Amara Raja Energy & Mobility Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Sep 2023

1. These financial results were reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meetings held on October 31, 2023. These results are as per Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The statutory auditors have carried out a limited review of these results for the quarter and half-year ended September 30, 2023 and have issued an unmodified report on these results.

2. In accordance with Ind AS 108 'Operating Segment', the Company has disclosed Segment information on consolidated basis for the quarter and half-year ended September 30, 2023 which is available as part of the Unaudited Consolidated Financial Results of the Company.

3. The Board of Directors at its meeting held on October 31, 2023 have approved an interim dividend of Rs. 4.8 per equity share of face value of Rs. 1 each. Record date for payment of interim dividend is fixed as November 10, 2023 (Friday).

4. The Board of Directors of the Company have approved a change of name of the Company from Amara Raja Batteries Limited to Amara Raja Energy & Mobility Limited. The new name, conveys the Company's commitment to becoming a leader in the energy and mobility sector. It accurately represents current business activities and future aspirations to strengthen market position, enhance brand value, and capitalize on new opportunities.



The change of name of the Company was approved by the shareholders of the Company on August 12, 2023. The Company has also received a fresh certificate of incorporation from the Ministry of Corporate Affairs dated September 27, 2023 effective which the name has been changed.

5. On January 30, 2023, a fire broke out at one of the manufacturing facilities of the Company at Chittoor, Andhra Pradesh which caused damage to the Company’s property, plant and equipment and inventories. There were no loss of lives. The Company recognised a loss of Rs. 438.56 crores arising from such incident during the quarter and year ended March 31, 2023.



The Company has a valid mega all risk insurance policy covering the fire accident and has lodged a claim with the Insurance Company for losses suffered on account of the property, plant and equipment, inventories and loss of profits. The Insurance Company has admitted the claim based on an interim survey carried out by the surveyor appointed by it and the extent of final loss admissible under the policy is being evaluated by the surveyor. The Company estimated and recognised an insurance claim receivable in respect of the claim in accordance with its accounting policy. The aforementioned losses and the corresponding credit arising from the insurance claim receivable were presented on a net basis under Exceptional items for the year ended March 31, 2023.



During the half-year ended September 30, 2023, the Company has received an adhoc payment of Rs. 100 crores from the Insurance Company and Rs. 92.94 crores from processing and/or sale of scrap. The Company is confident of realizing the balance amount on final determination of the loss and completion of the related activities.

6. Consequent to the Share Purchase Agreement dated July 1, 2023, entered into between the Parent and RNGalla Family Private Limited (Promoter of the Parent), the Parent has acquired 100% stake in Amara Raja Power Systems Limited (“ARPSL”) for a consideration of Rs. 133 crores. Accordingly, ARPSL became a wholly-owned subsidiary of the Company with effect from September 29, 2023.

7. The company has further infused Rs. 100 crores during the current quarter into Amara Raja Circular Solutions Private Limited ("ARCSPL"), a wholly-owned subsidiary of the Company for its capital investments.

8. The Board of Directors of the Company at its meeting held on September 26, 2022, have approved a Scheme of Arrangement amongst Mangal Industries Limited ('Demerged Company') and Amara Raja Energy and Mobility Limited (‘ARBL’ or the ‘Resulting Company’, or the ‘Company’) and their respective shareholders and creditors, under the provisions of Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 ("Scheme") with an appointed date of April 1, 2022 or such other date as may be agreed. The Scheme, inter-alia, provides for demerger of the plastic component for battery business (‘Demerged Undertaking’) from the Demerged Company to the Resulting Company, and consequent issue of fully paid-up equity shares by the Company to the shareholders of the Demerged Company as per the share entitlement ratio defined in the Scheme. The Scheme is subject to the fulfilment of certain conditions including receipt of approval of shareholders (majority of public shareholders) and creditors of the Company, approval of other regulatory authorities as may be required, including those of the Stock Exchanges, Securities and Exchange Board of India (“SEBI”) and the Hon’ble jurisdictional National Company Law Tribunal (“NCLT”) and any other authority as may be applicable.



The Company has received no objection from the Stock Exchanges and an approval from the equity shareholders and unsecured creditors of the Company at the NCLT convened meetings held on April 12, 2023. Thereafter, an application has been filed with the Hon'ble NCLT, Amaravati Bench for its approval. The necessary effects of scheme would be given in the financial results in the period in which the scheme is approved and file with the Registrar of Companies.