Notes to employee benefits Defined benefit plans
(i) leave Obligations
The leave obligation covers the company's liability for earned leave which is unfunded.
(ii) Defined contribution plan
The company has defined contribution plan namely provident fund. Contributions are made to provident fund at the rate of 12% of basic salary plus DA as per regulations. The contributions are made to registered provident fund administered by the Government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contributions plan is as follows:
(iii) Gratuity:
Each employee rendering continuous service of 5 years or more is entitled to receive gratuity amount equal to 15/26 of the monthly emoluments for every completed year of service subject to maximum of ? 20 Lakhs at the time of separation from the company.
The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the fund status and amounts recognised in the balance sheet for the respective plans:
The above sensitivity analysis is based on a change in each assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.
v) Risk exposure
Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:
Interest rate risk:
The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.
Salary inflation risk:
Higher than expected increases in salary will increase the defined benefit obligation.
Demographic risk:
This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.
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32 Contingent Liabilities:
All amount ? in lakhs, unless otherwise stated
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Particulars
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As at
31st March, 2026
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As at
31st March, 2025
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1
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Appeal pending before the Hon'ble High Court of Telangana questioning levy of NPV by the Special Secretary Environment, Forests, Sicence & Technology Department Govt of A.P. for the forest land diverted to KCSIL for the purpose of Mining Lime Stone under Forest (Conservation) Act, 1980.
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755.22
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755.22
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2
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The appeal No.72/2014 dated 05.06.2014 and.73/2014 dated 25.06.2014 for the year 2012-13 is pending before the 'Addl.Commissioner of Customs'. On 03.06.2020, the Commissioner (Appeals), Guntur passed orders remanding back the appeal to the adjudicating authority for denovo consideration as per the directions given by the Supreme Court in a case pertaining to Maruti Ispat and Energy Pvt Ltd & Others pending with the Hon'ble Supreme Court. Further in the Order the Department was directed not to enforce any demand from the Appellant -KCSIL vice versa the Appellant was directed not to make any claim for refund (if any) that accrued during the intervening period.
The said case is yet to be adjudicated by the Supreme Court.
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65.77
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65.77
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3
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For the Asst. years 1999-00,2000-01 and 2001-02 KCSIL paid Income tax paid of Rs.123.98 lakhs under protest against the demand of Rs.136.40 lakhs towards disallowance of un-fibsorbed depreciation / losses and filed ITTA No. 464/2010, ITTA No. 34/2011 & ITTA No.33/2011 respectively before High Court. KCSIL opted for Vivadh Se Vishwas Scheme 2024 of IncomeTax Department, and complied all the procedures as contemplated under it viz- Withdrawn all the 3 I TTA's from the High Court etc. Consequent to which the department issued Form No. 4 and for the Asst Year 2000-01 Order under Vivad Se Vishwas was passed by the Department on 05.02.2026. Like wise department have to pass Orders for other 2 Asst.years i.e. 1999-2000 & 2001-02.
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12.42
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12.42
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4
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For AY 2007-08 , The ITAT in the Appeal partly disposed of the case in favour of the company by allowing 80IA deduction and in response to that the department has filed Appeal ( ITTA No. 345/2013) before the Hon'ble Hight Court of Telangana. The same is pending for adjudication.
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1,156.46
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1,156.46
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5
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For AY 2008-09. The ITAT in the Appeal partly disposed of the case in favour of the company by allowing 80IA deduction and in response to that the department has filed Appeal ( ITTA No. 488/2015) before the Hon'ble Hight Court of Telangana. The same is pending for adjudication.
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930.42
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930.42
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6
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For AY 2009-10. The ITAT in the Appeal partly disposed of the case in favour of the company by allowing 80IA deduction and in response to that the department has filed Appeal ( ITTA No. 748/2014) before the Hon'ble Hight Court of Telangana. The same is pending for adjudication.
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2,581.75
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2,581.75
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All amount ? in lakhs, unless otherwise stated
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7
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For the Asst.Year 2014-15, the company has filed an appeal before the CIT(A) against the orders passed by the Assessing Officer disallowing 80IA deduction under IT Act. The CIT(A) as well as ITAT, Hyderabad disposed of the case in favour of the company allowing 80IA deduction, against which the IT department had filed an appeal (ITTA No.76/2022) before the Hon'ble High Court of Telangana and pending for adjudication. However the effectual consequential order u/s 154 is pending with the department for disposal.
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427.94
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427.94
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8
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For the A.Y.2016-17 , the company has filed an appeal before the CIT(A) against the orders passed by the Assessing Officer disallowing 80IA deduction under IT Act. The CIT(A) as well as ITAT, Hyderabad disposed of the case in favour of the company allowing 80IA deduction, against which the IT department had filed an appeal (ITTA No.66/2021)before the Hon'ble High Court of Telangana and pending for adjudication. However the effectual consequential order u/s 154 is pending with the department for disposal.
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969.26
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969.26
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9
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The Company has received Demand notices dated 07.01.2021, 11.02.2021 from TGNPDCL, Warangal directing it to pay a sum of ^ 2053.86 lakhs towards Grid Support Charges for the period commencing from 12.04.2002 and ending with 31.03.2009. The Original Petition (OP.NO. 35/2023) filed by KCSIL before TGERC, questioning the demand of Grid Support by TGNPDCL was dismissed by the TGERC on 28.10.2024. Company filed a Review Petition ( R.P. No. 1 of 2025) before TGERC. Arguments are heard and the Review Petition is reserved for Orders by TGERC on 04.07.2025.
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2,053.86
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2,053.86
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10
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Under Protest KCSIL has paid the crystalised Principal sum of ? 11,95,82,966/- claimed by TGSPDCL towards differential wheeling charges in two parts i.e. ? 8,00,00,000/- on 24.03.2022 and f 3,95,82,966/- on 27.10.2022 and KCSIL has disputed the levy of interest and surcharge amounting to ^42,36,86,659/- levied by TGSPDCL through its notice dated 07.07.2023 by way of filing a Original Petition (O.P. No. 36/2023) before Telangana Electricity Regulatory Commission (TGERC). The O.P. was dismissed by TGERC on 28.10.2024. Company filed an Appeal before the Appellate Tribunal for Electricity (APTEL) - New-Delhi (D.F.R.No, 4/2025). By Order dt.10.03.26 APTEL extended its earlier order not to initiate any coercive action such as disconnection of power to its Cement Plant till further orders. On 05.05.2026 KCSIL Sr.Counsel has presented the arguments. Now the Appeal is posted to 11.08.2026 for arguments of TGSPDCL.
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4,236.87
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4,236.87
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11
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The Joint Commissioner of Sale Tax vide is Order dated 09.01.2024 revised the proceedings issued by the Assistant Commissioner of Sale Tax for the Assessment Year by levying tax of ? 4,35,60,832. Questioning the revisional Order of Joint Commissioner of Sale Tax, KCSIL filed W.P.No.3148/2024 before the High Court of Telangana. The Hon'ble High Court vide its Orders dated 22.07.2024 disposed off the Writ Petiton filed by KCSIL by directing the Company to avail the alternate remedies available to it. KCSIL paid 25% of disputed tax under protest and preferred Appeal before VAT Appellate Tribunal, Hyderabad, registered as Tribunal Appeal No. 7/2025 . The Appeal is admitted and posted to 06.07.2026 for hearing.
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435.61
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435.61
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All amount ? in lakhs, unless otherwise stated
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12
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A demand notice on 07.01.2021 was received from TGSPDCL, Suryapet, Telangana towards differential C.C. charges commencing from April 2014 and ending with February 2020. The Company vide its reply dated 22.01.2021 stated that it had entered into an HT agreement with TGSPDCL wherein it has declared its CMD as 4980 KVA for obtaining supply under 132 KV voltage category. TGSPDCL having agreed for the same in the agreement cannot revise the CC Bills. Hence, the Company requested the authority to withdraw the said letter. But till date no further developments took place by TGSPDCL.
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425.91
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425.91
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13
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The Company has received a notice dated 26.04.2024 from the Superintending Engineer, Operation Circle, TGSPDCL, Suryapet to HT Service No. SPT 427 attached to its Cement Factory, demanding an amount of Rs.14,10,82,724/- towards Grid Support Charges caluclated from Fy.2002-03 to Fy.2008-09.
The Company vide its reply dated 09.05.2024 denied its liability and stated that the Claim towards Grid Support Charges are time barred . Further the Cement Factory does not have any Captive Power Plant (CPP) in parallel with the Grid. APERC vide its order dated 07.12.2002 in OP.No. 742/2000 approved KCSIL cement Factory for using the available D.G. Sets for standby operation without integration with the grid. On 04.07.2024 TGSPDCL further issued a notice revising the Grid Support Charges to Rs.1,36,74,069 restricting the period from 01.04.2002 to 07.12.2002. KCSIL disputed the same on the ground of Limitation and issued a letter dated 20.07.2024. No further developments.
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136.74
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136.74
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14
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KCSIL has questioned the levy of Electricity duty @0.25 paise per unit on Captive Consumption w.e.f 17.07.2013 in W.P. No.20536/2009 & Batch filed before Hon'ble High Court of Telangana. The Hon'ble High Court dismissed our W.P. on 19.05.2016. Thereafter the Company preferred SLP before the Hon'ble Supreme Court of India. As per the Interim Orders dated 14.09.16 & 27.09.16, the Company has paid an amount of ? 0.6 paise per unit and ? 0.9 Paise per unit respectively out of the demand of ? 0.25 paise per unit. Depending on the outcome of the Order, the Company may have to pay the balance 0.10 paise per unit aggregating to ^3,21,75,024/- towards Elecl Duty. Hence provision is being provided for the balance amount.
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321.75
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321.75
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15
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W.P.No.13571/2010 KCSIL Vs. Govt. of A.P.
GO.No. 35/2010, dated. 06.05.10 was issued by Govt of A.P. fixing the permit fee as ? 10/- per Tonne for transporting the lime stone. Questioning the same KCSIL filed the present Writ Petition. Interim Order granted on 28.02.11 directing KCSIL to pay ? 3.33 per tonne till the disposal of the W.P. as permit fee to the Govt. Counter affidavit was filed by the D.F.O for which Reply affidavit filed by KCSIL. As the permit fee levy is made by the A.P.Government, and the mines are situated at Andhra Pradesh, the High Court of Telangana has transferred the present W.P. to Andhra Pradesh. Not listed till date.
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164.28
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164.28
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33 Capital and other commitments f Nil (P.Y f Nil)
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35. Fair values
The carrying amounts of Trade Payables, Other Financial Liabilities (Current), Borrowings (Current), Trade Receivables, Cash & Cash equivalents,Other Bank Balances, Other Financial Assets and loans are considered to be the same as fair value due their short term nature.
The fair value of financial assets and liabilities is incuded at the amount at which the instrument could be exchanged in a current transactions between willilng parties, other than in a forced or liquidation sale.
Set out below, is 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:
techniques, which maximise the use of observable market data and rely as little as possible on entity specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs are not based on observable market data, the instruments are included in Level 3.
Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.
36 Financial risk management objectives and policies Financial Risk Management Framework
The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.
The Company is exposed primarily to Credit Risk, Liquidity Risk and Market risk ( interest rate), which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
A. Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.
Trade receivables:
Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date of statements of financial position whether a financial asset or a Company of financial assets is impaired. Expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. The company is not expecting any credit loss allowance which is calculated on life time expected credit losses for trade receivables. Credit loss provision on security deposits is taken as 12 months expected credit loss and no loss is expected as at 31st March, 2026, 31st March, 2025
(iii) Significant estimates and judgements Impairment of financial assets
The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company's past history, existing marketing conditions as well as forward looking estimates at the end of each reporting report.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company's Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the authorised person. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
B. Liquidity Risk
Prudent liquidity risk manangement implies maintaining sufficient cash and the availability of funding to meet obligations when due and to close out market positions. Company's treasury maintains flexibility in funding by maintaining availabililty under deposits in banks.
Management monitors cash and cash equivalents on the basis of expecte cash flows.
C. 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 risk comprises three types of risk: interest rate risk and other price risk, such financial instruments affected by market risk include loans and borrowings, deposits etc.
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. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long term and short term borrowings. The company has borrowed funds on fixed rate of interest, there is no impact on the entity due to any interest fuluctuations.
37 Capital Management
A. Capital Management and gearing Ratio:
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves. The primary objective of the Company's capital management is to maximise the shareholder value.
Capital includes equity attributable to the equity holders. The primary objective of the Company's capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
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 immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.
Information about Products:
Revenue from external customers- sale of cement : ? 6,364.95 lakhs (P.Y: ^ 4,786.05 lakhs)
Revenue from external customers- sale of sugar : X 1,521.20 lakhs (P.Y: X 4,136.23 lakhs)
Revenue from external customers- sale of power : ? Nil (P.Y: ? Nil)
The company has not made external sales to a single customer meeting the criteria of 10% or more of the entity's revenue.
Segment revenue and expenses:
The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments.
Segment assets and liabilities:
Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.
Inter segment transfers:
The Company accounts for inter segment sales and transfer at average Market price.
42 “Code on Security, 2020":
On November 21,2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company is in the process of restructuring the compensation of its employees and assessed the impact of the changes, consistent with the Labour Codes, draft rule. The Company has presented financial impact under "Employee benefits expense” in the Statement of Profit and Loss. The Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as needed.
43 The Financial Statements were approved and authorised by the Board of Directors of the Company on 28th May, 2026.
44 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 person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lent or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in the persons or entities identified by or on behalf of the funding party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
45 The accounting software that is being used by the Company for maintaining its books of account does not have the feature of audit trail (edit log) facility both at the application level and database.
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