Cummins India Limited Annual Report 23-24-0

BANKERS :
State Bank of India

HDFC Bank Limited
Citibank, N.A.
Bank of America
ICICI Bank Limited
The Hongkong Shanghai Banking Corporation Limited
YES Bank Limited
J.P. Morgan Chase, N.A.
AUDITORS :
Price Waterhouse & Co. Chartered Accountants LLP
7th Floor, Business Bay, Tower A,
Wing - 1, Airport Road, Yerwada,
Pune – 411006
REGISTRAR & TRANSFER AGENT :

Link Intime India Private Limited
C-101, 1st Floor, 247 Park,
L.B.S. Marg, Vikroli (West),
Mumbai 400 083
Phone : (022) 49186270
Fax : (022) 49186060
E-mail : [email protected]
Website : www.linkintime.co.in
CUMMINS INDIA LIMITED

[CIN : L29112PN1962PLC012276]
e d ffice u ins ndia ffice a pus
Tower A, 5th Floor,
Survey No. 21, Balewadi,
Pune 411 045
Phone : (020) 67067000
Fax : (020) 67067015
E-mail : [email protected]
Website : www.cumminsindia.com
22 Cummins India Limited l

DIRECTORS’ REPORT
TO THE MEMBERS,
The Board of Directors take pleasure in presenting the Sixty-Third Annual Report including inter-alia
Directors’ Report, its annexures and audited financial statements (including standalone consolidated
financial statements along with respective Auditors’ Report thereon) for the year ended March 31, 2024. The
consolidated performance of the Company and its subsidiaries has been referred to wherever required.
1. FINANCIAL RESULTS:
On Standalone basis:- On Consolidated basis:-
During the Financial ear 2023-24, During the Financial ear 2023-24,
revenue from operations was ,95 .60 revenue from operations was 9,000.20
Crores as compared to 7,744.43 Crores Crores as compared to 7,772.09 Crores
during the previous year (16% higher). during the previous year (16% higher).
Profit after tax increased to 1,660.62 Profit after tax increased to 1,720.5
Crores from 1,129. 2 Crores recorded Crores from 1,22 .15 Crores recorded
for the previous year (47% higher). for the previous year (40% higher).
FINANCIAL SUMMARY STANDALONE CONSOLIDATED
2023-24 2022-23 2023-24 2022-23

( in Crores) ( in Crores) ( in Crores) ( in Crores)
APPROPRIATION OF PROFIT:
Profit before taxation 2,143.05 1,492.07 2,204.61 1,591.29
Net Profit for the year after tax 1,660.62 1,129. 2 1,720.58 1,22 .15
Dividend 859.32 623.70 859.32 623.70
* Includes Exceptional Items amounting to ₹ (1.70) Crores (F.Y. 2022-23 : ₹ (14.30) Crores)
2. RESERVES:
The closing balance of reserves, including retained earnings, of the Company as at March 31, 2024 was
6,107.65 Crores. During the Financial ear, no amount was proposed to be transferred to the Reserves.
3. BUSINESS UPDATE AND STATE OF COMPANY’ S AFFAIRS:
The information on Company’s affairs and related aspects is provided under Management Discussion and
Analysis Report, which has been prepared, inter-alia, in compliance with Regulation 34 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 and forms part of the Annual Report.
23 Annual Report 2023-2024 l

4. DIVIDEND:
The Directors have recommended a final dividend of 20/- (i.e. 1000%) per equity share of 2/- each fully
paid-up share in their meeting held on May 29, 2024, in addition to the interim dividend of 1 /- (900%)
per equity share of 2/- each fully paid-up share declared on February 07, 2024, aggregating to 3 /-
(i.e. 1900%) per equity share of 2/- each fully paid-up share for the year ended March 31, 2024 (previous
year 25 /- per equity share i.e. 1,250%). The final dividend is subject to approval of the Members at
the ensuing Annual General Meeting and shall be subject to deduction of income tax at source as per
applicable laws.
The final dividend recommended, and the interim dividend paid is in accordance with the principles and
criteria as set out in the dividend distribution policy.
5. SHARE CAPITAL:
The paid-up share capital of the Company is 554,400,000/- divided into 277,200,000 equity shares of
2/- each as on March 31, 2024. our Company has not come up with any issue (public, rights or
preferential) during the year. There is no change in the share capital during Financial ear 2023-24.
6. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES:
our Board is pleased to provide details of the following subsidiary, joint ventures and associates as on
March 31, 2024 : -
a) Cummins Sales & Serv ice Priv ate Limited ( CSSPL) :
CSSPL, a wholly owned subsidiary, of the Company focuses on sales of Cummins engines, parts,
accessories and providing service support to engines and generators mainly in parts of Northern
India close to the National Capital Region (NCR). CSSPL generated a revenue of 199.02 Crores
from its operations for the year ended March 31, 2024, as compared to 145.51 Crore during the
previous year (37% higher).
b) Cummins Research and Technology India Priv ate Limited ( CRTIPL) :
The Board of directors of CRTIPL at its meeting held on March 21, 2016, had decided to cease
operations of CRTIPL. Accordingly, it ceased its operations from April 1, 2016. The Members of
CRTIPL, in their extra-ordinary general meeting held on April 1, 2022, passed a resolution to initiate
voluntary winding-up of CRTIPL under the Companies Act, 2013 and Insolvency and Bankruptcy
Code, 2016. The liquidator, appointed by the Members at the extra-ordinary general meeting,
completed all the procedures pertaining to the voluntary winding-up, and submitted the dissolution
application with the Mumbai Bench of The National Company Law Tribunal (‘NCLT’) on May 20,
2023. The final order of dissolution (voluntary liquidation) has been passed by NCLT on December
13, 2023 and accordingly, CRTIPL ceases to exist effective from that date.
c) Valv oline Cummins Priv ate Limited ( VCPL) :
VCPL, a 50:50 joint venture between Valvoline International Inc., USA, one of the global leaders
in lubricants and engine oils, and your Company, VCPL generated a revenue of 2,255.59 Crores
from its operations for the year ended March 31, 2024, as compared to 2,150.25 Crores during the
previous year 5% higher).

d) Cummins Generator Technologies India Priv ate Limited ( CGTIPL) :
our Company owns 4 .54% shareholding in the Associate Company namely CGTIPL which is
in the business of design, manufacturing, marketing, sales and service of alternators and related
spare parts. CGTIPL generated revenue of 1, 05.3 Crores from its operations for the year ended
March 31, 2024, as compared to 1, 03.26 Crores during the previous year (0.12% higher).
The Members of CGTIPL at their Extra-ordinary General Meeting held on March 17, 2022, approved
a scheme of reduction of the issued, subscribed and paid-up share capital of the Company (the
‘Scheme’) from 16,070,010/- consisting of 1,607,001 equity shares of 10/- each to 15,995,6 0/-
consisting of 1,599,56 equity shares of 10/- each by paying off, cancelling and extinguishing,
in aggregate, 7,433 equity shares of the Company (‘Capital Reduction’) as recommended by the
Board of Directors in their meeting held on February 11, 2022. The Company has filed a petition
with Hon’ble National Company Law Tribunal, Mumbai Bench, (‘Hon’ble NCLT’) seeking approval
for the said Scheme of Capital Reduction on April 07, 2022. No effect of the scheme has been given
in CGTIPL financial statements as at and for the year ended March 31, 2024, pending approval from
Hon’ble NCLT.
As required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
consolidated financial statements of the Company, its subsidiary, joint venture and associate
companies, prepared in accordance with the applicable Indian Accounting Standards (Ind AS)
notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended, form part
of the Annual Report.
Further, a statement containing the salient features of the financial statement of subsidiary, associate
company and joint venture in the prescribed Form AOC-1 is appended as Annexure ‘ 1’ which forms part
of this Report.
Pursuant to the provisions of Section 136 of the Companies Act, 2013, the financial statements of
the Company, consolidated financial statements along with relevant documents and separate
financial statements in respect of CSSPL, are available on the website of the Company on
https://www.cummins.com/en/in/investors/india-financials.
The Company will make the said financial statements and related detailed information of CSSPL available
upon request by any Member of the Company. These financial statements will also be kept open for
inspection by any Member at the Registered Office of the Company and of CSSPL.
7. CHANGE IN THE NATURE OF THE BUSINESS:
During the year under review, there was no change in the nature of the business pursuant to inter-alia
Section 134 of the Companies Act, 2013 and Companies (Accounts) Rules, 2014.
8. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
No loan or guarantee was given, or investment was made by your Company during the Financial ear
2023-24 pursuant to Section 1 6 of the Companies Act, 2013.
9. DEPOSITS:
our Company has not accepted any Public Deposits under Chapter V of the Companies Act, 2013 read
with the Companies (Acceptance of Deposits) Rules, 2014 during the Financial ear 2023-24.

10. FUND RAISING BY ISSUANCE OF DEBT SECURITIES, IF ANY
Pursuance to SEBI Circular No. SEBI/HO/DDHS/CIR/P/201 /144 dated November 26, 201 , read
with SEBI Circular No. SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/172 dated October 19, 2023,
the Directors the Directors confirm that the Company is not defined as a “Large Corporate” as per the
framework provided in the said Circular. Further, your Company has not raised any funds by issuance of
debt securities.
11. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
During Financial ear 2023-24, no materially significant related party transactions were entered into by
the Company, that may have potential conflict with the interests of Company at large.
Particulars of contracts or arrangements with related parties referred to in Section 1 (1) of the Companies
Act, 2013 in the prescribed Form AOC-2 is appended as Annexure ‘ 2’ which forms part of this Report.
The Policy on materiality of related party transactions as approved by the Board can be accessed on the
Company’s website at the link: https://www.cummins.com/en/in/investors/india-corporate-governance.
As required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, related
party transactions have been disclosed under significant accounting policies and notes forming part of
the Financial Statements in accordance with relevant accounting standards.
Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the resolution
for seeking approval of the Members on material related party transactions is being placed at the ensuing
Annual General Meeting scheduled on August 07, 2024.
12. CONSERVATION OF ENERGY:
During the Financial ear 2023-24 your Company has strived to imbibe energy conservation principles
and initiatives across all its facilities.
our Company generated a total of 65,02,276 WH of electricity from onsite solar installations. Details of
the same are mentioned below:
At CPG plant 121 kWP Solar power plant installed in Feb 2024. Per year 140400 kWh units will be
generated by this solar plant.
Overall energy conservation from existing as well as new solar PV installations:
Site Solar PV installation On-site solar energy

capacity generation in kWh
EP 3, 50 kWp 47,63,014 kWh
CPG 521kWp 5,45,410 kWh
Common Facility (ABO + IPDC+HHP RC+ DBU TTC) 35 kWp 10,13,74 kWh
PPSP 150kWp 1, 0,104 kWh
Apart from the solar energy projects, your company also undertook various other energy conservation
initiatives. Details of the same are mentioned below:
othrud Engine Plant of the Company undertook initiatives such as replacement of non-energy efficient
fans (460 Nos), installation of occupancy sensors for offices washrooms (60 Nos), N warehouse

and took focused efforts to arrest compressed air leakages (Leakage reduction from 976 to 664 cfm).
The Plant also continued implementation of the existing initiatives such as installation of LED Lights,
replacement of chillers, panel office ACs, and implementation of other low cost no cost projects. All
these initiatives resulted in savings of 4.62 lakh units of electricity.
At CPG Phaltan plant of the Company, 4 HVLS were installed which led to conservation of around 7 ,500
kWh units in replacement of AHU. Also, shop floor florescent lamp replaced with 120-watt LED lamps.
Now CPG shop floor is with 100% LED lamps. Energy saving achieved 45,000 kwH units annually.
At High Horsepower plant of the Company at Phaltan Rebuild Centre, fluorescent tube lights were
replaced with LED lights at paint booth area leading to energy saving of 1,742.4 kWh. Additionally, new
room heater On Off operation on timer at HT room was installed that led to energy savings of 2, 0 kWh.
At Company’s registered office, various initiatives were undertaken for replacement of fluorescent tube
lights with LED lights leading to a total saving around 35,100 kWh. The site also installed sensor for ramp
lights that led to energy saving around 4 0 kWh.
13. RESEARCH & DEVELOPMENT AND TECHNOLOGY ABSORPTION:
our Company is committed to introducing new products and improving existing products to have better
performance levels, lower life cycle costs, excellent safety, recyclability characteristics and meet stringent
emission norms tailored for the specific needs of the Indian industry.
our Company continues this endeavor by developing the next generation of systems in collaboration
with the parent company - Cummins Inc., USA.
Improved technical productivity, through new methodologies and technologies, is being continuously
pursued to reduce the costs associated with new product development and customer support. An example
of this is the further enhanced use of analysis-led design through computer models that help minimize
hardware testing and therefore accelerate product development cycle times with reduced product testing.
A. New Product Dev elopment: -
The following new Products were developed as part of the above initiatives during the year: -
1. Hotel load converter developed for Rail business to enter in Rail electrification space;
2. Entire range of CPCBIV+ products (engine gensets) was certified and launched;
3. New product range for Exports (20-330 kVA) was launched;
4. Marine engine product families to support the increasing commercial Marine Business;
5. Further enhancements of non-diesel product development capability such as use of alternative
fuels is being explored in India; and
6. Telematics and Analytics capabilities have been developed to improve uptime and fuel
efficiency performance of our products.
Further, your Company continues to strengthen its channel presence through its Genset Original
Equipment Manufacturers partners who have added 12 additional sales dealers across various
geographies.
B. Benefits derived as a result of the above activities are: -
1. Enhanced product and service capabilities through use of electronic tools and simulation
software to deliver improved engine performance;

2. Enhanced capability to tailor engine designs to improve value proposition for customers through
delivering superior power output, fuel economy, transient response and reduced emissions;
3. Enhanced product and service capabilities through use of electronic tools and simulation
software to control the engine performance and combustion process;
4. Enhanced capability to tailor engine designs to improve the value proposition for customers
through delivering superior power output, fuel economy, transient response and reduced
emissions;
5. Product and component availability to meet the new emission norms ahead of implementation;
6. Safer, recyclable, reliable, durable, and performance-efficient products and critical components;
7. Component indigenization capability was improved through enhanced test capability, rig test
and flow bench development and availability; and
. Significant enhancements in measurement capability were made to pursue business
opportunities in non- diesel applications to serve both the rural and international communities.
C. Future plans include: -
1. Developing local ‘fit-for-market’ solutions to meet export emission requirements.

2. Technological innovation to add value to products in the areas of alternate fuels, fuel cells,
power electronics, hybrid engines and recycle / re-use;
3. Continued expansion of the product range to serve the needs of both local and global market;
4. Continued focus on indigenization and partnering with suppliers for waste elimination initiatives;
and
5. Focused engine development for the Power Generation segment for the upcoming emissions
norms.
D. our Company continues to draw benefits from its parent company, Cummins Inc.’s technology,
advanced engineering, and research. With this support your Company is committed to develop
advanced fuel-efficient and emission-compliant products that use a variety of energy sources
and comply with future domestic emissions and carbon dioxide targets. These help to reduce
greenhouse gas emissions and improve air quality, whilst also enabling the products to deliver
superior performance, reliability, durability, and recyclability.
E. Expenditure on Research & Dev elopment ( R&D) :-
The total expenditure on R D was as follows:-
Particulars 2023-24 2022-23

( in Crores) ( in Crores)
Capital 6.69 7.42
Recurring 3.21 19.05
Total 9.90 26.47
Total R D expenditure as a percentage of total sales turnover 0.11% 0.35%

14. FOREIGN EX CHANGE EARNINGS AND OUTGO:
our Company continues to be Net Foreign Exchange Earner. During the year under review, your
Company exported 5, 51 engines and 5, 62 generator sets. Foreign exchange earned in terms of actual
inflows during the year 2023-24 and foreign exchange outgo in terms of actual outflows during the year
2023-24 were as follows:-
Particulars FY 2023-24 F 2022-23

( in Crores) ( in Crores)
Foreign exchange earnings* 1,810.90 2,276. 7
Foreign exchange outgo* 1,262.23 1,111. 7
* Equivalent value of various currencies
15. MANAGEMENT DISCUSSION & ANALYSIS AND CORPORATE GOVERNANCE

REPORT:
The Management Discussion and Analysis Report and the Corporate Governance Report which forms
part of this Report are appended as Annexure ‘ 3’ and ‘ 4’ respectively.
The Company has obtained a Certificate from Practicing Company Secretary confirming compliance
with conditions of the Code of Corporate Governance as stipulated in Schedule V of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (including amendments thereof) and the
same is appended as Annexure ‘ 6’ which forms part of this Report.
The Company has received a Certificate from Practicing Company Secretary confirming that none of
the Directors on the Board of the Company have been debarred or disqualified by MCA or SEBI or any
such statutory authority from being appointed / continuing as Director and the same is appended as
Annexure ‘ 7’ which forms part of this Report.
16. ANNUAL RETURN:
As per the requirement under Section 92(3) of the Companies Act, 2013, the draft Annual Return
for Financial ear 2023-24 is available on the website of the Company at the link:
https://www.cummins.com/en/in/investors/india-annual-reports. The Annual General Meeting is proposed
to be held on August 07, 2024. The Company shall upload a copy of Annual Return for Financial ear
2023-24 as soon it has filed the said Annual Return with Registrar of Companies.
17. RISK MANAGEMENT:
Business Risk Evaluation and Management is an ongoing process within the Organization. The Company
has a robust Enterprise Risk Management Framework to identify, monitor and minimize risks. As a
process, the risks associated with the business are identified and prioritized based on impact, probability
of occurrence, organization’s risk management capability and velocity of risk. Such risks are reviewed
by the Senior Management, Risk Management Committee and the Board on a regular basis. We have
a structured governance mechanism where risks identified under the ERM Framework are categorized
based on level of oversight required. Subsequently, Risk Owners and appropriate review forums are
identified for each of the risk and metrics are developed for monitoring and reviewing the risk mitigation
efforts. The established comprehensive Risk Management Framework ensures that risk areas having
a potential impact on Company’s continued existence as a going concern and to its development are
identified and addressed on timely basis.

The Risk Management Committee of the Board of Directors of your Company assists the Board in
(a) overseeing and approving the Company’s enterprise wide risk management framework including the
risk management processes, systems and practices of the Company; (b) overseeing that all existing
risks and new risks that the organization faces including cyber security risks have been identified and
assessed, and (c) overseeing that adequate resources have been allocated to effectively manage those
risks. Further details on Risk Management Committee are included in the Corporate Governance Report.
The details and process of Enterprise Risk Management implemented by the Company through Risk
Management Policy, are included in the Management Discussion and Analysis, which forms part of
Annual Report.
18. INTERNAL FINANCIAL CONTROL:
our Company has established adequate internal financial controls for ensuring orderly and efficient
conduct of its business, including adherence to Company’s policies, safeguarding of its assets, prevention
and detection of frauds and errors, accuracy and completeness of the accounting records and the timely
preparation of reliable financial information.
Details of internal financial control and its adequacy are included in the Management Discussion and
Analysis Report which is appended as Annexure ‘ 3’ and forms part of Annual Report.
19. VIGIL MECHANISM/ WHISTLE BLOWER POLICY:
our Company has a ‘Vigil Mechanism Policy’ which inter-alia provides adequate safeguards against
victimization of persons who may blow the whistle. Vigil Mechanism Policy may be accessed on the
Company’s website at the link: https://www.cummins.com/en/in/investors/india-corporate-governance.
In addition, your Company has complied with provisions relating to constitution of an Internal Committee
under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013 and has a stable well governed ethics investigations process. Regular workshops and awareness
programmes against sexual harassment are conducted across the organization. During the year under
review, no complaint pertaining to sexual harassment of woman employee was reported to the Committee
and consequently, no complaints remained unresolved as on March 31, 2024.
our Company’s leadership culture is to inspire and encourage all employees to reach their full potential.
A great leadership culture begins with outstanding leaders who create an outstanding place to work,
inspiring and encouraging all employees to achieve their full potential. Leaders connect people and their
work to the vision, mission, values, brand promise and strategies of the company, motivating them and
giving them a higher sense of purpose. Leaders also build trust in our teams and in our organizations and
align on key goals and priorities. Leaders foster open communications and offer various opportunities to
employees to express their feedback through several ways.
The Company is committed to the highest possible standards of openness, integrity and accountability
in all its affairs and to providing a workplace conducive to open discussion of its business practices. our
Company has laid out infrastructures and policy through which the employees can voice their concerns
about suspected unethical or improper practice, or violation of Cummins Code of Business Conduct
or complaints regarding accounting, auditing, internal controls or disclosure practices of the Company.
Protected disclosures can be made by a whistle blower through an email or dedicated telephone line or letter
to the Managing Director of the Company or Letter to Head of Legal Department or Letter to the Chairman of
Audit and Compliance Committee or via the Ethics helpline/ Webpage, details of which are available on
website www.cumminsindia.com.

20. COMPLIANCE WITH THE CODE OF CONDUCT:
All Directors on the Board and Senior Management have affirmed compliance to the Code of Conduct
and Cummins Code of Business Conduct respectively for the Financial ear 2023-24. A declaration
signed by the Managing Director affirming compliance with the Company’s Code of Conduct by the
Board of Directors and Senior Management for the Financial ear 2023-24 as required under Regulation
26(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is included in the
Corporate Governance Report which is appended as Annexure ‘ 4’ and forms part of this Report.
Pursuant to regulation 26(5) of the SEBI Listing Regulations, senior management has made periodical
disclosures to the Board relating to all material financial and commercial transactions, where they had (or
were deemed to have had) personal interest that might have been in potential conflict with the interest of
the Company.
21. DIRECTORS’ RESPONSIBILITY STATEMENT:
Based on the framework of internal financial controls and compliance systems established and maintained
by the Company, work performed by the internal, statutory, cost and secretarial auditors and/or external
consultant(s) including audit of internal financial controls over financial reporting by the statutory auditors
and the reviews performed by Management and the relevant Board Committees, including the Audit and
Compliance Committee, the Board is of the opinion that the Company’s internal financial controls were
adequate and effective during the Financial ear 2023-24.
Accordingly, pursuant to Section 134(5) of the Companies Act, 2013, the Board of Directors, to the best
of their knowledge and ability, confirm that:
(i) in the preparation of the annual accounts for the year ended March 31, 2024, the applicable
accounting standards have been followed and there was no material departure from the same;
(ii) they have selected such accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a true and fair view of the state of
affairs of the Company as on March 31, 2024 and of the profit for the period April 01, 2023 to March
31, 2024;
(iii) they have taken proper and sufficient care for the maintenance of adequate accounting records
in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;
(iv) they have prepared the annual accounts on a going concern basis;
(v) they have laid down internal financial controls to be followed by the Company and that such internal
financial controls are adequate and were operating effectively during the year; and
(vi) they have devised proper systems to ensure compliance with the provisions of all applicable laws
and that such systems were adequate and operating effectively.
22. DIRECTORS:
a) Changes in the composition of the Board of Directors:
Appointments and Re-appointments
Ms. Lira Goswami (DIN: 00114636) was appointed by the Board as an Additional (Non-Executive
and Independent) Director with effect from May 24, 2023 and was regularized as a Director (Non-

Executive and Independent) in 62nd Annual General Meeting of the Company held on August 03,
2023, to hold office for period of five (5) consecutive years effective from May 24, 2023 to May 23,
202 , not liable to retire by rotation.
Ms. ennifer Mary Bush (DIN: 09777114) Non-Executive Non-Independent Director of the Company
was appointed as the Chairperson of the Board with effect from November 07, 2023.
Mr. Sekhar Natarajan (DIN: 01031445) was appointed by the Board as an Additional Director (Non-
Executive Independent) with effect from May 29, 2024. On recommendation of the Nomination
and Remuneration Committee, the Board of Directors have proposed appointment of Mr. Sekhar
Natarajan as a Non-Executive and Independent Director, not liable to retire by rotation, for period
of five (5) consecutive years effective from May 29, 2024 to May 2 , 2029 to the Members of the
Company in the upcoming Annual General Meeting. The resolution seeking Member’s approval for
his appointment including continuance of Mr. Natarajan beyond December 14, 202 on account of
his attaining the age of 75 years on that date forms part of the Notice.
Mr. Farokh Nariman Subedar (DIN: 0002 42 ) was appointed by the Board as an Additional Director
(Non-Executive Independent) with effect from May 29, 2024. On recommendation of the Nomination
and Remuneration Committee, the Board of Directors have proposed appointment of Mr. Farokh
Subedar as a Non-Executive and Independent Director, not liable to retire by rotation, for period
of five (5) consecutive years effective from May 29, 2024 to May 2 , 2029 to the Members of the
Company in the upcoming Annual General Meeting. The resolution seeking Member’s approval for
his appointment forms part of the Notice.
In accordance with the Companies Act, 2013 and Articles of Association of the Company, Mr. Donald
ackson (DIN: 0 261104), Director (Non-Executive and Non-Independent) of the Company, retires
by rotation and being eligible, offer himself for re-appointment. The proposal seeking Member’s
approval for his re-appointment forms part of the Notice, which is also approved by the Board on the
recommendation of the Nomination and Remuneration Committee.
As required under Regulation 36(3) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 and Secretarial Standard 2, particulars of Directors seeking appointment/
re-appointment at this Annual General Meeting are given in the Annexure to the Notice and the
Board on the recommendation of Nomination and Remuenration Committee, recommends the
respective resolutions further to the Members for approval.
Cessation
During the year, Mr. P.S. Dasgupta (DIN: 00012552) resigned as Director (Non-Executive and
Independent) of the Company effective from close of business hours of May 24, 2023 on account
of professional exigencies. Consequently, he also ceased to be a Chairman of Stakeholders
Relationship Committee and Corporate Social Responsibility Committee Member of Audit
and Compliance Committee, Risk Management Committee and Nomination and Remuneration
Committee with effect from close of business hours of May 24, 2023. He had confirmed vide his
resignation letter that there were no other material reasons for his resignation.
Mr. Steven Chapman (DIN: 00496000) resigned as a Chairman, Non-Executive and Non-Independent
Director of the Company effective from close of business hours of September 30, 2023, on account
of pre-occupation and other personal reasons. Consequently, he also ceased to be a Member of
Nomination and Remuneration Committee with effect from close of business hours of September
30, 2023. He had confirmed vide his resignation letter that there were no other material reasons for
his resignation.
The Board places on record its appreciation for the outgoing Directors’ invaluable contribution and
guidance during their tenure.

Retirement
The Board at its meeting held on May 29, 2024 took note of Mr. Nasser Munjee’s (DIN: 000101 0)
and Mr. Rajeev Bakshi’s (DIN: 00044621) upcoming retirement as a Non-Executive Independent
Director effective from uly 31, 2024, upon completion of their second term.
The Board placed on record the deepest appreciation and gratitude for the valuable contributions
made by them during their tenure on the Board.
The details of Board composition, number of meetings held, details of directorships of Directors etc.
are provided in the Corporate Governance Report which is appended as Annexure ‘ 4’ and forms
part of this Report.
b) Committees of the Board:
The Board of Directors have constituted following Committees in order to effectively cater its duties
towards diversified role under the Companies Act, 2013 and the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015:-
Audit and Compliance Committee;

Stakeholders Relationship Committee;
Nomination and Remuneration Committee;
Corporate Social Responsibility Committee; and
Risk Management Committee
Details of the constitution, broad terms of references of each Committee and number of meetings
attended by individual Director etc. are provided in the Corporate Governance Report which is
appended as Annexure ‘ 4’ and forms part of this Report.
c) Policy on Director’ s Appointment and Remuneration:
The Policy of the Company on Director’s Appointment and Remuneration, including criteria for
determining qualifications, positive attributes, independence of the Directors and other matters
provided under Section 17 (3) of the Companies Act, 2013, adopted by the Board viz. Nomination
and Remuneration Policy, is appended as Annexure ‘ 8’ which forms part of this Report.
Details of the remuneration paid to the Board of Directors are provided in the Corporate Governance
Report. It is affirmed that the remuneration paid to the Directors is as per the terms laid down in the
Nomination and Remuneration Policy of the Company.
d) Board Performance Evaluation Mechanism:
Pursuant to the provisions of the Companies Act, 2013 and Regulation 17 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out the annual
performance evaluation of its own performance and the Directors, Chairperson individually, as well
as the evaluation of working of its Committees. Details of the evaluation mechanism is provided in
the Corporate Governance Report which is appended as Annexure ‘ 4’ and forms part of this Report.
e) Inter-se relationships between the Directors:
There are no relationships between the Directors inter-se.

f) Familiari ation Programme for Independent Directors:
During the year, various documents, background notes etc. were shared with the Independent
Directors to have a better insight into state of affairs of the Company.
The Chairman and/or the Managing Director also have periodic discussions with the newly
appointed Directors to provide them, details of initiatives of the Company for better understanding
of the Company, its business and the regulatory framework in which the Company operates and
equip him/ her to effectively fulfil his/ her role and responsibilities as a Director of the Company.
The details of familiarization programmes imparted are available at:

https://www.cummins.com/en/in/investors/india-corporate-governance.
g) Declarations from the Independent Directors:
Pursuant to the provisions of Section 149 of the Companies Act, 2013 read along with Rules
framed thereunder and Regulation 16(1)(b) and Regulation 25 of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, as amended from time to time, the Independent
Directors have submitted inter-alia declarations that each of them meets the criteria of independence
as provided in Section 149(6) of the Companies Act, 2013 and the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
The Independent Directors have also confirmed compliance with the provisions of the rule 6 of
Companies (Appointment and ualifications of Directors) Rules, 2014, as amended, relating to
inclusion of their name in the databank of Independent Directors.
Further, the Independent Directors have also confirmed that there has been no change in
the circumstances affecting their status as Independent Directors of the Company. The said
Certificates(s) were taken on record by Board after their requisite assessments.
The Board took on record the declaration and confirmation submitted by the Independent Directors
regarding their meeting the prescribed criteria of independence, after undertaking due assessment
of the veracity of the same as required under Regulation 25 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
23. NUMBER OF MEETINGS OF THE BOARD:
Five meetings of the Board of Directors were held during the year. The details of the meetings held and
attendance there at are provided in the Corporate Governance Report which is appended as Annexure
‘ 4’ and forms part of this Report. The maximum interval between any two meetings did not exceed 120
days, as prescribed by the Companies Act, 2013.
24. K EY MANAGERIAL PERSONNEL:
There were no changes in the ey Managerial Personnel(s) during the year.
25. PARTICULARS OF EMPLOYEES AND REMUENRATION:
The details in accordance with the provisions of Section 197(12) of the Companies Act, 2013, read with
Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules,
2016, is appended as Annexure ‘ 10’ which forms part of this Report.
Statement containing particulars of top 10 employees and particulars of employees as required under
Section 197(12) of the Act read with Rule 5(2) and (3) of the Companies (Appointment and Remuneration

of Managerial Personnel) Rules, 2014 is a separate Annexure in terms of proviso to Section 136(1) of
the Act, the Report and Accounts are being sent to the Members, excluding the aforesaid Annexure. The
said Statement is also open for inspection. Any Member interested in obtaining a copy of the same may
write to the Company Secretary at Cil.Investors cummins.com. None of the employees listed in the said
Annexure are related to any Director of the Company.
26. INDUSTRIAL RELATIONS:
Industrial Relations at all the plants of the Company continue to be cordial with minimal labour issues.
Multiple initiatives have been rolled out for shop employees to ensure better management governance,
career growth to associates working on shop floor at Megasite. Our unionized plant, EP concluded long
term wage settlement with Union in December 2023, settlement inclusive of productivity increase, linkage
to new performance categories along with wage rise was signed off and implemented amicably. This
settlement will help us to reward better performance, help employees to grow in the organization. We have
introduced a performance management system for our shop, office technician employees with updated
performance categories which shall help us to differentiate and recognize with employees contribution in
business success. We are taking right steps to provide them access to technology with which employees
can leverage our online systems for better learning and bringing effectiveness in their daily work. We
have also introduced an internal job posting system for all new positions across organization which helps
us to grow talent from non-exempt category. Our emphasis on “Right Environment” for all our employees
is continued as earlier to ensure that all our employees feel comfortable and secure at their workplace.
We ensured our employees are engaged through various sports activities and family functions such as
cricket tournaments for all our employees/ Family Day celebration etc. Employee participation in various
Corporate Responsibility projects has been commendable during the Financial ear. They joined hands
with Company to drive some critical social impact projects.
27. AUDITORS:
STATUTORY AUDITORS:
At the 60th Annual General Meeting held on August 12, 2021, M/s. Price Waterhouse Co Chartered
Accountants LLP, Chartered Accountants (Firm Registration No.: 304026E/E-300009) (“PWC”), was
appointed as Statutory Auditor of the Company to hold office till the conclusion of 65th Annual General
Meeting.
Accordingly, PWC completed audit for Financial ear 2023-24 and issued Auditor’s Report. There are no
qualifications, reservations, adverse remarks or disclaimers made by the auditors in the Audit Report for
the Financial ear 2023-24.
In terms of the Section 139(1) of the Companies Act, 2013 read with the Companies (Audit and Auditors)
Rules, 2014, the appointment of Statutory Auditors does not require ratification by the Members in Annual
General Meeting. Accordingly, the Board noted the continued appointment of PWC as the Statutory
Auditors of the Company for the Financial ear 2024-25 in its meeting held on May 29, 2024. PWC
have informed the Company that they are eligible to continue and their appointment is within the limits
prescribed under Section 141 of the Companies Act, 2013.
SECRETARIAL AUDITORS:
M/s Pramod Shah Associates, (FCS 334), was appointed to conduct the secretarial audit of the
Company for the Financial ear 2023-24, as required under Section 204 of the Companies Act, 2013 and
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The Secretarial
Audit Report in Form MR-3 and Secretarial Audit Report pursuant to Regulation 24A of SEBI (Listing

Obligations and Disclosure Requirements) Regulations, 2015 for Financial ear 2023-24 is appended as
Annexure ‘5’ which forms part of this Report. Both the reports do not contain any qualification, reservation
or adverse remark.
The Annual Secretarial Compliance Report has been submitted to the Stock Exchanges as required
under Regulation 24A of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.
Further, during the Financial ear 2023-24 and two previous financial years, no penalties, strictures were
imposed on the Company by Stock Exchange(s) or SEBI or any statutory authority, on any matter related
to capital markets.
The Board on the recommendation of the Audit and Compliance Committee has appointed M/s MM B
Associates LLP, Practicing Company Secretaries, (LLPIN: AAR-9997) to conduct the secretarial audit of
the Company for the Financial ear 2024-25 in its meeting held on May 29, 2024.
COST AUDITORS:
Pursuant to Section 14 of the Companies Act, 2013 read with the Companies (Cost Records and
Audit) Rules, 2014, as amended from time to time, the cost audit records maintained by the Company
in respect of its manufacturing activity is required to be audited. The Directors, on the recommendation
of the Audit and Compliance Committee, had appointed M/s. C S Adawadkar Co., Cost Accountants
(Firm Registration Number: 100401), to audit the cost accounts of the Company for the Financial ear
2023-24 at a remuneration of 950,000/- plus taxes as applicable and re-imbursement of out of pocket
expenses. The remuneration was ratified by Members in the 62nd Annual General Meeting held on
August 3, 2023.
Pursuant to recommendation of the Audit and Compliance Committee, the Board in its meeting held on
May 29, 2024 has appointed M/s C S Adawadkar Co. (Firm Registration No.: 100401), to audit the cost
accounts of the Company for the Financial ear 2024-25 at a remuneration of 950,000/- plus taxes as
applicable and re-imbursement of out of pocket expenses. As required under the Companies Act, 2013,
the Members ratification for the remuneration payable to M/s. C S Adawadkar Co, Cost Auditors, is
being sought at the ensuing Annual General Meeting.
M/s. C S Adawadkar Co, Cost Auditors, under Section 139(1) of the Companies Act, 2013 read with the
Companies (Audit and Auditors) Rules, 2014, have furnished a certificate of their eligibility and consent
for appointment.
28. CORPORATE SOCIAL RESPONSIBILITY POLICY AND ITS REPORT:
our Company is an early adopter of the Corporate Social Responsibility (CSR) initiatives. Corporate
Social Responsibility continues to be the core value of your Company embedded in the core value
of caring, which focuses on ‘serving and improving the communities in which we live’. our Company
works with ‘Cummins India Foundation’ towards three broad focus areas viz. Higher Education, Energy
and Environment and Equality of Opportunity. Additionally, Company also carries out other strategic
initiatives.
Details about the CSR Policy and initiatives taken by the Company during the year are available on
our website https://www.cummins.com/en/in/investors/india-corporate-governance. The Annual Report
on our CSR Activities inter-alia including the amount spent, unspent together with reasons thereof is
appended as Annexure ‘ 11’ which forms part of this Report.

29. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT :
As stipulated under the Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 read with the SEBI Circular dated May 10, 2021, your Company has introduced the
Business Responsibility and Sustainability Report (‘BRSR’) for Financial ear 2023-24, which provides
enhanced disclosures on Environment, Social and Governance (ESG) practices and focused areas of
the Company, is appended as Annexure ‘ 12’ and forms a part of this Report.
In terms of SEBI Listing Regulations, the Company has obtained, BRSR Reasonable assurance on
BRSR Core Indicators from Price Waterhouse Co Chartered Accountants LLP on a standalone basis
for the F 2023-24.
30. SECRETARIAL STANDARDS:
The Company is in compliance with applicable Secretarial Standards issued by the Institute of Company
Secretaries of India, specifically Secretarial Standards on Meetings of the Board of Directors (SS-1) and
Secretarial Standards on General Meetings (SS-2).
31. DIVIDEND DISTRIBUTION POLICY:
The Board of Directors of the Company have formulated a Dividend Distribution Policy which is
appended as Annexure ‘ 9’ and forms part of this Report. The policy is also available on our website
32. INVESTOR EDUCATION AND PROTECTION FUND ( IEPF) :
Pursuant to Section 124 and Section 125 of Companies Act, 2013 and IEPF Authority (Accounting,
Audit, Transfer and Refund) Rules, 2016, during the year under review, the Company has transferred the
following unclaimed and unpaid dividend and corresponding shares to IEPF, upon completion of period
of seven years:
Date of Type of Dividend Amount No of equity

Declaration transferred ( ) shares transferred
August 0 , 2016 Final Equity Dividend (F 2015-16) 1,15, 9,363 22,720
February 01, 2017 Interim Equity Dividend (F 2016-17) 62,99,520 14,122
33. DETAILS OF INSOLVENCY AND BANK RUPTCY CODE:
During the year under review, your Company has neither made any application nor any application is
pending under the Insolvency and Bankruptcy Code.
34. DETAILS REGARDING VALUATION REPORT:
During the year under review, your Company has not entered into any One-Time Settlement with Bank’s
or Financial Institutions and therefore, no details of valuation in this regard is available.
35. GENERAL:
Further, the Directors state that no disclosure or reporting is required in respect of the following items as
there were no transactions or applicability with respect to these items during the year under review:

a. Issue of equity shares with differential rights as to dividend, voting or otherwise;
b. Issue of shares (including sweat equity shares) by the Company to its employees;
c. The Managing Director of the Company did not receive any remuneration or commission from any
of its subsidiaries. Further, the Company had not appointed any other Whole-time Director except
the Managing Director;
d. No frauds were reported by Auditors under Section 143(12) of the Companies Act, 2013 and rules
frame thereunder;
e. No equity shares were lying under unclaimed suspense account during the financial year 2023-24;
f. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact
the going concern status and Company’s operations. However, Members’ attention is drawn to
the Statement on Contingent Liabilities, commitments in the notes forming part of the Financial
Statement;
g. No material changes and commitments occurred during April 01, 2024 till the date of this Report
which would affect the financial position of your Company; and
h. Details as prescribed under section 134 of the Companies Act, 2013 and Rules made thereunder,
applicable to the Company, have been specifically given in this Report, wherever applicable.
ACK NOWLEDGEMENT:
The Directors would like to express their sincere appreciation for the assistance and co-operation received
from the financial institutions, banks, government authorities, customers, vendors and members during
the year under review. The Directors also wish to place on record their deep sense of appreciation for the
committed services by the Company’s executives, staff and associates.
For and on behalf of the Board of Directors,
ennifer Mary Bush Ashwath Ram

Place : Pune Chairperson Managing Director
Date : May 29, 2024 DIN: 09777114 DIN: 00149501
Note: All the Annexures referred in the Directors’ Report form an integral part of the same. The entire Annual Report along
with the Notice convening the AGM and Financial Statements (Standalone and Consolidated along with respective Audit
Reports) shall be read together.

ANNEX URES TO THE DIRECTORS’ REPORT
Annexure 1 – STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL

STATEMENT OF SUBSIDIARIES/ ASSOCIATE COMPANIES/ JOINT VENTURES
Pursuant to first proviso to Section 129(3) of the Companies Act, 2013 read with Rule 5 of Companies
(Accounts) Rules, 2014 – Form AOC - 1
Part “A ”: Subsidiaries:-
Statement pursuant to Section 129(3) of the Companies Act, 2013 related to the wholly-owned subsidiary
Sr. Particulars
No.
1. Name of the subsidiary : Cummins Sales Service Private Limited
2 The date since when subsidiary was acquired October 01, 2015
3. Reporting period for the subsidiary concerned, if Financial ear 2023-24
different from the holding company s reporting period:
4. Reporting currency and Exchange rate as on the Indian Rupees ( )
last date of the relevant Financial year in the case of
foreign subsidiaries :
5. Share capital : 12.00 Crore
6. Reserv es & surplus : 23.42 Crore
7. Total assets : 9.01 Crore
. Total Liabilities : 53.59 Crore
9. Inv estments : Nil
10. Turnov er : 199.02 Crore
11. Profit before taxation : 13.29 Crore
12. Provision for taxation : 3.33 Crore
13. Profit after taxation : 9.96 Crore
14. Proposed Div idend : Not Applicable
15. % of shareholding : 100
Note: our Company does not have any subsidiary which is yet to commence operations, or which has been
liquidated or sold during the financial year.

Part “B ”: Associates and Joint Ventures:-
Statement pursuant to Section 129(3) of the Companies Act, 2013 related to Associate Company and
Joint Ventures
Name of Associates / Joint Ventures Valv oline Cummins Cummins Generator Technologies
Priv ate Limited India Priv ate Limited
1. Date of the latest audited Balance March 31, 2024 March 31, 2024
Sheet
2. Date on which the Associate/ Joint October 2 ,1994 uly 05, 2002
Venture was associated or acquired (Please refer note no. 1)
3. Shares of Associates / Joint Ventures
held by the Company on the year end
No. of Shares 9,500,000 equity shares 779,997 equity shares of 10/- each
of 10/- each
Amount of Investment in Associates / .04 Crores (Please 17.20 Crores (Please refer note
oint Ventures refer note no. 1) no. 2)
Extent of Holding % 50% 4 .54%
4. Description of how there is significant oint Venture Associate Company with control of
influence more than 20% of total share capital
5. Reason why the associate / joint NA NA
v enture is not consolidated
6. Net worth attributable to Shareholding 152.02 Crore 311.29 Crore
as per latest audited Balance Sheet
7. Profit/Loss for the year
i. Considered in Consolidation 92.51 Crore 152.60 Crore
ii. Not Considered in Consolidation 92.51 Crore 161.77 Crore
Notes:-
1. The shareholding in Valvoline Cummins Private Limited, valued at .46/- per share, was transferred
to the Company and consequently considered as a oint Venture post amalgamation of Cummins Sales
and Service India Limited (erstwhile wholly-owned subsidiary of Company) w.e.f. April 01, 200 vide
order of Hon’ble High Court of Bombay dated March 20, 2009.
2. The Company invested 220.50/- per share in Cummins Generator Technologies India Private Limited.
3. There is neither any Associate Company / oint Venture which is yet to commence operations nor any
Associate Company/ oint Venture which has been liquidated or sold during the year except Cummins
Research and Technology India Private Limited as mentioned in Note no. 4.
4. The Board of directors of Cummins Research and Technology India Private Limited (‘CRTI’) at its
meeting held on March 21, 2016, had decided to cease operations of CRTI. Accordingly, it ceased its
operations from April 1, 2016. The shareholders of CRTI, in their extra-ordinary general meeting held
on April 1, 2022, passed a resolution to initiate voluntary winding-up of CRTI under the Companies Act,
2013 and Insolvency and Bankruptcy Code, 2016. The liquidator appointed by the shareholders at the

extra-ordinary general meeting, completed all the procedures pertaining to the voluntary winding-up, and
had submitted the dissolution application with the Mumbai Bench of the National Company Law Tribunal
(‘NCLT’) on May 20, 2023. The final order of dissolution (voluntary liquidation) was passed by the NCLT
on December 13, 2023 and accordingly, CRTI ceases to exist.
5. Share of profit of oint Venture and Associate Company have been considered in consolidation.
ennifer Mary Bush Ashwath Ram Nasser Munjee

Chairperson Managing Director Director
DIN: 09777114 DIN: 00149501 DIN: 000101 0
Place: Indiana, USA Place: Dubai
Vinaya oshi Ajay S. Patil

Place : Pune Company Secretary Chief Financial Officer
Date : May 29, 2024 PAN: AM P 5216P PAN: AA PP9246

Annexure 2 – PARTICULARS OF CONTRACTS/ ARRANGEMENTS ENTERED INTO BY

THE COMPANY WITH RELATED PARTIES
Pursuant to clause (h) of Section 134(3) of the Companies Act, 2013 and Rule (2) of the Companies
(Accounts) Rules, 2014 – Form AOC - 2
This Form pertains to the disclosure of particulars of contracts or arrangements entered into by the Company
with related parties referred to in Section 1 (1) of the Companies Act, 2013 including certain arm’s length
transactions under third proviso thereto.
1. Details of contracts or arrangements or transactions not at arm s length basis
No contracts or arrangements or transactions were entered into during the year ended March 31, 2024,
which were not at arm’s length basis.
2. Details of material1 contracts or arrangement or transactions at arm’ s length basis
Name of the Nature of Nature, tenure and Salient Terms Amount of the
Related Party( s) Relationship particulars of transactions transaction
Cummins Limited, Subsidiary of As part of regular business All contracts 36 Crores
U (‘CL’) Cummins Inc., operations: with related
USA which is the party defined
1. sale of engines/gensets,
holding company as per Section
their parts, accessories, and
of the Company 2(76) of the
spares by the Company;
Companies
2. purchases of engines/ Act, 2013,
gensets, their parts, are reviewed
accessories or spares by for arm’s
the Company; length testing
3. availing/rendering of internally basis
any kind of service(s), the international
reimbursements received/ and domestic
paid, purchase/ sale/ transfer
exchange/ transfer/ lease pricing study.
of business asset(s) and/ Further, all the
or equipment(s), purchase transactions are
and sale of export incentive at arm’s length.
licenses or any other
transaction(s) for transfer
of resources, services,
technology, or obligations
(‘Other RPTs’).

Tata Cummins 50-50% joint As part of regular business All contracts 1,391 Crores
Private Limited venture company operations: with related
(‘TCPL’) between party defined
Cummins Inc., as per Section
1. purchase of internal
USA and Tata 2(76) of the
combustion engines
Motors Limited, Companies
including but not limited to
India. Act, 2013,
B, C and L series engines,
are reviewed
their parts and accessories
for arm’s
Mr. Ashwath thereof by the Company;
length testing
Ram, Managing
internally basis
Director of
2. sale of internal combustion the international
the Company
engines, their parts and and domestic
(also, the ey
accessories thereof by the transfer
Managerial
Company: pricing study.
Personnel as per
Further, all the
Section 203 of
3. availing/rendering of transactions are
the Companies
any kind of service(s), at arm’s length.
Act, 2013)
is Managing reimbursements received/
Director of TCPL. paid, purchase/ sale/
exchange/ transfer/ lease
of business asset(s) and/
Mr. Ajay S.
or equipment(s), purchase
Patil, Chief
and sale of export incentive
Financial Officer
of the Company
(also, the ey
Managerial
Personnel as per
(‘Other RPTs’).
Section 203 of
the Companies
Act, 2013) is a
Director of TCPL.

Cummins CTIPL is a As part of regular business All contracts 1,6 1 Crores
Technologies India subsidiary of operations: with related
Private Limited Cummins Inc., party defined
(‘CTIPL’) USA which is 1. purchase of engines, as per Section
also the holding gensets, turbochargers, 2(76) of the
company of the their parts, components and Companies
Company spares by the Company; Act, 2013,
are reviewed
for arm’s
2. sale of engines/ gensets, length testing
their parts, accessories, and internally basis
spares by the Company; the international
and domestic
3. availing/rendering of transfer
any kind of service(s), pricing study.
reimbursements received/ Further, all the
paid, purchase/ sale/ transactions are
exchange/ transfer/ lease at arm’s length.
of business asset(s) and/
(‘Other RPTs’).
Cummins Inc., Holding company As part of regular business All contracts 509 Crores
USA (‘CMI’)* of the Company operations: with related
party defined
1. purchase of engines, as per Section
gensets, turbochargers, 2(76) of the
their parts, components and Companies
spares by the Company; Act, 2013,
are reviewed
2. sale of engines/gensets, for arm’s
their parts, accessories, and length testing
spares by the Company; internally basis
the international
3. availing/rendering of and domestic
any kind of service(s), transfer
reimbursements received/ pricing study.
paid, purchase/ sale/ Further, all the
exchange/ transfer/ lease transactions at
of business asset(s) and/ arm’s length.
(‘Other RPTs’).

* Prior-approval of the Shareholders was obtained at the AGM held on August 3, 2023 as the said transaction
was considered as Material RPT basis the estimated amount which exceeded the threshold.
Notes:
1. Material related party transactions (RPTs) i.e., transactions exceeding rupees one thousand crore or ten
percent of the annual consolidated turnover, whichever is lower, as per the last audited financial statements
are provided in the above table. As a part of its regular business, the Company transacts with various
companies owned or managed under Cummins Group. Out of such companies, the transactions with CL,
TCPL, CTIPL and CMI are Material RPTs. During the F 2022-23, the total annual consolidated turnover of
the Company was 7,641.40 Crores. Considering the same read with thresholds prescribed in Regulation
23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company had
material related party transactions with CL of 36 Crores, with TCPL of 1,391 Crores, with CTIPL
of 1,6 1 Crores and with CMI of 509 Crores. The said transactions were approved by the Audit and
Compliance Committee and Board of Directors on February , 2023, May 24, 2023, and August 3, 2023
and by shareholders at the Annual General Meeting held on August 3, 2023.
2. Similar transactions with related parties are expected in the current Financial ear. Therefore, in
compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audit
and Compliance Committee and the Board of Directors have approved these transactions on February 07,
2024 and May 29, 2024 and shall present the same for approval by the shareholders at the ensuing Annual
General Meeting.
ennifer Mary Bush Ashwath Ram

Place : Pune Chairperson Managing Director
Date : May 29, 2024 DIN: 09777114 DIN: 00149501
Place: Indiana, USA

Annexure 3 – MANAGEMENT DISCUSSION AND ANALYSIS REPORT
1. Industry Structure and Dev elopments
Economic Trends and Implications
Global economy turned out to be stronger than expected in Financial ear 2023-24. As central banks
across the globe continued to guide inflation towards pre-pandemic levels, economic activity grew
steadily, defying warnings of stagflation and global recession. Major economies were able to support
aggregate demand through expansionary budgetary spending and rising private consumption.
Moderation in energy and commodity prices were able to support the nascent recovery of private
capex.
The Indian economy has showed resilience and emerged as the fastest growing major economy,
with GDP growth rate of 7.6%1 for F 2023-24. Core industry output has reported a growth in F
2023-24 driven by higher output of coal, cement, steel, and power sectors. The ratio of real Gross
Fixed Capital Formation (GFCF) as percentage of GDP rose to 34.9% in F 2023-241, driving the
growth of the capital goods sector.
Infrastructure development continues to be a focus area for the government with multiple projects
being executed under the initiatives – PM Gati Shakti and the National Infrastructure Pipeline.
Development of access-controlled expressways, Dedicated Freight Corridor (DFC) and Multi-
modal Logistics Parks (MMLPs) will significantly reduce the cost of logistics and improve the
competitiveness of Indian products in global markets.
Manufacturing sector has emerged as one of the key drivers of economic growth in F 2023-24.
India is emerging as a preferred destination for organizations looking to diversify their supply chains
and align them with shifts in global trade and geopolitics. Efforts by government and industry partners
to develop domestic capabilities across the value chain in sunrise sectors like semiconductors,
defence, and electric vehicles will increase the share of manufacturing sector in the overall GDP.
Sustainability and decarbonization are emerging as strategic priorities across industries as

governments and organizations take necessary steps to combat the adverse effects of climate
change. India added 1 GW of renewable energy capacity in F 2023-24, taking the overall installed
capacity to 190GW. The uptick in capacity addition will continue as renewable energy systems
become more cost efficient driven by subsidies and mandates. Adoption of Energy Storage Systems
(ESS) will accelerate grid integration of large-scale renewable energy systems.
Hydrogen, as a fuel, offers immense potential to decarbonize sectors like steel, refining and
transportation. The Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, with
an outlay of 17,490 crore2, seeks to establish the hydrogen ecosystem in India by offering fiscal
incentives for production of Green Hydrogen and manufacturing of electrolyzers. With favourable
policies and improving investment climate India, will continue to attract investments in low carbon
technologies.
The growth prospects face headwinds from rising geopolitical conflicts and disruption to trade and
energy flows. While business sentiments have improved marginally in developed economies, inflation
continues to be stubborn delaying prospects of economic revival. Increasing trade protectionism is
altering flows of capital as countries look to pursue self-sufficiency and economic security.
Sources:
1. Ministry of Statistics and Programme Implementation (MOSPI), GoI
2. Ministry of New and Renewable Energy, GoI

2. Opportunities and Threats
K ey Opportunities
Power Generation
F 2023-24 witnessed a robust growth for Power Generation market driven by strong business
activity and economic growth across industries. ey segments driving the growth for the Power
Generation market included Datacentres, Real estate, Manufacturing, and Infrastructure.
Emission norms have become more stringent for the power back up industry, with the introduction
of CPCBIV+, on uly 01, 2023 for products up to 00kW. our Company has launched best-in class,
sophisticated and emission compliant products for the customers across the range.
Industrial
Railways: Indian Railways is set to achieve its ambitious target of 100% track electrification of
broad-gauge network by 2024 coupled with addition of new tracks. This is driving demand for
Diesel Electric Tower Cars (DETCs) that are used in the installation and maintenance of overhead
electric lines. With the expansion of the railway network and dedicated freight corridors becoming
operational, growth is expected in the track maintenance sector.
Indian Railways’ focus on reducing dependency on diesel in the auxiliary power sub-segment is
driving demand for hotel load converters. our Company has ventured into the supply of hotel load
converters which will help augment business in the auxiliary power sub-segment.
With the introduction of CPCBIV+ your Company is prepared to introduce compliant products for
Powercar application.
To move towards a green economy with net zero emissions, Indian Railway is also evaluating
hydrogen fuel cell solutions for the “Hydrogen for Heritage” initiative. our Company is actively
exploring ways to partner with Indian Railways on this initiative.
Mining: India achieved record coal production in F 2023-24 at 1 billion tonnes, registering an
annual growth of 12%. With increased power demand further intensifying the need to enhance
domestic coal production, new coal blocks are being developed, and mining operations are being
contracted to mine developers operators and private players to enhance productivity. Growth
in domestic coal production is expected to have a favourable impact on the Heavy Earth Moving
Machinery (HEMM) market especially high tonnage dump trucks for which your Company is a critical
technology supplier.
Marine: In line with the Indian Navy’s fleet expansion and fleet modernization plan backed by
the ‘Atmanirbhar Bharat’ initiative, there is a strong pipeline of opportunities from defence PSU
shipyards. Increased opportunities are expected in the commercial marine segment due to the
Government of India’s mandate to use indigenous vessels for inland water transport and vessels
operating in government owned ports.
Oil & Gas: Strong momentum in city gas distribution network expansion due to planned increase in
CNG stations from 6,000 now to 17,000 by 2030. In line with this, your Company continues to expect
strong demand for gas compression engines from the city gas distribution segment.
Defence: Reforms by Government of India to focus on indigenous design, development, and

manufacturing, along with intent to promote exports of defence equipment expected to boost domestic

production. our Company is expecting growth in engine requirement from OEMs participating in
this sector.
Pumps: our Company is looking to export of FM / UL certified pump packages to global OEMs.
Construction: The construction sector is poised for rapid growth over the next decade as the pace
of infrastructure creation gathers higher momentum with rising government capex. our Company
is a leading engine supplier in the Construction equipment segment and has established strong
partnerships with OEMs and hence is well placed take advantage of the strong industry tailwinds,
*Sources: Ministry of Railways, IROAF - Indian railways Organization for Alternate fuels, Ministry of Coal, Ministry of Petroleum and
Natural Gas, Ministry of Defence, Ministry of Road Transport and Highways and India Investment Grid – Government of India.
Distribution
Commission of Air uality Management (CA M) shared guideline for use of diesel-based power
backup gensets in Delhi-NCR, which mandates generator to be retrofitted with Emission Control
Devices (ECD). The emphasis on cleaner energy alternatives by the government will increase
demand for Dual Fuel its (DF kits) and Retrofitted Emission Control Devices (RECDs).
In addition to the broad range of CPCBIV+ complaint DG sets, your Company, also launched an
extended warranty service package, Ashwasan IV+, to facilitate smooth emission transition for its
customers. Growth outlook for the Powergen business is positive on the back of strong demand for
uninterrupted power supply from Datacentres, healthcare, and commercial realty segments.
Indian construction equipment sector is expected to record healthy double digit revenue growth
in F 24, driven by government’s focus on infrastructure development, rapid urbanization, and
increased construction activities. Investment in the infrastructure sector and the increasing pace
of project delivery will further boost the utilization of equipment leading to the requirement of
maintenance and better aftermarket revenue.
Prioritizing the safety of passenger trains, Indian Railway has increased allocation for improving the
safety and reliability of its rail network. This is expected to increase track maintenance activities,
subsequently driving up the usage of overhead cranes and track maintenance equipment, driving
demand for aftermarket services.
The ongoing expansion of coal production capacity, to meet higher energy demand, is poised
to fuel growth in the mining sector. This surge is anticipated to boost equipment utilization and
drive demand for HEMM (High Tonnage) vehicles equipped. Moreover, there will be a growing
emphasis on aftermarket services, spare parts supply, and training initiatives for both operators and
maintenance staff to ensure higher uptime and improve productivity of assets.
Rapidly developing domestic gas pipeline network under the City Gas Distribution (CGD) initiative
in various cities and will lead to higher demand and usage for gas compressor engines and parts.
Exports
our Company continues to pursue opportunities to grow the PowerGen exports market by focussing
on segments like telecom, rental, healthcare, manufacturing, and marine.
our Company is seeing moderation in demand from markets in Europe and Middle East due to
economic slowdown and heightened geo-political crisis.

K ey Threats
Power Generation
With the domestic players expanding their product ranges and international players gaining foothold
in the region, competition is intensifying in Powergen segment. As a result, pricing pressure is
intensifying across the industry.
Risk of cost escalation and supply constraints driven by supply chain disruption, raw material
shortages and tariff wars.
Industrial
Railways: With rail electrification work nearing the 100% target, demand for DETC is expected to
soften going ahead.
Mining: Timely allocation of coal blocks to private players and ramping up of coal production is
critical to boost demand for mining equipment.
Construction: Delay in notification of CEMM (Tracked/Excavator) Emission norms is delaying the

adoption of clean diesel technology in Excavator segment. our Company is ready and excited to
launch best in class products for expected Construction, Earthmoving, Material Handling and Mining
Equipment (CEMM) BS IV emission norms.
Distribution
Aggressive pricing in LHP and MHP segments is resulting in intense competition for new genset
sales to the banking, commercial, and residential segments.
Increasing Rail electrification will restrict usage of diesel engines to Diesel Electric Multiple Units
(DEMUs) and Power Car applications which will reduce maintenance requirements from customers.
The growing competition amongst Manning Contracts for railways is eroding margins for the industry
thereby limiting scope for participation.
Exports
our Company anticipates volatility in demand due to economic slowdown in key markets, ongoing
geopolitical conflict, and supply chain disruptions.
our Company is experiencing strong competitive activity in the Powergen segment. Global OEMs
as well as Genset assemblers are driving increased competition in the market.
3. Product-wise Performance
Power Generation
our Company launched CPCBIV+ compliant products across the range up to 00kW, with
sophisticated technology and indigenous components for the Power Generation market.
In F 2023-24, your Company has successfully installed and commissioned 2000+ units of CPCBIV+
gensets across India, with higher traction in Delhi NCR.

Industrial
Railways: our Company has strengthened its market presence and partnership with Indian
Railways through the supply of complete DETC propulsion packages, CPCB IV+ compliant diesel
alternator sets and Hotel Load Convertor (HLC).
Marine: our Company has successfully delivered the largest genset of 1.5 MW for INS
Vikramaditya of Indian Navy. DG sets 1 MW for Commercial marine applications have also been
supplied to reputed shipbuilders. 2.3 MW propulsion engines delivered to Larsen Toubro for use
in multipurpose vessels of Indian Navy.
Defence: Production ramp up of key applications such as Missile Carrier Vehicles, Armored
personnel carriers, Towed Artillery Guns is driving demand of engines 400HP. Successful proto
engine delivered for Light tank ‘ ORAWAR’ project of Indian Army.
Construction: our Company continues to be one of the market leaders in excavator segment and
has successfully completed certification of SB4.5 and SB6.7 to address CEV BS V much ahead
of the product launch.
Distribution
Robust sales of DF its and RECD in the year driven by regulatory push from CA M mandates to
use Emission Control Devices (ECDs) on operational DG sets. our Company has launched an in-
house developed RECD and undertaken pilot installations.
To cater to the high-growth On-highway segment, your Company launched a new range of brake
linings, clutches, Crankcase Ventilation Manager, and Fuel uality checking its.
Diesel Exhaust Fluid (DEF), Intermediate Bulk Container (IBC) launched last year gaining traction
amongst end-customers through direct fleet connect. Strong pull seen from the market for the
Company’s product.
Rolled out a new range of Service Products such as, Rust Guardian, Hand Clean , and Clean
Master in 2023.
Exports
Lower demand for PowerGen products from Europe, Middle East and Asia Pacific markets resulted
in the decline of Exports revenue of your Company during the year.
4. New Business initiatives for Financial ear 2023-24
Power Generation
Focusing on customer needs, significant steps were taken to improve the power density of products
to reduce the total cost of ownership, lower the maintenance cost and provide the benefit of a
smaller installation footprint.
CA M released a notification in October 2023, for improved emission norms for gensets 00kW,
expecting a reduction in PM, CO and NOx for existing and new gensets in the NCR region. our
Company with its well-established technology leadership, is meticulously developing technology for
the products in this range, that comply with the new emission standards.

Industrial
Railways: our Company has succeeded in testing and shipment of CPCBIV+ compliant diesel
alternator set for powercar, track recording car and a Hotel Load Convertor to meet the requirements
of the auxiliary power sub-segment of Indian Railways.
Marine: our Company has strong order board for commercial marine and has successfully
onboarded new customers.
Mining: our Company continues to innovate and develop fit-for-market products to expand its
presence in the HEMM segments.
Pumps: our Company has successfully expanded its product portfolio with high-speed ratings of
FM / UL certified engines for the global pumps segment.
Defence: our Company has secured new orders for the wheeled Troop carrier vehicles and Artillery
Guns from Defence OEMs.
Construction: our Company will continue to focus on expanding its product portfolio with
unregulated and electronic engines for higher tonnage excavators, which continues to offer excellent
value proposition to our partners.
our Company continues to develop advanced engines on fuel - agnostic platform with best in class
power density and efficiency for the compressor construction segment.
Distribution
our Company launched Ashwasan IV+, an extended warranty service package for new range
of CPCBIV+ compliant gensets. This extended warranty provides customers with hassle free
maintenance and further demonstrates our commitment to reliability and dependability.
our Company partnered with Repos Energy to launch DATUM range of products at Excon’23.
DATUM is an IoT enabled fuel storage device integrated to a doorstep delivery ecosystem. This
solution integrates the end-to-end requirement of fuel management for our customers.
our Company supplied two HHP marine engines for repowering of Diesel Alternator sets for a
strategic customer.
To improve customer support, your Company established a Command Centre for Telematics and
Rapid Response Team (RRT) Technical support at its India Office Campus. This team will support
real-time monitoring and quick issue resolution for new CPCB IV+ compliant Gensets installed with
Telematics devices.
our Company introduced OPTIMUS, a cutting-edge sales and service application for our
Distribution Network. OPTIMUS has replaced the existing Cummins Dealer Operating System
(CDOS) by implementing Salesforce CRM, with the goal of maximizing the potential of business for
the Company and its channel partners.
our Company has reinforced the ‘MITWA Mechanics Loyalty Program’ for Components, Engines,
Filters, and Allied parts, encompassing broad range of parts. The program aims to boost sales,
expand product range sales, raise awareness about Genuine parts, and enhance brand loyalty
among Mechanics.
our Company organized All India Aftermarket Conference (AIAC), bringing together Aftermarket
Leadership, Sales teams, and dealers under one roof for the first time. Cummins India Leadership

Team acknowledged the exceptional performance of the business in the previous year, and charted
a strategic roadmap with aspirational goals, for the upcoming year.
Exports
our Company introduced low kVA Gensets targeted towards unregulated markets, in line with
the Fit-for-market strategy. The Company has also invested in release of Low kVA emissionized
products for specific markets globally.
Along with the improvements in products and processes, your Company is leveraging channel
synergy to improve understanding of customer requirements and improve sales.
5. Achiev ements
Power Generation
our Company achieved volumes of nearly 26,000+ generator sets in F 2023-24, providing nearly
6,700 MW power to customers across India.
our Company’s efforts to improve their product accessibility for their customers in the Powergen
market continues with the expansion of the dealer channel with the GOEMs, from 6 dealers in
F 2022-23 to 113 dealers in F 2023-24.
In F 2023-24, your Company successfully sold 500+ units of high performance HHP products,
primarily catering to key segments such as Datacentre, Manufacturing Commercial Realty.
In the high horsepower segment, your Company successfully executed the orders for a large
hyperscale datacenter coming up in India. Hyperscale datacentres present a huge business potential
and with this prestigious win your Company is well positioned to expand its presence in this segment
and meet the stringent customer requirements.
Industrial
Railways: our Company maintains a strong partnership with Indian Railways and was able to
secure orders as approved source for Diesel Electric Tower Cars (DETCs).
Marine: our Company recorded the highest ever annual sales driven by robust execution of
government and commercial marine orders.
Mining: our Company has made further inroads in Heavy Earth Moving Machinery (HEMM) market
by securing orders from key OEMs.
Defence: Successful delivery of proto engine for Light tank ‘ ORAWAR’ project of Indian Army.
Construction: With strong customer focus, your Company has won businesses from new and
existing customers in both tracked wheeled equipment categories in unregulated electronic
engines which offers excellent value proposition.
Distribution
DBU achieved Net Promoter Score (NPS) of 90% which is the testimony of customer loyalty towards
the Company, and its service support.

Indian Space Research Organization (ISRO) recognized your Company as a valuable partner,
appreciating the dedicated power backup support for the successful launch of Chandrayaan-3 and
Aditya L1 space missions.
Integral Coach Factory (ICF) entered into a contract with your Company for maintenance and
servicing of DEMU engines.
In 2023, wheeled applications in the agriculture segment, moved from TREM III to TREM IV emission
norms. our Company assisted Agri DOEMs by conducting equipment trials and homologation
thereby reinforcing its brand promise of innovation and dependability.
our Company helped to power the world’s largest hockey stadium in Rourkela with two 750kVA and
two 600kVA Gensets.
Contract for part supplies to Coal India through Company depots was renewed and is expected to
drive sales growth in the coming year.
our Company’s service team was appreciated by many customers for promptly assisting them
amidst Cyclone Michaung in Chennai last year. Most of the DG sets were submerged due to heavy
flooding in and around Chennai. The service team promptly attended to customer complaints and
restored the DG sets for emergency stand-by power.
Exports
our Company introduced 3 L electronic engine to cater to North America and Central America
markets in the last financial year.
The Low kVA Fit-for-Market 2.0 products are gaining traction in the unregulated markets of Latin
America, Africa, Middle East, and Asia Pacific.
6. Outlook and Initiatives for the Current ear and Thereafter
Power Generation
our Company will focus on enhancing current products particularly in high horsepower range and
developing value added offerings for the customers.
With greater focus on more stringent environmental norms in the future, your Company is positioned
favourably as a pioneer in producing engines with cleaner technology.
Power back-up solutions operating on alternate energy sources are expected to enter the power
generation landscape in the coming years. our Company sees these technologies as opportunities
to serve customers since they become more viable.
Industrial
our Company is investing to offer locally built products to customers and support the Government
of India’s “Make in India” and “Atmanirbhar Bharat” initiative.
Railways: With continued efforts towards achieving 100% electrification of broad-gauge network,
your Company is looking to pursue growth opportunities in electrified propulsion system solutions.
Marine: our Company aims to maintain its relationship with the Indian Navy, Coast Guard as well
as major shipyards to offer integrated propulsion and genset packages for upcoming projects.

Mining: our Company continues to invest in new technologies in mining segment for higher
capacity equipment and future emission regulations (CEMM).
Defence: our Company is well placed to address emerging opportunities resulting from Govt. of
India’s focus on giving boost to domestic defense manufacturing industry and increasing share of
indigenous content in defence equipment.
Construction: construction segment in India is expected to witness healthy growth driven by

increased momentum in implementation of infrastructure projects.
Distribution
On-highway Aftermarket efforts have started creating pull in the market with various initiatives like
Loyalty programs and fleet engagement programs. The Company expects to strengthen its position
in the On-highway segment through fit-for-market product and service offerings, improved last mile
reach and enhanced brand recall.
In response to the growing focus on Environmental, Social, and Governance (ESG) priorities among
its customers, your Company plans to expand its emission-controlling product portfolio to new
business segments and applications. This strategic move is further amplified by the increased focus
on reconditioning engines, which promotes sustainability through product life extension.
The Company proactively establishing channels in key regions across the globe to leverage potential
synergies by aligning products with market demands for future growth.
Exports
our Company is focused on increasing the exports of its products and is positioned strongly in the
marketplace across key geographies.
Focusing on customer needs, your Company has taken significant steps to improve engagement
with customer and consultants from Latin America, Asia pacific, Africa and Middle East regions.
7. Risks and Concerns the Management Perceiv es
our Company’s export growth hinges on the increase in demand in key geographies across the
globe partner countries. The Company continues to be cautious about exports business performance
due to the ongoing economic uncertainty and aftereffects of the pandemic in partner countries.
Because of our international business presence, we are exposed to foreign currency exchange rate
risks.
Capital investment in the private sector has been lagging even though the country’s attractiveness
for investment has been well established. Coupled with inflation being on the higher side along
with high interest rates, delayed capital investment plans could have downside risk for domestic
demand.
As your Company readies for scaling up sales of CPCB-IV+ compliant products, there is expected
to be some downside risk to the demand of the products given pre-buy in the months leading to
the change. These shifts in demand have been considered in our plans and your Company will be
closely tracking the movement of the market and ensure necessary actions are taken to mitigate the
risks arising from the change.
Further, the Company has identified certain sustainability issues pertaining to environmental and
social matters that present a risk or an opportunity to the Company’s business which includes Climate

action, Cybersecurity, Product innovation and emission compliance, Human capital management,
Sustainable water supplies, etc. The detailed information is provided in the Business Responsibility
and Sustainability Report which is appended as Annexure 12 and forms part of this Report.
Measures to Mitigate Risks
To counter the slowdown in global economic growth and demand, it was imperative to maintain
focus in the domestic market. New product and market development, overall portfolio diversification
and better regional penetration for existing products was and will continue to be the focus areas for
your Company.
Various restructuring projects combined with cost reduction programs, which leverage Six Sigma
approach, such as ‘Accelerated Cost Efficiency’ (ACE) V, Accelerated Move towards ero Defects
(AMa E), Accelerated Supply Chain Excellence and Transformation (ASCENT) have had a
significant positive influence on your Company’s profitability. Continued focus on these efforts will
help your Company to maintain cost leadership in the domestic market and will remain the preferred
source for exports.
our Company is actively working on its Supply Chain for further improvements. Dual sourcing
adjusted payment terms with financially weaker suppliers, Price revisions, Supplier Agreements,
Inventory building (areas wherever necessary) are some of the measures that your Company is
taking to make the supply chain more agile and resilient against disruption.
8. Internal Control Systems and its Adequacy
our Company has established adequate internal control procedures, commensurate with the nature
of its business and size of its operations. These controls have been designed to provide a reasonable
assurance regarding maintenance of proper accounting controls for ensuring orderly and efficient conduct
of its business, monitoring of operations, reliability of financial reporting, accuracy and completeness
of the accounting records, the timely preparation of reliable financial information, protecting assets
from unauthorized use or losses, prevention and detection of frauds and errors, and compliances with
regulations. our Company has continued its efforts to align all its processes and controls with global best
practices.
To provide reasonable assurance that assets are safeguarded against loss or damage and that
accounting records are reliable for preparing financial statements, the Management maintains a system
of accounting and controls, including an internal audit process. Internal controls are evaluated by the
Internal Audit department and supported by the Management reviews. All audit observations and follow
up actions thereon are tracked for resolution by the Internal Control function and reported to the Audit and
Compliance Committee. As an ongoing program, for the reinforcement of the Cummins Code of Conduct
is prevalent across the organization. The Code covers transparency in financial reports, ethical conduct,
regulatory compliance, conflicts of interests review and reporting of concerns. Anti-fraud programs
including whistle blower mechanisms are operative across the Company.
The Board and the Risk Management Committee takes responsibility for the overall process of risk
management throughout the organization. Through an Enterprise Risk Management program, the
Company’s business units and corporate functions address opportunities and the attendant risks through
an institutionalized approach aligned to the Company’s objectives. The business risk is managed through
cross functional involvement and communication across businesses. The results of the risk assessment
and residual risks are presented to the Senior Management. The Risk Management Committee reviews
business risk areas and business continuity plans inter-alia covering leadership excellence, customer
centricity, technical capability and capacity, VPI execution, legal environmental compliances, data
security, product quality and product planning.

9. K ey Financial Ratios
i) Details of changes in key financial ratios including significant changes i.e. change of 25% or more
as compared to the immediately previous financial year along with detailed explanations:
Particulars FY 2023-24 FY 2022-23 Explanation for significant change

Debtor Turnover 4.88 5.45 Not Applicable
Inventory Turnover 6.33 6.4 Not Applicable
Interest Coverage Ratio 79.09 74.3 Not Applicable
(Debt Service Coverage
Ratio)
Current Ratio 2.90 2.70 Not Applicable
Debt Equity Ratio 0.02 0.07 During the year, shareholders’ funds
have increased on account of profits
during the year. Borrowings have
gone down on account of repayments.
Operating Profit Margin (%) 28.8% 22.2% During the year, the Company
could achieve higher revenue from
operations and higher profits resulting
in better Return on Equity Ratio.
Net profit Margin (%) 18.56% 14.77% During the year, the Company
could achieve higher revenue from
operations and higher profits resulting
in better Net Profit Ratio.
Note: The disclosed financial ratios are in alignment with Schedule III of Companies Act, 2013, as
amended and as per guidance note on ‘Division II - IND AS Schedule III to the Companies Act, 2013’
(Revised in anuary 2022) issued by Institute of Chartered Accountants of India. Please refer to
Note no. 45 of Standalone Financial Statements for additional disclosure.
ii) Details of any change in Return on Net Worth as compared to the immediately previous financial
year:
Particulars Standalone Consolidated

2023-24 2022-23 2023-24 2022-23
Return on Net Worth (%) 28.83% 22.39% 27.84% 22.79%
Return on net worth is computed as net profit by average net worth. The details for change in return
on net worth are explained in relevant sections above.
10. Human Resources Dev elopment and Industrial Relations
The total number of employees including the contractual employees stands at 3,930 as on
March 31, 2024.
Leadership Excellence
our Company focuses on investing and building capabilities in leaders at all levels through various
initiatives to develop ‘Future Ready’ Leaders and build leadership talent for future needs.
In line with our ‘Hire to Develop’ philosophy, we continue to invest in our Company sponsorship programs
and leadership development programs. Details are following:

6 employees applied for education assistance to pursue higher education programs using the
Global Education Assistance Policy (GEAP).
Employee External Development Policy (EEDP) was launched in uly 2023. 27 applications were
received.
Leadership Development Program - New cohort of before Building Success in ou (BS ) was
launched in uly 2023 and 504 leaders were nominated to complete the program.
Global Leadership Development Program (GLDP) sessions continued with 23 leaders as participants.
70 leaders were nominated to complete Building Success in Others (BSO) program.
93 employees continue pursuing the Company sponsored B.Tech and M.Tech Programs during
financial year 2023-24.
Hire-To-Dev elop and Seamless Talent Deployment
our Company is continuing with the important initiative of hire-to-develop that presents growth
opportunities to employees for self-development by taking up responsibilities across functions and
businesses. At least 1 3 professional employees have moved into different roles or functions within the
organization. There were 6% of professional employees who were promoted to the next salary grade due
to change in their job profiles and relative advancement in career growth.
As your Company continues to grow and expand, getting visibility to talent insights becomes increasingly
important. By standardizing, integrating, and automating talent management processes. our Company
has provided Leaders with an efficient technology-based process called Integrated Talent Management
(ITM). ITM touches the key stakeholders - employees, managers, and businesses and enables all to work
together to achieve their goals and helps employees reach their full potential with two-way communication
and feedback.
our Company is working on the following strategic initiatives - Reimagine the HR function to meet
evolving needs, deliver predictive and prescriptive talent analytics, and empower the workforce through
technologies. Under these initiatives, leaders will have more autonomy and accountability to deliver
talent management strategies. They will have greater real-time access to talent intelligence by which
they can make more informed and proactive decisions. At every level, leaders will have the capability and
capacity to deliver on their leadership responsibilities. our Company is working towards making talent
processes, tools, and approaches to be largely harmonized, allowing HR employees to consult more
seamlessly across the organization.
Recruitment
Continuing the focus around employing the right and diverse talent at both entry and experienced level
and developing them for future roles within the organization, this year, your Company hired a total of 63
professionals with 11 entry-level exempt professionals supplemented with 333 experienced exempt
professionals and 412 non-exempt professionals.
The Company hired (75%) female candidates at exempt entry-level in addition to 151 (45%) female
candidates at exempt experienced level. This elevated our overall female representation in external
hiring to 53%, thus showcasing our commitment towards improving gender equality. our Company has
increased its focus on diversity beyond gender by hiring a workforce from diverse backgrounds like
People with Disabilities, LGBT North-East region of India.

In partnership with the Business Function Leaders, the Company is now successfully running the
‘Partnership and Engagement’ programs with premier B-Schools Engineering Institutes to hire top
Managerial Engineering talent thereby continuing our focus on ‘Hire to Develop’ philosophy at an early
career.
This year again your Company continued its focus on increasing brand presence on social media platforms
viz. LinkedIn, Facebook, and Instagram and will continue to focus on improving this engagement with the
digital media.
Diversity, Equity, and Inclusion (DE&I)
Diversity, Equity, and Inclusion is in the DNA of your Company. Reiterating Mr. Irwin Miller’s (Cummins
Inc. Chairman, 1951-1977) famous quote “Character, ability and intelligence are not concentrated in
one sex over the other, nor in persons with certain accents or in certain races or in persons holding
degrees from universities”, your Company has five Employee Resource Groups (ERGs) focusing on the
primary dimensions of diversity namely: Gender, Generation, Culture, Person with Disability ( PwD) ,
and LGBTQ+ . Promoting the organisation’s Diversity, Equity and Inclusion agenda, these ERGs work on
initiatives that contribute to making organisation’s environment ‘Inclusive’ enabling employees to bring in
their full potential at workplace. Initiatives undertaken by these ERGs include revisiting internal policies
and processes, introducing new policy or guidelines to support a diverse dimension, rolling out effective
workshops and awareness events, conducting audits and recommending workplace adjustments
amongst others.
The Company continue to focus on increasing our gender (female) diversified talent, which is today at
31%. As the next step, your Company is working to achieve gender parity in our workforce, by moving
the needle to 40% representation of female talent in next few years. In this journey, the WE Network
(Women Empowerment Network) ERG will continue to be a strong partner with the business. As the
Company continue to hire primarily through our campus and lateral hiring, it is also focusing on the pool
of talent who have taken a career break but are now all geared up to restart their career.
‘ Wings’ , Employee Resource Group, focused on hiring and providing a conducive environment to Persons
with Disability, celebrated International Day of Persons with Disabilities (IDPWD) inviting senior India and
global leaders to address the audience and had persons with disabilities share their success stories
which inspired many. The Company also prioritising how it can create a safe and inclusive environment
in the Company to also attract the LGBT + talent. ‘ India Pride’ , ERG for LGBT + community worked
on creating more awareness, promoting Pride Ally program, and holding training sessions on bursting
myths and sensitizing employees. The gender reassignment policy launched this year is also one step
in making our Company a safe and inclusive place to work for diverse employees. Another key area of
focus is under-represented regions of our country in the workforce i.e., talent from Northeast India. Our
ERG, ‘ Ekam’ , is concentrating on spreading more awareness about different regions, cuisines, cultures
etc through events, webinars, and competitions. In addition, your Company has an ERG, ‘ NeX us’ ,
focused on generation awareness and is also aspiring to improve the representation of “veterans” in our
workforce.
our Company is being successful in consistently delivering on its commitment to provide an inclusive
environment to a diverse workforce, senior leader’s commitment to lead, to advocate and to advise on
issues related to diversity and inclusion are critical.
Megasite Update
At Cummins Megasite, Phaltan, living up to the spirit of ‘One Cummins’, your Company continues to
move talent seamlessly within all the plants based on employee and business needs. our Company
believes in “Hire to Develop” and acts by providing internal opportunities as well as recruitment of fresh

talent through campus recruitment. Right talent balance is achieved through hiring special skills from
outside to meet business talent needs.
At Cummins Megasite, your Company has achieved 19.1% female representation amongst the shop-
floor employees and 15.7% female representation amongst the professional employees. The Company
is actively working on implementing a broad plan to ensure retention engagement of employees at
Megasite, part of which has already been implemented.
Right Env ironment
our Company is committed to fostering a physically and psychologically safe, integrity based, respectful,
inclusive, high-performance culture that breaks down hierarchies and organizational boundaries while
engaging the full talent of our diverse employees to delight all our stakeholders consistently. our
Company’s efforts to drive awareness and commitment amongst employees towards ‘Cummins Code of
Business Conduct’, ‘Treatment of Each Other at Work’ Policy and other Ethics and Compliance policies
continue year on year through various communication platforms, trainings, emailers, portals, posters etc.
which helps in creating and sustaining the right environment for all the stakeholders, both internal and
external to the organization. Every year, your Company utilizes its learnings via various speak up channels
and ensures to upgrade all relevant policies to help its employees unleash their full potential. In addition
to the other policy awareness and trainings, the Company also focuses its efforts on creating awareness,
through training, posters, email communications etc. on “Prevention of Sexual Harassment” under the
Prevention of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013 (“POSH Act”).
11. Cautionary Statement
Statements in the Management Discussion and Analysis describing the Company’s objective, projections,
estimates and expectations may be ‘forward-looking statements’ within the meaning of applicable
securities laws and regulations. Actual results could differ materially from those expressed or implied.
Important factors that could make a difference to the Company operations include, among others,
economic conditions affecting demand/supply and price conditions in the domestic and overseas markets
in which the Company operates, changes in government regulations, tax laws and other statutes and
incidental factors.

Annexure 4 – CORPORATE GOVERNANCE REPORT
1. COMPANY’ S PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE:
Corporate Governance is a set of principles, processes and systems to be followed by the Directors,
Management and all employees of the Company for enhancement of shareholder value, keeping in
view interests of all stakeholders. Integrity, transparency, and compliance with applicable laws in all
dealings with government, customers, suppliers, employees and other stakeholders are the objectives of
good corporate governance. These principles and objects are embodied in your Company’s philosophy
on the Corporate Governance. our Company continues to adopt and practice these principles of good
Corporate Governance while ensuring integrity, transparency, and accountability at all levels in the
organization. our Company believes that corporate governance is instilled in our values and principles.
our Company’s continued commitment to ethical business practices is reflected across all our operations.
It inspires the Company to set standards which not only meet applicable statutory obligations but goes
even further.
our Company believes that good governance is the foundation for a truly sustainable company. Our
commitment is to do what is right and to do what we say we will do. This long-standing commitment
to integrity provides the framework for all our business activities and serves as the foundation for the
Company’s governance policies and procedures. our Company’s Board of Directors represents and
protects the interests of the Company’s stakeholders, with the legal responsibility for overseeing the
affairs of the Company.
2. BOARD OF DIRECTORS:
a) Composition of the Board of Directors, attendance at Meetings and other details as on March
31, 2024 and as on date of this Report:
Composition:
During the year under review, the composition of the Board was in conformity with Regulation 17 of
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred
as ‘SEBI Listing Regulations’) read together with Section 149 and 152 of the Companies Act, 2013
and rules framed thereunder. As on March 31, 2024, the Board comprises of 9 Directors, with 1
Promoter (Executive) Director, 3 Promoter (Non-Executive and Non-Independent) Directors that
includes 2 women (Non-Executive and Non-Independent) Directors, 5 Independent (Non-executive)
Directors that includes 3 Women Independent (Non-Executive) Directors. The name and brief
profile of Board of Directors of the Company can be accessible on the website of the Company at
https://www.cummins.com/en/in/investors/cummins-india-limited-board-of-directors
Ms. ennifer Mary Bush (DIN: 09777114), Non-Executive Director is the Chairperson of Board of
Directors of the Company effective November 07, 2023.
During the Financial ear under review, five Board Meetings were held and the gap between two
meetings did not exceed one hundred and twenty days. The said meetings were held on May 24,
2023, August 03, 2023, November 07, 2023, anuary 16, 2024 and February 07, 2024 for which the
requisite quorum was present.
All Independent Directors attended the separate meeting of Independent Directors held on February
07, 2024 in compliance with Regulation 25 of the SEBI Listing Regulations. The Independent
Directors, after considering the views of Executive Directors and Non-Executive Directors, reviewed

the performance of Non-Independent Directors, the Board as a whole and the Chairperson of the
Company.
The names and categories of the Directors on the Board, DIN and their attendance at Board Meetings
held during the year under review including attendance at the last Annual General Meeting (“AGM”)
along with other details as on date of this Report are hereunder. Additionally, the table also contains
information about the directors appointed in the Board Meeting held on May 29, 2024.
Date of the
Details of the Board Meeting(s)
AGM
% of
Name of the Director 24. 05.2023 03.08.2023 07.11.2023 16.01.2024 07.02.2024 attendance of 03.08.2023
a Director
Chairperson ( Non- Executiv e Director)
Mr. Steven Chapman2
  NA NA NA 100 
(DIN: 00496000)
Ms. ennifer Mary Bush3
     0 
(DIN: 09777114)
Managing Director ( Executiv e Director)
Mr. Ashwath Ram
     0 
(DIN: 00149501)
Non-Executiv e Directors
Mr. Donald ackson
     100 
(DIN: 0 261104)
Ms. Bonnie ean Fetch
     100 
(DIN:09791477)
Independent ( Non-Executiv e) Directors
Mr. Nasser Munjee
     0 
(DIN: 000101 0)
Mr. P.S. Dasgupta4
 NA NA NA NA 0 NA
(DIN: 00012552)
Mr. Rajeev Bakshi
     100 
(DIN:00044621)
Ms. Rama Bijapurkar
     100 
(DIN: 00001 35)
Ms. Rekha
     0 
(DIN: 0 501990)
Ms. Lira Goswami5
NA     100 
(DIN: 00114636)
Mr. Sekhar Natarajan 6
NA NA NA NA NA NA NA
(DIN: 01031445)
Mr. Farokh N. Subedar7
NA NA NA NA NA NA NA
(DIN: 0002 42 )
Notes: -
1. Mr. Nasser Munjee, Director (Non-Executive and Independent) attended the AGM as the
Chairperson of Audit and Compliance Committee (erstwhile known as Audit Committee)
of the Board of Directors of the Company. Ms. Rama Bijapurkar, Director (Non-Executive
and Independent) attended the AGM as the Chairperson of Nomination and Remuneration
Committee, and the Corporate Social Responsibility Committee of the Board of Directors of the
Company. Ms. Lira Goswami, Director (Non-Executive and Independent) attended the AGM
as the Chairperson of Stakeholders Relationship Committee of the Board of Directors of the
Company. Mr. Rajeev Bakshi, Director (Non-Executive and Independent) attended the AGM as
the Chairperson of Risk Management Committee of the Board of Directors of the Company.
2. Mr. Steven Chapman resigned as a Chairman, Non- Executive and Non-Independent Director
of the Company effective from close of business hours of September 30, 2023, on account of

pre-occupation and other personal reasons. Consequently, he also ceased to be a Member
of Nomination and Remuneration Committee with effect from close of business hours of
September 30, 2023. Further, vide resignation letter, he had confirmed that there were no
other material reasons for his resignation.
3. Ms. ennifer Mary Bush, Non-Executive and Non-Independent Director of the Company has
been appointed as the Chairperson of Board of the Company effective from November 07,
2023.
4. Mr. P.S. Dasgupta resigned as Director (Non-Executive and Independent) of the Company
effective from close of business hours of May 24, 2023 on account of professional exigencies.
Consequently, he also ceased to be a Chairman of Stakeholders Relationship Committee and
Corporate Social Responsibility Committee Member of Audit and Compliance Committee,
Risk Management Committee and Nomination and Remuneration Committee with effect from
close of business hours of May 24, 2023. Further, vide resignation letter, he had confirmed that
there were no other material reasons for his resignation.
5. Ms. Lira Goswami was appointed by the Board as an Additional Director (Non-Executive and
Independent) of the Company effective May 24, 2023 and regularized as a Director (Non-
Executive and Independent) of the Company in 62nd Annual General Meeting of the Company
held on August 03, 2023, for her first term of five (5) consecutive years effective from May 24,
2023 to May 23, 202 .
6. Mr. Sekhar Natarajan has been appointed as an Additional Director (Non-Executive and
Independent) of the Company with effect from May 29, 2024 for a period of 5 years up to May
2 , 2029.
7. Mr. Farokh Nariman Subedar has been appointed as an Additional Director (Non-Executive
and Independent) of the Company with effect from May 29, 2024 for a period of 5 years up to
May 2 , 2029.
. Pursuant to circulars/notifications issued by Ministry of Corporate Affairs (‘MCA’) and SEBI,

certain Board and/or its committees’ meetings during the Financial ear were held through
Video Conferencing.
The composition of the Board is in conformity with Regulation 17, 17A and 26 of the SEBI
Listing Regulations read with Section 149 of the Companies Act, 2013.
Pursuant to the provisions of Section 149 of the Companies Act, 2013 and Regulation 16(1)
(b) of the SEBI Listing Regulations, as amended from time to time, the Independent Directors
have submitted inter-alia declarations that each of them meets the criteria of independence as
provided in Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) and Regulation
25 of the SEBI Listing Regulations. Further, the Independent Directors have also confirmed
that they are independent of Management. The Independent Directors have further stated
that they are unaware of any circumstance or situation, which exists or may be reasonably
anticipated, that could impair or impact their ability to discharge their duties with an objective
independent judgement and without any external influence. The Company has received
confirmation from all the existing Independent Directors of their registration on the Independent
Directors Database maintained by the Institute of Corporate Affairs pursuant to Rule 6 of the
Companies (Appointment and ualification of Directors) Rules, 2014.
The details of the familiarization programmes imparted to the Independent Directors can be
viewed at https://www.cummins.com/en/in/investors/india-corporate-governance.
Based on the disclosures received from all the Independent Directors and as noted in the

Board Meeting held on May 29, 2024, the Board is of the opinion that, all the Independent
Directors possess requisite qualifications, experience, expertise and hold high standards of
integrity for the purpose of Rule (5)(iiia) of the Companies (Accounts) Rules, 2014.
The required information, including information as enumerated in Regulation 17(7) read

with Part A of Schedule II of the SEBI Listing Regulations, is made available to the Board of
Directors, for discussion and consideration at Board Meetings.
None of the Directors of the Company are related to each other inter-se.
b) Details of Directorship and Committee Memberships:
The name of other listed entities in which the Director is a director and the number of
Directorships and Committee Chairmanships / Memberships held by them in other public
limited companies as on date of this Report are stated in the below table:
Name of Category No. of Director- No. of Commit- Directorship in other

Directors ships in other tee positions listed Companies
public limited in other public (Category of Direc-
Companies limited Compa- torship - Independent
nies*** and Non-Executiv e
Chair- *Mem- Chair- **Mem- Director)
man ber man ber
Ms. ennifer Promoter, - - - - -
Mary Bush1 Non- Exec-
(DIN: utive and
09777114) Non- Inde-
pendent
Mr. Ashwath Promoter, - - - - -
Ram Executive
(DIN:
00149501)
Ms. Rama Non-Execu- - 6 2 4 1. Sun Pharmaceu-
Bijapurkar tive and ticals Industries
(DIN: Independent Limited
00001 35) 2. Apollo Hospitals
Enterprise Limited
3. VST Industries
Limited
4. Mahindra
Mahindra Financial
Services Limited
5. Gokaldas Exports
Limited
Mr. Nasser Non-Execu- 3 4 3 3 1. The Indian Hotels
Munjee tive and Company Limited
(DIN: Independent
000101 0)
Mr. Rajeev Non-Execu- - 2 - 1 1. Dalmia Bharat
Bakshi tive and Sugar and
(DIN: Independent Industries Limited
00044621) 2. Macrotech
Developers Ltd

Name of Category No. of Director- No. of Commit- Directorship in other
Directors ships in other tee positions listed Companies
public limited in other public (Category of Direc-
Companies limited Compa- torship - Independent
nies*** and Non-Executiv e
Chair- *Mem- Chair- **Mem- Director)
man ber man ber
Ms. Rekha Non-Execu- - - - - -
(DIN: tive and
0 501990) Independent
Ms. Lira Non-Execu- - 1 - 1 1. Maruti Suzuki India
Goswami2 tive and Limited
(DIN: Independent
00114636)
Mr. Donald Promoter, - - - - -
ackson Non-Exec-
(DIN: utive and
0 261104) Non-Inde-
pendent
Ms. Bonnie Promoter, - - - - -
ean Fetch Non-Exec-
(DIN: utive and
09791477) Non-Inde-
pendent
Mr. Sekhar Non-Execu- 1 2 2 4 1. Ingersoll-Rand
Natarajan3 tive and (India) Limited
(DIN: Independent 2. Bayer CropScience
01031445) Limited
3. Colgate-Palmolive
(India) Limited
Mr. Farokh Non-Execu- 1 3 2 4 1. DCB Bank Limited
N. Subedar4 tive and 2. Tata Investment
(DIN: Independent Corporation Limited
0002 42 )
* Number of Membership of Board includes Chairmanship of Board.

** Number of Membership of Committees include Chairmanship of Committees.
*** Pertains to memberships/chairpersonships of the Audit Committee and Stakeholders’
Relationship Committee of other Indian public companies as per Regulation 26(1)(b) of the
SEBI Listing Regulations.
1
Ms. ennifer Mary Bush, Non-Executive and Non-Independent Director of the Company has
2023.
2
Ms. Lira Goswami was appointed by the Board as an Additional Director (Non-Executive
and Independent) of the Company effective May 24, 2023 and regularized as a Director
(Non-Executive and Independent) of the Company in 62nd Annual General Meeting of the
Company held on August 03, 2023, for her first term of five (5) consecutive years effective from
May 24, 2023 to May 23, 202 .

3
Mr. Sekhar Natarajan has been appointed as an Additional Director (Non-Executive and
2 , 2029.
4
Mr. Farokh Nariman Subedar has been appointed as an Additional Director (Non-Executive
May 2 , 2029.
As per the records available with the Company, none of the Directors hold the office of
Independent Director in more than seven listed companies and ten public companies.
The details given in the table are as per Regulation 26 and Schedule V of SEBI Listing
Regulations.
c) Disclosure of Expertise or Skills of Directors:
The Directors so appointed on the Board are from diverse backgrounds and possess expertise
in the fields that they represent which enables them to effectively contribute in deliberations
at Board and Committee meetings. In terms of Listing Regulations, the Board has identified
following core skills/ areas of expertise of the Directors as given below:
Sr. Core Skills/ Expertise Description of the Skill/ Expertise

No.
1. General Management and Extended leadership experience resulting in a practical
Leadership understanding of organizational systems and processes,
complex business and regulatory environment, strategic
planning, risk management, understanding of emerging
local and global trends and management of accountability
and performance. Demonstrated strengths in developing
talent, planning succession, driving change and long-
term growth guiding the Company towards its vision,
missions, and values.
2. Financial and Accounting In depth understanding of finance and financial reporting
Expertise/ Experience processes, taxation, proficiency in complex financial
management, capital allocation and resource utilization
across business lines and geography of operations.
Understanding of financial policies and accounting
statements.
3. Global business/ emerging Experience in driving business success in markets
Market Experience around the world with an understanding of diverse
business environments, economic conditions, regulatory
frameworks, sensitivity to cultural diversity and adaptability.
Appreciation of long-term trends, strategic choices and
experience in guiding and leading management teams to
make decisions in uncertain environments.
4. Industry nowledge and Domain knowledge in businesses in which the Company
Experience participates i.e., automotive industry, manufacturing,
engineering along with key operational areas such as
distribution and supply chain management. Guidance
and contribution to growth of Company along with
Board oversight in all dimensions of business and Board
accountability.

Sr. Core Skills/ Expertise Description of the Skill/ Expertise
No.
5. Governance and Experience in developing insights about maintaining board
Regulatory oversight and management accountability, protecting shareholder
interests and observing appropriate governance practices
while driving corporate ethics and values.
6. Mergers Acquisitions Experience of leading growth through acquisitions and
other business combinations with ability to access ‘build’
or ‘buy’ options and developing the company through
inorganic growth options. Evaluate financial, operational
and cultural integration with acquired company or other
business combinations.
7. Sales Marketing Ability in developing strategies to increase sales and
market share through innovation, build better experience
for customers, enhance company’s reputation along with
creating brand awareness and leveraging consumer
insights for business benefits.
8. Human Resource Representation of gender, ethnic, geographic, cultural, or
Management other perspectives that expand the Board’s understanding
of the needs and viewpoints of various stakeholders like
customers, partners, employees, and other stakeholders.
Recognition and retention of talent in the organization.
9. Sustainability, Building company’s strategy around sustainability and
Environment and Social right environment and achieving success with sense of
Responsibility social responsibility
10. Information Technology Significant background in technology, resulting in
and Innovation knowledge of how to anticipate technological trends,
generate disruptive innovation, and extend or create
new business models leveraging digital / Information
Technology across the value chain, ability to anticipate
technological driven changes and appreciation of the
need of cybersecurity and controls across organization.
The following table states the identified core skills / expertise / competencies mapped for each
of the Director:
Sr. Name of Director Expertise/Skills in specific functional area

No.
1. Ms. ennifer Mary Bush1 General Management and Leadership, Global business/
emerging Market Experience, Industry nowledge
and Experience, Sales Marketing and Sustainability,
Environment and Social Responsibility
2. Mr. Ashwath Ram General Management and Leadership, Global business/
emerging Market Experience, Industry nowledge and
Experience, Governance and Regulatory oversight and
Sustainability, Environment and Social Responsibility
3. Mr. Nasser Munjee General Management and Leadership, Financial and
Accounting Experience, Industry nowledge and Experience
Sustainability, Environment and Social Responsibility

Sr. Name of Director Expertise/Skills in specific functional area
No.
4. Mr. Rajeev Bakshi General Management and Leadership, Global business/
Experience, Sales Marketing Sustainability, Environment
and Social Responsibility
5. Ms. Rama Bijapurkar General Management and Leadership, Global business/
Experience, Governance and Regulatory oversight, Sales
Marketing and Human Resource Management
6. Ms. Rekha General Management and Leadership, Global business/
Experience, Sales Marketing Information Technology
and Innovation
7. Ms. Lira Goswami2 General Management and Leadership, Industry nowledge
and Experience, Governance and Regulatory oversight,
Mergers Acquisitions and Sustainability, Environment and
Social Responsibility
8. Mr. Donald ackson General Management and Leadership, Financial and
Accounting Expertise/ Experience (including Treasury
Experience) Global business/ emerging Market Experience
9. Ms. Bonnie ean Fetch General Management and Leadership, Global business/
Experience Human Resource Management
10. Mr. Sekhar Natarajan3 General Management and Leadership, Business Strategy,
Sales Marketing, Financial Control, Risk Management,
Industry nowledge
11. Mr. Farokh N. Subedar4 General Management and Leadership, Financial and
Accounting Expertise, Risk Management, Investment
Management.
1
2023.
2
and Independent) of the Company effective May 24, 2023 and regularized as a Director
(Non-Executive and Independent) of the Company in 62nd Annual General Meeting of the
Company held on August 03, 2023, for her first term of five (5) consecutive years effective
from May 24, 2023 to May 23, 202 .
3
Mr. Sekhar Natarajan has been appointed as an Additional Director (Non-Executive and
2 , 2029.
4
Mr. Farokh Nariman Subedar has been appointed as an Additional Director (Non-Executive
May 2 , 2029.

d) Details of equity shares of the Company held by the Directors as on March 31, 2024 are
giv en below:
Name of Director Category of Director Number of Equity Shares

Mr. Ashwath Ram Promoter, Executive Director 13,757 fully paid shares of 2/- each
Other than the above mentioned Director, none of the other Directors hold any shares in the
Company.
2. COMMITTEES OF THE BOARD:
The Composition of the Committees of the Board of Directors as on March 31, 2024 is as stated in the
below table:
Sr. No. Name of Committees Composition

1. Audit and Compliance Committee Mr. Nasser Munjee, Chairperson
Mr. Rajeev Bakshi, Member
Ms. Rama Bijapurkar, Member1
Ms. Lira Goswami, Member2
Mr. Donald ackson, Member
Ms. ennifer Mary Bush, Member3
2. Nomination and Remuneration Committee Ms. Rama Bijapurkar, Chairperson
Mr. Nasser Munjee, Member
Ms. Bonnie ean Fetch, Member4
3. Stakeholders Relationship Committee Ms. Lira Goswami, Chairperson2
Ms. Rama Bijapurkar, Member
Mr. Ashwath Ram, Member
4. Corporate Social Responsibility Ms. Rama Bijapurkar, Chairperson1
Committee Mr. Nasser Munjee, Member
Ms. Bonnie ean Fetch, Member4
5. Risk Management Committee Mr. Rajeev Bakshi, Chairperson
Mr. Nasser Munjee, Member
Ms. Rama Bijapurkar, Member
Ms. ennifer Mary Bush, Member3
1
Ms. Rama Bijapurkar was designated as Chairperson of Corporate Social Responsibility Committee
and appointed as Member of Audit and Compliance Committee effective from May 25, 2023.
2
Ms. Lira Goswami was appointed as Chairperson of Stakeholders Relationship Committee, Member
of Nomination and Remuneration Committee, Member of Risk Management Committee and Member of
Audit and Compliance Committee effective from May 25, 2023.
3
Ms. ennifer Mary Bush was appointed as Member of Risk Management Committee and Member of
Audit and Compliance Committee effective from May 25, 2023.

4
Ms. Bonnie ean Fetch was appointed as Member of Nomination and Remuneration Committee and
Member of Corporate Social Responsibility Committee effective from May 25, 2023.
a) AUDIT AND COMPLIANCE COMMITTEE:
As on March 31, 2024, the Audit and Compliance Committee comprised of 6 Directors including
2 Promoter (Non-Executive) Director – Mr. Donald ackson and Ms. ennifer Mary Bush and 4
Independent Directors – Mr. Nasser Munjee (Chairperson), Mr. Rajeev Bakshi, Ms. Rama Bijapurkar
and Ms. Lira Goswami.
Meetings at a glance:
6 5 86 %
Directors Meetings Attendance
Meetings and Attendance at the Audit and Compliance Committee Meetings for F. . 2023-24
Name of Directors Dates of Audit and Compliance Committee Meetings

May 24, August 03, September 18, Nov ember 07, February 07,
2023 2023 2023 2023 2024
Mr. Nasser Munjee     
( Chairperson) **
Mr. P. S. Dasgupta*  NA NA NA NA
Mr. Rajeev Bakshi***     
Mr. Donald Jackson     
Ms. Jennifer Mary* NA    
Bush
Ms. Rama NA    
Bijapurkar*
Ms. Lira Goswami* NA    
* Mr. P.S. Dasgupta pursuant to his resignation ceased to be a Member of Audit and Compliance
Committee effect from close of business hours of May 24, 2023 and Ms. Lira Goswami, Ms. Rama
Bijapurkar and Ms. ennifer Mary Bush were appointed as Members of the Audit and Compliance
Committee effective from May 25, 2023.
** Mr. Nasser Munjee ceased to be a Chairperson and Member of the Audit and Compliance
Committee effective May 30, 2024. Further, he will cease to be Non-Executive Independent Director
of the Company due to retirement effective uly 31, 2024. Mr. Farokh N. Subedar was appointed as
Chairperson and Member of the said Committee effective from May 30, 2024.
*** Mr. Rajeev Bakshi ceased to be a Member of the Audit and Compliance Committee effective May
30, 2024. Further, he will cease to be Non-Executive Independent Director of the Company due to
retirement effective uly 31, 2024. Mr. Sekhar Natarajan was appointed as a Member of the said
Minimum number of meetings of the Audit and Compliance Committee during the year under review,
were complied with.
The Committee reviewed the audited financial statements for the year ended March 31, 2024
and unaudited financial results for the quarters ended une 30, 2023, September 30, 2023 and

December 31, 2023. The Committee also reviewed (i) Appointment and remuneration of Statutory,
Secretarial and Cost Auditors of the Company; (ii) Performance of Subsidiary, oint Ventures
Associates; (iii) Appointment and reports of the Internal Auditor; (iv) Cost Audit Report for the
financial year 2022-23; (v) Acquisition/ sale of assets; (vi) Directors’ Responsibility Statement;
(vii) Related Party Transactions; (viii) Performance of Statutory and Internal Auditors; (ix) Legal
Compliance Reports; (x) Major litigations; (xi) Forex Management Policy; (xii) Prohibition of Insider
Trading Policies and (xiii) Ethics, Cummins Code of Conduct and related matters.
The Committee had periodic interactions with the Internal, Statutory and Cost Auditors of the
Company.
All recommendations of the Committee made during the year were accepted by the Board of
Directors from time to time.
Broad Terms of Reference of the Audit and Compliance Committee:
The Committee primarily acts in line with the Section 177 of the Companies Act, 2013 and Regulation
1 of the SEBI Listing Regulations.
The Committee oversees the Company’s financial reporting process, the system of internal financial
controls, the audit process, the Company’s system/ process/ mechanism for monitoring legal and
regulatory compliances and ensures that the financial statements are correct, sufficient and credible.
The Committee reviews the annual and quarterly financial statements before submission to the
Board for approval. The Committee is guided by the Charter adopted by the Board, accessible on the
website of the Company at https://www.cummins.com/en/in/investors/india-corporate-governance.
The Charter is reviewed and re-assessed when deemed fit by the Committee and was last amended
on November 04, 2022.
The Committee also reviews Related Party Transactions of the Company and approves
the transactions which are in line with the Related Party Transactions Policy of the Company.
The Related Party Transactions Policy of the Company is on the website at
*Related Party Transactions Policy: The Policy regulates all transactions between the Company
and its related parties. Pursuant to the relevant provisions of Section 1 and any other applicable
provisions of the Companies Act, 2013 and Rules framed thereunder, Regulation 23 of the SEBI
Listing Regulations and various circulars issued by SEBI, the Policy was revised and adopted in the
Board Meeting held on February 10, 2022, effective from April 01, 2022.
The Committee has been entrusted with the following responsibilities/Terms of Reference for review
of financial reporting process and system of internal financial controls:
To oversee the Company’s financial reporting process and the disclosure of its financial
information to ensure that the financial statement is correct, sufficient and credible;
To recommend appointment, remuneration and terms of appointment of Auditors (Statutory

Auditors, Secretarial Auditor, Cost Auditor and Internal Auditor) of the Company and to approve
payment to Statutory Auditors for any other services rendered by the Statutory Auditors;
To review with the Management, the annual and quarterly financial statements and Auditor’s
Report thereon before submission to the Board for approval;
To review, with the Management, the statement of uses/ application of funds raised through
an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilized for
purposes other than those stated in the offer document / prospectus / notice and the report

submitted by the monitoring agency monitoring the end utilization of proceeds of a public or
rights issue, and making appropriate recommendations to the Board to take up steps in this
matter;
To review and monitor the auditor’s independence, performance, experience, qualification,

and effectiveness of audit process along with performance of statutory and internal auditors,
adequacy of the internal control systems;
To approve transactions of the Company with related parties and/or any subsequent modification
thereof;
Scrutiny of inter-corporate loans and investments to evaluate undertakings or assets of the

Company, wherever it is necessary;
To evaluate internal financial controls and risk management systems;
To review compliance and reports as may be applicable, pursuant to the provisions of SEBI
(Prohibition of Insider Trading) Regulations, 2015;
To review the adequacy of internal audit function, discuss with Internal Auditors of any significant
findings and follow up thereon, review the findings of any internal investigations into matters of
a material nature and reporting the matter to the Board;
To discuss with Statutory Auditors before the audit commences, about the nature and scope of
audit as well as post-audit discussion to ascertain any area of concern;
To look into the reasons for substantial defaults in the payment to the depositors, debenture
holders, shareholders (in case of non-payment of declared dividends) and creditors;
To review the functioning of the Whistle Blower Policy and/or Vigil Mechanism;
To review and recommend the Cost Audit Statements and Cost Audit Report to the Board of
Directors;
To approve appointment of CFO (i.e., the Whole-time Finance Director or any other person
heading the finance function or discharging that function) after assessing the qualifications,
experience and background, etc. of the candidate;
To review utilization of loans and/ or advances from/investment by the holding company in the
subsidiary exceeding Rs. 100 crore or 10% of the asset size of the subsidiary, whichever is
lower or such other limit as may be prescribed.
The Committee has been entrusted with the following responsibilities/ terms of reference for review
of legal and regulatory compliances:
To review the system and/or framework devised for monitoring and implementing compliance
with applicable laws, rules and regulations, to ensure that the same is adequate and operating
effectively and to recommend changes required, if any;
To note the overall compliance status by periodically reviewing the Legal Compliance Report
including management responses thereto;
To review the legal cases filed by and against the Company, as per the threshold approved
by the Board and/or Committee from time to time and significant government inquiries or
investigations and other significant legal actions, if any;

To review significant current and upcoming amendments to the laws, rules and regulations that
may impact business operations, performance, strategy or reputation of the Company;
To review ethics updates periodically;
To aid management in developing a strong compliance culture at all levels in the Company
resulting in appropriate consideration of compliance risks in key strategic and business
decisions.
Compliances regarding Prohibition of Insider Trading Code & Fair Disclosure Code:
The Company has a separate Code of Conduct to regulate, monitor and report trading by its
employees, Connected Persons and Designated Persons in listed securities of the Company, in
line with SEBI (Prohibition of Insider Trading) Regulations, 2015 (and amendment thereof).
The Code was last amended by the Board of Directors on October 27, 2021. The said Code is
applicable to all Directors, Designated Persons and Connected Persons, as defined under the
said Regulations. The trading window is closed during the time of declaration of results and
occurrence of any material events, if any as per the Code. By frequent communication, the Company
makes designated employees conversant of the obligations under the insider trading
regulations. The Code is also uploaded on the website of the Company and is accessible at
The Company also has a Code of Practices and Procedures for Fair Disclosure and Protection
of Unpublished Price Sensitive Information (‘Fair Disclosure Code’) pursuant to SEBI
(Prohibition of Insider Trading) Regulations, 201 (Amendment) and which was brought into
effect from April 01, 2019 in order to protect and preserve the confidentiality of unpublished
price sensitive information (UPSI), ensures timely and adequate disclosure of UPSl and to
maintain uniformity, transparency and fairness in dealing with all its stakeholders. The Code is
also uploaded on the website of the Company and is accessible at
The Audit and Compliance committee and the Board at its meeting held on May 29, 2024 had
reviewed the compliance in terms Regulation 9A(4) of the SEBI (Prohibition of Insider Trading)
Regulations, 2015 and confirmed that the Company has put in place adequate and effective system
to ensure compliance with the said Regulations.
b) NOMINATION AND REMUNERATION COMMITTEE:
Composition:
As on March 31, 2024, the Committee comprised of 5 Directors including 1 Promoter (Non-
Executive) Director - Ms. Bonnie ean Fetch and 4 Independent Directors – Ms. Rama Bijapurkar
(Chairperson), Ms. Lira Goswami, Mr. Rajeev Bakshi and Mr. Nasser Munjee.
5 5 88 %

Meetings and attendance at the Nomination and Remuneration Committee Meetings for F. .
2023-24:
Name of Directors Dates of Nomination & Remuneration Committee Meetings

May 23, August 02, Nov ember 27, January 09, February 06,
2023 2023 2023 2024 2024
Ms. Rama     
Bijapurkar
( Chairperson)
Mr. P.S. Dasgupta*  NA NA NA NA
Mr. Nasser     
Munjee***
Mr. Rajeev     
Bakshi****
Mr. Stev en   NA NA NA
Chapman**
Ms. Lira Goswami* NA    
Ms. Bonnie Jean NA    
Fetch*
* Mr. P.S. Dasgupta, pursuant to his resignation ceased to be a Member of Nomination and
Remuneration Committee with effect from close of business hours of May 24, 2023 and Ms. Lira
Goswami and Ms. Bonnie Fetch were appointed as Members of the Nomination and Remuneration
** Mr. Steven Chapman pursuant to his resignation ceased to be a Member of Nomination and
Remuneration Committee with effect from close of business hours of September 30, 2023.
*** Mr. Nasser Munjee ceased to be a Member of the Nomination and Remuneration Committee
effective May 30, 2024. Further, he will cease to be Non-Executive Independent Director of the
Company due to retirement effective uly 31, 2024. Mr. Farokh N. Subedar was appointed as a
Member of the said Committee effective from May 30, 2024.
**** Mr. Rajeev Bakshi ceased to be a Member of the Nomination and Remuneration Committee
Company due to retirement effective uly 31, 2024. Mr. Sekhar Natarajan was appointed as a
Member of the said Committee effective from May 30, 2024.
Minimum number of meetings of the Nomination and Remuneration Committee during the year
under review, were complied with.
The Committee reviews appointment of Directors, ey Managerial Personnel and Senior

Management Personnel. The Committee has formulated the criteria for determining qualifications,
positive attributes and independence of a Director. The Board upon recommendation from
the Committee have formulated a policy relating to the remuneration for the Directors, ey
Managerial Personnel, Senior Management Personnel and other employees of the Company.
The Committee is guided by the Nomination and Remuneration Policy and Nomination
and Remuneration Committee Charter accessible on the website of the Company at
https://www.cummins.com/en/in/investors/india-corporate-governance. The Policy is reviewed and
re-assessed as deemed fit by the Committee and was last amended February 0 , 2023. The Board
had adopted the Nomination and Remuneration Committee Charter effective February 0 , 2023.

Broad Terms of Reference of the Nomination and Remuneration Committee:
The role and terms of reference of the Committee primarily covers the areas as contemplated under
Section 17 of the Companies Act, 2013 and Regulation 19 of the SEBI Listing Regulations and is
as follows:
To identify persons who are qualified to become directors and who may be appointed as ey
Managerial Personnel and Senior Management in accordance with the criteria laid down and
recommend to the Board their appointment and removal;
Formulation of the criteria for determining qualifications, positive attributes and independence
of a Director and recommend to the Board a remuneration policy, relating to the remuneration
for the Directors, ey Managerial Personnel, and other employees;
Formulation of criteria for evaluation of performance of Independent Directors, Non-Executive

Directors, the Board and Committees of the Board as per applicable laws;
Devising a policy on diversity of the Board of Directors as a part of overall Nomination and
Remuneration Policy;
Recommend to the Board, all remuneration, in whatever form, payable to the Directors, ey
Managerial Personnel and Senior Management;
Identify whether to extend or continue the term of appointment of the Independent Director, on
the basis of the report of performance evaluation of Independent Directors or on the basis of a
review of skills matrix of the Board of Directors;
Deliberate on succession planning of Executive and Independent Directors, ey Managerial

Personnel and Senior Management.
Performance evaluation criteria for Directors including Independent Directors:
The Committee oversees the evaluation process, undertaken by the Directors, by the Board and by
each Committee of the Board to determine their effectiveness and opportunities for improvement.
Each Board Member is requested to evaluate the effectiveness of the Board dynamics and
relationships, information flow, value addition, governance and the effectiveness of the whole Board
and its various committees in a descriptive manner including:
Reviewing the Performance of the Non-Independent Directors and the Board as a whole;
Reviewing performance of the Committees of the Board;
Reviewing performance of the Chairperson and the Managing Director of the Company; and
Assessing the quality, quantity and timelines of flow of information between the Company’s
Management and the Board.
Feedback on each Director including separate feedback for Managing Director and Chairperson is
solicited as a part of the survey. Some of the performance indicators based on which the Independent
Directors are evaluated include:
Ability to contribute to and monitor corporate governance practices of the Company;

Active monitoring of the strategic direction and operational performance of the Company; and
Facilitating open and interactive discussion by encouraging diverse perspectives.
The evaluation criteria was duly approved by the Nomination and Remuneration Committee and the

Board. Based on the said criteria, a questionnaire-cum-rating sheet was uploaded on an online IT
tool for seeking evaluation rating and feedback of the directors in the most confidential manner with
regards to the performance of the Board, its committees, the chairperson, and individual directors.
Based on the feedback received from the directors, a report on summary of performance evaluation
of the Board, its committees, the chairperson and directors and a consolidated report thereof for F
2023-24 was prepared. The report of performance evaluation so prepared was then discussed and
noted by the Nomination and Remuneration Committee and the Board at its meeting held on May
2 , 2024, and May 29, 2024, respectively.
Remuneration of Directors:
The Non-Executive Independent Directors are paid sitting fees and annual commission. The annual
commission is paid on an equal basis pro-rated to their tenure on the Board for each year to all Non-
Executive Independent Directors at a rate not exceeding 1% of Net Profits computed in accordance
with Section 19 of the Companies Act, 2013 and pursuant to ordinary resolution passed by the
Members at their 56th Annual General Meeting of the Company. The Managing Director is paid
remuneration subject to approval by the shareholders.
Details of remuneration paid or payable to Non-executive Independent Directors during the F

2023-24 are given below. The same are also provided in the Form MGT-7, i.e. the annual return
which can be accessed at https://www.cummins.com/en/in/investors/india-annual-reports.
Details of Sitting Fees and Commission to Non-Executive Independent Directors for the year
April 01, 2023 to March 31, 2024:
Name of the Director Sitting fees Annual Commission Total ( )

Mr. Nasser Munjee ,25,000 15,00,000 23,25,000
Mr. P. S. Dasgupta1 NIL 2,21,774 2,21,774
Mr. Rajeev Bakshi 9,00,000 15,00,000 24,00,000
Ms. Rama Bijapurkar 9,00,000 15,00,000 24,00,000
Ms. Rekha 3,50,000 15,00,000 1 ,50,000
Ms. Lira Goswami2 ,25,000 12, 2,25 21,07,25
1
Mr. P.S. Dasgupta resigned as Director (Non-Executive and Independent) of the Company effective
from close of business hours of May 24, 2023 on account of professional exigencies.
2
Ms. Lira Goswami was appointed by the Board as an Additional Director (Non-Executive and
Independent) of the Company effective May 24, 2023 and regularized as a Director (Non-Executive
and Independent) of the Company in 62nd Annual General Meeting of the Company held on August
03, 2023, for her first term of five (5) consecutive years effective from May 24, 2023 to May 23, 202 .
Details of remuneration paid to Managing Director of the Company during the Financial ear
April 01, 2023 to March 31, 2024:
( in Crores)
Name Sitting Salary Comm- House Gas/ Medical Other Total
fees ission Rent Elect./ Benefits
water
Mr. Ashwath Ram - 6.23 - - - - - 6.23
This value includes stock options of Holding Company.

In addition to the remuneration mentioned above, Mr. Ashwath Ram will also receive additional
compensation from Cummins Inc. towards his role as Vice President - Global Supply Chain Function.
Notes:-
1. The Company does not have a Stock Option Scheme and no severance fees are payable to
any Director.
2. There is no notice period for severance of the Managing Director and other Directors.
There is no pecuniary relationship or transactions of any of the Non-Executive Directors vis- -vis
the Company, apart from the remuneration as detailed in this Report or in the Note No. 41 to the
Standalone Financial Statements.
Criteria for making payment to Non-Executive Independent Directors:
Non-Executive Independent Directors may be paid sitting fees (for attending the meetings of
the Board and of Committees of which they are Members) and commission as per limits and
provisions prescribed in the Companies Act, 2013, as amended from time to time. uantum of
sitting fees may be subject to review on a periodic basis, as may be required.
• The payment of sitting fees and commission shall be recommended by the Nomination and
Remuneration Committee and approved by the Board based on the study of comparable
companies and within the limits prescribed under the applicable provisions of the Companies
Act 2013, as amended from time to time. Overall remuneration practices shall be consistent
with recognized best practices.
In addition to the sitting fees and commission, the Company may pay/reimburse to any Director
such fair and reasonable expenditure, as may have been incurred by the Director while
performing his/her role as a Director of the Company.
c) STAK EHOLDERS RELATIONSHIP COMMITTEE:
Composition:
As on March 31, 2024, the Stakeholders Relationship Committee comprised of 4 Directors including
1 Promoter (Executive) Director – Mr. Ashwath Ram and 3 Independent Directors – Ms. Lira
Goswami (Chairperson), Ms. Rama Bijapurkar and Mr. Rajeev Bakshi.
4 2 87.5 %
Meetings and Attendance at the Stakeholders Relationship Committee Meetings for F. .

2023-24:
Name of Directors Date of Stakeholders Relationship Committee Meetings

May 23, 2023 Nov ember 06, 2023
Ms. Lira Goswami* NA 
( Chairperson)
Mr. P. S. Dasgupta*  NA

Name of Directors Date of Stakeholders Relationship Committee Meetings
May 23, 2023 Nov ember 06, 2023
Mr. Ashwath Ram  
Ms. Rama Bijapurkar  
Mr. Rajeev Bakshi**  
* Mr. P.S. Dasgupta, pursuant to his resignation ceased to be a Chairperson of Stakeholders

Relationship Committee effect from close of business hours of May 24, 2023 and Ms. Lira Goswami
was appointed as a Chairperson of the Stakeholders Relationship Committee effective from May
25, 2023.
** Mr. Rajeev Bakshi ceased to be a Member of the Stakeholders Relationship Committee effective
May 30, 2024. Further, he will cease to be Non-Executive Independent Director of the Company due
to retirement effective uly 31, 2024. Mr. Sekhar Natarajan was appointed as a Member of the said
Minimum number of meetings of the Stakeholders Relationship Committee during the year under
review, were complied with.
The Committee is guided by the Charter, adopted by the Board, accessible on the website of the
Company at https://www.cummins.com/en/in/investors/india-corporate-governance. The Charter
is reviewed and re-assessed when deemed fit by the Committee. The terms of reference were
amended and the Charter including revised terms of reference was adopted on May 26, 2022.
Broad Terms of Reference to the Stakeholders Relationship Committee:
The Committee primarily acts in line with the Section 17 of the Companies Act, 2013 and
Regulation 20 of the SEBI Listing Regulations. The Committee reviews and advises the Company
in the following areas:
To resolve the grievances of the security holders of the company including complaints related to
transfer/transmission of shares, non-receipt of annual report, non-receipt of declared dividends/
warrants, issue of new/duplicate certificates or new certificates on split/consolidation/renewal
etc., dematerialization and re-materialization requests of equity shares are addressed in timely
manner, general meetings, Investor Education and Protection Fund related queries etc;
To oversee compliances in respect to dividend payments and transfer of unclaimed amounts

and shares to the Investor Education and Protection Fund, as per the provisions of the
Companies Act, 2013 and Rules thereunder;
To review the measures taken for effective exercise of voting rights by security holders;
To oversee the performance of the Registrar Share Transfer Agent (‘RTA’) including review
of their adherence to the service standards adopted by the Company or as may be prescribed
by regulatory authorities, from time to time;
To recommend measures for overall improvement in the quality of investor services including
ensuring proper controls;
To review various measures and initiatives taken by the company for reducing the quantum of
unclaimed dividends and ensuring timely receipt of dividend warrants/annual reports/statutory
notices by the shareholders of the company;

To obtain, at its sole authority, professional services/ advice of internal or outside experts (legal
or other professionals), where judged necessary, to discharge its duties and responsibilities;
To periodically provide updates to the Board, on such matters as it considers relevant and
carry out such other function as may be delegated by the Board or as may be prescribed under
applicable laws from time to time;
To note the investor engagement plans/initiatives and movement in shareholdings and

ownership structure of the Company.
Compliance Officer: The Board has appointed, Ms. Vinaya oshi, Company Secretary as the
Compliance Officer, as required under the SEBI Listing Regulations and the Nodal Officer to ensure
compliance with the IEPF rules.
The following shareholder complaints were received and resolved during the financial year
April 01,2023 to March 31, 2024:
Sr. No. Nature of Complaint No. of Complaints

1. Non-receipt of Annual Reports 0
2. Non- receipt of Dividend Warrants 1
3. Non-receipt of Share Certificates 12
4. Non-receipt of Bonus Certificates 1
5. Others 2
Total 16
* BSE and NSE vide its guidance note dated uly 07, 2022 has directed listed companies to consider
complaints received from all the sources while filling the quarterly report for investor complaints.
Number of complaints pending with the Company as on March 31, 2024: NIL
Number of pending share transfers with the Company as on March 31, 2024: NIL
Pursuant to a Circular dated March 27, 2019, the Securities and Exchange Board of India (SEBI)
had, effective from April 01, 2019, mandated the transfer of shares only in dematerialized form
except where the claim is lodged for transmission or transposition of shares or where the transfer
deed(s) was lodged prior April 01, 2019 and returned due to deficiency in the document. SEBI vide
its circular dated September 07, 2020 had set March 31, 2021 as the cut-off date for re-lodgement
of transfer deeds and vide its circular dated December 02, 2020 prescribed operational guidelines
for Transfer and Dematerialization of re-lodged physical shares. The Company has acted upon all
valid requests for share transfer received during the Financial ear 2021-22 in accordance with the
provisions of SEBI Listing Regulations and the circulars issued thereunder.
d) CORPORATE SOCIAL RESPONSIBILITY ( CSR) COMMITTEE:
Composition:
As on March 31, 2024, the Corporate Social Responsibility Committee comprised of 4 Directors
including 1 Promoter (Executive) Director – Mr. Ashwath Ram, 1 Non-Independent (Non-Executive)
Director- Ms. Bonnie ean Fetch and 2 Independent Directors – Ms. Rama Bijapurkar (Chairperson)
and Mr. Nasser Munjee

4 4 87.5 %
Meetings and Attendance at the Corporate Social Responsibility Committee Meetings of F. .

2023-24:
Name of Directors Date of Corporate Social Responsibility Committee meetings

May 23, August 02, Nov ember 06, February 06,
2023 2023 2023 2023
Ms. Rama Bijapurkar*    
( Chairperson)
Mr. P. S. Dasgupta*  NA NA NA
Mr. Nasser Munjee**    
Mr. Ashwath Ram    
Ms. Bonnie Jean Fecth* NA   
* Mr. P.S. Dasgupta, pursuant to his resignation ceased to be a Chairperson of Corporate Social
Responsibility Committee effect from close of business hours of May 24, 2023. Ms. Rama Bijapurkar
and Ms. Bonnie Fetch were appointed as Chairperson and Member of the Corporate Social
Responsibility Committee respectively, effective from May 25, 2023.
** Mr. Nasser Munjee ceased to be a Member of the Corporate Social Responsibility Committee
Company due to retirement effective uly 31, 2024. Mr. Farokh N. Subedar and Ms. Rekha were
appointed as Members of the said Committee effective from May 30, 2024.
Minimum number of meetings of the CSR Committee during the year under review, were complied
with.
The Committee is guided by the Charter, adopted by the Board, accessible on the website of the
Company at https://www.cummins.com/en/in/investors/india-corporate-governance. The Charter is
reviewed and re-assessed when deemed fit by the Committee and was last amended on March 26,
2021.
Broad Terms of Reference of Corporate Social Responsibility Committee:
The Committee oversees, inter-alia, corporate social responsibility and other related matters as may
be referred by the Board of Directors and discharges the roles as prescribed under Section 135 of
the Companies Act, 2013, in the following areas:
To identify the areas of CSR activities;
To formulate and recommend to the Board, a Corporate Social Responsibility Policy which
shall indicate the activities to be undertaken by the Company in areas or subject, specified in
Schedule VII of the Companies Act, 2013 or any amendment thereto read with Government
Directives from time to time;
To formulate and recommend to the Board, an Annual Action Plan, in pursuance to its CSR
Policy;

To recommend the amount of expenditure be incurred on such other activities as decided and
permitted under the applicable laws from time to time;
To implement and monitor the Corporate Social Responsibility Policy of the Company from
time to time;
To coordinate with Cummins India Foundation or any other agencies as may be decided, for
implementing programs and executing initiatives as per CSR Policy of the Company;
To take such necessary steps as may be required to carry out impact assessment of CSR
projects, as per applicable laws through an independent agency;
To carry out any other function as may be delegated by the Board or as may be prescribed
under applicable laws from time to time; and
The Committee may periodically provide necessary updates to the Board.
The Committee has also formulated a Policy indicating the activities to be undertaken by the
Company in areas or subject, specified in Schedule VII of the Companies Act, 2013 or any
amendment thereto, adopted by the Board, accessible on the website of the Company at
https://www.cummins.com/en/in/investors/india-corporate-governance. The Policy is reviewed and
re-assessed as and when deem fit by the Committee and was last amended on March 26, 2021.
e) RISK MANAGEMENT COMMITTEE:
Composition:
As on March 31, 2024, the Risk Management Committee comprised of 6 Directors including 1
Promoter (Executive) Director – Mr. Ashwath Ram, 1 Non-Independent (Non-Executive) Director -
Ms. ennifer Mary Bush, 4 Independent Directors (Non-Executive) – Mr. Rajeev Bakshi (Chairperson),
Ms. Lira Goswami, Ms. Rama Bijapurkar and Mr. Nasser Munjee.
6 4 87 %
Meetings and Attendance at the Risk Management Committee Meetings for F. . 2023-24:
Name of Directors Date of Risk Management Committee Meetings

May 23, August 02, Nov ember 06, February 06,
2023 2023 2023 2024
Mr. Rajeev Bakshi    
( Chairperson) **
Mr. Nasser Munjee***    
Mr. P. S. Dasgupta*  NA NA NA
Mr. Ashwath Ram    
Ms. Rama Bijapurkar    
Ms. Lira Goswami* NA   
Ms. Jennifer Mary Bush* NA   

* Mr. P.S. Dasgupta, pursuant to his resignation ceased to be a Member of Risk Management
Committee effect from close of business hours of May 24, 2023 and Ms. Lira Goswami and
Ms. ennifer Mary Bush were appointed as Members of Risk Management Committee effective from
May 25, 2023.
** Mr. Rajeev Bakshi ceased to be Chairperson and Member of the Risk Management Committee
Company due to retirement effective uly 31, 2024. Mr. Sekhar Natarajan was appointed as
Chairperson and Member of the said Committee effective from May 30, 2024.
*** Mr. Nasser Munjee ceased to be a Member of the Risk Management Committee effective May
30, 2024. Further, he will cease to be Non-Executive Independent Director of the Company due
to retirement effective uly 31, 2024. Mr. Farokh N. Subedar and Ms. Rekha were appointed as
Members of the said Committee effective from May 30, 2024.
Minimum number of meetings of the Risk Management Committee during the year under review,
were complied with.
Broad Terms of Reference of the Risk Management Committee:
The Committee is guided by the Charter adopted by the Board, accessible on the website of the
Company at https://www.cummins.com/en/in/investors/india-corporate-governance. The Charter is
reviewed and re-assessed when deemed fit by the Committee and was last amended on August 11,
2021. The roles and responsibilities of the Committee are as prescribed under Regulation 21 of the
SEBI Listing Regulations, which inter-alia include:
To identify, assess, mitigate and monitor the existing as well as potential risks (internal and
external) to the Company, to recommend the strategies to overcome them and review key
leading indicators in this regard;
To formulate and recommend to the Board, a Risk Management Policy, which shall include
framework for identification of internal and external risks faced by the Company, in particular
including financial, operational, sectoral, sustainability, information, cyber security risks or any
other risk as may be determined by the Committee; measures for risk mitigation and business
continuity plan;
To periodically review and approve the Risk Management framework including the Risk
Management processes, systems and practices of the Company;
To evaluate significant risk exposures of the Company and assess management’s actions to
mitigate the exposures in a timely manner;
To advise on developing and implementing action plans to mitigate the risks;
To co-ordinate its activities with the Audit and Compliance Committee and other committees
in instances where there is any overlap with risk areas or audit (e.g., internal, or external risk
issues/ audit issues relating to Risk Management Policy or practice);
To oversee at such intervals as may be necessary, the adequacy of Company’s resources to

perform its Risk Management responsibilities and achieve its objectives;
To review and periodically assess the Company’s performance against the identified risks of
the Company; and

To review and periodically re-assess the adequacy of its Charter and recommend any proposed
changes to the Board for approval.
f) Particulars of Senior Management of Cummins India Limited:
Name of Senior Management Personnel Category

Mr. Ashwath Ram Managing Director
Mr. Ajay S. Patil Chief Financial Officer
Ms. Anupama aul Executive Director – Human Resource
Ms. Sanjit aur Batra Group Vice President – Legal
Ms. Shveta Arya Executive Director – Power Systems
Mr. Vivek Malapati Vice President – Distribution Business
Ms. Vinaya oshi Company Secretary and Compliance Officer
The Senior Management of your Company have made disclosures to the Board confirming that
there are no material financial and commercial transactions between them and the Company which
could have potential conflict of interest with the Company at large.
Succession planning at Senior Management levels is reviewed by the Board. Business, function or
unit heads are invited to present on specific topics at Board meetings from time to time, offering an
opportunity to the directors to assess their values, competencies, and capabilities.
4. GENERAL MEETING ( ‘ GM’ ) :
a) ANNUAL GENERAL MEETING ( ‘ AGM’ ) :
Location, Date and Time, where prev ious three ( 3) AGM were held:
FY 2020-21 FY 2021-22 FY 2022-23

Date and Time August 12, 2021 August 10, 2022 August 03, 2023
At 3.30 P.M. at 12 Noon at 4.00 P.M.
Venue Conducted through Conducted through Conducted through
Video conference. Video conference. Video conference.
Place of Meeting Place of Meeting Place of Meeting
was construed as was construed as was construed as
Cummins India Office Cummins India Office Cummins India Office
Campus, Tower A, 5th Campus, Tower A, 5th Campus, Tower A, 5th
Floor, Survey No. 21, Floor, Survey No. 21, Floor, Survey No. 21,
Balewadi, Balewadi, Balewadi,
Pune 411 045 Pune 411 045 Pune 411 045
Special resolutions No special resolution No special resolution Special Resolution
passed was passed was passed was passed for
Appointment of Ms.
Lira Goswami as
a Non-Executive
Independent Director.
b) EX TRA-ORDINARY GENERAL MEETING ( ‘ EGM’ ) :
No Extra-ordinary General Meeting of the shareholders of the Company was convened during the
F 2023-24.

c) POSTAL BALLOT: No resolution was passed through Postal Ballot during the F 2023-24 or is
being proposed at the ensuing Annual General Meeting.
5. STATUTORY AUDITORS
M/s. Price Waterhouse Co Chartered Accountants LLP, Chartered Accountants are the Statutory
Auditors of the Company. The payment of Statutory Auditors’ fees, on consolidated basis for F 2023-24
is Rs. 2.03 Crores.
6. DISCLOSURES:
a) The Company does not have materially significant Related Party Transactions (i.e. transactions of the
Company of material nature with its Promoters, Directors or the Management, or their subsidiaries
or relatives etc.) which may have potential conflict with the interest of the Company at large. The
Company has disclosed the policy on dealing with Related Party Transactions on its website and is
accessible at https://www.cummins.com/en/in/investors/india-corporate-governance.
b) The Company does not have any material subsidiary.
c) The Company has disclosed the Material Subsidiary Policy on its website and is accessible at
d) The Company has disclosed all policies, codes and charters, as required to be disclosed and are
accessible on the website of the Company at
e) The Company has complied with the requirements of regulatory authorities on capital markets and
no penalties/ strictures have been imposed against it in the last 3 years.
f) The Company has complied with the mandatory Corporate Governance requirements stipulated
under Regulation 17 to 27 read with Schedule V and clauses (b) to (i) of sub-regulation (2) of
Regulation 46 of SEBI Listing Regulations.
g) The Company has not adopted any discretionary requirements mentioned in Regulation 27(1) of the
SEBI Listing Regulations.
h) The Company follows a Vigil Mechanism Policy (earlier known as Whistle Blower Policy) since
Financial ear 2003-04 in line with the SEBI Listing Regulations. No person has been denied access
to the Audit and Compliance Committee under the Vigil Mechanism Policy.
i) The Managing Director and Chief Financial Officer of the Company have certified to the Board of
Directors, inter alia, on the accuracy of financial statements and adequacy of internal controls for
the financial reporting as required under Regulation 17( ) read with Part B of Schedule II of SEBI
Listing Regulations.
j) Foreign exchange risk and hedging activities:
During the Financial ear 2023-24, the Company has managed foreign exchange risk and hedged
to the extent considered necessary. The Company enters into forward contracts for hedging foreign
exchange exposures against exports and imports. The details of the sensitivity analysis on the
foreign currency exposure are disclosed in note no. 43 (a)(i) to the Annual Accounts (Standalone
Financial Statements).

k) The Company follows the mandatory Accounting Standards prescribed by the Institute of Chartered
Accountants of India (ICAI) and to the best of its knowledge, there are no deviations in the accounting
treatments that require specific disclosure.
l) There were no recommendations of Committees of the Board, mandatorily required, in the Financial
ear 2023-24 which were not accepted by the Board.
m) Details relating to fees paid to the Statutory Auditors are given in note no. 31 to the Standalone
Financial Statements and note no. 31 to the Consolidated Financial Statements.
n) In the opinion of the Board, the Independent Directors fulfill the conditions specified in these
regulations and are independent of the Management.
o) Disclosures in Relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition

and Redressal) Act, 2013: The details of number of complaints filed and disposed of during the year
and pending as on March 31, 2024 is given in the Directors’ Report.
p) During the Financial ear 2023-24, the Company has not granted any ‘Loans and Advances in the
nature of loans to firms/companies in which Directors are interested by name and amount’.
q) Pursuant to Regulation 26(5) of the SEBI Listing Regulations, Senior Management has made
periodical disclosures to the Board relating to all material financial and commercial transactions,
where they had (or were deemed to have had) personal interest that might have been in potential
conflict with the interest of the Company.
7. MEANS OF COMMUNICATION:
a) The quarterly shareholding pattern and quarterly / half-yearly / yearly un-audited / audited financial
results were posted on the Company’s website https://www.cummins.com/en/in/investors/india-shareholding
and also on https://www.nseindia.com/ and https://www.bseindia.com/.
b) The official news releases of the Company were displayed on the Company’s website
https://www.cummins.com/en/in/investors/india-investors-notices and https://www.bseindia.com/.
c) The annual audited and quarterly/ half-yearly unaudited financial results for the year ended March
2024 and quarters ended une, September and December 2023 were duly published in Business
Standard (All editions) and Loksatta (Pune Edition).
d) Transcript of quarterly conference calls with the Analysts held on May 25, 2023, August 04, 2023,
November 0 , 2023 and February 0 , 2024 and the Managing Director’s Presentation to the
Shareholders made at the Annual General Meeting held on August 03, 2023 were displayed on the
Company’s website www.cumminsindia.com. Additionally, transcript of 62nd Annual General Meeting
held on August 03, 2023 was displayed on the Company’s website at
https://www.cummins.com/en/in/investors/india-investors-notices.
e) The Company also issues press releases on important matters as may be required from time to
time.
f) In compliance with the provisions of Section 20 of the Companies Act, 2013 and as a continuing
endeavour towards the ‘Go Green’ initiative by Ministry of Corporate Affairs, the Company proposes
to send all correspondence / communications through electronic means to those shareholders who
have registered their email-id with their depository participant’s / Company’s Registrar and Share
Transfer Agent.

8. GENERAL SHAREHOLDER INFORMATION:
Registered Office Cummins India Office Campus, Tower A, 5th Floor, Survey No. 21,
Balewadi, Pune 411 045 Maharashtra, India
Phone No. : (020) 67067000
Fax No. : (020) 67067015
Website : www.cumminsindia.com
Annual General Meeting Date and Time : August 07, 2024 at 10.00 A.M. (IST)
Mode : Video conference and other audio-visual means
Venue : Deemed venue shall be Cummins India Ofice
Campus, Tower A, 5th Floor, Survey No. 21,
Balewadi, Pune 411 045
Financial ear The Financial ear of the Company is 1st April to 31st March.
Financial Calendar (Tentative) Results for quarter ending une 30, 2024 – By second week of
August, 2024
Results for quarter and half-year ending September 30, 2024 –
By first week of November 2024
Results for quarter and nine months ending December 31, 2024–
By second week of February 2025
Results for the quarter and year ending March 31, 2025 – By
Fourth week of May, 2025
Interim dividend payment date March 06, 2024
Record Date for Final Dividend uly 19, 2024
Final Dividend payment date On or around August 30, 2024 (subject to approval of shareholers
in the ensuing Annual General Meeting)
Listing on Stock Exchanges Name of Exchange Stock Code
1. BSE Limited (BSE) P. . Towers, Dalal Street, 5004 0
Mumbai : 400 001
2. National Stock Exchange of India Limited CUMMINSIND
(NSE) Exchange Plaza, Bandra– urla
Complex, Bandra (E), Mumbai : 400 051
Payment of Listing Fees The Company has paid in advance the Listing Fees to both the
Stock Exchanges for the Financial ear 2024-25.

Market price data: High, Low during each month in the FY – 2023-24:
BSE NSE
Month igh ( ) Low ( ) Month igh ( ) Low ( )
April 1,646.40 1,4 1.10 April 1,640.45 1,4 1.00
May 1,773.95 1,557.15 May 1,774.00 1,556.00
une 1,952.00 1,73 .00 une 1,952.00 1,73 .50
uly 1,961.30 1, 63.60 uly 1,974.00 1, 51.75
August 1,915.00 1,690.00 August 1,9 0.15 1,690.00
September 1,7 6.00 1,654.10 September 1,7 6.50 1,653.30
October 1,75 .95 1,590.30 October 1,75 .90 1,664.05
November 1,919.35 1,65 .65 November 1,920.00 1,659.05
December 2,045.45 1, 36.95 December 2,044.90 1, 35.55
anuary 2,306.00 1,92 .70 anuary 2,306.75 1,927.00
February 2, 2 .35 2,224.65 February 2, 2 .00 2,220.25
March 3,021.75 2,650.00 March 3,025.00 2,652.00
Performance in comparison to Chart A depicts the comparable movement of Company’s Equity

broad-based indices such as Shares against BSE Sensex, during the year ended March 31, 2024.
BSE Sensex.
Cummins India Limited ( monthly closing share price) v ersus BSE Sensex ( monthly closing
Sensex) FY 2023-24:
78,000.00 3,250.00
76,000.00 3,150.00
74,000.00 3,050.00
72,000.00 2,950.00
70,000.00 2,850.00
68,000.00 2,750.00
2,650.00
66,000.00 2,550.00
64,000.00 2,450.00
62,000.00 2,350.00
CIL Share Closing (INR)
60,000.00 2,250.00
58,000.00 2,150.00
SENSEX Closing
56,000.00 2,050.00
54,000.00 1,950.00
52,000.00 1,850.00
50,000.00 1,750.00
1,650.00
48,000.00 1,550.00
46,000.00 1,450.00
44,000.00 1,350.00
42,000.00 1,250.00
40,000.00 1,150.00
38,000.00 1,050.00
36,000.00 950.00
34,000.00 850.00
32,000.00 750.00
30,000.00 650.00
550.00
28,000.00 450.00
26,000.00 350.00
24,000.00 250.00
22,000.00 150.00
20,000.00 50.00
Sensex Closing CIL Share Closing (INR)

Registrar and Transfer Agent The Company has appointed Link Intime India Private Limited,
Mumbai as its Registrar and Transfer Agent. Share transfers,
dematerialization of shares, dividend payment and all other investor
related activities are attended to and processed at the office of the
Registrar and Transfer Agent:

Unit : Cummins India Limited
L.B.S. Marg, Vikhroli (West),
Mumbai 4000 3.
Phone No. (022) 491 6270
Fax No. (022) 491 6060
Contact Person : Mrs. Sujata Poojary
E-mail: sujata.poojary linkintime.co.in /
rnt.helpdesk linkintime.co.in
Time:- 10.00 to 16.00 hours (Mon. to Fri. excl. public holidays)
Share Transfer System Trading in Equity Shares of the Company through recognized Stock
Exchanges is permitted only in dematerialized form. In terms of
Regulation 40(1) of SEBI Listing Regulations, transfer of securities
held in physical mode has been discontinued and the transfer of
securities is allowed only in dematerialized form.
Further, SEBI vide its Circular No. SEBI/HO/MIRSD RTAMB/P/

CIR/2022/ dated anuary 24, 2022, mandated all the listed
companies to issue securities in dematerialized form only,
while processing the service request for issue of duplicate
securities certificates, renewal/exchange of securities certificate,
endorsement, sub-division/splitting of securities certificate,
consolidation of securities certificates/folios, transmission and
transposition. In view of the same and to eliminate all risks
associated with physical shares and avail various benefits of
dematerialization, Members are advised to dematerialize the
shares held by them in physical form.
During the year, the Company had obtained, on an annual basis,

a certificate, from a Company Secretary in Practice, certifying
that all certificates have been issued within thirty days of the date
of lodgement of the transfer (for cases lodged prior to April 01,
2019), sub-division, consolidation and renewal as required under
Regulation 40(9) of the SEBI Listing Regulations and filed a copy
of the said certificate with the Stock Exchanges.

Distribution of shareholding as on March 31, Category No. of shares % of
2024 of 2/- each shareholding
Promoters 141,372,000 51.00
Indian Public NRIs Others Mutual Funds 52,059,546 1 .7
Corp. Bodies
FIIs
Banks/ Financial
Institutions/
Insurance 7,526, 45 2.72
Companies
Foreign
Institutional 4 ,130,764 17.36
Investors (FIIs)
Corporate
1,303,609 0.47
Banks/ Fin. Inst./ Promoters Bodies
Insurance Cos. Indian Public 19,664,249 7.09
Mutual Funds
NRIs 1,437,349 0.52
Others 5,705,63 2.06
TOTAL 277,200,000 100.00
Distribution of shareholding within various categories (as on March 31, 2024)
Category ( shares) No. of No. of % of shareholders to % of shares to

shareholders Shares total shareholders total shares
1-1,000 116,6 4,902,106 94.60 1.76
1,001-2,000 2,199 1,5 2,421 1.7 0.57
2,001-4,000 1,494 2,0 5,953 1.21 0.75
4,001-6,000 70 1,753,44 0.57 0.63
6,001- ,000 359 1,252,40 0.29 0.45
,001-10,000 343 1,544, 50 0.27 0.56
10,001-20,000 6 4 5,137,335 0.55 1. 6
20,001 and above 61 25 ,941,479 0.69 93.41
Total 123,336 277,200,000 100.00 100.00
Dematerialization of shares and liquidity 99.53% shares are in demat form.

(as on March 31, 2024)
Sub-divided share certificate in lieu of The Company had on February 10, 19 7, sub-divided each
old certificates Equity Share of the face value of 100/- each into ten Equity
Shares of the face value of 10/- each. Subsequently, on
December 04, 2000, the Company sub-divided each Equity
Share of the face value of 10/- each into five Equity Shares
of the face value of 2/- each. The Company has in the past
sent reminders to those Shareholders who have not claimed
new certificates for sub-divided Shares of the face value of
2/- each.
Cummins India Limited l

Outstanding GDRs/ ADRs/ Warrants or The Company has not issued GDRs / ADRs / Warrants or
any Convertible instruments, conversion any Convertible instruments.
date and likely impact on equity
Plant locations 1. othrud, Pune – 411 03 , Maharashtra.
2. Gat No. 311/1B, at Post asar Amboli, Taluka Mulshi

Pirangut, District Pune – 412 111, Maharashtra.
3. MIDC Phaltan, Village Survadi, Nandal, Taluka Phaltan,

Satara – 415 523, Maharashtra.
4. Survey No. 461/2C, Puzhal Village, Saidapet Taluk,

Madhavaram Taluk, Thiruvallur District, Chennai – 600
060, Tamil Nadu.
Address for correspondence and 1. Ms. Vinaya oshi
information for grievance redressal Company Secretary Compliance Officer
Cummins India Office Campus, Tower A, 5th Floor, Survey
No. 21, Balewadi, Pune – 411 045, Maharashtra, India.
Tel: +91 20 6706 7000, 3019 7000 Fax: +91 20 6706 7011
E-mail: Cil.Investors cummins.com
2. Ms. Sujata Poojary

L.B.S. Marg, Vikhroli (West), Mumbai 4000 3.
Phone No. (022) 491 6270
Fax No. (022) 491 6060
E-mail: sujata.poojary linkintime.co.in
The Company has also a dedicated E-mail ID, for

Shareholders, which is Cil.Investors cummins.com for the
purpose of registering complaints and the same has been
hosted on the Company’s website.
The Company is registered with SEBI Complaints Redressal

System (SCORES). The investors can send their complaints
through SCORES also, for this the investors have to visit
https://www.scores.gov.in.
The Company is also registered on Smart ODR portal, for

this the investor has to visit https://smartodr.in/login.
Security holders would have to correspond with the respective

Depository Participants for shares held in demateralized
form for transfer/transmission of shares, change of Address,
change in Bank details, etc. ou may visit the Company’s
website for more information at:
https://www.cummins.com/en/in/investors/india-investors-overview.

9. COMPLIANCE CERTIFICATE OF THE AUDITORS:
The Company has obtained a Certificate from M/s Pramod Shah Associates, confirming compliance
with conditions of the Code of Corporate Governance as stipulated in Regulation 34 read with Schedule
V of the SEBI Listing Regulations and the same is appended as Annexure ‘6’ to the Directors’ Report.
10. CERTIFICATE FROM PRACTICING COMPANY SECRETARY:
The Company has received a certificate from M/s Pramod Shah Associates confirming that none of the
Directors on the Board of the Company have been debarred or disqualified by MCA or SEBI or any such
Statutory Authority from being appointed / continuing as Director and the same is appended as Annexure
‘7’ to the Directors’ Report.
DECLARATION – CODE OF CONDUCT
As per Regulation 26 of the SEBI Listing Regulations, all Board Members and Senior Management
personnel of the Company have affirmed compliance with the applicable Code of Conduct for the
Financial ear 2023-24.
For Cummins India Limited
Ashwath Ram
Place: Pune Managing Director
Date: May 29, 2024 DIN: 00149501

Annexure 5 – FORM NO. MR-3

SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2024
[ Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014
To,
The Members,
Cummins India Limited,
Cummins India Office Campus,
Tower A, 5th Floor,
Survey No. 21 Balewadi,
Pune-411 045
Dear Sir/Madam,
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence
to good Corporate Governance practice by Cummins India Limited (hereinafter called “the Company”). The
Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate
conducts/statutory compliances and expressing our opinion thereon.
Based on our verification of the Company’s books, papers, minute books, forms and returns filed with
regulatory authorities and other records maintained by the Company and also the information provided by the
Company, its officers, agents and authorized representatives during the conduct of Secretarial Audit, we hereby
report that in our opinion, the Company has, during the audit period covering the financial year ended
31st March, 2024 (review period), complied with the statutory provisions listed hereunder and also that the
Company has proper Board-processes and compliance mechanism in place to the extent, in the manner and
subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by
the Company for the year ended 31st March, 2024 according to the provisions of:
1. The Companies Act, 2013 (‘the Act’) and the rules made thereunder, as amended from time to time;
2. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
3. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
4. The Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the
extent of Foreign Direct Investment;
5. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India
Act, 1992 (‘SEBI Act’):
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011, as amended from time to time;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, as
amended from time to time;

(c) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended from time to time;
We have also examined compliance with the applicable clauses of the following:
(a) Secretarial Standards issued by the Institute of Company Secretaries of India (SS-1 SS-2).
(b) Listing Agreements entered into by the Company with BSE Ltd. and National Stock Exchange of
India Ltd. as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
We further report that:
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-
Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that
took place during the period under review were carried out in compliance with the provisions of the Act.
Adequate notice is given to all Directors to schedule the Board/Committee Meetings, agenda and detailed
notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining
further information and clarifications on the agenda items before the meeting and for meaningful participation
at the meeting.
Decisions taken by majority of Board members and Committee members are carried through and proper
systems are in place which facilitates/ensures to capture and record, the dissenting member’s views, if any,
as part of the minutes. During the period, all the decisions in the Board Meetings were carried unanimously.
We have relied on the representation made by the Company, its Officers and Reports of the Statutory Auditor for
the systems and mechanism framed by the Company for compliances under other Acts, Laws and Regulations
applicable to the Company.
We further report that there are adequate systems and processes in the Company which are commensurate
with the size and operations of the Company to monitor and ensure compliance with applicable Laws, Rules,
Regulations and Guidelines and during the audit period there were no specific events/actions which have a
major bearing on the Company’s affairs.
During the period under review the Company has complied with the provisions of the Acts, Rules, Regulations,
Guidelines, Standards etc. mentioned above.
We further report that during the audit period there were no specific events/actions which have a major
bearing on the Company’s affairs.
Pramod S. Shah Associates

(Practicing Company Secretaries)
Pramod S. Shah – Partner

Membership No: FCS 334
Place: Mumbai C.P. No: 3 04
Date: May 29, 2024 UDIN: F000334F000457331

Annexure 6 – CERTIFICATE ON COMPLIANCE WITH SEBI ( LISTING OBLIGATIONS AND

DISCLOSURE REQUIREMENTS) , REGULATIONS, 2015, RELATING TO CORPORATE
GOVERNANCE REQUIREMENTS BY CUMMINS INDIA LIMITED
We have examined compliance by Cummins India Limited (the Company) with the requirements under the
SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, (Listing Regulations) relating to
corporate governance requirements for the year ended 31st March 2024.
In our opinion and to the best of our information and according to the explanations given to us and the
representation by the Directors and the management, we certify that the Company has complied with the
conditions of Corporate Governance as stipulated in the Listing Regulations.
The compliance of conditions of Corporate Governance is the responsibility of the management of the
Company. Our examination was limited to procedures and implementation thereof, adopted by the Company
for ensuring the compliance of the conditions of Corporate Governance under the Listing Regulations. The
examination is neither an audit nor an expression of opinion on the financial statements of the Company or the
Corporate Governance Report of the Company.
We further state that no investor’s grievance is pending or remained unresolved by the Company for a period
‘beyond the statutory timeline’ as per the records maintained by the Stakeholders Relationship Committee.
We further state that such compliance is neither an assurance to the future viability of the Company nor the
efficiency or effectiveness with which the management has conducted the affairs of the Company.


Date: May 29, 2024 UDIN: F000334F000457450

Annexure 7 – CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

Pursuant to Regulation 34(3) and Schedule V Part C Clause (10)(i) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015
To,
The Members,
Cummins India Limited,
Cummins India Office Campus, Tower A,
5th Floor, Survey No. 21, Balewadi,
Pune – 411045
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors
of Cummins India Limited having CIN: L29112PN1962PLC012276 and having registered office at Cummins
India Office Campus, Tower A, 5th Floor, Survey No. 21, Balewadi, Pune - 411045 (hereinafter referred to as
‘the Company’), produced before us by the Company for the purpose of issuing this Certificate, in accordance
with Regulation 34(3) read with Schedule V Para-C Clause (i) of Securities Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications including Directors
Identification Number (DIN) status at the portal www.mca.gov.in as considered necessary and explanations
furnished to us by the Company its officers, we hereby certify that none of the Directors on the Board of the
Company as stated below for the financial year ended 31st March, 2024 have been debarred or disqualified
from being appointed or continuing as Directors of companies by the Securities Exchange Board of India,
Ministry of Corporate Affairs or any such other Statutory Authority.
SR. NAME OF THE DIRECTORS DIRECTORS IDENTIFICATION DATE OF APPOINTMENT

NO. NUMBER IN THE COMPANY
1. Mr. Nasser Mukhtar Munjee 000101 0 29/03/2001
2. Mr. Rajeev Bakshi 00044621 20/10/2000
3. Ms. Rama Bijapurkar 00001 35 17/06/2020
4. Mr. Ashwath Ram 00149501 17/0 /2019
5. Mr. Donald ackson Gray 0 261104 30/10/201
6. Ms. Rekha 0 501990 11/0 /2022
7. Ms. ennifer Mary Bush 09777114 05/11/2022
. Ms. Bonnie ean Fetch 09791477 25/11/2022
9. Ms. Lira Goswami 00114636 24/05/2023
Ensuring the eligibility for the appointment/ continuity of every Director on the Board is the responsibility of the
management of the Company. My responsibility is to express an opinion on these, based on our verification.
This certificate is neither an assurance as to the further viability of the Company nor of the efficiency or
effectiveness with which the management has conducted the affairs of the Company.


Date: May 29, 2024 UDIN: F000334F000457395

Annexure 8 – NOMINATION AND REMUNERATION POLICY

Pursuant to Section 17 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015
The Nomination and Remuneration Policy (“Policy”) of Cummins India Limited (“Cummins” or “Company”) is
formulated under the requirements of applicable laws, including the Companies Act, 2013 and SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
The policy is intended to set out the criteria to pay equitable remuneration to Directors, ey Managerial
Personnel ( MP), Senior Management (as defined below) and other employees of the Company and to
harmonise the aspirations of human resources with the goals of the Company.
1. OBJECTIVES OF POLICY
The key objectives of the Policy are :
1.1. To guide the Board in relation to appointment and removal of Directors (Non-Executive, Executive,
Independent), ey Managerial Personnel and Senior Management.
1.2. To recommend to the Board on remuneration payable to the Directors, ey Managerial Personnel
and Senior Management.
1.3. To provide to ey Managerial Personnel and Senior Management reward linked directly to their
effort, performance, dedication and achievement relating to the Company’s operations.
1.4. To retain, motivate and promote talent and to ensure long term sustainability of talented managerial
persons and create competitive advantage.
1.5. To facilitate diversity of Board of Directors.
2. DEFINITIONS
2.1. Act means the Companies Act, 2013 and Rules framed thereunder, as amended from time to time.
2.2. Board means Board of Directors of the Company.
2.3. Directors mean Directors of the Company.
2.4. K ey Managerial Personnel/ K MP means,
2.4.1. Chief Executive Officer or the Managing Director or the Manager;
2.4.2. Whole-time director;
2.4.3. Chief Financial Officer;
2.4.4. Company Secretary;

2.4.5. such other officer, not more than one level below the Directors who is in wholetime
employment, designated as ey Managerial Personnel by the Board; and
2.4.6. such other officer as may be prescribed.
2.5. Senior Management means officers and personnel of the listed entity who are Members of its
core management team, excluding Board of Directors and shall also comprise all Members of
management one level below the Chief Executive Officer or Managing Director or Whole-time
Director or Manager (including Chief Executive Officer and Manager, in case they are not part of the
Board of Directors) and shall specifically include the functional heads, by whatever name called and
the Company Secretary and the Chief Financial Officer.
3. ROLE OF COMMITTEE
3.1. Policy for appointment/ re-appointment and removal of Director, MP and Senior Management
3.1.1. Appointment criteria and qualifications

a) The Committee shall ascertain the integrity, qualification, expertise and experience
of the person for appointment as Director, MP or at Senior Management level and
recommend to the Board his / her appointment.
b) A person should possess adequate qualification, expertise and experience for the
position he / she is considered for appointment. The Committee has discretion to decide
whether qualification, expertise and experience possessed by a person is satisfactory
for the concerned position.
c) The Committee shall ensure all Board appointments/re-appointments are based on

merit, in the context of appropriate skills, experience, independence and knowledge, for
the Board as a whole to be effective.
d) The Company shall not appoint or continue the employment of any person as Whole-time
Director who has attained the age of seventy years or such other age for the purpose
of superannuation as per the internal policy of the Company. Provided that the term of
the person holding this position may be extended beyond the age of seventy years with
the approval of shareholders by passing a special resolution based on the explanatory
statement annexed to the notice for such motion indicating the justification for extension
of appointment beyond seventy years.
e) The Company shall not appoint or continue the employment of any person as Non-
Executive Director who has attained the age of seventy-five years. Provided that the
term of the person holding this position may be extended beyond the age of seventy-five
years with the approval of shareholders by passing a special resolution based on the
explanatory statement annexed to the notice for such motion indicating the justification
for extension of appointment beyond seventy-five years.
3.1.2. Term / Tenure
a) Chairman/ Managing Director/ Whole-time Director:
The Company shall appoint or re-appoint any person as its Managing Director or Whole-
time Director for a term not exceeding five years at a time. No re-appointment shall be
made earlier than one year before the expiry of term.

b) Independent Director:
- An Independent Director shall hold office for a term up to five consecutive years
on the Board of the Company and will be eligible for re-appointment on passing
of a special resolution by the Company and disclosure of such appointment in the
Board’s Report.
- No Independent Director shall hold office for more than two consecutive terms, but
such Independent Director shall be eligible for appointment after expiry of three
years of ceasing to become an Independent Director. Provided that an Independent
Director shall not, during the said period of three years, be appointed in or be
associated with the Company in any other capacity, either directly or indirectly.
However, if a person who has already served as an Independent Director for five
years or more in the Company as on October 1, 2014 or such other date as may
be determined by the Committee as per regulatory requirement; he/ she shall be
eligible for appointment for one more term of five years only.
- At the time of appointment of Independent Director, it should be ensured that
number of Boards on which such Independent Director serves is restricted to such
number as may be prescribed under the applicable laws in force.
3.1.3. Remov al
Due to reasons for any disqualification mentioned in the Act or under any other applicable act,
rules and regulations thereunder, the Committee may recommend to the Board with reasons
recorded in writing, removal of a Director, MP or Senior Management Personnel subject to
the provisions and compliance of the said Act, rules and regulations.
3.1.4. Retirement
The Director, MP and Senior Management Personnel shall retire as per the applicable
provisions of the Act and the prevailing policy of the Company. The Board will have the
discretion to retain the Director, MP, Senior Management Personnel in the same position/
remuneration or otherwise even after attaining the retirement age, for the benefit of the
Company.
3.2. Policy relating to the Remuneration for the Whole-time Director, MP, Senior Management
Personnel and Other Employees
3.2.1. General:
a) The remuneration / compensation / commission etc. to the Whole-time Director, MP and

Senior Management Personnel will be aligned with the Committee and recommended
to the Board for approval. The remuneration / compensation / commission etc. shall
be subject to the prior/post approval of the shareholders of the Company and Central
Government, wherever required.
b) The remuneration and commission to be paid to the Whole-time Director shall be in

accordance with the percentage / slabs / conditions laid down in the Articles of Association
of the Company if any and as per the provisions of the Act.
c) Increments to the existing remuneration/ compensation structure may be recommended

by the Committee to the Board which should be within the slabs approved by the
shareholders in the case of Whole-time Director wherever required.

d) The remuneration/compensation to other employees will be determined as per the
Company HR policies and will be in line with Company’s performance considering
overall Indian market trends from time to time. The extent of overall remuneration should
be sufficient to attract and retain talented and qualified individuals suitable for every role.
Further, the remuneration/compensation shall be fixed pay or a mix of fixed and variable
pay depending on role of the respective employee. Remuneration may also contain
such other cash or non-cash perquisites or components or grants or such other benefits
permissible under various regulatory requirements from time to time.
e) Where any insurance is taken by the Company on behalf of its Whole-time Director, Chief
Executive Officer, Chief Financial Officer, Company Secretary and any other employees
for indemnifying them against any liability, the premium paid on such insurance shall not
be treated as part of the remuneration payable to any such personnel. Provided that if
such person is proved to be guilty, the premium paid on such insurance shall be treated
as part of the remuneration.
3.2.2. Remuneration to Whole-time / Executiv e / Managing Director, K MP and Senior

Management Personnel:
a) Ov erall Remuneration:
The remuneration is divided into fixed pay, variable pay mandatory / voluntary
retirement benefits. The division is based on fixed pay and variable pay component as
per the respective grade. Mandatory / voluntary retirement benefits are applicable to all.
The Whole-time Director/ MP and Senior Management Personnel shall be eligible for
a monthly remuneration as may be approved by the Board on the recommendation of
the Committee. The breakup of the pay scale and quantum of perquisites including,
employer’s contribution to PF, pension scheme, medical expenses, club fees etc. shall
be decided and approved by the Board/ the Person authorized by the Board on the
recommendation of the Committee and approved by the shareholders and Central
Government, wherever required.
Over and above the fixed and variable component the Whole-time Director/ MP
and Senior Management Personnel may also be eligible for other cash or non-cash
perquisites or grants or components or such other benefits as per company policies and
as permissible under various regulatory requirements from time to time.
b) Minimum Remuneration:
If, in any financial year, the Company has no profits or its profits are inadequate, the
Company shall pay remuneration to its Whole-time Director in accordance with the
provisions of Schedule V of the Act.
c) Provisions for excess remuneration:
If any Whole-time Director draws or receives, directly or indirectly by way of remuneration

any such sums in excess of the limits prescribed under the Act, he / she shall refund
such sums to the Company and until such sum is refunded, hold it in trust for the
Company. The Company shall not waive recovery of such sum refundable to it.

3.2.3. Remuneration to Non-Executiv e / Independent Director:
a) Remuneration / Commission:
The remuneration / commission shall be fixed as per the slabs and conditions mentioned
in the Articles of Association of the Company, if any, and the Act.
b) Sitting Fees:
The Non-Executive / Independent Director may receive remuneration by way of fees for
attending meetings of Board or Committee thereof. Provided that the amount of such
fees shall not exceed Rs. One Lac per meeting of the Board or Committee or such
amount as may be prescribed by the Central Government from time to time.
c) Commission:
Commission may be paid within the monetary limit approved by shareholders, subject to
the limit not exceeding 1% of the profits of the Company computed as per the applicable
provisions of the Act.
d) Stock Options:
An Independent Director shall not be entitled to any stock option of the Company.
4. BOARD DIVERSITY
Company recognises and embraces the importance of a diverse Board in its success. Company believes
that a truly diverse Board will leverage differences in thoughts, perspective, knowledge, skill, regional and
industry experience, cultural and geographical background, age, ethnicity, race and gender, which will
ensure Company retains its competitive advantage.
Accordingly, the Nomination and Remuneration Committee is responsible for reviewing and assessing
the composition of the Board. The Committee shall:
a) assess the appropriate mix of diversity, skills, experience, and expertise required on the Board and
assess the extent to which the required skills are represented on the Board;
b) make recommendations to the Board in relation to appointments, and maintain an appropriate mix
of diversity, skills, experience, and expertise on the Board; and
c) report to the Board, if any requirement, in relation to the diversity of the Board.
5. REVIEW/ AMENDMENT:
The Committee is authorized to review, amend or modify this Policy, in whole or in part, as and when
deemed necessary in line with the applicable laws, rules and regulations (“applicable laws”). Any
amendment in the regulatory requirements shall be binding on the Company and shall prevail over this
Policy even if not incorporated in the Policy. In any circumstance where the terms of the Policy differ from
any applicable law for the time being in force, the provisions of such applicable law shall take precedence
over the Policy.
Approved By: Board of Directors

Original Date of Approval: August 01, 2014
Last Modified Date: February 0 , 2023
Effective Date: February 0 , 2023

Annexure 9 – DIVIDEND DISTRIBUTION POLICY
Introduction
This Dividend Distribution Policy (hereinafter referred to as “the Policy”) has been adopted by the Board
of Directors of Cummins India Limited (hereinafter referred to as “the Company”) in the meeting held on
February 1, 2017, pursuant to Regulation 43A of Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) (Second Amendment) Regulations, 2016 (hereinafter referred to as “the SEBI
Regulations”).
Div idend
Dividend means distribution of profits, earned in the current year or earlier years, by the Company, to its
shareholders in proportion to the amount paid-up on shares held by them. Under Companies Act, 2013 (the
“Act”), a Company can either declare dividend during the year, which is called interim dividend, or can declare
dividend after the end of financial year, which is called final dividend.
Interim dividend can be declared by the Board of Directors during the financial year by passing a resolution
at its meeting. Final dividend is recommended by the Board of Directors for approval by the shareholders at
the annual general meeting. This Policy applies to declaration of interim dividend and recommendation of final
dividend by the Board.
The dividend for any financial year shall normally be paid:
out of the profits for the year (arrived at after providing for depreciation in accordance with law and
transferring such amount to reserves as may be considered appropriate by the Board of Directors of the
Company); and/or
out of accumulated profits of any previous financial year(s) in accordance with provisions of the Act and
Regulations, as applicable.
Factors affecting dividend declaration
The Board of Directors considers the following factors while arriving at the dividend amount:
internal factors
profits earned during the year

distributable surplus available with the Company
Company’s liquidity position, future cash flow requirements for operations and reserve for any
contingencies
capital expenditure requirements for expansion and growth
history of dividends distributed by the Company
loan covenants, if any
external factors
dividends distributed by other comparable companies

• taxation policy and any amendments expected thereof
cost and availability of alternative sources of financing
• state of economy and nature of industry

• macroeconomic and business conditions in general
any other relevant factors that the Board may deem fit
Utilisation of retained earnings
The portion of profits not distributed among the shareholders as dividends are used for the business activities
of the Company.
Review & modification
The Board is authorised to change or modify this Policy from time to time at its sole discretion and/or in
pursuance of any amendments made by any relevant law for the time being in force.
Disclaimer
This Policy shall not be construed as a solicitation for investments in the Company’s securities and shall
neither act as an assurance of guaranteed returns (in any form), on investments in the Company’s securities.

Annexure 10 – INFORMATION AS REQUIRED UNDER THE PROVISIONS OF SECTION

197( 12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5( 1) OF THE COMPANIES
( APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) AMENDMENT
RULES, 2016
1. Remuneration paid to the Directors: -
a. As on March 31, 2024, the Board of Directors of the Company consists of 1 Promoter (Executive)
Director, 3 Promoter (Non-Executive) Directors and 5 Independent (Non-Executive) Directors.
b. Details of remuneration paid to Managing Director of the Company:

( In Crores)
Sitting Salary Com- House Gas/ Medical Other Total
fees mission rent Elect./ Benefits
Water
Mr. Ashwath Ram
2023-24 -- 6.23 -- -- -- -- -- 6.23
% increase in
remuneration As per below note#
during the FY
This value includes stock options of Holding Company. Further, liability for post-employment
benefits, other long-term benefits, termination benefits and certain short-term benefits such as
compensated absences is provided on an actuarial basis for the Company as a whole. Accordingly,
the amount for above pertaining to Mr. Ashwath Ram is not ascertainable and, therefore, not
included above.
# The percentage increase includes merit increase of 20% p.a. effective April 01, 2023 and off cycle
market adjustment of 10% p.a. effective October 01, 2023 computed basis actual increment on the
guaranteed cash component.
In addition to the remuneration mentioned above, Mr. Ashwath Ram will also receive additional
compensation from Cummins Inc. towards his role as Vice President - Global Supply Chain Function.
c. Details of Sitting Fees and Commission to Non-Executive Independent Directors for the period April
01, 2023 to March 31, 2024:
(Amount in )
FY 2022-23 FY 2023-24 % increase
Name of the Sitting Annual Total Sitting Annual Total in remuner-
Director fees Commis- fees Commis- ation ov er
sion sion 2023-24
Mr. Nasser Munjee ,50,000 15,00,000 23,50,000 ,25,000 15,00,000 23,25,000 -

Mr. P. S. Dasgupta 1
9,00,000 15,00,000 24,00,000 NIL 2,21,774 2,21,774 -
Mr. Rajeev Bakshi 9,00,000 15,00,000 24,00,000 9,00,000 15,00,000 24,00,000 -
Ms. Rama Bijapurkar ,00,000 15,00,000 23,00,000 9,00,000 15,00,000 24,00,000 -
Ms. Rekha 3,00,000 9,59,677 12,59,677 3,50,000 15,00,000 1 ,50,000 -
Ms. Lira Goswami2 NA NA NA ,25,000 12, 2,25 21,07,25 -

1
Mr. P.S. Dasgupta resigned as Director (Non-Executive and Independent) of the Company effective
close of business hours of May 24, 2023 on account of professional exigencies.
2
Ms. Lira Goswami was appointed by the Board as an Additional Director (Non-Executive and
Independent) of the Company effective May 24, 2023 and regularized as a Director (Non-Executive
and Independent) of the Company in 62nd Annual General Meeting of the Company held on August
03, 2023, for her first term of five (5) consecutive years effective from May 24, 2023 to May 23, 202 .
d. Other details:
- The median remuneration of employees of the Company during the F 2023-24 was
, 7,462/-.
- The ratio of the remuneration of each Director to the median remuneration of the employees of
the Company for the Financial ear 2023-24:
Name of Directors Designation Ratio of remuneration to MRE*

Mr. Steven Chapman 1
Chairman of the Board -
Ms. ennifer Mary Bush2 Chairperson of the Board -
Mr. Ashwath Ram Managing Director 70.16
Mr. Nasser Munjee Independent Director 2.62
Mr. P.S. Dasgupta 3
Independent Director 0.25
Mr. Rajeev Bakshi Independent Director 2.70
Ms. Rama Bijapurkar Independent Director 2.70
Ms. Rekha Independent Director 2.0
Ms. Lira Goswami 4
Independent Director 2.37
Mr. Donald ackson Non-Executive Director -
Ms. Bonnie ean Fetch Non-Executive Director -
* MRE – Median Remuneration of employees , 7,462/- with ratio rounded-off to two

decimals.
1
Mr. Steven Chapman resigned as a Chairman, Non-Executive and Non-Independent Director
of the Company effective from close of business hours of September 30, 2023, on account of
pre-occupation and other personal reasons.
2
2023.
3
Mr. P.S. Dasgupta resigned as Director (Non-Executive and Independent) of the Company
effective close of business hours of May 24, 2023 on account of professional exigencies.
4
and Independent) of the Company effective May 24, 2023 and regularized as a Director (Non-
Executive and Independent) of the Company in 62nd Annual General Meeting of the Company
held on August 03, 2023, for her first term of five (5) consecutive years effective from May 24,
2023 to May 23, 202 .

- Percentage increase in remuneration of ey Managerial Personnel (Chief Financial Officer
and Company Secretary) in the Financial ear 2023-24:
( in Crores)
Name & Designation of other MP Remuneration % increase in remuneration
2023-24 ov er 2022-23#
Mr. Ajay S. Patil, Chief Financial Officer 4.15 12.50%
Ms. Vinaya oshi, Company Secretary 0.36 12.50%
#
The percentage increase in remuneration is computed based on actual increment on the
guaranteed cash component effective April 01, 2023.
This value includes stock options of Holding Company. Further, liability for post employment
benefits, other long-term benefits, termination benefits and certain short-term benefits such
as compensated absences is provided on an actuarial basis for the Company as a whole.
Accordingly, the amount for above pertaining to Mr. Ajay S. Patil and Ms. Vinaya oshi is not
ascertainable and, therefore, not included above.
- In the Financial ear, there was an increase of 12.50% in the median remuneration of employees
and the ey Managerial Personnel excluding Managing Director. This was effective April 01,
2023.
- Average percentage increase already made in the salaries of employees other than the
managerial personnel in the last financial year and its comparison with the percentage
increase in the managerial remuneration and justification thereof including any exceptional
circumstances for increase in the managerial remuneration.
The average percentage increase for ey Managerial Personnel: 15%
The average percentage increase of employees other than the managerial personnel:
12.40%
The average percentage increase in the salaries is primarily on account of market

movement-based increase in salaries.
- There were 3,073 permanent employees on the rolls of Company as on March 31, 2024.
- The Profit before Exceptional Items and Tax for the Financial ear ended March 31, 2024
increased by 42% whereas the % increase in median remuneration of the employees as well
as the ey Managerial Personnel (excluding Managing Director) was 12.50%.
- It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors,
ey Managerial Personnel and other employees.

Annexure 11 – ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY ( CSR)

ACTIVITIES
Pursuant to Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility
Policy) Rules 2014, as amended from time to time
1. Brief outline on Corporate Social Responsibility (CSR) Policy of the Company:
Corporate citizenship is a natural extension of the Company’s values and personality. For a brand that
is all about dependability, your Company recognizes the symbiotic relationship between the various
stakeholders to strengthen communities. our Company clearly recognizes the long-term benefits of such
an association over tangible results in the short-term, and strongly believes that the spend of contribution
in all CSR activities would always depend on identifying the right projects, preferably in the local area in
which your Company operates.
The CSR initiatives of your Company are predominantly implemented through Cummins India Foundation
(‘the Foundation’ or ‘CIF’), a Public Charitable Trust registered under inter-alia the Bombay Public Trusts
Act,1950 (now known as The Maharashtra Public Trusts Act,1950) and the Income-Tax Act, 1961. CIF is
also registered with Ministry of Corporate Affairs (MCA), Government of India as an implementing agency
for undertaking CSR activities.
The CSR initiatives are aligned to the mission of ‘serving and improving the communities in which we
live’. The projects undertaken are within the broad framework of Schedule VII of the Companies Act,
2013 (‘the Act’).
our Company is focused on working on projects that have a high impact on the communities in which we
live and operate. The three focus areas include higher education, energy and environment and equality
of opportunity, across all your Company’s locations. In addition, your Company is also actively involved in
key strategic projects for instance Cummins Powers Women, Cleaner Air Better Life, Monsoon Resilient
Maharashtra, and Phaltan Model Town under the CSR umbrella.
Additionally, your Company is committed to the active involvement and participation of its employees in
its corporate social responsibility initiatives through the Company’s ‘Every Employee Every Community
initiative’ (‘EEEC’), where each employee is encouraged to dedicate a minimum of four working hours
towards any of the projects undertaken under three broad focus areas or strategic projects.
CSR Policy and Projects:
The Committee has formulated a CSR Policy inter-alia indicating the CSR activities to be undertaken by
your Company as per the Companies Act, 2013. The Committee reviews and recommends the amount
of expenditure and CSR activities to be undertaken by your Company. The Committee also monitors
the implementation of the CSR Policy of your Company from time to time. Details of the Policy of your
Company are available at https://www.cummins.com/en/in/investors/india-corporate-governance.
Details of various CSR initiatives undertaken by your Company are provided in this report and in the
Business Responsibility and Sustainability Report of the Company for F 2023-24 and are also available at
https://www.cummins.com/en/in/company/corporate-responsibility/global-impact/cummins-india-foundation.

2. Composition of CSR Committee:
Sr. Name of Director Designation / Nature of Number of Number of

No. Directorship meetings of meetings of CSR
CSR Committee Committee
held attended during
during the year the year
1 Ms. Rama Bijapurkar1 Chairperson of the Committee 4 4
(Independent Director)
2 Mr. Nasser Munjee2 Member (Independent Director) 4 3
3 Ms. Bonnie ean Fetch 1
Member (Independent Director) 3 3
5 Mr. Ashwath Ram Member (Managing Director) 4 4
1
Ms. Rama Bijapurkar, Member, was appointed as a Chairperson of the CSR Committee and Ms. Bonnie
Fetch was appointed as a Member of the CSR Committee, effective from May 25, 2023.
2
Mr. Nasser Munjee has ceased to be a Member of the Corporate Social Responsibility Committee
effective May 30, 2024. Mr. Farokh N. Subedar and Ms. Rekha were appointed as Members of the said
Further details and terms of reference of the CSR Committee are given in the Corporate Governance
Report, which forms a part of the Annual Report.
3. Weblink where composition of CSR Committee, CSR Policy and CSR projects approved by the
Board are disclosed on the website of the Company:
https://www.cummins.com/en/in/investors/india-corporate-governance
4. Provide the executive summary along with web-link(s) of impact assessment of CSR Projects
carried out in pursuance of sub-rule (3) of Rule 8, if applicable.
During the year under review, the impact assessment of one of the projects ‘Monsoon Resilient
Maharashtra’ under the theme ‘Strategic Projects’ in Maharashtra was undertaken by an independent
agency, Deloitte Touche Tohmatsu India LLP (Deloitte) engaged by the Company. Detailed Report can be
accessed on the website at https://www.cummins.com/en/in/investors/india-annual-reports.
A brief summary of the aforesaid impact assessment is given herein below:
our Company along with Cummins Group Companies in India (collectively referred as ‘Cummins’)
through Cummins India Foundation, was jointly running ‘Monsoon Resilient Maharashtra’ (MRM) project,
as part of its broader ‘Participatory Watershed Development and Ground Water Management Project’,
which began in 201 and has benefitted more than 59,000 lives in 40 villages located in the Man Taluka
of Satara in state of Maharashtra for construction of rainwater harvesting structures, promotion of water
utilization and management practices, support in sustainable agriculture, create livelihood opportunities
through livestock, enhance community capacity, foster entrepreneurship, and promote the adoption of
renewable energy sources.
Impact of olistic Rural Development Programme:
1. Around 59,970 lives were impacted directly and indirectly through MRM initiative;
2. 247 gabions were constructed in 23 villages covering almost 3 3 direct beneficiaries which helped
villages in controlling the flow of water and soil runoff at the elevation point;

3. 7,910 trees were planted in 5 villages covering an area of 37 Acres;
4. More than 60% of the beneficiaries reported that due to the creation of watershed structures the
proportion of wasteland has reduced leading to availability of more fertile land for crop farming;
5. 30% of the beneficiaries confirmed producing additional crops specially cash crops such as
sugarcane, onion, mango, and pomegranate;
6. More than half of beneficiaries confirmed that due to increased agricultural production there has
been availability of additional produce for sale leading to increase in their income;
7. 40% beneficiaries adopted water budgeting and drip irrigation thereby saving on expenses incurred
during farming;
. 0% beneficiaries received capacity building trainings under the project;
9. 50% women beneficiaries attended livestock trainings.
Approach and Methodology:
A mixed-method assessment design was deployed by Deloitte, Impact Assessment Agency, for
assessment of the impact that the programme has created. This predominantly focused on primary data
collection through field visits and was supplemented/ triangulated with the help of relevant secondary
data and knowledge as available.
Structured quantitative surveys were undertaken with 404 community members randomly sampled from
the 14 villages in Man Taluka of Satara district, which involved 265 survey interviews along with 19 focus
group discussions and key informant interviews with 21 stakeholders.
During their interactions with the beneficiaries, the research team collected data on various aspects,
including watershed management, income-generating activities both in farming and non-farming sectors,
income levels, saving patterns, credit-seeking behaviour, household possessions. Additionally, the team
physically verified the status of 1 structures that had been constructed to glean in-depth perspectives
of the programme benefits.
Support prov ided under the programme:
The MRM project operates on a year-long implementation model, where new villages were identified
every year and following support was provided every year to address water-related challenges:
1. Development of watershed activities on existing structures;

2. Surface area treatment like Deep continuous contour trenches (CCT), Farm bunding;
3. Drainage line treatment such as desilting and gabion structures;
4. Support in establishing Farm Field Schools (FFS), Organic farming, Dairy, Back-yard poultry, Biogas
production units and production of organic fertilizers, pesticide and vermicompost;
5. Community capacity building on agriculture and livestock management.

The programme had wide-ranging positive impact on the villages surveyed.
Sr. No. Particulars (Amount in )

5. ( a) Average net profit of the company as per sub-section (5) of Section 135 10,003,72 ,03
( b) Two percent of average net profit of the company as per sub-section (5) of 200,074,561
Section 135
( c) Surplus arising out of the CSR projects or programmes or activities of the Nil
previous Financial ear
( d) Amount required to be set off for the Financial ear, if any Nil
( e) Total CSR obligation for the Financial ear (b)+(c)-(d) 200,074,561
6. ( a) Amount spent on CSR Projects ( both Ongoing Project and other than Ongoing Project) :
159,4 4,699/-
( b) Amount spent in Administrativ e Ov erheads: 3,03 ,044/- (Amount was spent by CIF)
(c) Amount spent on Impact Assessment, if applicable: 2 ,531/-
(d) Total amount spent for the Financial ear (a) + (b) + (c) : 163,351,274/-
(e) CSR amount spent or unspent for the Financial ear:
Total Amount Amount unspent (in )

spent for the Total Amount transferred to Amount transferred to any fund
Financial Year Unspent CSR Account as per specified under Schedule VII as per
(in ) Section 135( 6) second prov iso to Section 135( 5)
Amount Date of Transfer Name of the Amount Date of
Fund Transfer
163,351,274* 36,723,2 7 April 23, 2024 NA NA NA
* Note: Pursuant to Section 135 of the Companies Act, 2013 and Rules made thereunder, the
Company had CSR obligation of ₹ 200,074,561/- for Financial Year 2023-24 which was fully
contributed to CIF. After spend of ₹ 163,351,274/- on ongoing projects including administrative
expenditure of ₹ 3,038,044/- and ₹ 828,531/- towards impact assessment, CIF had unspent amount
of ₹ 3,67,23,287/- as on March 31, 2024, which had been transferred back by CIF to the Company.
The said unspent amount has also been transferred by the Company to a separate bank account in
the name of ‘CUMMINS INDIA LTD UCSR FY 2023-2024’ on April 23, 2024, as per Section 135(6)
of the Companies Act, 2013 read with the MCA General Circular 14/2021 dated August 25, 2021.
(f) Excess amount for set off, if any:
Sr. No. Particulars Amount (in )

( i) Two percent of average net profit of the company as per Section 200,074,561
135(5)
( ii) Total amount spent for the Financial ear 163,351,274
( iii) Excess amount spent for the Financial ear (ii)-(i)
( iv ) Surplus arising out of the CSR projects or programmes or activities
of the previous Financial ears, if any Not Applicable
(v ) Amount available for set off in succeeding Financial ears
(iii)-(iv)

7. Details of Unspent CSR amount for the preceding three Financial ears:
1 2 3 4 5 6 7 8
Sr. Preceding Amount Balance Amount Amount transferred Amount Deficiency,
No. Financial transferred Amount in Spent in the to a Fund as remaining if any
Year( s) to Unspent Unspent Financial specified under to be
CSR CSR ear (in ) Schedule VII as per spent in
Account Account second prov iso to succeeding
under sub- under sub- sub-section (5) of Financial
section (6) of section (6) of section 135, if any Years
Section 135 Section 135 Amount Date of (in )
(in ) (in ) (in ) Transfer
1 F -1: 15,472,700* 0 15,472,700* Not Applicable Not 0
2022-23 Applicable
2 F -2: 39,239, 47 0 39,239, 47 Not Applicable Not 0
2021-22 Applicable
3 F -3: NIL Not Applicable
2020-21
* Note: CIF had unspent amount of ₹ 15,472,700/- as on March 31, 2023, which was transferred back
by CIF to the Company. The Company had opened a separate bank account in the name of ‘CUMMINS-
INDIA LTD UCSR FY 22-23’ (‘CSR Unspent Account 22-23’) and transferred the unspent amount to said
bank account on April 19, 2023. During the year depending on the project requirements, the Company
had disbursed amount from CSR Unspent Account 22-23 to CIF. Further, CIF had spent this entire
unspent amount of ₹ 15,472,700/- in Financial Year 2023-24 towards ongoing projects.
8. Whether any capital assets have been created or acquired through Corporate Social Responsibility
amount spent in the Financial Year: Not Applicable
9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as
per Section 135( 5) :
During the year under review, the Company was required to spend 200,074,561/- in accordance with
Section 135(1) of the Companies Act, 2013. Out of the same, the Company had spent 163,351,274/-
on the ongoing CSR projects during the Financial ear through its implementing agency, Cummins India
Foundation (‘CIF’). The unspent amount of 36,723,2 7/- was transferred to the unspent account as is
mandated under the Act and is allocated to the ongoing CSR projects. These projects will continue to be
implemented in Financial ear 2024-25 and onwards as per statutory provisions applicable in this behalf.
Further, during the year, CIF had also spent the entire amount 15,472,700/- from the Unspent CSR
Account for the F 2022-23 that had been opened by the Company. The said unspent account was
closed in F 2023-24.
Due to practical and on ground challenges in scaling up the projects, the aforementioned amount of
36,723,2 7/- was unspent and has been transferred to the unspent account opened by the Company.
The Company reiterates its commitment to discharge its CSR obligation and shall continue to implement
meaningful CSR projects in the CSR areas in accordance with its CSR Policy.
10. Detailed CSR Initiativ es:
Addressing the social, civic and environmental issues, your Company made significant contributions
in Financial ear 2023-24 with projects on Education, Rural Development, Watershed Management,
Afforestation, Solid Waste Management, Scholarship Program, Cummins Powers Women and Monsoon
Resilient Maharashtra. Following are the details of some of these key projects:

Higher Education
Nurturing Brilliance: In 2006, Cummins India Foundation (CIF) initiated the ‘Cummins Scholarship:
Nurturing Brilliance’ for meritorious students from financially and socially disadvantaged backgrounds
to pursue professional degree and diploma (in Engineering) courses. Cummins provides mentoring to
selected students by senior Cummins employees who mentor students throughout the entire duration
of the course. Additionally, Cummins facilitates improving of students’ soft skills by providing students
with e-learning soft skills module. During F 2023-24, the Company supported 229 students under this
program. Additionally, this year your Company expanded the program to aspirational districts in India-
Vidisha, Guna in Madhya Pradesh, Ranchi in harkhand, and Dharashiv in Maharashtra.
Technical Education for Communities (TEC) is Cummins global initiative that aims at bridging the
technical skills gap (between training provided by educational partner and local industry requirements)
through local vocational education programs. It delivers a standardized education platform to help
education partners develop market relevant curriculum, train teachers, provide career guidance and
secure on-the-job learning opportunities for students. Cummins TEC focuses on enhancing the
employability of the students. In F 2023-24, total number of 544 students were trained at two TEC sites
in India (Phaltan and olhapur SMA ).
Cummins College of Engineering for Women (CCEW) was conceptualized and launched in 1991
in Pune with financial support of Cummins India Foundation in partnership with Maharshi arve Stree
Shikshan Samstha. In 2010, CCEW was launched in Nagpur, Maharashtra. The objective is to support
CCEW to be a globally renowned institute for imparting quality education and to develop women leaders
in engineering and technology. The support provided to CCEW is across the three pillars of infrastructure
development, student development and faculty development. Cummins’ senior executives are also
deeply involved in this signature project, frequently interacting with the staff and students. With support
from Cummins, CCEW Pune has received NAAC ‘A’ accreditation and CCEW Nagpur has received
NAAC ‘B’ accreditation. In F 2023-24, more than 750 girls benefitted from the support.
Energy and Env ironment
Organic Waste Management: Building year-round initiatives from successful programs on festival waste
processing - Our Nirmalya and Patravali programs over multiple years addressed the waste generated
during two major festivals that took place every year in the state of Maharashtra. The Nirmalya project
is a multi-dimensional, multi-stakeholder level project that involves months of planning, logistics and
coordination during the annual Ganesh festival. Cummins helped Pune Municipal Corporation (PMC) to
establish decentralized Nirmalya segregation collection process and centralized unit for composting.
Cummins has also established value chain for organic compost generated from Nirmalya benefiting to
marginalized farmers PMC Gardens across the city. In F 2023-24, more than 2 Lac citizens were
made aware, 236 Tons of Nirmalya was converted into organic compost. Implementation partners
supported by Cummins created awareness in 30 immersion ghats where more than 50,000 Ganesh idols
got immersed at home.
Z ero Waste Slum Project: The project aims at strengthening the existing waste management system
and make the communities zero waste communities. The approach of the project is based on pillars
like, awareness regarding segregation of waste at source, collection of waste scientific disposal of
the waste and change in mind set to keep the surrounding clean healthy. With continuous focus on
monitoring implementing health safety measures for waste pickers with our intervention through
different initiatives, door to door coverage maintained at 7% and 5 major chronic spots in the area have
been eliminated. Cummins work with NGO partners with focus on community participation to take the
responsibility to make keep the community clean healthy to live impacting more than 4,000 residents
from the low-income community.
Afforestation: Rapid urbanization has resulted into vastly depleting green cover for the city. With
growing demands of residential and commercial spaces, the green localities are now being converted

into concrete building, resulting into multiple hillocks around the city of Pune which have been serving
as green lungs, are being deforested and encroached. The project aims at sustainable tree plantation
and sustenance towards achieving the goal of increasing the green cover across all our manufacturing
and office locations in the country. Cummins has acted as the catalyst for forming a cluster of NGOs with
a common goal and helped share best practices on planting and maintaining trees. This project also
aims to address the effects of climate change. Tree cover plays a vital role in restoring and maintaining
the ecological balance. Increased efforts in afforestation, will over a time result in balancing the water
table, stabilizing climate, attracting rains, preserving wild-life and replenishing soil nutrients. Ensuring
plantation of native trees and water management for their sustenance, Cummins has been working
on 3 hills, 1 dam 6 lake area for eco system development since 2011. Voluntary third-party impact
assessment was conducted for Pune Afforestation sites. The impact assessment highlighted the project
sites as thriving area for biodiversity with multiple species of flora and fauna. In the year 2023, more than
11,500 trees were planted and sustained. All sites saw deep partnerships with subject matter experts,
local community, forest department, and defense organizations. Along with planting and maintaining the
trees, we also have continuously achieved a survival rate of 90% for all the trees planted by us till date.
Water Neutrality: India is grappling with severe water stress, with 54% its boundary experiencing high to
extremely high levels of water stress. The impacts of climate change, manifested in erratic rainfall patterns
and the heat island effect, further exacerbate this situation. Urbanization also plays a significant role in
intensifying water stress by placing strain on infrastructure and depleting both surface and groundwater
resources. The rapid expansion of urban areas has also led to extensive deforestation, resulting in
soil erosion and the siltation of water bodies, thereby diminishing their storage capacities. Therefore,
integrated water management has become a pivotal aspect of Cummins’ Energy and Environment
Initiatives in India. These initiatives adopt a scientific approach, incorporating elements of hydrogeology,
local topography, biodiversity, and addressing local needs and challenges to formulate sustainable, long-
term strategies. ey focus includes enhancing storage capacity, promoting water conservation, mitigating
water pollution, and raising awareness while supporting biodiversity conservation efforts. In F 2023-24,
1 new pond was created at a site in Pune, and a new open well was dug at an educational campus in
Pune. Approximately 1.4 km of stretch was desilted at hadakwasla Dam. In F 2023-24, more than 900
Mn Gallons of water was conserved through the desilting and storage efforts.
Clean technology: Globally we are experiencing warmer temperatures, changing weather patterns which
is disturbing the usual pattern of the nature. There is a need for products and services which are ‘clean’ to
reduce or optimize the use of natural resources, as well as reduce the negative effect on the planet. With
the aim to building healthier, cleaner, resilient, and sustainable communities, Cummins supports tech-
based solutions which are innovative, are towards protecting and enhancing the environment. We partner
with incubation centres in India to support early-stage start-ups in the space of energy and environment
by providing initial funding. This program was initiated in F 2020-21 and in F 2023-24 has supported
3 start-ups in the space of water pollution and wastewater treatment, circular economy, sustainable
mobility, clean energy, etc.
Equality of Opportunity
Local Community Care with its comprehensive approach towards serving the underprivileged and
marginalized, Cummins has collaborated with organizations focused on disadvantaged sections of
society such as the visually impaired, hearing impaired, elderly residents, orphaned children, tribal girls,
and more. These collaborations aim to enhance the infrastructure and safety standards of NGO premises
through activities like building construction and repair, upgrading facilities such as kitchens, toilets, and
dormitories, conducting safety audits, ensuring proper electrical fittings, and implementing cost-saving
measures like installing solar power units and establishing kitchen gardens.
During the F 2023-24, Cummins extended its support to four NGOs, benefiting a total of 404 direct
beneficiaries. The primary focus of this year’s initiatives has been on leveraging assistive technology
and incorporating digital solutions. As part of this effort, a pilot project introducing AI-powered smart
glasses was implemented in an institution supporting visually impaired girls. These smart glasses enable

individuals with visual impairments to interpret images through AI descriptions, significantly enhancing
their daily lives.
Additionally, Cummins assisted an orphanage in establishing a computer lab to enhance computer

literacy among orphaned girls, further contributing to their educational and vocational opportunities.
Rural Dev elopment: Cummins commitment towards holistic rural development has touched the lives of
people in 17 villages in 2023. The program was expanded to the aspirational district of Nandurbar. This
program has benefitted more than 3 ,000 lives in rural areas.
As part of the water conservation initiatives in the villages, more than 300 Mn Gallons of water has
been conserved through check dams, desilted of natural water streams, ponds and percolation tanks. To
provide access to clean and safe drinking water, Cummins installed 4 units of water purification plants
and water ATMs. Water ATMs being run and maintained by women Self Help Groups have provided
additional income opportunity to 40 women in villages.
Cummins continued support for improving school infrastructure in villages. More than 12 schools in
model villages are being upgraded with Cummins support serving more than 2,400 students every year.
EmpowHer is an initiative for financial inclusion and independence of women in model villages. Under
this program, we launched the initiative “Udgam” at Phaltan Megasite, which aims at creating awareness
about sanitary hygiene, usage of sanitary napkins and enabling entrepreneurship by setting sanitary
pads production machine to produce eco-friendly napkin at lower cost. This successful model has been
replicated other plant locations. Cummins teams actively support and monitor these projects to ensure
ongoing enhancements in production quality, safety, and marketing strategies.
In continuation of these efforts, newer initiatives under EmpowHer have been initiated creating
opportunities for alternative livelihood and income generation options for women in rural areas. 1 1 new
women’s self-help groups have been formed and provided with entrepreneurship training in various fields
such as tailoring, papad and roti making, chick incubation centers, kitchen gardening, poultry farming,
among others. These initiatives have positively impacted over 2,000 women. Furthermore, the initiative
has been extended to the aspirational district of Nandurbar.
Strategic Projects
Monsoon Resilient Maharashtra ( MRM) started with the vision to address the scarcity of water in
Maharashtra, making communities less dependent on Monsoon and resilient to the vagaries thereof.
MRM is a unique model of watershed development which incorporates hydrogeological studies along
with GIS mapping to identify high impact areas for treatment. To ensure sustainability of the project,
MRM focuses on participation and capacity building of the community. To take the project to scale,
collaborations with stakeholders is an essential component of the project. In F 2023-24, MRM was
expanded to a new extremely drought prone region and aspirational district of Dharashiv in Maharashtra.
Under demand side more than 360 farmers were supported to help improve their income. Improved
productivity of more than 30 acres of waste land. More than 100+ women farmers supported to aide
increase income through improved allied activities. Around 100 extremely poor household supported
through goat rearing and poultry units.
Cleaner Air Better Life (CABL) is a collaborative platform where industry, entrepreneurs, governments
and civic society can work together for addressing sources of air pollution. Multi-stakeholder engagements
were undertaken through the year 2017-1 under the four task forces constituted by Cummins and
NITI Aayog in une 2017 (under Cleaner Air Better Life Initiative). Accordingly, action plans have been
designed under this initiative to address identified sources of air pollution with a mission to improve
air quality and therefore contribute to better quality of life across urban and rural India. In F 2023-24
Cleaner Air Better Life continued its expansion in both urban initiatives and crop residue management
while expanding its reach to 216 villages in the state of Punjab and Haryana covering around more

than 2 lakhs ha of farmland and more than 43,000 farmers. CABL added Pune under its urban airshed
management initiative to help improve the air quality of the city along with its sustained work in Indore
metropolitan region. Collectively more than 2 lakhs MT of greenhouse gases has been avoided.
Cummins Powers Women: Cummins Powers Women partners with a network of global nonprofit
organizations that have existing, outcome-based programs focused on areas where significant barriers
exist to the advancement of girls and women. Cummins’ investment supports a range of effective
programs, including grassroots teaching and mentoring, financial stability through entrepreneurship,
leadership training and strategic guidance to non-profit leaders. The program was initiated in India since
2019 and three gender equity initiatives were launched with our global non-profit partner, Rise Up.
Phaltan Town Dev elopment project was conceived with a vision to make Phaltan the best town to
live and work in its category and size in India. The interventions in Phaltan are organized under three
overarching categories aimed at developing the town into a ‘Clean, Green, and Smart’ urban town. The
initiatives under clean town focus on solid waste and sanitation facility improvements in the town, the
work under green town focuses on creating green lungs and green spots within the town and the work
under smart town focuses on smart infrastructure for the town and schools. Along with this, the focus is
also on improving the public infrastructure of the town like roads, internal lanes, bus stops, markets, etc.
The town has witnessed a substantial enhancement in cleanliness and sanitation facilities, reflected
in the notable improvement of the Swachh Sarvekshan ranking from 264 to 29 and Mazi Vasundhara
from 9 to 24. Efforts to divert 1,369 tons of waste annually from landfills and integrate 40 informal
sector workers have led to a significant expansion of street sweeping and waste collection services,
now covering ,250 households. Civil infrastructure upgrade was done in three municipal schools have
benefited 400+ students, encompassing safety walls, improved floors, playgrounds, and enhanced toilet
facilities. Smart school initiatives, including digital infrastructure like smart TVs, screens, and CCTV
camera installations, have been implemented, benefiting 600+ students across four municipal schools
and establishing a reading plaza. The completion of landscape and infrastructure maintenance for a
forest garden spanning 25,000+ sq mtr is a significant accomplishment. To enhance the forest garden’s
educational and recreational value, a knowledge park was established, featuring sections on environment,
energy, traffic, and career development.
Responsibility Statement of the CSR Committee:
In pursuance of the provisions of Section 135 of the Companies Act, 2013 read with Rule of the
Companies (CSR Policy) Rules, 2014 and amendments thereto, it is stated on behalf of the CSR
Committee of the Board of Directors of your Company that the implementation and monitoring of CSR
Policy, is in compliance with CSR objectives and Policy of the Company for the Financial ear 2023-24.
ennifer Mary Bush Ashwath Ram Rama Bijapurkar

Chairperson Managing Director Chairperson of
the CSR
Place : Pune Committee
Date : May 29, 2024 DIN: 09777114 DIN: 00149501 DIN: 00012552
Place: Indiana, USA

Annexure 12 – BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT ( BRSR)

FY 2023-24
SECTION A: GENERAL DISCLOSURES
I. Details of the listed entity
1. Corporate Identity Number (CIN) of the Listed Entity: L29112PN1962PLC012276

2. Name of the Listed Entity: Cummins India Limited
3. ear of incorporation: 1962
4. Registered office address: Cummins India Office Campus, Tower A, 5th Floor, Survey No. 21,
Balewadi Pune, 411045, Maharashtra, India
5. Corporate address: Cummins India Office Campus, Tower A, 5th Floor, Survey No. 21, Balewadi
Pune, 411045, Maharashtra, India
6. E-mail: cil.investors cummins.com
7. Telephone: +91 20 67067000
. Website: www.cumminsindia.com
9. Financial year for which reporting is being done: April 1, 2023 - March 31, 2024
10. Name of the Stock Exchange(s) where shares are listed: BSE Limited and National Stock Exchange
of India Limited
11. Paid-up Capital: 55.44 Crore
12. Name and contact details (telephone, e-mail address) of the person who may be contacted in case
of any queries on the BRSR report:
Name: Ms. Vinaya oshi
Designation: Company Secretary
Telephone: 020 6706 7000
E-mail id: cil.investors cummins.com
13. Reporting boundary: Are the disclosures under this report made on a standalone basis (i.e., only
for the entity) or on a consolidated basis (i.e., for the entity and all the entities which form a part of
its consolidated financial statements, taken together): Standalone basis
14. Name of assurance provider: Price Waterhouse Co Chartered Accountants LLP
15. Type of assurance obtained: Reasonable Assurance on BRSR Core
II. Products/ serv ices
16. Details of business activities (accounting for 90% of the turnover):
S. Description of Main Activity Description of Business Activity % of Turnover

No. of the entity
1 Manufacturing Electrical equipment, General purpose 96%
and Special purpose machinery and
equipment, Transport equipment

17. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):
S. Product/ Serv ice NIC Code % of total Turnover

No. contributed
1 Internal combustion engine (not vehicle engine), 29112 55%
manufacturing
2 Manufacturing of parts and accessories (engines/ 29113 24%
turbines)
3 Generators/generating sets, manufacturing 31101 17%
III. Operations
1 . Number of locations where plants and/or operations/offices of the entity are situated:
Location Number of plants Number of offices Total

National 6* 17 23
International - - -
* includes 1 warehouse.
19. Markets served by the entity:
a. Number of locations:
Locations Number
National (No. of States) 36 States and Union Territories
International (No. of Countries) 5
b. What is the contribution of exports as a percentage of the total turnover of the entity 17.46%
c. A brief on types of customers:
Cummins India Limited (“Cummins” or “CIL” or “the Company” in this report) serves
customers across all segments and to all types/categories viz., end users, Original Equipment
Manufacturers (OEMs), channel partners, dealers, distributors, retailers, etc. The Company
works closely with a variety of industries including, utility, transportation and infrastructure
customers, serving a range of end customers, including data centers, automotive, power
transmission and distribution.

IV. Employees
20. Details as at the end of Financial ear:
a. Employees and workers (including differently abled):
S. Particulars Total ( A) Male Female

No. No. ( B) % ( B / A) No. ( C) % ( C / A)
EMPLOYEES
1. Permanent (D) 1,257 919 73.1% 33 26.9%
2. Other than Permanent (E) 99 74 74.7% 25 25.3%
3. Total employees ( D + E) 1,356 993 73.2% 363 26. %
WORK ERS
4. Permanent (F) 1, 16 1,507 3.0% 309 17.0%
5. Other than Permanent (G) 1,921 1,779 92.6% 142 7.3%
6. Total workers ( F + G) 3,737 3,2 6 7.9% 451 12.1%
b. Differently abled employees and workers*:
S. Particulars Total ( A) Male Female

No. No. ( B) % ( B / A) No. ( C) % ( C / A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) - - 0% - 0%
2. Other than Permanent (E) - - 0% - 0%
3. Total differently abled - - 0% - 0%
employees ( D + E)
DIFFERENTLY ABLED WORK ERS
4. Permanent (F) 1 1 100% - 0%
5. Other than permanent (G) 2 1 50% 1 50%
6. Total differently abled 3 2 67% 1 33%
workers ( F + G)
* As differently abled is personal information, this data is voluntary for employees to report to
the Company. The above information is based on the disclosures available with the Company.
21. Participation/Inclusion/Representation of women:
Particulars Total ( A) No. and percentage of Females

No. ( B) % ( B / A)
Board of Directors 9 5 55.56%
ey Management Personnel 3 1 33.00%

22. Turnover rate for permanent employees and workers:
(Disclose trends for the past 3 years)
Particulars FY 2023-24 FY 2022-23 FY 2021-22

( Turnov er rate in ( Turnov er rate in ( Turnov er rate in
current FY) prev ious FY) the year prior to the
prev ious FY)
Male Female Total Male Female Total Male Female Total
Permanent 7% 10% % 7% 14% 9% 5% 1 % %
Employees
Permanent 5% 9% 6% 6% 9% 7% 4% 11% 6%
Workers
V. Holding, Subsidiary and Associate Companies ( including joint v entures)
23. (a) Names of holding / subsidiary / associate companies / joint ventures:
S. Name of the holding/ Indicate whether % of shares Does the entity

No. subsidiary/ associate holding/ held by indicated at column
companies/ joint v entures subsidiary/ listed entity A, participate
( A) associate/ joint in the Business
v enture Responsibility
initiatives of the listed
entity? ( Yes/ No)
1. Cummins Inc. Holding Company NA
2. Cummins Sales Service Wholly Owned 100%
Private Limited Subsidiary
3. Valvoline Cummins Private oint Venture 50%
Limited No
4 Cummins Generator Associate 4 .54%
Technologies India Private Company with
Limited control of more
than 20% of total
share capital
The Company had a joint venture by the name of Cummins Research and Technology India Private
Limited (‘CRTI’) with 50% shareholding. The Board of directors of CRTI at its meeting held on March
21, 2016, had decided to cease operations of CRTI. Accordingly, it ceased its operations from April
1, 2016. The shareholders of CRTI, in their extra-ordinary general meeting held on April 1, 2022,
passed a resolution to initiate voluntary winding-up of CRTI under the Companies Act, 2013 and
Insolvency and Bankruptcy Code, 2016. The liquidator, appointed by the shareholders at the extra-
ordinary general meeting, completed all the procedures pertaining to the voluntary winding-up, and
had submitted the dissolution application with the Mumbai Bench of the National Company Law
Tribunal (‘NCLT’) on May 20, 2023. The final order of dissolution (voluntary liquidation) was passed
by the NCLT on December 13, 2023, and accordingly, CRTI ceases to exist.
VI. CSR Details
24. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013 ( es/No): es
(ii) Turnover (in ): , 16.3 Cr.
(iii) Net worth (in ): 6,163 Cr.

VII. Transparency and Disclosures Compliances
25. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on
Responsible Business Conduct:
Stakeholder Griev ance FY 2023-24 FY 2022-23

group from whom Redressal Current Financial Year Prev ious Financial Year
complaint is Mecha-
receiv ed nism in
Place
( Yes/ No)
(If es, then provide web-link Number Number Re- Number Number Re-
for grievance of com- of com- marks of com- of com- marks
redressal policy) plaints plaints plaints plaints
filed pending filed pending
during resolution during resolution
the year at close of the year at close of
the year the year
Communities es - - - - - -
Investors (other Not Applicable
than shareholders)
Shareholders es - - - - - -
Employees and es - - - - -
-
workers
Customers es - - - - - -
Value chain es - - - - -
-
partners
Other - Anonymous es - - - - - -
reporters or others
who do not fall
under above
categories

26. Overview of the entity’s material responsible business conduct issues:
Please indicate material responsible business conduct and sustainability issues pertaining to
environmental and social matters that present a risk or an opportunity to your business, rationale for
identifying the same, approach to adapt or mitigate the risk along-with its financial implications, as
per the following format
S. Material Indicate Rationale for In case of risk, Financial

No. issue whether identifying the risk/ approach to adapt implications
identified risk or opportunity or mitigate of the risk or
opportunity opportunity
( R/ O) ( Indicate
positiv e or
negativ e
implications)
1 Climate R The Company is The Company Negative
action – in the business of is committed to
product GHG manufacturing and reducing its GHG
emissions selling mainly fossil emissions through
fuel-based products. innovative products
Climate change and that will reduce the
associated emission emission and its
requirements are a carbon footprint.
strategic risk, which, In addition, the
if not managed Company is also
appropriately, can working on reducing
affect the Company’s emissions in its
operations and facilities.
profitability.
2 Cybersecurity R There is an overall The Company Negative
– data and increase in cyber- is committed to
products attacks and various protecting all its
forms of electronic data and information
fraud as the world which is required
becomes increasingly to continue its
digitally connected. business, protect all
computer systems
and have continued
operations. The
Company takes a
holistic approach
that includes
an extensive
assessment of
its products and
computer systems,
creating awareness
amongst its
employees and other
stakeholders.

S. Material Indicate Rationale for In case of risk, Financial
No. issue whether identifying the risk/ approach to adapt implications
identified risk or opportunity or mitigate of the risk or
opportunity opportunity
( R/ O) ( Indicate
positiv e or
negativ e
implications)
3 Product O Access to innovative NA Positive
innovation technologies and
and emission products that have a
compliance lower carbon footprint
and comply with all
applicable emission
norms.
4 Human O The Company has a NA Positive
capital highly skilled, talented
management workforce with subject-
matter expertise
coupled with world-
class infrastructure for
engineering, testing
and manufacturing,
which will enable the
Company to innovate
for the success of its
customers.
5 Sustainable O The Company NA Positive
water continues to remain
supplies focused on natural
resources like water
and is net water neutral
for its manufacturing
units.

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES
This section is aimed at helping businesses demonstrate the structures, policies and processes put in place
toward adopting the NGRBC Principles and Core Elements.
Disclosure P P P P P P P P P
Questions 1 2 3 4 5 6 7 8 9
Policy and management processes
1. a. Whether your entity’s policy/policies cover
each principle and its core elements of the * * *
NGRBCs. ( es/No)
b. Has the policy been approved by the
N N
Board ( es/No)
c. Web-link of the Policies, if available P1 – Vigil Mechanism Policy
https://www.cummins.com/en/in/investors/india-
corporate-governance
Ethics Mechanism
https://secure.ethicspoint.com/domain/media/en/
gui/13176/index.html
Anti-bribery Policy
P1 and P2 - Code of Business Conduct

https://www.cummins.com/sites/default/files/2020-05/
Code%20of%20Business%20Conduct.pdf
P2 – Supplier Code of Conduct

https://public.cummins.com/sites/CSP/
SiteCollectionDocuments/Supplier%20Code%20of%20
Conduct/Supplier Code of Conduct.pdf
P3 and P5 – Human Rights Policy

P4, P6 and P – Corporate Social Responsibility Policy

https://www.cummins.com/sites/default/files/india/Legal/
csr-policy-updated.pdf
P6 - HSE Policy
P9 - Data Privacy Policy

Corporate Product Safety Policy

2. Whether the entity has translated the policy
into procedures. ( es/No)

Questions 1 2 3 4 5 6 7 8 9
3. Do the enlisted policies extend to your value-
N N N N
chain partners ( es/No)
4. Name of the national and international codes/ ISO 14001:2015 for Environment Management System
certifications/labels/standards (e.g. Forest
Stewardship Council, Fairtrade, Rainforest ISO 45001:201 for Occupational Health and Safety
Alliance, Trustea) standards (e.g. SA 000, ISO 50001:201 for Energy Management System
OHSAS, ISO, BIS) adopted by your entity
and mapped to each principle. ISO 9001:2015 for uality Management System
5. Specific commitments, goals and targets set P2 –
by the entity with defined timelines, if any. Reuse or responsibly recycle 100% of packaging
plastics and eliminate single-use plastics in dining
facilities, at employee events and as amenities given to
employees by 2030
P3 –
Achieve Gender Diversity of 50% across all employee
categories by 2040
P6 –
1. Generate 25% less waste in facilities and operations
as a percent of revenue by 2030
2. Reduce absolute Greenhouse Gas (GHG) emissions
from facilities and operations by 50% by 2030
P –
1. Achieve 50% representation from candidates
in aspirational districts through the education
assistance program by F 2025-26
2. Double the coverage of the community outreach
program in aspirational districts by F 2025-26
6. Performance of the entity against specific The Company is at 27% diversity representation as at
commitments, goals and targets along-with end of F 2023-24.
reasons in case the same are not met.
As part of it’s outreach in the aspirational districts,
the Company has provided 60 new scholarships to
students from aspirational districts in F 2023-24 and
inducted 13 new villages from the aspirational districts
for it’s Rural Development Program and it’s Monsoon
Resilient Maharashtra Program.
The Company has multiple initiatives in progress to

reduce waste and GHG emissions from it’s facilities and
operations and is on track to achieve it’s environmental
goals.

Questions 1 2 3 4 5 6 7 8 9
Gov ernance, leadership and ov ersight
7. Statement by director responsible for the business responsibility report, highlighting ESG related
challenges, targets and achievements (listed entity has flexibility regarding the placement of this
disclosure):
“At Cummins, we prioritize stewardship of environmental, social, and governance (ESG) to bridge the
gap between progress and purpose. We are not just targeting emission reduction goals but creating
new possibilities for sustainable business growth and a more prosperous world. With a proud legacy of
innovation and bold action, Cummins has an incredible opportunity and responsibility to be part of the
solution to India’s climate challenges. Our Planet 2050 and Destination ero aspirations are grounded
in our commitment to sustainability and helping our customers navigate the energy transition.
People are at the heart of everything we do and aspire to be as a Company. We believe that ethical
behavior on the part of every employee, contractor, supplier, and business stakeholder is foundational
to Cummins’ sustainability and long-term success. We intend to create an ethical work environment
where employees know what is expected of them to exemplify our core value of integrity.
By nurturing diversity, equity, inclusion and culture (DEIC), we power the full potential of our people,
creating an environment where innovation and integrity thrive. By embracing a multitude of voices and
perspectives, we engineer innovative solutions that tackle the world’s most pressing challenges. This
diversity is not just integral to achieving our business goals, but it also inspires us to build a better
future for all – our people, communities, country and the planet.”
. Details of the highest authority responsible Mr. Ashwath Ram, Managing Director (MD) and
for implementation and oversight of the oversighted by the Audit and Compliance Committee
Business Responsibility policy(ies).
9. Does the entity have a specified Committee es, Audit and Compliance Committee
of the Board/Director responsible for decision
making on sustainability related issues ( es/
No). If yes, provide details.
10. Details of Review of NGRBCs by the

Company:
Subject for Review Indicate whether rev iew Frequency
was undertaken by Director/ (Annually/ alf yearly/ Quarterly/
Committee of the Board/ Any Any other please specify)
other Committee
P P P P P P P P P P P P P P P P P P
1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
Performance against Review undertaken by ‘Any other Need based review or review
above policies and follow up Committee' (internal review groups driven by statutory requirements/
action formed by the management) amendments depending on the
nature of the policy
Compliance with statutory Review undertaken by ‘Any other Need based review or quarterly
requirements of relevance Committee' (internal review groups review depending on the nature of
to the principles, and formed by the management) the policy
rectification of any
non-compliances

11. Has the entity carried out independent P1 P2 P3 P4 P5 P6 P7 P8 P9
assessment/ evaluation of the working of its N N N N N N N N
policies by an external agency ( es/No). If
yes, provide name of the agency.
es. The Company’s facilities are evaluated by SGS
India Private Limited periodically for ISO certification.
*The policies relate to safe and sustainable products, Human Rights and Customer Relations and are
embedded in the Company’s Vision, Mission, Values, Strategic Principles, the Cummins Operating System
and the Company’s Code of Conduct.
Policies specific to CIL, are brought to the CIL Board of Directors and approved, while some others are more
procedural in nature and implemented directly.
12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy reasons to be stated:
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
The entity does not consider the principles
material to its business ( es/No)
The entity is not at a stage where it is in a
position to formulate and implement the policies
on specified principles ( es/No)
The entity does not have the financial or/human Not applicable
and technical resources available for the task
( es/No)
It is planned to be done in the next financial year
( es/No)
Any other reason (please specify)

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE
This section is aimed at helping entities demonstrate their performance in integrating the Principles and
Core Elements with key processes and decisions. The information sought is categorized as “Essential” and
“Leadership”. While the essential indicators are expected to be disclosed by every entity that is mandated to
file this report, the leadership indicators may voluntarily be disclosed by entities which aspire to progress to a
higher level in their quest to be socially, environmentally and ethically responsible.
PRINCIPLE 1 Businesses should conduct and gov ern themselv es with integrity, and in a manner that
is Ethical, Transparent and Accountable.
Ethical behavior at the Company is driven by the Code of Business Conduct, which guides employees on
a wide range of matters, from how to treat colleagues at work to preventing sexual harassment, avoiding
conflicts of interest, upholding human rights, anti-bribery, and much more. New employees are introduced to
the code during onboarding and are regularly assigned related training courses over the course of their time
at the Company.
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the Principles during the financial
year:
Segment Total number Topics / principles cov ered under the %age of persons
of training and training and its impact in respectiv e
awareness category cov ered
programmes by the awareness
held programmes
Board of 2 Awareness of BRSR requirements across 100%
Directors all principles
• Policy and management processes
(detailed discussions also done at
respective committee meetings on a
periodic basis)
Update on BRSR Core including
reasonable assurance
ey Managerial 5 • Code of Business Conduct 100%
Personnel Treatment of Each Other
Conflicts of Interest
Sessions in the Board Meeting
Employees other 3 • Code of Business Conduct 100%
than BODs and Treatment of Each Other
MPs Conflicts of Interest
Workers 3 • Code of Business Conduct 100%
Treatment of Each Other
Conflicts of Interest

2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings
(by the entity or by directors / MPs) with regulators/ law enforcement agencies/ judicial institutions, in
the financial year, in the following format:
Monetary
NGRBC Name of the Amount ( In INR) Brief of Has an
Principle regulatory/ (Expected financial the Case Appeal
enforcement implication, if any been
agencies/ judicial due to compensation, preferred
institutions penalty, etc.) ( Yes/ No)
Penalty/ Fine None
Settlement
Compounding fee
Non-Monetary
NGRBC Name of the regulatory/ Brief of the Has an Appeal been
Principle enforcement agencies/ judicial Case preferred ( es/No)
institutions
Imprisonment None
Punishment
3. Of the instances disclosed in uestion 2 above, details of the Appeal / Revision preferred in cases where
monetary or non-monetary action has been appealed:
Case Details Name of the regulatory/ enforcement agencies/ judicial institutions

Not Applicable
4. Does the entity have an anti-corruption or anti-bribery policy If yes, provide details in brief and if available,
provide a web-link to the policy:
es.
The Anti-Bribery and Prohibited Payments Policy adopted by the Company is applicable to all its
employees and third-party agents acting on behalf of the Company. The policy focuses on prohibition of
all bribery in the course of doing business, compliance with applicable laws etc. The policy is available
under https://www.cummins.com/en/in/investors/india-corporate-governance.
5. Number of Directors/ MPs/employees/workers against whom disciplinary action was taken by any law
enforcement agency for the charges of bribery/ corruption:
FY 2023-24 FY 2022-23
( Current Financial Year) ( Prev ious Financial Year)
Directors None
MPs
Employees
Workers

6. Details of complaints with regard to conflict of interest:
FY 2023-24 FY 2022-23
Number Remarks Number Remarks
Number of Complaints received in relation to None NA None NA
issues of Conflict of Interest of the Directors
Number of complaints received in relation to
issues of Conflict of Interest of the MPs
7. Provide details of any corrective action taken or underway on issues related to fines/ penalties/ action
taken by regulators/ law enforcement agencies/ judicial institutions, on cases and conflicts of interest:
Not applicable
. Number of days of accounts payables ((Accounts payable*365)/Cost of goods/services procured) in the

following format:
FY 2023-24 FY 2022-23
Number of days of accounts payables 73 67
Average Accounts Payable are considered for the purpose of this ratio.
9. Open-ness of business
Provide details of concentration of purchases and sales with trading houses, dealers, and related parties
along-with loans and advances and investments, with related parties, in the following format:
Parameter Metrics FY 2023-24 FY 2022-23

( Current ( Prev ious
Financial Year) Financial Year)
Concentration a. Purchases from trading houses as % of total NA NA
of Purchases purchases
b. Number of trading houses where purchases are NA NA
made from
c. Purchases from top 10 trading houses as % of NA NA
total purchases from trading houses
Concentration a. Sales to dealers / distributors as % of total sales 16% 15%
of Sales b. Number of dealers / distributors to whom sales 146 134
are made
c. Sales to top 10 dealers / distributors as % of total 75% 73%
sales to dealers / distributors
Share of a. Purchases (Purchases with related parties / Total 52% 49%
RPTs Purchases)
b. Sales (Sales to related parties / Total Sales) 19% 23%
c. Loans advances (Loans advances given to 0% 0%
related parties / Total loans advances)*
d. Investments (Investments in related parties / 3% 3%
Total Investments made)*
*Basis balances as at year end.
Leadership Indicators
1. Awareness programmes conducted for value chain partners on any of the principles during the financial
year:
Total number Topics / principles cov ered under %age of value chain partners covered
of awareness the training (by value of business done with
programmes held such partners) under the awareness
programmes
1 (Suppliers) Ethics, health and safety, integrity, Supplier covering 4 % of total spend of
sustainability, governance, F 2023-24
environment, social responsibility
2 (Suppliers) ESG and BRSR awareness Suppliers covering 1 % of total spend of
F 2023-24
1 (Dealers) Ethics and compliance – online Representatives of 77% dealers
training, ESG and BRSR awareness
3 (GOEMs) ESG and BRSR awareness Representatives of 100% GOEMs
2. Does the entity have processes in place to avoid/manage conflict of interest involving members of the
Board ( es/No) If yes, provide details of the same:
es.
The Board of Directors of the Company have a separate ‘Code of Conduct’. The code, in line with the
applicable laws, requires the directors to provide annual declarations about their interest in compliance
with applicable regulations in addition to voluntary declarations about interim changes in their interests,
if any. These disclosures are noted by the Board in subsequent meeting(s).
PRINCIPLE 2 Businesses should provide goods and services in a manner that is sustainable and safe
The Company is committed to reducing its carbon footprint and doing more to use less of the world’s
natural resources. The three focus areas are: reducing greenhouse gas (GHG) and air emissions;
using natural resources in the most sustainable way possible; helping communities address their major
environmental challenges.
1. Percentage of R D and capital expenditure (capex) investments in specific technologies to improve the
environmental and social impacts of product and processes to total R D and capex investments made
by the entity, respectively:
Current Prev ious Details of improvements in environmental and social

Financial Year Financial Year impacts
R D 100% 34% Revenue expenditure on developing and testing emission
compliant products, on fuel efficiency improvement and
alternate material usage and testing facilities etc.
Capex 54% 32% Capex spend includes investments made in technical
know-how for latest CPCB IV+ emission standards,
projects for energy efficient processes, enhancing product
development facility for current and new technologies, etc.
The Company, through its R D and capex investments, is focused on moving toward a cleaner, greener
planet by reducing its carbon footprint, both through the products it makes and how it makes them.
2. a. Does the entity have procedures in place for sustainable sourcing ( es/No)
es.
The Company has procedures in place for sustainable sourcing.
b. If yes, what percentage of inputs were sourced sustainably
71% of the total spend is through sustainable sourcing.
3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at
the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste:
The Company has a remanufacturing facility at Phaltan, Maharashtra. The complete remanufacturing
process has five key steps viz. 1. Disassembly, 2. Cleaning, 3. Inspection, 4. Salvage/ Reuse, 5. Assembly
and Test.
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities ( es/No). If
yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan
submitted to Pollution Control Boards If not, provide steps taken to address the same:
es.
EPR is applicable to the Company in the capacity as “Brand Owner”. The Company complies with the
Plastic collection plan submitted to Maharashtra and Tamil Nadu Pollution Control Board and regularly
submits Annual returns as per the relevant provisions of the regulations.
1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for
manufacturing industry) or its services (for services industry) If yes, provide details in the following
format:
NIC Name of % of Total Boundary for Whether Results communicated

code Product/ Turnov er which the life conducted by in Public domain
serv ice contributed cycle Perspectiv e/ independent ( Yes/ No) .
Assessment was external agency If yes, provide the
conducted ( Yes/ No) web-link
2 1 Engine 11.70% Cradle to Gate No No
2. If there are any significant social or environmental concerns and/or risks arising from production or
disposal of your products/services, as identified in the Life Cycle Perspective/Assessments (LCA) or
through any other means, briefly describe the same along-with action taken to mitigate the same:
Name of Product/Service Description of the risk/concern Action Taken

No significant social or environmental concerns/risks were identified.
3. Percentage of recycled or reused input material to total material (by value) used in production (for
manufacturing industry) or providing services (for service industry):
Indicate input material Recycled or re-used input material to total material

FY 2023-24 Current Financial Year FY 2022-23 Prev ious Financial Year
-

4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused,
recycled, and safely disposed, as per the following format:
FY 2023-24 FY 2022-23
Current Financial Year Prev ious Financial Year
Re-Used Recycled Safely Re-Used Recycled Safely
Disposed Disposed
Plastics (including
packaging)
E-waste - -
Hazardous waste
Other waste
5. Reclaimed products and their packaging materials (as percentage of products sold) for each product
category:
Indicate product category Reclaimed products and their packaging materials

as % of total products sold in respective category
-
PRINCIPLE 3 Businesses should respect and promote the well-being of all employees, including those
in their v alue chains
The Company pursues its commitment toward employee well-being by creating a diverse and inclusive work
environment; engaging employees and their families in improving wellness; extending the company’s talent
management philosophies in performance management, compensation management, competency building
and access to development opportunities for all employees through education assistance programs.
Following are some of the initiatives undertaken by the Company to ensure the well-being of its employees:
• Periodic health check-ups and counselling by professional and trained medical team
Independent trained professionals are available through a confidential service provider to help them deal
with mental health and other life challenges
Life insurance benefits covering employees
Health insurance benefits covering employees and their family members
Maternity and paternity benefits
Various Employee Resource Groups (ERG) focusing on the various dimensions of diversity namely:
Gender, Generation, Culture, Person with Disability (PwD), and LGBT +
• Creche facilities
• Occupational health and safety management system

1. a. Details of measures for the well-being of employees:
Category % of employees covered by

Total Health Accident Maternity Paternity Day Care
( A) insurance insurance benefits Benefits facilities
Number % Number % Number % Number % Number %
( B) ( B / A) ( C) ( C / A) ( D) ( D / A) ( E) ( E / A) ( F) ( F / A)
Permanent employees
Male 919 919 100% 919 100% NA 0% 919 100% 919 100%
Female 33 33 100% 33 100% 33 100% NA 0% 33 100%
Total 1,257 1,257 100% 1,257 100% 33 27% 919 73% 1,257 100%
Other than Permanent employees
Male 74 - 0% 74 100% NA 0% - 0% - 0%
Female 25 - 0% 25 100% 25 100% NA 0% - 0%
Total 99 - 0% 99 100% 25 25% - 0% - 0%
b. Details of measures for the well-being of workers:
Category % of workers covered by

Total Health Accident Maternity Paternity Day Care
( A) insurance insurance benefits Benefits facilities
Number % Number % Number % Number % Number %
( B) ( B / A) ( C) ( C / A) ( D) ( D / A) ( E) ( E / A) ( F) ( F / A)
Permanent workers
Male 1,507 1,507 100% 1,507 100% NA 0% 1,507 100% 1,507 100%
Female 309 309 100% 309 100% 309 100% NA 0% 309 100%
Total 1, 16 1, 16 100% 1, 16 100% 309 17% 1,507 3% 1, 16 100%
Other than Permanent workers
Male 1,779 1,779 100% 1,779 100% NA 0% - 0% - 0%
Female 142 142 100% 142 100% 142 100% NA 0% - 0%
Total 1,921 1,921 100% 1,921 100% 142 7% - 0% - 0%
c. Spending on measures toward well-being of employees and workers (including permanent and
other than permanent) in the following format:
FY 2023-24 FY 2022-23
Cost incurred on well- being measures 0.19% 0.23%
as a % of total revenue of the
Company*
* includes spend toward well-being of permanent employees and workers. Spend toward well-being
of other than permanent employees and workers are not ascertainable.

2. Details of retirement benefits, for Current F and Previous Financial ear:
The Company’s employees and workers are covered for retiral benefits as per eligibility defined under the
applicable laws. The company also creates awareness of schemes such as National Pension Scheme
(NPS) which the employees can avail. Superannuation benefit is now provided as a voluntary benefit to
employees starting uly 2023.
Benefits FY 2023-24 FY 2022-23

No. of No. of Deducted No. of No. of Deducted
employees workers and employees workers and
cov ered cov ered as deposited cov ered cov ered as deposited
as a % a % of total with the as a % a % of total with the
of total workers authority of total workers authority
employees ( Y/ N/ N.A.) employees ( Y/ N/ N.A.)
PF 100% 100% es 100% 100% es
Gratuity 100% 100% es 100% 100% es
ESI 100% 100% es 100% 100% es
Superannuation* 100% 100% es 100% 100% es
NPS* 100% 100% es 100% 100% es
* Superannuation and NPS benefits are offered to 100% employees and workers, employee can voluntarily
opt for the same. Corresponding contribution is deducted and deposited in case of 100% employees who
have opted for the benefits.
3. Accessibility of workplaces:
Are the premises/offices of the entity accessible to differently abled employees and workers, as per the
requirements of the Rights of Persons with Disabilities Act, 2016 If not, whether any steps are being
taken by the entity in this regard:
es.
The Company continues to take steps including modernization of its older facilities to improve accessibility
to its facilities for differently abled employees and workers.
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016
If so, provide a web-link to the policy:
es.
The Equal Opportunity policy is available to the internal stakeholders on the intranet.
5. Return to work and Retention rates of permanent employees and workers that took parental leave:
Gender Permanent employees Permanent workers

Return to work rate Retention rate Return to work rate Retention rate
Male 100% 91% 100% 90%
Female 100% 93% 100% 9%
Total 100% 92% 100% 90%

6. Is there a mechanism available to receive and redress grievances for the following categories of
employees and workers If yes, give details of the mechanism in brief:
Yes/ No
(If es, then give details of the mechanism in brief)
Permanent es.
Workers
All workers/ employees, permanent/ other than permanent of the Company
can reach out to their Direct Managers and HR Business Partners as their primary
Other than contact to redress their grievances as specified in the policy of the Company.
Permanent
Workers The Company has communication and other infrastructure, and policies through
which the employees and workers can voice their concerns.
Permanent
Employees Protected disclosures can be made by a whistle-blower through an email or
dedicated telephone line or letter to the Managing Director of the Company or
Letter to Head of Legal Department or Letter to the Chairman of Audit and
Other than Compliance Committee or via the Ethics helpline/ webpage, details of which are
Permanent available on the website of the Company.
Employees
The Company has a ‘Vigil Mechanism Policy’, as per applicable laws, along with
the Non-retaliation Policy, which inter-alia provides adequate safeguards to
whistle-blowers against retaliation.
7. Membership of employees and worker in association(s) or Unions recognized by the listed entity:
Category FY 2023-24 FY 2022-23

Total No. of % Total No. of %
Employees/ employees/ ( B / A) employees/ employees/ ( D / C)
Workers in workers workers in workers in
Respectiv e in respectiv e respectiv e respectiv e
category category, who category category, who
( A) are part of ( C) are part of
association( s) association( s)
or Union or Union
( B) ( D)
Total Permanent
1,257 - 0% 1,2 2 - 0%
Employees
- Male 919 - 0% 933 - 0%
- Female 33 - 0% 349 - 0%
Total Permanent
1, 16 532 29% 1, 79 559 30%
Workers
- Male 1,507 532 35% 1,554 559 36%
- Female 309 - 0% 325 - 0%

. Details of training given to employees and workers:
The trainings on health and safety measures and skill upgradation are gender agnostic and available to
both male and female employees/workers.

Total On Health and On Skill Total On Health and On Skill
( A) safety measures upgradation ( D) safety measures upgradation
No. % No. % No. % No. %
( B) ( B / A) ( C) ( C / A) ( E) ( E / D) ( F) ( F / D)
Employees
Male 919 427 46% 703 76% 933 530 57% 43 90%
Female 33 127 3 % 264 7 % 349 177 51% 304 7%
Total 1,257 554 44% 967 77% 1,282 707 55% 1,147 89%
Workers
Male 1,507 35 55% 672 45% 1,554 62 40% 6 56%
Female 309 176 57% 204 66% 325 176 54% 279 4%
Total 1,816 1,011 56% 876 48% 1,879 804 43% 1,147 61%
Previous year information and disclosures are updated to align the same with current year’s information
and disclosures wherever applicable.
9. Details of performance and career development reviews of employees and worker:

Total ( A) No. ( B) % ( B / A) Total ( C) No. ( D) % ( D / C)
Employees
Male 919 919 100% 933 933 100%
Female 33 33 100% 349 349 100%
Total 1,257 1,257 100% 1,282 1,282 100%
Workers
Male 1,507 1,507 100% 1,554 1,554 100%
Female 309 309 100% 325 325 100%
Total 1,816 1,816 100% 1,879 1,879 100%
10. Health and safety management system:
a. Whether an occupational health and safety management system has been implemented by the
entity ( es/ No). If yes, the coverage of such system
es.
The Company has implemented an enterprise-wide occupational health and safety management
system (HSEMS) that conforms to ISO (International Standards Organization) 45001.

b. What are the processes used to identify work-related hazards and assess risks on a routine and
non-routine basis by the entity
All the Company’s facilities have implemented a systematic process for identifying work related
hazards and assessing their risks for routine and non-routine activities through the Hazard
Identification and Risk Assessment Process (HIRA) that is in-line with the ISO 45001: 201
requirements, “ ob Safety Assessments”, HSE internal audit, “Find it, Fix it”, “Active Caring and
Visual Literacy” are some of the initiatives that are deployed in the Company. HIRA provides an
analytical tool to all facilities to assess their critical and unreasonable risks. The intent is to use
these processes proactively to improve Health Safety for all employees and others who visit the
Company’s facilities.
c. Whether you have processes for workers to report the work-related hazards and to remove
themselves from such risks. ( /N)
es.
The Company’s facilities have processes such as Team-Based Work System (TBWS) forum,
layered process audits, safety suggestions, ergonomics early reporting program, safety observation
tours, etc. through which employees and workers can report work related hazards to remove/reduce
the risks. Also, as per requirements of provision of the Factories Act, 194 , safety committees are
formed at all applicable manufacturing locations, which take note of all the improvement opportunities
coming from the employee representatives.
d. Do the employees/ worker of the entity have access to non-occupational medical

and healthcare services ( es/ No)
es.
The Company offers a range of medical and healthcare services at its facilities, including:
1. first aid boxes

2. trained first aid facilitators
3. counselling by independent professionals on mental health and other life challenges
4. medical insurance cover
5. qualified medical doctors at some company facilities
11. Details of safety related incidents, in the following format:
Safety Incident/Number Category* FY 2023-24 FY 2022-23

Lost Time Injury Frequency Rate Employees - -
(LTIFR) (per one million-person
hours worked) Workers 0.36 0.54
Total recordable work-related Employees - -
injuries Workers 1 10
No. of fatalities Employees - -
Workers - -
High consequence work-related Employees - -
injury or ill-health (excluding fatalities) Workers - -
* Including in the contract workforce

The BRSR Core requires disclosure of “Number of Permanent Disabilities’’, however, it does not include
the definition of ‘Permanent Disabilities’. The Company in the absence of any other guidance, has
considered High Consequence Work-related injury or ill-health, which results in an injury from which the
employee / worker cannot or is not expected to recover fully to the previous health status, this does not
include fatalities.
12. Describe the measures taken by the entity to ensure a safe and healthy workplace:
The Company has developed an enterprise-wide HSE management system in line with ISO 14001 and
ISO 45001 standard requirements. This HSE management system and plan follows plan-do-check-act
(PDCA) cycle. Details of each phase are as follows:
Plan - All facilities have HSE Policies that drive compliance with legal and other requirements.
Dedicated tools like HIRA and Environmental Aspect and Impact Assessment (EAIA) are used to
facilitate the same.
Do - Facility specific operating procedures have been created and enforced.
Check - Continuous self-assessment enables corrective and preventive actions (CAPA) with the
help of IT tools and processes.
Act – All facilities have a management review procedure to drive improvement plans.
13. Number of Complaints on the following made by employees and workers:
FY 2023-24 FY 2022-23
Filed Pending Remarks Filed Pending Remarks
during resolution at during resolution at
the year the end of year the year the end of year
Working All complaints
99 34 5 -
Conditions filed during the
-
Health year have been
1,160 675 46 - resolved
Safety
A formal complaint collection process was established in F 2023-24 involving multiple channels including
individual communication and group forums. Complaints can be raised by an employee or worker through
email communication, phone calls, site complaint registers or 1:1 discussions. Some of the group forums
to raise complaints are employee committees, safety committee, staff meetings, Team Based Work
System (TBWS) forums, focus group discussions by leaders or HR, all employee communication forums
etc. These together ensure a comprehensive approach to gathering and addressing concerns. If certain
complaints cannot be resolved immediately due to any reason, it is communicated to the concerned and
close looped accordingly as and when necessary action is taken.
14. Assessments for the year:
% of your plants and offices that were assessed (by entity or

statutory authorities or third parties)
Health and safety practices 100%
Working Conditions 100%

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any)
and on significant risks / concerns arising from assessments of health and safety practices and working
conditions:
No significant risks or concerns were identified during the assessments of health and safety practices
and working conditions during the year.
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A)
Employees ( /N) (B) Workers ( /N):
es.
The Company extends Life Insurance or equivalent compensatory package in the unfortunate event of
death of an employee or a worker.
2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and
deposited by the value chain partners:
The Company emphasizes the importance of compliance through interactions with its value chain
partners. Supplier Code of Conduct requires the vendors to know and follow all applicable laws and have
awareness of any legal or regulatory changes that may impact their operations. The Company has an
annual process of seeking confirmation of compliance with requirements related to statutory dues from
its suppliers.
3. Provide the number of employees / workers having suffered high consequence work related injury /
ill-health / fatalities (as reported in 11 of Essential Indicators above), who have been rehabilitated and
placed in suitable employment or whose family members have been placed in suitable employment:
Total no. of affected employees/ No. of employees/workers that are

workers rehabilitated and placed in suitable
employment or whose family members
hav e been placed in suitable employment
FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23
( Current ( Prev ious ( Current ( Prev ious
Financial Year) Financial Year) Financial Year) Financial Year)
Employees - - - -
Workers - - - -
4. Does the entity provide transition assistance programs to facilitate continued employability and the
management of career endings resulting from retirement or termination of employment ( es/No)
es.
In cases of termination of employment due to business related reasons or Voluntary Retirement Plan
(VRP), the Company provides outplacement services support, mental wellness support and monetary
compensation to the impacted individuals as per internal policies and plans designed for the respective
events.

5. Details on assessment of value chain partners:
% of value chain partners (by value of business done with such

partners) that were assessed
Health and safety practices Suppliers - 62% of total spend
Working conditions Suppliers - 62% of total spend
These assessments are conducted to cover 100% of suppliers over a period of three years.
6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising
from assessments of health and safety practices and working conditions of value chain partners:
Two concerns were identified as part of the Eyes Open Audits pertaining to non-use of personal protective
equipment. Both the concerns were addressed and necessary process corrections were made to ensure
a safe working environment.
PRINCIPLE 4 Businesses should respect the interests of and be responsive to all its stakeholders
1. Describe the processes for identifying key stakeholder groups of the entity:
The key stakeholders are identified based on consultative discussions between the functional and
business heads along with the directors of the Company.
2. List stakeholder groups identified as key for your entity and the frequency of engagement with each
stakeholder group:
Stakeholder Whether Channels of Frequency of Purpose and scope

Group identified as communication engagement of engagement
Vulnerable & (E-mail, SMS, (Annually / alf including key topics
Marginali ed Newspaper, Pamphlets, yearly/ Quarterly and concerns
Group ( Yes/ Advertisement / others-please raised during such
No) Community Meetings, specify) engagement
Notice Board, Website,
Other)
Investors No • Press releases and • Annually through • To explain the
(shareholders / media interactions annual report financial results and/
Analysts) E-mails, SMS, uarterly or other updates
newspaper publications through financial To answer queries of
AGM / EGM General results, analyst investors/ analysts
meetings, meeting call, exchange on operations of the
notices notifications Company
Stock exchange filings • Continuous • To understand
• Analyst calls engagement: shareholder
Updates on the Investors page on expectations
Company’s website website

Other)
Employees No E-mails Event based To provide operational
and Workers • Notice boards / Continuous and strategic updates
(and their 1:1 meetings, plant engagement • Career management
families) meetings, townhalls • Learning opportunities
Project and operations • To build a safety
reviews culture and inculcating
Family days safe work practices
Internal website among employees
Social media webpages To improve
diversity and
inclusion; employee
engagement
Suppliers No Individual meetings, Event based To align on values,
(including conferences / Continuous strategy and
consultants) E-mails, telephone/ engagement operational priorities
conference calls To resolve operational
Supplier visits issues
Customers No Meetings and Event based • To understand
conferences / Continuous business challenges
Project related engagement • To identify
discussions, project Periodic customer improvement
management reviews satisfaction opportunities for the
Customer visits surveys Company
Sponsored events
Mailers, newsletters,
brochures
Social media webpages
Surveys

Other)
Communities es Community Meetings, • Calendarized, • To identify community
(Identified Field Visits ongoing needs through
as part of engagement participatory
the CSR with periodic and consultations with
initiatives) pre-determined implementing
frequency which organizations
is done directly To review the
and through progress of the
implementing program with
organizations the communities
and address any
concerns that the
community may
have with regards
to the program
implementation
• To address concerns
received through
the formal grievance
redressal mechanism
• To educate the
communities
periodically through
review meetings
Government No Request for Event based • To understand areas
bodies Information/Request for / Continuous for sustainable
(Center, State, Proposal/ presentations engagement development
Local) Project review • To communicate
meetings the Company’s
Surveys performance and
Consultative sessions strategy
Field visits • To share and
• Conferences and contribute to
seminars thought leadership
• Press releases and and insights into
media interactions public and business
concerns
• To discuss the
Company’s response
to business /
community issues as
a corporate citizen

Other)
Academia No E-mails Event based MOU signed to
Meetings improve engagement
Project Related between industry and
Discussions academia
To establish events
to support academic
institutes
To research projects
jointly for mutual
benefit
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental,
and social topics or if consultation is delegated, how is feedback from such consultations provided to the
Board:
Engagement and consultation with stakeholders on various topics is delegated by the Board and governed
as per the operating policies of the Company. Any material feedback from such consultations is provided
to the Board on a periodic basis through Board Meetings or Committee Meetings.
2. Whether stakeholder consultation is used to support the identification and management of environmental,
and social topics ( es/No). If so, provide details of instances as to how the inputs received from
stakeholders on these topics were incorporated into policies and activities of the entity:
es.
Stakeholder engagement covers key material issues driven by strategic objectives through various
modes of engagement. For example, circulars/ notifications on emission norms and related product
development, Participatory Rural Appraisals for identifying important issues for CSR project selection.
3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/
marginalized stakeholder groups:
The Company is deeply committed to engaging with and addressing the concerns of all stakeholder
groups, especially those who are vulnerable or marginalized. The Company has implemented various
programs aimed at empowering women in the communities where it operates. This includes providing
training and livelihood opportunities and facilitating access to healthcare services for women and girls
through health camps. The women are trained on goatery, poultry, kitchen gardening, organic compost
making, etc. 1 1 new women’s self-help groups have been formed and provided with entrepreneurship
training. These initiatives have positively impacted over 2,000 women.
The Company believes in the transformative power of education and is committed to providing access
to quality education for students, especially those from disadvantaged backgrounds. The Company’s
scholarship programs support students in pursuing higher education and vocational training, enabling
them to realize their full potential. In F 2023-24, the Company has supported 229 students through the

Scholarship program and 544 students through the vocational education program - Technical Education
for Communities (TEC).
The Company, through its holistic approach to support the underprivileged and marginalized, has
collaborated with organizations dedicated to supporting various vulnerable groups in the society such as
the visually impaired, hearing impaired, elderly residents, orphaned children, tribal girls, and more. In F
2023-24, the Company has impacted more than 400 vulnerable individuals.
The Company has also initiated projects in the aspirational districts of Nandurbar, Dharashiv, Ranchi,
Vidisha, Guna, etc. with the aim of uplifting these regions and contributing to their holistic development.
PRINCIPLE 5 Businesses should respect and promote human rights
The Company supports human rights and has a zero-tolerance policy on bonded, child or forced labor. It
endeavors to provide equal opportunity to its employees while discouraging discrimination, harassment
and retaliation. Online and classroom trainings on relevant topics related to Human Rights are conducted
for all employees and workers.
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the
entity, in the following format:

Total ( A) No. of % ( B / A) Total ( C) No. of % ( D / C)
employees employees
/ workers / workers
cov ered ( B) cov ered ( D)
Employees
Permanent 1,257 1,257 100% 1,2 2 1,2 2 100%
Other than
99 99 100% 100 100 100%
permanent
Total
1,356 1,356 100% 1,3 2 1,3 2 100%
Employees
Workers
Permanent 1, 16 1, 16 100% 1, 79 1, 79 100%
Other than
1,921 1,921 100% 2,079 2,079 100%
permanent
Total Workers 3,737 3,737 100% 3,95 3,95 100%

2. Details of minimum wages paid to employees and workers, in the following format:

Total Equal More than Total Equal More than
( A) Minimum Minimum ( D) Minimum Minimum
Wage Wage Wage Wage
No. % No. % No. % No. %
( B) ( B / A) ( C) ( C / A) ( E) ( E / D) ( F) ( F / D)
Employees
Permanent 1,257 0 0 1,257 100% 1,2 2 0 0 1,2 2 100%
Male 919 0 0 919 100% 933 0 0 933 100%
Female 33 0 0 33 100% 349 0 0 349 100%
Other than 99 0 0 101 100% 100 0 0 100 100%
Permanent
Male 74 0 0 74 100% 72 0 0 72 100%
Female 25 0 0 25 100% 2 0 0 2 100%
Workers
Permanent 1, 16 0 0 1, 16 100% 1, 79 0 0 1, 79 100%
Male 1,507 0 0 1,507 100% 1,554 0 0 1,554 100%
Female 309 0 0 309 100% 325 0 0 325 100%
Other than 1,921 1,4 5 77% 436 23% 2,079 1,725 3% 354 17%
Permanent
Male 1,779 1,3 4 7 % 395 22% 1,910 1,5 6 3% 324 17%
Female 142 101 71% 41 29% 169 139 2% 30 1 %
3. Details of remuneration/salary/wages
a. Median remuneration/wages:
Male Female
Number Median remuneration/ Number Median remuneration/
salary/ wages of salary/ wages of
respectiv e category respectiv e category
Board of Directors (BoD) 5* 2,325,000# 5 1, 50,000#
ey Managerial 2 51, 70,939 1 3,675,026
Personnel
Employees other than 919 3,127,766 33 2,296,144
BoD and MP
Workers 1,507 791,094 309 660,411
#
The median remuneration of BoD is not an annualized amount.
* Includes remuneration payable to one (1) director whose term ended during the year.
Notes:
The remuneration of Non-Executive: (other than Independent Directors) Directors is Nil.
Remuneration details of BoD and MPs are published as part of Annexure 10 of Directors
Report.

b. Gross wages paid to females as % of total wages paid by the entity, in the following format:
FY 2023-24 FY 2022-23
Gross wages paid to females as %
20% 19%
of total wages
4. Do you have a focal point (Individual/Committee) responsible for addressing human rights impacts or
issues caused or contributed to by the business ( es/No)
es.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues:
Any grievance related to human rights can be filed through a formal grievance redressal mechanism.
At the Company, employees have several options to report ethics or human rights related issues. Besides
being able to reach out to direct managers or HR, employees have the option to anonymously report
issues through four separate channels:
Regularly monitored voice mail box

Online at ethics.cummins.com
• Toll-free number
R Code
6. Number of Complaints on the following made by employees and workers:

Filed Pending Remarks Filed Pending Remarks
the year the end of year the year the end of year
Sexual Harassment 2 - 1 -
Discrimination at 1 - - -
workplace
Child Labor - - - -
Forced Labor/ - - - -
Involuntary Labor
Wages - - - -
Other human rights - - - -
related issues

7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013, in the following format:
FY 2023-24 FY 2022-23
Total Complaints reported under Sexual 0 1
Harassment on of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013
(POSH)
Complaints on POSH as a % of female 0% 0.11%
employees / workers
Complaints on POSH upheld 0 1
Included here are written complaints which are not anonymous, in line with the requirements for
investigation per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013.
. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases:
The Company has a non-retaliation policy which prohibits all forms of retaliation against employees who
raise concerns or who report violations of the Code of Business Conduct, Company policies including
Treatment of Each Other at Work or the law.
9. Do human rights requirements form part of your business agreements and contracts ( es/No)
es.
10. Assessments for the year:
% of your plants and offices that were assessed

( by entity or statutory authorities or third parties)
Child labor 100%
Forced/involuntary labor 100%
Sexual harassment 100%
Discrimination at workplace 100%
Wages 100%
Others-please specify Nil
The Company internally monitors compliance for all applicable laws and policies pertaining to Human
Rights issues.
from the assessments at uestion 10 above.
No significant risks/concerns were identified through the assessments.

1. Details of a business process being modified/introduced as a result of addressing human rights grievances/
complaints:
No significant concerns have been identified which necessitated introduction of new processes/
modification of existing processes during F 2023-24.
2. Details of the scope and coverage of any Human Rights due diligence conducted:
No separate human rights due-diligence was conducted besides the internal assessments during F
2023-24.
3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the
Rights of Persons with Disabilities Act, 2016
es.
The Company continues to take steps including modernisation of its older facilities to improve accessibility
to its facilities for differently abled visitors.
4. Details on assessment of value chain partners:
% of value chain partners (by value of business done

with such partners) that were assessed
Sexual harassment Suppliers – 49% of total Spend
Discrimination at workplace Suppliers – 49% of total Spend
Child Labor Suppliers – 62% of total Spend
Forced/involuntary labor Suppliers – 62% of total Spend
Wages Nil
Others-please specify None
These assessments are conducted to cover 100% of suppliers over a period of three years.
from the assessments at uestion 4 above:
No significant risks/concerns were identified for those areas which were assessed during the year through
various assessments.

PRINCIPLE 6 Businesses should respect and make efforts to protect and restore the environment
1. Details of total energy consumption (in oules or multiples) and energy intensity, in the following format:
Parameter FY 2023-24 FY 2022-23

From renewable sources
Total electricity consumption (A) G 21, 1 19,105
Total fuel consumption (B) - -
Energy consumption through other sources - -
(C)
Total energy consumed from renewable 21, 1 19,105
sources ( A+ B+ C)
From non-renewable sources
Total electricity consumption (D) G 6,167 90,953
Total fuel consumption (E) G 94,009 90, 7
Energy consumption through other sources - -
(F) G
Total energy consumed from non- 1 0,176 1 1, 31
renewable sources ( D+ E+ F)
Total energy consumed ( A+ B+ C+ D+ E+ F) 202,057 200,936
Energy intensity per rupee of turnover 0.0000023 0.0000026
(Total energy consumed / Revenue from
operations) (G / INR)
Energy intensity per rupee of turnover 0.0000524 0.0000604
adjusted for Purchasing Power Parity
( PPP) (Total energy consumed / Revenue
from operations adjusted for PPP) (G / INR
adjusted for PPP)
Energy intensity in terms of physical 1.6137 1.432
Output ( GJ per unit)
Energy intensity (optional) – the relevant
metric may be selected by the entity
a. Intensity per manhours worked 0.02 0.02
b. Intensity per Facility Size G / sq.m 0.65 0.66
c. Intensity G per Head count 65.75 40.47
Intensity in terms of physical output of products is computed by considering number of equivalent units
manufactured / assembled by the Company.
The revenue from operations has been adjusted for PPP based on the latest PPP conversion factor
published for the year 2022 by OECD for India which is 22. 2 INR/USD (Source: https://data.oecd.org/
conversion/purchasing-power-parities-ppp.htm).
Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external
agency ( /N) If yes, name of the external agency.
es, reasonable assurance has been carried out by Price Waterhouse Co Chartered Accountants LLP.
2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance,
Achieve and Trade (PAT) Scheme of the Government of India ( /N) If yes, disclose whether targets
set under the PAT scheme have been achieved. In case targets have not been achieved, provide the
remedial action taken, if any.
The PAT scheme of the Government of India is not applicable to the Company.
3. Provide details of the following disclosures related to water, in the following format:

Water withdrawal by source ( in kilolitres)
(i) Surface water - -
(ii) Groundwater 61,055 2, 51
(iii) Third party water 6,554 69,570
(iv) Seawater / desalinated water - -
(v) Others 0.062 -
Total volume of water withdrawal 147,609 152,421
( in kilolitres) ( i + ii + iii + iv + v )
Total volume of water consumption 145,4 7 151,026
( in kilolitres)
Water intensity per rupee of turnover 0.0000017 0.0000020
(Total water consumption / Revenue from
operations) ( L / INR)
Water intensity per rupee of turnover 0.000037 0.0000454
( PPP)
(Total water consumption / Revenue
from operations adjusted for PPP) ( L / INR
adjusted for PPP)
Water intensity in terms of physical 1.1619 1.0769
Output ( K L per unit)
Water intensity (optional) – the relevant
metric may be selected by the Entity
a. Intensity L per manhours worked 0.01 0.01
b. Intensity L per Facility Size / sq.m 0.47 0.50
c. Intensity L per Head count 47.34 30.42

Water withdrawal / water consumption includes 15,1 5. L water for one of the Company’s sites where
water is sent to the facility owner (third party) for recycle and is rerouted for reuse in the site’s washrooms.
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external
4. Provide the following details related to water discharged:

Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water - -
- No treatment - -
- With treatment – please specify level of - -
treatment
(ii) To Groundwater - -
- No treatment - -
treatment
(iii) To Seawater
- No treatment - -
treatment
(iv) Sent to third-parties - -
- No treatment 2,123 1,395
treatment
(v) Others - -
- No treatment
treatment
Total water discharged ( in kilolitres) 2,123 1,395
5. Has the entity implemented a mechanism for ero Liquid Discharge If yes, provide details of its coverage
and implementation.
es.
The company has installed wastewater treatment systems across all its eligible facilities resulting in
ero Liquid Discharge. All sewage generated in the Company’s facilities is treated in the in-house

sewage treatment plants and the recycled water is used for garden irrigation, Heating Ventilation and Air
Conditioning (HVAC) and toilet flushing purposes, etc.
6. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:
Parameter Please FY 2023-24 FY 2022-23

specify unit ( Current Financial ( Prev ious Financial
Year) Year)
NOx g 1 1,240 16 ,204
Sox g 4,145 3, 60
Particulate matter (PM) g 12,724 11, 14
Persistent organic pollutants (POP) NA NA NA
Volatile organic compounds (VOC) g 23,401 20,749
Hazardous air pollutants (HAP) NA NA NA
Others please specify NA NA NA
No.
7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) its intensity, in the
following format:

Year) Year)
Total Scope 1 emissions Metric tonnes ,270 7, 33
(Break-up of the GHG into CO2, of CO2
CH4, N2O, HFCs, PFCs, SF6, NF3, if equivalent
available)
Total Scope 2 emissions (Break-up Metric tonnes 17,099 17,592
of the GHG into CO2, CH4, N2O, HFCs, of CO2
PFCs, SF6, NF3, if available) equivalent
Total Scope 1 and Scope 2 emission 0.00000029 0.00000033
intensity per rupee of turnover (Total
Scope 1 and Scope 2 GHG emissions
/ Revenue from operations) (MT CO2e
/ INR)
Total Scope 1 and Scope 2 emission 0.0000066 0.0000076
intensity per rupee of turnover
adjusted for Purchasing Power
Parity ( PPP) (Total Scope 1 and Scope
2 GHG emissions / Revenue from
operations adjusted for PPP)
(MT CO2e / INR adjusted for PPP)

Year) Year)
Total Scope 1 and Scope 2 emission 0.2026 0.1 09
intensity in terms of physical output
( MT CO2e per unit)
Total Scope 1 and Scope 2 emission
intensity (optional) – the relevant
a. Intensity per manhours worked 0.0023 0.0022
b. Intensity per Facility Size / sq.m 0.0 0.0
c. Intensity per Head count 5.56 5.11
. Does the entity have any project related to reducing Greenhouse Gas emission If yes, then provide
details.
es.
Greenhouse Gas reduction initiatives undertaken by the Company include:
Develop energy monitoring and dashboard strategy

Replacement of legacy manufacturing equipment with energy efficient equipment
Use solar power for respective sites’ power requirement
The key initiatives include energy-efficient Heating Ventilation and Air Conditioning (HVAC) and lighting,
waste reduction/recycling/reuse and water consumption reduction. The Company creates awareness
amongst its employees to identify projects related to reducing Green House Gas emission.
9. Provide details related to waste management by the entity, in the following format:

Total Waste generated ( in metric tonnes)
Plastic waste ( A) 120.42 12
E-waste ( B) 5.51 4.1
Bio-medical waste ( C) 0.04 0.03

Construction and demolition waste ( D) 1,476. 3 10, 5.96
Battery waste ( E) 16.63 0.0
Radioactive waste ( F) - -
Other Hazardous waste. Please specify, if 405.53 403
any. ( G)
Other Non-hazardous waste generated ( H) . 5,001.49 4,610.26
Please specify, if any. (Break-up by
composition i.e. by materials relevant to the
sector)
Total ( A+ B + C + D + E + F + G + H) 7,026.45 16,031.51
Waste intensity per rupee of turnover (Total 0.0000001 0.0000002
waste generated/ Revenue from operations)
(MT / INR)
Waste intensity per rupee of turnover 0.000001 0.000004
( PPP) (Total waste generated / Revenue
from operations adjusted for PPP) (MT / INR
adjusted for PPP)
Waste intensity in terms of physical output 0.0561 0.1143
(MT per unit)
Waste intensity (optional) - the relevant
Manhours 0.0006 0.0014
Facility size / sq.m 0.0226 0.0526
Headcount 2.29 3.23
For each category of waste generated, total waste recovered through recycling, re-using or
other recov ery operations ( in metric tonnes)
Category of waste
(i) Recycled 7,005.17 16,029.51
(ii) Re-used - -
(iii) Other recovery operations 21.2 2
Total 7,026.45 16,031.51
For each category of waste generated, total waste disposed by nature of disposal method
( in metric tonnes)
Category of waste
(i) Incineration - -
(ii) Landfilling - -
(iii) Other disposal operations - -
Total - -

The Company has reported quantities based on waste disposal. There is no significant gap between
waste generated and waste disposal. The Company has disposed waste aggregating 21 MT to third party
authorised waste handler which is further converted into heat / energy. This is disclosed as total waste
recovered under “Other recovery operations”.
10. Briefly describe the waste management practices adopted in your establishments. Describe the strategy
adopted by your company to reduce usage of hazardous and toxic chemicals in your products and
processes and the practices adopted to manage such wastes.
The Company follows the principles of the waste management hierarchy of reduce, reuse, recycle and
recovery. For reducing the Company’s waste, it emphasizes having a cross-functional approach through
manufacturing process redesign, improved waste segregation, increased employee engagement and
proactive supplier partnerships. The Company also continues to make capital investments in equipment
that facilitate waste reduction and increases its ability to recycle. Also, product substitutions have had a
significant impact on the company’s reduction of hazardous waste generation.
11. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife
sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.)
where environmental approvals / clearances are required, please specify details in the following format:
S. Location of Type of Whether the conditions of environmental approval / clearance

No. operations/ Operations are being complied with? ( Y/ N)
offices If no, the reasons thereof and corrective action taken, if any.
The Company has no facilities in ecologically sensitive areas
12. Details of environmental impact assessments of projects undertaken by the entity based on applicable
laws, in the current financial year:
Name and brief details EIA Date Whether Results Relev ant Web
of project Notification conducted by communicated link
No. independent in public domain
external ( Yes / No)
agency
( Yes / No)
No EIA required for any of the Company’s facilities
13. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the
Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment
protection act and rules thereunder ( /N) If not, provide details of all such non-compliances, in the
following format:
es.

S. Specify the law / regulation Prov ide Any fines / penalties / Correctiv e
No. / guidelines which was not details of action taken by regulatory action taken
complied with the non- agencies such as pollution if any
compliance control boards or by courts
-
1. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):
For each facility / plant located in areas of water stress, provide the following information:
(i) Name of the area

(ii) Nature of operations
(iii) Water withdrawal, consumption and discharge in the following format:
The Company does not have any of its facilities located in areas of water stress.

Water withdrawal by source ( in kilolitres)
(i) Surface water Not Applicable
(ii) Groundwater
(iii) Third party water
(iv) Seawater / desalinated water
(v) Others
Total volume of water withdrawal (in kilolitres)
Total volume of water consumption (in kilolitres)
Water intensity per rupee of turnover (Water consumed /
turnover)
Water intensity (optional) – the relevant metric may be
selected by the entity
Waste intensity per rupee of turnover (Total waste
generated/ Revenue from operations) (MT / INR)

Water discharge by destination and level of treatment (in kilolitres)
(i) Into Surface water Not Applicable
- No treatment
- With treatment – please specify level of treatment
(ii) Into Groundwater
- No treatment
(iii) Into Seawater
- No treatment
(iv) Sent to third-parties
- No treatment
(v) Others
- No treatment
Total water discharged ( in kilolitres)
The Company does not have any of its facilities located in areas of water stress and hence independent
assessments are not carried out.
2. Please provide details of total Scope 3 emissions and its intensity, in the following format:
Parameter Unit FY 2023-24 FY 2022-23

( Current Financial ( Prev ious Financial
Year) Year)
Total Scope 3 emissions Metric tonnes
(Break-up of the GHG into CO2, CH4, N2O, of CO2
HFCs, PFCs, SF6, NF3, if available) Equivalent
Total Scope 3 emissions per rupee of
-
turnov er
Total Scope 3 emission intensity
(optional) – the relevant metric may be
selected by the entity
3. With respect to the ecologically sensitive areas reported at uestion 11 of Essential Indicators above,
provide details of significant direct and indirect impact of the entity on biodiversity in such areas along-
with prevention and remediation activities.
The Company has no facilities in ecologically sensitive areas.

4. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve
resource efficiency, or reduce impact due to emissions / e uent discharge / waste generated, please
provide details of the same as well as outcome of such initiatives, as per the following format:
Sr. Initiativ e undertaken Details of the initiative (Web-link, Outcome of the

No if any, may be provided along- initiativ e
with summary)
The company continues to take initiatives to create products with better fuel efficiency, etc.
5. Does the entity have a business continuity and disaster management plan Give details in words / web
link:
es. The Company has a holistic business governance structure and Business Continuity Management
(BCM) derived basis global standards of business resilience and ISO 22301:2012 Societal Security -
Business Continuity Management Systems. BCM is focused on continually improving the resilience of
the Company ensuring seamless continuity of business. BCM identifies potential risks to the Company
as well as the impacts to business operations. This provides a framework for building organizational
resilience with the capability to provide effective response and recovery plans which safeguard the
interests of the Company, its stakeholders, reputation, brand and value-creating activities. The Company
continuously works on embedding business resilience in the Company’s practices and increasing site
preparedness to establish efficacy of responses and achieve effective recovery.
6. Disclose any significant adverse impact to the environment, arising from the value chain of the entity.
What mitigation or adaption measures have been taken by the entity in this regard
Not available.
7. Percentage of value chain partners (by value of business done with such partners) that were assessed
for environmental impacts.
Not available.
PRINCIPLE 7 Businesses, when engaging in influencing public and regulatory policy, should do so in
a manner that is responsible and transparent
1. a. Number of affiliations with trade and industry chambers/ associations
The Company is a member of 5 trade and industry chamber/ associations.
b. List the top 10 trade and industry chambers/ associations (determined based on the total members
of such body) the entity is a member of/ affiliated to.
S. Name of the trade and industry chambers/ Reach of trade and industry
No. associations chambers / associations ( State/
National)
1. Confederation of Indian Industry (CII) National
2. Society of Indian Automobile Manufacturers (SIAM) National
3. US-India Strategic Partnership Forum (USISPF) National
4. Automotive Research Association of India (ARAI) National
5. Indo American Chamber of Commerce National

2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct
by the entity, based on adverse orders from regulatory authorities.
Name of authority Brief of the case Correctiv e action taken

No adverse order has been received by the Company.
1. Details of public positions advocated by the entity:
S. Public Method Whether Frequency of Review by Web Link, if

No. policy resorted information Board (Annually/ alf av ailable
adv ocated for such av ailable in public yearly/ Quarterly / Others –
adv ocacy domain? ( Yes/ No) please specify)
-
PRINCIPLE 8 Businesses should promote inclusive growth and equitable development
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable
laws, in the current financial year.
The Company has not acquired any land during the year that requires Social Impact Assessment under
the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement
Act, 2013, and its subsequent amendments.
Name and SIA Date of Whether conducted Results Relev ant Web
brief details of Notification notification by independent communicated in link
project No. external agency public Domain
( Yes / No) ( Yes / No)
Not applicable
2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R R) is being
undertaken by your entity, in the following format:
S. Name of Project State District No. of Project % of PAFs Amounts paid to

No. for which R&R is Affected Families cov ered by PAFs in the FY ( In
ongoing ( PAFs) R&R INR)
Not applicable
3. Describe the mechanisms to receive and redress grievances of the community.
At each of the Company’s facilities, community members can reach out to designated persons to register
their grievances or submit their grievances on a designated e-mail ID.
Corporate Social Responsibility (CSR) team (through Cummins India Foundation - implementing agency)
and its NGO partners work together on various community projects and act as the focal point for the
community to submit and redress grievances related to such projects. ey concerns, if any, are reviewed
with the CSR Committee and the Board and guidance/ feedback provided by them is actioned.

The Company also has an ethics helpline, providing a reporting platform for internal and external
stakeholders including communities where issues related to ethics and compliance, or any other kind
can be reported anonymously.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
FY 2023-24 FY 2022-23
Directly sourced from MSMEs/ small 21% 26%
producers
Directly from within India 7% 7%
5. ob creation in smaller towns – Disclose wages paid to persons employed (including employees or
workers employed on a permanent or non-permanent / on contract basis) in the following locations, as %
of total wage cost:
Location FY 2023-24 FY 2022-23

Rural - -
Semi-urban .1% .3%
Urban 4.1% 3.7%
Metropolitan 7.9% .0%
(Place to be categorized as per RBI Classification System - rural/semi-urban/urban/metropolitan)
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact
Assessments (Reference: uestion 1 of Essential Indicators above):
Details of negative impact identified Correctiv e action taken

- -
2. Provide the following information on CSR projects undertaken by your entity in designated aspirational
districts as identified by government bodies:
Sr. No State Aspirational District Amount spent ( in INR)

1 harkhand Ranchi 610,000
2 Madhya Pradesh Vidisha 2,974,7 1
3 Madhya Pradesh Guna 3,992,765
4 Maharashtra Dharashiv 20,12 ,007
5 Maharashtra Nandurbar 22,500,000
3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers
comprising marginalized/vulnerable groups ( es/No)
No.

The Company is impartial in its supplier selection and procurement processes.
(b) From which marginalized/vulnerable groups do you procure
The Company is impartial in its supplier selection and procurement processes.
(c) What percentage of total procurement (by value) does it constitute
Not applicable.
4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your
entity (in the current financial year), based on traditional knowledge:
S. Intellectual Property based Owned/ Acquired Benefit shared Basis of calculating

No. on traditional knowledge ( Yes/ No) ( Yes/ No) benefit share
-
5. Details of corrective actions taken or underway, based on any adverse order in intellectual property
related disputes wherein usage of traditional knowledge is involved.
Name of authority Brief of the Case Correctiv e action taken

No adverse orders received by the Company during the year
6. Details of beneficiaries of CSR Projects:
The Company carries out its CSR activities through Cummins India Foundation. The Company focuses
on three priority areas: Higher Education, Energy and Environment and Equality of Opportunity while also
undertaking other strategic projects. Following table depicts the proportion of beneficiaries from various
CSR projects and belonging to the vulnerable and marginalized groups.
S. CSR Project No. of persons % of beneficiaries

no benefitted from from vulnerable and
CSR Projects. marginali ed groups
A Higher Education
1 Nurturing Brilliance 229 61%
2 Technical Education for Communities 544 %
3 Cummins College of Engineering for Women 77 100%
B Energy and Env ironment
1 Monsoon Resilient Maharashtra 11,74 6%
2 Water Neutrality Projects ,339 0%
3 Solid Waste Management 214,269 1%
4 Cleaner Air Better Life 43,000 0%
C Equality of Opportunity
1 Cummins Model village program under Rural 3 ,021 4%
Development (17 villages across India)
2 Cummins Support to NGOs under Local 404 100%
Community Care
3 Phaltan Model Town 23,310 64%

PRINCIPLE 9 Businesses should engage with and prov ide v alue to their consumers in a responsible
manner
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
The Company has multiple mechanisms for customers to raise complaints or provide feedback, which
include a Customer Relationship Management mobile application, 24x7 toll free number, e-mails, and
periodic meetings with customers. Issues are resolved systematically with the objective of ensuring
customer satisfaction. Customers can also provide real-time feedback on the quality of resolution.
Meetings between dealers, sales and service heads, and regular touchpoints with Generator Original
Equipment Manufacturer (GOEM) teams, are conducted to assess concerns on a monthly basis, where
customer complaints are discussed and plan of action is prepared for resolution of such complaints.
Net Promoter Survey (NPS) is a metric used in customer experience programs. Surveys are conducted
randomly with the end user customer (engine or equipment owners) and actions are undertaken to
improve customer satisfaction.
2. Turnover of products and/or services as a percentage of turnover from all products/service that carry
information about:
As a percentage to total turnov er

Environmental and social parameters 100%. The manuals accompanying the products include
relevant to the product necessary disclosures like safety guidelines, warnings while
Safe and responsible usage operating the engine/ generator, emission certification, etc.
It includes the process for recycling/ disassembly and the
Recycling and/or safe disposal
need to comply with all applicable regulatory requirements.
3. Number of consumer complaints in respect of the following:
Category FY 2023-24 Remarks FY 2022-23 Remarks

Receiv ed Pending Receiv ed Pending
the year end of year the year end of year
Data privacy - - Not - - Not
Advertising - - applicable - - applicable
Cyber-security - - - -
Delivery of essential
- - - -
Services
Restrictive Trade
- - - -
Practices
Unfair Trade Practices - - - -
Other 1,560 2 1,610 133

4. Details of instances of product recalls on account of safety issues:
Number Reasons for recall

Voluntary recalls - No instances of product recall.
Forced recalls -
5. Does the entity have a framework/ policy on cyber security and risks related to data privacy ( es/No). If
available, provide a web-link of the policy.
es.
The Policies related to cyber security and data privacy is available to the internal stakeholders on the
intranet.
6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery
of essential services; cyber security and data privacy of customers; re-occurrence of instances of product
recalls; penalty / action taken by regulatory authorities on safety of products / services.
The Company has not identified any incidents leading to regulatory issues / penalties from a cyber
security and data privacy of customers during the year.
7. Provide the following information relating to data breaches:
a. Number of instances of data breaches

b. Percentage of data breaches involving personally identifiable information of customers
c. Impact, if any, of the data breaches
There were no incidents of data breach for the Company during F 2023-24.
1. Channels / platforms where information on products and services of the entity can be accessed (provide
web-link, if available).
The information related to the products sold and services rendered by the Company are available on the
Company website at - https://www.cummins.com/en/in/investors/india-investors-overview.
2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or
services.
All requisite information and/ or instructions on safe and responsible usage of products and/or services
are contained in Operations and Maintenance manual. In addition, trainings/ sessions are conducted
periodically for customers for educating them on the safe usage of products.
3. Mechanism in place to inform consumers of any risk of disruption/ discontinuation of essential services.
The Company has not been classified as an essential service provider under the Essential Services Act.

4. Does the entity display product information on the product over and above what is mandated as per local
laws ( es/No/Not Applicable) If yes, provide details in brief. Did your entity carry out any survey with
regard to consumer satisfaction relating to the major products / services of the entity, significant locations
of operation of the entity or the entity as a whole ( es/No)
No. The Company does not display product information on the product over and above what is mandated
as per local laws.
es. The Company conducts periodic customer satisfaction surveys for major products and services.

Independent Practitioner s Reasonable Assurance Report on Identified Sustainability
Information in Cummins India Limited s Business Responsibility and Sustainability
Report pursuant to the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015
To the Board of Directors of Cummins India Limited
We have undertaken to perform a reasonable assurance engagement for Cummins India Limited (the
“Company”) vide our Engagement Letter dated anuary 11, 2024 read with addendum thereto dated May
24, 2024 in respect of the agreed Sustainability Information referred in “Identified Sustainability Information”
paragraph below (the “Identified Sustainability Information”) in accordance with the Criteria stated in the
“Criteria” paragraph below. The Identified Sustainability Information is included in the Business Responsibility
and Sustainability Report (“BRSR”) of the Company for the financial year ended March 31, 2024 pursuant
to the requirement of Regulation 34(2)(f) of the Securities and Exchange Board of India (“SEBI”) (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (the “LODR Regulations”). The
Reporting Boundary for BRSR is on a standalone basis as disclosed under uestion No. 13 of Section A of
the BRSR. This engagement was conducted by a team comprising of assurance practitioners and engineers/
environment experts.
Identified Sustainability Information
The Identified Sustainability Information for the financial year ended March 31, 2024, is as summarised in
Appendix 1 to this report.
Our reasonable assurance engagement was with respect to the financial year ended March 31, 2024
information only and we have not performed any procedures with respect to prior years or any other elements
included in the BRSR (other than those listed as BRSR Core PIs in Appendix 1) and, therefore, do not
express any opinion thereon.
Criteria
The criteria used by the Company to prepare the Identified Sustainability Information is the “BRSR Core”
as detailed in Appendix 1 to this report (the “Criteria”), which is a subset of the BRSR, consisting of a set of
ey Performance Indicators (“ PIs”) / metrics under nine Environmental, Social and Governance (“ESG”)
attributes, as specified by SEBI vide its circular SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated uly 12,
2023 (the “SEBI Circular”).
Management’ s Responsibilities
The Company’s Management is responsible for determining the Reporting Boundary of the BRSR, selecting
or establishing suitable criteria for preparing the Identified Sustainability Information, taking into account
applicable laws and regulations including the SEBI Circular, related to reporting on the Identified Sustainability
Information, identification of key aspects, engagement with stakeholders, content, preparation and presentation
of the Identified Sustainability Information in accordance with the Criteria. This responsibility includes
design, implementation and maintenance of internal control relevant to the preparation of the BRSR and
the measurement of Identified Sustainability Information, which is free from material misstatement, whether
due to fraud or error. The Management and the Board of Directors of the Company are also responsible for
overseeing that the Company’s compliance with the requirements of LODR Regulations and the SEBI Circular
in relation to the BRSR Core.
Inherent limitations in preparing the Identified Sustainability Information
The absence of a significant body of established practice on which to draw to evaluate and measure non-
financial information allows for different, but acceptable, measures and measurement techniques and can

affect comparability between entities. In addition, Greenhouse Gas (“GHG”) quantification is subject to inherent
uncertainty because of incomplete scientific knowledge used to determine emissions factors and the values
needed to combine emissions of different gases.
Our Independence and Quality Control
We have maintained our independence and confirm that we have met the requirements of the Code of Ethics
issued by the Institute of Chartered Accountants of India (“ICAI”) and the International Code of Ethics for
Professional Accountants (including International Independence Standards) (“IESBA Code”) issued by the
International Ethics Standard Board for Accountants, which is founded on the fundamental principles of
integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
Price Waterhouse Co Chartered Accountants LLP (the “Firm”) applies Standard on uality Control 1, “ uality
Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance
and Related Services Engagements”, the International Standard on uality Management (“IS M”) 1 “ uality
Management for Firms that perform Audits or Reviews of Financials Statements, or Other Assurance or
Related Services Engagements” and IS M 2 “Engagement uality reviews”, and accordingly maintains a
comprehensive system of quality control including documented policies and procedures regarding compliance
with ethical requirements, professional standards, and applicable legal and regulatory requirements.
Practitioner’ s Responsibilities
Our responsibility is to express a reasonable assurance opinion on the Identified Sustainability Information
based on the procedures we have performed and the evidence we have obtained.
We conducted our engagement in accordance with the Standard on Sustainability Assurance Engagements
(“SSAE”) 3000, “Assurance Engagements on Sustainability Information” and the Standard on Assurance
Engagements (“SAE”) 3410, “Assurance Engagements on Greenhouse Gas Statements”, both issued by the
Sustainability Reporting Standards Board of the ICAI and the International Standard on Assurance Engagement
(“ISAE”) 3000 (Revised), “Assurance Engagements other than Audits or Reviews of Historical Financial
Information” and the ISAE 3410 “Assurance Engagements on Greenhouse Gas Statements” both issued by
the International Auditing and Assurance Standards Board (collectively referred to as “the Standards”). These
Standards require that we plan and perform our engagement to obtain reasonable assurance about whether
the Identified Sustainability Information is prepared, in all material respects, in accordance with the Criteria.
A reasonable assurance engagement involves assessing the risks of material misstatement of the Identified
Sustainability Information whether due to fraud or error, responding to the assessed risks as necessary in the
circumstances.
The procedures we performed were based on our professional judgement and included inquiries, observation
of processes performed, inspection of documents, evaluating the appropriateness of quantification methods
and reporting policies, and agreeing or reconciling with underlying records.
Given the circumstances of the engagement, in performing the procedures referred above, we:
Obtained an understanding of the Identified Sustainability Information and related disclosures.
Obtained an understanding of the assessment criteria and their suitability for the evaluation and /or
measurements of the Identified Sustainability Information.
Made enquiries of Company’s Management, including those responsible for Sustainability, Environment
Social Governance (‘ESG’), Corporate Social Responsibility (‘CSR’), Human Resources (HR) etc., and
those with responsibility for managing the Company’s BRSR.

Obtained an understanding and performed an evaluation of the design of the processes, and controls for
managing, recording and reporting on the Identified Sustainability Information including at the sites and
corporate office visited. This did not include testing the operating effectiveness of management systems
and controls.
Based on the above understanding and the risks that the identified sustainability information may be
materially misstated, determined the nature, timing and extent of further procedures
Checked the consolidation for various sites and corporate office under the reporting boundary (as
mentioned in the BRSR) for ensuring the completeness of data being reported.
Performed substantive testing on a sample basis of the Identified Sustainability Information for various
sites and corporate office under the reporting boundary (as mentioned in the BRSR) to verify that data
had been appropriately measured with underlying documents recorded, collated and reported. This
includes assessing records and performed testing including recalculation of sample data.
Assessed the level of adherence to the BRSR format issued by Securities and Exchange Board of India
(SEBI) followed by the Company in preparing the BRSR.
Assessed the BRSR for detecting, on a test basis, any major anomalies between the information reported
in the BRSR on performance with respect to agreed information and relevant source data/information.
Where applicable for the Identified Sustainability Information in the BRSR, we have relied on the
information in the audited standalone financial statements of the Company for the year ended March 31,
2024 and the underlying trial balance.
Evaluated the reasonableness and appropriateness of significant estimates and judgments made by the
Management in the preparation of the Identified Sustainable Information.
Obtained representations from Company’s Management.
Exclusions
Our reasonable assurance scope excludes the following and therefore we do not express an opinion on the
same:
Operations of the company other than the Identified Sustainability Information listed in Appendix 1.
Aspects of the BRSR and data/ information (qualitative or quantitative) included in the BRSR other than
the Identified Sustainability Information.
Data and information outside the defined reporting period i.e., April 1, 2023 to March 31, 2024.
The statements that describe expression of opinion, belief, aspiration, expectation, aim or future intentions
provided by the Company and testing or assessing any forward-looking assertions and/or data.
Opinion
Based on the procedures performed and the evidence obtained, the Company’s Identified Sustainability
Information summarised in Appendix 1 and included in the BRSR for the financial year ended March 31, 2024
are prepared, in all material respects, in accordance with the Criteria.

Restriction on use
Our work was performed solely to assist you in meeting the reporting requirements. Our obligations in respect
of this report are entirely separate from, and our responsibility and liability is in no way changed by any other
role we may have as auditors of the Company or otherwise. This report has been issued solely at the request
of the Board of Directors of the Company to whom it is addressed, solely to comply with the requirement of
SEBI Circular and LODR Regulations, in reporting Company’s sustainability performance and activities and for
publishing the same as a part of the BRSR forming part of Company’s Annual Report. Accordingly, we accept
no liability to anyone, other than the Company. Our report should not be used for any other purpose or by any
person other than the addressees of our report. We do not accept or assume any liability or duty of care for any
other purpose or to any other person to whom this report is shown or into whose hands it may come without
our prior consent in writing.
For Price Waterhouse & Co Chartered Accountants LLP

Firm Registration Number: 304026E/E-300009
Jeetendra Mirchandani
Partner
Membership Number: 04 125
UDIN: 2404 125B GOUV4414
Place: Pune
Date: May 29, 2024

Appendix 1
Identified Sustainability Information (BRSR Core PIs)
Sr. No. Principle and Attribute Parameters ( K PIs) Assured

indicator reference*
1. Principle 6 – E7 Green-house gas 1. Total Scope 1 emissions (Break-up of the GHG into
(GHG) footprint CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available)
2. Total Scope 2 emissions (Break-up of the GHG (CO2e)
into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if
available)
3. GHG Emission Intensity (Scope 1 +2)
a) Total Scope 1 and Scope 2 emissions (MT) / Total
Revenue from Operations adjusted for PPP
b) Total Scope 1 and Scope 2 emissions (MT) / Total
Output of Product or Services
2. Principle 6 – E3 and Water footprint 1. Total water consumption
E4 2. Water consumption intensity
a) Water Intensity per rupee of turnover adjusted for
PPP
b) Water Intensity in terms of physical output
3. Water Discharge by destination and levels of Treatment
3. Principle 6 – E1 Energy Footprint 1. Total Energy Consumed

2. % of energy consumed from renewable sources
3. Energy intensity
a) Energy Intensity per rupee of turnover adjusted for
PPP
b) Energy Intensity in terms of physical output
4. Principle 6 – E9 Embracing 1. Plastic waste (A)
circularity- details 2. E-waste (B)
related to waste
3. Bio-medical waste (C)
management by
the entity 4. Construction and demolition waste (D)
5. Battery waste (E)
6. Radioactive waste (F)
7. Other Hazardous waste (G)
. Other Non-hazardous waste generated (H)
9. Total waste generated (A+B + C + D + E + F + G + H)
10.Waste intensity
a) Waste Intensity per rupee of turnover adjusted for
PPP
b) Waste Intensity in terms of physical output
11. For each category of waste generated, total waste
recovered through recycling, re-using or other recovery
operations
12.For each category of waste generated, total waste
disposed by nature of disposal method

Sr. No. Principle and Attribute Parameters ( K PIs) Assured
indicator reference*
5. Principle 3 – E1(C) Enhancing 1. Spending on measures towards well-being of
employee employees and workers- cost incurred as a % of total
wellbeing and revenue of the company
Principle 3 – E11 Safety 2. Details of safety related incidents for employees and
workers
a) Number of Permanent Disabilities
b) Lost Time Injury Frequency Rate (LTIFR) (per one
million-person hours worked)
c) No. of fatalities
6. Principle 5 – E3(b) Enabling Gender 1. Gross wages paid to females as a % of wages paid
Principle 5 – E7 Diversity in 2. Complaints on POSH
Business
a) Total Complaints on Sexual Harassment (POSH)
reported
b) Complaints on POSH as a % of female employees
/ workers
c) Complaints on POSH upheld
7. Principle – E4 Enabling Inclusive 1. Input material sourced from following sources as % of

Development total purchases –Directly sourced from MSMEs/ small
producers and directly from within India
Principle – E5 2. ob creation in smaller towns- wages paid to people
employed in smaller towns (permanent or non-
permanent/on contract) as % of total wage cost
. Principle 9 – E7 Fairness in 1. Instances involving loss/ breach of data of customers
Principle 1 – E Engaging with as a percentage of total data breaches or cyber security
Customers and events
Suppliers 2. Number of days of accounts payable
9. Principle 1 – E9 Open-ness of 1. Concentration of purchases sales done with trading
business houses, dealers, and related parties
a) Purchases from trading houses as % of total
purchases
b) Number of trading houses where purchases are
made from
c) Purchases from top 10 trading houses as % of total
purchases from trading houses
d) Sales to dealers / distributors as % of total sales
e) Number of dealers / distributors to whom sales are
made
f) Sales to top 10 dealers / distributors as % of total
sales to dealers / distributors
2. Loans and advances investments with related parties
Share of RPTs (as respective %age) in-
a) Purchases
b) Sales
c) Loans advances
d) Investments
*’E’ indicates Essential Indicator
STANDALONE
FINANCIAL STATEMENTS
ALONG WITH AUDIT REPORT
FOR FY 2023-24

Independent Auditor’ s Report
To the Members of Cummins India Limited
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying standalone financial statements of Cummins India Limited (“the
Company”), which comprise the Balance Sheet as at March 31, 2024, and the Statement of Profit and
Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of
Cash Flow for the year then ended, and notes to the standalone financial statements, including material
accounting policy information and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid standalone financial statements give the information required by the Companies Act, 2013
(“the Act”) in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, and
total comprehensive income (comprising of profit and other comprehensive income), changes in equity
and its cash flow for the year then ended.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section
143(10) of the Act. Our responsibilities under those Standards are further described in the “Auditor’s
Responsibilities for the Audit of the Standalone Financial Statements” section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India together with the ethical requirements that are relevant to our audit of the standalone
financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
K ey audit matters
4. ey audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the standalone financial statements of the current period. These matters were addressed in the
context of our audit of the standalone financial statements as a whole and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
K ey audit matter How our audit addressed the key audit matter
Assessment of warranty prov ision
(Refer to Note 39 (i) to the standalone financial We have performed following procedures:
statements) • Understood, evaluated, and tested the design
The Company provides warranty on sale of and operating effectiveness of the controls
engines to customers and recognizes provision in over estimation of warranty costs and related
respect of the costs expected to fulfil the warranty accruals.
obligation over the period/term of the warranty. Obtained an understanding of the warranty
In accordance with the requirements of Ind terms offered by the Company on sale of
AS 37 – Provisions, Contingent Liabilities products.
and Contingent Assets, the provision towards Assessed management’s estimation process
warranty obligation is estimated by the Company, by performing a historical trend analysis for
warranty cost accruals made in prior years.

primarily considering factors such as historical Evaluated the method used by management in
trend, average historical failure rate, estimation of making the accounting estimates by verifying
expected pattern of future claims and estimated source data for various input factors such as
replacement cost. In the case of voluntary historical trend, average historical failure rate,
extended warranty services offered pursuant to estimation of expected pattern of future claims
campaigns; management’s experts are involved and estimated replacement cost and enquiring
in the estimation of the failure rate during the with management’s experts.
period of campaign.
Verified the computation of provision for warranty
The estimation of warranty costs involves costs including testing of completeness,
significant management judgements and arithmetical accuracy and validity of the data
estimates as described above, and the amount is used in the warranty calculations.
significant to the financial statements.
Verified the computation for determining the
Accordingly, this has been considered as key present value in the case of warranty for periods
audit matter. exceeding one year.
Verified the adequacy of the disclosures in the
financial statements.
Based on the above audit procedures performed,
we did not find any material exceptions with regard
to the management assessment of provision for
warranty costs and the related disclosures thereof.
Other Information
5. The Company’s Board of Directors is responsible for the other information. The other information
comprises the information included in the annual report but does not include the standalone financial
statements and our auditor’s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of management and those charged with gov ernance for the Standalone Financial
Statements
6. The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with
respect to the preparation of these standalone financial statements that give a true and fair view of the
financial position, financial performance, changes in equity and cash flow of the Company in accordance
with the accounting principles generally accepted in India, including the Accounting Standards specified
under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating effectively

for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the standalone financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
7. In preparing the standalone financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the Company
or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also
responsible for overseeing the Company’s financial reporting process.
Auditor’ s responsibilities for the audit of the Standalone Financial Statements
. Our objectives are to obtain reasonable assurance about whether the standalone financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee
that an audit conducted in accordance with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these standalone financial statements.
9. As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional
scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances Under Section 143(3)(i) of the Act, we are also responsible
for expressing our opinion on whether the Company has adequate internal financial controls with
reference to standalone financial statements in place and the operating effectiveness of such
controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the standalone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the standalone financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.

10. We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
11. We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
12. From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the standalone financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
13. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central
Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure B a
statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
14. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far
as it appears from our examination of those books except for the matters stated in paragraph 14(h)
(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as
amended) (“the Rules”).
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the
Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in
agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards
specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2024, taken
on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024, from
being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the maintenance of accounts and other matters connected therewith, reference is
made to our remarks in paragraph 14(b) above on reporting under Section 143(3)(b) and paragraph
14(h)(vi) below on reporting under Rule 11(g) of the Rules.
(g) With respect to the adequacy of the internal financial controls with reference to standalone financial
statements of the Company and the operating effectiveness of such controls, refer to our separate
Report in “Annexure A”.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information
and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its
standalone financial statements – Refer Note 36 to the standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company during the year.
iv. (a) The management has represented that, to the best of its knowledge and belief, no funds
have been advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or kind of funds) by the Company to or in any other persons or
entities, including foreign entities (“Intermediaries”), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) The management has represented that, to the best of its knowledge and belief, no funds
have been received by the Company from any persons or entities, including foreign
entities (“Funding Parties”), with the understanding, whether recorded in writing or
otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries; and
(c) Based on such audit procedures that we considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (a) and (b) contain any material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance with Section
123 of the Act.
vi. Based on our examination, which included test checks, the Company has used accounting
software for maintaining its books of account which has a feature of recording audit trail (edit
log) facility. However, the audit trail feature did not operate throughout the year. Accordingly,
the question of our commenting on whether the audit trail was tampered with, does not arise.
15. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals
mandated by the provisions of Section 197 read with Schedule V to the Act.

Partner
UDIN: 2404 125B GOUS4 27

Place: Pune
Date: May 29, 2024

Annexure A to Independent Auditor’ s Report
Referred to in paragraph 14( g) of the Independent Auditor’ s Report of ev en date to the members of
Cummins India Limited on the standalone financial statements for the year ended March 31, 2024
Report on the Internal Financial Controls with reference to Standalone Financial Statements under
clause ( i) of sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls with reference to standalone financial statements
of Cummins India Limited (“the Company”) as of March 31, 2024 in conjunction with our audit of the
standalone financial statements of the Company for the year ended on that date.
Management’ s Responsibility for Internal Financial Controls
2. The Company’s management is responsible for establishing and maintaining internal financial controls
based on the internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting (“the Guidance Note”) issued by the Institute of Chartered Accountants
of India (“ICAI”). These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of
its business, including adherence to company’s policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting records, and the
timely preparation of reliable financial information, as required under the Act.
Auditor’ s Responsibility
3. Our responsibility is to express an opinion on the Company’s internal financial controls with reference
to standalone financial statements based on our audit. We conducted our audit in accordance with the
Guidance Note and the Standards on Auditing deemed to be prescribed under Section 143(10) of the
Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal
financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls with reference to standalone financial statements was
established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system with reference to standalone financial statements and their operating
effectiveness. Our audit of internal financial controls with reference to standalone financial statements
included obtaining an understanding of internal financial controls with reference to standalone financial
statements, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the
standalone financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the Company’s internal financial controls system with reference to standalone
Meaning of Internal Financial Controls with reference to Standalone Financial Statements
6. A company’s internal financial controls with reference to standalone financial statements is a process
designed to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of standalone financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal financial controls with reference to standalone
financial statements includes those policies and procedures that (1) pertain to the maintenance of

records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of standalone financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s
assets that could have a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls with reference to Standalone Financial Statements
7. Because of the inherent limitations of internal financial controls with reference to standalone financial
statements, including the possibility of collusion or improper management override of controls, material
misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation
of the internal financial controls with reference to standalone financial statements to future periods are
subject to the risk that the internal financial controls with reference to standalone financial statements
may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
. In our opinion, the Company has, in all material respects, an adequate internal financial controls system
with reference to standalone financial statements and such internal financial controls with reference to
standalone financial statements were operating effectively as at March 31, 2024, based on the internal
control over financial reporting criteria established by the Company considering the essential components
of internal control stated in the Guidance Note issued by ICAI.

Partner
UDIN : 2404 125B GOUS4 27

Place: Pune
Date: May 29, 2024

Annexure B to Independent Auditor’ s Report
Referred to in paragraph 13 of the Independent Auditor’s Report of even date to the members of Cummins
India Limited on the standalone financial statements for the year ended March 31, 2024
In terms of the information and explanations sought by us and furnished by the Company, and the books of
account and records examined by us during the course of our audit, and to the best of our knowledge and
belief, we report that:
i. (a) (A) The Company is maintaining proper records showing full particulars, including quantitative
details and situation, of Property, Plant and Equipment.
(B) The Company is maintaining proper records showing full particulars of Intangible Assets.
(b) The Property, Plant and Equipment are physically verified by the Management according to a
phased programme designed to cover all the items over a period of 2 years which, in our opinion, is
reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the
programme, the Property, Plant and Equipment has been physically verified by the Management
during the year and no material discrepancies have been noticed on such verification.
(c) The title deeds of all the immovable properties (other than properties where the Company is the
lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in Notes
2.1 to 3 to the standalone financial statements, are held in the name of the Company.
(d) The Company has chosen cost model for its Property, Plant and Equipment (including Right of
Use assets) and intangible assets. Consequently, the question of our commenting on whether the
revaluation is based on the valuation by a Registered Valuer, or specifying the amount of change,
if the change is 10% or more in the aggregate of the net carrying value of each class of Property,
Plant and Equipment (including Right of Use assets) or intangible assets does not arise.
(e) Based on the information and explanations furnished to us, no proceedings have been initiated
on or are pending against the Company for holding benami property under the Prohibition of
Benami Property Transactions Act, 19 (as amended in 2016) (formerly the Benami Transactions
(Prohibition) Act, 19 (45 of 19 )) and Rules made thereunder, and therefore the question of our
commenting on whether the Company has appropriately disclosed the details in the standalone
financial statements does not arise.
ii. (a) The physical verification of inventory excluding stocks with third parties has been conducted at
reasonable intervals by the Management during the year and, in our opinion, the coverage and
procedure of such verification by Management is appropriate. In respect of inventory lying with third
parties, these have substantially been confirmed by them. The discrepancies noticed on physical
verification of inventory as compared to book records were not 10% or more in aggregate for each
class of inventory.
(b) During the year, the Company has been sanctioned working capital limits in excess of Rs. 5 crores,
in aggregate, from banks on the basis of security of current assets. The Company has filed quarterly
returns or statements with such banks, which are in agreement with the unaudited books of account.
iii. (a) The Company has made investments in twenty mutual fund schemes, three certificate of deposit
schemes, four bond schemes and one non-convertible debenture scheme (Also, refer Note 9 to the
standalone financial statements).

(b) In respect of the aforesaid investments, the terms and conditions under which such investments
were made are not prejudicial to the Company’s interest.
The Company has not granted secured/ unsecured loans/advances in nature of loans, or stood
guarantee, or provided security to any parties. Therefore, the reporting under clause 3(iii)(c), (iii)(d),
(iii)(e) and (iii)(f) of the Order are not applicable to the Company.
iv. The Company has not granted any loans or made any investments or provided any guarantees or security
to the parties covered under Sections 1 5 and 1 6. Therefore, the reporting under clause 3(iv) of the
Order are not applicable to the Company.
v. The Company has not accepted any deposits or amounts which are deemed to be deposits referred in
Sections 73, 74, 75 and 76 of the Act and the Rules framed there under.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain
cost records as specified under Section 14 (1) of the Act in respect of its products. We have broadly
reviewed the same and are of the opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed examination of the records with a
view to determine whether they are accurate or complete.
vii. (a) In our opinion, the Company is regular in depositing the undisputed statutory dues, including goods
and services tax, provident fund, employees’ state insurance, labour welfare fund, income tax, sales
tax, service tax, duty of customs, value added tax, cess, and other material statutory dues, as
applicable, with the appropriate authorities. Also, refer note 36 to the financial statements regarding
management’s assessment on certain matters relating to provident fund.
(b) There are no statutory dues of provident fund, profession tax, labour welfare fund and employees’
state insurance which have not been deposited on account of any dispute. The particulars of other
statutory dues referred to in sub-clause (a) as at balance sheet date which have not been deposited
on account of a dispute, are as follows:
Name of the Statute Nature of dues Amount Period to Forum where

( Rs. in which the the dispute is
Cr) # amount pending
relates
Income Tax Act, 1961 Demand on account 6.81 AY 2006-07 High Court,
of corporate tax Mumbai
disallowances
Income Tax Act, 1961 Demand on account 0.13 AY 2016-17 Commissioner
of corporate tax of Income-tax
disallowances (Appeals)
Income Tax Act, 1961 Demand on account 1.68 AY 2018-19 Income Tax
of transfer pricing Appellate
adjustments and Tribunal
other corporate tax
disallowances

relates
The Maharashtra Demand on account 1.83 FY 1999-00 High Court,
Sales Tax on Transfer of Purchase Tax/ Mumbai
of property in goods Works contract
involved in the Tax and surcharge
execution of works thereon
Contract (Re-enacted)
Act, 1989
The Central Sales Tax Disallowances of 5.02 FY 2006-07 to Maharashtra
Act, 1956 / Bombay sales tax declaration (Net FY 2008-09 Sales Tax
Sales Tax Act, 1959 forms, disallowances of Tribunal, Pune
(B.S.T.) / of set off and interest amount
Maharashtra Value thereon, taxation of paid
Added Tax Act, 2002 sales turnover under under
B.S.T. Act, protest
disallowance of claim of Rs.
of VAT set-off and 0.50)
inter-state sale u/s
3(a) of C.S.T. Act,
1956.
The West Bengal VAT Levy of VAT under 0.05 FY 2005-06 Joint
Act, 2003 certain transactions. Commissioner
(Appeals) at
Asansol
Jharkhand Value Demand on account 0.11 FY 2010-11 Joint
Added Tax Act, 2005 of sales suppression Commissioner
and difference (Appeals) at
between road permit Ranchi
value and actual
stock transfer value.
The Madhya Pradesh Demand on account 2.21 FY 2015-16 Assistant
VAT Act, 2002 of disallowances Commercial
Tax Officer at
Singrauli
The Central Sales Tax Demand on account 0.13 FY 2015-16 Assistant
Act, 1956 of disallowances Commercial
Tax Officer at
Singrauli
The Entry Tax Act, Demand on account 0.35 FY 2015-16 Assistant
1976 of disallowances Commercial
Tax Officer at
Singrauli

relates
Tamil Nadu Value Disallowance of Nil FY 2009-10 to Sales Tax
Added Tax Act, 2006 input tax credit on (Net of FY 2014-15 Appellate
clearance to SE unit amount Tribunal,
paid Chennai
under
protest
of Rs.
1.60)
The Central Sales Tax Disallowances of Nil FY 2004-05 Joint
Act, 1956/Bombay sales tax declaration (Net of Commissioner
Sales Tax Act, 1959 forms, disallowances amount of Sales Tax,
(B.S.T.)/Maharashtra of set off and interest paid Appeal - 1,
Value Added Tax Act, thereon, taxation under Pune
2002 of sales turnover protest
under B.S.T. Act, of Rs.
disallowance of claim 0.50)
of VAT set-off and
4.35 FY 2017-18
inter-state sale u/s
3(a) of C.S.T. Act,
1956
Finance Act, 1994 Disallowance of 2.00 FY 2010-11 to CESTAT
CENVAT credit on FY 2015-16
input services
Demand for short 1.28 FY 2014-15
/ non- payment of
Service Tax (Demand
for service tax on
sales commission)
Customs Act, 1962 Rejection of duty 12.96 FY 2005-06 to Commissioner
drawback claim. FY 2009-10 Appeals
# Excluding interest and penalty
viii. There are no transactions previously unrecorded in the books of account that have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
ix. (a) The Company has not defaulted in repayment of loans or other borrowings or in the payment of
interest to any lender during the year.
(b) On the basis of our audit procedures, we report that the Company has not been declared Wilful
Defaulter by any bank or financial institution or government or any government authority.
(c) The Company has not obtained any term loans. Accordingly, reporting under clause 3(ix)(c) of the
Order is not applicable to the Company.

(d) According to the information and explanations given to us, and the procedures performed by us, and
on an overall examination of the standalone financial statements of the Company, we report that no
funds raised on short-term basis have been utilised for long-term purposes by the Company.
(e) On an overall examination of the standalone financial statements of the Company, we report that the
Company has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiary, associate or joint venture.
(f) According to the information and explanations given to us and procedures performed by us, we
report that the Company has not raised loans during the year on the pledge of securities held in its
subsidiary, joint venture or associate company.
x. (a) The Company has not raised any money by way of initial public offer or further public offer (including
debt instruments) during the year. Accordingly, the reporting under clause 3(x)(a) of the Order is not
(b) The Company has not made any preferential allotment or private placement of shares or fully or
partially or optionally convertible debentures during the year. Accordingly, the reporting under clause
3(x)(b) of the Order is not applicable to the Company.
xi. (a) During the course of our examination of the books and records of the Company, carried out in
accordance with the generally accepted auditing practices in India, we have neither come across
any instance of material fraud by the Company or on the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
(b) During the course of our examination of the books and records of the Company, carried out in
accordance with the generally accepted auditing practices in India, a report under Section 143(12)
of the Act, in Form ADT-4, as prescribed under rule 13 of Companies (Audit and Auditors) Rules,
2014 was not required to be filed with the Central Government. Accordingly, the reporting under
clause 3(xi)(b) of the Order is not applicable to the Company.
(c) During the course of our examination of the books and records of the Company carried out in
accordance with the generally accepted auditing practices in India, the Company has received
whistle-blower complaints during the year, which have been considered by us for any bearing on our
audit and reporting under this clause.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the reporting
under clause 3(xii) of the Order is not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of
Sections 177 and 1 of the Act. The details of related party transactions have been disclosed in the
financial statements as required under Indian Accounting Standard 24 “Related Party Disclosures”
specified under Section 133 of the Act. Also refer note 41 to the standalone financial statements for the
‘Related Party Disclosure’.
xiv. (a) In our opinion, the Company has an internal audit system commensurate with the size and nature
of its business.
(b) The reports of the Internal Auditor for the period under audit have been considered by us.

xv. In our opinion, the Company has not entered into any non-cash transactions with its directors or persons
connected with him. Accordingly, the reporting on compliance with the provisions of Section 192 of the
Act under clause 3(xv) of the Order is not applicable to the Company.
xvi. (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India
Act, 1934. Accordingly, the reporting under clause 3(xvi)(a) of the Order is not applicable to the
Company.
(b) The Company has not conducted non-banking financial/housing finance activities during the year.
Accordingly, the reporting under clause 3(xvi)(b) of the Order is not applicable to the Company.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by
the Reserve Bank of India. Accordingly, the reporting under clause 3(xvi)(c) of the Order is not
(d) Based on the information and explanations provided by the management of the Company, the
Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) does not
have any CICs, which are part of the Group. We have not, however, separately evaluated whether
the information provided by the management is accurate and complete. Accordingly, the reporting
under clause 3(xvi)(d) of the Order is not applicable to the Company.
xvii. The Company has not incurred any cash losses in the financial year or in the immediately preceding
financial year.
xviii. There has been no resignation of the statutory auditors during the year and accordingly the reporting
under clause 3(xviii) of the Order is not applicable.
xix. On the basis of the financial ratios (Also refer Note 45 to the standalone financial statements), ageing
and expected dates of realisation of financial assets and payment of financial liabilities, other information
accompanying the standalone financial statements, our knowledge of the Board of Directors and
management plans and based on our examination of the evidence supporting the assumptions, nothing
has come to our attention, which causes us to believe that any material uncertainty exists as on the date
of the audit report that the Company is not capable of meeting its liabilities existing at the date of balance
sheet as and when they fall due within a period of one year from the balance sheet date. We, however,
state that this is not an assurance as to the future viability of the Company. We further state that our
reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor
any assurance that all liabilities falling due within a period of one year from the balance sheet date will
get discharged by the Company as and when they fall due.

xx. (a) In respect of other than ongoing projects, as at balance sheet date, the Company does not have
any amount remaining unspent under Section 135(5) of the Act. Accordingly, reporting under clause
3(xx)(a) of the Order is not applicable.
(b) The Company has transferred the amount of Corporate Social Responsibility remaining unspent
under sub-section (5) of Section 135 of the Act pursuant to ongoing projects to a special account in
compliance with the provision of sub-section (6) of Section 135 of the Act. Also, refer Note 42 to the
standalone financial statements.
xxi. The reporting under clause 3(xxi) of the Order is not applicable in respect of audit of Standalone Financial
Statements. Accordingly, no comment in respect of the said clause has been included in this report.

Partner
UDIN : 2404 125B GOUS4 27

Place: Pune
Date: May 29, 2024

BALANCE SHEET
AS AT MARC 31, 2024
Crore
As at As at
Particulars Notes
March 31, 2024 March 31, 2023
ASSETS
Non-current assets
Property, plant and equipment 2.1 1,157.56 1,132.04
Capital work-in-progress (including investment property in progress) 2.3 94.65 41.29
Right-of-use assets 37 30.56 33.15
Investment properties 3 977.31 1,019.04
Intangible assets 2.2 129.68 37.77
Intangible assets under development 2.3 2.16 -
Financial assets
Investments in a subsidiary, joint ventures and an associate 4 37.24 37.24
Other non-current financial assets 5 13.36 11.74
Income tax assets (net) 6 57.84 35.53
Other non-current assets 7 93.97 96.02
2,594.33 2,443.82
Current assets
Inventories 8 936.88 886.15
Financial assets
Investments 9 1,178.19 1,047.92
Trade receivables 10 2,077.60 1,592.73
Cash and cash equivalents 11 291.77 391.27
Other bank balances 12 1,212.89 989.54
Other current financial assets 13 37.13 42.20
Other current assets 14 166.99 117.27
Assets classified as held for sale 15 2.69 1.14
5,904.14 5,068.22
TOTAL 8,498.47 7,512.04
EQUITY AND LIABILITIES
Equity
Equity share capital 16 55.44 55.44
Other equity
Retained earnings 17 4,934.62 4,150.00
Other reserves 17 1,173.03 1,162.54
6,163.09 5,367.98
Non-current liabilities
Financial liabilities
Lease liabilities 37 14.37 17.32
Other non-current financial liabilities 18 61.28 40.79
Provisions 19 117.96 101.60
Deferred tax liabilities (net) 20 94.10 105.70
Other non-current liabilities 21 11.96 3.27
299.67 268.68
Current liabilities
Borrowings 22 100.00 350.04
Trade payables
Total outstanding dues of micro and small enterprises 23 71.25 69.14
Total outstanding dues of creditors other than micro and small enterprises 23 1,331.10 1,076.83
Other current financial liabilities 24 147.30 100.52
Other current liabilities 25 216.85 136.56
Provisions 19 163.08 137.04
2,035.71 1,875.38
8,498.47 7,512.04
The accompanying notes are an integral part of these financial statements.
As per our report of even date
For Price Waterhouse & Co Chartered Accountants LLP For and on behalf of the Board
ICAI Firm Registration Number : 304026E/E-300009
Jeetendra Mirchandani Ashwath Ram Nasser Munjee
Partner Managing Director Director
Membership Number: 4 125 DIN: 00149501 DIN: 000101 0
Place: Dubai
Vinaya Joshi Ajay Patil
Company Secretary Chief Financial Officer
PAN: AM P 5216P PAN: AA PP9246
Place: Pune Place: Pune
Date: May 29, 2024 Date: May 29, 2024

STATEMENT OF PROFIT AND LOSS FOR
T E EAR ENDED MARC 31, 2024
Crore
Year ended Year ended

Particulars Notes
March 31, 2024 March 31, 2023
Revenue from operations 26 8,958.60 7,744.43
Other income 27 567.79 419.99
Total income 9,526.39 8,164.42
Expenses:
Cost of materials consumed 28.1 4,849.51 4,599.51
Purchases of traded goods 906.91 749.35
Change in inventories of finished goods, work-in-progress and traded goods 28.2 13.63 (117.93)
Employee benefits expense 29 779.30 629.83
Finance costs 30 26.78 15.78
Depreciation and amortisation expense 2, 3, 37 157.64 140.45
Other expenses 31 647.87 641.06
Total expenses 7,381.64 6,658.05
Profit before exceptional items and tax 2,144.75 1,506.37
Exceptional items (expense) / income 47 (1.70) (14.30)
Profit before tax 2,143.05 1,492.07
Tax expense
Current tax 20 507.08 353.60
Deferred tax 20 ( .92) 7.29
Tax for earlier years (15.73) 1.36
Total tax expense 482.43 362.25
Profit after tax 1,660.62 1,129.82
Other Comprehensiv e Income ( OCI)

Items not to be reclassified to profit or loss in subsequent periods
Remeasurement (loss) / gain on defined benefit plans (21.67) 5.44
Income tax effect 5.45 (1.37)
Net other comprehensive (expense) / income not to be reclassified to profit or loss in subsequent periods (16.22) 4.07
Items to be reclassified to profit or loss in subsequent periods

Changes in the fair value of financial instruments (0.62) (0.13)
Income tax effect 0.16 0.03
Net other comprehensive (expense) / income to be reclassified to profit or loss in subsequent periods (0.46) (0.10)
Other comprehensive (expense) / income for the year, net of tax (16.6 ) 3.97
Total comprehensive income for the year, net of tax 1,643.94 1,133.79
Earnings per equity share:

Basic and diluted earnings per share ( ) 32 59.91 40.76
(Nominal value per share 2)

Place: Dubai
Date: May 29, 2024 Date: May 29, 2024

STATEMENT OF CASH FLOW FOR THE
YEAR ENDED MARCH 31, 2024
₹ Crore
Year ended Year Ended

Particulars
March 31, 2024 March 31, 2023
I. Cash generated from operating activities
a) Adjustments to reconcile profit before tax to net cash flows
Depreciation and amortisation expense 157.64 140.45
Finance costs 26.78 15.78
Interest income (120.62) (73.62)
Dividend income (189.95) (112.07)
Loss/(gain) on assets sold, discarded, etc. (1.57) (2.48)
(Gain)/loss on redemption /sale of investments (net) (52.20) (43.89)
Equity contribution from Holding company 10.49 5.23
Unrealised foreign exchange fluctuation (net) (14.16) (14.07)
Mark to market ('MTM') of financial instruments 0.31 0.02
Provision for doubtful debts (net) 0.26 0.42
Exceptional items (Note 47) 1.70 14.30
(181.32) (69.93)
b) Working capital adjustments
Trade receivables (484.40) (344.37)
Inventories (50.73) (157.36)
Current and non-current financial assets (1.12) 7.01
Other current and non-current assets (48.82) 30.94
Trade payables 249.47 143.45
Current and non-current financial liabilities 65.10 18.95
Other current and non-current liabilities 75.45 27.41
Current and non-current provisions 10.59 14.91
(184.46) (259.06)
Total adjustments (a+b) (365.78) (328.99)
Cash generated from operating activities 1,777.27 1,163.08
Tax paid (net of refunds and interest thereon) (497.20) (351.99)
Net cash generated from operating activities 1,280.07 811.09
II. Cash flows (used in) / from investing activities

(285.06) (161.68)
Purchase of property, plant and equipment, intangible assets and investment property
Proceeds from sale of property, plant and equipment 6.02 7.31

Intangible assets under development (2.16) 0.41
Interest received 120.62 73.62
Dividend received on investments in associate and joint ventures 189.95 112.07
Investments
Sale/(Purchase) of short term investments (net) (78.07) (426.38)
Term deposits with banks (218.62) 464.02
Net cash (used in) / from investing activities (267.32) 69.37

STATEMENT OF CASH FLOW FOR THE
EAR ENDED MARC 31, 2024
Crore

Particulars
March 31, 2024 March 31, 2023
III. Cash flows (used in) / from financing activities
Proceeds from borrowings / repayment (net) (250.04) (43.27)
Finance costs (17.26) (12.5 )
Payment of principal portion of lease liabilities (5.97) (4. 6)
Dividend paid (including tax on dividend) ( 59.32) (623.70)
Net cash (used in) / from financing activities (1,132.59) (684.41)
IV. Net change in cash and cash equiv alents ( I+ II+ III) (119.84) 196.05
V. Net foreign exchange difference 20.34 17.80
VI. Cash and cash equiv alents at the beginning of the year 391.27 177.42
VII. Cash and cash equiv alents at the end of the year ( IV+ V+ VI) 291.77 391.27
Components of cash and cash equiv alents
Cash on hand - 0.01
Bank Balances
In current accounts 116.20 161.23
Deposits with banks (original maturity less than 3 months) 175.57 230.03
Total cash and cash equiv alents ( Refer note 11) 291.77 391.27


Place: Dubai


Date: May 29, 2024 Date: May 29, 2024

STATEMENT OF CHANGES IN EQUITY
FOR T E EAR ENDED MARC 31, 2024
A) Equity share capital
Particulars Crore
As at April 1, 2022 55.44
Changes in equity share capital during the year ended March 31, 2023 -
As at March 31, 2023 55.44
As at March 31, 2024 55.44
B) Other equity
Crore
Retained earnings (Refer note 17) Other reserves (Refer note 17)
Equity
contribution
Particulars Other General Capital Total
Statement of from
comprehensiv e reserv e redemption
profit and loss Cummins Inc.
income ( OCI) reserv e
- share based
payments*
Balance as at April 1, 2022 3,679.96 (40.05) 1,142.02 0.70 14.59 4,797.22
Add: Profit for the year 1,129.82 - - - - 1,129.82
Add/(Less): Other comprehensive income
- Items not to be reclassified to profit or loss in
- 4.07 - - - 4.07
subsequent periods
- Items to be reclassified to profit or loss in
- (0.10) - - - (0.10)
subsequent periods
Total comprehensiv e income for the year 1,129.82 3.97 - - - 1,133.79
Add: Equity contribution during the year - - - 5.23 5.23
Less: Dividends paid
- Interim dividend 332.64 - - - - 332.64
- Final dividend for F 2021-2022 291.06 - - - - 291.06
Balance as at March 31, 2023 4,186.08 (36.08) 1,142.02 0.70 19.82 5,312.54
Add: Profit for the year 1,660.62 - - - 1,660.62
Add/(Less): Other comprehensive income
- (16.22) - - - (16.22)
subsequent periods
- (0.46) - - - (0.46)
subsequent periods
Total comprehensiv e income for the year 1,660.62 (16.68) - - - 1,643.94
Add: Equity contribution during the year - - - 10.49 10.49
- Final dividend for F 2022-2023 360.36 - - - - 360.36
* Scheme managed and administered by the Holding Company.

Place: Dubai
Date: May 29, 2024 Date: May 29, 2024

Notes to standalone financial statements for the year
ended March 31, 2024
1A Material accounting policy information
a) Corporate information:
Cummins India Limited (‘CIL’ or ‘the Company’) is a public company domiciled in India and is
incorporated under the provisions of the Companies Act applicable in India. The Company’s
shares are listed on two recognised stock exchanges in India. The registered office of the
Company is located at Cummins India Office Campus, Balewadi, Pune. The Company is
engaged in the business of manufacturing, trading and selling of engines and allied activities.
(CIN : L29112PN1962PLC012276)
The standalone financial statements for the year ended March 31, 2024 were authorised for
issue in accordance with the resolution of the directors on May 29, 2024.
b) Basis of preparation:
The financial statements of the Company have been prepared in accordance with Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards)
Rules, 2015 (as amended from time to time) and presentation requirements of division II of
schedule III to the Companies Act, 2013 (Ind AS compliant schedule III).
The financial statements are prepared on a historical cost basis, except for the following assets
and liabilities:
- certain financial assets and financial liabilities (including derivative instruments) which have
been measured at fair value,
- assets held for sale are measured at lower of carrying amount or fair value less cost to sell
- defined benefit plans - Plan assets are measured at fair value
All assets and liabilities have been classified as current and non-current as per the Company’s
normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013.
Based on the nature of products and services and the time between the acquisition of assets
for processing and their realisation in cash and cash equivalents, the Company has ascertained
its operating cycle as 12 months for the purpose of current and non-current classification of
assets and liabilities. Deferred tax assets and liabilities are classified as non-current assets and
liabilities.
c) Fair v alue measurements
The Company measures financial instruments at fair value on initial recognition and at each
balance sheet date.
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. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:

i) In the principal market for the asset or liability or
ii) In the absence of a principal market, in the most advantageous market for the asset or
liability,
The principal or the most advantageous market must be accessible by the Company. The fair
value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic
best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy. This is described, as follows, based on the lowest
level input that is significant to the fair value measurement as a whole:
i) Level 1 — uoted (unadjusted) market prices in active markets for identical assets or
liabilities
ii) Level 2 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable
iii) Level 3 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.
For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level
of the fair value hierarchy as explained above. This note summarises accounting policy for fair
value.
For assets and liabilities that are recognised in the financial statements on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy by
re-assessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
Other fair value related disclosures are given in the relevant notes:
Disclosures for valuation methods, significant estimates and assumptions (Refer note 35 and
44)
Financial instruments (including those carried at amortised cost) (Refer note 4, 5, 9 to 13)
Investment properties (Refer note 3 and 44)

d) Property, plant and equipment and investment properties
Property plant and equipment, capital work in progress and investment properties are stated at
cost of acquisition or construction net of accumulated depreciation and impairment loss (if any).
All significant costs relating to the acquisition and installation of property plant and equipment/
investment properties are capitalised. Subsequent costs are included in the asset’s carrying
amount or recognised as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Company and the cost of the item
can be measured reliably. The carrying amount of the replaced part is derecognised. All other
repairs and maintenance are charged to the Statement of Profit and Loss during the financial
year in which they are incurred. When significant parts of plant and equipment are required to
be replaced at intervals, the Company depreciate them separately based on their specific useful
lives.
Depreciation is computed on straight line method based on useful lives, determined based on
internal technical evaluation, as follows:
Assets Useful life

Roads 10 years
Office building and investment properties Upto 60 years
Factory building 30 years
Plant and machinery 3 to 15 years
Furniture and fittings 5 to 10 years
Vehicles 8 to 9 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the
end of each reporting period.
Freehold land is carried at cost. Losses arising from the retirement of, and gains and losses
arising from disposal of property, plant and equipment which are carried at cost are recognised
in the Statement of Profit and Loss.
Leasehold improvements are amortised on straight line basis over the period of lease.
Transfers are made to investment properties only when there is a change in use. Transfers
between investment property and owner-occupied property do not change the carrying amount
of the property transferred and they do not change the cost of that property for measurement or
disclosure purposes.
e) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following
initial recognition, intangible assets are carried at cost less any accumulated amortisation and
accumulated impairment losses. Intangible assets with finite useful life are amortised over their
respective useful lives and assessed for impairment whenever there is an indication that the
intangible asset may be impaired.

Softwares are amortised over a period of useful lives from the date of purchase/date of
completion of development and put to use (3-5 years), being the estimated useful life as per
the management estimate or license term whichever is less. The amortisation period for an
intangible asset with finite useful life is reviewed atleast at the end of each reporting period.
Losses arising from the retirement of, and gains and losses arising from disposal of intangible
assets which are carried at cost are recognised in the Statement of Profit and Loss.
f) Inv entories
Inventories are valued at the lower of cost and net realisable value after providing for
obsolescence.
Costs incurred in bringing each product to its present location and condition are accounted for
as follows:
Raw materials : cost includes cost of purchase and other costs incurred in bringing the inventories
to their present location and condition.
Finished goods and work in progress : cost includes cost of direct materials and labour and a
proportion of manufacturing overheads based on the normal operating capacity.
Traded goods : cost includes cost of purchase and other costs incurred in bringing the inventories
Material cost is determined on weighted average basis. Net realisable value is the estimated
selling price in the ordinary course of business, less estimated costs of completion and the
estimated costs necessary to make the sale. Material in transit is valued at cost incurred till
date.
g) Foreign currency transactions
The Company’s financial statements are presented in INR ( ), which is also the functional
currency of the Company.
Transactions in foreign currencies are accounted at the functional currency spot rates prevailing
on the date of transactions. Monetary foreign currency financial assets and liabilities are
translated at functional currency spot rates of exchange at the reporting date. The resulting
exchange differences are appropriately recognised in the Statement of Profit and Loss.
Non-monetary items that are measured in terms of historical costs in a foreign currency are
translated using the exchange rates at the dates of the initial transactions. Non - monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value is determined. The gain or loss arising on translation of non- monetary items
measured at fair value is treated in line with the recognition of the gain or loss on the change in
the fair value of the item.

h) Rev enue recognition
i) Rev enue from sale of products
Revenue from contracts with customers for sale of products is recognised, generally at a
point in time, when control of the goods is transferred to the customer at an amount that
reflects the transaction price which is the consideration that the Company expects to be
entitled in exchange for those goods, excluding taxes or duties collected on behalf of the
government e.g. goods and service tax (GST). The Company has generally concluded that
it is the principal in its revenue arrangements.
ii) Volume rebates
The Company provides retrospective volume rebates to certain customers once the
quantity of products purchased by them during the period exceeds a threshold specified
in the contract. Rebates are offset against amounts payable by the customer and are
reduced from revenue. To estimate the variable consideration for the expected future
rebates, the Company applies the most likely amount method for contracts with a single-
volume threshold and the expected value method for contracts with more than one volume
threshold. The selected method that best predicts the amount of variable consideration is
primarily driven by the number of volume thresholds contained in the contract.
iii) Warranty obligations
The Company typically provides warranties for general repairs of defects that existed at
the time of sale. These assurance-type warranties are accounted for under Ind AS 37
Provisions, Contingent Liabilities and Contingent Assets.
iv ) Sale of serv ices - installation serv ices
The Company provides installation services that can be either sold separately or bundled
together with the sale of products to a customer. The installation services can be obtained
from other providers and do not significantly customise or modify the product sold.
Contracts for bundled sales of products and installation services are comprised of two
performance obligations because the promises to transfer products and provide installation
services are capable of being distinct and separately identifiable. Accordingly, the Company
allocates the transaction price based on the relative standalone selling prices of the products
and installation services.
The Company recognises revenue from installation services over time, using an output
method to measure progress towards complete satisfaction of the service, because the
customer simultaneously receives and consumes the benefits provided by the Company.
Revenue from sale of products is recognised at a point in time, generally upon delivery of
the products.

v ) Sale of serv ices - serv ice contracts
The Company has long-term service contracts with customers. Revenue from service
contracts is recognised over time i.e based on the proportionate completion method.
Completion is determined as a proportion of costs incurred till date to the total estimated
contract costs. Provision is made for any loss in the period in which it is foreseen. The
Company considers that this method is an appropriate measure of the progress towards
complete satisfaction of these performance obligations under Ind AS 115.
In case of other service contracts, revenue is recognized over time, using input/output
method, when services are rendered and on receipt of confirmation from customers, as the
case may be.
v i) Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred
to the customer. If the Company performs by transferring goods or services to a customer
before the customer pays the consideration or before payment is due, a contract asset is
recognised for the earned consideration that is conditional.
v ii) Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which
the Company has received consideration (or an amount of consideration is due when
billing has been done) from the customer. If a customer pays consideration before the
Company transfers goods or services to the customer, a contract liability is recognised
when the payment is made or the payment is due (whichever is earlier). Contract liabilities
are recognised as revenue when the Company performs under the contract.
v iii) Trade receiv ables
A receivable represents the Company’s right to an amount of consideration that is

unconditional (i.e. only the passage of time is required before payment of the consideration
is due).
ix) Interest income is recognised using effective interest rate method (‘EIR’). EIR is the rate
that exactly discounts the estimated future cash payments or receipts over the expected
life of the financial instrument or a shorter period, where appropriate, to the gross amount
of the financial asset or to the amortised cost of a financial liability. When calculating EIR,
the Company estimates the expected cash flows by considering all the contractual terms of
the financial instrument but doesn’t consider the expected credit losses. Interest income is
included in Other Income in the Statement of Profit and Loss.
x) Rental income is recognised on straight-line basis over the lease term, other than escalations
on account of inflation.
xi) Dividend income from investments is recognised when the right to receive payment is

established.
i) Leases
The Company assesses at contract inception whether a contract is, or contains, a lease. That
is, if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.
Company as a lessee
The Company applies a single recognition and measurement approach for all leases, except
for short-term leases and leases of low-value assets. The Company recognises lease liabilities
to make lease payments and right-of-use assets representing the right to use the underlying
assets.
Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the
date the underlying asset is available for use). Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment losses, and adjusted for any remeasurement of
lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised,
initial direct costs incurred, and lease payments made at or before the commencement date
less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis
over the shorter of the lease term and the estimated useful lives of the assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the
cost reflects the exercise of a purchase option, depreciation is calculated using the estimated
useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the
accounting policies in section “o” impairment of non-financial assets.
Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured
at the present value of lease payments to be made over the lease term. The lease payments
include fixed payments (including insubstance fixed payments) less any lease incentives
receivable, variable lease payments that depend on an index or a rate, and amounts expected
to be paid under residual value guarantees.
In calculating the present value of lease payments, the Company uses its incremental borrowing
rate at the lease commencement date because the interest rate implicit in the lease is not
readily determinable. After the commencement date, the amount of lease liabilities is increased
to reflect the accretion of interest and reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease
term, a change in the lease payments (e.g., changes to future payments resulting from a change
in an index or rate used to determine such lease payments) or a change in the assessment of
an option to purchase the underlying asset.

Short-term leases and leases of low-v alue assets
The Company applies the short-term lease recognition exemption to its short-term leases of
offices and warehouses. It also applies the lease of low-value assets recognition exemption to
leases of office equipment that are considered to be low value. Lease payments on short-term
leases and leases of low-value assets are recognised as expense on a straight-line basis over
the lease term.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards incidental
to ownership of an asset are classified as operating leases. Rental income arising on such
leases is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred
in negotiating and arranging an operating lease are added to the carrying amount of the leased
asset and recognised over the lease term on the same basis as rental income. Contingent rents
are recognised as revenue in the period in which they are earned.
j) Employee benefits
The Company operates following post-employment schemes, including both defined benefit
and defined contribution plans.
A) Post-employment benefits
i) Defined contribution plans:
A defined contribution plan is a plan under which the Company pays fixed contributions
into a separate entity. The Company has no legal or constructive obligations to pay
further contributions if the fund does not hold sufficient assets to pay all employees the
benefits relating to employee service in the current and prior periods. The Company has
defined contribution plans for post employment benefits in the form of superannuation
fund for management employees and provident fund for non management employees
which is administered by Life Insurance Corporation of India/regional provident
fund commissioner. In case of superannuation fund for management employees
and provident fund for non management employees, the Company has no further
obligation beyond making the contributions. The contributions are accounted for as
employee benefit expense when they are due. Prepaid contribution is recognised as
an asset to the extent cash refund or reduction in future contribution is available.
ii) Defined benefit plans:
Funded Plan: The Company has defined benefit plans for post-employment benefits
in the form of gratuity for all employees, pension for non management employees and
provident fund for management employees which are administered through Company
managed trust/Life Insurance Corporation of India.

Unfunded Plan: The Company has unfunded defined benefit plans in the form of post
retirement medical benefits (PRMB) and ex-gratia benefits as per the policy of the
Company.
Liability for above defined benefit plans is provided on the basis of valuation, as at the
Balance Sheet date, carried out by an independent actuary. The actuarial method used
for measuring the liability is Projected Unit Credit method. In case of provident fund for
management employees, the Company has an obligation to make good the shortfall, if
any, between the return from the investments of the trust and the notified interest rate.
The Company’s contributions and such shortfall are charged to the Statement of Profit
and Loss as and when incurred.
Net interest is calculated by applying the discount rate to the net defined benefit
liability or asset. The Group recognises the following changes in the net defined benefit
obligation as an expense in the consolidated statement of profit and loss:
- Service costs comprising current Service costs, past-Service costs, gains and
losses on curtailments and non-routine settlements; and
- Net interest expense or income
Re-measurements, comprising of actuarial gains and losses, the effect of the asset
ceiling (excluding amounts included in net interest on the net defined benefit liability)
and the return on plan assets (excluding amounts included in net interest on the net
defined benefit liability), are recognised immediately in the Balance Sheet with a
corresponding debit or credit to retained earnings through OCI in the period in which
they occur. Re-measurements are not reclassified to profit or loss in subsequent
periods.
B) Other employee benefit (unfunded)
Liability for compensated absences is provided on the basis of valuation, as at the Balance
Sheet date, carried out by an independent actuary. The actuarial valuation method used
for measuring the liability is Projected Unit Credit method. Under this method, projected
accrued benefit is calculated at the beginning of the year and again at the end of the year
for each benefit that will accrue for active members of the plan. The “projected accrued
benefit” is based on the plan’s accrual formula and upon service as of the beginning or end
of the year, but using a member’s final compensation, projected to the age at which the
employee is assumed to leave active service. The plan liability is the actuarial present value
of the “projected accrued benefits” as of the beginning of the year for active members.
Termination benefits are recognized as an expense as and when incurred.
The present value of defined benefit obligation denominated in INR ( ) is determined by

discounting the estimated future cash flows by reference to the market yield at the end of
the reporting period on the government bonds that have terms approximately equal to the
terms of the related obligation.

k) Research and dev elopment costs
Research costs are expensed as incurred. Development expenditures on an individual project

are recognised as an intangible asset when the Company can demonstrate:
- The technical feasibility of completing the intangible asset so that the asset will be available
for use or sale
- Its intention to complete and its ability and intention to use or sell the asset
- How the asset will generate future economic benefits
- The availability of resources to complete the asset
- The ability to measure reliably the expenditure during development
Following initial recognition of the development expenditure as an asset, the asset is carried
at cost less any accumulated amortisation and accumulated impairment losses. Amortisation
of the asset begins when development is complete and the asset is available for use. It is
amortised over the period of expected future benefit. Amortisation expense is recognised in
the statement of profit and loss unless such expenditure forms part of carrying value of another
asset. During the period of development, the asset is tested for impairment annually.
l) Income tax
The tax expense for the year comprises current and deferred tax. Tax is recognised in the
Statement of Profit and Loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, as the case may be.
Current tax is measured at the amount expected to be paid to the tax authorities in accordance
with the taxation laws prevailing and applicable for the relevant assessment year. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. It establishes provisions where appropriate on the
basis of amounts expected to be paid to the tax authorities.
Deferred income taxes are recognised for the future tax consequences attributable to temporary
differences between the financial statement carrying amounts of existing assets and liabilities
and their tax bases in the financial statements. The effect on deferred tax assets and liabilities of
a change in the tax rates is recognised using the tax rates and tax laws that have been enacted
or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised only
to the extent that it is probable that future taxable profit will be available against which the
temporary differences can be utilized. Deferred tax assets and deferred tax liabilities are offset,
if a legally enforceable right exists to set-off current tax assets against current tax liabilities and
the deferred tax assets and deferred tax liabilities relate to the same taxable entity and the same
taxation authority.
m) Prov isions and contingent liabilities
A provision is recognised when there is a present legal or constructive obligation as a result of

past event; it is probable that an outflow of resources will be required to settle the obligation, and
in respect of which a reliable estimate can be made. These are reviewed at each Balance Sheet
date and adjusted to reflect the current best estimates. A disclosure for a contingent liability is
made where there is a possible obligation arising out of past event, the existence of which will
be confirmed only by the occurrence or non occurrence of one or more uncertain future events
not wholly within the control of the Company or a present obligation arising out of past event
where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.
If the effect of the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting
is used, the increase in the provision due to the passage of time is recognised as a finance
cost.
n) Impairment of non financial assets
The Company tests non financial assets for impairment at the close of the accounting period if
and only if there are indications that suggest a possible reduction in the recoverable value of an
asset. If the recoverable value of an asset, i.e. the net realizable value or the economic value in
use of a cash generating unit, is lower than the carrying amount of the asset, the difference is
provided for as impairment. However, if subsequently the position reverses and the recoverable
amount becomes higher than the then carrying value the provision to the extent of the then
difference is reversed, but not higher than the amount provided for.
o) Cash and cash equiv alents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-
term deposits with an original maturity of three months or less, that are readily convertible to a
known amount of cash and subject to an insignificant risk of changes in value.
p) Gov ernment grants
Government grants are recognised where there is reasonable assurance that the grant will be
received and all attached conditions will be complied with. When the grant relates to an expense
item, it is recognised as income on a systematic basis over the periods that the costs, which it
is intended to compensate, are expensed.
Where the grant relates to an asset, it is either recorded as deferred income and is recognised
as income on a systematic and rational basis over the useful life of the asset, or adjusted
against the cost of the asset.
When the Company receives non-monetary grants, the asset and the grant are recorded at
fair value and released to profit or loss over the expected useful life of the asset, based on the
pattern of consumption of the benefits of the underlying asset by equal annual instalments.
When loans or similar assistance are provided by governments or related institutions with an
interest rate below the current applicable market rate, the effect of this favourable interest is
regarded as a government grant. The loan or assistance is initially recognized and measured at

fair value and the government grant is measured as the difference between the initial carrying
value of the loan and the proceeds received. The loan is subsequently measured as per the
accounting policy applicable to financial liabilities.
q) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial assets
All financial assets are recognized initially at fair value plus, in the case of financial assets
not recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. Trade receivables that do not contain a significant financing
component are measured at transaction price. For all subsequent measurements financial
assets are classified in following categories:
A) Debt instruments
i) Debt instruments at amortised cost: Debt instrument is measured at amortised cost if

the asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and contractual terms of the asset give rise on specified dates
to cash flow that are solely payments of principal and interest (SPPI) on the principal
amount outstanding.
This category is most relevant to the Company. After initial measurement, such assets
are subsequently measured at amortised cost using the effective interest rate (EIR).
Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees for cost that are an integral part of the EIR. EIR amortisation is
included in other income in the Statement of Profit and Loss. This category generally
applies to loans and trade and other receivables.
ii) Debt instruments fair value through OCI (FVTOCI): Debt instrument is classified
as FVTOCI if the financial asset is held within a business model whose objective is
achieved by both collecting contractual cash flows and selling financial assets 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.
When the financial asset is derecognised, the cumulative gain or loss previously
recognised in OCI is reclassified from equity to profit or loss and recognised in other
gains/(losses).
iii) Debt instruments at fair value through profit and loss (FVTPL): Debt instruments not
classified as amortised cost or FVTOCI are classified as FVTPL. The Company has
not classified any debt under this category.

B) Equity instruments
Equity instruments held for trading are classified as FVTPL. For all other equity instruments,
the Company may make an irrevocable election to present in OCI the subsequent changes
in fair value. The Company makes such election on an instrument by instrument basis. If the
Company decides to classify an equity instrument as FVTOCI, then all fair value changes
on the instrument, excluding dividends are recognized in OCI. There is no recycling of the
amount from OCI to Statement of Profit and Loss. However, the Company may transfer the
cumulative gain or loss within equity.
The Company has elected to present all equity instruments, other than those in subsidiary,
joint ventures and associate, through FVTPL and all subsequent changes are recognized
in Statement of Profit and Loss.
C) Derecognition
A financial asset (or wherever applicable, a part of the financial asset or part of a group of
similar financial assets) is primarily derecognized when the rights to receive cash flow from
the assets have expired or the Company has transferred its rights to receive cash flows from
the asset or has assumed an obligation to pay the received cash flow in full to a third party
under a pass through arrangement and either a) the Company has transferred substantially
all risks and rewards of the asset or b) has transferred control of the asset.
D) Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss and credit risk exposure on the financial
assets that are debt instruments measured at amortised costs e.g. loans, deposits, trade
receivables, lease receivable and bank balances.
The Company follows simplified approach for recognition of impairment loss allowance
on trade receivables and lease receivables. The application of simplified approach does
not require the Company to track changes in credit risk. Rather it recognizes impairment
loss allowance based on lifetime ECL’s at each reporting date, right from its initial
recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12 month ECL is used to provide for
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If
in subsequent period the credit risk reduces since initial recognition, then the entity reverts
to recognizing impairment loss allowance based on 12 month ECL.
As a practical expedient, the Company uses a provision matrix, based on the age of the
receivables classified into various age buckets, to determine impairment loss allowance
on portfolio of its trade receivables. The matrix is based on its historically observed default

rates over the expected life of the trade receivables and is adjusted for forward looking
estimates. At every reporting date, the historical observed default rates are updated and
changes in the forward looking estimates are analysed. The Company has presumed that
default doesn’t occur later than when a financial asset is 90 days past due.
Impairment loss allowance including ECL or reversal recognized during the period
is recognized as income/ expense in the Statement of Profit and Loss. This amount is
reflected under the head ‘Other Expenses’ in Statement of Profit and Loss. The impairment
loss is presented as an allowance in the Balance Sheet as a reduction from the net carrying
amount of the trade receivable, loan, deposits and lease receivable respectively.
Financial Liabilities
All financial liabilities are initially recognised at fair value. The Company’s financial liabilities
include trade and other payables, other financial liabilities, loans and borrowings and
derivative financial instruments.
Subsequent measurement of financial liabilities depends on their classification as FVTPL

or at amortised cost.
All changes in fair value of financial liabilities classified as FVTPL is recognized in the
Statement of Profit and Loss. Amortised cost category is applicable to loans and borrowings,
trade and other payables. After initial recognition the financial liabilities are measured at
amortised cost using EIR method. Gains and losses are recognized in Statement of Profit
and Loss when the liabilities are derecognized as well as through the EIR amortisation
process. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are integral part of EIR. EIR amortisation is included as
finance cost in the Statement of Profit and Loss.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged
or cancelled or expires. When an existing financial liability is replaced by another from
the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition of
the original liability and the recognition of the new liability. The difference in the respective
carrying amounts is recognized in the Statement of Profit and Loss.
Deriv ativ es
The Company uses derivative financial instruments such as forward currency contracts to
hedge its foreign currency risk. Such derivative financial instruments are initially recognized
at fair value on the date on which a derivative contract is entered and are subsequently
remeasured at fair value. Derivatives are carried as financial assets when the fair value
is positive and as financial liabilities when the fair value is negative. Any gains or losses
arising from changes in the fair value of derivatives are taken directly to the Statement of
Profit and Loss.

Embedded derivatives: An embedded derivative is a component of a hybrid (combined)

instrument that also includes a non-derivative host contract – with the effect that some of
the cash flows of the combined instrument vary in a way similar to a standalone derivative.
An embedded derivative causes some or all of the cash flows that otherwise would be
required by the contract to be modified according to a specified interest rate, financial
instrument price, commodity price, foreign exchange rate, index of prices or rates, credit
rating or credit index, or other variable, provided in the case of a non-financial variable that
the variable is not specific to a party to the contract. Reassessment only occurs if there
is either a change in the terms of the contract that significantly modifies the cash flows
that would otherwise be required or a reclassification of a financial asset out of the FVTPL
category.
If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109,
the Company does not separate embedded derivatives. Rather, it applies the classification
requirements contained in Ind AS 109 to the entire hybrid contract. Derivatives embedded
in all other host contracts are accounted for as separate derivatives and recorded at fair
value if their economic characteristics and risks are not closely related to those of the host
contracts and the host contracts are not held for trading or designated at fair value though
profit or loss. These embedded derivatives are measured at fair value with changes in fair
value recognised in Statement of Profit and Loss, unless designated as effective hedging
instruments.
Reclassification of financial instruments
After initial recognition, no reclassification is made for financial assets which are equity
instruments and financial liabilities. For financial assets, which are debt instruments, a
reclassification is made only if there is a change in the business model for managing those
assets. Changes to the business model are expected to be infrequent. If the Company
reclassifies the financial assets, it applies the reclassification prospectively from the
reclassification date which is the first day of the immediately next reporting period following
the change in the business model.
Offsetting financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount is reported in the Balance
Sheet if there is a currently enforceable legal right to offset the recognized amounts and
there is an intention to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.
r) Div idend distribution
The Company recognises a liability to pay dividend to equity holders of the Company when the
distribution is authorised and the distribution is no longer at the discretion of the Company.

1B Other accounting policies
a) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision-maker. The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating segments, has been identified
as the Board of Directors that makes strategic decisions.
b) Earning per Share ( EPS)
Basic earnings per share is calculated by dividing the net profit or loss attributable to equity holder
of the Company (after deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. Partly paid equity shares are
treated as a fraction of an equity share to the extent that they are entitled to participate in
dividends relative to a fully paid equity share during the reporting period. The weighted average
number of equity shares outstanding during the period is adjusted for events such as bonus
issue, bonus element in a rights issue, share split, and reverse share split (consolidation of
shares) that have changed the number of equity shares outstanding, without a corresponding
change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders of the Company and the weighted average number of
shares outstanding during the period are adjusted for the effects of all dilutive potential equity
shares.

205
Notes to standalone financial statements for the year ended March 31, 2024
2.1 Property, plant and equipment (PPE)

₹ Crore
Particulars Gross block Depreciation and Amortisation Net block
As at As at As at As at As at
Adjustment Deductions/ For the Adjustment Deductions /
April 1, Additions March 31, April 1, March 31, March 31,
** Write -off year ** Write -off
2023 2024 2023 2024 2024
Freehold land @ 29.72 - (0.03) - 29.69 - - - - - 29.69
Leasehold Improvements 10.99 0.42 0.03 - 11.44 0.71 0.15 - - 0.86 10.58
Roads 31.72 0.30 - - 32.02 23.03 0.81 - - 23.84 8.18
Buildings # 788.27 24.11 (4.07) 0.49 807.82 167.18 18.63 (3.36) 0.37 182.08 625.74
Plant and machinery # 1,139.96 98.04 (8.63) 47.12 1,182.25 694.06 68.28 (7.82) 42.77 711.75 470.50
Furniture and fittings # 49.66 0.57 0.48 0.52 50.19 34.35 4.15 0.50 0.54 38.46 11.73
Vehicles 4.54 0.49 (0.42) 0.08 4.53 3.49 0.36 (0.38) 0.08 3.39 1.14
2,054.86 123.93 (12.64) 48.21 2,117.94 922.82 92.38 (11.06) 43.76 960.38 1,157.56
2.2 Intangible assets

₹ Crore
2023 2024 2023 2024 2024
Software 10.15 6.89 - - 17.04 8.55 0.69 - - 9.24 7.80
Technical know-how 20.60 101.00 - - 121.60 20.60 8.40 - - 29.00 92.60
Development cost 48.25 - - - 48.25 12.08 6.89 - - 18.97 29.28
79.00 107.89 - - 186.89 41.23 15.98 - - 57.21 129.68
Annual Report 2023-2024 l

206
2.3 Capital work-in-progress (including investment property in progress) and intangible assets under development
₹ Crore
Particulars Additions Capitalisation

As at As at
Total Total
April 1, Intangible Investment Intangible March 31,
PPE Additions PPE
Investment Capitalisation
2023 assets properties assets properties 2024
Capital work-in-progress 41.29 178.33 - - 178.33 123.93 - 1.04 124.97 94.65
Intangible assets under - - 110.05 - 110.05 - 107.89 - 107.89 2.16

development
41.29 178.33 110.05 - 288.38 123.93 107.89 1.04 232.86 96.81
2.4 Capital work-in-progress (including investment property in progress) and intangible assets under development aging
schedule *
₹ Crore
Projects in progress Amount in CWIP for a period of Total

Less than 1 year 1-2 years 2-3 years More than 3 years
Capital work-in-progress 93.10 0.63 0.02 0.90 94.65
Intangible assets under development 2.16 - - - 2.16
95.26 0.63 0.02 0.90 96.81
*Capital work-in-progress includes projects amounting to ₹ 0.90 Crore whose completion is overdue on account of procedural delays and will be completed in the next 1 year.
NOTES:
@ 1) Includes reservations by Pune Municipal Corporation for Economically Weaker Section (EWS) and Road.
2) Includes undivided share of land, on purchase of office premises.
** includes reclassification from / to assets held for sale
# Includes certain assets given on cancellable/ non-cancellable operating lease

207

₹ Crore
2022 2023 2022 2024 2023
Freehold land @ 36.12 0.04 (6.44) - 29.72 - - - - - 29.72
Leasehold Improvements 6.07 4.92 - - 10.99 0.61 0.10 - - 0.71 10.28
Roads 30.60 1.12 - - 31.72 21.48 1.55 - - 23.03 8.69
Buildings # 848.65 27.68 (87.51) 0.55 788.27 161.01 17.74 (11.14) 0.43 167.18 621.09
Plant and machinery # 1,061.36 113.74 27.34 62.48 1,139.96 667.11 59.65 25.51 58.21 694.06 445.90
Vehicles 4.63 - 0.12 0.21 4.54 3.18 0.39 0.11 0.19 3.49 1.05
2,038.39 147.70 (65.81) 65.42 2,054.86 884.77 83.86 14.80 60.61 922.82 1,132.04

₹ Crore
2022 2023 2022 2024 2023
Software 6.72 3.43 0.08 0.08 10.15 6.30 2.25 0.06 0.06 8.55 1.60
Technical know-how 20.60 - - - 20.60 20.60 - - - 20.60 -
Development cost 48.25 - - - 48.25 6.89 5.19 - 12.08 36.17
75.57 3.43 0.08 0.08 79.00 33.79 7.44 0.06 0.06 41.23 37.77

208
₹ Crore
Particulars Additions Capitalisation

As at As at
Total Total
April 1, Intangible Investment Intangible March 31,
PPE Additions PPE
Investment Capitalisation
2022 assets properties assets properties 2023
Capital work-in-progress 60.37 128.16 - 1.82 129.98 147.70 - 1.36 149.06 41.29
Intangible assets under 0.41 - 3.02 - 3.02 - 3.43 - 3.43 -

development
60.78 128.16 3.02 1.82 133.00 147.70 3.43 1.36 152.49 41.29
schedule *
₹ Crore
Projects in progress Amount in CWIP for a period of Total

Less than 1 year 1-2 years 2-3 years More than 3 years
Intangible assets under development - - - - -
33.59 5.46 1.42 0.82 41.29
* Capital work-in-progress includes projects amounting to ₹ 2.77 Crore whose completion is overdue on account of procedural delays and will be completed in the next 1 year.
NOTES:
** includes reclassification from assets held for sale and to investment properties (Refer note 3)

3 Inv estment properties
Year ended
March 31, 2024 March 31, 2023
Crore Crore
Gross
Opening balance 1,260.19 1,165.77
Additions 1.04 1.36
Deductions - 0.93
Re-classification from property, plant and equipment - 93.99
Closing balance 1,261.23 1,260.19
Accumulated Depreciation
Opening balance 241.15 186.74
Depreciation 42.77 43.54
Deductions - 0.28
Closing balance 283.92 241.15
Net 977.31 1,019.04
Information regarding income and expenditure of inv estment properties
Year ended
March 31, 2024 March 31, 2023
Crore Crore
Rental income derived from investment properties 142.71 127.67
Direct operating expenses (including repairs and 11.78 10.57
maintenance) generating rental income
Profit arising from investment properties before 130.93 117.10
depreciation and indirect expenses
Less: Depreciation 42.77 43.54
indirect expenses
The investment properties consist of office premises and plants. As at March 31, 2024 the fair
value of the properties is 1,416.71 Crore (As at March 31, 2023: 1,453.73 Crore). These
fair values are based on valuations performed by a registered valuer as defined under rule 2 of
Companies (Registered Valuers and Valuation) Rules, 2017. A valuation model as recommended
by International Valuation Standards Committee has been applied. The Company considers factors
like management intention, terms of rental agreements, area leased out, life of the assets etc. to
determine classification of assets as investment properties. The rental income considered in the
table above is from the date of rental agreement or date of re-classification from property, plant and
equipment as applicable.

The Company has no restrictions on the realisability of its investment properties and no contractual
obligations to purchase, construct or develop investment properties or for repairs, maintenance
and enhancements. Fair value disclosures for investment properties are provided in Note 44.
Description of v aluation techniques used and key inputs to v aluation on inv estment
properties
Valuation technique Significant Range Range

unobserv able inputs ( weighted av erage) ( weighted av erage)
March 31, 2024 March 31, 2023
Income approach Estimated rental 31.50 - 131.46 31.50 - 131.46
(Discounted Cash flow value per sq ft per
(DCF) method) month
Rent growth p.a. 3% - 15% every 3 3% - 15% every 3
years or based on years or based on
market assessment market assessment
Discount rate 12.05% 10.92% to 11.92%
As per the DCF method, fair value is defined as the present value of future cash flows that can be
withdrawn from the Company. To estimate the cash flows available, projected cash flows of the
Company are considered for certain future years (explicit forecast period). Based on the projected
cash flows, the free cash flows from subject properties are estimated. The Company has discounted
the net cash flows to arrive at the present value of free cash flows. After the explicit period, the
subject properties will continue to generate cash. In DCF method, therefore, perpetuity value/
capitalized value/terminal value is also considered to arrive at the value of the subject properties.

4 Non-current investments
As at As at
March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023
Units Units ₹ Crore ₹ Crore
Investments in
subsidiary, joint-
venture and associate
Unquoted equity
instruments (at cost)
Investment in
subsidiary (fully paid
up)
1,20,00,000 1,20,00,000 Cummins Sales & 12.00 12.00
Service Private Limited
(% Holding: 100%)
(Incorporated in India)
Investment in joint
venture (fully paid up)
95,00,000 95,00,000 Valvoline Cummins 8.04 8.04
Private Limited
(% Holding: 50%)
Investment in
associate (fully paid
up)
7,79,997 7,79,997 Cummins Generator 17.20 17.20
Technologies India
Private Limited
(% Holding : 48.54%)
Total 37.24 37.24
5 Other non-current financial assets (carried at amortised cost)
As at
March 31, 2024 March 31, 2023
₹ Crore ₹ Crore
Unsecured, considered good
Security deposits 13.36 11.55
Employee benefit plan assets (Refer note 40) - 0.19
Total 13.36 11.74

6 Income tax assets (net)
As at
March 31, 2024 March 31, 2023
Crore Crore
Advance income tax (net of provision for taxation) 57.84 35.53
Total 57.84 35.53
7 Other non-current assets
As at
March 31, 2024 March 31, 2023
Crore Crore
Capital advances 49.60 50.75
Balances with statutory/government authorities 43.48 43.91
Others * 0.89 1.36
Total 93.97 96.02
* Others include prepaid expenses
8 Inventories
As at
March 31, 2024 March 31, 2023
Crore Crore
Raw materials and components (includes goods in transit) 518.55 454.31
Work-in-progress (includes goods lying with third parties) 197.34 206.64
Finished goods (includes goods in transit and lying with 196.74 202.99
third parties) *
Traded goods (includes goods in transit) 10.18 8.26
Stores and spares 4.58 5.64
Loose tools 9.49 8.31
Total 936.88 886.15
* During the year ended March 31, 2024 2.37 Crore (March 31, 2023: 0.71 Crore) was recognised
as an expense / (reversal) for inventories carried at net realisable value.

9 Current investments
As at As at
Current investments
Unquoted mutual funds
valued at fair value
through profit and loss
10,28,653 - Aditya Birla Sun Life 40.08 -
Liquid Fund - Growth-
Direct Plan
39,388 - Axis Liquid Fund - 10.49 -
Regular Growth
1,12,015 - Axis Liquid Fund - Direct 30.06 -
Growth
31,737 - HDFC Liquid Fund - 15.06 -
Direct Plan - Growth
Option
- 1,49,467 HDFC Liquid Fund - - 65.53
Regular Plan - Growth
43,501 43,501 HDFC Money Market 23.06 21.41
Fund - Direct Plan -
Growth Option
1,45,726 - HSBC Liquid Fund - 35.06 -
Direct Growth
6,65,554 6,65,554 ICICI Prudential Money 23.00 21.37
Market Fund - Growth
8,41,074 25,76,902 ICICI Prudential Liquid 30.06 85.86
Fund - Direct Plan -
Growth
61,611 2,22,188 Kotak Liquid Fund Direct 30.06 101.06
Plan Growth
77,663 - Kotak Money Market 31.77 -
Fund - Growth (Regular
Plan)
34,135 2,38,720 Nippon India Liquid Fund 20.17 131.46
- Direct Plan Growth Plan
Growth Option
70,084 - Nippon India Money 26.49 -
Market Fund - Growth
Plan Growth Option
53,017 3,14,680 SBI Liquid Fund Direct 20.04 110.87
Growth
78,59,615 - SBI Savings Fund - Direct 31.79 -
Plan - Growth

As at As at
89,370 - Tata Liquid Fund Direct 34.05 -
Plan - Growth
- 4,12,977 UTI Liquid Cash Plan - - 152.37
Direct Plan Growth
1,01,238 - UTI Liquid Fund - Direct 40.07 -
Plan Growth
Value of unquoted 441.31 689.93
mutual funds
Unquoted Certificate of
Deposit valued at fair
value through OCI
7,000 3,000 7.50% HDFC Bank 336.18 144.15
Limited
- 3,000 7.60% ICICI Bank Limited - 142.58
4,000 - 7.55% HDFC Bank 192.10 -
Limited
- 1,500 7.58% HDFC Bank - 71.26
Limited
2,000 - 7.84% HDFC Bank 95.06 -
Limited
Value of unquoted 623.34 357.99
certificate of deposit
Aggregate value of 1,064.65 1,047.92
unquoted investments
Other investments
Quoted Bonds/NCD
valued at fair value
through OCI
3,00,000 - Non Convertible 31.33 -
Debentures - 7.4500%
PFC
200 - 5.27% NABARD 20.57 -
23/07/2024
2,000 - REC/Bonds/227-A Series 20.65 -
2,000 - 7.79% SIDBI 2027-Series 20.45 -
VI of FY 2023-24
2,000 - REC/Bonds/ 229 A Series 20.54 -
Value of quoted Bonds/ 113.54 -
NCD
Aggregate value of 113.54 -
quoted investments
Total 1,178.19 1,047.92

10 Trade receiv ables ( carried at amortised cost)
As at
March 31, 2024 March 31, 2023
Crore Crore
Trade receivables 1,732.90 1,194.78
Receivables from related parties (Refer note 41) 344.70 397.95
Total 2,077.60 1,592.73
Break up for security details

Secured, considered good 291.70 378.19
Unsecured, considered good 1,785.90 1,214.54
Trade receivable which have significant increase in credit - -
risk
Trade receivable - credit impaired 6.08 6.69
2,083.68 1,599.42
Impairment loss allowance ( allowance for bad and
doubtful debts)
Unsecured, considered good - -
Provision for impairment - -
Trade receivable - credit impaired (6.0 ) (6.69)
(6.08) (6.69)
Total 2,077.60 1,592.73
No trade receivable or advances are due from directors or other officers of the Company either
severally or jointly with any other person. Trade or other receivable are due from firms or private
companies in which any director is a partner, a director or a member amounts to 13.16 Crore
(March 31, 2023: 16.49 Crore). Trade receivables are non interest bearing and are generally on
terms of 30 to 90 days.
For terms and conditions and transactions with related parties refer note 41.

Trade receivables aging schedule
Particulars As at Outstanding for following periods from due date of payment Total
Un- Not due Less 6 1-2 2-3 More

billed than 6 months years years than 3
months - 1 year years
(i) Undisputed March 31, 26.50 1,960.39 75.17 4.77 3.15 3.02 4.60 2,077.60
trade receivables - 2024
considered good March 31, 21.88 1,455.20 91.53 10.30 6.95 3.58 3.29 1,592.73
2023
(ii) Undisputed trade March 31, - - - - - - - -
receivables - which 2024
have significant
March 31, - - - - - - - -
increase in credit
2023
risk
(iii) Undisputed trade March 31, 0.13 - - 0.60 2.35 3.00 6.08
receivables - credit 2024
impaired March 31, - 0.10 0.52 0.09 2.35 0.10 3.53 6.69
2023
March 31, 26.50 1,960.52 75.17 4.77 3.75 5.37 7.60 2,083.68
2024
Total
March 31, 21.88 1,455.30 92.05 10.39 9.30 3.68 6.82 1,599.42
2023
11 Cash and cash equivalents (carried at amortised cost)
As at
March 31, 2024 March 31, 2023
₹ Crore ₹ Crore
Cash on hand - 0.01
Bank balances
Total 291.77 391.27

12 Other bank balances ( carried at amortised cost)
As at
March 31, 2024 March 31, 2023
Crore Crore
Unpaid dividend account (restricted) 13.26 12.79
Deposits with banks (original maturity more than 3 months 1,199.63 976.75
but less than 1 year)
Total 1,212.89 989.54
13 Other current financial assets

(carried at amortised cost, other than foreign exchange forward contracts)
As at
March 31, 2024 March 31, 2023
Crore Crore
Unsecured, considered good:
Deposits with banks (with residual maturity less than 12 - 4.26
months)
Contract assets ^ 2.14 0.86
Others * 15.73 17.76
Total 37.13 42.20
Contract assets mainly include unbilled revenue accrued against service contracts. The balances
vary depending on the volume of services remaining unbilled at the end of the year.
* Others primarily include warranty receivable, royalty receivable from dealers, cross charge etc.
Other current financial assets receivable from firms or private companies in which any director is
a partner, a director or a member amounts to 2.65 Crore (March 31, 2023: 2.95 Crore). Refer
note 41 for related party transactions.

14 Other current assets
As at
March 31, 2024 March 31, 2023
Crore Crore
Others * 85.77 60.31
Total 166.99 117.27
* Others include prepaid expenses, government grants receivable, supplier advances, service
contracts in progress, etc.
15 Assets classified as held for sale
As at
March 31, 2024 March 31, 2023
Crore Crore
Assets held for sale (at lower of cost or fair value less cost 2.69 1.14
to sell)
Total 2.69 1.14
16 Equity share capital
As at
March 31, 2024 March 31, 2023
Crore Crore
Authorised :
400,000,000 equity shares of 2 each 80.00 80.00
Issued, subscribed and fully paid-up shares:
277,200,000 equity shares of 2 each 55.44 55.44
Total 55.44 55.44
a) Reconciliation of number of shares
Equity shares: As at March 31, 2024 As at March 31, 2023

Number of Shares Crore Number of Shares Crore
Balance as at the 277,200,000 55.44 277,200,000 55.44
beginning and end of
the year

b) Rights, preferences and restrictions attached to shares
The Company has only one class of equity shares having a par value of 2 per share. Each
shareholder is entitled to one vote per share. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case
of interim dividend. In the event of liquidation of the Company, the equity shareholders are eligible
to receive remaining assets of the Company, after distribution of all preferential amounts, in the
proportion to their shareholding.
c) Details of shareholding of promoter
As at March 31, 2024 As at March 31, 2023
Particulars Nos. of % of total % of Nos. of % of total % of

Shares number change Shares number change
of shares during the of shares during the
year year
Cummins Inc. USA - 141,372,000 51.00% - 141,372,000 51.00% -
Holding Company
Kirloskar Industries - - - 683 0.00%* -
Limited **
* % is below the rounding off norm

** Classified out of “Promoter” category as approved by the stock exchanges.
d) Details of shareholders holding more than 5% of the aggregate shares in the

Company

Nos. % Nos. %
Equity shares of 2 each fully paid
Cummins Inc. USA - Holding Company 141,372,000 51.00% 141,372,000 51.00%
17 Other equity
As at
March 31, 2024 March 31, 2023
Crore Crore
Retained earnings 4,934.62 4,150.00
4,934.62 4,150.00
Other reserv es
Capital redemption reserve 0.70 0.70
General reserve 1,142.02 1,142.02
Equity contribution from Holding Company 30.31 19.82
Total 1,173.03 1,162.54

a) Retained earnings
Year Ended
March 31, 2024 March 31, 2023
Crore Crore
Opening balance as at April 1 4,150.00 3,639.91
Add: Profit for the year 1,660.62 1,129.82
Add: Other comprehensive income
- Items not to be reclassified to profit or loss in (16.22) 4.07
subsequent periods
Remeasurement (loss) / gain on defined benefit plans,
net of tax
- Items to be reclassified to profit or loss in subsequent
periods
Changes in the fair value of financial instruments (net), (0.46) (0.10)
net of tax
5,793.94 4,773.70
Less:
Interim dividend paid for the financial years ended March 498.96 332.64
31, 2024 ( 1 per share) and March 31, 2023 ( 12 per
share)
Final dividend paid for the financial years ended March 31, 360.36 291.06
2023 ( 13 per share) and March 31, 2022 ( 10.50 per
share)
859.32 623.70
Closing balance as at March 31 4,934.62 4,150.00
Div idend not recognised at the end of the reporting period
In addition to the above dividends, since the year end the directors have recommended
payment of final dividend of 554.40 Crore for the year ended March 31, 2024 (March 31, 2023:
360.36 Crore) which is 20 per fully paid up share (March 31, 2023: 13 per fully paid up share).
This proposed dividend is subject to approval of shareholders in the ensuing Annual General
Meeting.
b) Capital redemption reserv e
Year Ended
March 31, 2024 March 31, 2023
Crore Crore
Opening balance as at April 1 0.70 0.70
Add: Movement during the year - -
Closing balance as at March 31 0.70 0.70

c) General reserv e
General reserve denotes the amounts transferred from retained earnings on declaration of
dividends as per the requirements of erstwhile Companies Act, 1956.
Year Ended
March 31, 2024 March 31, 2023
Crore Crore
d) Equity contribution from the holding company
Certain employees are directly paid by the holding company through stock options.
Year Ended
March 31, 2024 March 31, 2023
Crore Crore
Add: Movement during the year 10.49 5.23
18 Other non-current financial liabilities (carried at amortised cost)
As at
March 31, 2024 March 31, 2023
Crore Crore
Deposits 27.45 27.36
Retention money 3.75 0.25
Capital creditors 18.44 -
Others * 11.64 13.18
Total 61.28 40.79
* Others primarily include liability on account of Voluntary Retirement Scheme (refer note 47)

19 Provisions
As at
March 31, 2024 March 31, 2023
Crore Crore
Provision for post retirement benefit and compensated 143.94 105.85
absences (Refer note 40)
Warranties (Refer note 39 (i)) 78.86 75.75
Statutory matters (Refer note 39 (ii)) 17.66 17.45
New Engine Performance Inspection (NEPI) (Refer note 39 40.58 39.59
(iii))
281.04 238.64
Current provisions 163.08 137.04
Non-current provisions 117.96 101.60
Total 281.04 238.64
20 Income taxes
a) Deferred tax liabilities ( net)
Balance Sheet Statement of profit and loss

As at Year ended
Crore Crore Crore Crore
Deferred tax assets
Provision for employee 26.60 24.62 1.98 (1.27)
benefits recognised in
Statement of profit and loss
Other timing differences 15.75 12.76 2.99 (0.06)
Total deferred tax assets 42.35 37.38 4.97 ( 1.33)
Deferred tax liabilities
Depreciation 138.42 135.42 3.00 1.93
Other timing differences (1.97) 4.98 (6.95) 4.03

Others - 2.68
(1.97) 7.66
Total deferred tax 136.45 143.08 (3.95) 5.96
liabilities
Deferred tax ( expense) / 8.92 (7.29)
income
Net deferred tax liabilities 94.10 105.70

b) The major components of income tax expenses for the years ended March 31, 2024 and
March 31, 2023 are:
Statement of Profit and Loss
Year Ended
March 31, 2024 March 31, 2023
₹ Crore ₹ Crore
Profit and loss section
Current income tax:
Current income tax charge 507.08 353.60
Deferred tax:
Relating to origination and reversal of temporary (8.92) 7.29
differences
Adjustments in respect of current income tax of previous (15.73) 1.36
year
Income tax expenses reported in the Statement of 482.43 362.25
Profit and Loss
OCI section
Tax related to items recognised in OCI during the year (5.61) 1.34
Net (gain)/loss on remeasurements of defined benefit plans (5.61) 1.34
and others
c) Reconciliation of tax expenses and the accounting profit multiplied by India’s domestic tax
rate for March 31, 2024 and March 31, 2023
Year Ended
March 31, 2024 March 31, 2023
₹ Crore ₹ Crore
Accounting profit before tax 2,143.05 1,492.07
India's statutory income tax rate 25.17% 25.17%
Tax at full rate 539.36 375.52
Adjustments:
Dividend income (not subject to tax) (47.81) (28.20)
Others (deductible, non-deductible items, net) (9.12) 14.93
Total (56.93) (13.27)
Income tax expenses reported in the Statement of Profit 482.43 362.25

and Loss for the current year

d) Deferred tax
Reconciliation of deferred tax liabilities (net) :
Year Ended
March 31, 2024 March 31, 2023
Crore Crore
Opening balances as at April 1 105.70 97.07
Tax expense/(income) during the year recognised in ( .92) 7.29
Tax expense/(income) during the year recognised in OCI - 1.34
Adjustments in respect of previous years (2.6 ) -
21 Other non-current liabilities
As at
March 31, 2024 March 31, 2023
Crore Crore
Contract liabilities 11.96 3.27
Total 11.96 3.27
22 Borrowings
As at
March 31, 2024 March 31, 2023
Crore Crore
Working capital loan from bank 100.00 350.04
Total 100.00 350.04
The loan is unsecured and repayable within one year. Interest is payable 6.75% - 7.31%
(T-Bill / MIBOR) adjusted by a reasonable spread p.a. The Company has availed the benefit of
interest equalisation scheme of the Reserve Bank of India. Interest on borrowings under interest
equalisation scheme is accounted for on net basis.
The changes in liabilities arising from financing activities is on account of cash flow changes only
and there are no non-cash changes.

23 Trade payables
As at
March 31, 2024 March 31, 2023
Crore Crore
Trade payables to micro and small enterprises (Refer note 71.25 69.14
34)
Trade payables other than related parties, micro and small 562.48 455.83
enterprises
Trade payables to related parties (Refer note 41) 768.62 621.00
1,331.10 1,076.83
Total 1,402.35 1,145.97
Trade payables are non interest bearing and are normally settled in 30 to 90 days.
Trade payables aging schedule
Unbilled Not due Less than 1-2 2-3 More than 3

1 year years years years
(i) Undisputed - March 31, - 70.10 1.15 - - - 71.25
MSME 2024
March 31, - 67.37 1.77 - - - 69.14
2023
(ii) Undisputed- March 31, 156.62 987.31 174.45 9.91 0.17 2.64 1,331.10
Others 2024
March 31, 113.05 868.76 83.35 1.10 7.62 2.95 1,076.83

2023
156.62 1,057.41 175.60 9.91 0.17 2.64 1,402.35

Total
113.05 936.13 85.12 1.10 7.62 2.95 1,145.97

24 Other current financial liabilities
As at
March 31, 2024 March 31, 2023
Crore Crore
Unpaid dividend 13.26 12.79
Royalty (Refer note 41) 24.26 16.67
Support services payable (Refer note 41) 4.81 2.65
Capital creditors 52.65 4.37
Others including salaries, wages, bonus payable 45.26 55.18
Total 147.30 100.52
25 Other current liabilities
As at
March 31, 2024 March 31, 2023
Crore Crore
Statutory dues and other payables 153.22 72.38
Contract liabilities ^ 63.63 64.18
Total 216.85 136.56
Contract liabilities include advances received from customer as well as consideration received
before the Company has transferred goods or services to the customer.
26 Revenue from operations
Year Ended
March 31, 2024 March 31, 2023
Crore Crore
Sale of products 8,438.50 7,269.23
Sale of services 377.88 343.09
8,816.38 7,612.32
Other operating rev enue
Scrap sales 7.65 8.82
Export incentives 34.01 24.24
Others * 100.56 99.05
142.22 132.11
Rev enue from operations 8,958.60 7,744.43
* Others primarily includes testing income, engineering income, royalty income from dealers, etc.

Disaggregated rev enue information
Set out below is the disaggregation of the Company’s revenue from contracts with customers
Year Ended
March 31, 2024 March 31, 2023
Crore Crore
Location
India 7,371.65 5,891.64
Outside India 1,552.94 1,828.55
Total rev enue from contracts with customers * 8,924.59 7,720.19
Timing of rev enue recognition
Goods transferred at a point in time 8,446.15 7,278.05
Services transferred over time 478.44 442.14
Rev enue from contracts with customers * 8,924.59 7,720.19
Set out below is the amount of revenue recognised from
Amounts included in contract liabilities at the beginning of 31.48 19.94
the year
Performance obligations satisfied in previous years 5.08 0.06
Reconciling the amount of rev enue recognised in the
statement of profit and loss with the contracted price
Revenue as per contracted price 9,098.26 7,947.91
Adjustments
Sales return (32.74) (69.55)
Discounts (10 .23) (111.59)
Liquidated damages (9.35) (2.2 )
Others (23.35) (44.30)
Rev enue from contracts with customers * 8,924.59 7,720.19
* Excludes export incentives

27 Other income
Year Ended
March 31, 2024 March 31, 2023
Crore Crore
Income from investments:
Interest income from financial assets at amortised cost
- On bonds (non - current/current investments) - 0.05
- 0.05
Dividend income
- On investments in associate and joint ventures carried 189.95 112.07
at cost
189.95 112.07
Gain on sale/redemption of investments
- On current investments designated at fair value through 52.20 43.89
profit and loss
52.20 43.89
Interest on term deposits and others * 120.62 73.57
Rent (Refer note 3 for rent on investment properties) 171.00 151.46
Exchange gain (net) 0.79 7.57
Gain on assets sold, discarded, etc. 1.57 2.48
Miscellaneous income 31.66 28.90
325.64 263.98
Total 567.79 419.99
* includes interest on tax refund amounting to Nil (March 31, 2023: 1.59 Crore).
28.1 Cost of materials consumed
Year Ended
March 31, 2024 March 31, 2023
Crore Crore
Inventory at the beginning of the year 454.31 416.43
Add : Purchases 4,913.75 4,637.39
Less : Inventory at the end of the year 518.55 454.31
Total 4,849.51 4,599.51

28.2 Changes in inventories of finished goods, work-in-progress and traded goods
Year Ended
March 31, 2024 March 31, 2023
₹ Crore ₹ Crore
Inventories at the end of the year (Refer note 8)
Work-in-progress 197.34 206.64
Finished goods 196.74 202.99
Traded goods 10.18 8.26
Subtotal (A) 404.26 417.89
Inventories at the beginning of the year (Refer note 8)
Subtotal (B) 417.89 299.96
(Increase) / Decrease (B-A) 13.63 (117.93)
29 Employee benefits expense
Year Ended
March 31, 2024 March 31, 2023
₹ Crore ₹ Crore
Salaries, wages and bonus 667.64 529.89
Contribution to provident and other funds (Refer note 40) 73.71 64.61
Staff welfare expenses 37.95 35.33
Total 779.30 629.83
30 Finance costs
Year Ended
March 31, 2024 March 31, 2023
₹ Crore ₹ Crore
Interest on borrowings and others 15.20 10.67
Interest cost on lease liabilities (Refer note 37) 2.06 1.91
Total interest expense 17.26 12.58
Unwinding of discount and effect of changes in discount 9.52 3.20
rate on provisions (Refer note 39)
Total 26.78 15.78

31 Other expenses
Year Ended
March 31, 2024 March 31, 2023
₹ Crore ₹ Crore
Commission on sales 18.46 12.42
Consumption of stores and spare parts 84.60 73.54
Warranty expenses (Refer note 39) 58.54 65.88
Consumption of tools and gauges 8.00 7.47
Repairs to buildings 36.69 32.72
Repairs to machinery 11.19 9.25
Other repairs 2.08 2.40
Power and fuel 27.48 26.54
Rates and taxes 25.08 11.35
Insurance 19.62 15.88
Outside processing charges 38.44 32.02
Donations (including expenditure towards corporate social 20.01 15.57
responsibility activities (Refer note 41 and 42))
Royalties (Refer note 41) 28.26 17.33
Support services (Net of credits) (Refer note 41) 66.61 111.26
Computer and other services 96.60 77.41
Payment to auditors (Refer details below) 1.89 1.99
Bad Debts
Bad debts written off 0.87 1.22
Provision for bad and doubtful debts 0.26 0.42
Amount withdrawn from provisions (0.87) (1.22)
0.26 0.42
Other expenses (net of expenses recovered and 104.06 127.61
capitalised) (Refer note 41)
Total 647.87 641.06
Payment to auditors:
Year Ended
March 31, 2024 March 31, 2023
₹ Crore ₹ Crore
On account of Audit Fees 1.80 1.95
On account of Reimbursement of expenses 0.09 0.04
Total 1.89 1.99

32 Earning per share ( EPS)
Earnings per share is calculated by dividing the profit attributable to the equity shareholders by
the weighted average number of equity shares outstanding during the year. The numbers used in
calculating basic and diluted earnings are stated below :
Year Ended
March 31, 2024 March 31, 2023
(a) Profit for the year after taxation ( Crore) 1,660.62 1,129.82
(b) Weighted average number of shares outstanding 277,200,000 277,200,000
during the year
(c) Earnings per share (Basic and Diluted) ( ) 59.91 40.76
(d) Face value per share ( ) 2 2
33 Capital and other commitments
As at
March 31, 2024 March 31, 2023
Crore Crore
Estimated amount of contracts in capital account remaining 143.65 155.52
to be executed (net of capital advances).
For other commitments also refer Note 37
Total 143.65 155.52

34 Trade payables include dues to micro and small enterprises as defined under the
MSMED Act, 2006 as under:
As at
March 31, 2024 March 31, 2023
Crore Crore
Total outstanding dues of micro and small enterprises 71.25 69.14
1 Principal Amount 71.25 69.14
2 Interest accrued - -
3 Payment made to suppliers (other than interest) 3.80 8.20
beyond the appointed day, during the year
4 Interest paid to suppliers under MSMED Act, 2006 - -
(other than section 16)
5 Interest paid to suppliers under MSMED Act, 2006 0.07 0.07
(Section 16)
6 Interest due and payable to suppliers under MSMED - -
Act, 2006 for the payments already made
7 Interest accrued and remaining unpaid at the end of - -
the year to suppliers under MSMED Act, 2006
The Company has compiled this information based on intimations received from the suppliers of
their status as Micro or Small Enterprises and / or their registration with the appropriate authority
under the Micro, Small and Medium Enterprises Development Act, 2006.
35 Significant accounting estimates and assumptions
The preparation of the Company’s financial statements requires the management to make estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities,
and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about
these assumptions and estimates could result in an outcome that requires a material adjustment to
the carrying amount of assets or liabilities effected in future periods.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date that have a significant risk of causing a material adjustment to the carrying amount
of assets and liabilities within the next financial year, are described below. The Company based its
assumptions and estimation on parameters available when the financial statements were prepared.
Existing circumstances and assumptions about future developments, however, may change due to
market changes or circumstances arising beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.
Defined benefit plans:
The cost of the defined benefit gratuity plan and other post–employment medical benefits and

the present value of the gratuity obligation are determined using actuarial valuations. An actuarial
valuation involves making various assumptions that may differ from actual developments in the
future. These include the determination of the discount rate, future salary increases and mortality
rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at
each reporting date.
The discount rate is the parameter most subject to change. In determining the appropriate discount
rate for plans operated in India, the management considers the interest rates of government bonds.
The mortality rate is based on publicly available mortality tables for India. Mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity
increases are based on expected future inflation rates. Further details about gratuity obligations
are given in note 40.
Fair value measurements of financial instruments:
When the fair values of financial assets and financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in active markets, their fair value is measured
using valuation techniques including the DCF model. The inputs to these models are taken from
observable markets if available, otherwise, a degree of judgement is required in establishing fair
values. udgements include considerations of inputs such as liquidity risk, credit risk and volatility.
Changes in assumptions about these factors could affect the reported fair value of the financial
instrument. Refer note 44 for further disclosures.
Warranty, statutory matters and New Engine Performance Inspection (NEPI)
For estimates relating to warranty, statutory matters and NEPI (refer note 39)
36 Contingent liabilities
As at
March 31, 2024 March 31, 2023
Crore Crore
a. Income tax matters* 17.04 12.31
b. Central excise duty/service tax matters* 6.23 3.29
c. Duty drawback matters 26.04 26.04
d. Sales Tax matters* 34.61 34.61
e. Civil liability / secondary civil liability in respect of suits 1.55 1.29
filed against the Company*
f. Goods and service tax matters 2.33 2.07
Total 87.80 79.61
* Excludes interest and penalties if any. The above matters pertain to certain disallowances/demand
raised by respective authorities.
The Company is contesting the demands and the management, including its tax/legal advisors,
believe that its position will likely be upheld in the appeal process.

There are numerous interpretative issues relating to the Supreme Court (SC) judgement on
Provident Fund dated February 2 , 2019. The Company has implemented the SC decision
prospectively.
The Company has various on-going litigations by/or against the Company with respect to tax and
other legal matters, other than those disclosed above. The Company believes that it has sufficient
and strong arguments on facts as well as on point of law and accordingly no provision/disclosure
in this regard has been considered in the financial statements.
37 Leases
Lease commitments as a Lessee
The Company has entered into leases for office premises. These lease arrangements range for a
period between 12 and 108 months with lock in period between 36 and 108 months, which include
both renewable and non-renewable leases.
Following are the changes in the carrying value of right of use assets during the year ended
Crore
Particulars March 31, 2024 March 31, 2023

Category of ROU Category of ROU
Building Land Total Building Land Total
Balance as at the beginning of the year 19.42 13.73 33.15 16.45 13.52 29.97
Additions 4.32 - 4.32 8.38 0.41 8.79
Adjustment (0.40) - (0.40) - - -
Depreciation (6.35) (0.16) (6.51) (5.41) (0.20) (5.61)
Balance as at the end of the year 16.99 13.57 30.56 19.42 13.73 33.15

Following are the changes in carrying value of lease liablities during the year ended
Crore

Balance as at the beginning of the year 22.57 19.05
Additions 4.32 8.38
Adjustment (0.42) -
Interest cost accrued during the period 2.06 1.91
Payments ( .03) (6.77)
Balance as at the end of the year 20.50 22.57
Current portion 6.13 5.25
Non-current portion 14.37 17.32
The maturity analysis of lease liabilities is disclosed in note 43(c). Lease liability has been discounted
using the lessee’s incremental borrowing rate. There are no variable lease payments.
The following are the amounts recognised in statement of profit and loss during the year ended
Crore

Depreciation expense of right-of-use assets 6.51 5.61
Interest expense on lease liabilities 2.06 1.91
Total amount recognised in statement of profit and loss 8.57 7.52
Operating lease as a lessor
The Company has entered into operating leases on its investment properties consisting of buildings
and other related assets. These leases have terms between 36 and 120 months.
Future minimum lease rentals receivable under non-cancellable operating leases are as follows:
Crore

Within one year 64.69 63.89
After one year but not more than five years 73.29 125.71
More than five years - -
Total 137.98 189.60
The Company has not entered into any sub–leases during the year.

38 The total research and development expenses incurred by the Company are as
under :
Year ended
March 31, 2024 March 31, 2023
Crore Crore
On capital account 6.69 7.42
On revenue account 3.21 19.05
Total 9.90 26.47
39 Disclosure on provisions made, utilised and reversed during the year
i) Prov ision for warranty
Provision for warranty is on account of warranties given on products sold by the Company. The
amount of provision is based on historical information of the nature, frequency and average cost of
warranty claims and management estimates regarding possible future incidence. The timing and
amount of cash flows that will arise from these matters will be determined at the time of receipt of
claims. Amount expected to be paid in next 12 months is classified as current.
As at
March 31, 2024 March 31, 2023
Crore Crore
Additions / reversal 58.54 65.88
Utilisation 62.87 54.46
Unwinding of discount and changes in the discount rate 7.44 2.36
Classified as non-current 47.20 44.19
Classified as current 31.66 31.56

ii) Prov ision for statutory matters
Provisions for statutory matters are on account of legal matters where the Company anticipates
probable outflow. The amount of provision is based on estimates made by the Company considering
the facts and circumstances of each case. The timing and amount of cash flows that will arise from
these matters will be determined by the relevant authorities only on settlement of these cases.
As at
March 31, 2024 March 31, 2023
Crore Crore
Additions 0.22 0.47
Utilisation 0.01 -
Unwinding of discount and changes in the discount rate - -
Classified as non-current - -
iii) Prov ision for New Engine Performance Inspection ( NEPI)
Provision for New Engine Performance Inspection (NEPI) is on account of checks to be carried out
by the Company at specified intervals. The amount of provision is based on historical information of
the nature, frequency and average cost of claims and management estimates regarding possible
future incidence. The timing and amount of the cash flows that will arise from these matters will
be determined at the time of receipt of claims. Amount expected to be paid in next 12 months is
classified as current.
As at
March 31, 2024 March 31, 2023
Crore Crore
Additions 8.24 17.14

40 Employee benefit plans
1. Defined contribution plans - The Company has recognised the following amounts in
statement of profit and loss for the year:
Crore
Total
Contribution to employees provident fund 16.79
14.10
Contribution to management superannuation fund 22.57
21.43
2. Defined benefit plans -
The following figures are as per actuarial valuation, as at the balance sheet date, carried out by an
independent actuary.
a. Net Balance Sheet position

Crore
Sr. Particulars
As at Gratuity Pension Ex-gratia PRMB PF
No.
i) Defined benefit obligation March 31, 243.74 29.08 2.52 2.22 402.93
2024
March 31, 208.41 28.51 2.46 2.22 354.99
2023
ii) Fair value of Plan assets March 31, 206.88 28.82 - - 403.79
2024
March 31, 197.63 28.69 - - 349.47
2023
iii) Funded status surplus / (deficit) March 31, (36. 6) (0.26) (2.52) (2.22) 0.86
2024
March 31, (10.7 ) 0.18 (2.46) (2.22) (5.52)
2023
iv) Effect of asset ceiling March 31, - - - - (0. 6)
2024
March 31, - - - - -
2023
Net defined benefit asset / (liability) March (36.86) (0.26) (2.52) ( 2.22) 0.00
31, 2024
March 31, (10.7 ) 0.18 (2.46) (2.22) (5.52)
2023

b. Reconciliation of opening and closing balances of the present value of the Defined
Benefit Obligation (DBO)
Crore
Sr. Particulars
No.
Opening defined benefit obligation March 31, 208.41 28.51 2.46 2.22 354.99
2024
March 31, 195.97 28.27 2.49 1.71 320.70
2023
i) Current service cost March 31, 15.20 0.90 0.09 0.08 16.79
2024
March 31, 13.82 0.96 0.10 0.07 14.10
2023
ii) Interest cost March 31, 14.90 2.05 0.17 0.16 27.15
2024
March 31, 14.12 1.94 0.17 0.12 22.60
2023
iii) Settlement /Curtailment (credit) / cost March 31, - - - - -
2024
March 31, - - - - -
2023
iv) Actuarial (gains) / losses - experience March 31, 17.33 (0.73) 0.08 (0.13) 2.65
2024
March 31, 3.35 (1.01) 0.06 0.51 12.47
2023
v) Actuarial (gains) / losses - March 31, (0. ) 0* (0.04) (0.03) -
demographic changes 2024
March 31, (1.15) 0.57 (0.01) (0.0 ) -
2023
vi) Actuarial (gains) / losses - financial March 31, 6.44 0.40 0.03 0.04 4.25
assumptions 2024
March 31, (5. 4) (0.73) (0.06) (0.01) (5.12)
2023
vii) Benefits paid March 31, (15.10) (2.05) (0.27) (0.12) (44.12)
2024
March 31, (13.71) (1.49) (0.42) (0.10) (42.17)
2023
viii) Past service cost - plan amendements March 31, - - - - -
2024
March 31, - - 0.13 - -
2023

Sr. Particulars
No.
March 31, - - - - -
ix) Other Adjustments
2024
March 31, - - - - -
2023
March 31, (2.56) - - - 15.73
x) Acquisitions (credit) / cost
2024
March 31, 1.85 - - - 10.62
2023
March 31, - - - - 25.49
xi) Contributions by employees
2024
March 31, - - - - 21.79
2023
March 243.74 29.08 2.52 2.22 402.93
Closing defined benefit obligation
31, 2024
March 31, 208.41 28.51 2.46 2.22 354.99
2023
* Amount is below the rounding off norm adopted by the Company.
c. Reconciliation of opening and closing balances of the fair v alue of plan assets
Crore
Sr. Particulars
No.
Opening fair value of plan assets March 31, 197.63 28.69 - - 349.47
2024
March 31, 180.82 27.30 - - 315.13
2023
i) Interest income on plan assets March 31, 14.47 2.06 - - 26.73
2024
March 31, 12.43 1.87 - - 22.21
2023
ii) Return on plan asset greater / (lesser) March 31, 0.55 0.12 - - 13.70
than discount rate 2024
March 31, 0.54 0.04 - - 7.79
2023
iii) Actuarial gains / (losses) March 31, - - - - -
2024
March 31, - - - - -
2023

Sr. Particulars
No.
iv) Contribution by the employer March 31, 11.89 - - - 16.79
2024
March 31, 15.70 0.97 - - 14.10
2023
v) Benefits paid March 31, (15.10) (2.05) - - (44.12)
2024
March 31, (13.71) (1.49) - - (42.17)
2023
vi) Acquisition adjustment March 31, (2.56) - - - 15.73
2024
March 31, 1.85 - - - 10.62
2023
vii) Contribution by employee March 31, - - - - 25.49
2024
March 31, - - - - 21.79
2023
viii) Other adjustments March 31, - - - - -
2024
March 31, - - - - -
2023
March 206.88 28.82 - - 403.79
Closing fair value of plan assets
31, 2024
March 31, 197.63 28.69 - - 349.47
2023

d. Total defined benefit cost
Crore
Sr. Particulars
No.
i) Current and past service cost March 31, 15.20 0.90 0.09 0.08 16.79
2024
March 31, 13.82 0.96 0.23 0.07 14.10
2023
ii) Net interest cost March 31, 0.43 (0.01) 0.17 0.16 0.42
2024
March 31, 1.69 0.07 0.17 0.12 0.39
2023
iii) Actuarial (gains) / losses recognised March 31, 22.34 (0.45) 0.07 (0.12) (5.94)
in OCI 2024
March 31, (4.1 ) (1.21) (0.01) 0.42 (0.44)
2023
March 37.97 0.44 0.33 0.12 11.27
Total defined benefit cost
31, 2024
March 31, 11.33 (0.1 ) 0.39 0.61 14.05
2023
e. Statement of profit and loss

Crore
Sr. Particulars
No.
i) Current and past service cost March 31, 15.20 0.90 0.09 0.08 16.79
2024
March 31, 13.82 0.96 0.23 0.07 14.10
2023
ii) Settlement / Curtailment cost / (credit) March 31, - - - - -
2024
March 31, - - - - -
2023
iii) Net interest cost March 31, 0.43 (0.01) 0.17 0.16 0.42
2024
March 31, 1.69 0.07 0.17 0.12 0.39
2023
March 15.63 0.89 0.26 0.24 17.21
Cost recognised in profit and loss
31, 2024
March 31, 15.51 1.03 0.40 0.19 14.49
2023
All of the above have been included in the line ‘Company’s contribution to provident and other
funds’, in note 29 of the statement of profit and loss.

f. Other comprehensiv e income

Crore
Sr. Particulars
No.
i) Actuarial (gain) / loss due to DBO March 31, 17.33 (0.73) 0.08 (0.13) 2.65
experience 2024
March 31, 3.35 (1.01) 0.06 0.51 12.47
2023
ii) Actuarial (gain) / loss due to March 31, 5.56 0.40 (0.01) 0.01 4.25
assumption change 2024
March 31, (6.99) (0.16) (0.07) (0.09) (5.12)
2023
iii) Return on plan assets (greater) / less March 31, (0.55) (0.12) - - (13.70)
than discount rate 2024
March 31, (0.54) (0.04) - - (7.79)
2023
iv) Adjustment to recognize the effect of March 31, - - - - 0.86
asset ceiling 2024
March 31, - - - - -
2023
Actuarial ( gain) / loss recognised March 22.34 (0.45) 0.07 ( 0.12) (5.94)
in OCI 31, 2024
March 31, (4.1 ) (1.21) (0.01) 0.42 (0.44)
2023
g. For each major category of plan assets, following is the percentage that each major
category constitutes of the fair v alue of the total plan assets
Sr. Particulars Gratuity Pension PF

No. March March March March March March
31,2024 31,2023 31,2024 31,2023 31,2024 31,2023
i) Government of India securities 0.00% 0.00% 0.00% 0.00% 44.54% 49.24%
ii) Debt instruments and related 0.00% 0.00% 0.00% 0.00% 41.98% 42.24%
investments /corporate bonds
iii) Special deposit scheme 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
iv) Insurer managed funds 100.00% 100.00% 100.00% 100.00% 0.00% 0.00%
v) Mutual Funds 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
vi) Equities and related investments 0.00% 0.00% 0.00% 0.00% 13.48% .51%
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
The overall expected rate of return on assets is based on the expectations of the average long term
rate of return expected on investments of the fund during the estimated term of obligations.

h. Supplementary information as per Ind AS 19
Crore
Sr. Particulars
No.
i) Expected employer contribution for March 31, 10.00 - NA NA 18.47
next year 2024
March 31, 10.00 - NA NA 15.51
2023
i. Following are the principal actuarial assumptions used as at the balance sheet date
Particulars As at Gratuity Pension Ex-gratia PRMB PF

Discount rate March 31, 7.2% 7.2% 7.2% 7.2% 7.2%
2024
March 31, 7.5% 7.5% 7.5% 7.5% 7.5%
2023
Expected rate of return on plan assets March 31, 7.2% 7.2% NA NA NA
2024
March 31, 7.5% 7.5% NA NA NA
2023
Salary escalation rate - management staff March 31, 10% NA NA NA NA
2024
March 31, 10% NA NA NA NA
2023
Salary escalation rate - non-management March 31, % NA NA NA NA
staff 2024
March 31, % NA NA NA NA
2023
Annual increase in healthcare costs - year March 31, NA NA NA % NA
2023- 2025 2024
March 31, NA NA NA % NA
2023
Annual increase in healthcare costs - 2026 March 31, NA NA NA 6% NA
and thereafter 2024
March 31, NA NA NA 6% NA
2023
Guaranteed Rate of Return as declared by March 31, NA NA NA NA .25%
EPFO 2024
March 31, NA NA NA NA .15%
2023
Mortality rate (in service) March 31, Indian Assured Lives Mortality (2012-14) Ult table
2024
March 31, Indian Assured Lives Mortality (2012-14) Ult table
2023

The estimates of future salary increases considered in actuarial valuation takes into account
inflation, seniority, promotion and other relevant factors.
j. Expected benefit payment for the next years

Crore
Particulars March March March March March 2030-

As at
31, 2025 31, 2026 31, 2027 31, 2028 31, 2029 2034
March March March March March 2029-
31, 2024 31, 2025 31, 2026 31, 2027 31, 2028 2033
Gratuity March 31, 2024 24.50 18.75 18.47 18.82 19.28 114.28
March 31, 2023 19.51 15.00 16.36 15.45 16.06 92.99
Pension March 31, 2024 2.76 4.10 4.51 4.47 3.63 13.68
March 31, 2023 2.36 3.49 3.90 4.23 4.21 14.26
Ex-gratia March 31, 2024 0.57 0.43 0.43 0.35 0.31 1.52
March 31, 2023 0.45 0.36 0.43 0.43 0.34 1.51
PRMB March 31, 2024 0.31 0.20 0.26 0.29 0.28 1.46
March 31, 2023 0.25 0.18 0.21 0.27 0.29 1.58
PF March 31, 2024 0.54 0.54 0.54 0.54 0.54 1.97
March 31, 2023 0.05 0.05 0.05 0.05 0.05 0.19
k. A quantitative sensitivity analysis for significant assumption is as shown below:

Crore
Assumptions Discount Rate Future salary increase Withdrawal Rate
Sensitiv ity lev el 0.5% 0.5% 0.5% 0.5% 5% 5%
increase decrease increase decrease increase decrease
Gratuity
March 31, 2024 (10.5 ) 11.38 11.07 (10.40) (12.99) 11.53
March 31, 2023 (9.42) 10.15 9.90 (9.29) (10.43) 8.51
Pension
March 31, 2024 (0.61) 0.63 NA NA 0.06 (0.41)
March 31, 2023 (0.65) 0.67 NA NA 0.06 (0.5 )
Ex-gratia
March 31, 2024 (0.05) 0.06 NA NA (0.51) 0.26
March 31, 2023 (0.06) 0.06 NA NA (0.54) 0.24
PF
March 31, 2024 (4.70) (6.04) - - - -
March 31, 2023 (0.45) 5.34 - - - -

Assumptions Discount Rate Medical Inflation Withdrawal Rate

Sensitiv ity lev el 0.5% 0.5% 0.5% 0.5% 5% 5%
PRMB
March 31, 2024 (0.07) 0.07 0.14 (0.13) (0.44) 0.19
March 31, 2023 (0.07) 0.08 0.16 (0.14) (0.50) 0.23
The sensitivity analysis above has been determined based on a method that extrapolates the
impact on defined benefit obligation as a result of reasonable changes in key assumptions
occurring at the end of the reporting period. The sensitivity analysis are based on a change in a
significant assumption, keeping all other assumptions constant. The sensitivity anlysis may not be
representative of an actual change in the defined benefit obligation as it is unlikely that changes in
assumptions would occur in isolation from one another.
41 Related party disclosures
a) Name of the related party and nature of the relationship where control exists
Name of related party Nature of relationship

Cummins Inc. Holding Company
Cummins Sales and Service Private Limited Subsidiary
b) Transactions with related parties as per the books of accounts during the year
Crore
Transaction Name of related party Total

Purchase of Goods Tata Cummins Private Limited March 31, 2024 1,357.54
March 31, 2023 1,208.59
Cummins Technologies India Private Limited March 31, 2024 877.83
March 31, 2023 691.78
Others March 31, 2024 861.32
March 31, 2023 828.58
Sale of goods Cummins Limited March 31, 2024 691.93
March 31, 2023 718.49
March 31, 2023 285.03
Others March 31, 2024 584.17
March 31, 2023 784.90


Purchase of assets Cummins Inc. March 31, 2024 105.64
March 31, 2023 0.61
Fleetguard Filters Pvt Ltd March 31, 2024 1.50
March 31, 2023 0.79
March 31, 2023 1.05
Cummins Power Generation Inc. March 31, 2024 -
March 31, 2023 0.83
Sale of assets Cummins Technologies India Private Limited March 31, 2024 2.97
March 31, 2023 0.90
Services rendered Cummins Technologies India Private Limited March 31, 2024 182.15
(Refer note v) March 31, 2023 154.29
Valvoline Cummins Private Limited March 31, 2024 64.63
March 31, 2023 61.52
Others March 31, 2024 61.12
March 31, 2023 63.97
Services received Cummins Sales and Service Private Limited March 31, 2024 26.51
(Refer note vi) March 31, 2023 22.40
March 31, 2023 14.99
March 31, 2023 3.55
Royalty Cummins Inc. March 31, 2024 28.26
March 31, 2023 17.33
Support services Cummins Inc. March 31, 2024 62.51
March 31, 2023 106.03
Cummins Africa Middle East (Pty) Ltd. March 31, 2024 4.80
March 31, 2023 5.24
Reimbursements Cummins Technologies India Private Limited March 31, 2024 122.54
paid
March 31, 2023 100.13
Cummins Inc. March 31, 2024 13.52
March 31, 2023 12.24


March 31, 2023 9.70
Reimbursements Cummins Technologies India Private Limited March 31, 2024 108.37
received
(Refer note vii) March 31, 2023 86.43
March 31, 2023 4.42
Cummins Generator Technologies India Private March 31, 2024 18.45
Limited
March 31, 2023 13.58
Tata Cummins Private Limited March 31, 2024 12.98
March 31, 2023 20.29
March 31, 2023 7.04
Remuneration paid Key management personnel March 31, 2024 10.74
(Refer note i & iii) March 31, 2023 7.94
Transfer of export Cummins Technologies India Private Limited March 31, 2024 -
benefits
March 31, 2023 1.55
Interest on delayed Cummins Sales and Service Private Limited March 31, 2024 0*
payment
March 31, 2023 -
Dividend received Cummins Generator Technologies India Private March 31, 2024 109.20
Limited
March 31, 2023 30.42
Valvoline Cummins Private Limited March 31, 2024 80.75
March 31, 2023 80.75
Cummins Research and Technology India March 31, 2024 -
Private Limited
March 31, 2023 0.90
Dividend paid Cummins Inc. March 31, 2024 438.25
March 31, 2023 318.09
Donations paid Cummins India Foundation March 31, 2024 20.01
March 31, 2023 15.57


Contributions paid Cummins India Limited Officers Provident Fund March 31, 2024 16.79
March 31, 2023 14.10

Cummins Group Employees Superannuation March 31, 2024 22.57
Scheme
March 31, 2023 21.43
Cummins Group Officers Gratuity Scheme March 31, 2024 11.89
March 31, 2023 15.70
Sitting fees and Independent Directors March 31, 2024 1.13
commission
(Refer note i) March 31, 2023 1.07
Equity contribution Cummins Inc. March 31, 2024 10.49
- share based
payments
March 31, 2023 5.23
Repayment of share Cummins Research and Technology India March 31, 2024 -
capital Private Limited
March 31, 2023 0.11
Amounts outstanding as at March 31, 2024

₹ Crore
Particulars Name of related party Total

Trade payables Cummins Technologies India Private Limited March 31, 2024 283.07
March 31, 2023 173.94
March 31, 2023 163.22
March 31, 2023 94.30
Cummins Limited March 31, 2024 45.21
March 31, 2023 69.59
Others March 31, 2024 171.60
March 31, 2023 119.95

Particulars Name of related party Total

Other current Cummins Inc. March 31, 2024 83.69
financial / non-
financial liabilities March 31, 2023 18.15
Cummins Africa Middle East (Pty) Ltd. March 31, 2024 4.81
March 31, 2023 1.18
Trade receivables Cummins Technologies India Private Limited March 31, 2024 136.37
March 31, 2023 86.71
March 31, 2023 83.43
Cummins Romania SRL March 31, 2024 1.32
March 31, 2023 41.07
Others March 31, 2024 124.55
March 31, 2023 186.74
Other current Cummins Inc. March 31, 2024 4.81
financial assets
March 31, 2023 1.81
March 31, 2023 2.95
Fleetguard Filters Pvt Ltd March 31, 2024 -
March 31, 2023 1.82
Cummins Research and Technology India March 31, 2024 -
Private Limited
March 31, 2023 1.01
March 31, 2023 0.58
i) The names of the related parties under the appropriate relationship included in
notes 41(b) and (c) above are as follows:
Nature of relationship Name of the party

Fellow subsidiaries Chongqing Cummins Engine Co Ltd
(with which there are Cmi Group Holdings Cooperatief U.A.
transactions) Cmi Tr Mtr Guc Sistemleri Satis Servis Ltd Sirketi
Consolidated Diesel Company
Cummins (China) Investment Co. Ltd.


Cummins (Xiangyang) Eng Remanfg Co. Ltd.
Cummins Africa Middle East (Pty) Ltd.
Cummins Arabia FZCO
Cummins Asia Pacific Pte. Ltd.
Cummins Belgium NV
Cummins Brasil Ltda
Cummins C&G Holding Limited
Cummins C&G Limited
Cummins Commercializadora S. De R.L. De C.V.
Cummins Czech Republic S.R.O.
Cummins Deutschland Gmbh
Cummins Diesel Botswana (Pty.) Ltd.
Cummins Dksh (Singapore) Pte Ltd
Cummins Dksh (Thailand) Limited
Cummins Dksh (Vietnam) LLC
Cummins East Asia Research And Development Company Ltd.
Cummins Emission Solutions Inc.
Cummins Engine (Shanghai) Trading & Services Co., Ltd.
Cummins Filtration Inc.
Cummins France SA
Cummins Fuel System (Wuhan) Co. Ltd.
Cummins Generator Technologies Limited
Cummins Ghana Limited
Cummins Italia SPA
Cummins Japan Limited
Cummins Kuwait Electrical Tools And Equipment Trading And Cont.
Cummins Limited
Cummins Middle East FZE
Cummins Natural Gas Engines, Inc.
Cummins Norway AS
Cummins NV
Cummins Power Generation (China) Co., Ltd.
Cummins Power Generation Inc.
Cummins Power Generation Limited UK
Cummins Power Solutions India Private Limited


Cummins Qatar LLC
Cummins Romania SRL
Cummins Sales And Service Korea Co. Ltd.
Cummins Sales And Service Philippines Inc.
Cummins Sales And Service Sdn. Bhd.
Cummins Sales And Service Singapore Pte. Ltd.
Cummins Saudi Arabia L.L.C
Cummins South Africa (Pty.) Ltd.
Cummins South Pacific Pty Ltd
Cummins Southern Plains LLC
Cummins Spain SL
Cummins Technologies India Private Limited
Cummins West Africa Limited
Cummins Westport Inc.
Distribuidora Cummins Centroamerica Costa Rica S. De R.L.
Distribuidora Cummins Centroamerica Guatemala Ltda.
Distribuidora Cummins Centroamerica Honduras, S.De R.L.
Distribuidora Cummins De Panama S. De R.L.
Distribuidora Cummins S.A.
Distribuidora Cummins Sucursal Paraguay Srl
Filt Red India Technologies Private Limited
Fleetguard Filters Private Limited
Hydrogenics Europe N.V.
Komatsu Cummins Chile Ltda.
Shanghai Cummins Trading Co. Ltd.
Taiwan Cummins Sales & Services Co. Ltd.
TCPL Green Energy Solutions Private Limited
Key management personnel Ashwath Ram - Managing Director
Ajay Patil - Chief Financial Officer
Vinaya Joshi - Company Secretary
Jennifer Mary Bush - Chairman of the Board
Steven Chapman - Chairman of the Board (upto September 30, 2023)
Donald Jackson
Bonnie Jean Fetch (w.e.f. November 5, 2022)
Norbert Nusterer (upto August 26, 2022)
Lorraine Meyer (upto February 15, 2022)

Independent Directors
- Nasser Munjee
- Lira Goswami (w.e.f. May 24, 2023)
- Priya Dasgupta (upto May 24, 2023)
- Rajeev Bakshi
- Rama Bijapurkar
- Rekha (w.e.f. August 11, 2022)
Associate Cummins Generator Technologies India Private Limited
Joint venture Valvoline Cummins Private Limited
Cummins Research and Technology India Private Limited (Refer note
46)
Enterprise with common key Tata Cummins Private Limited
management personnel Cummins India Foundation
New Delhi Law Offices Private Limited (upto May 24, 2023)
Caltherm Thermostats Private Limited
Employees benefit plans Cummins India Limited Officers Provident Fund
where there is significant Cummins Group Employees Superannuation Scheme
influence
Cummins Group Officers Gratuity Scheme
Terms and conditions of transactions with related parties:

ii) The sales to and purchase from related parties are made on terms equivalent to those that prevail
in arm’s length transaction. Outstanding balances at the year end are unsecured and interest
free and settlement occurs in cash. There have been no guarantees provided or received for any
related party receivables or payables. For the year ended March 31, 2024, the Company has not
recorded any impairment of receivables relating to amounts owed by related parties (March 31,
2023: Nil). This assessment is undertaken each financial year through examining the financial
position of the related party and the market in which the related party operates.
iii) Liability for post employment benefits, other long term benefits, termination benefits and certain
short term benefits such as compensated absences is provided on an actuarial basis for the
Company as a whole. Accordingly the amount for above pertaining to key management personnel
is not ascertainable and, therefore, not included above.
iv) Related party transaction, the amount of which is in excess of 10% of the total related party
transactions of the same type are disclosed separately.
v) Services rendered include renting services, testing services, business support services, etc.
vi) Services received include testing services, solution contract support services, license fees,
etc.
vii) Includes recoveries on account of employee cost, travel costs, training, IT services, etc.

42 As set out in section 135 of the Companies Act, 2013, the Company is required to contribute
20.01 Crores (March 31, 2023: 15.57 Crores) towards Corporate Social Responsibility activities,
as calculated basis 2% of its average net profits of the last three financial years. Accordingly, during
the current year, the Board has approved and the Company has contributed 20.01 Crores (March
31, 2023: 15.57 Crores) to Cummins India Foundation towards eligible projects as mentioned in
Schedule III (including amendments thereto) of the Companies Act, 2013. Apart from the above
contribution to Cummins India Foundation, the Company has not made any direct expenditure/
contributions of capital nature. Unspent contribution amounting to 3.67 Crores (March 31, 2023:
1.55 Crores) has been transferred by the Company to a separate bank account as per the
requirement.
43 Financial risk management objectiv es and policies
Financial risk factors:
The Company has well written policies covering specific areas, such as foreign exchange risk
and investments which seek to minimise potential adverse effects on the Company’s financial
performance due to external factors. The Company uses derivatives to hedge foreign exchange
risk exposures. The Company’s senior management oversees the management of these risks. All
derivatives and investment activities for risk management purposes are carried out by specialist
team that has appropriate skills, experience and supervision. As per the Company’s policy no
trading in derivatives for speculation purpose may be undertaken. The Board of Directors reviews
and approves policies for managing each of these risks.
The Company’s activities are exposed to variety of financial risks: market risk (including currency
risk, interest rate risk and price risk), credit risk and liquidity risk.
a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk comprises three types of risks as
follows:
i) Foreign currency risk
The Company is exposed to foreign exchange risk arising from various currency
exposures, primarily with respect to the US dollar, GBP and Euro. Foreign exchange
risk arises from future commercial transactions, recognized assets and liabilities
denominated in a currency that is not the entity’s functional currency.
Management has set up a policy to manage their foreign exchange risk against their
functional currency. To manage the foreign exchange risk arising from recognised
assets and liabilities, the Company uses forward contracts.
The following table demonstrates the sensitivity relating to possible change in foreign
currencies with all other variables held constant:

Crore
March 31, 2024 March 31, 2023
Currency % change Effect on profit before Effect on profit before
tax and pre-tax equity tax and pre-tax equity
USD 1% 0.21 1.05
Euro 1% 0.05 0.60
Others 1% 0.02 0.15
Total 0.28 1.80
The movement in the pre-tax effect is a result of a change in the fair value of derivative
financial instruments not designated in a hedge relationship and financial assets
and liabilities denominated in various currencies. Although the derivatives have not
been designated in a hedge relationship, they act as economic hedge and offset the
underlying transactions when they occur.
ii) Interest rate risk
Interest rate risk is the fair value of future cash flows of a financial instrument which
fluctuates because of changes in the market interest rates. In order to optimise the
Company’s position with regards to interest income and interest expense, treasury
team manages the interest rate risk by balancing the portion of fixed rate and floating
rate in its total portfolio.
Borrowings of 100 Crores outstanding as at March 31, 2024 (As at March 31, 2023
: 350.04 Crores) were at floating rate linked to T-Bill / MIBOR + applicable spread.
The following table demonstrates the sensitivity of interest payable:

Crore
March 31, 2024 March 31, 2023
%
change Effect on profit before Effect on profit before
Working Capital Loan 0.5% 0.01 0.71
iii) Price risk
The Company invests its surplus funds in mutual funds which are linked to debt
markets. The Company is exposed to price risk for investments in mutual funds that
are classified as fair value through profit or loss. To manage its price risk arising from
investments in mutual funds, the Company diversifies its portfolio. Diversification and
investment in the portfolio is done in accordance with the limits approved by the Board
of Directors.
The following table demonstrates the sensitivity relating to possible change in

investment value with all other variables held constant:

Crore
March 31, 2024 March 31, 2023
% change Effect on profit before Effect on profit before
Mutual funds 0.5% 2.21 3.45
Profit after tax for the year would increase / decrease as a result of gains / losses on
mutual funds classified as at fair value through profit or loss.
b) Credit risk
Credit risk is the risk that counterparty will not meet its obligation under financial instrument
or customer contract, leading to a financial loss. The Company is exposed to credit risk
primarily from trade receivables, contract assets, other receivables, deposits with banks and
loans given.
Trade receiv able and contract assets
Senior management is responsible for managing and analysing the credit risk for each new
customer before standard payment, delivery terms and conditions are offered. The Company
assesses the credit quality of the customer, taking into account its financial position, past
experience and other factors. Individual risk limits are set based on internal or external
assessment. The utilisation of credit limits is regularly monitored.
An impairment analysis is performed at each reporting date for all customers. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of financial
assets disclosed in note 10 and 13.
Other receivables, deposits with banks and loans given
Credit risk from balances with banks is managed by the Company’s treasury department
in accordance with Company’s policy approved by the Risk Management Committee.
Investments of surplus funds are made within the credit limits and as per the policy approved
by the Board of Directors.
No credit limits were exceeded during the reporting period, and management does not expect
any losses from non-performance of the above assets. The maximum exposure to credit risk
at the reporting date is the carrying value of each class of financial assets disclosed in note
5, 9, 11, 12 and 13.
c) Liquidity risk

Cash flow forecasting is performed by Treasury function. Treasury team monitors rolling
forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet the
operational needs. Such forecasting takes into consideration the compliance with internal
cash management policy.
As per the Company’s policy, treasury team invests surplus cash in marketable securities
and time deposits with appropriate maturities or sufficient liquidity to provide headroom
to meet the operational needs. At the reporting date, the Company held mutual funds of
441.31 Crore (March 31, 2023: 6 9.93 Crore) and other liquid assets of 291.77 Crore
(March 31, 2023: 391.27 Crore) that are expected to readily generate cash inflows for
managing liquidity risk.
The table below summarises the maturity profile of the Company’s financial liabilities based
on contractual undiscounted payments.
As at March 31, 2024 On Less than 1-5 years More than

demand 12 months 5 years
Borrowings - 100.00 - -
Lease liabilities including interest - 7.75 15.97 0.45
Trade payables - 1,402.35 - -
Royalty and support services - 29.07 - -
Unpaid dividend 13.26 - - -
Retention money - 7.06 3.75 -
Deposits - - 27.45 -
Capital Creditors - 52.65 18.44 -
Others - 45.26 - -
As at March 31, 2023 On Less than 1-5 years More than

demand 12 months 5 years
Lease liabilities including interest - 7.12 19.89 0.70
Royalty and support services - 19.32 - -
Capital Creditors - 4.37 - -
Others - 55.18 - -

d) Capital management
The Company’s objectives when managing capital is to provide maximum returns to

shareholders, benefits to other stakeholders and to maintain an optimal capital structure
to reduce the cost of capital. The Company manages its capital structure and makes
adjustments in light of changes in economic conditions.
The gearing ratio is calculated as net debt divided by total capital. Net debt is calculated
as total borrowings less cash and cash equivalents. Total capital is calculated as equity as
shown in the balance sheet plus all other reserves attributable to equity shareholders of the
Company.
Crore
March 31, 2024 March 31, 2023
Borrowings 100.00 350.04
Less: Cash and cash equivalents 291.77 391.27
Net debt (191.77) ( 41.23)
Equity 6,163.09 5,367.98
Gearing Ratio ( times) -* -*
* Gearing ratio is not calculated as the amount of cash and cash equivalents is higher than
borrowings

44 Fair v alues
The following table provides a comparison by class of the carrying amounts and fair value of
the Company’s financial instruments other than those with carrying amounts that are reasonable
approximations of fair values and investment properties.
Carrying v alue Fair v alue

31 March 2024 31 March 2023 31 March 2024 31 March 2023
Crore Crore Crore Crore
Financial assets
FVTPL of investments in 441.31 689.93 441.31 689.93
mutual funds bonds
FVTOCI of investments 623.34 357.99 623.34 357.99
in certificate of deposit
(CD)
FVTOCI of investments 113.54 - 113.54 -
in quoted Bonds/NCD
FVTPL of Foreign 0.31 0.02 0.31 0.02
exchange forward
contracts
Non-current assets
Investment properties 977.31 1,019.04 1,416.71 1,453.73
The Management assessed that the fair values of cash and cash equivalents, other bank balances,
trade receivables, trade payables and other current liabilities approximate their carrying amounts
largely due to the short term maturities of these instruments.
The fair value of the financial assets and financial liabilities is included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a
forced or liquidation sale.
The fair value of investments in mutual funds is based on the price quotation at the reporting date
obtained from the asset management companies. The Company enters into derivative financial
instruments with various counterparties, principally financial institutions. Foreign exchange forward
contracts are valued using valuation techniques, which employ the use of market observable
inputs. The most frequently applied valuation techniques include forward pricing using present
value calculations.

Fair v alue hierarchy
The table below analyses financial instruments carried at fair value, by valuation method as defined
in accounting policy 1c, and investment properties by valuation method as defined in Note 3
Crore
Quoted prices Significant Significant Total
in activ e observ able unobserv able
markets inputs inputs
Lev el 1 Lev el 2 Lev el 3
Financial assets at FVTPL
Inv estments in mutual
funds & bond
March 31, 2024 - 441.31 - 441.31
March 31, 2023 - 689.93 - 689.93
Financial assets at
FVTOCI
Investments in certificate
of deposit
March 31, 2024 - 623.34 - 623.34
March 31, 2023 - 357.99 - 357.99
Inv estments in quoted
Bonds/ NCD
March 31, 2024 113.54 - - 113.54
March 31, 2023 - - - -
Financial liabilities at
FVTPL
Forward contracts liability
March 31, 2024 - 0.31 - 0.31
March 31, 2023 - 0.02 - 0.02
Non-current assets
Inv estment properties
March 31, 2024 - - 1,416.71 1,416.71
March 31, 2023 - - 1,453.73 1,453.73
There has been no transfer between Level 1 and Level 2 during the year. For details of valuation
method, assumption used for valuation of investment properties, refer note 3.

261
45 Financial Ratios
March March Variance

No. Name of the Ratio Numerator Denominator Rationale for Variance 25%
31, 2024 31, 2023 %
1 Current Ratio Current assets Current liabilities 2.90 2.70 7.32%
2 Debt Equity Ratio Short term debt + Shareholders' funds 0.02 0.07 -75.12% During the year, shareholders' funds have
Long term debt increased on account of profits during the year.
Borrowings have gone down on account of
repayments.
3 Debt Service Net profit Interest + Lease 79.09 74.38 6.33%
Coverage Ratio after taxes + payments + Principal
Depreciation + repayments
Interest
4 Return on Equity Net profits after Average shareholders 29% 22% 2 .7 % During the year the Company could achieve
Ratio * taxes funds higher revenue from operations and higher profits
resulting in better Return on Equity Ratio.
5 Inventory Turnover Cost of goods sold Average inventory 6.33 6.48 -2.2 %
Ratio
6 Trade Receivable Revenue from Average trade 4.88 5.45 -10.49%
Turnover Ratio operations (gross) receivable
7 Trade Payable Net credit Average trade payable 4.99 5.48 - .95%
Turnover Ratio purchases
8 Net Capital Turnover Revenue from Current assets - 2.32 2.43 -4.52%
Ratio operations (gross) Current liabilities
9 Net Profit Ratio * Net profits after Revenue from 19% 15% 25.60% During the year the Company could achieve
taxes operations (gross) higher revenue from operations and higher profits
resulting in better Net Profit Ratio
10 Return on Capital Earning before Total tangible assets 36% 2 % 27.04% During the year the Company could achieve
Employed * interest and taxes - (Current liabilities + higher revenue from operations and higher profits
Non-current liabilities) resulting in higher return on capital employed.
11 Return on Earning before Total assets 25% 20% 25. 1% During the year the Company could achieve
Investment * interest and taxes higher revenue from operations and higher profits
resulting in better Return on Investment
* Exceptional items have been excluded for computation of financial ratios

46 The Board of directors of Cummins Research and Technology India Private Limited (‘CRTI’) at
its meeting held on March 21, 2016, had decided to cease operations of CRTI. Accordingly, it
ceased its operations from April 1, 2016. The shareholders of CRTI, in their extra-ordinary general
meeting held on April 1, 2022, passed a resolution to initiate voluntary winding-up of CRTI under
Companies Act, 2013 and Insolvency and Bankruptcy Code, 2016. The liquidator, appointed by the
shareholders at the extra-ordinary general meeting, completed all the procedures pertaining to the
voluntary winding-up, and had submitted the dissolution application with the Mumbai Bench of the
National Company Law Tribunal (‘NCLT’) on May 20, 2023. The final order of dissolution (voluntary
liquidation) was passed by the NCLT on December 13, 2023 and accordingly, CRTI ceases to
exist.
47 Exceptional Items during the year ended March 31, 2024 comprise expenses on account of
voluntary retirement (VRP) and voluntary separation (VSP) programs aggregating to 1.70 Crore,
and during the year ended March 31, 2023 comprise expenses on account of Voluntary Retirement
Scheme (‘VRS’ or the ‘Scheme’) aggregating to 14.30 Crore.
48 Segment Information
In accordance with paragraph 4 of Ind AS 10 “Operating segments”, the Company has disclosed
segment information only on the basis of the consolidated financial statements.
49 Relationship with struck off companies
During the year ended March 31, 2024, the Company has not entered into any transactions with
the companies whose names were struck off under applicable regulations.

Place: Dubai


Date: May 29, 2024 Date: May 29, 2024

CONSOLIDATED FINANCIAL
STATEMENTS
ALONG WITH AUDIT REPORT
FOR FY 2023-24

Independent Auditor’ s Report
To the Members of Cummins India Limited

Report on the Audit of the Consolidated Financial Statements
Opinion
1. We have audited the accompanying consolidated financial statements of Cummins India Limited
(hereinafter referred to as the “Holding Company”) and its subsidiary (Holding Company and its
subsidiary together referred to as “the Group”), its associate company and joint venture (refer Note
- 43 to the attached consolidated financial statements), which comprise the consolidated Balance
Sheet as at March 31, 2024, and the consolidated Statement of Profit and Loss (including Other
Comprehensive Income), the consolidated Statement of Changes in Equity and the consolidated
Statement of Cash Flow for the year then ended, and notes to the consolidated financial statements,
material accounting policy information and other explanatory information (hereinafter referred to as
“the consolidated financial statements”).
2. In our opinion and to the best of our information and according to the explanations given to us,
the aforesaid consolidated financial statements give the information required by the Companies
Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the consolidated state of affairs of the Group, its
associate company and joint venture as at March 31, 2024, and consolidated total comprehensive
income (comprising of profit and other comprehensive income), consolidated changes in equity and
its consolidated cash flow for the year then ended.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section
143(10) of the Act. Our responsibilities under those Standards are further described in the “Auditor’s
Responsibilities for the Audit of the Consolidated Financial Statements” section of our report. We are
independent of the Group, its associate company and joint venture in accordance with the ethical
requirements that are relevant to our audit of the consolidated financial statements in India in terms
of the Code of Ethics issued by the Institute of Chartered Accountants of India and the relevant
provisions of the Act, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained and the audit evidence obtained
by the other auditors in terms of their reports referred to in sub-paragraph 14 of the Other Matters
section below, is sufficient and appropriate to provide a basis for our opinion.
K ey Audit Matters
4. ey audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the consolidated financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.

Assessment of warranty prov ision
( Refer to Note 39 ( i) to the consolidated We have performed following procedures:

financial statements)
The Company prov ides warranty on Understood, evaluated, and tested the design
sale of engines to customers and and operating effectiveness of the controls
recogniz es prov ision in respect of the over estimation of warranty costs and related
costs expected to fulfil the warranty accruals.
obligation ov er the period/ term of the
Obtained an understanding of the warranty
warranty.
terms offered by the Company on sale of
products.
In accordance with the requirements of Ind
AS 37 – Provisions, Contingent Liabilities Assessed management’s estimation process
and Contingent Assets, the provision by performing a historical trend analysis for
towards warranty obligation is estimated by warranty cost accruals made in prior years.
the Company, primarily considering factors Evaluated the method used by management in
such as historical trend, average historical making the accounting estimates by verifying
failure rate, estimation of expected pattern source data for various input factors such as
of future claims and estimated replacement historical trend, average historical failure rate,
cost. In the case of voluntary extended estimation of expected pattern of future claims
warranty services offered pursuant to and estimated replacement cost and enquiring
campaigns, management’s experts are with management’s experts.
involved in the estimation of the failure rate
during the period of campaign. Verified the computation of provision
for warranty costs including testing of
The estimation of warranty costs involves completeness, arithmetical accuracy and
significant management judgements and validity of the data used in the warranty
estimates as described above, and the calculations.
amount is significant to the consolidated Verified the computation for determining the
financial statements. Accordingly, this has present value in the case of warranty for
been considered as key audit matter. periods exceeding one year.
Verified the adequacy of the disclosures in the
consolidated financial statements.
Based on the above audit procedures
performed, we did not find any material
exceptions with regard to the management
assessment of provision for warranty costs
and the related disclosures thereof.
Other Information
5. The Holding Company’s Board of Directors is responsible for the other information. The other
information comprises the information included in the annual report but does not include the
consolidated financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the

other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements, or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If, based on the work we have performed and the reports of the
other auditors as furnished to us (Refer paragraph 14 below), we conclude that there is a material
misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Gov ernance for the Consolidated
Financial Statements
6. The Holding Company’s Board of Directors is responsible for the preparation and presentation of
these consolidated financial statements in term of the requirements of the Act that give a true and
fair view of the consolidated financial position, consolidated financial performance and consolidated
cash flow, and changes in equity of the Group including its associate company and joint venture
in accordance with the accounting principles generally accepted in India, including the Accounting
Standards specified under Section 133 of the Act. The respective Board of Directors of the companies
included in the Group and of its associate company and joint venture are responsible for maintenance
of adequate accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Group and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are reasonable
and prudent; and the design, implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the consolidated financial statements that give a true
and fair view and are free from material misstatement, whether due to fraud or error, which have
been used for the purpose of preparation of the consolidated financial statements by the Directors
of the Holding Company, as aforesaid.
7. In preparing the consolidated financial statements, the respective Board of Directors of the companies
included in the Group and of its associate company and joint venture are responsible for assessing
the ability of the Group and of its associate company and joint venture to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Group or to cease operations,
or has no realistic alternative but to do so.
. The respective Board of Directors of the companies included in the Group and of its associate
company and joint venture are responsible for overseeing the financial reporting process of the
Group and of its associate company and joint venture.
Auditor’ s Responsibilities for the Audit of the Consolidated Financial Statements
9. Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
10. As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we
are also responsible for expressing our opinion on whether the Holding company has adequate
internal financial controls with reference to consolidated financial statements in place and the
operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the ability of the Group and
its associate company and joint venture to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the Group and its associate
company and joint venture to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group and its associate company and joint venture to express
an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the audit of the financial statements of such entities included in
the consolidated financial statements of which we are the independent auditors. For the other
entities included in the consolidated financial statements, which have been audited by other
auditors, such other auditors remain responsible for the direction, supervision and performance
of the audits carried out by them. We remain solely responsible for our audit opinion.
11. We communicate with those charged with governance of the Holding Company and such other
entities included in the consolidated financial statements of which we are the independent auditors
regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
12. We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
13. From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the consolidated financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the

adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Other Matter
14. The consolidated financial statements also include the Group’s share of total comprehensive income
(comprising of profit and other comprehensive income) of Rs. 151.96 crore and Rs. 91.7 crore for the
year ended March 31, 2024 as considered in the consolidated financial statements, in respect of one
associate Company and one joint venture respectively, whose financial statements have not been
audited by us. These financial statements have been audited by other auditors whose reports have
been furnished to us by the Management, and our opinion on the consolidated financial statements
insofar as it relates to the amounts and disclosures included in respect of these associate company
and joint venture and our report in terms of sub-section (3) of Section 143 of the Act including report
on Other Information insofar as it relates to the aforesaid joint venture is based solely on the reports
of the other auditors.
Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory
Requirements below, is not modified in respect of the above matters with respect to our reliance on
the work done and the reports of the other auditors.
Report on Other Legal and Regulatory Requirements
15. As required by paragraph 3(xxi) of the Companies (Auditor’s Report) Order, 2020 (“CARO 2020”),
issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we
report that there are no qualifications or adverse remarks included by the respective auditors in their
CARO 2020 reports issued in respect of the standalone financial statements of the companies which
are included in these Consolidated Financial Statements.
16. As required by Section 143(3) of the Act, we report, to the extent applicable, that:
(a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid
consolidated financial statements have been kept so far as it appears from our examination of
those books and the reports of the other auditors, except in case of subsidiary, the backup of
books of account and other books and papers maintained in electronic mode has not been
maintained on a daily basis on servers physically located in India during the year and the matters
stated in paragraph 16(h)(vi) below on reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014 (as amended) (“the Rules”).
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including other
comprehensive income), the Consolidated Statement of Changes in Equity and the Consolidated
Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of
account and records maintained for the purpose of preparation of the consolidated financial
statements.
(d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting
Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors of the Holding Company
as on March 31, 2024 taken on record by the Board of Directors of the Holding Company
and the reports of the statutory auditors of its subsidiary company, associate company and
joint venture incorporated in India, none of the directors of the Group companies, its associate
company and joint venture incorporated in India is disqualified as on March 31, 2024 from being
appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the maintenance of accounts and other matters connected therewith, reference
is made to our remarks in paragraph 16(b) above on reporting under Section 143(3)(b) and
paragraph 16(h)(vi) below on reporting under Rule 11(g) of the Rules.
(g) With respect to the adequacy of internal financial controls with reference to consolidated financial
statements of the Group and the operating effectiveness of such controls, refer to our separate
report in Annexure A.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
i. The consolidated financial statements disclose the impact, if any, of pending litigations on
the consolidated financial position of the Group, its associate company and joint venture–
Refer Note 36 to the consolidated financial statements.
ii. The Group, its associate company and joint venture did not have any long-term contracts
including derivative contracts as at March 31, 2024 for which there were any material
foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred to the Investor
Education and Protection Fund by the Holding Company and its subsidiary company,
associate company and joint venture incorporated in India during the year.
iv. (a) The respective Managements of the Company and its subsidiary/joint venture/
associate which are companies incorporated in India whose financial statements have
been audited under the Act have represented to us and the other auditors of such joint
venture/associate respectively that, to the best of their knowledge and belief, no funds
(which are material either individually or in the aggregate) have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company or any of such subsidiary/joint venture/associate to
or in any other persons or entities, including foreign entities (“Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Company or any of such subsidiary/joint venture/
associate (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
(b) The respective Managements of the Company and its subsidiary/ joint venture/
associate which are companies incorporated in India whose financial statements have
been audited under the Act have represented to us and the other auditors of such
joint venture/associate respectively that, to the best of their knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received
by the Company or any of such subsidiary/joint venture/associate from any persons or
entities, including foreign entities (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the Company or any of such subsidiary/ joint
venture/associate shall, 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 provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
(c) Based on the audit procedures, that has been considered reasonable and appropriate
in the circumstances, performed by us and those performed by the auditors of the
joint venture/associate which are companies incorporated in India whose financial
statements have been audited under the Act, nothing has come to our or other auditor’s
notice that has caused us or the other auditors to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e) contain any material misstatement.
v. The dividend declared and paid during the year by the Holding Company, its associate
company and joint venture, is in compliance with Section 123 of the Act. The subsidiary
Company has not declared/paid any dividend during the year.
vi. Based on our examination, which included test checks and that performed by the respective
auditors of the associate and joint venture, which are companies incorporated in India whose
financial statements have been audited under the Act, other than in respect of one joint
venture as described below, the Group and its associate have used accounting software
for maintaining books of account which have a feature of recording audit trail (edit log)
facility. However, the audit trail feature did not operate throughout the year. Accordingly, the
question of our commenting on whether the audit trail was tampered with, does not arise.
The following remark was included in the audit report dated May 21, 2024, containing an
unmodified audit opinion on the financial statements of Valvoline Cummins Private Limited,
a joint venture of the Holding Company issued by an independent firm of Chartered
Accountants, which is reproduced as under:
Based on our examination which included test checks, 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, except that audit trail feature is not enabled for direct changes,
if any, made using certain privileged or administrative access rights to the underlying
database. Further, during the course of our audit no instance of audit trail feature being
tampered with was noted in respect of the accounting software.
17. The Group has paid/provided for managerial remuneration in accordance with the requisite approvals
mandated by the provisions of Section 197 read with Schedule V to the Act. The provisions of Section
197 read with Schedule V to the Act are applicable only to public companies. Accordingly, reporting
under Section 197(16) of the Act is not applicable to the associate company and joint venture.

Partner
UDIN: 2404 125B GOUR5375

Place: Pune
Date: May 29, 2024

Annexure A to Independent Auditor’ s Report
Referred to in paragraph 16(g) of the Independent Auditor’s Report of even date to the members of
Cummins India Limited on the consolidated financial statements for the year ended March 31, 2024
Report on the Internal Financial Controls with reference to Consolidated Financial

Statements under clause ( i) of sub-section 3 of Section 143 of the Act
1. In conjunction with our audit of the consolidated financial statements of the Company as of and for
the year ended March 31, 2024, we have audited the internal financial controls with reference to
financial statements of Cummins India Limited (hereinafter referred to as “the Holding Company”) and
its subsidiary company, its associate company and joint venture, which are companies incorporated
in India, as of that date.
Management’ s Responsibility for Internal Financial Controls

2. The respective Board of Directors of the Holding Company, its subsidiary company, its associate
company and joint venture, to whom reporting under clause (i) of sub section 3 of Section 143
of the Act in respect of the adequacy of the internal financial controls with reference to financial
statements is applicable, which are companies incorporated in India, are responsible for establishing
and maintaining internal financial controls based on “internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (“the Guidance Note”)
issued by the Institute of Chartered Accountants of India (“ICAI”). These responsibilities include the
design, implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including adherence to the
respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Act.
Auditor’ s Responsibility
3. Our responsibility is to express an opinion on the Company’s internal financial controls with reference
to consolidated financial statements based on our audit. We conducted our audit in accordance with
the Guidance Note issued by the ICAI and the Standards on Auditing deemed to be prescribed under
Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether adequate internal financial controls
with reference to consolidated financial statements was established and maintained and if such
controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system with reference to financial statements and their operating effectiveness.
Our audit of internal financial controls with reference to financial statements included obtaining an
understanding of internal financial controls with reference to financial statements, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error.
5. We believe that the audit evidence we have obtained and the audit evidence obtained by the other
auditors in terms of their reports referred to in the Other Matters paragraph below is sufficient and
appropriate to provide a basis for our audit opinion on the Holding Company’s internal financial
controls system with reference to consolidated financial statements.

Meaning of Internal Financial Controls with reference to Consolidated Financial
Statements
6. A company’s internal financial control with reference to consolidated financial statements is a process
designed to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of consolidated financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal financial control with reference to consolidated
financial statements includes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the company; (2) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made only
in accordance with authorisations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or
disposition of the company’s assets that could have a material effect on the consolidated financial
statements.
Inherent Limitations of Internal Financial Controls with reference to Consolidated

Financial Statements
7. Because of the inherent limitations of internal financial controls with reference to consolidated financial
statements, including the possibility of collusion or improper management override of controls,
material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls with reference to consolidated financial statements to
future periods are subject to the risk that the internal financial control with reference to consolidated
financial statements may become inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.
Opinion
. In our opinion, the Holding Company, its subsidiary company, its associate company and joint venture,
which are companies incorporated in India, have, in all material respects, an adequate internal
financial controls system with reference to financial statements and such internal financial controls
with reference to financial statements were operating effectively as at March 31, 2024, based on the
internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note issued by the ICAI.

Other Matter
9. Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness
of the internal financial controls with reference to financial statements insofar as it relates to one
associate company and one joint venture, which are companies incorporated in India, is based on
the corresponding reports of the auditors of such companies incorporated in India. Our opinion is not
modified in respect of this matter.

Partner
UDIN: 2404 125B GOUR5375

Place: Pune
Date: May 29, 2024

CONSOLIDATED BALANCE SHEET
AS AT MARCH 31, 2024
` Crore
As at As at
Particulars Notes
March 31, 2024 March 31, 2023
ASSETS
Non-current assets
Property, plant and equipment 2.1 1,158.89 1,132.77
Capital work-in-progress (including investment property in progress) 2.3 94.65 41.29
Right-of-use assets 37 36.56 36.20
Investment properties 3 977.31 1,019.04
Intangible assets 2.2 129.68 37.80
Intangible assets under development 2.3 2.16 -
Financial assets
Investments in joint ventures and an associate 4 463.31 409.52
Other non-current financial assets 5 13.92 12.24
Income tax assets (net) 6 57.85 35.29
Other non-current assets 7 93.98 96.02
3,028.31 2,820.17
Current assets
Inventories 8 949.65 903.66
Financial assets
Investments 9 1,178.19 1,047.92
Trade receivables 10 2,085.35 1,597.12
Cash and cash equivalents 11 299.89 396.69
Other bank balances 12 1,212.89 989.54
Other current financial assets 13 38.73 42.85
Other current assets 14 174.81 119.55
Assets classified as held for sale 15 2.69 1.14
5,942.20 5,098.47
TOTAL 8,970.51 7,918.64
EQUITY AND LIABILITIES
Equity
Equity share capital 16 55.44 55.44
Other equity
Retained earnings 17 5,383.85 4,540.26
Other reserves 17 1,173.03 1,162.54
6,612.32 5,758.24
Non-current liabilities
Other non-current financial liabilities 18 61.29 40.80
Provisions 19 120.98 105.08
Deferred tax liabilities (net) 20 87.18 100.83
Other non-current liabilities 21 11.96 3.27
301.26 270.05
Current liabilities
Borrowings 22 100.00 350.04
Trade payables
Total outstanding dues of micro and small enterprises 23 72.14 70.03
Total outstanding dues of creditors other than micro and small enterprises 23 1,336.63 1,079.47
Other current financial liabilities 24 150.51 102.99
Other current liabilities 25 226.84 144.52
Provisions 19 163.68 137.32
2,056.93 1,890.35
TOTAL 8,970.51 7,918.64
Membership Number: 48125 DIN: 00149501 DIN: 00010180
Place: Dubai
PAN: AMQPJ5216P PAN: AAJPP9246Q
Date: May 29, 2024 Date: May 29, 2024

CONSOLIDATED STATEMENT OF PROFIT AND
LOSS FOR THE YEAR ENDED MARCH 31, 2024
` Crore
Year ended Year ended

Particulars Notes
March 31, 2024 March 31, 2023
Revenue from operations 26 9,000.20 7,772.09
Other income 27 378.07 308.15
Total income 9,378.27 8,080.24
Expenses:
Cost of materials consumed 28.1 4,813.39 4,567.98
Purchases of traded goods 939.16 781.23
Change in inventories of finished goods, work-in-progress and traded goods 28.2 18.37 (126.69)
Employee benefits expense 29 801.37 648.88
Finance costs 30 27.40 16.24
Depreciation and amortisation expense 2, 3, 37 159.18 142.04
Other expenses 31 658.25 652.95
Total expenses 7,417.12 6,682.63
Profit before exceptional items, share of profit of joint ventures and associate and tax 1,961.15 1,397.61
Exceptional items (expense) / income 51 (1.70) (14.30)
Profit after exceptional items before share of profit of joint ventures and associate and before tax 1,959.45 1,383.31
Share of profit of joint ventures and associate after tax 245.16 207.98
Tax expense
Current tax 20 510.78 355.63
Deferred tax 20 (11.11) 5.95
Tax for earlier years 20 (15.64) 1.56
Total tax expense 484.03 363.14
Profit after tax 1,720.58 1,228.15
Other Comprehensive Income (OCI)

Items not to be reclassified to profit or loss in subsequent periods
Remeasurement (loss)/ gain on defined benefit plans (21.09) 5.67
Income tax effect 5.30 (1.43)
Items to be reclassified to profit or loss in subsequent periods
Changes in the fair value of financial instruments (0.62) (0.13)
Income tax effect 0.16 0.03
Other comprehensive (expense) / income, net of tax (16.25) 4.14
Share in joint ventures' and associate's OCI after tax (net) not to be reclassified to profit or loss in subsequent periods (1.42) (0.55)
Total Other comprehensive (expense) / income for the year, net of tax (17.67) 3.59
Total comprehensive income for the year, net of tax 1,702.91 1,231.74
Earnings per equity share:
Basic and diluted earnings per share (`) 32 62.07 44.31
(Nominal value per share ` 2)

Place: Dubai
Date: May 29, 2024 Date: May 29, 2024

CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE YEAR ENDED MARCH 31, 2024
` Crore

Particulars
March 31, 2024 March 31, 2023
I. Cash generated from operating activities
a) Adjustments to reconcile profit before tax to net cash flows
Interest income (120.68) (73.76)
Loss/(gain) on assets sold, discarded, etc. (1.60) (2.49)
(Gain)/loss on redemption /sale of investments (net) (52.20) (43.89)
Equity contribution from Holding company 10.49 5.23
Unrealised foreign exchange fluctuation (net) (14.16) (14.07)
Mark to market ('MTM') of financial instruments 0.31 0.02
Provision for doubtful debts and advances (net) 0.53 1.01
Share of profit of joint ventures and associate (245.16) (207.98)
Exceptional Items (Note 51) 1.70 14.30
(234.19) (163.35)
b) Working capital adjustments
Trade receivables (520.93) (363.41)
Inventories (45.99) (166.24)
Current and non-current financial assets (2.17) 7.41
Other current and non-current assets (54.34) 31.37
Current and non-current financial liabilities 65.83 18.95
Other current and non-current liabilities 77.47 30.75
Current and non-current provisions 11.04 15.56
(183.84) (256.15)
Total adjustments (a+b) (418.03) (419.50)
Cash generated from operating activities 1,786.58 1,171.79
Tax paid (net of refunds and interest thereon) (501.24) (352.13)
Net cash generated from operating activities 1,285.34 819.66
II. Cash flows (used in)/from investing activities

Purchase of property, plant and equipment, intangible assets and investment property (286.02) (162.06)
Proceeds from sale of property, plant and equipment 6.05 7.32
Intangible assets under development (2.16) 0.41
Interest received 120.64 73.76
Dividend received (including received from associate and joint ventures) 189.95 112.07
Investments
Sale/(Purchase) of short term investments (net) (78.07) (426.38)
Term deposits with banks (218.62) 464.02
Net cash (used in)/from investing activities (268.23) 69.14

CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE YEAR ENDED MARCH 31, 2024
` Crore

Particulars
March 31, 2024 March 31, 2023
III. Cash flows (used in)/from financing activities
Proceeds from borrowings/repayment (net) (250.04) (44.64)
Finance costs (17.88) (13.04)
Payment of principal portion of lease liabilities (7.01) (5.96)
Dividend paid (including tax on dividend) (859.32) (623.70)
Net cash (used in)/from financing activities (1,134.25) (687.34)
IV. Net change in cash and cash equivalents (I+II+III) (117.14) 201.46
V. Net foreign exchange difference 20.34 17.80
VI. Cash and cash equivalents at the beginning of the year 396.69 177.43
VII. Cash and cash equivalents at the end of the year (IV+V+VI) 299.89 396.69
Components of cash and cash equivalents

Cash on hand - 0.01
Bank balances
Cheque in hand - 0.22
Total cash and cash equivalents (Refer note 11) 299.89 396.69


Place: Dubai


Date: May 29, 2024 Date: May 29, 2024

CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY FOR THE YEAR ENDED MARCH 31, 2024
A) Equity share capital
Particulars ` Crore
As at April 1, 2022 55.44
As at March 31, 2023 55.44
As at March 31, 2024 55.44
B) Other equity
` Crore
Retained earnings (Refer note 17) Other reserves (Refer note 17)
Equity
contribution
Particulars Other General Capital Total
Statement of from
comprehensive reserve redemption
profit and loss Cummins Inc.
income (OCI) reserve
- share based
payments*
Balance as at April 1, 2022 3,972.02 (39.80) 1,142.02 0.70 14.59 5,089.53
Add/(Less): Other comprehensive income -
- 3.69 - - - 3.69
subsequent periods
- (0.10) - - - (0.10)
subsequent periods
Total comprehensive income for the year 1,228.15 3.59 - - - 1,231.74
Add: Equity contribution during the year - - - - 5.23 5.23
- Final dividend for FY 2021-2022 291.06 - - - - 291.06
Add/(Less): Other comprehensive income -
- (17.21) - - - (17.21)
subsequent periods
- (0.46) - - - (0.46)
subsequent periods
Total comprehensive income for the year 1,720.58 (17.67) - - - 1,702.91
Add: Equity contribution during the year - - - - 10.49 10.49
- Final dividend for FY 2022-2023 360.36 - - - - 360.36
* Scheme managed and administered by the Holding Company.

Place: Dubai
Date: May 29, 2024 Date: May 29, 2024

Notes to consolidated financial statements for the year
1A Material accounting policy information
a) Corporate information
The consolidated financial statements comprise the financial statements of Cummins India
Limited (‘CIL’ or ‘the Company’) and its subsidiary (together referred to as ‘the Group’) for
the year ended March 31, 2024. The Company is a public company domiciled in India and is
incorporated under the provisions of the Companies Act applicable in India. The Company’s
shares are listed on two recognised stock exchanges in India. The registered office of the
Company is located at Cummins India Office Campus, Balewadi, Pune. The Group is principally
engaged in the business of manufacturing, trading and selling of engines and allied activities.
The consolidated financial statements of the Group for the year ended March 31, 2024 were
authorised for issue in accordance with the resolution of the directors on May 29, 2024.
b) Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with
Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to time) and presentation requirements of
division II of schedule III to the Companies Act, 2013 (Ind AS compliant schedule III).
The consolidated financial statements are prepared on a historical cost basis, except for the
following assets and liabilities:
- certain financial assets and financial liabilities (including derivative instruments) which have
been measured at fair value;
- assets held for sale are measured at lower of carrying amount or fair value less cost to sell;
- defined benefit plans - Plan assets are measured at fair value.
All assets and liabilities have been classified as current and non-current as per the Group’s
normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013.
Based on the nature of products and services and the time between the acquisition of assets
for processing and their realisation in cash and cash equivalents, the Group has ascertained
its operating cycle as 12 months for the purpose of current and non-current classification of
assets and liabilities. Deferred tax assets and liabilities are classified as non-current assets and
liabilities.
c) Principles of consolidation
i) Subsidiaries
Subsidiaries are consolidated from the date on which control is transferred to the Group
and are not consolidated from the date that control ceases. Control is achieved when the
Group is exposed, or has rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over the investee.

Consolidation procedure: The financial statements of the Company and its subsidiary have
been consolidated on a line-by-line basis by adding together like items of assets, liabilities,
income and expenses. Intra-group balances and intra-group transactions and resulting
unrealised profits/ losses have been eliminated. Ind AS 12, Income Taxes applies to
temporary differences that arise from the elimination of profits and losses resulting form
intra-group transactions.
Profit or loss on each component of OCI are attributed to the equity holders of parent of the
Group and to the non- controlling interest.
Consolidated financial statements are prepared using uniform accounting policies for like
transactions and other events in similar circumstances. The financial statements of all
entities used for the purpose of consolidation are drawn up to same reporting date as that
of the parent company, i.e. year end on March 31.
ii) Associates and Joint Ventures
An associate is an entity over which the Group has significant influence. Significant
influence is the power to participate in the financial and operating policy decisions of the
investee, but is not control or joint control over those policies. A joint venture is a type of
joint arrangement whereby the parties that have joint control of the arrangement have
rights to the net assets of the joint venture. Joint control is the contractually agreed sharing
of control of an arrangement, which exists only when decisions about the relevant activities
require the unanimous consent of the parties sharing control.
Investments in associates and joint venture companies have been accounted for by using
the equity method of accounting whereby the investment is initially recorded at cost. The
carrying amount of the investment is adjusted thereafter for the post acquisition changes in
the investor’s share of net assets of the associate or joint venture.
The statement of profit or loss reflects the Group’s share of the results of operations of the
associate or joint venture. Any change in OCI of those investees is presented as part of the
Group’s OCI. In addition, when there has been a change recognised directly in the equity
of the associate or joint venture, the Group recognises its share of any changes, when
applicable, in the statement of changes in equity. Unrealised gains and losses resulting
from transactions between the Group and the associate and joint venture are eliminated to
the extent of the interest in the associate or joint venture. If an entities share of losses of
an associate or joint venture equals or exceeds its interest in the associate or joint venture
(which includes any long term interest that, in substance, form part of the Group’s net
investment in the associate or joint venture), the entity discontinues recognizing its share
of further losses. Additional losses are recognized only to the extent that the Group has
incurred legal or constructive obligations or made payments on behalf of the associate
or joint venture. If the associate or joint venture subsequently reports profits, the entity
resumes recognizing its share of those profits only after its share of the profits equals the
share of losses not recognized.
The financial statements of the associate or joint venture are prepared for the same reporting
period as the Group. After application of the equity method, the Group determines whether

it is necessary to recognise an impairment loss on its investment in its associate and joint
venture. The Group determines at each reporting date whether there is any objective
evidence that the investment in the associate or joint venture is impaired. If this is the case,
the Group calculates the amount of impairment as the difference between the recoverable
amount of the associate or joint venture and its carrying value and recognises the loss as
‘Share of profit of an associate and a joint venture’ in the statement of profit or loss.
Upon loss of significant influence over the associate or joint control over the joint venture,
the Group measures and recognises any retained investment at its fair value. Any difference
between the carrying amount of the associate or joint venture upon loss of significant
influence or joint control and the fair value of the retaining investment and proceeds from
disposal is recognised in Statement of Profit and Loss.
The list of entities included in consolidation, relationship with CIL and CIL’s shareholding
therein is as under:
March 31, 2024 March 31, 2023

Name of the
Company
Relationship Shareholding Relationship Shareholding
Cummins Sales &

Service Private Limited
(Formerly known as
Subsidiary 100% Subsidiary 100%
"Cummins SVAM
Sales & Service
Private Limited")
Cummins Research
and Technology India
- - - -
Private Limited
(Refer note 40)
Valvoline Cummins
Joint Venture 50% Joint Venture 50%
Private Limited
Cummins Generator
Technologies India Associate 48.54% Associate 48.54%
Private Limited
All the above entities are incorporated in India.
d) Fair value Measurements
The Group measures financial instruments at fair value on initial recognition and at each Balance
Sheet date.
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. The fair value

measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
i) In the principal market for the asset or liability; or

ii) In the absence of a principal market, in the most advantageous market for the asset or
liability
The principal or the most advantageous market must be accessible by the Group. The fair value
of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best
interest.
A fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy. This is described, as follows, based on the lowest
level input that is significant to the fair value measurement as a whole:
i) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or
liabilities
ii) Level 2 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable
iii) Level 3 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.
For the purpose of fair value disclosures, the Group has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level
of the fair value hierarchy as explained above. This note summarises accounting policy for fair
value.
For assets and liabilities that are recognised in the financial statements on a recurring basis,
the Group determines whether transfers have occurred between levels in the hierarchy by
re-assessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
Other fair value related disclosures are given in the relevant notes:
Disclosures for valuation methods, significant estimates and assumptions Note 35 and 47
Financial instruments (including those carried at amortised cost) Note 4, 5, 9 to 13
Investment Properties Note 3 and 47

e) Property, plant and equipment and investment properties
Property plant and equipment, capital work in progress and investment properties are stated at
cost of acquisition or construction net of accumulated depreciation and impairment loss (if any).
All significant costs relating to the acquisition and installation of property plant and equipment/
investment properties are capitalised. Subsequent costs are included in the asset’s carrying
amount or recognised as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost of the item can be
measured reliably. The carrying amount of the replaced part is derecognised. All other repairs
and maintenance are charged to the Statement of Profit and Loss during the financial year in
which they are incurred.
When significant parts of plant and equipment are required to be replaced at intervals, the
Group depreciates them separately based on their specific useful lives.
Depreciation is computed on straight line method based on useful lives, determined based on
internal technical evaluation as follows:
Assets Useful life
Roads 10 years
Office building and investment properties upto 60 years
Factory building 30 years
Plant and machinery 3 to 15 years
Furniture and fittings 5 to 10 years
Vehicles 8 to 9 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the
end of each reporting period.
Freehold land is carried at cost. Losses arising from the retirement of, and gains and losses
arising from disposal of property, plant and equipment which are carried at cost are recognised
in the Statement of Profit and Loss.
Leasehold improvements are amortised on straight line basis over the period of lease.
Transfers are made to investment properties only when there is a change in use. Transfers
between investment property and owner-occupied property do not change the carrying amount
of the property transferred and they do not change the cost of that property for measurement or
disclosure purposes.

f) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following
initial recognition, intangible assets are carried at cost less any accumulated amortisation and
accumulated impairment losses. Intangible assets with finite useful life are amortised over their
respective useful lives and assessed for impairment whenever there is an indication that the
intangible asset may be impaired.
Softwares are amortised over a period of useful lives from the date of purchase/date of
completion of development and put to use (3-5 years), being the estimated useful life as per
the management estimate or license term whichever is less. The amortisation period for an
intangible asset with finite useful life is reviewed atleast at the end of each reporting period.
Losses arising from the retirement of, and gains and losses arising from disposal of intangible
assets which are carried at cost are recognised in the Statement of Profit and Loss.
g) Inventories
Inventories are valued at the lower of cost and net realisable value after providing for obsolescence.
Costs incurred in bringing each product to its present location and condition are accounted for
as follows:
Raw materials : cost includes cost of purchase and other costs incurred in bringing the inventories
Finished goods and work in progress : cost includes cost of direct materials and labour and a
proportion of manufacturing overheads based on the normal operating capacity.
Traded goods : cost includes cost of purchase and other costs incurred in bringing the inventories
Material cost is determined on weighted average basis. Net realisable value is the estimated
selling price in the ordinary course of business, less estimated costs of completion and the
estimated costs necessary to make the sale. Material in transit is valued at cost incurred till
date.
h) Foreign currency transactions
The Group’s consolidated financial statements are presented in INR (`), which is also CIL and
subsidiary’s functional currency.
Transactions in foreign currencies are accounted at the functional currency spot rates prevailing
on the date of transactions. Monetary foreign currency financial assets and liabilities are
translated at functional currency spot rates of exchange at the reporting date. The resulting
exchange differences are appropriately recognised in the Statement of Profit and Loss.
Non-monetary items that are measured in terms of historical costs in a foreign currency are
translated using the exchange rates at the dates of the initial transactions. Non - monetary items

measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value is determined. The gain or loss arising on translation of non- monetary items
measured at fair value is treated in line with the recognition of the gain or loss on the change in
the fair value of the item.
i) Revenue recognition
i) Revenue from sale of products
Revenue from contracts with customers for sale of products is recognised, generally at
a point in time, when control of the goods is transferred to the customer at an amount
that reflects the transaction price which is the consideration that the Group expects to be
entitled in exchange for those goods, excluding taxes or duties collected on behalf of the
government e.g. goods and service tax (GST). The Group has generally concluded that it
is the principal in its revenue arrangements.
ii) Volume rebates
The Group provides retrospective volume rebates to certain customers once the quantity
of products purchased by them during the period exceeds a threshold specified in the
contract. Rebates are offset against amounts payable by the customer and are reduced
from revenue. To estimate the variable consideration for the expected future rebates, the
Group applies the most likely amount method for contracts with a single-volume threshold
and the expected value method for contracts with more than one volume threshold. The
selected method that best predicts the amount of variable consideration is primarily driven
by the number of volume thresholds contained in the contract.
iii) Warranty obligations
The Group typically provides warranties for general repairs of defects that existed at the time
of sale. These assurance-type warranties are accounted for under Ind AS 37 Provisions,
Contingent Liabilities and Contingent Assets.
iv) Sale of services - installation services
The Group provides installation services that can be either sold separately or bundled
together with the sale of products to a customer. The installation services can be obtained
from other providers and do not significantly customise or modify the product sold.
Contracts for bundled sales of products and installation services are comprised
of two performance obligations because the promises to transfer products
and provide installation services are capable of being distinct and separately
identifiable. Accordingly, the Group allocates the transaction price based on
the relative standalone selling prices of the products and installation services.
The Group recognises revenue from installation services over time, using an output method
to measure progress towards complete satisfaction of the service, because the customer
simultaneously receives and consumes the benefits provided by the Group. Revenue from
sale of products is recognised at a point in time, generally upon delivery of the products.

v) Sale of services - service contracts
The Group has long-term service contracts with customers. Revenue from service contracts
is recognised over time i.e based on the proportionate completion method. Completion is
determined as a proportion of costs incurred till date to the total estimated contract costs.
Provision is made for any loss in the period in which it is foreseen. The Group considers
that this method is an appropriate measure of the progress towards complete satisfaction
of these performance obligations under Ind AS 115.
In case of other service contracts, revenue is recognized over time, using input/output
method, when services are rendered and on receipt of confirmation from customers, as the
case may be.
vi) Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred
to the customer. If the Group performs by transferring goods or services to a customer
before the customer pays the consideration or before payment is due, a contract asset is
recognised for the earned consideration that is conditional.
vii) Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the
Group has received consideration (or an amount of consideration is due when billing has
been done) from the customer. If a customer pays consideration before the Group transfers
goods or services to the customer, a contract liability is recognised when the payment is
made or the payment is due (whichever is earlier). Contract liabilities are recognised as
revenue when the Group performs under the contract.
viii) Trade receivables
A receivable represents the Group’s right to an amount of consideration that is unconditional

(i.e., only the passage of time is required before payment of the consideration is due).
ix) Interest income is recognised using effective interest rate method (EIR). EIR is the rate
that exactly discounts the estimated future cash payments or receipts over the expected
life of the financial instrument or a shorter period, where appropriate, to the gross amount
of the financial asset or to the amortised cost of a financial liability. When calculating EIR
the Group, estimates the expected cash flows by considering all the contractual terms of
the financial instrument but doesn’t consider the expected credit losses. Interest income is
included in Other Income in the Statement of Profit and Loss.
x) Rental income is recognised on straight-line basis over the lease term, other than escalations
on account of inflation.
xi) Dividend income from investments is recognised when the right to receive payment is
established.

j) Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is,
if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.
Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for
short-term leases and leases of low-value assets. The Group recognises lease liabilities to make
lease payments and right-of-use assets representing the right to use the underlying assets.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date
the underlying asset is available for use). Right-of-use assets are measured at cost, less any
accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised,
initial direct costs incurred, and lease payments made at or before the commencement date
less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis
over the shorter of the lease term and the estimated useful lives of the assets.
If ownership of the leased asset transfers to the Group at the end of the lease term or the cost
reflects the exercise of a purchase option, depreciation is calculated using the estimated useful
life of the asset. The right-of-use assets are also subject to impairment. Refer to the accounting
policies in section “o” impairment of non-financial assets.
Lease Liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the
present value of lease payments to be made over the lease term. The lease payments include
fixed payments (including insubstance fixed payments) less any lease incentives receivable,
variable lease payments that depend on an index or a rate, and amounts expected to be paid
under residual value guarantees.
In calculating the present value of lease payments, the Group uses its incremental borrowing
rate at the lease commencement date because the interest rate implicit in the lease is not
readily determinable. After the commencement date, the amount of lease liabilities is increased
to reflect the accretion of interest and reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease
term, a change in the lease payments (e.g., changes to future payments resulting from a change
in an index or rate used to determine such lease payments) or a change in the assessment of
an option to purchase the underlying asset.

Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of offices
and warehouses. It also applies the lease of low-value assets recognition exemption to leases
of office equipment that are considered to be low value. Lease payments on short-term leases
and leases of low-value assets are recognised as expense on a straight-line basis over the
lease term.
Group as a lessor
Leases in which the Group does not transfer substantially all the risks and rewards incidental
to ownership of an asset are classified as operating leases. Rental income arising on such
leases is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred
in negotiating and arranging an operating lease are added to the carrying amount of the leased
asset and recognised over the lease term on the same basis as rental income. Contingent rents
are recognised as revenue in the period in which they are earned.
k) Employee benefits
The Group operates following post-employment schemes, including both defined benefit and
defined contribution plans.
A) Post-employment benefits
i) Defined contribution plans:
A defined contribution plan is a plan under which the Group pays fixed contributions
into a separate entity. The Group has no legal or constructive obligations to pay further
contributions if the fund does not hold sufficient assets to pay all employees the
benefits relating to employee service in the current and prior periods. The Group has
defined contribution plans for post employment benefits in the form of superannuation
fund for management employees and provident fund for non management employees
which is administered by Life Insurance Corporation of India / Regional Provident
Fund Commissioner. In case of superannuation fund for management employees and
provident fund for non management employees, the Group has no further obligation
beyond making the contributions. The contributions are accounted for as employee
benefit expense when they are due. Prepaid contribution is recognised as an asset to
the extent cash refund or reduction in future contribution is available.
ii) Defined benefit plans:
Funded Plan: The Group has defined benefit plans for post-employment benefits in
the form of gratuity for all employees, pension for non management employees and
provident fund for management employees which are administered through Group
managed trust / Life Insurance Corporation of India.

Unfunded Plan: The Group has unfunded defined benefit plans in the form of post
retirement medical benefits (PRMB) and Ex-gratia benefits as per the policy of the
Group.
Liability for above defined benefit plans is provided on the basis of valuation, as at the
Balance Sheet date, carried out by an independent actuary. The actuarial method used
for measuring the liability is Projected Unit Credit method. In case of provident fund
for management employees, the Group has an obligation to make good the shortfall, if
any, between the return from the investments of the trust and the notified interest rate.
The Group’s contributions and such shortfall are charged to the Statement of Profit
and Loss as and when incurred.
Net interest is calculated by applying the discount rate to the net defined benefit
liability or asset. The Group recognises the following changes in the net defined benefit
obligation as an expense in the consolidated Statement of Profit and Loss:
- Service costs comprising current Service costs, past-Service costs, gains and
losses on curtailments and non-routine settlements; and
- Net interest expense or income
Re-measurements, comprising of actuarial gains and losses, the effect of the asset
ceiling (excluding amounts included in net interest on the net defined benefit liability)
and the return on plan assets (excluding amounts included in net interest on the net
defined benefit liability), are recognised immediately in the Balance Sheet with a
corresponding debit or credit to retained earnings through OCI in the period in which
they occur. Re-measurements are not reclassified to profit or loss in subsequent
periods.
B) Other employee benefit (unfunded):
Liability for compensated absences is provided on the basis of valuation, as at the Balance
Sheet date, carried out by an independent actuary. The Actuarial valuation method used
for measuring the liability is Projected Unit Credit method. Under this method, projected
accrued benefit is calculated at the beginning of the year and again at the end of the year
for each benefit that will accrue for active members of the plan. The “projected accrued
benefit “ is based on the plan’s accrual formula and upon service as of the beginning or end
of the year, but using a member’s final compensation, projected to the age at which the
employee is assumed to leave active service. The plan liability is the actuarial present value
of the “ projected accrued benefits “ as of the beginning of the year for active members.
Termination benefits are recognized as an expense as and when incurred.
The present value of defined benefit obligation denominated in INR (`) is determined by
discounting the estimated future cash flows by reference to the market yield at the end of
the reporting period on the government bonds that have terms approximately equal to the
terms of the related obligation.

l) Research and development costs
Research costs are expensed as incurred. Development expenditures on an individual project

are recognised as an intangible asset when the Company can demonstrate:
- The technical feasibility of completing the intangible asset so that the asset will be available
for use or sale
- Its intention to complete and its ability and intention to use or sell the asset
- How the asset will generate future economic benefits
- The availability of resources to complete the asset
- The ability to measure reliably the expenditure during development
Following initial recognition of the development expenditure as an asset, the asset is carried
at cost less any accumulated amortisation and accumulated impairment losses. Amortisation
of the asset begins when development is complete and the asset is available for use. It is
amortised over the period of expected future benefit. Amortisation expense is recognised in the
Statement of Profit and Loss unless such expenditure forms part of carrying value of another
asset.
During the period of development, the asset is tested for impairment annually.
m) Income tax
The tax expense for the year comprises current and deferred tax. Tax is recognised in the
Statement of Profit and Loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, as the case may be.
Current tax is measured at the amount expected to be paid to the tax authorities in accordance
with the taxation laws prevailing and applicable for the relevant assessment year. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. It establishes provisions where appropriate on the
basis of amounts expected to be paid to the tax authorities.
Deferred income taxes are recognised for the future tax consequences attributable to temporary
differences between the financial statement carrying amounts of existing assets and liabilities
and their tax bases in the consolidated financial statements. The effect on deferred tax assets
and liabilities of a change in the tax rates is recognised using the tax rates and tax laws that
have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are
recognised only to the extent that it is probable that future taxable profit will be available against
which the temporary differences can be utilized. Deferred tax assets and deferred tax liabilities
are offset, if a legally enforceable right exists to set-off current tax assets against current tax
liabilities and the deferred tax assets and deferred tax liabilities relate to the same taxable entity
and the same taxation authority.

n) Provisions and contingent liabilities
A provision is recognised when there is a present legal or constructive obligation as a result of

past event; it is probable that an outflow of resources will be required to settle the obligation, and
in respect of which a reliable estimate can be made. These are reviewed at each balance sheet
date and adjusted to reflect the current best estimates. A disclosure for a contingent liability
is made where there is a possible obligation arising out of past event, the existence of which
will be confirmed only by the occurrence or non occurrence of one or more uncertain future
events not wholly within the control of the Group or a present obligation arising out of past event
where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.
If the effect of the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is
used, the increase in the provision due to the passage of time is recognised as a finance cost.
o) Impairment of non financial assets
The Group tests non financial assets for impairment at the close of the accounting period if and
only if there are indications that suggest a possible reduction in the recoverable value of an
asset. If the recoverable value of an asset, i.e. the net realizable value or the economic value in
use of a cash generating unit, is lower than the carrying amount of the asset, the difference is
provided for as impairment. However, if subsequently the position reverses and the recoverable
amount becomes higher than the then carrying value the provision to the extent of the then
difference is reversed, but not higher than the amount provided for.
p) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-
term deposits with an original maturity of three months or less, that are readily convertible to a
known amount of cash and subject to an insignificant risk of changes in value.
q) Government grants
Government grants are recognised where there is reasonable assurance that the grant will be
received and all attached conditions will be complied with. When the grant relates to an expense
item, it is recognised as income on a systematic basis over the periods that the costs, which it
is intended to compensate, are expensed.
Where the grant relates to an asset, it is either recorded as deferred income and is recognised
as income on a systematic and rational basis over the useful life of the asset, or adjusted
against the cost of the asset.
When the Group receives non-monetary grants, the asset and the grant are recorded at fair
value and released to profit or loss over the expected useful life of the asset, based on the
pattern of consumption of the benefits of the underlying asset by equal annual instalments.
When loans or similar assistance are provided by governments or related institutions with an
interest rate below the current applicable market rate, the effect of this favourable interest is

regarded as a government grant. The loan or assistance is initially recognized and measured at
fair value and the government grant is measured as the difference between the initial carrying
value of the loan and the proceeds received. The loan is subsequently measured as per the
accounting policy applicable to financial liabilities.
r) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial assets
All financial assets are recognized initially at fair value plus, in the case of financial assets
not recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. Trade receivables that do not contain a significant financing
component are measured at transaction price. For all subsequent measurements financial
assets are classified in following categories:
A) Debt instruments
i) Debt instruments at amortised cost: Debt instrument is measured at amortised cost if

the asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and contractual terms of the asset give rise on specified dates
to cash flow that are solely payments of principal and interest (SPPI) on the principal
amount outstanding.
This category is most relevant to the Group. After initial measurement, such assets
are subsequently measured at amortised cost using the effective interest rate (EIR).
Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees for cost that are an integral part of the EIR. EIR amortisation is
included in other income in the Statement of Profit and Loss. This category generally
applies to loans and trade and other receivables.
ii) Debt instruments fair value through OCI (FVTOCI): Debt instrument is classified
as FVTOCI if the financial asset is held within a business model whose objective is
achieved by both collecting contractual cash flows and selling financial assets 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.
When the financial asset is derecognised, the cumulative gain or loss previously
recognised in OCI is reclassified from equity to profit or loss and recognised in other
gains/(losses).
iii) Debt instruments at fair value through profit and loss (FVTPL): Debt instruments not
classified as amortised cost or FVTOCI are classified as FVTPL. The Group has not
classified any debt under this category.

B) Equity instruments
Equity instruments held for trading are classified as FVTPL. For all other equity instruments,
the Group may make an irrevocable election to present in OCI the subsequent changes
in fair value. The Group makes such election on an instrument by instrument basis. If the
Group decides to classify an equity instrument as FVTOCI, then all fair value changes on
the instrument, excluding dividends are recognized in OCI. There is no recycling of the
amount from OCI to Statement of Profit and Loss. However, the Group may transfer the
cumulative gain or loss within equity.
The Group has elected to present all equity instruments, other than those in joint ventures
and associate, through FVTPL and all subsequent changes are recognized in Statement of
Profit and Loss.
C) Derecognition
A financial asset (or wherever applicable, a part of the financial asset or part of a Group of
similar financial assets) is primarily derecognized when the rights to receive cash flow from
the assets have expired or the Group has transferred its rights to receive cash flows from
the asset or has assumed an obligation to pay the received cash flow in full to a third party
under a pass through arrangement and either a) the Group has transferred substantially all
risks and rewards of the asset or b) has transferred control of the asset.
D) Impairment of financial assets
In accordance with Ind AS 109, the Group applies expected credit loss (ECL) model for
measurement and recognition of impairment loss and credit risk exposure on the financial
assets that are debt instruments measured at amortised costs e.g. loans, deposits, trade
receivables, lease receivable and bank balances.
The Group follows simplified approach for recognition of impairment loss allowance on
trade receivables and lease receivables. The application of simplified approach does not
require the Group to track changes in credit risk. Rather it recognizes impairment loss
allowance based on lifetime ECL’s at each reporting date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Group
determines that whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12 month ECL is used to provide for
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If
in subsequent period the credit risk reduces since initial recognition, then the entity reverts
to recognizing impairment loss allowance based on 12 month ECL.
As a practical expedient, the Group uses a provision matrix, based on the age of the
receivables classified into various age buckets, to determine impairment loss allowance
on portfolio of its trade receivables. The matrix is based on its historically observed default
rates over the expected life of the trade receivables and is adjusted for forward looking
estimates. At every reporting date, the historical observed default rates are updated and
changes in the forward looking estimates are analysed. The Group has presumed that
default doesn’t occur later than when a financial asset is 90 days past due.
Impairment loss allowance including ECL or reversal recognized during the period is
recognized as income/ expense in Statement of Profit and Loss . This amount is reflected
under the head ‘other expenses’ in the Statement of Profit and Loss. The impairment loss
is presented as an allowance in the balance sheet as a reduction from the net carrying
amount of the trade receivable, loan, deposits and lease receivable respectively.
All financial liabilities are initially recognised at fair value. The Group’s financial liabilities
include trade and other payables, other financial liabilities, loans and borrowings and
derivative financial instruments.
Subsequent measurement of financial liabilities depends on their classification as FVTPL

or at amortised cost.
All changes in fair value of financial liabilities classified as FVTPL is recognized in the
Statement of Profit and Loss. Amortised cost category is applicable to loans and borrowings,
trade and other payables. After initial recognition the financial liabilities are measured at
amortised cost using EIR method. Gains and losses are recognized in Statement of Profit
and Loss when the liabilities are derecognized as well as through EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition
and fees or cost that are integral part on EIR. The EIR amortisation is included as finance
cost in the Statement of Profit and Loss.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged
or cancelled or expires. When an existing financial liability is replaced by another from
the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the de recognition of
the original liability and the recognition of the new liability. The difference in the respective
carrying amounts is recognized in Statement of Profit or Loss.
Derivatives
The Group uses derivative financial instruments such as forward currency contracts to
hedge its foreign currency risk. Such derivative financial instruments are initially recognized
at fair value on the date on which a derivative contract is entered and are subsequently
re measured at fair value. Derivatives are carried as financial assets when the fair value
is positive and as financial liabilities when the fair value is negative. Any gains or losses
arising from changes in the fair value of derivatives are taken directly to Statement of Profit
and Loss.
Embedded derivatives: An embedded derivative is a component of a hybrid (combined)

instrument that also includes a non-derivative host contract – with the effect that some of
the cash flows of the combined instrument vary in a way similar to a stand-alone derivative.
An embedded derivative causes some or all of the cash flows that otherwise would be
required by the contract to be modified according to a specified interest rate, financial

instrument price, commodity price, foreign exchange rate, index of prices or rates, credit
rating or credit index, or other variable, provided in the case of a non-financial variable that
the variable is not specific to a party to the contract. Reassessment only occurs if there
is either a change in the terms of the contract that significantly modifies the cash flows
that would otherwise be required or a reclassification of a financial asset out of the FVTPL
category.
If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109,
the Group does not separate embedded derivatives. Rather, it applies the classification
requirements contained in Ind AS 109 to the entire hybrid contract. Derivatives embedded
in all other host contracts are accounted for as separate derivatives and recorded at fair
value if their economic characteristics and risks are not closely related to those of the host
contracts and the host contracts are not held for trading or designated at fair value though
profit or loss. These embedded derivatives are measured at fair value with changes in fair
value recognised in Statement of Profit and Loss, unless designated as effective hedging
instruments.
Reclassification of financial instruments
After initial recognition, no reclassification is made for financial assets which are equity
instruments and financial liabilities. For financial assets, which are debt instruments, a
reclassification is made only if there is a change in the business model for managing
those assets. Changes to the business model are expected to be infrequent. If the Group
reclassifies the financial assets, it applies the reclassification prospectively from the
reclassification date which is the first day of the immediately next reporting period following
the change in the business model.
Offsetting financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognized amounts and
there is an intention to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.
s) Dividend distribution
The Group recognises a liability to pay dividend to equity holders of the parent when the
distribution is authorised and the distribution is no longer at the discretion of the Group.
1B Other accounting policies
a) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision-maker. The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating segments, has been identified
as the Board of Directors that makes strategic decisions.

b) Earning per Share (EPS)
Basic earnings per share is calculated by dividing the net profit or loss attributable to equity
holder of the parent company (after deducting preference dividends and attributable taxes)
by the weighted average number of equity shares outstanding during the period. Partly paid
equity shares are treated as a fraction of an equity share to the extent that they are entitled
to participate in dividends relative to a fully paid equity share during the reporting period. The
weighted average number of equity shares outstanding during the period is adjusted for events
such as bonus issue, bonus element in a rights issue, share split, and reverse share split
(consolidation of shares) that have changed the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders of the parent company and the weighted average number of
shares outstanding during the period are adjusted for the effects of all dilutive potential equity
shares.

297
Notes to consolidated financial statements for the year ended March 31, 2024
2.1 Property, plant and equipment (PPE) ` Crore

Adjustment Deductions/ For the Adjustment Deductions/
2023 2024 2023 2024 2024
Tangible Assets:
Freehold land @ 29.72 - (0.03) - 29.69 - - - - - 29.69
Leasehold improvements 11.57 0.62 0.03 0.01 12.21 1.04 0.23 - 0.01 1.26 10.95
Roads 31.72 0.30 - - 32.02 23.03 0.81 - - 23.84 8.18
Buildings # 788.27 24.11 (4.07) 0.49 807.82 167.16 18.63 (3.36) 0.37 182.06 625.76
Plant and machinery # 1,142.99 98.41 (8.63) 47.78 1,184.99 696.72 68.49 (7.82) 43.42 713.97 471.02
Vehicles 5.02 0.81 (0.42) 0.28 5.13 3.88 0.40 (0.38) 0.28 3.62 1.51
2,059.57 124.86 (12.64) 49.24 2,122.55 926.80 92.72 (11.06) 44.79 963.67 1,158.89

As at Additions Adjustment Deductions / As at As at For the Adjustment Deductions / As at As at
April 1, ** Write -off March 31, April 1, year ** Write -off March 31, March 31,
2023 2024 2023 2024 2024
Software 11.73 6.89 - - 18.62 10.10 0.72 - - 10.82 7.80

Technical knowhow 20.60 101.00 - - 121.60 20.60 8.40 - - 29.00 92.60
80.58 107.89 - - 188.47 42.78 16.01 - - 58.79 129.68

298
Additions Capitalisation
As at As at
Total Total
Particulars April Intangible Investment Intangible Investment March 31,
PPE Additions PPE Capitalisation
1, 2023 assets properties assets properties 2024
Capital work-in-progress 41.29 178.33 - - 178.33 123.93 - 1.04 124.97 94.65

Intangible assets under - - 110.05 - 110.05 - 107.89 - 107.89 2.16
development
41.29 178.33 110.05 - 288.38 123.93 107.89 1.04 232.86 96.81
schedule *

Amount in CWIP for a period of
Projects in progress More than 3 Total
Less than 1 year 1-2 years 2-3 years
years
Intangible assets under development 2.16 - - - 2.16
95.26 0.63 0.02 0.90 96.81
*Capital work-in-progress includes projects amounting to ` 0.90 Crore whose completion is overdue on account of procedural delays and will be
completed in the next 1 year.

NOTES:
** includes reclassification from / to assets held for sale


299

` Crore
Gross block Depreciation and Amortisation Net block
Particulars Adjustment Deductions / For the Adjustment Deductions /
April 1, Additions March 31, April 1, March March 31,
2022 2023 2022 31, 2023 2023
Tangible Assets:
Freehold land @ 36.12 0.04 (6.44) - 29.72 - - - - - 29.72
Leasehold improvements 7.21 5.05 - 0.69 11.57 1.54 0.18 - 0.68 1.04 10.53
Roads 30.60 1.12 - - 31.72 21.48 1.55 - - 23.03 8.69
Buildings # 848.65 27.68 (87.51) 0.55 788.27 160.99 17.74 (11.14) 0.43 167.16 621.11
Plant and machinery # 1,064.44 113.96 27.34 62.75 1,142.99 669.83 59.85 25.51 58.47 696.72 446.27
Vehicles 5.11 - 0.12 0.21 5.02 3.54 0.42 0.11 0.19 3.88 1.14
2,043.73 148.05 (65.81) 66.40 2,059.57 889.37 84.20 14.80 61.57 926.80 1,132.77
Gross block Depreciation and Amortisation Net block
Particulars Adjustment Deductions / For the Adjustment Deductions /
2022 2023 2022 2023 2023
Software 8.30 3.43 0.08 0.08 11.73 7.68 2.42 0.06 0.06 10.10 1.63
Technical knowhow 20.60 - - - 20.60 20.60 - - - 20.60 -
77.15 3.43 0.08 0.08 80.58 35.17 7.61 0.06 0.06 42.78 37.80

300
Additions Capitalisation
As at As at
Total Total
Particulars April 1, Intangible Investment Investment March 31,
PPE Additions PPE Intangible Capitalisation
2022 assets properties properties 2023
assets
Capital work-in-progress 60.37 128.16 - 1.82 129.98 147.70 - 1.36 149.06 41.29
Intangible assets under 0.41 - 3.02 - 3.02 - 3.43 - 3.43 -
development
60.78 128.16 3.02 1.82 133.00 147.70 3.43 1.36 152.49 41.29
schedule *
Amount in CWIP for a period of

Projects in progress Less than 1 More than 3 Total
1-2 years 2-3 years
year years
Intangible assets under development - - - - -
33.59 5.46 1.42 0.82 41.29
*Capital work-in-progress includes projects amounting to ` 2.77 Crore whose completion is overdue on account of procedural delays and will be
completed in the next 1 year.
NOTES:
** includes reclassification from assets held for sale and to investment properties (Refer note 3)

3 Investment properties
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Gross
Opening balance 1,260.19 1,165.77
Additions 1.04 1.36
Deductions - 0.93
Closing balance 1,261.23 1,260.19
Accumulated Depreciation
Opening balance 241.15 186.74
Depreciation 42.77 43.54
Deductions - 0.28
Closing balance 283.92 241.15
Net 977.31 1,019.04
Information regarding income and expenditure of investment properties
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Rental income derived from investment properties 142.71 127.67
Direct operating expenses (including repairs and 11.78 10.57
maintenance) generating rental income
depreciation and indirect expenses
Less: Depreciation 42.77 43.54
indirect expenses
The investment properties consist of office premises and plants. As at March 31, 2024 the fair
value of the properties is ` 1,416.71 Crore (As at March 31, 2023: ` 1,453.73 Crore). These
fair values are based on valuations performed by a registered valuer, as defined under rule 2 of
Companies (Registered Valuers and Valuation) Rules, 2017. A valuation model as recommended
by International Valuation Standards Committee has been applied. The Company considers factors
like management intention, terms of rental agreements, area leased out, life of the assets etc. to
determine classification of assets as investment properties. The rental income considered in the
table above is from the date of rental agreement or date of re-classification from property, plant and
equipment as applicable.
The Group has no restrictions on the realisability of its investment properties and no contractual
obligations to purchase, construct or develop investment properties or for repairs, maintenance
and enhancements. Fair value disclosures for investment properties are provided in Note 47.

Description of valuation techniques used and key inputs to valuation on investment

properties
Valuation technique Significant Range Range

unobservable inputs (weighted average) (weighted average)
March 31, 2024 March 31, 2023
Income approach Estimated rental ` 31.50 - ` 131.46 ` 31.50 - ` 131.46
(Discounted Cash value per sq ft per
Flow (DCF) method) month
Rent growth p.a. 3% - 15% every 3 3% - 15% every 3
years or based on years or based on
market assessment market assessment
Discount rate 12.05% 10.92% to 11.92%
As per the DCF method, fair value is defined as the present value of future cash flows that can be
withdrawn from the Group. To estimate the cash flows available, projected cash flows of the Group
are considered for certain future years (explicit forecast period). Based on the projected cash
flows, the free cash flows from subject properties are estimated. The Group has discounted the
net cash flows to arrive at the present value of free cash flows. After the explicit period, the subject
properties will continue to generate cash. In DCF method, therefore, perpetuity value/capitalized
value/terminal value is also considered to arrive at the value of the subject properties.
4 Non-current investments
As at As at
March 31, March 31, March 31, March 31,
2024 2023 2024 2023
Units Units ` Crore ` Crore
Investments in joint venture and
associate
Unquoted equity instruments
95,00,000 95,00,000 Investment in joint venture 152.02 140.99
(fully paid up)(Refer note 40)
Valvoline Cummins Private Limited
(% Holding: 50%) (Incorporated in India)
7,79,997 7,79,997 Investment in associate (fully paid up) 311.29 268.53
(Refer note 41)
Cummins Generator Technologies India
Private Limited (% Holding : 48.54%)
Total 463.31 409.52

5 Other non-current financial assets (carried at amortised cost)

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Employee benefit plan assets (Refer note 42) - 0.19
Total 13.92 12.24
6 Income tax assets (net)

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Advance income tax (net of provision for taxation) 57.85 35.29
Total 57.85 35.29
7 Other non-current assets

Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Capital advances 49.60 50.75
Others * 0.89 1.36
Total 93.98 96.02
* Others include prepaid expenses
8 Inventories
As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Raw materials and components 518.55 454.31
(includes goods in transit)
Work-in-progress (includes goods lying with third parties) 197.34 206.64
(includes goods in transit and lying with third parties) *
Traded goods (includes goods in transit) * 22.95 25.77
Stores and spares 4.58 5.64
Loose tools 9.49 8.31
Total 949.65 903.66
* During the year ended March 31, 2024 ` 2.42 crore (March 31, 2023 : ` 0.67 crore) was
recognised as an expense / (reversal) for inventories carried at net realisable value.

9 Current investments
As at As at
2024 2023 2024 2023
Current investments
Unquoted mutual funds valued at fair
value through profit and loss
10,28,653 - Aditya Birla Sun Life Liquid Fund - Growth- 40.08 -
Direct Plan
39,388 - Axis Liquid Fund - Regular Growth 10.49 -
1,12,015 - Axis Liquid Fund - Direct Growth 30.06 -
31,737 - HDFC Liquid Fund - Direct Plan - Growth 15.06 -
Option
- 1,49,467 HDFC Liquid Fund - Regular Plan - Growth - 65.53
43,501 43,501 HDFC Money Market Fund - Direct Plan - 23.06 21.41
Growth Option
1,45,726 - HSBC Liquid Fund - Direct Growth 35.06 -
6,65,554 6,65,554 ICICI Prudential Money Market Fund - 23.00 21.37
Growth
8,41,074 25,76,902 ICICI Prudential Liquid Fund - Direct Plan - 30.06 85.86
Growth
61,611 2,22,188 Kotak Liquid Fund Direct Plan Growth 30.06 101.06
77,663 - Kotak Money Market Fund - Growth 31.77 -
(Regular Plan)
34,135 2,38,720 Nippon India Liquid Fund - Direct Plan 20.17 131.46
Growth Plan Growth Option
70,084 - Nippon India Money Market Fund - Growth 26.49 -
Plan Growth Option
53,017 3,14,680 SBI Liquid Fund Direct Growth 20.04 110.87
78,59,615 - SBI Savings Fund - Direct Plan - Growth 31.79 -
89,370 - Tata Liquid Fund Direct Plan - Growth 34.05 -
- 4,12,977 UTI Liquid Cash Plan - Direct Plan Growth - 152.37
1,01,238 - UTI Liquid Fund - Direct Plan Growth 40.07 -
Value of unquoted mutual funds 441.31 689.93

As at As at
2024 2023 2024 2023
Unquoted Certificate of Deposit valued

at fair value through OCI
7,000 3,000 7.50% HDFC Bank Limited 336.18 144.15
- 3,000 7.60% ICICI Bank Limited - 142.58
4,000 - 7.55% HDFC Bank Limited 192.10 -
- 1,500 7.58% HDFC Bank Limited - 71.26
2,000 - 7.84% HDFC Bank Limited 95.06 -
Value of unquoted certificate of deposit 623.34 357.99
Aggregate value of unquoted 1,064.65 1,047.92

investments
Other investments
Quoted Bonds/NCD valued at fair value
through OCI
3,00,000 - Non Convertible Debentures - 7.4500% 31.33 -
PFC
200 - 5.27% NABARD 23/07/2024 20.57 -
2,000 - REC/Bonds/227-A Series 20.65 -
2,000 - 7.79% SIDBI 2027-Series VI of FY 2023-24 20.45 -
2,000 - REC/Bonds/ 229 A Series 20.54 -
Value of quoted bonds / NCD 113.54 -
Aggregate value of quoted investments 113.54 -
Total 1,178.19 1,047.92

10 Trade receivables (carried at amortised cost)

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Trade receivables 1,763.16 1,213.77
Receivables from related parties (Refer note 43) 322.19 383.35
Total 2,085.35 1,597.12
Break up for security details

Secured, considered good 291.70 378.19
Unsecured, considered good 1,793.65 1,218.93
Trade receivable which have significant increase in credit risk - -
Trade receivable - credit impaired 7.45 7.79
2,092.80 1,604.91
Impairment loss allowance

(allowance for bad and doubtful debts)
Unsecured, considered good - -
Provision for impairment - -
Trade receivable - credit impaired (7.45) (7.79)
(7.45) (7.79)
Total 2,085.35 1,597.12
No trade receivable or advances are due from directors or other officers of the Company either
severally or jointly with any other person. Trade or other receivable are due from firms or private
companies in which any director is a partner, a director or a member amounts to ` 13.16 crore
(March 31, 2023 : ` 16.49 crore). Trade receivables are non interest bearing and are generally on
terms of 30 to 90 days.

Trade receivables aging schedule

` Crore
Outstanding for following periods from due date of
payment
Particulars As at Unbilled Less 6 More Total
1-2 2-3
Not due than 6 months than 3
years years
months - 1 year years
March 31, 26.50 1,970.09 68.16 7.63 4.13 3.55 5.29 2,085.35
(i) Undisputed
2024
trade receivables -
March 31, 21.88 1,463.75 84.76 12.08 7.78 3.58 3.29 1,597.12
considered good
2023
(ii) Undisputed March 31, - - - - - - - -
trade receivables 2024
- which have March 31, - - - - - - - -
significant increase 2023
in credit risk
March 31, - 0.13 - 0.18 0.92 2.64 3.50 7.37
(iii) Undisputed
2024
trade receivables -
March 31, - 0.09 0.52 0.09 2.60 0.55 3.85 7.70
credit impaired
2023
March 31, - - - - - - - -
(iv) Disputed trade
2024
receivables -
March 31, - - - - - - - -
considered good
2023
(v) Disputed trade March 31, - - - - - - - -
receivables - which 2024
have significant March 31, - - - - - - - -
increase in credit 2023
risk
March 31, - - - - - - 0.08 0.08
(vi) Disputed trade
2024
receivables - credit
March 31, - - - - - 0.04 0.05 0.09
impaired
2023
March 31, 26.50 1,970.22 68.16 7.81 5.05 6.19 8.87 2,092.80
2024
Total
March 31, 21.88 1,463.84 85.28 12.17 10.38 4.17 7.19 1,604.91
2023
11 Cash and cash equivalents (carried at amortised cost)

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Cash on hand - 0.01
Bank balances
Cheques in hand - 0.22
Total 299.89 396.69

12 Other bank balances (carried at amortised cost)

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Unpaid dividend account (restricted) 13.26 12.79
Deposits with Banks (original maturity more than 3 months 1,199.63 976.75
but less than 1 year)
Total 1,212.89 989.54
13 Other current financial assets

(carried at amortised cost, other than foreign exchange forward contracts)
As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Deposits with banks (with residual maturity less than 12 - 4.26
months)
Contract assets ^ 2.85 0.86
Others * 15.73 17.77
Total 38.73 42.85
^ Contract assets mainly include unbilled revenue accrued against service contracts. The
balances vary depending on the volume of services remaining unbilled at the end of the
year.
* Others primarily include warranty receivable, royalty receivable from dealers, cross charge etc.
Other current financial assets receivable from firms or private companies in which any director
is a partner, a director or a member amounts to ` 2.65 crore (March 31, 2023: ` 2.95 crore).
Refer note 43 for related party transactions.
14 Other current assets

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Others * 89.90 62.37
Total 174.81 119.55
* Others include prepaid expenses, government grants receivable, supplier advances, service
contracts in progress, etc.

15 Assets classified as held for sale

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Assets held for sale (at lower of cost or fair value less cost to 2.69 1.14
sell)
Total 2.69 1.14
16 Equity share capital

Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Authorised :
400,000,000 equity shares of ` 2 each 80.00 80.00
Issued, subscribed and fully paid-up shares :

277,200,000 equity shares of ` 2 each 55.44 55.44
Total 55.44 55.44
a) Reconciliation of number of shares

Equity shares: As at As at
March 31, 2024 March 31, 2023
Number of ` Crore Number of ` Crore
Shares Shares
Balance as at the beginning 27,72,00,000 55.44 27,72,00,000 55.44
and end of the year
b) Rights, preferences and restrictions attached to shares

The Company has only one class of equity shares having a par value of ` 2 per share.
Each shareholder is entitled to one vote per share. The dividend proposed by the Board
of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting, except in case of interim dividend. In the event of liquidation of the Company, the
equity shareholders are eligible to receive remaining assets of the Company, after distribution
of all preferential amounts, in the proportion to their shareholding.

c) Details of shareholding of promoters

Nos. of % of % of change Nos. of % of % of
Shares total during the Shares total change
number year number during
of of the year
shares shares
Cummins 14,13,72,000 51.00% - 14,13,72,000 51.00% -
Inc.
USA -
Holding
Company
Kirloskar - - - 683 0.00%* -
Industries
Limited **
* % is below the rounding off norm

** Classified out of “Promoter” category as approved by the stock exchanges.
d) Details of shareholders holding more than 5% of the aggregate shares in the

Company
As at As at
March 31, 2024 March 31, 2023
Nos. % Nos. %
Equity shares of ` 2 each
fully paid Cummins Inc. USA - 14,13,72,000 51.00% 14,13,72,000 51.00%
Holding Company
17 Other equity
As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Retained earnings 5,383.85 4,540.26

5,383.85 4,540.26
Other reserves
Capital redemption reserve 0.70 0.70
General reserve 1,142.02 1,142.02
Equity contribution from Holding Company 30.31 19.82
Total 1,173.03 1,162.54

a) Retained earnings
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Add: Profit for the year 1,720.58 1,228.15
Add: Other comprehensive income
subsequent periods
Remeasurement (loss)/ gain on defined (17.21) 3.69
benefit plans, net of tax

subsequent periods
Changes in the fair value of financial (0.46) (0.10)
instruments, net of tax
6,243.17 5,163.96
Less:
Interim dividend paid for the financial years ended 498.96 332.64
March 31, 2024 (` 18 per share) and March 31,
2023 (` 12 per share)
Final dividend paid for the financial years ended 360.36 291.06
March 31, 2023 (` 13 per share) and March 31,
2022 (` 10.50 per share)
859.32 623.70
Dividends not recognised at the end of the reporting period

In addition to the above dividends, since year end the directors have recommended payment
of final dividend of ` 554.40 crore for the year ended March 31, 2024 (March 31, 2023: `
360.36 crore) which is ` 20 per fully paid up share (March 31, 2023: ` 13 per fully paid up
share). This proposed dividend is subject to approval of shareholders in the ensuing Annual
General Meeting.
b) Capital redemption reserve

Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
c) General reserve
General reserve denotes the amounts transferred from retained earnings on declaration of
dividends as per the requirements of erstwhile Companies Act, 1956.
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
d) Equity contribution from the holding company

Certain employees are directly paid by the holding company through stock options
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Add: Movement during the year 10.49 5.23
18 Other non-current financial liabilities (carried at amortised cost)

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Deposits 27.46 27.37
Capital creditors 18.44 -
Others * 11.64 13.18
Total 61.29 40.80
* Others primarily include liability on account of Voluntary Retirement Scheme (Refer note 51)

19 Provisions
As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Provision for post retirement benefit and compensated 147.56 109.61
absences (Refer note 42)
Warranties (Refer note 39 (i)) 78.86 75.75
Statutory matters (Refer note 39 (ii)) 17.66 17.45
New Engine Performance Inspection (NEPI) 40.58 39.59
(Refer note 39 (iii))
284.66 242.40
Current provisions 163.68 137.32
Non - current provisions 120.98 105.08
Total 284.66 242.40
20 Income taxes
a) Deferred tax liabilities (net)
Balance sheet Statement of profit and loss
As at Year ended
` Crore ` Crore ` Crore ` Crore
Deferred tax assets
Provision for employee 27.51 25.57 1.94 (1.21)
benefits recognised in the
Statement of Profit and
Loss
Other timing differences 21.90 16.69 5.21 1.24
Total deferred tax assets 49.41 42.25 7.15 0.03
Deferred tax liabilities

Depreciation 138.42 135.42 3.00 1.94
Other timing differences (1.97) 4.98 (6.95) 4.04
Others including OCI 0.14 2.68 - -
(1.83) 7.66
Total deferred tax 136.59 143.08 (3.95) 5.98
liabilities
Deferred tax (expense) / 11.11 (5.95)
income
Net deferred tax liabilities 87.18 100.83
b) The major components of income tax expenses for the years ended March 31, 2024 and
March 31, 2023 are:
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Profit and Loss section
Current income tax:
Current income tax charge 510.78 355.63
Deferred tax:
Relating to origination and reversal of temporary (11.11) 5.95
differences
Adjustments in respect of current income tax of (15.64) 1.56

previous year
Income tax expenses reported in the Statement 484.03 363.14
of Profit and Loss
OCI section
Tax related to items recognised in OCI during the (5.46) 1.40
year
Net (gain)/loss on remeasurements of defined bene- (5.46) 1.40
fit plans and others
c) Reconciliation of tax expenses and the accounting profit multiplied by India’s domestic tax
rate for March 31, 2024 and March 31, 2023
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Accounting profit before tax 2,204.61 1,591.29
Less: Share of profit of joint ventures and associate 245.16 207.98
after tax
1,959.45 1,383.31
India's statutory income tax rate 25.17% 25.17%
Tax at full rate 493.15 348.15
Adjustments:
Others (deductible, non-deductible items, net) (9.12) 14.99
Total (9.12) 14.99
Income tax expenses reported in the Statement of 484.03 363.14
Profit and Loss for the current year
d) Deferred tax
Reconciliation of deferred tax liabilities (net)
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Opening balances as at April 1 100.83 93.50
Tax expense / (income) during the year recognised (11.11) 5.95
in Statement of Profit and Loss
Tax expense / (income) during the year recognised 0.14 1.40
in OCI
Adjustments in respect of previous years (2.68) -
21 Other non-current liabilities

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Contract liabilities 11.96 3.27
Total 11.96 3.27
22 Borrowings
As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Working capital loan from bank * 100.00 350.04
Total 100.00 350.04
* The loan is unsecured and repayable within one year. Interest is payable @ 6.75% - 7.31%
(T-Bill / MIBOR) adjusted by a reasonable spread p.a. The Group has availed the benefit
of interest equalisation scheme of the Reserve Bank of India. Interest on borrowings under
interest equalisation scheme is accounted for on net basis.
The changes in liabilities arising from financing activities is on account of cash flow changes
only and there are no non-cash changes.

23 Trade payables
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Trade payables to micro and small enterprises 72.14 70.03
(Refer note 34)
Trade payables other than related parties, micro and small 564.63 457.69
enterprises
Trade payables to related parties (Refer note 43) 772.00 621.78
1,336.63 1,079.47
Total 1,408.77 1,149.50
Trade payables are non interest bearing and are normally settled in 30 to 90 days terms.
Trade payables aging schedule

` Crore
Unbilled Not due Less than 1-2 2-3 More than 3

1 year years years years
March 31,
- 70.99 1.15 - - - 72.14
(i) Undisputed - 2024
MSME March 31,
- 68.20 1.83 - - - 70.03
2023
March 31,
157.36 1,005.90 160.66 9.88 0.19 2.64 1,336.63
(ii) Undisputed - 2024
Others March 31,
114.57 877.83 75.37 1.11 7.62 2.97 1,079.47
2023
March 31,
157.36 1,076.89 161.81 9.88 0.19 2.64 1,408.77
2024
Total
March 31,
114.57 946.03 77.20 1.11 7.62 2.97 1,149.50
2023

24 Other current financial liabilities
As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Unpaid dividend 13.26 12.79
Royalty (Refer note 43) 24.26 16.67
Support services payable (Refer note 43) 4.81 2.65
Capital creditors 52.65 4.37
Others including salaries, wages, bonus payable 48.47 57.65
Total 150.51 102.99
25 Other current liabilities

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Statutory dues and other payables 154.32 73.24
Contract liabilities ^ 72.52 71.28
Total 226.84 144.52
^ Contract liabilities include advances received from customer as well as consideration received
before the Group has transferred goods or services to the customer.
26 Revenue from operations

Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Sale of products 8,457.10 7,275.92
Sale of services 402.89 365.48
8,859.99 7,641.40
Other operating revenue
Scrap sales 7.65 8.82
Export incentives 34.01 24.24
Others * 98.55 97.63
140.21 130.69
Revenue from operations 9,000.20 7,772.09
* Others primarily includes testing income, engineering income, royalty income from dealers, etc.

Disaggregated revenue information

Set out below is the disaggregation of the Group’s revenue from contracts with
customers
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Location
India 7,413.25 5,919.30
Outside India 1,552.94 1,828.55
Total revenue from contracts with customers * 8,966.19 7,747.85
Timing of revenue recognition

Goods transferred at a point in time 8,464.76 7,284.74
Services transferred over time 501.43 463.11
Revenue from contracts with customers * 8,966.19 7,747.85
Set out below is the amount of revenue recognised

from
Amounts included in contract liabilities at the beginning of 38.58 24.12
the year
Performance obligations satisfied in previous years 5.08 0.06
Reconciling the amount of revenue recognised in the

statement of profit and loss with the contracted price
Revenue as per contracted price 9,147.70 7,985.16

Adjustments
Sales return (35.62) (72.47)
Discounts (113.19) (118.26)
Liquidated damages (9.35) (2.28)
Others (23.35) (44.30)
Revenue from contracts with customers * 8,966.19 7,747.85
* Excludes export incentives

27 Other income
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Income from investments:
Interest income from financial assets at amortised cost
- On bonds (non - current/current investments) - 0.05
- 0.05
Gain on sale/redemption of investments
- On current investments designated at fair value through 52.20 43.89
profit and loss
52.20 43.89
Interest on term deposits and others * 120.68 73.71

Rent (Refer note 3 for rent on investment properties) 171.13 151.53
Exchange gain (net) 0.79 7.57
Gain on assets sold, discarded, etc. 1.60 2.49
Miscellaneous income 31.67 28.91
325.87 264.21
Total 378.07 308.15

* includes interest on tax refund amounting to ` Nil (March 31, 2023 : ` 1.59 crore)
28.1 Cost of materials consumed

Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Inventory at the beginning of the year 454.31 416.43
Add: Purchases 4,877.63 4,605.86
Less: Inventory at the end of the year 518.55 454.31
Total 4,813.39 4,567.98

28.2 Change in inventories of finished goods, work-in-progress and traded goods

Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Inventories at the end of the year (Refer note 8)
Subtotal (A) 417.03 435.40
Inventories at the beginning of the year (Refer note 8)
Subtotal (B) 435.40 308.71
(Increase)/ decrease (B-A) 18.37 (126.69)
29 Employee benefits expense

Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Salaries, wages and bonus 687.70 547.38
Contribution to provident and other funds (Refer note 42) 74.96 65.72
Staff welfare expenses 38.71 35.78
Total 801.37 648.88
30 Finance costs
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Interest on borrowings and others 15.23 10.76
Interest cost on lease liabilities (Refer note 37) 2.65 2.28
Total interest expense 17.88 13.04
Unwinding of discount and effect of changes in discount 9.52 3.20
rate on provisions (Refer note 39)
Total 27.40 16.24

31 Other expenses
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Commission on sales 18.46 12.42
Consumption of stores and spare parts 84.60 73.54
Warranty expenses (Refer note 39) 58.54 65.88
Consumption of tools and gauges 8.00 7.47
Repairs to buildings 36.69 32.72
Repairs to machinery 11.19 9.25
Other repairs 2.33 2.57
Power and fuel 27.70 26.76
Rates and taxes 25.15 12.49
Insurance 20.27 16.54
Outside processing charges 38.44 32.02
Donations (including expenditure towards corporate social 20.07 15.57
responsibility activities (Refer note 43 and 45))
Royalties (Refer note 43) 28.26 17.33
Support services (net of credits, if any) (Refer note 43) 66.61 111.26
Computer and other services 97.44 77.41
Payment to auditors (Refer details below) 2.03 2.12
Bad debts
Bad debts written off 0.87 1.33
Provision for bad and doubtful debts 0.53 0.90
Amount withdrawn from provisions (0.87) (1.33)
0.53 0.90
Other expenses (net of expenses recovered and 111.94 136.70
capitalised) (Refer note 43)
Total 658.25 652.95
Payment to auditors:
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
On account of Audit Fees 1.92 2.06
On account of Reimbursement of expenses 0.11 0.05

Total 2.03 2.11

32 Earning per share (EPS)

Earnings per share is calculated by dividing the profit attributable to the equity shareholders by
the weighted average number of equity shares outstanding during the year. The numbers used in
calculating basic and diluted earnings are stated below :
Year ended
March 31, 2024 March 31, 2023
(a) Profit for the year after taxation (` crore) 1,720.58 1,228.15
Weighted average number of shares outstanding
(b) 27,72,00,000 27,72,00,000
during the year
(c) Earnings per share (basic and diluted) (`) 62.07 44.31
(d) Face value per share (`) 2 2
33 Capital and other commitments

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Estimated amount of contracts in capital account 143.65 155.52
remaining to be executed (net of capital advances).
For other commitments also refer note 37
Total 143.65 155.52
34 Trade payables include dues to micro and small enterprises as defined under the
MSMED Act, 2006 as under:
As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Total outstanding dues of micro and small enterprises 72.14 70.03
1 Principal Amount 72.14 70.03
2 Interest accrued - -
Payment made to suppliers (other than interest)
3 3.80 8.20
beyond the appointed day, during the year
Interest paid to suppliers under MSMED Act, 2006
4 - -
(other than section 16)
Interest paid to suppliers under MSMED Act, 2006
5 0.07 0.07
(Section 16)
Interest due and payable to suppliers under MSMED
6 - -
Act, 2006 for the payments already made
Interest accrued and remaining unpaid at the end of
7 - -
the year to suppliers under MSMED Act, 2006
The Group has compiled this information based on intimations received from the suppliers of their
status as Micro or Small Enterprises and / or their registration with the appropriate authority under
the Micro, Small and Medium Enterprises Development Act, 2006.

35 Significant accounting estimates and assumptions
The preparation of the Group’s financial statements requires management to make estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in an outcome that requires a material adjustment to the
carrying amount of assets or liabilities effected in future periods.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date that have a significant risk of causing a material adjustment to the carrying amount
of assets and liabilities within the next financial year, are described below. The Group based its
assumptions and estimation on parameters available when the financial statements were prepared.
Existing circumstances and assumptions about future developments, however, may change due
to market changes or circumstances arising beyond the control of the Group. Such changes are
reflected in the assumptions when they occur.
Defined benefit plans:
The cost of the defined benefit gratuity plan and other post–employment medical benefits and
the present value of the gratuity obligation are determined using actuarial valuations. An actuarial
valuation involves making various assumptions that may differ from actual developments in the
future. These include the determination of the discount rate, future salary increases and mortality
rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at
each reporting date.
The discount rate is the parameter most subject to change. In determining the appropriate discount
rate for plans operated in India, the management considers the interest rates of government bonds.
The mortality rate is based on publicly available mortality tables for India. Mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity
increases are based on expected future inflation rates. Further details about gratuity obligations
are given in note 42.
Fair value measurements of financial instruments:
When the fair values of financial assets and financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in active markets, their fair value is measured
using valuation techniques including the DCF model. The inputs to these models are taken from
observable markets if available, otherwise, a degree of judgement is required in establishing fair
values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.
Changes in assumptions about these factors could affect the reported fair value of the financial
instrument. Refer note 47 for further disclosures.

Warranty, statutory matters and New Engine Performance Inspection (NEPI)
For estimates relating to warranty, statutory matters and NEPI (refer note 39).
36 Contingent liabilities
As at
March 31, 2024 March 31, 2023
` Crore ` Crore
a. Income tax matters* 17.04 12.31
b. Central excise duty/service tax matters* 6.23 3.29
c. Duty drawback matters 26.04 26.04
d. Sales tax matters* 34.61 34.61
Civil liability / secondary civil liability in respect of
e. 1.55 1.29
suits filed against the Group*
f. Goods and service tax matters 2.33 2.07
Total 87.80 79.61
* Excludes interest and penalties if any. The above matters pertain to certain disallowances/
demand raised by respective authorities.
The Group is contesting the demands and the management, including its tax/legal advisors, believe
that its position will likely be upheld in the appeal process.
There are numerous interpretative issues relating to the Supreme Court (SC) judgement on Provident
Fund dated February 28, 2019. The Group has implemented the SC decision prospectively.
The Group has various on-going litigations by/or against the Group with respect to tax and other
legal matters, other than those disclosed above. The Group believes that they have sufficient and
strong arguments on facts as well as on point of law and accordingly no provision / disclosure in
this regard has been considered in the financial statements.
37 Leases
Lease commitments as a lessee
The Group has entered into leases for office premises. These lease arrangements range for a pe-
riod between 12 months and 108 months with lock in period between 36 months and 108 months,
which include both renewable and non-renewable leases.

Following are the changes in the carrying value of right of use assets during the year ended:
` Crore
March 31, 2024 March 31, 2023
Particulars Category of ROU Category of ROU

Total Total
Building Land Building Land
Balance as at the
22.47 13.73 36.20 19.80 13.52 33.32
beginning of the year
Additions 8.44 - 8.44 9.16 0.41 9.57
Adjustment (0.40) - (0.40) - - -
Depreciation (7.52) (0.16) (7.68) (6.49) (0.20) (6.69)
Balance as at the end of
22.99 13.57 36.56 22.47 13.73 36.20
the year
Following are the changes in carrying value of lease liabilities during the year ended:
` Crore
Additions 8.37 9.16
Adjustment (0.42) -
Interest cost accrued during the period 2.65 2.28
Payments (9.67) (8.24)
Current portion 7.13 5.98

Non-current portion 19.85 20.07
The maturity analysis of lease liabilities is disclosed in note 46(c). Lease liability has been discounted
using the lessee’s incremental borrowing rate. There are no variable lease payments.
The following are the amounts recognised in statement of profit and loss for the year ended:
` Crore

Depreciation expense of right-of-use assets 7.68 6.69
Interest expense on lease liabilities 2.65 2.28
Total amount recognised in Statement of Profit and 10.33 8.97
Loss

Operating lease as a lessor

The Group has entered into operating leases on its investment properties consisting of buildings
and other related assets. These leases have terms between 36 and 120 months.
Future minimum lease rentals receivable under non-cancellable operating leases are as follows:
` Crore
As at
March 31, 2024 March 31, 2023
Within one year 64.69 63.89
After one year but not more than five years 73.29 125.71
More than five years - -
Total 137.98 189.60
The Group has not entered into any sub-leases during the year.
38 The total research and development expenses incurred by the Group are as under :
Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
On capital account 6.69 7.42
On revenue account 3.21 19.05
Total 9.90 26.47
39 Disclosure on provisions made, utilised and reversed during the year

i) Provision for warranty
Provision for warranty is on account of warranties given on products sold by the Group. The
amount of provision is based on historical information of the nature, frequency and average cost of
warranty claims and management estimates regarding possible future incidence. The timing and
amount of cash flows that will arise from these matters will be determined at the time of receipt of
claims. Amount expected to be paid in next 12 months is classified as current.
As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Additions / reversal 58.54 65.88

ii) Provision for statutory matters

Provisions for statutory matters are on account of legal matters where the Group anticipates
probable outflow. The amount of provision is based on estimates made by the Group considering
the facts and circumstances of each case. The timing and amount of cash flows that will arise from
these matters will be determined by the relevant authorities only on settlement of these cases.
As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Additions 0.22 0.47
Utilisation 0.01 -
Classified as non-current - -
iii) Provision for New Engine Performance Inspection (NEPI)

Provision for New Engine Performance Inspection (NEPI) is on account of checks to be carried out
by the Group at specified intervals. The amount of provision is based on historical information of
the nature, frequency and average cost of claims and management estimates regarding possible
future incidence. The timing and amount of the cash flows that will arise from these matters will
be determined at the time of receipt of claims. Amount expected to be paid in next 12 months is
classified as current.
As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Additions 8.24 17.14

40 Investment in joint ventures
A The Group has 50% interest in joint venture namely Valvoline Cummins Private Limited (VCPL)
incorporated in India. The Group’s interest is accounted for using the equity method in the
consolidated financial statements.
Summarised financial information of the joint venture, based on their Ind AS financial statements,
and reconciliation with the carrying amount of the investment in consolidated financial statements
are set out below:
Valvoline Cummins Private Limited
Summarised balance sheet

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Non current assets
Property, plant and equipment 70.05 72.42
Capital work-in-progress 0.67 2.82
Intangible assets under development 0.63 2.25
Intangible assets 6.34 5.45
Right-of-use assets 22.27 21.07
Other non-current financial assets 10.97 11.09
Deferred tax assets (net) 1.39 1.21
Other non-current assets 5.16 14.48
117.48 130.79
Current assets
Inventories 228.61 221.05
Financial assets
(i) Investments 41.10 51.66
(ii) Trade receivables 217.34 193.01
(iii) Cash and cash equivalents 52.71 31.11
(iv) Other bank balances 0.10 0.10
(v) Other current financial assets 3.75 6.20
Other current assets 57.18 34.27
600.79 537.40
Non current liabilities
Lease liabilities 15.42 16.03
15.42 16.03
Current liabilities

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Lease liabilities 3.96 2.62
Other financial liabilities 38.88 40.37
Other current liabilities 23.54 30.07
Provisions 8.72 5.30
Current tax liabilities (net) 2.13 -
398.56 370.06
Equity 304.29 282.10

Proportion of the Group's ownership 50.00% 50.00%
Carrying amount of the investment * 152.02 140.99
Capital commitments 3.34 3.32

Contingent liabilities 26.86 26.66
* Adjusted for inter company transactions
Summarised statement of profit and loss

Year ended
March 31, 2024 March 31, 2023
` Crore ` Crore
Interest income 4.61 2.15
Other income 4.59 6.00
Cost of raw material and components 1,390.32 1,383.64
Employee benefits expense 99.70 88.16
Other expenses 505.73 458.35
Profit before tax 249.60 209.90
Tax expense 64.58 53.59
Profit for the year 185.02 156.31
Other comprehensive income (1.33) 0.07
Total comprehensive income for the year 183.68 156.37

B The Board of directors of Cummins Research and Technology India Private Limited (‘CRTI’) at
its meeting held on March 21, 2016, had decided to cease operations of CRTI. Accordingly, it
ceased its operations from April 1, 2016. The shareholders of CRTI, in their extra-ordinary general
meeting held on April 1, 2022, passed a resolution to initiate voluntary winding-up of CRTI under
Companies Act, 2013 and Insolvency and Bankruptcy Code, 2016. The liquidator, appointed by the
shareholders at the extra-ordinary general meeting, completed all the procedures pertaining to the
voluntary winding-up, and had submitted the dissolution application with the Mumbai Bench of the
National Company Law Tribunal (‘NCLT’) on May 20, 2023. The final order of dissolution (voluntary
liquidation) was passed by the NCLT on December 13, 2023 and accordingly, CRTI ceases to exist.
Summarised financial information of the joint venture, based on their Ind AS financial statements,
and reconciliation with the carrying amount of the investment in consolidated financial statements
are set out below:
Cummins Research and Technology India Private Limited

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Non current assets
Income tax assets (net) - -
- -
Current assets
Cash and cash equivalents - 0.92
Other current assets - -
- 0.92
Current liabilities
Trade payables - -
Other current liabilities - 0.92
- 0.92
Equity - -
Carrying amount of the investment * - -


As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Other income - 0.00
Other expenses - 0.21
Profit before tax - (0.21)
Tax expense - 0.00
Profit for the year - (0.21)
Other comprehensive income - -
Total comprehensive income for the year - (0.21)
41 Investment in an associate
The Group has a 48.54% interest in Cummins Generator Technologies India Private Limited (CGT),
which is involved in the manufacture and sale of alternators and related services. It caters to both
domestic and international markets. The Group’s interest is accounted for using the equity method
in the consolidated financial statements. The following table illustrates the summarised financial
information of the Group’s investment in CGT.

As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Non current assets 81.37 80.03

Current assets 759.19 678.49
Non current liabilities 23.87 27.69
Current liabilities 173.55 175.82
Equity 643.13 555.02
Carrying amount of the investment * 311.29 268.53
Capital commitments 4.47 9.18

Contingent liabilities 4.98 4.98


As at
March 31, 2024 March 31, 2023
` Crore ` Crore
Other income 30.27 19.31
Cost of raw material and components 1,197.73 1,255.83
Employee benefits expense 99.88 84.39
Other expenses 102.20 107.62
Profit before tax 422.63 361.36
Tax expense 108.26 92.20
Profit for the year 314.37 269.16
Other comprehensive income (1.56) (1.20)
Total comprehensive income for the year 312.81 267.96
42 Employee benefit plans

1. Defined contribution plans - The Group has recognised the following amounts in
statement of profit and loss for the year:
` Crore
Total
Contribution to employees provident fund 18.00
15.08
Contribution to management superannuation fund 22.57
21.43
Employees state insurance 0.04
0.05

2 Defined benefit plans

The following figures are as per actuarial valuation, as at the balance sheet date, carried out by an
independent actuary.
a. Net balance sheet position

` Crore
Sr. Particulars
no.
Defined benefit
i) March 31, 2024 246.62 29.08 2.52 2.22 402.93
obligation
March 31, 2023 211.34 28.51 2.46 2.22 354.99
Fair value of plan
ii) March 31, 2024 206.88 28.82 - - 403.79
assets
March 31, 2023 197.63 28.69 - - 349.47
Funded status surplus/
iii) March 31, 2024 (39.73) (0.26) (2.52) (2.22) 0.86
(deficit)
March 31, 2023 (13.71) 0.18 (2.46) (2.22) (5.52)
iv) Effect of asset ceiling March 31, 2024 - - - - (0.86)
March 31, 2023 - - - - -
Net defined benefit
March 31, 2024 (39.73) (0.26) (2.52) (2.22) 0.00
asset /(liability)
March 31, 2023 (13.71) 0.18 (2.46) (2.22) (5.52)
b. Reconciliation of opening and closing balances of the present value of the Defined
Benefit Obligation (DBO)
` Crore
Sr.
no.
Opening defined benefit
March 31, 2024 211.34 28.51 2.46 2.22 354.99
obligation
March 31, 2023 198.63 28.27 2.49 1.71 320.70
i) Current service cost March 31, 2024 15.64 0.90 0.09 0.08 16.79
March 31, 2023 14.27 0.96 0.10 0.07 14.10
ii) Interest cost March 31, 2024 15.11 2.05 0.17 0.16 27.15
March 31, 2023 14.30 1.94 0.17 0.12 22.60
Settlement /Curtailment
iii) March 31, 2024 - - - - -
(credit) / cost
March 31, 2023 - - - - -

Sr.
no.
Actuarial (gains) /
iv) March 31, 2024 16.75 (0.73) 0.08 (0.13) 2.65
losses - experience
March 31, 2023 3.12 (1.01) 0.06 0.51 12.47
Actuarial (gains) /
v) losses - demographic March 31, 2024 (0.88) 0* (0.04) (0.03) -
changes
March 31, 2023 (1.15) 0.57 (0.01) (0.08) -
Actuarial (gains) /
vi) losses - financial March 31, 2024 6.44 0.40 0.03 0.04 4.25
assumptions
March 31, 2023 (5.84) (0.73) (0.06) (0.01) (5.12)
vii) Benefits paid March 31, 2024 (15.22) (2.05) (0.27) (0.12) (44.12)
March 31, 2023 (13.84) (1.49) (0.42) (0.10) (42.17)
Past service cost - plan
viii) March 31, 2024 - - - - -
amendments
March 31, 2023 - - 0.13 - -
ix) Other adjustments March 31, 2024 - - - - -
March 31, 2023 - - - - -

Acquisitions (credit) /
x) March 31, 2024 (2.56) - - - 15.73
cost
March 31, 2023 1.85 - - - 10.62
Contributions by
xi) March 31, 2024 - - - - 25.49
employees
March 31, 2023 - - - - 21.79
Closing defined
March 31, 2024 246.62 29.08 2.52 2.22 402.93
benefit obligation
March 31, 2023 211.34 28.51 2.46 2.22 354.99
*Amount is below the rounding off norm adopted by the Company.

c. Reconciliation of opening and closing balances of the fair value of plan assets
` Crore
Sr.
no.
Opening fair value of
March 31, 2024 197.63 28.69 - - 349.47
plan assets
March 31, 2023 180.82 27.30 - - 315.13
Interest income on plan
i) March 31, 2024 14.47 2.06 - - 26.73
assets
March 31, 2023 12.43 1.87 - - 22.21
Return on plan asset
ii) greater / (lesser) than March 31, 2024 0.55 0.12 - - 13.70
discount rate
March 31, 2023 0.54 0.04 - - 7.79
Actuarial gains /
iii) March 31, 2024 - - - - -
(losses)
March 31, 2023 - - - - -
Contribution by the
iv) March 31, 2024 11.89 - - - 16.79
employer
March 31, 2023 15.70 0.97 - - 14.10
v) Benefits paid March 31, 2024 (15.10) (2.05) - - (44.12)
March 31, 2023 (13.71) (1.49) - - (42.17)
vi) Acquisitions adjustment March 31, 2024 (2.56) - - - 15.73
March 31, 2023 1.85 - - - 10.62
Contribution by
vii) March 31, 2024 - - - - 25.49
employee
March 31, 2023 - - - - 21.79
viii) Other adjustments March 31, 2024 - - - - -
March 31, 2023 - - - - -
Closing fair value of
March 31, 2024 206.88 28.82 - - 403.79
plan assets
March 31, 2023 197.63 28.69 - - 349.47

d. Total defined benefit cost

` Crore
Sr.
no.
Current and past
i) March 31, 2024 15.64 0.90 0.09 0.08 16.79
service cost
March 31, 2023 14.27 0.96 0.23 0.07 14.10
ii) Net interest cost March 31, 2024 0.64 (0.01) 0.17 0.16 0.42
March 31, 2023 1.87 0.07 0.17 0.12 0.39
Actuarial (gains) /
iii) losses recognised in March 31, 2024 21.76 (0.45) 0.07 (0.12) (6.80)
OCI
March 31, 2023 (4.41) (1.21) (0.01) 0.42 (0.44)
Total defined benefit
March 31, 2024 38.04 0.44 0.33 0.12 10.41
cost
March 31, 2023 11.73 (0.18) 0.39 0.61 14.05
e. Statement of profit and loss

` Crore
Sr.
no.
Current and past
i) March 31, 2024 15.64 0.90 0.09 0.08 16.79
service cost
March 31, 2023 14.27 0.96 0.23 0.07 14.10
Settlement / Curtailment
ii) March 31, 2024 - - - - -
cost / (credit)
March 31, 2023 - - - - -
iii) Net interest cost March 31, 2024 0.64 (0.01) 0.17 0.16 0.42
March 31, 2023 1.87 0.07 0.17 0.12 0.39
Cost recognised in
March 31, 2024 16.28 0.89 0.26 0.24 17.21
profit and loss
March 31, 2023 16.14 1.03 0.40 0.19 14.49
All of the above have been included in the line ‘Contribution to provident and other funds’, in note 29 of
the Statement of Profit and Loss.

f. Other comprehensive income

` Crore
Sr.
no.
Actuarial (gain) / loss
i) March 31, 2024 16.75 (0.73) 0.08 (0.13) 2.65
due to DBO experience
March 31, 2023 3.12 (1.01) 0.06 0.51 12.47
ii) due to assumption March 31, 2024 5.30 0.40 (0.01) 0.01 4.25
change
March 31, 2023 (7.04) (0.16) (0.07) (0.09) (5.12)
Return on plan assets
iii) (greater) / less than March 31, 2024 (0.55) (0.12) - - (13.70)
discount rate
March 31, 2023 (0.54) (0.04) - - (7.79)
Adjustment to
iv) recognize the effect of March 31, 2024 - - - - 0.86
asset ceiling
March 31, 2023 - - - - -
March 31, 2024 21.50 (0.45) 0.07 (0.12) (5.94)
recognised in OCI
March 31, 2023 (4.46) (1.21) (0.01) 0.42 (0.44)
g. For each major category of plan assets, following is the percentage that each
major category constitutes of the fair value of the total plan assets
Gratuity Pension PF
Sr.
Particulars March 31, March 31, March 31, March 31, March 31, March 31,
no.
2024 2023 2024 2023 2024 2023
Government of India
i) 0.00% 0.00% 0.00% 0.00% 44.54% 49.24%
securities
Debt instruments and
ii) related investments / 0.00% 0.00% 0.00% 0.00% 41.98% 42.24%
corporate bonds
iii) Special deposit scheme 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
iv) Insurer managed funds 100.00% 100.00% 100.00% 100.00% 0.00% 0.00%
v) Mutual Funds 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Equities and related
vi) 0.00% 0.00% 0.00% 0.00% 13.48% 8.51%
investments
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
The overall expected rate of return on assets is based on the expectations of the average long term rate
of return expected on investments of the fund during the estimated term of obligations.

h. Supplementary information as per Ind AS 19

` Crore
Sr.
no.
Expected employer March 31, 2024 10.48 - NA NA 18.47
i) contribution for next
year March 31, 2023 10.22 - NA NA 15.51
i. Following are the principal actuarial assumption used as at the balance sheet date
Discount rate March 31, 2024 7.20% 7.20% 7.20% 7.20% 7.20%
March 31, 2023 7.50% 7.50% 7.50% 7.50% 7.50%
Expected rate of return on
March 31, 2024 7.20% 7.20% NA NA NA
plan assets
March 31, 2023 7.50% 7.50% NA NA NA
Salary escalation
March 31, 2024 10.00% NA NA NA NA
rate - management staff
March 31, 2023 10.00% NA NA NA NA
Salary escalation
March 31, 2024 8.00% NA NA NA NA
rate - non-management staff
March 31, 2023 8.00% NA NA NA NA
Annual increase in
healthcare March 31, 2024 NA NA NA 8.00% NA
costs - year 2023- 2025
March 31, 2023 NA NA NA 8.00% NA
Annual increase in
healthcare March 31, 2024 NA NA NA 6.00% NA
costs - 2026 and thereafter
March 31, 2023 NA NA NA 6.00% NA
Guaranteed rate of return as
March 31, 2024 NA NA NA NA 8.25%
declared by EPFO
March 31, 2023 NA NA NA NA 8.15%
Mortality rate March 31, 2024 Indian Assured Lives Mortality (2012-14) Ult Table
March 31, 2023 Indian Assured Lives Mortality (2012-14) Ult Table
The estimates of future salary increases considered in actuarial valuation takes into account inflation,
seniority, promotion and other relevant factors.

j. Expected benefit payment for the next years

` Crore
March March March March March 2030 -
31, 2025 31, 2026 31, 2027 31, 2028 31, 2029 2034
Particulars As at
March March March March March 2029 -
31, 2024 31, 2025 31, 2026 31, 2027 31, 2028 2033
Gratuity March 31, 2024 24.98 19.23 18.94 19.34 19.85 116.71
March 31, 2023 19.73 15.26 16.66 15.77 16.48 95.74
Pension March 31, 2024 2.76 4.10 4.51 4.47 3.63 13.68
March 31, 2023 2.36 3.49 3.90 4.23 4.21 14.26
Ex-gratia March 31, 2024 0.57 0.43 0.43 0.35 0.31 1.52
March 31, 2023 0.45 0.36 0.43 0.43 0.34 1.51
PRMB March 31, 2024 0.31 0.20 0.26 0.29 0.28 1.46
March 31, 2023 0.25 0.18 0.21 0.27 0.29 1.58
PF March 31, 2024 0.54 0.54 0.54 0.54 0.54 1.97
March 31, 2023 0.05 0.05 0.05 0.05 0.05 0.19
k. Quantitative sensitivity analysis for significant assumption is as shown below:

` Crore
Assumptions Discount rate Future salary increase Withdrawal rate

0.5% 0.5% 0.5% 0.5% 5% 5%
Sensitivity level
Gratuity
March 31, 2024 (10.65) 11.45 11.14 (10.47) (13.01) 11.56
March 31, 2023 (9.54) 10.27 10.02 (9.40) (10.59) 8.79
Pension
March 31, 2024 (0.61) 0.63 NA NA 0.06 (0.41)
March 31, 2023 (0.65) 0.67 NA NA 0.06 (0.58)
Ex-gratia
March 31, 2024 (0.05) 0.06 NA NA (0.51) 0.26
March 31, 2023 (0.06) 0.06 NA NA (0.54) 0.24
PF
March 31, 2024 (4.70) (6.04) - - - -
March 31, 2023 (28.00) 25.00 - - - -

Assumptions Discount rate Medical inflation Withdrawal rate

0.5% 0.5% 1% 1% 5% 5%
Sensitivity level
PRMB
March 31, 2024 (0.07) 0.07 0.14 (0.13) (0.44) 0.19
March 31, 2023 (0.07) 0.08 0.16 (0.14) (0.50) 0.23
The sensitivity analysis above has been determined based on a method that extrapolates the impact on
defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of
the reporting period. The sensitivity analysis are based on a change in a significant assumption, keeping
all other assumptions constant. The sensitivity analysis may not be representative of an actual change in
the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation from
one another.
43 Related party disclosures
a) Name of the related party and nature of relationship where control exists
Name of related party Nature of relationship

Cummins Inc. Holding Company
b) Transactions with related parties as per the books of account during the year ended
March 31, 2024
` Crore
Transaction Name of the party Total
Purchase of goods Tata Cummins Private Limited March 31, 2024 1,357.54
March 31, 2023 1,208.59
Cummins Technologies India March 31, 2024 877.83
Private Limited March 31, 2023 691.78
Others March 31, 2024 877.39
March 31, 2023 842.53
Sale of goods Cummins Limited March 31, 2024 691.93
March 31, 2023 718.49
Cummins Technologies India March 31, 2024 362.16
Private Limited
March 31, 2023 285.23
Others March 31, 2024 465.61
March 31, 2023 700.38


Purchase of assets Cummins Technologies India March 31, 2024 0.02
Private Limited
March 31, 2023 1.05
Cummins Power Generation March 31, 2024 -
Inc.
March 31, 2023 0.83
Fleetguard Filters Pvt Ltd March 31, 2024 1.50
March 31, 2023 0.79
March 31, 2023 0.64
Sale of assets Cummins Technologies India March 31, 2024 2.97
Private Limited
March 31, 2023 0.90
Services rendered Cummins Technologies India March 31, 2024 182.15
(Refer note v) Private Limited
March 31, 2023 154.32
Valvoline Cummins Private March 31, 2024 64.63
Limited
March 31, 2023 61.52
March 31, 2023 62.16
Services received Cummins Technologies India March 31, 2024 25.66
(Refer note vi) Private Limited March 31, 2023 14.99
March 31, 2023 3.55
Royalty Cummins Inc. March 31, 2024 28.26
March 31, 2023 17.33
Support services Cummins Inc. March 31, 2024 62.51
March 31, 2023 106.03

Cummins Africa Middle East March 31, 2024 4.80
(Pty) Ltd.
March 31, 2023 5.23
Reimbursements paid Cummins Technologies India March 31, 2024 122.57
Private Limited
March 31, 2023 100.13


March 31, 2023 12.24
March 31, 2023 5.42
Reimbursements Cummins Technologies India March 31, 2024 108.37
received Private Limited
(Refer note vii) March 31, 2023 86.43

March 31, 2023 4.42
March 31, 2023 20.29
Cummins Generator March 31, 2024 18.45
Technologies India Private
Limited
March 31, 2023 13.58
March 31, 2023 4.95
Remuneration paid Key management personnel March 31, 2024 10.74
(Refer note i and iii)
March 31, 2023 7.94
Transfer of export Cummins Technologies India March 31, 2024 -
benefits Private Limited
March 31, 2023 1.55
Dividend paid Cummins Inc. March 31, 2024 438.25
March 31, 2023 318.09
Donations paid Cummins India Foundation March 31, 2024 20.07
March 31, 2023 15.57
Contributions paid Cummins India Limited March 31, 2024 16.79
Officers Provident Fund
March 31, 2023 14.10
Cummins Group Employees March 31, 2024 22.57
Superannuation Scheme
March 31, 2023 21.43
Cummins Group Officers March 31, 2024 11.89

Gratuity Scheme March 31, 2023 15.70


Sitting fees and Independent Directors March 31, 2024 1.13
commission
(Refer note i) March 31, 2023 1.07
Equity contribution - Cummins Inc. March 31, 2024 10.49

share based payments March 31, 2023 5.23
c) Amounts outstanding as at March 31, 2024

` Crore
Particulars Name of the party Total
Trade payables Cummins Technologies India March 31, 2024 283.07
Private Limited
March 31, 2023 173.94
March 31, 2023 163.22
March 31, 2023 94.30
March 31, 2023 69.59
Others March 31, 2024 174.98
March 31, 2023 120.72
Other current financial / Cummins Inc. March 31, 2024 83.69
non-financial liabilities March 31, 2023 18.15
Cummins Africa Middle East March 31, 2024 4.81
(Pty) Ltd. March 31, 2023 1.18
Trade receivables Cummins Technologies India March 31, 2024 136.37
Private Limited March 31, 2023 86.72
March 31, 2023 83.43
Cummins Romania SRL March 31, 2024 1.32
March 31, 2023 41.07
Others March 31, 2024 102.45
March 31, 2023 172.12
Other current financial Tata Cummins Private Limited March 31, 2024 2.65
assets March 31, 2023 2.95

Particulars Name of the party Total

March 31, 2023 1.81
Fleetguard Filters Pvt Ltd March 31, 2024 -
March 31, 2023 1.82
Cummins Research and March 31, 2024 -
Technology India Private
Limited March 31, 2023 1.01

March 31, 2023 0.58
43 Related party disclosures (contd.)

i) The names of the related parties under the appropriate relationship included in
notes 43(b) and (c) above are as follows:
Fellow subsidiaries Chongqing Cummins Engine Co Ltd
(with which there are Cmi Group Holdings Cooperatief U.A.
transactions)
Cmi Tr Mtr Guc Sistemleri Satis Servis Ltd Sirketi
Consolidated Diesel Company
Cummins (China) Investment Co. Ltd.
Cummins (Xiangyang) Eng Remanfg Co. Ltd.
Cummins (Xiangyang) Machining Co. Ltd.
Cummins Africa Middle East (Pty) Ltd.
Cummins Arabia FZCO
Cummins Asia Pacific Pte. Ltd.
Cummins Belgium NV
Cummins Brasil Ltda
Cummins C&G Holding Limited
Cummins C&G Limited
Cummins Commercializadora S. De R.L. De C.V.
Cummins Czech Republic S.R.O.
Cummins Deutschland Gmbh
Cummins Diesel Botswana (Pty.) Ltd.
Cummins Dksh (Singapore) Pte Ltd
Cummins Dksh (Thailand) Limited


Cummins Dksh (Vietnam) LLC
Cummins East Asia Research And Development Company Ltd.
Cummins Emission Solutions Inc.
Cummins Engine (Shanghai) Trading & Services Co., Ltd.
Cummins Filtration Inc.
Cummins France SA
Cummins Fuel System (Wuhan) Co. Ltd.
Cummins Generator Technologies Australia Pty Ltd
Cummins Generator Technologies Limited
Cummins Ghana Limited
Cummins Italia SPA
Cummins Japan Limited
Cummins Kuwait Electrical Tools And Equipment Trading And
Cont.
Cummins Limited
Cummins Middle East FZE
Cummins Natural Gas Engines, Inc.
Cummins Norway AS
Cummins NV
Cummins Power Generation (China) Co., Ltd.
Cummins Power Generation Inc.
Cummins Power Generation Limited UK
Cummins Power Solutions India Private Limited
Cummins Qatar LLC
Cummins Romania SRL
Cummins Sales And Service Korea Co. Ltd.
Cummins Sales And Service Philippines Inc.
Cummins Sales And Service Sdn. Bhd.
Cummins Sales And Service Singapore Pte. Ltd.
Cummins Saudi Arabia L.L.C
Cummins South Africa (Pty.) Ltd.
Cummins South Pacific Pty Ltd
Cummins Southern Plains LLC
Cummins Spain SL
Cummins Technologies India Private Limited
Cummins West Africa Limited
Cummins Westport Inc.


Distribuidora Cummins Centroamerica Costa Rica S. De R.L.
Distribuidora Cummins Centroamerica Guatemala Ltda.
Distribuidora Cummins Centroamerica Honduras, S.De R.L.
Distribuidora Cummins De Panama S. De R.L.
Distribuidora Cummins S.A.
Distribuidora Cummins Sucursal Paraguay Srl
Filt Red India Technologies Private Limited
Fleetguard Filters Private Limited
Hydrogenics Europe N.V.
Komatsu Cummins Chile Ltda.
Shanghai Cummins Trading Co. Ltd.
Taiwan Cummins Sales & Services Co. Ltd.
TCPL Green Energy Solutions Private Limited
Key management Ashwath Ram - Managing Director
personnel Ajay Patil - Chief Financial Officer
Vinaya Joshi - Company Secretary
Jennifer Mary Bush - Chairman of the Board
Steven Chapman - Chairman of the Board (upto September 30,
2023)
Donald Jackson
Bonnie Jean Fetch (w.e.f. November 5, 2022)
Norbert Nusterer (upto August 26, 2022)
Lorraine Meyer (upto February 15, 2022)
Independent Directors
- Nasser Munjee
- Lira Goswami (w.e.f. May 24, 2023)
- Priya Dasgupta (upto May 24, 2023)
- Rajeev Bakshi
- Rama Bijapurkar
- Rekha (w.e.f. August 11, 2022)
Associate Cummins Generator Technologies India Private Limited
Joint venture Valvoline Cummins Private Limited
Cummins Research and Technology India Private Limited
(Refer Note 40B)


Enterprise with common Tata Cummins Private Limited
key management Cummins India Foundation
personnel
New Delhi Law Offices Private Limited (upto May 24, 2023)
Caltherm Thermostats Private Limited
Employees benefit Cummins India Limited Officers Provident Fund
plans where there is Cummins Group Employees Superannuation Scheme
significant influence
Cummins Group Officers Gratuity Scheme
Terms and conditions of transactions with related parties:

ii) The sales to and purchase from related parties are made on terms equivalent to those that
prevail in arm’s length transaction. Outstanding balances at the year end are unsecured
and interest free and settlement occurs in cash. There have been no guarantees provided
or received for any related party receivables or payables. For the year ended March 31,
2024, the Group has not recorded any impairment of receivables relating to amounts owed
by related parties (March 31, 2023: Nil). This assessment is undertaken each financial year
through examining the financial position of the related party and the market in which the
related party operates.
iii) Liability for post employment benefits, other long term benefits, termination benefits and
certain short term benefits such as compensated absences is provided on an actuarial
basis for the Company as a whole. Accordingly the amount for above pertaining to key
management personnel is not ascertainable and, therefore, not included above.
iv) Related party transaction, the amount of which is in excess of 10% of the total related party
transactions of the same type are disclosed separately.
v) Services rendered include renting services, testing services, business support services,
etc.
vi) Services received include testing services, solution contract support services, license fees,
etc.
vii) Includes recoveries on account of employee cost, travel costs, training, IT services, etc.
44 Segment information
On a review of all the relevant aspects including, in particular, the system of internal financial
reporting to the Board of Directors, which is the Chief Operating Decision Maker (‘CODM’) and
considering the economic characteristics of the operations, the Group is of the view that it operates
in two segments viz. ‘Engines’ and ‘Lubes’. Lubes segment comprises of a joint venture viz.
Valvoline Cummins Private Limited, which is accounted for as per equity method under relevant
Ind AS standard. The CODM evaluates the Group’s performance based on an analysis of various
parameters. Engine segment comprises of Cummins India Limited and other Group companies,
which has been aggregated considering the nature of products, class of customer etc.

Following information is provided to the CODM for Lubes segment for monitoring its
performance:
` Crore
Particulars Year ended Year ended Elimination / Total
March 31, 2024 March 31, 2024* Adjustments
Engines Lubes
Sales 8,859.99 2,254.71 2,254.71 8,859.99
Profit before tax 2,112.10 249.60 157.09 2,204.61
Profit after tax * 1,628.07 185.02 92.51 1,720.58
Particulars Year ended Year ended Elimination / Total

March 31, 2023 March 31, 2023* Adjustments
Engines Lubes
Sales 7,641.40 2,148.84 2,148.84 7,641.40
Profit before tax 1,513.14 209.90 131.75 1,591.29
Profit after tax * 1,150.00 156.30 78.15 1,228.15
Notes:
* The above numbers represent full numbers in the Statement of Profit and Loss of Valvoline
Cummins Private Limited and are not Group’s proportionate share.
For relevant information relating to Engine segment refer consolidated Statement of Profit and
Loss and Balance Sheet.
45 As set out in section 135 of the Companies Act, 2013, the Group is required to contribute ` 20.07 crore
(March, 31 2023 : `15.57 crore) towards Corporate Social Responsibility activities, as calculated
basis 2% of its average net profits of the last three financial years. Accordingly, during the current
year, the Board has approved and the Group has contributed ` 20.07 crore (March 31, 2023: `
15.57 crore) to Cummins India Foundation towards eligible projects as mentioned in Schedule III
(including amendments thereto) of the Companies Act, 2013. Apart from the above contribution to
Cummins India Foundation, the Group has not made any direct expenditure/contributions of capital
nature. Unspent contribution amounting to ` 3.67 crore (March, 31 2023 : `1.55 crore) has been
transferred by the Company to a separate bank account as per the requirement.
46 Financial risk management objectives and policies
Financial risk factors:

The Group has well written policies covering specific areas, such as foreign exchange risk and
investments which seek to minimise potential adverse effects on the Group’s financial performance
due to external factors. The Group uses derivatives to hedge foreign exchange risk exposures.
The Group’s senior management oversees the management of these risks. All derivatives and
investment activities for risk management purposes are carried out by specialist team that has
appropriate skills, experience and supervision. As per the Group’s policy, no trading in derivatives
for speculation purpose may be undertaken. The Board of Directors reviews and approves policies
for managing each of these risks.
The Group’s activities are exposed to variety of financial risks: market risk (including currency risk,
interest rate risk and price risk), credit risk and liquidity risk.
a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises three types of risks as follows:
i) Foreign currency risk

The Group is exposed to foreign exchange risk arising from various currency exposures, primarily
with respect to the US dollar, GBP and Euro. Foreign exchange risk arises from future commercial
transactions, recognized assets and liabilities denominated in a currency that is not the Group’s
functional currency.
Management has set up a policy to manage their foreign exchange risk against their functional
currency. To manage the foreign exchange risk arising from recognised assets and liabilities, the
Group uses forward contracts.
The following table demonstrates the sensitivity relating to possible change in foreign currencies
with all other variables held constant:
` Crore
Currency % change March 31, 2024 March 31, 2023

Effect on profit before tax and Effect on profit before tax
pre-tax equity and pre-tax equity
USD 1% 0.21 1.05
Euro 1% 0.05 0.60
Others 1% 0.02 0.15
Total 0.28 1.80
The movement in the pre-tax effect is a result of a change in the fair value of derivative financial
instruments not designated in a hedge relationship and financial assets and liabilities denominated
in various currencies. Although the derivatives have not been designated in a hedge relationship,
they act as economic hedge and offset the under lying transactions when they occur.
ii) Interest rate risk

Interest rate risk is the fair value of future cash flows of a financial instrument which fluctuates
because of changes in the market interest rates. In order to optimise the Group’s position with
regards to interest income and interest expense, treasury team manages the interest rate risk
by balancing the portion of fixed rate and floating rate in its total portfolio.

Borrowings of ` 100 crore outstanding as at March 31, 2024 (As at March 31, 2023 : ` 350.04
crore) were at floating rate linked to T-bill / MIBOR + applicable spread.
The following table demonstrates the sensitivity of interest payable:

` Crore
% change March 31, 2024 March 31, 2023
Effect on profit before Effect on profit before tax
tax and pre-tax equity and pre-tax equity
Working Capital Loan 0.50% 0.01 0.71
iii) Price risk

The Group invests its surplus funds in mutual funds which are linked to debt markets. The Group is
exposed to price risk for investments in mutual funds that are classified as fair value through profit
or loss. To manage its price risk arising from investments in mutual funds, the Group diversifies
its portfolio. Diversification and investment in the portfolio is done in accordance with the limits
approved by the Board of Directors.
The following table demonstrates the sensitivity relating to possible change in investment value
with all other variables held constant:
` Crore
% change March 31, 2024 March 31, 2023
Effect on profit before Effect on profit before tax
tax and pre-tax equity and pre-tax equity
Mutual funds 0.50% 2.21 3.45
Profit after tax for the year would increase / decrease as a result of gains / losses on mutual funds
classified as at fair value through profit or loss.
b) Credit risk
Credit risk is the risk that counterparty will not meet its obligation under financial instrument or
customer contract, leading to a financial loss. The Group is exposed to credit risk primarily from
trade receivables, contract assets, other receivables, deposits with banks and loans given.
Trade receivable and contract assets

Senior management is responsible for managing and analysing the credit risk for each new
customer before standard payment, delivery terms and conditions are offered. The Group assesses
the credit quality of the customer, taking into account its financial position, past experience and
other factors. Individual risk limits are set based on internal or external assessment. The utilisation
of credit limits is regularly monitored.

An impairment analysis is performed at each reporting date for all customers. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of financial assets
disclosed in note 10 and 13.
Other receivables, deposits with banks and loans given
Credit risk from balances with banks is managed by the Group’s treasury department in accordance
with Group’s policy approved by the Risk Management Committee. Investments of surplus funds
are made within the credit limits and as per the policy approved by the Board of Directors.
No credit limits were exceeded during the reporting period, and management does not expect any
losses from non-performance of the above assets. The maximum exposure to credit risk at the
reporting date is the carrying value of each class of financial assets disclosed in note 5,9,11,12 and
13.
c) Liquidity risk
Cash flow forecasting is performed by Treasury function. Treasury team monitors rolling forecasts
of the Group’s liquidity requirements to ensure it has sufficient cash to meet the operational needs.
Such forecasting takes into consideration the compliance with internal cash management policy.
As per the Group’s policy, treasury team invests surplus cash in marketable securities and
time deposits with appropriate maturities or sufficient liquidity to provide headroom to meet the
operational needs. At the reporting date, the Group held mutual funds of ` 441.31 crore (March 31,
2023 : ` 689.93 crore) and other liquid assets of ` 299.89 crore (March 31, 2023 : ` 396.69 crore)
that are expected to readily generate cash inflows for managing liquidity risk.
The table below summarises the maturity profile of the Group’s financial liabilities based on
contractual undiscounted payments.
` Crore
As at March 31, On demand Less than 12 1-5 years More than 5
2024 months years
Lease liabilities - 9.34 21.13 2.54
including interest
Royalty and - 29.07 - -
support services
Capital Creditors - 52.65 18.44 -
Others - 48.47 - -

As at March 31, On demand Less than 12 1-5 years More than 5

2023 months years
Lease liabilities - 8.14 23.25 2.06
including interest
Royalty and - 19.32 - -
support services
Capital Creditors - 4.37 - -
Others - 57.66 - -
d) Capital management
The Group’s objectives when managing capital is to provide maximum returns to shareholders,
benefits to other stakeholders and to maintain an optimal capital structure to reduce the cost of
capital. The Group manages its capital structure and makes adjustments in light of changes in
economic conditions.
The gearing ratio is calculated as net debt divided by total capital. Net debt is calculated as
total borrowings less cash and cash equivalents. Total capital is calculated as equity as shown
in the balance sheet plus all other reserves attributable to equity shareholders of the holding
company.
` Crore
March 31, 2024 March 31, 2023
Less: Cash and cash equivalents 299.89 396.69
Net debt (199.89) (46.65)
Equity 6,612.32 5,758.24
Gearing ratio (times) -* -*
* Gearing ratio is not calculated as the amount of cash and cash equivalents is higher than
borrowings

47 Fair values
The following table provides a comparison by class of the carrying amounts and fair value of
the Group’s financial instruments other than those with carrying amounts that are reasonable
approximations of fair values and investment properties.
Carrying value Fair value

` Crore ` Crore ` Crore ` Crore
Financial assets:
FVTPL of investments in 441.31 689.93 441.31 689.93
mutual funds & bonds
FVTOCI of investments in 623.34 357.99 623.34 357.99
certificate of deposit (CD)
FVTOCI of investments in 113.54 - 113.54 -
quoted Bonds/NCD
FVTPL of Foreign exchange 0.31 0.02 0.31 0.02
forward contracts
Non-current assets
Investment properties 977.31 1,019.04 1,416.71 1,453.73
The Management assessed that the fair values of cash and cash equivalents, other bank balances,
trade receivables, trade payables and other current liabilities approximate their carrying amounts
largely due to the short term maturities of these instruments.
The fair value of the financial assets and financial liabilities is included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a
forced or liquidation sale.
The fair value of investments in mutual funds is based on the price quotation at the reporting
date obtained from the asset management companies. The Group enters into derivative financial
instruments with various counterparties, principally financial institutions. Foreign exchange forward
contracts are valued using valuation techniques, which employ the use of market observable
inputs. The most frequently applied valuation techniques include forward pricing using present
value calculations.

Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method as defined
in accounting policy 1c and investment properties by valuation method as defined in Note 3
` Crore
Quoted Significant Significant Total

prices observable unobservable
in active inputs inputs
markets
Level 1 Level 2 Level 3
Financial assets at FVTPL
Investments in mutual funds &
bonds
March 31, 2024 - 441.31 - 441.31
March 31, 2023 - 689.93 - 689.93
Financial assets at FVTOCI

Investments in certificate of
deposit
March 31, 2024 - 623.34 - 623.34
March 31, 2023 - 357.99 - 357.99
Investments in quoted Bonds/

NCD
March 31, 2024 113.54 - - 113.54
March 31, 2023 - - - -
Financial liabilities at FVTPL

Forward contracts liability
March 31, 2024 - 0.31 - 0.31
March 31, 2023 - 0.02 - 0.02
Non-current assets
Investment properties
March 31, 2024 - - 1,416.71 1,416.71
March 31, 2023 - - 1,453.73 1,453.73
There has been no transfer between Level 1 and Level 2 during the year. For details of valuation
method, assumption used for valuation of investment properties, refer note 3.

355
48 Financial Ratios
No. Name of the Numerator Denominator March March Variance Rationale for Variance > 25%
Ratio 31, 2024 31, 2023 %
1 Current Ratio Current assets Current liabilities 2.89 2.70 7.11%
2 Debt Equity Ratio Short term debt + Long Shareholders' funds 0.02 0.06 -75.12% During the year, shareholders'
term debt funds have increased on
account of profits during
the year. Borrowings have
gone down on account of
repayments.
3 Debt Service Net profit after taxes + Interest + Lease 76.29 73.56 3.71%
Coverage Ratio Depreciation + Interest payments + Principal
repayments
4 Return on Equity Net profits after taxes Average shareholders 28% 23% 22.18%
Ratio * funds
5 Inventory Turnover Cost of goods sold Average inventory 6.23 6.36 -2.15%
Ratio
6 Trade Receivable Revenue from Average trade 4.89 5.44 -10.21%
Turnover Ratio operations (gross) receivable
7 Trade Payable Net credit purchases Average trade payable 4.97 5.47 -9.15%
Turnover Ratio
8 Net Capital Revenue from Current assets - 2.32 2.42 -4.38%
Turnover Ratio operations (gross) Current liabilities
9 Net Profit Ratio * Net profits after taxes Revenue from 19% 16% 19.70%
operations (gross)
10 Return on Capital Earning before interest Total tangible assets 35% 28% 22.42%
Employed * and taxes - (current liabilities +
non-current liabilities)
11 Return on Earning before interest Total assets 25% 20% 21.30%
Investment * and taxes
* Exceptional items have been excluded for computation of financial ratios

356
49 Additional information
Statutory group information
Name of the entity in the Net assets i.e. total Share in profit and Share in other Share in total
Group assets minus total (loss) comprehensive income comprehensive income
liabilities
As % of ` Crore As % of ` Crore As % of ` Crore As % of ` Crore
consolidated consolidated consolidated consolidated
net assets profit and other total
loss comprehensive comprehensive
income income
Parent
Cummins India Limited
Balance as at March 31, 2024 93.21% 6,163.09 96.52% 1,660.62 94.40% (16.68) 96.54% 1,643.94
Balance as at March 31, 2023 93.22% 5,367.98 91.99% 1,129.82 110.58% 3.97 92.05% 1,133.79
Subsidiary (Indian)
Cummins Sales & Service
Private Limited
Balance as at March 31, 2024 0.54% 35.42 0.58% 9.96 -2.46% 0.44 0.61% 10.39
Balance as at March 31, 2023 0.43% 25.03 0.40% 4.95 4.77% 0.17 0.42% 5.12
Associate (Indian)
Cummins Generator
Technologies India Private
Limited
Balance as at March 31, 2024 - 643.13 8.87% 152.59 4.29% (0.76) 8.92% 151.84
Balance as at March 31, 2023 - 555.02 10.64% 130.65 -16.16% (0.58) 10.56% 130.07

357
Name of the entity in the Net assets i.e. total Share in profit and Share in other Share in total
Group assets minus total (loss) comprehensive income comprehensive income
liabilities
As % of ` Crore As % of ` Crore As % of ` Crore As % of ` Crore
consolidated consolidated consolidated consolidated
net assets profit and other total
loss comprehensive comprehensive
income income
Joint Ventures (Indian)*
Valvoline Cummins Private
Limited
Balance as at March 31, 2024 - 304.29 5.38% 92.51 3.77% (0.67) 5.40% 91.84
Balance as at March 31, 2023 - 282.10 6.36% 78.15 0.96% 0.03 6.36% 78.19
Cummins Research and

Technology India Private Limited
Balance as at March 31, 2024 - - 0.00% - 0.00% - 0.00% -
Balance as at March 31, 2023 - - -0.01% (0.10) 0.00% - -0.01% (0.10)
Adjustments arising out of

consolidation
March 31, 2024 6.26% 413.81 -11.34% (195.10) 0.01% - -11.47% (195.10)
March 31, 2023 6.34% 365.23 -9.39% (115.32) -0.16% (0.01) -9.37% (115.33)
Total for March 31, 2024 100.00% 6,612.32 100.00% 1,720.58 100.00% (17.67) 100.00% 1,702.91
Total for March 31, 2023 100.00% 5,758.24 100.00% 1,228.15 100.00% 3.59 100.00% 1,231.74
* The net assets of the entity have not been consolidated under the equity method

50 Relationship with struck off companies

During the year ended March 31, 2024, the Group has not entered into any transactions with the
companies whose names were struck off under applicable regulations.
51 Exceptional Items during the year ended March 31, 2024 comprise expenses on account of
voluntary retirement (VRP) and voluntary separation (VSP) programs aggregating to ` 1.70 Crore,
and during the year ended March 31, 2023 comprise expenses on account of Voluntary Retirement
Scheme (‘VRS’ or the ‘Scheme’) aggregating to ` 14.30 Crore.
Place: Dubai

Date: May 29, 2024 Date: May 29, 2024

Cummins India Limited Annual Report 23-24-0

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BANKERS :

State Bank of India

REGISTRAR & TRANSFER AGENT :

CUMMINS INDIA LIMITED

22 Cummins India Limited l

On Standalone basis:- On Consolidated basis:-

FINANCIAL SUMMARY STANDALONE CONSOLIDATED

2023-24 2022-23 2023-24 2022-23

3. BUSINESS UPDATE AND STATE OF COMPANY’ S AFFAIRS:

23 Annual Report 2023-2024 l

6. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES:

a) Cummins Sales & Serv ice Priv ate Limited ( CSSPL) :

b) Cummins Research and Technology India Priv ate Limited ( CRTIPL) :

c) Valv oline Cummins Priv ate Limited ( VCPL) :

24 Cummins India Limited l

7. CHANGE IN THE NATURE OF THE BUSINESS:

8. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:

25 Annual Report 2023-2024 l

11. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:

12. CONSERVATION OF ENERGY:

Overall energy conservation from existing as well as new solar PV installations:

Site Solar PV installation On-site solar energy

26 Cummins India Limited l

13. RESEARCH & DEVELOPMENT AND TECHNOLOGY ABSORPTION:

A. New Product Dev elopment: -

B. Benefits derived as a result of the above activities are: -

27 Annual Report 2023-2024 l

C. Future plans include: -

1. Developing local ‘fit-for-market’ solutions to meet export emission requirements.

E. Expenditure on Research & Dev elopment ( R&D) :-

The total expenditure on R D was as follows:-

Particulars 2023-24 2022-23

2 Cummins India Limited l

Particulars FY 2023-24 F 2022-23

* Equivalent value of various currencies

15. MANAGEMENT DISCUSSION & ANALYSIS AND CORPORATE GOVERNANCE

16. ANNUAL RETURN:

17. RISK MANAGEMENT:

29 Annual Report 2023-2024 l

18. INTERNAL FINANCIAL CONTROL:

19. VIGIL MECHANISM/ WHISTLE BLOWER POLICY:

30 Cummins India Limited l

21. DIRECTORS’ RESPONSIBILITY STATEMENT:

a) Changes in the composition of the Board of Directors:

Appointments and Re-appointments

31 Annual Report 2023-2024 l

32 Cummins India Limited l

b) Committees of the Board:

Audit and Compliance Committee;

c) Policy on Director’ s Appointment and Remuneration:

d) Board Performance Evaluation Mechanism:

e) Inter-se relationships between the Directors:

There are no relationships between the Directors inter-se.

33 Annual Report 2023-2024 l

The details of familiarization programmes imparted are available at:

g) Declarations from the Independent Directors:

23. NUMBER OF MEETINGS OF THE BOARD:

24. K EY MANAGERIAL PERSONNEL:

There were no changes in the ey Managerial Personnel(s) during the year.

25. PARTICULARS OF EMPLOYEES AND REMUENRATION: