any terms or period of repayment) to specified persons (Nil as on March 31, 2021).

33.11.2 Relationship with Struck off Companies

The Company did not have any transaction with companies struck off during the year ended March 31, 2022 and also for the year ended March 31, 2021.

33.11.3 Disclosure in relation to undisclosed income

The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year ended March 31,2022 and March 31, 2021 in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

33.11.4 Details of Benami Property held

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company, during the year ended March 31, 2022 and March 31, 2021 for holding any Benami property.

33.11.5 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2022 and March 31, 2021.

33.11.6 Utilisation of Borrowed Fund & Share Premium

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

The Company has not advanced or lent or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

Certain first pari passu charges on immovable properties of the Company, for the term loans extended by IndusInd Bank Ltd. and RBL Bank Ltd., are yet to be created on account of the Company having been inter alia restrained from encumbering or creating third party rights on the assets of the Company in terms of the Order of the Hon''ble High Court of Delhi, in reference to a matter filed against some of the promoters of the Company.

In the event of the creation of the charges above, the said charges would be registered with ROC, Kolkata, within the statutory period.

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

Impact of COVID-19

The Company has taken into account all the possible impacts of COVID-19 in preparation of these standalone financial statements, including but not limited to its assessment of, liquidity and going concern assumption, the recoverability of property plant and equipments, receivables, intangible assets, cash and cash equivalent and investments. The Company has carried out this assessment based on available internal and external sources of information upto the date of approval of these financial statements and believes that the impact of COVID-19 is not material to these financial statements and expects to recover the carrying amount of its assets. The Company will continue to monitor future economic conditions and its consequent impact on the business operations, given the uncertain nature of the pandemic.

Figures of the previous year have been regrouped/rearranged wherever considered necessary.

Approval of financial statements

The financial statements were approved for issue by the Board of Directors on April 25, 2022.

---

Mar 31, 2018

1 CORPORATE INFORMATION

Eveready Industries India Limited (“the Company”) is in the business of manufacture and marketing of batteries, flashlights and packet tea under the brand name of “Eveready”. The Company also distributes a wide range of electrical products and small home appliances. The Company has also entered into confectionery business through launch of fruit jellies under the brand name “Jollies”.The Company is a Public Limited Company incorporated and domiciled in India with its registered office at 1, Middleton Street, Kolkata 700071. Eveready has its manufacturing facilities at Chennai, Lucknow, Noida, Haridwar, Maddur, Kolkata and Goalpara (Assam) and is supported by a sales and distribution network across the country.

Fair value of the Company’s Investment property

The Company has identified its unused Freehold land and building at Plot No. 8, Industrial Park,Moula-Ali, Hyderabad, as Investment property. The fair value of such property at Hyderabad has been derived using the market comparable rate of the surrounding area as at March 31, 2018 and March 31, 2017 on the basis of a valuation carried out as on the respective dates by an independent valuer not related to the Company. The independent valuer is Government registered valuer and have appropriate qualifications and experience in the valuation of properties.

The cost of inventories recognised as an expense includes Rs.469.33 Lakhs (for the year ended March 31, 2017: Rs.211.31 Lakhs) in respect of write-down of inventory on account of obsolescence/adjustments. There have also been reversals of write-down by Rs.0.73 Lakhs (for the year ended March 31,2017: Rs.3.37 Lakhs)

The mode of valuation of inventories has been stated in Note 2.14

Inventories amounting to Rs.30,010.92 Lakhs (as at March 31,2017: Rs.28,429.53 Lakhs) have been pledged to secure borrowings of the Company (Refer Note 20).

The average credit period on sale of goods is 26 days.

Customers seeking appointment to dealership are approved by the Regional Head of Sales for a channel after completing the Customer Business Data Form, alongwith all necessary documents. New customers are usually on advance payment terms for three months. Customers seeking supply on credit after the stipulated period are extended the facility after evaluation by the Regional Head of Sales for the channel alongwith the Regional Commercial Manager. Sufficient proof of solvency has to be provided by the customer seeking credit. The credit limits are reviewed once every year in April.

(i) The Company’s maximum exposure to credit risk with respect to customers as at March 31, 2018 Rs.509.51 lakhs (as at March 31, 2017: Rs.350.59 lakhs), which is the fair value of trade receivables less impairment loss as shown below. There is no concentration of credit risk with respect to any particular customer.

Trade receivables amounting to Rs.12,060.57 Lakhs (as at March 31,2017: Rs.8,386.66 Lakhs) have been pledged to secure borrowings of the Company (Refer Note 20).

(ii) Terms / rights attached to equity shares:

The Company has one class of equity shares having a par value of Rs.5/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution shall be according to the member’s right and interest in the Company.

The amalgamation reserve was created on April 1, 2007 during the amalgamation of the erstwhile Powercell Battery India Limited (PBIL) with the Company. This represents the difference between the paid up share capital of erstwhile PBIL and the value of investments of the Company in erstwhile PBIL.

Note:

# The Competition Commission of India (“CCI”) issued an Order dated April 19, 2018, imposing penalty on certain zinc carbon dry cell battery manufacturers, concerning contravention of the Competition Act, 2002 (The Act). The penalty imposed on the Company was Rs.17,155.0 lakhs. The Company filed an appeal and stay application before the National Company Law Appellate Tribunal, New Delhi, (NCLAT) against the CCI’s said Order.Since then, the NCLAT vide its order dated May 09, 2018, has stayed the penalty with the direction of depositing 10% of the penalty amount within 15 days with the Registry of the NCLAT. The Company has complied with the said direction of the NCLAT. Meanwhile, the Company received legal advice to the effect that given the factual background and the judicial precedents, there are reasonable grounds on the basis of which the NCLAT will allow the appeal and will either adjudicate upon the quantum of penalty imposed or remand it to the CCI for de novo consideration. It may also be noted that a certain amount of penalty will be levied on the Company as it had also earlier filed an application under the Lesser Penalty Regulations under the Act. However, at this stage it is not possible to quantify or even make a reasonable estimate of the quantum of penalty that may be imposed on the Company. According to the aforesaid legal advice, the matter should be recognized as a contingent liability as defined under Ind-AS 37 and there should be no adjustment required in the financial statements of the Company in accordance with Ind-AS 10. Accordingly, pending the final disposal of the appeal, the amount has been disclosed as contingent liability in the financial statements. It may also be noted that penalty imposed in this connection on certain officers of the Company amounting Rs.53.4 Lakhs has been included in the above.

2.1 Particulars of Loans, Guarantees or Investments covered under Section 186(4) of the Companies Act, 2013

Interest bearing (which is not lower than prevailing yield of related Government Security close to the tenure of respective loans) loans repayable on demand to Babcock Borsig Ltd and McNally Bharat Ltd outstanding at the year end was Rs.8,484.69 Lakhs and Rs.249.00 Lakhs respectively and maximum amount outstanding during the year was Rs.10,918.16 Lakhs and Rs.3,910.68 Lakhs respectively, for their business purposes.

Guarantees - Rs. Nil

Investment - Rs. Nil

2.2 Employee benefit plans

2.2.a Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Post-employment medical benefits

iii. Pension

iv. Compensated absences

The following table sets out the funded/unfunded status of the defined benefit schemes and the amount recognised in the financial statements:

Provident Fund

Contributions towards provident funds are recognised as expense for the year. The Company has set up a Provident Fund Trust which is administered by Trustees. Both the employees and the Company make monthly contributions to the Fund at specified percentage of the employee’s salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment.

The Trust invests funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trust is not lower than the rate of interest declared annually by the Government under The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of plan’s liabilities and interest rate guarantee obligations as at the Balance Sheet date using Projected Unit Credit Method and Deterministic Approach as outlined in the Guidance Not 29 issued by the Institute of Actuaries of India. Based on such valuation, no amount is required to be provided towards future anticipated shortfall with regard to interest rate obligation of the Company as at the Balance Sheet date. Disclosures given hereunder are restricted to the information available as per the Actuary’s Report.

Pension fund

Contribution towards Pension fund [Total amount charged to the Statement of Profit and Loss for the year ended March 31, 2018: Rs.585.85 lakhs (For the year ended March 31, 2017: Rs.531.93 lakhs)]

2.3 Segment information

The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea, general lighting products, small home appliances and confectionery products which come under a single business segment known as Consumer Goods. The financial performance relating to this single business segment is evaluated regularly by the Managing Director and Chief Financial Officer (Chief Operating Decision Makers). Sale outside India is below the reportable threshold limit, thus geographical segment information is not given.

2.4 Related party transactions

2.4.a Details of related parties:

2.5 Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The proposed areas of CSR activities are eradication of hunger, promoting education, gender equality, empowerment of women and promoting sports- National & Olympic, special education for differently-abled, conservation of water, rural development and healthcare. The expenditure incurred (Refer Note 30) during the year on these activities are as specified in schedule VII of the Companies Act, 2013.

(a) Gross amount required to be spent by the Company during the year Rs.158.49 Lakhs

(b) Amount spent during the year on:

2.6 Financial Instruments

2.6.1 Capital management

The Company’s capital management objective is to maintain an optimal debt-equity structure so as to reduce the cost of capital, thereby enhancing returns to shareholders. The Company also has a policy of making judicious use of various available debt instruments within its overall working capital drawing limit. This interest arbitrage helps the Company to contain / reduce the cost of capital

2.6.1.1 Gearing ratio

The gearing ratio at the end of the reporting period was as follows:

2.6.2 Financial risk management objectives

The Company endeavours to manage the financial risks related to it’s operations through specified policies, which deals with various market risks (foreign currency exchange risk, interest rate risks and commodity price risks), credit risks and liquidity risks. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments like foreign exchange forward contracts, commodity future and option contracts, maintaining proper mix between fixed and floating rate of borrowings are undertaken to hedge the various financial risks as per guidelines set in those policies. Credit risk management is done through managing credit limits and transactions through letters of credit. Liquidity risk is managed through availability of committed credit lines and borrowing facilities.

2.6.3 Market risk

The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and commodity prices in international markets. The Company enters into foreign exchange forward contracts and commodity futures contracts to manage it’s market risks.

2.6.4 Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Exchange rate exposures are managed within the approved policy utilising forward foreign exchange contracts.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of reporting period are as follows:

2.6.4.1 Foreign currency sensitivity analysis

The Company is mainly exposed to the currency US Dollar, Japanese Yen and Hong Kong Dollar.This sensitivity analysis mentioned in the below table has been based on the composition of the Company’s financial assets and liabilities exposed to foreign currency as at year end. A positive number below indicates an increase in profit before tax where the INR(‘) strengthens 5% against the relevant currency. For a 5% weakening of the INR(‘) against the relevant currency, there would be a comparable impact on the profit and the balances below would be negative.

It is the policy of the Company to enter into foreign exchange forward contracts to cover foreign currency payments for known liabilities, all foreign currency loans and receipts, all of which covers approximately 40% to 50% of the exposure generated.

2.6.4.2 Forward Foreign Exchange Contract

It is the policy of the Company to enter into forward foreign exchange contracts to cover foreign currency payments for known liabilities, all foreign currency loans and receipts, all of which covers approximately 40% to 50% of the exposure generated.

The following table details the forward foreign exchange contracts outstanding at the end of the reporting period:

The line-items in the balance sheet that include the above hedging instruments are “Other financial assets” and “Other financial liabilities”.The Company had entered into forward foreign exchange contracts (for terms not exceeding 6 months) to hedge the exchange rate risk arising from the outstanding payables and receivables.

2.6.5 Interest rate risk management

The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings contracts.

2.6.5.1 Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments (borrowings) at the end of the reporting period. For liabilities with floating rate, the analysis is prepared considering average amount outstanding at the end of each month. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Company’s profit before tax for the year ended March 31, 2018 would decrease/increase by Rs.122.58 lakhs (for the year ended March 31, 2017: decrease/increase by Rs.90.14 Lakhs). This is mainly attributable to the Company’s exposure to interest rates on its variable rate borrowings.

2.6.6 Commodity price risk management

The Company is exposed to commodity price risk, mainly in respect of Zinc, which is a key raw material in the manufacture of batteries. The price risk is linked to fluctuations in London Metal Exchange (LME). The Company manages the price risk by entering into derivative transactions by use of futures upto 50% of the total exposure generated.

The carrying amounts of the Company’s future contracts monetary assets and monetary liabilities at the end of reporting period are as follows:

2.6.6.1 Commodity price sensitivity analysis

The sensitivity analysis is determined based on outstanding future and option positions at the end of each reporting period. A $100 increase or decrease is used when reporting Zinc price risk to key management personnel and represents management’s assessment of the reasonably possible change in Zinc price on LME If Zinc price had been $100 higher/lower and all other variables were held constant, the Company’s profit before tax for the year ended March 31, 2018 would decrease/increase by Rs. Nil (for the year ended March 31, 2017: decrease/increase by Rs.19.46 Lakhs)

2.6.7 Credit risk management

Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counter-party as a means of mitigating the risk of financial loss from defaults. The Company’s exposure of its counter-party are continuously monitored.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, credit guarantee insurance cover is purchased. Concentration of credit risk to any counter-party did not exceed 5% of gross monetary assets at any time during the year.

In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks. The Company’s maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on. As at March 31, 2018, an amount of Rs.2,509.53 lakhs (as at March 31, 2017: Rs.3,242.75 lakhs) and other bank guarantees amounts to Rs.1,626.26 lakhs as at March 31, 2018 (as at March 31, 2017: Rs.593.78 lakhs) has been considered as contingent liabilities (see note 32.1). These financial guarantees have been issued to banks under the supply agreements entered into with certain vendors.

2.6.7.1 Collateral held as security and other credit enhancements

The Company does not collect any collateral or other credit enhancements to cover its credit risks associated with its financial assets.

2.6.8 Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

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

Some of the Company’s financial assets and liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and liabilities are determined:

Financial assets/ (liabilities)

2.6.9.2 Fair value of the financial assets and liabilities that are not measured at fair value (but fair value disclosures are required)

Except as detailed in the following table, the directors consider that the carrying amounts of financial assets and financial liabilities recognised in the financial statements approximate their fair values.

The fair values of the financial assets and financial liabilities included in the level 3 category above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with most significant inputs being the discount rate that reflects the credit risk of counter-parties.

2.7 APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the Board of Directors on May 29, 2018.

---

Mar 31, 2017

Fair value of the Company''s Investment property

The Company has identified its unused freehold land and building at Plot No. 8, Indus Park, Moula-Ali, Hyderabad, as investment property. The fair value of such property at Hyderabad has been derived using the market comparable rate of the surrounding area as at March 31, 2017, March 31, 2016 and April 1, 2015 on the basis of a valuation carried out as on the respective dates by an independent valuer not related to the Company. The independent valuer is Government registered valuer and have appropriate qualifications and experience in the valuation of properties.

(ii) Terms / rights attached to equity shares:

The Company has one class of equity shares having a par value of Rs. 5/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution shall be according to the members right and interest in the Company.

1. Novener SAS

The Company acquired a controlling stake in Novener SAS from July 2009, a rechargeable battery conglomerate whose products were marketed under the brand name of "Uniross". As at March 31, 2017, the Company has an investment of Rs. Nil (As at March 31, 2016: Rs.4,646.04 Lakhs and as at April 1, 2015: Rs.4,646.04 Lakhs) and advances aggregating to Rs. Nil (as at March 31, 2016: Rs.2,973.27 Lakhs and as at April 1, 2015: Rs.2,973.27 Lakhs). The Company''s total exposure towards investments and advances of Rs.7,619.31 Lakhs was fully provided for as at March 31, 2016 (as at April 1, 2015: Rs.7,619.31 Lakhs). Novener SAS and all the key entities of the Uniross group were liquidated, as ordered by French Court judgements. The Company sought RBI approval for writing off the investment and advances as mentioned above during the previous year ended March 31, 2016. RBI approval was received during the year for the same and hence accounting adjustments have been made.

2. Particulars of Loans, guarantees or investments covered under Section 186(4) of the Companies Act, 2013

Interest bearing (which is not lower than prevailing yield of related Government Security close to the tenure of respective loans) loans repayable on demand to Babcock Borsig Ltd and McNally Bharat Ltd outstanding at the year end was Rs.688.37 Lakhs and Rs. Nil respectively and maximum amount outstanding during the year was Rs.6,114.04 Lakhs and Rs.3,032.22 Lakhs respectively, for their business purposes.

Guarantees - Rs. Nil

Investment - Rs. Nil

3. Employee benefit plans

3.1.a Defined contribution plans

The Company makes Provident Fund and Pension Fund contributions to 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 Company recognized Rs.331.93 Lakhs (for the year ended March 31, 2016 Rs.289.84 Lakhs) for Provident Fund contributions and Rs.531.93 Lakhs (for the year ended March 31, 2016 Rs.498.58 Lakhs) for Pension Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3.1.b The Company offers the following employee benefit schemes to its employees:

Defined benefit plans

i. Gratuity

ii. Pension

Other long term employee benefits

i. Post-employment medical benefits

ii. Compensated absences

The following table sets out the funded/unfunded status of the defined benefit plans and other long term benefits and the amount recognized in the financial statements:

4. Segment information

The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea, general lighting products and small home appliances which come under a single business segment known as Consumer Goods. The financial performance relating to this single business segment is evaluated regularly by the Managing Director and Chief Financial Officer (Chief Operating Decision Makers). Sale outside India is below the reportable threshold limit, thus geographical segment information is not given.

5. Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The proposed areas of CSR activities are eradication of hunger, promoting education, gender equality, empowerment of women and promoting sports- National & Olympic. The expenditure incurred (Refer Note 30) during the year on these activities are as specified in schedule VII on the Companies Act, 2013.

(a) Gross amount required to be spent by the Company during the year Rs.92.67 Lakhs

(b) Amount spent during the year on:

6. Financial Instruments

6.1 Capital management

The Company''s capital management objective is to maintain an optimal debt-equity structure so as to reduce the cost of capital, thereby enhancing returns to shareholders. The Company also has a policy of making judicious use of various available debt instruments within its overall working capital drawing limit. This interest arbitrage helps the Company to contain / reduce the cost of capital.

6.2 Financial risk management objectives

The Company endeavours to manage the financial risks related to it''s operations through specified policies, which deals with various market risks (foreign currency exchange risk, interest rate risks and commodity price risks), credit risks and liquidity risks. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments like foreign exchange forward contracts, commodity future and option contracts, maintaining proper mix between fixed and floating rate of borrowings are undertaken to hedge the various financial risks as per guidelines set in those policies. Credit risk management is done through managing credit limits and transactions through letters of credit. Liquidity risk is managed through availability of committed credit lines and borrowing facilities.

6.3 Market risk

The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and commodity prices in international markets. The Company enters into foreign exchange forward contracts and commodities future contracts to manage it''s market risks.

6.4 Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Exchange rate exposures are managed within the approved policy utilizing forward foreign exchange contracts

The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary liabilities at the end of reporting period are as follows:

7. Foreign currency sensitivity analysis

The Company is mainly exposed to the currency US Dollar, Japanese Yen and Hong Kong Dollar. This sensitivity analysis mentioned in the below table has been based on the composition of the Company''s financial assets and liabilities exposed to foreign currency as at year end. A positive number below indicates an increase in profit before tax where the INR (?) strengthens 5% against the relevant currency. For a 5% weakening of the INR (?) against the relevant currency, there would be a comparable impact on the profit and the balances below would be negative.

8. Forward Foreign Exchange Contract

It is the policy of the Company to enter into forward foreign exchange contracts to cover foreign currency payments for known liabilities, all foreign currency loans and receipts, all of which covers approximately 40% to 50% of the exposure generated.

The following table details the forward foreign exchange contracts outstanding at the end of the reporting period:

The line-items in the balance sheet that includes the above hedging instruments are "Other financial assets" and "Other financial liabilities". The Company has entered into forward foreign exchange contracts (for terms not exceeding 6 months) to hedge the exchange rate risk arising from the outstanding payables and receivables.

8.1 Interest rate risk management

The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings contracts.

9. Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments (borrowings) at the end of the reporting period. For liabilities with floating rate, the analysis is prepared considering average amount outstanding at the end of each month. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Company''s:

- profit before tax for the year ended March 31, 2017 would decrease/increase by Rs.90.14 lakhs (for the year ended March 31, 2016: decrease/ increase by Rs.180.85 Lakhs). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

9.1 Commodity price risk management

The Company is exposed to commodity price risk, mainly in respect of Zinc, which is a key raw material in the manufacture of batteries. The price risk is linked to fluctuations in London Metal Exchange (LME). The Company manages the price risk by entering into derivative transactions by use of futures and options upto 50% of the total exposure generated.

The carrying amounts of the Company''s future contracts monetary assets and monetary liabilities at the end of reporting period are as follows:

10. Commodity price sensitivity analysis

The sensitivity analysis is determined based on outstanding future and option positions at the end of each reporting period. A $100 increase or decrease is used when reporting Zinc price risk to key management personnel and represents management''s assessment of the reasonably possible change in Zinc price on LME.

If Zinc price had been $100 higher/lower and all other variables were held constant, the Company''s:

- profit before tax for the year ended March 31, 2017 would decrease/increase by Rs.19.46 lakhs (for the year ended March 31, 2016: decrease/ increase by Rs.69.55 Lakhs)

11. Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counter parties as a means of mitigating the risk of financial loss from defaults. The Company''s exposure of its counter parties are continuously monitored.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, credit guarantee insurance cover is purchased.

Concentration of credit risk to any counter party did not exceed 5% of gross monetary assets at any time during the year.

I n addition, the Company is exposed to credit risk in relation to financial guarantees given to banks. The Company''s maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on. As at March 31, 2017, an amount of Rs.3,242.75 lakhs (as at March 31, 2016: Rs.3,312.63 lakhs and as at April 1, 2015; Rs.3,125.00 lakhs) and other bank guarantees amounts to Rs.593.78 lakhs as at March 31, 2017 (as at March 31, 2016: Rs.732.15 lakhs and as at April 1, 2015; Rs.208.94 lakhs) has been considered as contingent liabilities (see note 32.1). These financial guarantees have been issued to banks under the supply agreements entered into with certain vendors.

12. Collateral held as security and other credit enhancements

The Company does not collect any collateral or other credit enhancements to cover its credit risks associated with its financial assets

12.1 Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The below table sets out details of additional undrawn facilities that the Company has at its disposal to further reduce liquidity risk.

12.2 Fair value measurements

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

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

Some of the Company''s financial assets and liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and liabilities are determined:

14. Approval of financial statements

The financial statements were approved for issue by the Board of Directors on May 30, 2017.

---

Mar 31, 2016

(i) Terms / rights attached to Equity Shares:

The company has one class of equity shares having a par value of Rs. 5/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution shall be according to the members right and interest in the Company.

1. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS (CONTD.) DISCLOSURES UNDER ACCOUNTING STANDARDS

1.1 Details on derivatives instruments and unhedged foreign currency exposures

I. The following derivative positions are open as at March 31, 2016. These transactions have been undertaken to act as economic hedges for the Company''s exposures to various risks in foreign exchange markets and may / may not qualify or be designated as hedging instruments.

Forward exchange contracts and options [being derivative instruments], which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

Outstanding forward exchange contracts entered into by the Company as on March 31, 2016

1.2 Note on Subsidiary Novener SAS

The Company acquired a controlling stake in Novener SAS in July 2009, a rechargeable battery conglomerate whose products are marketed under the brand name of "Uniross". As at March 31, 2016, the Company has an investment of Rs. 4,646.04 Lakhs (March 31, 2015 : Rs. 4,646.04 Lakhs) and has advanced amounts aggregating to Rs. 2,973.27 Lakhs (March 31, 2015 : Rs. 2,973.27 Lakhs). The Company''s total exposure towards investments and advances of Rs. 7,619.31 Lakhs stand fully provided for as at March 31, 2016 (March 31, 2015 : Rs. 7,619.31 Lakhs). The investment in Novener SAS is now valued at Rs. 1 in the financial statements of the company. Novener SAS and all the key entities of the Uniross group are now liquidated, as ordered by French Court judgements. The Company has therefore approached RBI for writing off the investment and advances as mentioned above and the same is awaited.

1.3 Amortisation of brand "Eveready"

Expert opinion was received whereby the working life of brand "Eveready" was estimated at more than 100 years. However, as a measure of prudence, the amortisation period of the brand has been kept at 40 years only.

1.4 Particulars of Loans, Guarantees or Investments covered under Section 186(4) of the Companies Act, 2013

Interest bearing (which is not lower than prevailing yield of related Government Security close to the tenure of respective loans) loans repayable on demand to Babcock Borsig Ltd. - Rs. 3552.84 Lakhs at the year end and maximum amount outstanding during the year Rs. 5582.03 Lakhs, for their business purposes.

Guarantees - Rs. Nil

Investment - Rs. Nil

DISCLOSURES UNDER ACCOUNTING STANDARDS

1.5 Employee benefit plans

1.5.a Defined contribution plans

The Company makes Provident Fund and Pension Fund contributions to 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 Company recognised Rs. 289.84 Lakhs (Year ended March 31 2015 Rs. 260.75 Lakhs) for Provident Fund contributions and Rs. 498.58 Lakhs (Year ended March 31, 2015 Rs. 363.58 Lakhs) for Pension Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

1.5.b Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Post-employment medical benefits

iii. Pension

iv. Leave Encashment

2. Segment information

The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea and general lighting products which come under a single business segment known as Fast Moving Consumer Goods. Sale outside India is below the reportable threshold limit, thus geographical segment information is not given.

3. Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The proposed areas of CSR activiteis are eradication of hunger, promoting education,gender equality,empowerment of women and promoting sports- National & Olympic. The expenditure incurred (Refer Note 23) during the year on these activities are as specified in schedule VII on the Companies Act, 2013.

(a) Gross amount required to be spent by the company during the year Rs. 47.96 Lakhs

(b) Amount spent during the year on:

4. Change in Accounting Policy

With effect from October 1, 2015, the Company has applied the principles of hedge accounting in accordance with AS-30 "Financial Instruments: Recognition and Measurement" with respect to derivatives contracts for hedging the price risk relating to purchases of Zinc. Accordingly, as at year ended March 31, 2016 the effective portion of changes in the fair value of such derivative contracts lying outstanding amounting to Rs. 172.94 Lakhs has been recognized in Cash Flow Hedge Reserve and ineffective portion of the same amounting to Rs. 47.06 Lakhs have been charged to the Statement of Profit and Loss and is included in Other Expenses (Note 23). As a result of the above mentioned change in the accounting policy, Statement of Profit and Loss for the year ended have been lower by Rs. 47.06 Lakhs and Reserve and Surplus as at March 31, 2016 is higher by Rs. 172.94 Lakhs.

5. Previous year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2015

1 CORPORATE INFORMATION

Eveready Industries (Eveready) is in the business of manufacture and marketing of batteries, flashlights and packet tea under the brand name of "Eveready". The Company also distributes a wide range of electrical products. Eveready has its manufacturing facilities at Chennai, Lucknow, Noida, Haridwar, Maddur and Kolkata and is supported by a sales and distribution network across the country.

2 ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS DISCLOSURES UNDER ACCOUNTING STANDARDS

Rs. Lakhs

Particulars As at March 31,2015 As at March 31, 2014

2.1 Contingent liabilities & commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Claims against the Company not acknowledged as debts:

- Excise & Customs * 1,769.70 1,769.70

- Sales tax 59.63 64.24

- Income tax :

The Company is in appeal in regard to assessments made 599.70 599.70

* Excludes interest claimed in a few cases by respective Authorities but amount not quantified.

(b) Guarantees 3,333.94 236.68

(c) Others (Includes ESI, Property Tax, Water Tax etc.) 157.25 196.69

(ii) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for

- Tangible assets 874.57 1,947.26

- Intangible assets 143.01 -

2.2 Details on derivatives instruments and unhedged foreign currency exposures

I. The following derivative positions are open as at March 31, 2015. These transactions have been undertaken to act as economic hedges for the Company''s exposures to various risks in foreign exchange markets and may / may not qualify or be designated as hedging instruments.

Forward exchange contracts and options [being derivative instruments], which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

2.3 During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1, 2014, the Company has revised the estimated useful life of some of its assets to align the useful life with those specified in Schedule II except as stated in note 2.6. Further, assets individually costing Rs. 5,000/- or less that were depreciated fully in the year of purchase are now depreciated based on the useful life considered by the Company for the respective category of assets. The details of previously applied depreciation method, rates / useful life are as follows:

Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets net of residual value, where the remaining useful life of the asset was determined to be nil as on April 1, 2014, and has adjusted an amount of Rs.1,780.91 Lakhs (net of deferred tax of Rs.192.63 Lakhs) against the opening deficit balance in the Statement of Profit and Loss under Reserves and Surplus.

The depreciation expense in the Statement of Profit and Loss for the year is lower by Rs. 541.06 Lakhs consequent to the change in the useful life of the assets.

2.4 Note on Subsidiary Novener SAS

The Company acquired a controlling stake in Novener SAS in July 2009, a rechargeable battery conglomerate whose products are marketed under the brand name of "Uniross". As at March 31, 2015, the Company has an investment of Rs. 4,646.04 Lakhs (March 31, 2014 : Rs. 4,646.04 Lakhs) and has advanced amounts aggregating to Rs. 2,973.27 Lakhs (March 31, 2014 : Rs. 2,973.27 Lakhs). The Company''s total exposure towards investments and advances of Rs. 7,619.31 Lakhs stand fully provided for as at March 31,2015 (March 31,2014 : Rs. 7,619.31 Lakhs). The investment in Novener SAS is now valued at Rs. 1 in the financial statements of the company. The Uniross Group which constitutes the operating entities under Novener SAS went under liquidation and are under external administration as ordered by a competent court in France. Novener SAS has also been put under liquidation during the year. The company has approached RBI for writing off the investment and advances as mentioned above. RBI has acknowledged the same and requested the company to approach for write off after the completion of liquidation which is pending.

2.5 Amortisation of brand "Eveready"

Expert opinion was received whereby the working life of brand "Eveready" was estimated at more than 100 years. However, as a measure of prudence, the amortisation period of the brand has been kept at 40 years only.

2.6 Particulars of Loans, Guarantees or Investments covered under Section 186(4) of the Companies Act, 2013

I nterest bearing (which is not lower than prevailing yield of related Government Security close to the tenure of respective loans) loans repayable on demand to Babcock Borsig Ltd. - Rs. Nil at the year end and maximum amount outstanding during the year Rs. 3488 Lakhs, for their business purposes.

Guarantees - Nil

Investment - Rs. 125.82 Lakhs (1,25,81,775 shares of HKD 1 each) in Everspark Hong Kong Private Limited (wholly owned subsidiary)

2.7 Employee benefit plans

2.7. a Defined contribution plans

The Company makes Provident Fund and Pension Fund contributions to 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 Company recognised Rs. 260.75 Lakhs (Year ended March 31, 2014Rs.234.34 Lakhs) for Provident Fund contributions and Rs. 363.58 (Year ended March 31, 2014 Rs. 197.56 Lakhs) for Pension Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

2.7. b Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Post-employment medical benefits

iii. Pension

iv. Leave Encashment

The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

2.8 Segment information

The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea and general electrical products which come under a single business segment known as Fast Moving Consumer Goods. Sale outside India is below the reportable threshold limit, thus geographical segment information is not given.

2.9 Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The proposed areas of CSR activities are eradication of hunger, promoting education,gender equality,empowerment of women and promoting sports- National & Olympic. The expenditure incurred (Refer Note 23) during the year on these activities are as specified in schedule VII on the Companies Act, 2013.

2.10 Note for change in Dividend

The Board of Directors ("the Board") of the Company had approved the standalone financial statements of the Company for the financial year ending March 31, 2015 in their meeting held on May 11, 2015. In terms of the provisions of Section 123(1) of the Companies Act, 2013 that prevailed as on the date of the aforesaid Board meeting, as well as based on a legal opinion obtained by it, the Board, had recommended a final dividend of Rs. 2/- per share, excluding dividend distribution tax, out of the profits for the year ending March 31, 2015.

Subsequently, with the Companies (Amendment) Act, 2015 becoming effective from May 29, 2015, the Company is unable to declare the said recommended dividend as the Company has net accumulated losses of Rs. 96.63 Lakhs as at March 31, 2015 after setting of previous losses against the profits for the year ending March 31, 2015. The Board has therefore, in order to be compliant with the Companies (Amendment) Act, 2015, decided to revise the previously approved standalone financial statements solely insofar as it relates to the reversal of the previously proposed final dividend and dividend distribution tax thereon.

2.11 Previous year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2013

1. Corporate Information

Eveready Industries (Eveready) is in the business of manufacture and marketing of batteries, flashlights and packet tea under the brand name of "Eveready". The Company also distributes a wide range of lighting products. Eveready has its manufacturing facilities at Chennai, Lucknow, Noida, Haridwar, Maddur and Kolkata and is supported by a sales and distribution network across the country.

2.1 Details on derivatives instruments and unhedged foreign currency exposures

I. The following derivative positions are open as at March 31, 2013. These transactions have been undertaken to act as economic hedges for the Company''s exposures to various risks in foreign exchange markets and may / may not qualify or be designated as hedging instruments.

Forward exchange contracts and options [being derivative instruments], which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

The Company acquired a controlling stake in Novener SAS (Novener) in July 2009, a rechargeable battery conglomerate whose products are marketed under the brand name of "Uniross". As at March 31, 2013, the Company has an investment of Rs. 4,646.04 Lakhs and advances aggregating Rs. 2,973.27 Lakhs. During the year ended March 31, 2012, the Company had created a provision of Rs. 7,500 Lakhs towards (a) diminution in the carrying cost of its investment; (b) amount advanced till March 31, 2012 and (c) certain anticipated obligatory payment commitments and the charge for the same was included under "exceptional items".

By the year ended March 31, 2013, an additional charge ofRs. 119.31 Lakhs was incurred in respect of (c) above and same is shown under the head Other Expenses (Note No. 23)

2.2 Amortisation of brand "Eveready":

Expert opinion was received whereby the working life of brand "Eveready" was estimated at more than 100 years. However, as a measure of prudence, the amortisation period of the brand has been kept at 40 years only.

2.3 Employee Benefit Plans

2.4.a Defined Contribution Plans

The Company makes Provident Fund and Pension Fund contributions to 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 Company recognised Rs. 210.92 Lakhs (Year ended March 31, 2012 Rs. 212.37 Lakhs) for Provident Fund contributions and Rs. 209.37 Lakhs (Year ended March 31, 2012 Rs. 116.72 Lakhs) for Pension Fund contributions in the Statement of Prof t and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Companies Provident Fund is exempted under section 17 of Employees'' Provident Fund and Miscellanous Provisions Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the Trust over statutory rate, accordingly contribution by the Company includes a sum of Rs. NIL (Year ended March 31, 2012 Rs. 37.29 Lakhs).

2.4.b Defined Benefit Plans

The Company offers the following employee benefit schemes to its employees

i. Gratuity

li. Post-employment medical benefits

lii. Pension

iv. Leave Encashment

2.5 Segment information

The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea and general lighting products which come under a single business segment known as Consumer Goods.

Geographical Segment

-Sales within India Rs. 1,05,054.47 Lakhs (2011-12 :Rs. 99,786.62 Lakhs) -Salesoutside India Rs. 3,902.69 Lakhs (2011-12: Rs.3,134.45 Lakhs)

2.6 Previous year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2012

1. Corporate Information

Eveready Industries (Eveready) is in the business of manufacture and marketing of batteries, flashlights and packet tea under the brand name of "Eveready". The Company also distributes a wide range of lighting products. Eveready has its manufacturing facilities at Chennai, Lucknow, Noida, Haridwar, Maddur and Kolkata and is supported by a sales and distribution network across the country.

(i) Terms / rights attached to Equity Shares :

The company has one class of equity shares having a par value of Rs 5 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution shall be according to the members right and interest in the Company.

2.1 Contingent liabilities & commitments (to the extent not provided for) Rs Lakhs

Particulars As at March 31,2012 As at March 31,2011

(i) Contingent liabilities

(a) Claims against the Company not acknowledged as debts :

-Excise & Customs* 1,825.68 1,781.91

- Sales tax 91.14 133.56

- Income tax:

The Department is in appeal in regard to matters decided in favour of the Company - 71.59

The Company is in appeal in regard to assessments made 599.70 599.70

In respect of matters relating to erstwhile The Bishnauth Tea Company Limited (BTCL) [amalgamated with the Company effective April 1, 2000] - 125.48

"Excludes interest claimed in a few cases by respective Authorities but amount not quantified.

(b) Others (Includes ESI, Property Tax, Water Taxetc.) 295.29 207.39

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances Rs 220.68 Lakhs; 2010-11 : Rs 467.43 Lakhs)

- Tangible assets 1,234.56 2,977.81

- Intangible assets 18.45 -

The Company acquired a controlling stake in Novener SAS (Novener) in July 2009,a rechargeable battery conglomerate whose products are marketed under the brand name of 'Uniross". As at March 31, 2012, the Company has an investment ofRs 4,646.04 Lakhs and has advanced amounts aggregating to Rs 2,279.51 Lakhs. Even though Novener's operations and organization was substantially restructured in 2010-11, its performance had been less than satisfactory primarily on account of the poor recessionary condition in Europe and other geographies where it has a strong market presence. Novener has registered loss for the current year as well, resulting in a complete erosion of its networth. The current global economic environment in the context of Novener's operations and the likelihood of it continuing to prevail for some more time may possibly make it even more difficult for Novener to achieve a complete turn around in the foreseeable future. Given this back drop and the threat that the Company may not be able to recover its investments, management has, as a measure of prudent accounting and governance, created a provision of Rs 7,500 Lakhs towards (a) diminution in the carrying cost of its investment; (b) amount advanced till the year end and (c) certain anticipated obligatory payment commitments and the charge for the same is included under 'exceptional items".

2.2 Central Government approval for Managerial Remuneration :

The Statement of Profit & Loss includes Managerial Remuneration amounting to Rs 358.56 Lakhs in respect of three executive directors of the Company. In the absence of profits for the financial year, the Company has made necessary application to the Central Government for treating the above asminimum remuneration and approval is awaited.

2.3 Amortisation of brand "Eveready"

Expert opinion was received whereby the working life of brand "Eveready' was estimated at more than 100 years. However, as a measure of prudence, the amortisation period of the brand has been kept at 40 years only.

2.4 Employee Benefit Plans

2.4.a Defined Contribution Plans

The Company makes Provident Fund and Pension Fund contributions to 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 Company recognised Rs 212.37 Lakhs (Year ended March 31, 2011 Rs 265.85 Lakhs) for Provident Fund contributions and Rs 116.72 Lakhs (Year ended March 31, 2011 Rs 204.82 Lakhs) for Pension Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Companies Provident Fund is exempted under section 17 of Employees' Provident Fund and Miscellanous Provisions Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the Trust over statutory rate, accordingly contribution by the Company includes sum of Rs 37.29 Lakhs ( March 31, 2011 Rs 68.00 Lakhs).

2.4.b Defined Benefit Plans

The Company offers the following employee benefit schemes to its employees :

i. Gratuity

ii. Post-employment medical benefits

iii. Pension

iv. Leave Encashment

2.5 Segment information

The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea and general lighting products which come under a single business segment known as Consumer Goods.

Geographical Segment

- Sales with in India Rs 99,786.62 Lakhs (2010-11 : Rs 97,088.83 Lakhs)

- Sales outside India Rs 3,134.45 Lakhs (2010-11: Rs3,137.17 Lakhs)

Notes: (i) Figures in brackets relate to the previous year.

(ii) The expected time of resulting outflow is one to two years.

2.6 Previous year's figures

The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

---

Mar 31, 2011

1. Based on valuation made by professional valuers, Brand "Eveready" was valued at Rs. 66,000 Lakhs and was taken into the books in 2004-05.

2. Expert opinion was received whereby the working life of brand "Eveready" was estimated at more than 100 years. However, as a measure of prudence, the amortisation period of the brand has been kept at 40 years only.

3. Brand included as Intangibles in Fixed Assets (Schedule 5) includes purchased brand [Gross block: Rs. 1,600 Lakhs (31.3.2010 : Rs. 1,600 Lakhs) and Net Block Rs. 480 Lakhs (31.3.2010:Rs. 640 Lakhs)].

4. Contingent Liabilities

4.1. Claims against the Company not acknowledged as debts

- Excise & Customs:Rs. 1,781.91 Lakhs (31.3.2010 :Rs. 1,773.55 Lakhs).*

- Sales tax:Rs. 133.56 Lakhs (31.3.2010 :Rs. 34.75 Lakhs).

Income tax

- The Department is in appeal in regard to matters decided in favour of the Company, the tax effect whereof is Rs. 71.59 Lakhs (31.3.2010 Rs. 71.59 Lakhs).

- The Company is in appeal in regard to assessments made, the tax effect whereof is Rs. 599.70 Lakhs (31.3.2010 : Rs. 599.70 Lakhs).

- In respect of matters relating to erstwhile The Bishnauth Tea Company Limited (BTCL) [amalgamated with the Company effective 1 April, 2000: Rs. 125.48 Lakhs (31.3.2010:Rs. 125.48 Lakhs)].

-Excludes interest claimed in a few cases by respective Authorities but amount not quantified.

4.2 Others : Rs. 207.39 Lakhs (31.3.2010 : Rs. 207.39 Lakhs).

4.3 Bank Guarantees : Rs.824.70 Lakhs (31.3.2010 : Rs. 134.06 Lakhs).

5. Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. 2,977.81 Lakhs (31.3.2010: Rs. 1,110.72 Lakhs).

6. The Proft and Loss Account includes net exchange Gain of Rs. 19.25 Lakhs (2009-10 : Loss of Rs. 47.27 Lakhs).

7. Loans and Advances (Schedule 10) include due from directors of the Company Rs. 19.70 Lakhs (31.3.2010 : Rs. 22.01 Lakhs). The maximum amount due from directors during the year wasRs. 22.01 Lakhs (2009-10 * 24.21 Lakhs).

8. Revenue Expenditure on Research & Development Rs. 217.52 Lakhs (2009-10 : Rs. 191.09 Lakhs) is included in Operating Expenses (Schedule 3).

9. Capital Work-in-Progress is inclusive of Capital Advances Rs. 712.01 Lakhs (31.3.2010 : Rs. 358.51 Lakhs).

10. Purchase of finished goods for resale appearing in Schedule 3 include Rs. 1,916.18 Lakhs (2009-10 : Rs. 228.69 Lakhs) towards purchase of 11.30 million pieces of Batteries (2009-10 : 9.04 million pieces), Rs. 5,964.11 Lakhs (2009-10 : Rs. 5,979.83 Lakhs) towards purchase of 16.59 million pieces of Flashlights (2009-10 :16.25 million pieces) and Rs. 6,095.75 Lakhs (2009-10 : Rs. 7,943.29 Lakhs) towards purchases of 37.62 million pieces of General Lights (2009-10 : 35.68 million pieces).

11. Earnings in Foreign Currency

Export of goods calculated on FOB basis : Rs. 1,728.18 Lakhs (2009-10 : Rs. 1,792.56 Lakhs).

12. Unpaid dividend represents dividend of earlier years on shares allotted to certain non-resident shareholders of the erstwhile The Bishnauth Tea Company Limited (BTCL) pursuant to the Scheme of Amalgamation of BTCL with the Company and whose present whereabouts are not known. The number of shares attributable to such dividend is 63,037 (2009-10 : 63,037) equity shares.

13. Related Party Disclosures List of Related Parties

a) Subsidiaries ¦ The Ownership, directly or indirectly through Subsidiary (ies)

NovenerSAS Idea Power Limited

UnirossSA Rechargeable Online SAS

Uniross Batteries SAS Celltex Limited

Industrial - Uniross Batteries (PTY) Ltd. Lognes Batteries Corp.

Uniross Batteries GmbH Uniross Batteries Corp.

Uniross Batteries Limited North American Battery Corp.

Zhongshan Uniross Industry Co. Limited Multiplier Industries Corp.

Everfast Rechargeables Limited Everspark Hong Kong Private Limited

b) Key Management Personnel

Executive Vice Chairman & Managing Director - Mr. D. Khaitan Wholetime Director - Mr. S. Saha

c) Relatives of Key Management Personnel with whom the Company had transactions during the year

Mrs. Neena Saha - Wife of Mr. S. Saha

Mr. A. Khaitan - Son of Mr. D. Khaitan

d) Entity having significant influence - Williamson Magor& Company Limited

14. Segment Reporting

(1) The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea, general lighting products, insect repellants and other homecare products which come under a single business segment known as Fast Moving Consumer Goods (FMCG).

(2) Geographical Segment -

Sales within India Rs. 97,088.83 Lakhs (2009-10: ^98,117.57 Lakhs)

Sales outside India Rs. 3,137.17 Lakh (2009-10:Rs. 3,025.35 Lakhs)

15. Disclosure in accordance with Accounting Standard (AS) 29

The Company has made provisions towards Sales Tax, Excise and Others in view of the following and details of which are set out below:

(a) The Company has a present obligation as a result of past events;

(b) It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(c) A reliable estimate can be made of the amount of obligation.

16. Convertible Warrants

The Company had on 17 October, 2007, issued and allotted 45,00,000 Convertible Warrants on preferential basis which were convertible at the sole option of the warrant holders within a period of 18 months from the date of allotment. During the year, an amount of Rs. Nil (2009-10 : Rs. 261 Lakhs) representing the initial amount paid on the allotment of such warrants has been forfeited on the expiry of the time frame to opt for conversion. The amount forfeited has been transferred to Capital Reserve.

17. The company acquired a controlling stake in Novener SAS in July 2009 and as at March 31, 2011, has an investment of Rs. 4,110 lakhs and has advanced amounts aggregating to Rs. 1,731.73 lakhs. Novener SAS incurred a loss of Rs. 5,236.19 lakhs for the year ended March 31, 2011 and as at that date its accumulated losses of Rs. 6,724.48 lakhs is in excess of its networth. The operations and the organization structure of Novener SAS are currently in the process of restructuring of which substantial part has been completed during the year ended March 31, 2011 and that the benefits and results of such restructuring would be forthcoming in the following years. Management is of the view that on account of its long-term involvement in Novener SAS, no provision is required on this account at this stage.

18. The company has agreed to provide contingent support upto a maximum amount of Rs. 2 million Euro to its subsidiary Novener SAS as and when necessary depending on the cash flow requirement.

19. Information pursuant to the Provisions of Para IV of Schedule VI to the Companies Act, 1956, is attached.

20. Previous year's figures have been recast/restated wherever necessary.

---

Mar 31, 2010

1 Based on valuation made by professional valuers, Brand "Eveready" was valued at Rs. 66,000 Lakhs and was taken into the books in 2004-05.

2 Expert opinion was received whereby the working life of brand "Eveready" was estimated at more than 100 years. However, as a measure of prudence, the amortisation period of the brand has been kept at 40 years only.

3 Brand included as Intangibles in Fixed Assets (Schedule 5) includes purchased brand [Gross block: Rs. 1,600 Lakhs (31.3.2009: Rs. 1,600 Lakhs) and Net Block: Rs. 640 Lakhs (31.3.2009 : Rs. 800 Lakhs)].

4. Contingent Liabilities

4.1. Claims against the Company not acknowledged as debts

- Excise & Customs : Rs. 1,773.55 Lakhs (31.3.2009 : Rs. 1,318.52 Lakhs).*

- Sales tax : Rs. 34.75 Lakhs (31.3.2009 : Rs. 93.41 Lakhs).

Income tax

- The Department is in appeal in regard to matters decided in favour of the Company, the tax effect whereof is Rs. 71.59 Lakhs (31.3.2009 Rs. 71.59 Lakhs).

- The Company is in appeal in regard to assessments made, the tax effect whereof is Rs. 599.70 Lakhs (31.3.2009 : Rs. 599.70 Lakhs).

- In respect of matters relating to erstwhile The Bishnauth Tea Company Limited (BTCL) [amalgamated with the Company effective 1 April, 2000: Rs. 125.48 Lakhs (31.3.2009 : Rs. 125.48 Lakhs)].

-Excludes interest claimed in a few cases by respective Authorities but amount not quantified.

4.2 Others : Rs. 207.39 Lakhs (31.3.2009 : Rs. 193.39 Lakhs).

4.3 Bank Guarantees : Rs.134.06 Lakhs (31.3.2009 : Rs. 193.61 Lakhs).

5. Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. 1,110.72 Lakhs (31.3.2009: Rs. 1,325.32 Lakhs).

6. Taxation

Provision for taxation includes provision for wealth tax Rs. 11 Lakhs (2008-09 : Rs. 11 Lakhs).

Note : a) The above excludes contribution to Gratuity Fund and provision for Leave liability as separate figures are not available.

7. The Proft and Loss Account includes net exchange Loss of Rs. 47.27 Lakhs (2008-09 : Loss of Rs. 13.56 Lakhs).

8. Loans and Advances (Schedule 10) include due from directors of the Company Rs. 22.01 Lakhs (31.3.2009 : Rs. 24.21 Lakhs). The maximum amount due from directors during the year was Rs. 24.21 Lakhs (2008-09 : Rs. 26.29 Lakhs).

9. Revenue Expenditure on Research & Development Rs. 191.09 Lakhs (2008-09 : Rs. 122.31 Lakhs) is included in Operating Expenses (Schedule 3).

10. Capital Work-in-Progress is inclusive of Capital Advances Rs. 358.51 Lakhs (31.3.2009 : Rs. 627.46 Lakhs).

Notes: 1) Excludes Batteries and Flashlights.

2) Figures in brackets represent particulars for 2008-09.

11. Purchase of finished goods for resale include Rs. 228.69 Lakhs (2008-09 : Rs. 1,350.98 Lakhs) towards purchase of 9.04 million pieces of Batteries (2008-09 :16.97 million pieces), Rs. 5,979.83 Lakhs (2008-09 : Rs. 6,845.79 Lakhs) towards purchase of 16.25 million pieces of Flashlights (2008-09 : 15.96 million pieces) and Rs. 7,943.29 Lakhs (2008-09 : Rs. 3,159.08 Lakhs) towards purchases of 35.68 million pieces of General Lights (2008-09 : 6.29 million pieces).

Notes:

(1) As certified by the management.

(2) Licensed / Registered Capacity for Batteries, Flashlights, Carbon Electrodes, Machinery, Machinery Parts and Moulded Plastic Components include additional/ new capacities for which Memorandum have been filed with the appropriate authority and which have been duly acknowledged by them under the Scheme of delicensing notified by the Government vide Notification No. 477 (E) dated 25.7.1991.

(3) On single shift basis.

(4) Includes production for captive consumption.

(5) Figures in bracket represent data for the previous year.

(6) The Hyderabad manufacturing facility has been discontinued from the close of business of April 24,2010.

12. Earnings in Foreign Currency

Export of goods calculated on FOB basis : Rs. 1,792.56 Lakhs (2008-09 : Rs. 1,766.07 Lakhs).

13. Unpaid dividend represents dividend of earlier years on shares allotted to certain non-resident shareholders of the erstwhile The Bishnauth Tea Company Limited (BTCL) pursuant to the Scheme of Amalgamation of BTCL with the Company and whose present whereabouts are not known. The number of shares attributable to such dividend is 63,037 (2008-09 : 63,037) equity shares.

14. Related Party Disclosures List of Related Parties

a) Subsidiaries The Ownership, directly or indirectly through Subsidiary (ies)

NovenerSAS Idea Power Limited

UnirossSA Rechargeable Online SAS

Uniross Batteries SAS Celltex Limited

Industrial - Uniross Batteries (PTY) Ltd. Lognes Batteries Corp.

Uniross Batteries GmbH Uniross Batteries Corp.

Uniross Batteries Limited North American Battery Corp.

Zhongshan Uniross Industry Co. Limited Multiplier Industries Corp.

Everfast Rechargeables Limited Everspark Hong Kong Private Limited

b) Key Management Personnel

Executive Vice-Chairman & Managing Director - Mr. D. Khaitan

Wholetime Director - Mr. S. Saha

c) Relatives of Key Management Personnel with whom the Company had transactions during the year

Mrs. Neena Saha - Wife of Mr. S. Saha

Mr. A. Khaitan - Son of Mr. D. Khaitan

d) Entity having significant influence - Williamson Magor& Company Limited

Notes: 1. Figures in brackets are for the previous year.

2. In accordance with Companys scheme.

Note: 1. Figures in brackets are for the previous year.

15. Segment Reporting

(1) The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea, general lighting products, insect repellants and other homecare products which come under a single business segment known as Fast Moving Consumer Goods (FMCG).

Note : 1. Figures in italics are in respect of the previous year.

Notes : 1. PRMB represents Post Retiral Medical Benefits.

2. Different discount rates used on account of separate plans and on account of different tenures of working lives of employees.

3. Pension and Gratuity Plans are funded while PRMB and leave liability are unfunded.

4. Figures in italics are in respect of the previous year.

5. Investment details of Gratuity fund in respect of certain employees are not available whose contribution is deposited and managed by Life Insurance Corporation of India.

16. Disclosure in accordance with Accounting Standard (AS) 29

The Company has made provisions towards Sales Tax, Excise and Others in view of the following and details of which are set out below

(a) The Company has a present obligation as a result of past events;

(b) It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

17. Convertible Warrants

The Company had on 17 October, 2007, issued and allotted 45,00,000 Convertible Warrants on preferential basis which were convertible at the sole option of the warrant holders within a period of 18 months from the date of allotment. During the year, an amount of Rs. 261 Lakhs representing the initial amount paid on the allotment of such warrants has been forfeited on the expiry of the time frame to opt for conversion. The amount forfeited has been transferred to Capital Reserve.

Unhedged exposure with respect to receivables as at 31st March 2010 was Rs. 66.22 Lakhs (US$ 0.15 million) [ 31.03.09 - Rs.117.28 Lakhs (US$ 0.24 million)] and with respect to amounts payable on account of import of Goods and Services Rs. 525.84 Lakhs (US$ 1.13 million & JPY 3.87 million)! 31.03.09 - Rs.116.79 Lakhs (US$0.24 million)]. The above disclosures have been made consequent to an announcement by the Institute of Chartered Accountants of India in December, 2005.

18. Information pursuant to the Provisions of Para IV of Schedule VI to the Companies Act, 1956, is attached.

19. Previous years figures have been recast restated wherever necessary.