Linde India : Annual Report 2022-23 (15 months period)

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* For 15 months period from 1 January 2022 to 31 March 2023

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* For 15 months period from 1 January 2022 to 31 March 2023

Sustainable Growth.

If 2021 was the year for rebound for Linde India from the Covid-19 aftermath, 2022 was the year where we continued working towards sustaining the momentum and taking important strides in every aspect of our business.

2022 marked the year for fostering growth for Linde India Limited. Growth, which is consistent, responsible, holistic and builds the foundation for long-term success for the Company.

Contents.

Corporate overview

• 01  Chairman's message
• 02  Sustainable Growth
• 04  About Linde
• 06  Profile of the Board of Directors & KMPs
• 08  Company information
• 09  CSR Snapshots
• 12  Financial performance (Standalone) - graphical representation

Statutory reports

• 13  Directors' Report and Management Discussion & Analysis
• 28  Annexures to Directors' Report
• 39  Business Responsibilty and Sustainability Report
• 60  Report on Corporate Governance

Standalone Financial Statements

• 82  Balance Sheet
• 83  Statement of Profit and Loss
• 84  Statement of changes in equity
• 85  Statement of Cash Flow
• 86  Notes to Standalone Financial Statements

138  Independent Auditor's Report on Standalone Financial Statements

Consolidated Financial Statements

148  Balance Sheet

149  Statement of Profit and Loss 150  Statement of changes in equity 151  Statement of Cash Flow

152  Notes to Consolidated Financial Statements

206  Independent Auditor's Report on Consolidated Financial Statements

212  Ten-year Financial Data

Annual Report 2022-23 1

Chairman's Message.

Dear Shareholders,

I am indeed honoured and delighted to communicate with you as the newly appointed Chairman of Linde India Ltd. As this marks my first correspondence to shareholders since assuming office, I would like to extend my heartfelt gratitude to each of you for your unwavering support and trust in our Company. Your commitment has been vital in driving our continued growth and success.

As we embark on a new financial year, it is essential to reflect on the global economic landscape in 2022 and the progress of the Indian economy in FY 2023-24.

The year 2022 witnessed a global economy grappling with various challenges. One significant factor was the ongoing conflict between Russia and Ukraine, which began in February 2022 and had far-reaching implications. Geopolitical tensions in several regions caused disruptions in supply chains, resulting in increased energy prices and inflation worldwide. These circumstances posed unique challenges to economies across the globe, and India was not exempt from their impact.

However, amidst these challenges, I am pleased to share that the Indian economy has made remarkable progress in FY 2023-24. We have seen significant improvement in the economic landscape, marked by increased investments across sectors. This positive trend reflects renewed confidence in the Indian market, paving the way for a promising future.

India's GDP grew impressively by 7.2% in FY 2023-24, surpassing market expectations and the RBI's estimate of 7%. This positions India among the world's fastest-growing major economies. The estimated real GDP for FY22-23, measured at constant prices, is approximately ₹160.06 lakh crore.

These figures testify to the resilience and potential of the Indian economy. Despite challenges, we have witnessed robust growth, showcasing the strength and dynamism of emerging India.

Review of Performance

During the year under review, Regional Director - Eastern Region, MCA, approved our application to change our Financial Year from a calendar year to a uniform FY. The current FY will be for 15 months, from 1 January 2022 to 31 March 2023. Going forward, our FY will be from 1 April to 31 March.

I am pleased to present the key highlights of our financial performance for the 15 months period ended on 31 March 2023. During this period, Linde India achieved remarkable results, demonstrating strong growth and financial resilience. Our total revenues from operations stood at Rs. 31,355 million, marking a substantial increase compared to the previous financial year's figure of Rs. 21,120 million, reflecting an impressive growth rate of 48.5% compared to FY 2021.

The growth was driven by both our Gases and Project Engineering divisions. Gases revenues witnessed a significant surge, growing by 33.3% from Rs. 16,611 million to Rs. 22,144 million. This growth was attributed to higher demand for merchant liquid, increased

gas consumption by the steel sector, and enhanced business in helium and special products. Our Project Engineering Division delivered exceptional performance, with revenues doubling from Rs. 4,509 million to Rs. 9,211 million during the 15 months period.

In terms of profitability, we achieved earnings before interest, depreciation and amortization (EBITDA) of Rs. 8,729 million, indicating a growth rate of 45.2% compared to FY 2021's figure of Rs. 6,013 million. Our focus on operational efficiency and effective cost management contributed to this positive outcome. Profit after tax (PAT) for the period under review amounted to Rs. 5,358 million, slightly surpassing the previous year's figure of Rs. 5,139 million. It is worth mentioning

that the PAT for FY 2021 included a pre-tax exceptional profit of Rs. 2,944 million from the sale of land in Kolkata.

The strong financial performance of Linde India during this period underscores our commitment to sustainable growth and delivering value to our shareholders. We are confident that our robust order book, particularly in the steel,

refineries and electronics sectors, positions us well for future success.

Environment Responsibility

Linde India is committed to environmental sustainability and has made significant progress in various areas. We have implemented energy intensity reduction initiatives, resulting in a remarkable 9% reduction in energy intensity compared to the previous year. Additionally, we continue to monitor and reduce water intensity, achieving a commendable 12% reduction in water consumption intensity.

In terms of greenhouse gas (GHG) emissions, we have undertaken several initiatives aligned with our global decarbonisation target. This year, we achieved a notable 15% reduction in scope 1 and 2 GHG intensity compared to the previous year.

Waste management practices at all Linde India sites comply with state and central pollution control norms. We segregate and store hazardous and non-hazardous waste separately and dispose them off through pollution control-approved recyclers.

The Company recently made a strategic investment in Avaada MHYavat Pvt. Ltd., FP Solar Shakti Pvt. Ltd. and FPEL Surya Pvt. Ltd. The primary objective of these investments is to gain access to renewable power procurement under a captive mechanism. By utilising this mechanism, we aim to secure renewable power at lower tariffs, leading to significant cost savings for our operations. These investments align with our commitment to sustainable practices and optimising our cost structure for the benefit of our shareholders.

In conclusion, I would like to express my sincere gratitude for your continued support and trust in Linde India. As we navigate the uncertainties of the global economy, we remain steadfast in our commitment to creating long-term value for our shareholders. Together we will embrace the opportunities that lie ahead and forge a path of growth, resilience and success.

Warm regards,

M J Devine

Chairman

15 June 2023

2 Linde India Limited

Sustainable Growth.

2022 marked the year for fostering growth for Linde India Limited - growth, which is consistent, responsible, holistic and builds the foundation for long-term success for the Company.

If 2021 was the year for rebound for Linde India from the Covid-19 aftermath, 2022 was the year where we continued working towards sustaining the momentum and taking important strides in every aspect of our business. It was also the year we have taken some new initiatives, hitherto unseen in the Linde world. We also continued our focus on our reducing our carbon footprint and creating a positive impact through our social outreach programs.

6.8%

YoY increase in cash generated from operations

Cash generated from operations at Rs.6,291.84 million during

FY 2022-23 was 6.8% higher than Rs. 5,888.78 million generated during FY 2021.

Financial

During the 15 months period ending 31 March 2023, the company achieved 48.5% higher revenue at Rs. 31,355.20 million compared to Rs. 21,119.58 million a year ago. These numbers are a testimony to the solid growth focus of your Company, staying focused all along.

The company remained debt-free at the end of FY 2022-23 and continues to have a strong balance sheet.

86.0%

YoY increase in Earnings per share

Earnings per share (before exceptional item) improved from Rs. 33.78 for FY 2021 to Rs. 62.82 for FY 2022-23.

48.5%

YOY increase in revenue

Revenue from Operations in FY 2022-23 at Rs.31,355.20. million was 48.5% higher as compared to Rs.21,119.58 million in FY 2021.

45.2%

YoY increase in EBITDA

EBITDA for FY 2022-23 at Rs.8729.41 million was 45.2% higher as compared to Rs.6,012.51 million in FY 2021, driven primarily by higher volumes, pricing actions, productivity benefits, etc.

21,120	31,355		8,729	5,889	6,292		62.82
14,711		4,075	6,013	3,390		17.23	33.78
Revenue from		EBITDA	Cash generated		EPS
opertaions	(pre-exceptional)	from Operations	(Pre-exceptional)
		2020	2021	Mar'23

Note: All figures in Rs. million except EPS

Annual Report 2022-23 3

Operational Initiatives

First all-women operated packaged gases facility at Trichy

Linde India Limited inaugurated its first-ever women operated Packaged Gas Plant in Trichy on 6th July 2022. This was a pioneering initiative by Linde Plc and the first such plant in the oil and gas industry in India. Present at the launch were Mr. John Panikar, Executive Vice President, Asia Pacific, Linde, Mr. Abhijit Banerjee, MD - Linde India Limited and other dignitaries.

New Air Separation Units

Construction for all the new ASUs - the 250 tonnes per day merchant Air Separation Unit at Dahej, Gujarat being built at a capex of Rs.1,386 million, the 264 tonnes per day merchant Air Separation Unit near Ludhiana, Punjab being built at a capex of Rs.1,521 million are underway and are expected to get commercialized within FY 2023. Your Company also won orders for setting up a 900 tonnes per day ASU at ESL Steel Limited, Bokaro and another at 1450 tonnes per day for Jindal Stainless Limited, Kalinganagar. These investments are expected to further

strengthen our position in East India. The Company is also setting up a high purity Nitrous Oxide facility at its existing Hyderabad plant.

Project Engineering Division

A new fabrication shop is being constructed in Jamshedpur for PED, which is expected to be operational during the current FY 2023-24. The order intake for FY 2022-23 was Rs. 12,140 million, including an export order for the supply of a cold box for an N2 liquefier of 300 TPD capacity at MIMS Florida USA for LG. The Division also commissioned several projects, including compressed Air and Nitrogen plant packages.

Focus on reducing carbon footprint

The drive for the improvement in efficiency continued in 2022 with several specific power reduction projects being executed in the sites resulting in savings of more than 850 kW. Loss reduction projects were also successfully undertaken at some sites.

Linde India continued to build on the momentum of growth generated in FY 2021, while retaining focus on safety and integrity. We are confident about scaling new heights of success and treading on these paths of sustainable growth.