Gains and losses on disposals are determined by comparing the sale proceeds with the carrying amount
and are recognised within operating profit in the Income statement.
c) Financial Instruments
Financial Assets
The Company classifies its financial assets in the following categories:
i) Financial assets at amortised cost - Assets that are held for collection of contractual cash flows where
those cash flows represent solely payments of principal and interest are measured at amortised cost.
They are presented as current assets, except for those maturing later than 12 months after the reporting
date which are presented as non-current assets. Financial assets are measured initially at fair value
which usually represents cost plus transaction costs and subsequently carried at amortised cost using
the effective interest method, less any impairment loss if any.
Financial assets at amortised cost are represented by trade receivables, security and other deposits, cash
and cash equivalent, employee and other advances.
ii) Equity investments - Investment in subsidiaries/associates are stated at cost. All other equity investments
are measured at fair value, except for certain unquoted equity investments which are carried at cost
where the fair value of these investments cannot be reliably measured.
iii) Financial Assets at Fair Value through Other Comprehensive Income (FVTOCI) - For investments which
are not held for trading purposes and where the company has exercised the option to classify the
investment as at FVTOCI, all fair value changes on the investment are recognized in OCI. The accumulated
gains or losses on such investments are not recycled to the Statement of Profit and Loss even on sale of
such investment.
iv) Financial assets at Fair Value through Profit and loss (FVTPL) - Financial assets other than the equity
investments and investment classified as FVTOCI are measured at FVTPL. These include surplus funds
invested in mutual funds etc.
v) Impairment of financial assets - The Company assesses at each balance sheet date whether there is
objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a
group of financial assets is impaired and impairment losses are incurred only if there is objective evidence
of impairment as a result of one or more events that occurred after the initial recognition of the asset
(a 'loss event') and that loss event (or events) has an impact on the estimated future cash flows of the
financial asset or group of financial assets that can be reliably estimated.
Financial liabilities
Initial recognition and measurement
Financial liabilities are measured at amortised cost using effective interest method. For trade and other
payable maturing within one year from the Balance Sheet date, the carrying value approximates fair value
due to short maturity.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is a
legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or
realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent
62| ANNUAL REPORT 2024-25
d) Provisions
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 economic benefits will be required to settle the obligation, and a
reliable estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation.
These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. If the
effect of the time value of money is material, provisions are discounted. The discount rate used to determine
the present value is a pre- tax rate that reflects current market assessments of the time value of money and
the risks specific to the liability. The increase in the provision due to the passage of time is recognised as
interest expense.
e) Income Tax
a) Current Income Tax
Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance
with local laws of various jurisdiction where the Company operates.
b) Deferred Tax:
Deferred tax is provided using the balance sheet approach on differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available
against which the deductible differences, and the carry forward of unused tax credits and unused tax
losses can be utilised.
The tax rates and tax laws used to compute the tax are those that are enacted or substantively enacted
at the reporting date.
Current and Deferred Tax are recognised in the Statement of Profit and Loss except to items recognised
directly in Other Comprehensive income or equity, in which case the deferred tax is recognised in Other
Comprehensive Income and equity respectively.
f) Leases
Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted
with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company
makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether
it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating
the lease term, the Company considers factors such as any significant leasehold improvements undertaken
over the lease term, costs relating to the termination of the lease and the importance of the underlying
asset to Company's operations taking into account the location of the underlying asset and the availability of
suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the
current economic circumstances. After considering current and future economic conditions, the Company has
concluded that no changes are required to lease period relating to the existing lease contracts.
g) Cash flow Statement
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipt or
payments and item of income or expense associated with investing or financing cash-flows. The cash flow
from operating, investing and financing activities of the Company are segregated.
h) Earnings per share
The Company presents Basic and Diluted earnings per share data for its equity shares. Basic and Diluted
earnings per share is calculated by dividing the profit or loss attributable to equity shareholders of the
Company by the weighted average number of equity shares outstanding during the year.
i) Contingent Liabilities
Contingent liabilities exist when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly
within the control of the Company, or a present obligation that arises from past events where it is either not
probable that an outflow of resources will be required or the amount cannot be reliably estimated. Contingent
liabilities are appropriately disclosed unless the possibility of an outflow of resources embodying economic
benefits is remote.
j) Borrowing Costs
Borrowing costs directly relating to the acquisition, construction or production of a qualifying capital project
under construction are capitalised and added to the project cost during construction until such time that the
assets are substantially ready for their intended use i.e. when they are capable of commercial production.
Where funds are borrowed specifically to finance a project, the amount capitalised represents the actual
borrowing costs incurred. Where surplus funds are available out of money borrowed specifically to finance a
project, the income generated from such current investments is deducted from the total capitalized borrowing
cost. Where the funds used to finance a project form part of general borrowings, the amount capitalised is
calculated using a weighted average of rates applicable to relevant general borrowings of the company during
the year. Capitalisation of borrowing costs is suspended and charged to profit and loss during the extended
periods when the active development on the qualifying assets is interrupted.
k) Useful economic lives and impairment of other assets
Property, plant and equipment other than mining rights are depreciated over their useful economic lives.
Management reviews the useful economic lives at least once a year and any changes could affect the
depreciation rates prospectively and hence the asset carrying values. The Company also reviews its property,
plant and equipment, for possible impairment if there are events or changes in circumstances that indicate
that carrying values of the assets may not be recoverable. In assessing the property, plant and equipment
for impairment, factors leading to significant reduction in profits such as changes in prices, the Company's
business plans and changes in regulatory environment are taken into consideration.
The carrying value of the assets of a cash generating unit (CGU) is compared with the recoverable amount of
those assets, that is, the higher of fair value less costs of disposal and value in use. Recoverable value is based
on the management estimates of prices, market demand and supply, economic and regulatory climates, long¬
term plan, discount rates and other factors. Any subsequent changes to cash flow due to changes in the above
mentioned factors could impact the carrying value of the assets.
19 Fair Value measurement
Financial Instrument by category and hierarchy
The fair value of 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 methods and assumptions were used to estimate the fair values:
The carrying amount of trade receivable, trade payable, capital creditors, loans, cash and cash equivalents and other bank
balances as at 31st March, 2025 and 31st March, 2024 are considered to be the same as their fair values, due to their short
term nature. Difference between carrying amounts and fair values of other financial assets, other financial liabilities and
short term borrowings subsequently measured at amortised cost is not significant in each of the year presented.
Financial Instruments with fixed and variable interest rates are evaluated by the company based on parameters such as
interest rate and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to
account for the expected losses of these receivables.
Fair value hierarchy
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either
observable or unobservable and consists of following:
Level 1 - category includes financial assets and liabilities, that are measured in whole or in significant part by reference to
published quotes in an active market.
Level 2 - category includes financial assets and liabilities measured using a valuation technique based on assumptions that
are supported by prices from observable current market transactions. These include assets and liabilities for which pricing is
obtained via pricing services, but where prices have not been determined in an active market, financial assets with fair
values based on broker quotes and assets that are valued using the Company's own valuation models whereby the material
assumptions are market observable. The majority of Company's over-the counter derivatives and several other instruments
not traded in active markets fall within this category.
Level 3 - category includes financial assets and liabilities measured using valuation techniques based on non market
observable inputs. This means that fair values are determined in whole or in part using a valuation model based on
assumptions that are neither supported by prices from observable current market transactions in the same instrument nor
are they based on available market data. However, the fair value measurement objective remains the same, that is, to
estimate an exit price from the perspective of the Company. The main asset classes in this category are unlisted equity
investments as well as unlisted funds.
20 Financial Risk Management
Financial risk management objectives and policies
The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company's
primary focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its
financial performance.
The Company's financial liabilities comprise of borrowings, trade payable and other liabilities to manage its operation and
financial assets includes trade receivables, security deposits, loans and advances, etc. arises from its operation.
The Company has constituted a Risk Management Committee consisting of majority of directors and senior managerial
personnel. The Company has instituted Business Risk Management framework to identify, evaluate business risks and
opportunities. This framework seeks to create transparency, minimise adverse impact on the business objectives and
enhance Company's competitive advantage. The business risk framework defines the risk management approach across the
enterprise at various levels including documentation and reporting. The framework has different risk models which help in
identifying risk trend, exposure and potential impact analysis at a Company level.
The Audit Committee of the Board reviews the risk management framework at periodic intervals.
Market risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in
market rates and prices. The Company's size and operations result in it being exposed to the following market risks that
arise from its use of financial instruments:
a) Currency Risk
b) Price Risk
c) Interest Rate Risk
The above risks may affect the Company's income and expenses, or the value of its financial instruments. The Company's
exposure to and management of these risks are explained below.
a) Currency Risk
The Company operates internationally and a major portion of the business is transacted in several currencies and
consequently the Company is exposed to foreign exchange risk to the extent that there is mismatch between the currencies
in which its sales and services and purchases from overseas suppliers in various foreign currencies. The Company also holds
derivative financial instruments such as foreign exchange forward and currency option contracts to mitigate the risk of
changes in exchange rates on foreign currency exposures. The exchange rate between the Indian Rupee and foreign
currencies has changed substantially in recent years and may fluctuate substantially in the future.
b) Price Risk
The Company's exposure to equity securities price risk arises from investments held by the Company and classified in the
balance sheet either at fair value through OCI or at fair value through profit and loss. To manage its price risk arising from
investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance
with the limits set by the Company .
c) Interest Rate Risk
interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of
changes in market interest rates. in order to optimize the Company's position with regards 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 fixed rate and floating rate financial instruments in its total portfolio.
According to the Company, interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the
analysis is prepared assumingthe amount of the liability outstanding atthe end of the reporting period was outstanding for
the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key
management personnel and represents management's assessment of the reasonably possible change in interest rates.
Credit risk
Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage
this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the
financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual
risk limits are set and periodically reviewed on the basis of such information.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant
increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in
credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at
the date of initial recognition.
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a
repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in
enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income
in the statement of profit and loss.
The Company measures the expected credit loss of trade receivables and loan from individual customers based on
historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on
actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material
hence no additional provision considered.
Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market
positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by
maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company's liquidity
position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash
flows.
21 Capital Risk Management
Risk Management
The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to
optimise returns to our shareholders.
The capital structure of the Company is based on management's judgement of the appropriate balance of key elements in
order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the
capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to
maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return
capital to shareholders or issue new shares.
The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain
investor, creditors and market confidence and to sustain future development and growth of its business. The Company will
take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
Note : 23 The Company has not received intimation from most of the suppliers regarding the status under the Micro, Small and Medium Enterprise
Development Act, 2006, and hence disclosure requirements in this regard as per schedule III of the Companies Act, 2013 is not being provided.
Note:24 OtherStatutory Information
i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any
Benami property.
The Company do not have any transactions with companies struck off.
iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
iv) The Company have not advanced or loaned or invested funds to 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.
v) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Sarty) 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 Sarty
(Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
vi) The Company have no 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, th6t (such as, search or survey or any other relevant provisions of the Income Tax
Act, th6t).
vii) The Company has complied with the number of layers prescribed under clause (87) of section 4 of the Act read with the Companies (Restriction
on number of Layers) Rules, 4tt7.
Note : 25 Figures of previous year are regrouped, rearranged and reclassified wherever necessary to correspond to figures of the current year
For D. Kothary & Co For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 105335W
Sd/- Sd/- Sd/-
Deepak O. Narsaria Nivedan Bharadwaj Ruchika Bharadwaj
Partner Managing Director Director
Membership No.: 121190 DIN No. 00040191 DIN No. 00288459
Sd/- Sd/-
Anil Kumar Kukreja Srishti Vig
C.F.O Company Secretary
PAN No. AAJPK2353F Pan No. AWQPV7084H
Place : Mumbai Place : New Delhi
Date : 30th May 2025 Date : 30th May 2025
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