2.15 Provisions, Contingent Liabilities and Contingent
Assets
Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation. The expense relating to a
provision is presented in the statement of profit or loss
net of any reimbursement. 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 recognized as a finance cost.
A contingent liability is disclosed when
(a) a possible obligation that arises from past events
and whose existence 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
(b) a present obligation that arises from past events
but is not recognized because:
(i) it is not probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation; or
(ii) the amount of the obligation cannot be
measured with sufficient reliability.
Contingent liabilities are not recognized but are
disclosed in notes.
Contingent assets not recognized in the financial
statements.
2.16 Dividends
Dividend to equity shareholders is recognized as
a liability in the period in which the dividends are
approved by the equity shareholders.
Interim dividends that are declared by the Board of
Directors without the need for equity shareholders'
approvals are recognized as a liability and deducted
from shareholders' equity in the year in which the
dividends are declared by the Board of directors.
2.17 Earnings Per Share
The Company presents basic and diluted earnings per
share ("EPS") data for its equity shares. Basic EPS is
calculated by dividing the profit or loss attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the year. Diluted
EPS is determined by adjusting the profit or loss
attributable to equity shareholders and the weighted
average number of equity shares outstanding for the
effects of all dilutive potential equity shares. Dilutive
potential equity shares are deemed converted as of
the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined
independently for each period presented.
The Weighted average number of equity shares
outstanding during the period is adjusted for events
of bonus issue, buy back of shares, bonus element in
a rights issue to existing shareholders, share split and
reverse share split (consolidation of shares).
2.18 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.
Initial recognition
The Company recognizes financial assets and financial
liabilities when it becomes a party to the contractual
provisions of the instrument. All financial assets and
liabilities except trade receivables are recognized at
fair value on initial recognition. Transaction costs that
are directly attributable to the acquisition or issue of
financial assets and financial liabilities that are not
at fair value through profit or loss are added to the
fair value on initial recognition. Trade receivables are
initially recognised at their transaction price.
Subsequent measurement
For the purpose of subsequent measurement, financial
assets and financial liabilities are classified in the
following broad categories:
A. Non-derivative financial instruments
(i) Debt instrument carried at amortized cost
A debt instrument is subsequently measured
at amortized cost if it is held within a business
model whose objective is to hold the asset in
order to collect contractual cash flows and
the contractual terms of the financial asset
give rise on specified dates to cash flows
that are solely payments of principal and
interest on the principal amount outstanding.
(ii) Financial assets at fair value through other
comprehensive income
A financial asset is subsequently measured
at fair value through other comprehensive
income if it 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.
(iii) Financial assets at fair value through profit
or loss
A financial asset which is not classified in
any of the above categories are subsequently
fair valued through profit or loss.
(iv) Financial liabilities
Financial liabilities are subsequently carried
at amortized cost using the effective interest
method. For trade and other payables
maturing within one year from the balance
sheet date, the carrying amounts approximate
fair value due to the short maturity of these
instruments.
B. Derivative financial instruments
(i) Initial recognition and subsequent
measurement
The Company uses derivative financial
instruments, such as forward currency
contracts and interest rate swaps to hedge
its foreign currency risks and interest rate
risks respectively.
Such derivative financial instruments are
initially recognised at fair value on the date
on which a derivative contract is entered into
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.
The change in the fair value of the hedged
item attributable to the risk hedged is
recorded as part of the carrying value of the
hedged item and is also recognised in the
statement of profit and loss.
For the purpose of hedge accounting, hedges
are classified as Fair value hedges when
hedging the exposure to changes in the
fair value of a recognised asset or liability
or an unrecognised firm commitment.
When an unrecognised firm commitment is
designated as a hedged item, the subsequent
cumulative change in the fair value of the
firm commitment attributable to the hedged
risk is recognised as an asset or liability with
a corresponding gain or loss recognised in
profit and loss.
For fair value hedges relating to items carried
at amortised cost, any adjustment to carrying
value is amortised through profit or loss
over the remaining term of the hedge using
the Effective Interest Rate. Effective interest
rate amortisation may begin as soon as an
adjustment exists and no later than when
the hedged item ceases to be adjusted for
changes in its fair value attributable to the
risk being hedged. The Company is following
fair value hedges method as the same is
applicable to the kind of transactions being
carried out by the Company.
If the hedged item is derecognised, the
unamortised fair value is recognised
immediately in profit or loss.
Derecognition
A financial asset (or, where applicable, a part
of a financial asset) is primarily derecognized
when:
(i) The contractual right to receive cash
flows from the assets have expired, or
(ii) The Company has transferred its right
to receive cash flow from the financial
assets and substantially all the risks
and rewards of ownership of the asset
to another party.
Reclassification of financial assets
The Company determines classification
of financial assets and liabilities
on initial recognition. After initial
recognition, no reclassification is made
for financial assets which are equity
instruments and financial liabilities.
2.19 Cash and cash equivalents
Cash and cash equivalents in the statement of financial
position comprise cash at banks and on hand and
short-term deposits with a maturity of three months
or less, which are subject to an insignificant risk of
changes in value. Cash and cash equivalents consist
of balances with banks which are unrestricted for
withdrawal and usage.
Bank overdrafts are shown within borrowings in current
liabilities in the Balance Sheet.
The statement of cash flows is prepared in accordance
with the Indian Accounting Standard (Ind AS) - 7
"Statement of Cash flows" using the indirect method
for operating activities.
2.20 Investments in subsidiaries
Investments in subsidiaries are carried at cost less
accumulated impairment losses in the Company's
balance sheet. On disposal of such investments, the
difference between disposal proceeds and the carrying
amounts of the investments are recognized in the
Statement of profit and loss.
2.21 Impairment of Financial Assets
The Company recognizes loss allowances using the
expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or
loss. Loss allowance for trade receivables with no
significant financing component is measured at an
amount equal to lifetime ECL. The Company follows
'simplified approach' for recognition of impairment
allowance. The application of simplified approach does
not require the Company to track changes in credit risk.
Rather, it recognizes impairment allowance based on
lifetime ECLs at each reporting date, right from its initial
recognition.
For all other financial assets, expected credit losses are
measured at an amount equal to the 12-month ECL,
unless there has been a significant increase in credit
risk from initial recognition in which case those are
measured at lifetime ECL.
The amount of expected credit losses (or reversal)
that is required to adjust the loss allowance at the
reporting date is recognized as an impairment gain or
loss in profit or loss. ECL is presented as an allowance,
i.e. as an integral part of the measurement of those
assets in the balance sheet. The allowance reduces
the net carrying amount. Until the asset meets write¬
off criteria, the Company does not reduce impairment
allowance from the gross carrying amount.
2.22 Trade receivables
Trade receivables are amounts due from customers for
goods sold or services performed in the ordinary course
of business. Trade receivables are initially recognised
at their transaction price. The Company holds the trade
receivables with the objective to collect the contractual
cash flows less loss allowance.
2.23 Government Grants
Government grants are recognized 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
recognized as income on a systematic basis over the
periods that the related costs, for which it is intended
to compensate, are expensed. It is shown as net of
related expense except where the related expense
is not directly identifiable. In such cases, the grant is
presented in the 'Other Income'.
Export incentives are recognised as income when the
right to receive credit as per the terms of the scheme
is established in respect of the exports made and
where there is no significant uncertainty regarding the
ultimate collection of the relevant export proceeds.
The company also avails incentive in the form of nil
import duty on import of specified capital goods under
Government's EPCG scheme. The company anticipates
no challenge in complying with the conditions attached
to the said scheme in normal course of business and
thus capitalized goods without considering value of
import duty saved.
2.24 Functional and Presentation Currency
The standalone financial statements are presented
in Indian Rupees (INR), which is also the Company's
functional currency. All amounts have been rounded-
off to the nearest lakhs and two decimals thereof,
unless otherwise indicated.
2.25 Foreign currenciesi. Initial recognition
Foreign currency transactions are recorded in
the reporting currency, by applying to the foreign
currency amount the exchange rate between the
reporting currency and the foreign currency at the
date of the transaction.
ii. Conversion
Foreign currency monetary items are retranslated
using the exchange rate prevailing at the reporting
date.
iii. Exchange differences
The Company accounts for exchange differences
arising on translation/ settlement of foreign
currency monetary items by recognizing the
exchange differences as income or as expenses in
the period in which they arise.
Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial
transactions.
2.26 Research and Development Expenses
Research expenditure is charged to the standalone
statement of profit and loss. Development costs of
products are also charged to the standalone statement
of profit and loss unless a product's technical feasibility
has been established, in which case such expenditure
is capitalised. Tangible assets used in research and
development are capitalised.
2.27 Fair Value Measurement
The Company measures financial instruments at fair
value 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:
- In the principal market for the asset or liability or
- 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,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured
or disclosed in the standalone financial statements are
categorized within the fair value hierarchy, described
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
Level 1: Quoted (unadjusted) market prices in active
markets for identical assets or liabilities
Level 2: Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is directly or indirectly observable
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 & liabilities on the
basis of the nature, characteristics and the risks of the
asset or liability and the level of the fair value hierarchy
as explained above.
2.28 Recent accounting pronouncements
Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time.
In May 2025, MCA notified amendments to Ind AS 21
- The Effects of Changes in Foreign Exchange Rates,
applicable w.e.f. April 1, 2025. The Company has
reviewed the amendment and based on its evaluation
has determined that it does not have any impact in its
financial statements.
In August 2025, MCA notified the following
amendments to:
a. Ind AS 1, Presentation of Financial Statements,
applicable w.e.f. April 1, 2025 - The amendment
relates to classification of liabilities as current
or non-current and non-current liabilities with
covenants. In the context of classifying a liability
as current, it removes the requirement of existence
of a right to defer settlement for at least 12 months
after the reporting date and instead requires
that the said right should exist on the reporting
date and have substance. The amendment also
introduces guidance on classification of liabilities
with covenants. The Company has no impact of
these amendments in its classification criteria of
current and non-current liabilities.
b. Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments: Disclosures, applicable
w.e.f. April 1, 2025 - The amendment in Ind AS 7
requires to inform users of financial statements
of the existence of supplier finance arrangements
and explain the nature of the arrangements,
the carrying amount of liabilities and the range
of payment due dates. Ind AS 107 has been
amended to add supplier finance arrangements as
a factor that may cause concentration of liquidity
risk. The Company has reviewed the amendment
and based on its evaluation has determined
that it does not have any impact in its financial
statements.
c. Ind AS 12, International Tax Reform - Pillar
Two Model Rules applicable immediately - The
amendments provide a temporary mandatory
relief from deferred tax accounting for top-up tax
and disclose that they have applied the relief. This
relief is immediate and applies retrospectively.
The Company has reviewed the amendment
and based on its evaluation has determined
that it does not have any impact in its financial
statements.
Note 20.1: Items of other comprehensive income arising from remeasurement of defined benefit obligation net of income
tax, which is directly recognised in retained earning.
Note 20.2 : Nature and purpose of reserves
Capital Reserve
400 equity shares of ' 1/- each are yet to be allotted by way of bonus shares on receipt of fractional certificates, value of
which has been shown under capital reserve.
Capital Redemption Reserve
Capital redemption reserve of ' 1.58 lakhs was created against the redemption of cumulative preference shares in financial
year 1991-92 and ' 1.66 lakhs against the buy back of equity shares in financial year 2013-14.
Securities Premium
Securities premium represents the premium on issue of equity shares. The reserve is utilised in accordance with the
provision of the Companies Act, 2013.
General Reserve
This represents appropriation of profit after tax by the company.
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a
specified percentage in accordance with applicable regulations. Consequent to introduction of the Companies Act 2013, the
requirement to mandatory transfer a specified percentage of the net profit to general reserve has been withdrawn.
Note: 26.1 Secured by hypothecation of inventories and by a charge on book debts and other assets of the Company, in
favor of working capital consortium bankers on pari passu basis.
Note: 26.2 Repayable on demand. Rates of interest for WCDL varied from 7.30% to 8.20% during the current year (previous
year 7.30% to 8.25%).
Note: 26.3 Represents payments to MSME creditors through Receivable Exchange of India Ltd. (RXIL) and MYND Solutions
portal, payable to RXIL and MYND Solutions on due dates.
Note 27.1 : Trade payables to micro and small enterprises
The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 ("the
Act") has been determined to the extent such parties have been identified by the Company, on the basis of information
and records available with the Company. Disclosure in respect of amount remaining unpaid and interest due on delayed
payment has been determined only in respect of payments made after the receipt of information, with regards to filing of
memorandum, from the respective suppliers. Disclosure as required under section 22 of the Act, is as under:
Note:
The Company has extended loans to its subsidiary, Isgec Investment Pte. Ltd. (IIPL) out of borrowings and internal accruals.
As a result:-
a) Other income includes interest earned from these loans amounting to ' 6,673 lakhs (previous year ' 1,543 lakhs);
b) Other income also includes income from foreign exchange fluctuations on these loans of ' 11,524 lakhs (previous year
loss of ' 57 lakhs);
c) Finance cost includes interest on related borrowings of ' 3,853 lakhs (previous year ' 83 lakhs);
d) Other expenses includes expected credit loss of ' 6,361 lakhs (previous year ' 2,016 lakhs) on these loans.
(i) Defined Benefits Plan : Provident fund
The Company started, from the year ended on March 31, 2021, treating the contribution to the recognised provident
fund trust for its employees which is operated by the Company, as a defined benefit plan instead of defined contribution
plan being followed hitherto. The Company makes monthly contributions to provident fund managed by trust for
qualifying employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll
costs to fund the benefits. As per Ind AS 19 on "Employee Benefits", employer established provident fund trusts are
treated as defined benefit plans, since the Company is obliged to meet interest shortfall, if any, with respect to covered
employees. The total liability of ' Nil (March 31,2025: ' Nil) as worked out by the company has been allocated to the
entity based on the corpus value of the entity as at March 31,2026.
The Company has recognised, in the statement of profit and loss, expenses of ' 2,239.35 lakhs for provident fund
during the year ended March 31,2026 (March 31,2025: ' 1,969.27 lakhs).
(k) New labour code
The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four
labour codes. The Codes have been made effective from November 21, 2025. The New Labour Codes have resulted
in estimated one time increase in provision for employee benefits of the Company of ' 1,403.25 lakhs on the basis of
actuarial valuation and consistent with the guidelines provided by the Institute of Chartered Accountants of India and
the same has been recognized as an exceptional item, in the current reporting period. Once Central / State Rules are
notified by the Government on all aspects of the Codes, the Company will re-evaluate impact, if any, on the measurement
of employee benefits and would provide appropriate accounting treatment.
b) Other Commitments
The Company has other commitments, for purchase/ sales orders which are issued after considering requirements
as per operating cycle for purchase/ sale of goods, employee benefits including union agreements in normal course
of business. The Company does not have any other long term commitments or material non-cancellable contractual
commitments, which may have a material impact on the financial statements.
Note 46 : Segment Information (Ind AS 108)
The Chief Operating Decision Maker (CODM) of the Company is monitoring the performance of the Company in the following
Segments:-
a) Manufacturing of machinery and equipment segment
b) Industrial Projects
Composition of the segments consists of:
Manufacturing of machinery & equipment segment comprising manufacture of process plant equipments, presses,
castings, boiler tubes & panels and containers.
Industrial Projects Segment consists of projects and turnkey solutions for sugar plants, distilleries, power plants, boilers,
air pollution control equipments, buildings and factories.
The Segments reported are as per Ind AS 108 "Operating Segments". The identification of Operating Segments is consistent
with performance assessment by the Management.
Trade receivables are non-interest bearing and are generally on terms of 0 - 60 days. ' 12,279.67 lakhs was recognised
as provision for expected credit losses on trade receivables. (previous year ' 10,193.52 lakhs)
Trade receivables and unbilled revenue are presented net of impairment in the Balance sheet.
The Company classifies the right to consideration in exchange for deliverables as either a receivable or as contract
asset.
A receivables is right to consideration that is unconditional upon passage of time.
Revenue for ongoing services at the reporting date yet to be invoiced is recorded as unbilled revenue (contact asset).
Advance from customers and unearned revenue are termed as contract liabilities.
F. Terms and Conditions
The transactions with the related parties are made on term equivalent to those that prevail in arm's length transactions.
The assessment is under taken each financial year through examining the financial position of the related party and in
the market in which the related party operates. Outstanding balances are unsecured and the settlement will occur in
cash.
This section explains the judgments and estimates made in determining the fair values of the financial instruments
that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are
disclosed in financial statements. To provide an indication about the reliability of inputs used in determining fair
values, the group has classified its financial instruments into three levels prescribed under the accounting standards.
The fair value of the financial assets and liabilities are 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 following table provides the fair value measurement hierarchy of the Company's asset and liabilities, grouped into
Level 1 to Level 3 as described below :-
Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable.
Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
The Company maintains policies and procedures to value financial assets or financial liabilities using the best and
most relevant data available. The fair values of the financial assets and liabilities are included at the amount 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.
Specific valuation technique used to value financial instrument includes:
> the use of quoted market prices or dealer quotes for similar financial instruments.
> the fair value of financial assets and liabilities at amortised cost is determined using discounted cash flow
analysis
The following method and assumptions are used to estimate fair values:
The carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, short term
deposits etc. are considered to be their fair value, due to their short term nature.
Long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters
such as interest rates, specific country risk factors, credit risk and other risk characteristics. For borrowings fair value
is determined by using the effective interest rate method. Risk of non-performance for the company is considered to
be insignificant in valuation.
Financial assets and liabilities measured at fair value and the carrying amount is the fair value.
Note 50 : FINANCIAL RISK MANAGEMENT
The Company's principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables. The
main purpose of these financial liabilities is to manage finances for the Company's operations. The Company's principal
financial assets include investments in marketable securities and unlisted companies, loans , trade and other receivables
and cash and short-term deposits that arise directly from its operations.
The Company's activities are exposed to Market risk, Credit risk and Liquidity risk.
I. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other
price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans
and borrowings, deposits, investments, and derivative financial instruments.
The sensitivity analyses in the following sections relate to the position as at March 31,2026 and March 31,2025.
(a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. In order to optimize the Company's position with regard to interest income
and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest
rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its
total portfolio .
(i) The exposure of company borrowings to interest rate changes at the end of reporting period are as follows:
(b) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company operates internationally and the Company has foreign currency
trade payables and receivables and is therefore, exposed to foreign exchange risk.
The Company hedges its exposure to fluctuations by using foreign currency forwards contracts on the basis of risk
management policy approved by the Board.
The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the
end of the reporting period as follows:
* This amount is recoverable against refund of Bank Guarantee invoked by a customer, Cavite Biofuel Producers Inc
(CBPI). Subsequently, CBPI has been acquired by one of our subsidiary companies on 3rd October 2019.
Foreign currency sensitivity
1% increase or decrease in foreign exchange rates will have the following impact on profit before tax and other
comprehensive income:
The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment.
(c) Price Risk
The Company's exposure to price risk arises from the investment held by the Company. To manage its price risk arising
from investments in marketable securities, the Company diversifies its portfolio and is done in accordance with the
Company policy. The Company's major investments are actively traded in markets and are held for short period of time.
Therefore no sensitivity is provided for the same.
II. Credit risk
Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in
financial loss to the company. To manage this, the Company periodically assesses the financial reliability of customers,
taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing
of accounts receivable.
The Company considers the probability of default upon initial recognition of assets and whether there has been a
significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is
significant increase in credit risk, it considers reasonable and supportive forward looking information such as:
(i) Actual or expected significant adverse changes in business.
(ii) Actual or expected significant changes in the operating results of the counterparty.
(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to
meet its obligation
(iv) Significant increase in credit risk and other financial instruments of the same counterparty
(v) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees
or credit enhancements
The Company's major exposure is from trade receivables, which are unsecured and contractually due from external
customers. Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with
banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.
Investments primarily include investment in liquid mutual fund units, quoted securities and certificates of deposit
which are funds deposited at a bank for a specified time period. Other loans are provided mainly to the subsidiaries
and to employees which have very minimal risk because of the nature of such loans.
Expected credit loss for trade receivable on simplified approach :
The ageing analysis of the trade receivables (gross of provision) has been considered from the date the invoice falls
due:
The Company uses a provision matrix to determine impairment loss on portfolio of its financial and non-financial
assets. The provision matrix is based on its historically observed default data over the expected life of the financial
and non-financial assets and is adjusted for forward- looking estimates. At every reporting date, the historical observed
default rates are updated and changes in forward-looking estimates are analysed by an independent registered valuer
and are provided for.
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligation on time or at a
reasonable price. The Company's objective is to at all times maintain optimum levels of liquidity to meet its cash
and collateral requirements. The Company's treasury department is responsible for liquidity, funding as well as
settlement management. In addition, processes and policies related to such risk are overseen by senior management.
Management monitors the Company's net liquidity position through rolling, forecast on the basis of expected cash
flows.
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting
date based on contractual undiscounted payments:
Notes-
(i) Debt is defined as long-term and short-term borrowings including current maturities (excluding derivatives) as
described in note 21 and 26.
(ii) Total equity (as shown in balance sheet) includes issued capital and other equity.
(b) Loan Covenants
In order to achieve this overall objective, the company's capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements. Breaches in meeting the financial covenants would permit the bank to call loans and borrowings or
charge some penal interest. There have been no breaches in the financial covenants of any interest-bearing loans and
borrowing in the current year and the previous years.
No changes were made in the objectives, policies or processes for managing capital during the current year and
previous years.
Note 54 :Other Statutory Information
(i) The Company neither have any Benami property, nor any proceeding has been initiated or pending against the Company
for holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar Of Companies
(ROC) beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds (except the cases mentioned in Note-52) in any other
person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961).
(viii) There is no Immovable Properties Title deeds of those are not held in the name of the Company.
(ix) The Company has no investment property and accordingly its fair valuation is not required at year end.
(x) No revaluation of Property, Plant & Equipment (Including ROU) & Intangible assets has been carried out during the year.
(xi) The Company has not granted loans or advances in the nature of loans to promoters, directors, KMPs and the related
parties, either severally or jointly with any other person, that are :
a. repayable on demand; or
b. without specifying any terms or period of repayment.
(xii) The Company has not defaulted on loan from any bank or financial Institution or other lender
(xiii) Compliance with approved Scheme(s) on the basis of security of current assets - Not Applicable
(xiv) The Company has borrowings from banks, secured by hypothecation of inventories and by a charge on book debts and
other assets of the company, and quarterly returns or statements of current assets filed by the company with banks
are in agreement with the books of accounts without any material discrepancies.
(xv) The Company is not declared wilful defaulter by any bank or financial institution or other lender.
(xvi) The Company has complied with number of layers prescribed under clause (87) of Section 2 of the Act read with
Companies (restriction on number of layers) Rules, 2017.
(xvii) The Company has used the borrowings from bank for specific purpose for which it was taken at the balance sheet
date.
Note 56 :
Contribution to political parties during the financial year 2025-26 is ' Nil (previous year: ' Nil)
Note 57 :
Previous year figures have been regrouped/reclassified wherever necessary to make them comparable as per requirements
of amended Schedule III.
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