Integrated Annual Report 2025-26 376 48. Additional regulatory information: a. Ratios: Particulars 2026 2025 Debt-Equity Ratio (times) (Long term Borrowings + Short term Borrowings)/(Total Equity)...................................................................................... 0.01 0.02 Debt Service Coverage Ratio (times) (Profit before interest, depreciation, amortisation, impairments, loss from investments related to subsidiaries, associates and joint ventures, exceptional items and tax )/(Gross interest for the period + Principal Repayments of long term borrowings within a year)....................................................................................... 30.05 50.22 Return on Equity (Net Profit for the period/Average Total Equity for the period).......................................................................................... 23.01% 20.82% Inventory Turnover (times) (Cost of materials consumed/Average Inventories for the period).................................................................................... 10.73 8.61 Trade Receivables Turnover (times) (Revenue from sale of goods and services)/(Average Trade Receivable for the period)................................... 23.42 22.17 Trade Payables Turnover (times) (Purchase of goods and services + Other Expenses)/(Average Trade Payable for the period)..................... 4.51 4.53 Net Capital Turnover (times) (Revenue from operations)/[Average working capital (Current assets less Current liabilities) for the period]............................................................................................................................................................................................................................ 8.44 9.26 Net Profit margin (%) (Net Profit for the period/Income from operations)..................................................................................................................... 10.58% 9.99% Return on Capital Employed (%) (Profit before interest and tax/(Average Total Equity + Average Total Debt for the period).......................... 30.23% 27.27% Return on Investment (%) (Income earned on investments/Average Investment for the period)............................................................................. 7.11% 7.80% Explanatory notes: (i) Cost of materials consumed for the purpose of Inventory turnover ratio includes Purchases of stock-in-trade and Changes in inventories of finished goods, stock-in-trade and work-in-progress. (ii) Investments include current & non-current investments including Fixed deposits, Certificate of Deposits, corporate deposits, Mutual Funds, Non-Convertible Debentures, Commercial Papers, Inter-corporate deposits excluding investments in Equity instruments and Preference shares. Explanation for change in the ratios by more than 25%: Debt Service Coverage Ratio (times) : The Debt Service Coverage Ratio is at 30.05 in current year as against 50.22 in previous year primarily due to increase in principal repayment of long term borrowings due within one year. b. Quarterly returns/statements filed by the Company with banks are in agreement with the books of accounts. c. The Ministry of Environment, Forest and Climate Change has notified the Environment Protection (End-of-Life Vehicles) Rules, 2025 (“ELV Rules”), which are effective from April 1, 2025. As per these rules, Extended Producer Responsibility (EPR) obligations are imposed on producers (“vehicle manufacturers”) for the scrapping of End-of-Life Vehicles and such obligations are to be fulfilled through the purchase of EPR certificates from registered Vehicle Scrapping Facilities via a Centralised Online Portal. The implementation details and operational procedures of the ELV rules including the modalities of the pricing mechanism for the EPR certificates are yet to be developed. Consequently, the Company is currently unable to reliably estimate a range of possible outcomes and the potential impact of these rules. The Company will continue to assess the ability to measure its obligations pursuant to the ELV Rules, as and when the aforesaid details of implementation framework are available. d. Transactions with Struck off Companies: Rupees crores Name of the Struck off Company Receivables Payables Other Outstanding Balances - Assets Other Outstanding Balances - Liabilities Number of Shares held by Struck off Companies Badri Sarraf Finance And Mutual Benefit Company Limited ...... — — — — 796 Cherrytin Online Private Limited ................................................................... * — — — — Dreams Comtrade Private Limited ................................................................ — — — — 2
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