(m) Provisions and Contingent liabilities, Contingent
assets
(i) Provision
A provision is recognized when the Company has
a present obligation (legal or constructive) as a
result of 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. 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 using a
current pretax rate that reflects, when appropriate,
the risks specific to the liability. When discounting is
used, the increase in the provision due to the assage
of time is recognized as a finance cost.
Warranty Provision
Provision for warranty-related costs are recognized
when the product is sold or service is provided to
customer. Initial recognition is based on historical
experience. The Company periodically reviews the
adequacy of product warranties and adjust warranty
percentage and warranty provisions for actual
experience, if necessary.
(ii) Contingent liabilities
A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of
one or more uncertain future events beyond the
control of the Company or a present obligation that
is not recognized because it is not probable that
an outflow of resources will be required to settle
the obligation. A contingent liability also arises
in extremely rare cases, where there is a liability
that cannot be recognized because it cannot be
measured reliably. The Company does not recognize
a contingent liability but discloses its existence in
the financial statements unless the probability of
outflow of resources is remote.
(iii) Contingent assets
Contingent assets are not recognized. However,
when the realization of income is virtually certain,
then the related asset is no longer a contingent
asset, but it is recognized as an asset.
Provisions, contingent liabilities, contingent
assets and commitments are reviewed at each
balance sheet date.
(n) Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within twelve months after the end of the
period in which the employees render the related
service are recognised in respect of employees'
services up to the end of the reporting period
and are measured at the undiscounted amounts
expected to be paid when the liabilities are settled.
The liabilities are presented as current benefit
obligations in the balance sheet.
(ii) Other long-term employee benefit obligations
Other long-term employee benefits includes earned
leaves, sick leaves and employee bonus.
Earned leaves
The liabilities for earned leaves are not expected
to be settled wholly within twelve months after
the end of the period in which the employees
render the related service. They are therefore
measured at the present value of expected future
payments to be made in respect of services
provided by employees up to the end of the
reporting period using the projected unit credit
method, with actuarial valuations being carried
out at the end of each annual reporting period.
The benefits are discounted using the government
bond yields at the end of the reporting period
that have terms approximating to the terms of the
related obligation. Remeasurements as a result of
experience adjustments and changes in actuarial
assumptions are recognised in statement of profit &
loss. The obligations are presented as provisions in
the balance sheet.
(iii) Post-employment obligations
The Company operates the following post
employment schemes:
• defined benefit plan towards payment
of gratuity; and
• defined contribution plans towards provident
fund & employee pension scheme and
employee state insurance.
Defined benefit plans
The Company provides for gratuity obligations
through a defined benefit retirement plan (the
'Gratuity Plan') covering all employees. The
Gratuity Plan provides a lump sum payment to
vested employees at retirement/termination of
employment or death of an employee, based on
the respective employees' salary and years of
employment with the Company.
The liability or asset recognised in the balance sheet
in respect of the defined benefit plan is the present
value of the defined benefit obligation at the end
of the reporting period less the fair value of plan
assets. The present value of the defined benefit
obligation is determined using projected unit credit
method by discounting the estimated future cash
outflows by reference to market yields at the end of
the reporting period on government bonds that have
terms approximating to the terms of the related
obligation, with actuarial valuations being carried
out at the end of each annual reporting period.
The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense in
the statement of profit and loss. Remeasurement
gains and losses arising from experience
adjustments and changes in actuarial assumptions
are recognised in the period in which they occur,
directly in other comprehensive income. They are
included in retained earnings in the statement of
changes in equity and in the balance sheet.
Defined contribution plans
Defined contribution plans are retirement
benefit plans under which the Company pays
fixed contributions to separate entities (funds)
or financial institutions or state managed benefit
schemes. The Company has no further payment
obligations once the contributions have been paid.
The defined contributions plans are recognised
as employee benefit expense when they are due.
Prepaid contributions are recognised as an asset to
the extent that a cash refund or a reduction in the
future payments is available.
• ProvidentFundPlan&EmployeePensionScheme
The Company makes monthly contributions at
prescribed rates towards Employees' Provident Fund/
Employees' Pension Scheme to a Fund administered
and managed by the Government of India.
• Employee State Insurance
The Company makes prescribed monthly
contributions towards Employees' State
Insurance Scheme.
• Leave Encashment
The Company has recognised liability for short
term compensated absences on full cost basis with
reference to unavailed earned leaves at the year end.
To the extent, the compensated absences qualify as
a long term benefit, the Company has provided for
the long term liability at year end as per the actuarial
valuation using the Projected Unit Credit Method.
Actuarial gains and losses arising from adjustments
and changes in actuarial assumptions are charged or
credited to the Statement of profit and loss in the
year in which such gains or losses arise.
(o) Share-based payment
Employees (including senior executives) of the
Company receive remuneration in the form of share-
based payments, whereby employees render services
as consideration for equity instruments (equity-
settled transactions).
Equity Settled transactions
The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using
an appropriate valuation model. Further details are
given in Note 33.
That cost is recognised, together with a corresponding
increase in share-based payment (SBP) reserves in equity,
over the period in which the performance and/or service
conditions are fulfilled in employee benefits expense.
The cumulative expense recognised for equity-settled
transactions at each reporting date until the vesting
date reflects the extent to which the vesting period has
expired and the Company's best estimate of the number
of equity instruments that will ultimately vest. The
expense or credit in the statement of profit and loss for a
period represents the movement in cumulative expense
recognised as at the beginning and end of that period and
is recognised in employee benefits expense.
Service and non-market performance conditions are not
taken into account when determining the grant date fair
value of awards, but the likelihood of the conditions being
met is assessed as part of the Company's best estimate
of the number of equity instruments that will ultimately
vest. Market performance conditions are reflected within
the grant date fair value. Any other conditions attached to
an award, but without an associated service requirement,
are considered to be non-vesting conditions. Non-vesting
conditions are reflected in the fair value of an award and
lead to an immediate expensing of an award unless there
are also service and/or performance conditions.
No expense is recognised for awards that do not ultimately
vest because non-market performance and/or service
conditions have not been met. Where awards include a
market or non-vesting condition, the transactions are
treated as vested irrespective of whether the market or
non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.
When the terms of an equity-settled award are modified,
the minimum expense recognised is the grant date fair
value of the unmodified award, provided the original
vesting terms of the award are met. An additional expense,
measured as at the date of modification, is recognised
for any modification that increases the total fair value
of the share-based payment transaction, or is otherwise
beneficial to the employee. Where an award is cancelled
by the entity or by the counterparty, any remaining
element of the fair value of the award is expensed
immediately through statement of profit or loss.
The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.
(p) 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.
(i) Financial assets
• Initial Recognition and measurement
Financial assets are classified, at initial recognition,
as subsequently measured at amortised cost, fair
value through other comprehensive income (OCI),
and fair value through profit or loss.
The classification of financial assets at initial
recognition depends on the financial asset's
contractual cash flow characteristics and the
Company's business model for managing them. With
the exception of trade receivables that do not contain
a significant financing component or for which the
Company has applied the practical expedient, the
Company initially measures a financial asset at its
fair value plus, in the case of a financial asset not at
fair value through profit or loss, transaction costs.
Trade receivables that do not contain a significant
financing component or for which the Company has
applied the practical expedient are measured at the
transaction price determined under Ind AS 115.
The Company's business model for managing
financial assets refers to how it manages its financial
assets in order to generate cash flows. The business
model determines whether cash flows will result
from collecting contractual cash flows, selling the
financial assets, or both. Financial assets classified
and measured at amortised cost are held within a
business model with the objective to hold financial
assets in order to collect contractual cash flows
while financial assets classified and measured at
fair value through OCI are held within a business
model with the objective of both holding to collect
contractual cash flows and selling.
• Subsequent Measurement
• Financial assets carried at amortised cost
A financial asset is subsequently measured at
amortised cost which is held with objective 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.
• Financial assets at fair value through
other comprehensive income
A financial asset is subsequently measured
at fair value through other comprehensive
income which is held with objective to achieve
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.
• 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.
• 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. For impairment
purposes significant financial assets are tested
on an individual basis, other financial assets
are assessed collectively in groups that share
similar credit risk characteristics.
The Company recognises life-time expected
losses for all trade receivables. For all other
financial assets, 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 ecognition. The
amount of expected credit losses (or reversal)
that is required to adjust the loss allowance
at the reporting date to the amount that is
required to be recognised is recognized as
an impairment gain or loss in statement of
profit or loss.
The Company follows 'simplified approach' for
the recognition of impairment loss allowance
on trade and other receivables.
The application of simplified approach does
not require the Company to track changes in
credit risk. Rather, it recognises impairment
loss allowance based on life-time ECLs at each
reporting date, right from its initial recognition.
The Company uses a provision matrix to
determine impairment loss allowance on
portfolio of its trade receivables. The provision
matrix is based on its historically observed
default rates over the expected life of the
receivables and is adjusted for forward¬
looking estimates. At every reporting date,
the historical observed default rates are
updated and changes in the forward-looking
estimates are analysed.
(ii) Financial liabilities
• Initial Recognition and measurement
Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables, or as derivatives designated as hedging
instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables,netofdirectlyattributabletransactioncosts.
The Company's financial liabilities include trade
and other payables, loans and borrowings including
bank overdrafts, financial guarantee contracts and
derivative financial instruments.
• Subsequent measurement
For purposes of subsequent measurement, financial
liabilities are classified in two categories:
• Financial liabilities at fair value
through profit or loss
• Financial liabilities at amortised cost (loans
and borrowings)
Financial liabilities at fair value through profit or
loss
Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or loss.
Financial liabilities at amortised cost (Loans
and borrowings)
This is the category most relevant to the Company.
After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in statement of profit or loss
when the liabilities are derecognised as well as
through the EIR amortisation process.
Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The
EIR amortisation is included as finance costs in the
statement of profit and loss.
• Derecognition
The Company derecognizes a financial asset when
the contractual rights to the cash flows from the
financial asset expire or it transfers the financial
asset and the transfer qualifies for derecognitionas
per Ind AS 109. A financial liability (or a part of a
financial liability) is derecognized from the company's
balance sheet when the obligation specified in the
contract is discharged or cancelled or expires.
• Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.
• 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. For financial assets which are debt
instruments, a reclassification is made only if there is
a change in the business model for managing those
assets. Changes to the business model are expected
to be infrequent. The company's senior management
determines change in the business model as a result
of external or internal changes which are significant
to the Company's operations. Such changes are
evident to external parties. A change in the business
model occurs when the company either begins or
ceases to perform an activity that is significant to
its operations. If the company reclassifies financial
assets, it applies the reclassification prospectively
from the reclassification date which is the first day
of the immediately next reporting period following
the change in business model. The company does
not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.
• Investment in subsidiaries, joint
venture and associates
Investment in equity shares of subsidiaries, joint
venture and associates is carried at cost in the
financial statements.
(q) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits
with an original maturity of three months or less, that
are readily convertible to a known amount of cash and
subject to an insignificant risk of changes in value.
(r) Critical accounting estimates, assumptions and
judgements
The preparation of the Company's standalone financial
statements requires management to make judgements,
estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities,
and the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of
assets or liabilities affected in future periods.
Other disclosures relating to Company's exposure to risk
and uncertainties includes;
Capital Management Note 39.
Financial risk management objective and policies Note 37.
Sensitivity analysis disclosures note 37.
Judgements
In the process of applying the Company's accounting
policies, management has made the following judgements,
which have the most significant effect on the amounts
recognised in the consolidated financial statements:
Determining the lease term of contracts with renewal
and termination options - Company as lessee
The Company determines the lease term as the non¬
cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably
certain to be exercised, or any periods covered by an
option to terminate the lease, if it is reasonably certain
not to be exercised.
The Company has several lease contracts that include
extension and termination options. The Company applies
judgement in evaluating whether it is reasonably certain
whether or not to exercise the option to renew or
terminate the lease. That is, it considers all relevant factors
that create an economic incentive for it to exercise either
the renewal or termination. After the commencement
date, the Company reassesses the lease term if there
is a significant event or change in circumstances that
is within its control and affects its ability to exercise or
not to exercise the option to renew or to terminate (e.g.,
construction of significant leasehold improvements or
significant customisation to the leased asset).
Estimates and assmptions
The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date,
that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the
next financial year, are described below. The Company
based its assumptions and estimates on parameters
available when the standalone financial statements
were prepared. Existing circumstances and assumptions
about future developments, however, may change due to
market changes or circumstances arising that are beyond
the control of the Company. Such changes are reflected in
the assumptions when they occur.
(i) Property, plant and equipment
External advisor and/or internal technical team
assesses the remaining useful life and residual value
of property, plant and equipment. Management
believes that the assigned useful lives and residual
values are reasonable.
(ii) Intangibles
Internal technical and user team assess the
remaining useful lives of Intangible assets.
Management believes that assigned useful lives are
reasonable.All Intangibles are carried at net book
value on transition.
(iii) Impairement of non-financial assets
Impairment exists when the carrying value of an
asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs
of disposal and its value in use. The fair value less
costs of disposal calculation is based on available
data from binding sales transactions, conducted
at arm's length, for similar assets or observable
market prices less incremental costs for disposing
of the asset. The value in use calculation is based on
a DCF model. The cash flows are derived from the
budget for the next five years and do not include
restructuring activities that the Company is not yet
committed to or significant future investments that
will enhance the asset's performance of the CGU
being tested. The recoverable amount is sensitive
to the discount rate used for the DCF model as
well as the expected future cash-inflows and the
growth rate used for extrapolation purposes. These
estimates are most relevant to goodwill and other
intangibles with indefinite useful lives recognised
by the Company. The key assumptions used to
determine the recoverable amount for the different
CGUs, including a sensitivity analysis, are disclosed
in notes to accounts.
(iv) Share based payments
Estimating fair value for share-based payment
transactions requires determination of the most
appropriate valuation model, which is dependent on
the terms and conditions of the grant. This estimate
also requires determination of the most appropriate
inputs to the valuation model including the expected
life of the share option, volatility and dividend
yield and making assumptions about them. For the
measurement of the fair value of equity-settled
transactions with employees at the grant date. The
assumptions and models used for estimating fair
value for share-based payment transactions are
disclosed in Note 33.
(v) Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and
the present value of the gratuity obligation are
determined using actuarial valuations. An actuarial
valuation involves making various assumptions that
may differ from actual developments in the future.
These include the determination of the discount
rate; future salary increases and mortality rates. Due
to the complexities involved in the valuation and its
long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount
rate. In determining the appropriate discount
rate for plans operated in India, the management
considers the interest rates of government bonds
where remaining maturity of such bond correspond
to expected term of defined benefit obligation.
The mortality rate is based on publicly available
mortality tables for the specific countries. Those
mortality tables tend to change only at interval in
response to demographic changes. Future salary
increases and gratuity increases are based on
expected future inflation rates for the respective
countries. Further details about gratuity obligations
are given in Note 32.
(vi) Leases- Estimating the incremental borrowing rate
The Company cannot readily determine the interest
rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease
liabilities. The IBR is the rate of interest that the
Company would have to pay to borrow over a similar
term, and with a similar security, the funds necessary
to obtain an asset of a similar value to the right-of-
use asset in a similar economic environment. The IBR
therefore reflects what the Company 'would have to
pay', which requires estimation when no observable
rates are available. The Company estimates the IBR
using observable inputs (such as market interest
rates) when available and is required to make certain
entity-specific estimates.
s) Recent accounting pronouncements
(i) 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.
Amendments to Ind AS 21 - Lack of exchangeability
On 09 May 2025, Ministry of Corporate Affairs
(MCA) notifies the amendments to Ind AS 21 -
Effects of Changes in Foreign Exchange Rates. These
amendments aim to provide clearer guidance on
assessing currency exchangeability and estimating
exchange rates when currencies are not readily
exchangeable. The amendments are effective for
annual periods beginning on or after April 01,2025.
The Company has reviewed the amendment and
based on its evaluation has determined that it does
not have any impact in its financial statements.
> Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Noncurrent
Liabilities with Covenants
In August 2025, the MCA notified amendments
to paragraphs 69 to 76 of Ind AS 1 to specify the
requirements for classifying liabilities as current or
noncurrent. The amendments clarify:
a) What is meant by a right to defer settlement
b) That a right to defer must exist at the end of
the reporting period
c) That classification is unaffected by the
likelihood that an entity will exercise
its deferral right
d) That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability not
impact its classification
In addition, a requirement has been introduced to
require disclosure when a liability arising from a
loan agreement is classified as non-current and the
entity's right to defer settlement is contingent on
compliance with future covenants within twelve
months. If there is a breach of a material covenant
of a long-term loan arrangement on or before the
end of the reporting period, resulting in the liability
becoming payable on demand as at the reporting
date, and the lender agrees—after the reporting
period but before the financial statements are
approved for issue—not to demand repayment
for at least 12 months as a consequence of the
breach, this shall be treated as an adjusting event.
Accordingly, the entity is not required to classify the
liability as current. The amendments are effective
for annual reporting periods beginning on or after 1
April 2025 retrospectively in accordance with Ind AS
8. The amendments do not have material impact on
the Company's financial statements.
Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments
Disclosures, applicable w.e.f. April 01, 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 significant impact in its
financial statements.
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 on its financial statements.
(ii) Standards issued but not yet effective
Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Noncurrent
Liabilities with Covenants
In accordance with Ind AS 1 currently applicable,
breach of an immaterial covenant is ignored deciding
in current vs. non-current classification of liabilities.
Also, in case of breach of a material covenant of a
noncurrent loan on or before the reporting date,
the entity can obtain waiver from the lender after
the reporting date and continue to classify the loan
as non-current liability. In accordance with changes
to Ind AS 1 already notified by the MCA, the above
relaxations to classify loan as non-current liability
will not be available from FY 2026- 27 onward and
need to be applied retrospectively. Consequently
i) A breach of either material or
immaterial covenant will trigger current
classification of liability.
ii) To continue classifying loan as non-current
liability, entities will need to obtain waiver from
the breach on or before the reporting date.
The Company is currently assessing the impact
the amendments will have on its standalone
financial statements
Note:
(a) Neither trade nor other receivables are due from directors or other officers of the Company either severally or jointly with
any other person. Nor any trade or other receivables are due from firms or private companies in which any director is a
partner, a director or a member, except as mentioned in note 36.
(b) Information about the Company's exposure to credit and currency risks, and loss allowances related to trade receivables are
disclosed in note 37. Provision as disclosed above is on case to case basis as identified by the management.
(c) For terms and conditions related to trade receivables owing from related parties, see note 36.
(d) Trade receivables are no-interest bearing and are generally on terms of 30-90 days of credit period.
(e) The movement of expected credit loss allowance
(i) During the previous year, the Company has granted employee stock options to the employees of PG Technoplast Private
Limited. Hence, the Company has adopted equity accounting for the shares based expenses in respect of those employees
amounted to? 700.29 lakhs (March 31,2025:? 793.34 lakhs), debited to investment in subsidiary.
(ii) During the previous year, the Company has granted employee stock options to the employees of Next Generation
Manufacturing Private Limited. Hence, the Company has adopted equity accounting for the shares based expenses in respect
of those employees amounted to? 42.86 lakhs (March 31,2025:? 37.38 lakhs), debited to investment in Step down subsidiary.
(iii) During the year, Company has granted employee stock options to the employees of Goodwroth Electronics Private Limited .
Hence, the Company has adopted equity accounting for the shares based expenses in respect of those employees amounted
to? 50.53 lakhs ( March 31,2025: ? 60.59 lakhs), debited to investment in Joint venture.
(iv) During the year, the Company converted a portion of its outstanding loan into equity by investing? 82,300.00 lakhs towards
the allotment of 9,92,100 equity shares at an issue price of? 8,380 per share in its wholly owned subsidiary, PG Technoplast
Private Limited, through a rights issue. In the previous year, the Company converted a portion of its outstanding loan into
equity by investing? 72,999.94 lakhs towards the allotment of 8,71,121 no of equity shares in its wholly owned subsidiary, PG
Technoplast Private Limited.
(v) In the previous year, the Company on September 28, 2024, pursuant to the JV Agreement, the Company invested? 575.55
lakhs for the subscription of 57,55,000 (Fifty seven lakhs fifty five thousands) equity shares at face value of? 10/- each of
Goodworth Electronics Private Limited (JV Company).
(vi) During the year, the Company made additional investment of? 8.00 lakhs in PG Plastronic Private Limited for purchase of
80,000 equity shares at par value of? 10 each by way of rights issue.
(vii) During the year, the Company recognised deemed investments in the form of corporate guarantee commission/fees
amounting to? 40.03 lakhs in PG Plastronic Private Limited,? 8.47 lakhs in Next Generation Manufacturing Private Limited,
and? 2.36 lakhs in Goodworth Electronics Private Limited.
1. During the previous year, the Company on May 22, 2024 allotted 71,599 (Seventy one thousand five hundred ninety
nine only) Equity Shares ofH 10/- each to 'PG Electroplast Limited Employees Welfare Trust' under the PG Electroplast
Employees Stock Options Scheme - 2020 in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021.
1 (a). The Board of Directors of the Company at its meeting held on May 22, 2024, recommended the sub-division /
split of 1(One) fully paid-up equity share having a face value ofH 10/- each into 10 (Ten) fully paid-up equity shares
having a face value ofH 1/- each. Considering this the equity shares of the Company have been split / sub-divided
from 1(one) Equity share of face value ofH 10/- each to 10 Equity shares of face value ofH 1/- each fully paid up
ranking pari-passu in all respects, with effect from the record date i.e. July 10, 2024
1 (b). During the previous year, the Company on August 05, 2024 allotted 6,56,000 (Six lakh fifty-six thousand only) Equity
Shares ofH 1/- each to the 'PG Electroplast Limited Employees Welfare Trust' under PG Electroplast Employees
Stock Options Scheme - 2020 in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021.
1 (c). On December 10, 2024 the Company has issued and allotted 2,14,59,218 (Two Crore Fourteen Lakh Fifty-Nine
Thousand Two Hundred Eighteen only) Equity Shares, to the eligible Qualified Institutional Buyers (QIB) at the issue
price ofH 699/- per Equity Share (including a premium ofH 698/- per Equity Share, (which includes a discount ofH
6.18/- i.e., 0.88 % of the floor price, as determined in terms of SEBI ICDR Regulations), aggregating toH 1,49,999.93
Lakhs (Rupees One Thousand Four Hundred Ninety-Nine Crore Ninety-Nine Lakh and Ninety-Three Thousand
Three Hundred only), pursuant to the Qualified Institutions Placement (QIP).
2. During the year, the Company has allotted 22,49,000 (Twenty two lakhs fourty nine thousand only) Equity Shares ofH
1/- each to the 'PG Electroplast Limited Employees Welfare Trust' under PG Electroplast Employees Stock Options
Scheme - 2020 in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
Terms and rights attached to equity shares
(d) The Company has only one class of equity shares having a par value ofH 1/- per share. Each shareholder is eligible for one
vote per share held. In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining
assets of the company after distribution of all preferential amounts, in proportion to their shareholding.
Shares reserved for issue under options
(g) information relating to Employee Stock Option Plan, including details of option issued, exercised and lapsed during the
financial year and options outstanding as at end of the reporting period are set out in note 33.
(h) There were no buy back of shares or issue of shares pursuant to contract without payment being received in cash during the
previous 5 years.
(e) Nature and Purpose of Reserves
(i) Securities premium
Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited
purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
(ii) Retained earnings
Retained Earnings are profits that the Company has earned till date less transfer to other reserve, dividend or other
distribution or transaction with shareholders.
14 OTHER EQUITY (Contd..)
(iii) Employee share option reserve
The share option outstanding account is used to recognise the grant date fair value of options issued to employees
under Employee stock option plan.
(iv) Other comprehensive income
Other comprehensive income, comprising of actuarial gains and losses, excluding amounts included in net interest on
the net defined benefit liability are recognised immediately in the period in which they occur. They are then accumulated
in a separate reserve named as "Other comprehensive income”. These amounts are not reclassified to standalone
statement of profit and loss in subsequent years.
iv) Performance Obligation
Sale of products: Performance obligation in respect of sale of goods is satisfied when control of the goods is transferred to
the customer, generally on dispatch of the goods and payment is generally due as per the terms of contract with customers.
Sales of services: The performance obligation in respect of services is satisfied over the period of time and acceptance of the
customer. Payment is generally due upon completion of service and acceptance of the customer.
v) Incentive under Electronic Policy 2016
The Company unit located at Supa, Taluka-Partner, MIDC district Ahemdnagar in Maharashtra is eligible for incentives under
the Electronic Policy-2016 of Maharashtra Government and have been availing incentives in the form of Gross SGST refund
for the period of January 2020 to October 2028 . The Company recognises income for such government grants based on
Gross SGST payable, having maximum ceiling ofH 618.29 lakhs p.a. in accordance with the relevant notifications issued by the
State of Maharashtra.
The Company had already received an in principal approval for eligibility from the Government of Maharashtra in response
to the application filed by the Company for incentive under Electronic Policy-2016 on its investment for expansion for the
period from March 2017 to February 2021. Accordingly, the Company has recognised grant income amounting toH 618.29
lakhs (F.Y 2025-H 618.29) for the year ended on March 31,2026. The cumulative amount receivable in respect of the same is
H 2361.97 lakhs (H2247.88 lakhs as at March 31, 2025).
32 EMPLOYEE BENEFIT PLANS:
A) Defined contribution plans:
The Company makes contribution in the form of provident funds as considered defined contribution plans and contribution
to Employees Providend Fund Orgnisation.The Company has no further payment obligations once the contributions have
been paid. Following are the schemes covered under defined contributions plans of the Company:
Provident Fund Plan & Employee Pension Scheme: The Company makes monthly contributions at prescribed rates
towards Employee Provident Fund and Employee Pension Scheme fund administered and managed by Ministry of Labour &
Employment, Government of India.
Employee State Insurance: The Company makes prescribed monthly contributions towards Employees State Insurance
Scheme and payment made to Employee State Insurance Corporation, Ministry of Labour & Employment, Government of India.
B) Defined Benefit Plans:
(i) The Company provides for gratuity obligations through a defined benefit retirement plan (the 'Gratuity Plan') covering all
company employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement termination of
employment ordeath of an employee, based on the respective employees' salary and years ofemployment with the Company.
The Company has other long-term employee benefits in the nature of leave encashment. The liability in respect of leave
encashment is provided for on the basis of an actuarial valuation using the Projected Unit Credit Method."
(ii) Risk exposure
a) Risk to the beneficiary
The greatest risk to the beneficiary is that there are insufficient funds available to provide the promised benefits.
This may be due to:
• The insufficient funds set aside, i.e. underfunding
• The insolvency of the Employer
• The holding of investments which are not matched to the liabilities
• A combination of these events
b) Risk Parameter
Actuarial valuation is done basis some assumptions like salary inflation, discount rate and withdrawal assumptions.
In case the actual experience varies from the assumptions, fund may be insufficient to pay off the liabilities.
Similarly, reduction in discount rate in subsequent future years can increase the plan's liability. Further, actual
withdrawals may be lower or higher then what was assumptions the valuation, may also impact the plan's liability.
c) Risk of illiquid Assets
Another risk is that the funds, although sufficient, are not available when they are required to finance the benefits.
This may be due to assets being locked for longer period or in illiquid assets.
32 EMPLOYEE BENEFIT PLANS: (Contd..)
d) Risk of Benefit Change
There may be a risk that the benefit promised is changed or is changeable within the terms of the contract.
e) Asset liability mismatching risk
ALM risk arises due to a mismatch between assets and liabilities either due to liquidity or changes in interest rates
or due to different duration.
33 SHARE BASED PAYMENTS
During the year 2020-21, the Company has establised PG Electroplast Employee Stock Option Scheme 2020 "ESOP 2020” and
the same was approved at the general meeting of the Company held on 28th February 2021. The plan was set up so as to offer
and grant, for the benefit of employees of the Company, who are eligible under "Securities and Exchange Board of India” (SEBI)
(Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, option of the Company in one or more
tranches, and on such terms and conditions as may be fixed or determined by the board, in accordance with the law or guidelines
issued by the relevant authorities in this regard;
As per the plan, each option is exercisable for one equity share of face value ofH 1 each, at a price to be determined in accordancewith
ESOP 2020. ESOP information is given for the number of shares.
34 Leases
i) The Company's lease asset primarily consist of leases for land and buildings for offices and warehouses having the various
lease terms. The Company also has certain leases of with lease terms of 12 months or less. The Company applies the 'short¬
term lease' recognition exemptions for these leases.
ii) The carrying value of right to use assets and movement thereof are disclosed in note 3.
iii) The following is the carrying value lease liability and movement thereof;
35.1 FAIR VALUE HIERARCHY
i) The Company uses the following hierarchy for fair value measurement of the company's financials assets and liabilities:
Level 1: Quoted prices/NAV (unadjusted) in active markets for identical assets and liabilities at the measurement date.
Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either
directly or indirectly.
Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on
observable market data.
ii) Fair valuation techniques
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.
The following methods and assumptions were used to estimate the fair values:
1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities
approximate their carrying amounts largely due to the short term maturities of these instruments.
2) Borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit
risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values.
The Company's principal financial liabilities 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 comprise
trade and other receivables and cash and cash equivalent that arise directly from its operations.
The Company's activities expose it mainly to market risk, liquidity risk and credit risk. The monitoring and management of
such risks is undertaken by the senior management of the Company and there are appropriate policies and procedures in
place through which such financial risks are identified, measured and managed in accordance with the Company's policies and
risk objectives. It is the Company policy not to carry out any trading in derivative for speculative purposes.
A) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market prices comprises three types of risk: interest rate risk, currency rate risk and other price risks,
such as equity price risk and commodity price risk.
(i) Interest rate risk
Most of the borrowings availed by the Company are subject to interest on floating rate of basis linked to the base
rate or MCLR (marginal cost of funds based lending rate). In view of the fact that the total borrowings of the
Company are quite substantial, the Company is exposed to interest rate risk.
The above strategy of the Company to opt for floating interest rates is helpful in declining interest scenario.
Further, most of the loans and borrowings have a prepayment clause through which the loans could be prepaid
with pre payment premium. The said clause helps the Company to arrange debt substitution to bring down the
interest costs or to prepay the loans out of the surplus funds held.While adverse interest rate fluctuations could
increase the finance cost, the total impact, in respect of borrowings on floating interest rate basis.
37 FINANCIAL RISK MANAGEMENT (Contd..)
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange
rates relates primarily to the Company's operating activities (when revenue or expense is denominated in foreign
currency). The Company evaluates exchange rate exposure arising from foreign currency transactions and follows
established risk management policies.
(iii) Commodity price risk
Commodity price risk is the risk that future cash flow of the Company will fluctuate on account of changes in
market price of key raw materials. The Company is exposed to the movement in the price of key raw materials in
domestic and international markets. The Company has in place policies to manage exposure to fluctuation in the
prices of the key raw materials used in operations.
B) Liquidity Risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at
reasonable price.
The Company uses liquidity forecast tools to manage its liquidity. The Company is able to organise liquidity through
own funds and through working capital loans.The Company has good relationship with its lenders, as a result of which
it does not experience any difficulty in arranging funds from its lenders. Table here under provides the current ratio of
the Company as at the year end.
C) Credit Risk
Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the
Company. The Company is exposed to credit risk from its operating activities, primarily trade receivables. The credit risks
in respect of deposits with the banks, foreign exchange transactions and other financial instruments are only nominal.
The customer credit risk is managed subject to the Company's established policy, procedure and controls relating
to customer credit risk management. In order to contain the business risk, prior to acceptance of an order from a
customer, the creditworthiness of the customer is ensured through scrutiny of its financials, if required, market reports
and reference checks. The Company remains vigilant and regularly assesses the financial position of customers during
execution of contracts with a view to limit risks of delays and default. Further, in most of the cases, the Company
normally allow credit period of 30-90 days to all customers which vary from customer to customer except mould & dies
business. In case of mould & dies business, advance payment is taken before start of execution of the order. In view of
the industry practice and being in a position to prescribe the desired commercial terms, credit risks from receivables are
well contained on an overall basis.
The impairment analysis is performed on each reporting period on individual basis for major customers. Some trade
receivables are grouped and assessed for impairment collectively. The calculation is based on historical data of losses,
current conditions and forecasts and future economic conditions. The Company's maximum exposure to credit risk at
the reporting date is the carrying amount of each financial asset.
38 SEGMENT INFORMATION
Operating segment are defined as components of the Company about which seperate financial information is available that is
evaluated regularly by the chief operating decision-maker, or decision- making company, in deciding how to allocate resources and
in assessing performance. The Company primarily operates in one business segment- Consumer Electronic Goods and Components.
Information about major customers
During the years ended March 31, 2026 and March 31, 2025, the Company derived revenue from two external customers, each
of whom individually accounted for 10% or more of the Company's total revenue from operations. The aggregate revenue from
these customers amounted to INR 48,171.91 lakhs and previous year INR 41,388.45 lakhs, respectively.
For the purpose of Capital Management, Capital includes net debt and toal equity of the Company. The Company manages its
capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure
of the Company is based on management's judgement of its strategic and day-to-day needs with a focus on total equity so as to
maintain investor, creditors and market confidence.The Company may take appropriate steps in order to maintain, or if necessary
adjust, its capital structure.
(i) Excise department has issued show cause notice dated December 22, 2011 for? 765.73 in respect of CTV sold to ELCOT,
Tamil Nadu (a Govt. of Tamil Nadu undertaking) during the period February 2009 to October 2011 for free distribution
by the state Govt. to poor section of the people by paying excise duty on the basis of value determined under section
4A instead of determining the value under section 4 of the Central Excise Act,1944.The department has the contention
that sale is institutional sale & valuation based on MRP under Section 4A is not applicable to the sale to ELCOT. The
appeal made by the Company was allowed by the CESTAT, New Delhi vide order dated March 12, 2014. However, the
excise department has filed the appeal with Supreme Court, which has been admitted by the Supreme Court on January
5, 2015 by condoning the delay in filing the appeal. This matter was last time listed on January 2, 2017.However, the
Excise department filed an Interlocutory Application seeking early hearing of the appeal on July 11,2022. The Hon'ble
Chief Justice found no merit in the Interlocutory Application and accordingly, rejected the application filed by the Excise
Department. The matter is pending for Final Hearing. The matter is next listed on June 18, 2026.
(ii) Directorate of Revenue Intelligence (DRI) had conducted a search on the factory premises of the Company and the
residence of the Promoters on March 8, 2011. The Company has deposited? 145 lakhs as anti-dumping duty on import
of CPT during the period from May 2010 to December 2010, which is refunded later on. A show cause notice dated
40 CONTINGENCIES AND COMMITMENTS
May 29, 2015 has been issued on the Company and raised the demand of Anti-Dumping Duty worth? 738.54 lakhs
along with interest and penalty. The Principal Commissioner of custom has passed an order dated February 28, 2017,
confirming the demand of? 738.54 lakhs along with interest & penalty. The Company has filed an appeal before CESTAT,
Allahabad Bench on June 1,2017. The CESTAT vide its order dated June 18,2019 has allowed the appeal in favour of the
Company and refunded the deposited amount and set aside the order passed by Principal Commissioner of customs,
Noida. However, the Department has filed a Civil Appeal (No. 6544/2020) against the aforesaid Final order of CESTAT,
Allahabad dated June 18,2019. But till date no hearing has been held at Hon'ble Supreme Court and no stay has been
granted to the Department.The matter was last listed on November 25, 2025. The case is put up for final arguments
on July 21,2026.
(iii) Notice for Recovery: The Company received a Notice under the jurisdiction of West District, Tis Hazari Court, Delhi from
M/s Polyblends (India) Pvt. Ltd for recovery of outstanding amount of?43,70,501.19/- with respect to purchase of plastic
raw material and plastic filled compounds. The authorised representative appeared on behalf of the Company on May
20, 2022 before the Hon'ble Court. The Hon'ble Court directed the Company to file written statements. The Company
filed the written statements. The pleadings in this case were completed. After several hearings, the Hon'ble Court vide
order dated August 05, 2023 announced the judgement in favour of the Company and disposed the case. The appellant
aggrieved by the order filed an appeal to the Hon'ble Delhi Hight Court (RFA(COMM)252/2023). The matter was last
listed on May 21,2026. The next date of the hearing not yet announced.
(iv) Notice for Recovery: The Company received a Notice under the jurisdiction of West District, Tis Hazari Court, Delhi
from M/s Niyati Industries through Mr. Vijay Jain for recovery of outstanding amount of? 2,04,980.39/- with respect to
job work of re-enforced (Polystyrene) of plastic raw materials. The authorised representative appeared on behalf of
the Company on May 12, 2022 before the Hon'ble Court and filed the written statements. Replication has been filed
on behalf of the plaintiff on July 23, 2022. The pleadings in this case were complete and issues were framed. After
several hearings, the Hon'ble Court vide order dated January 29, 2024 announced the judgement against the Company
and disposed the case. The Company aggrieved by the order filed an appeal to the Hon'ble District and Sessions
Judge, West, THC (RCA DJ/35/2024). The matter was last listed on May 26, 2026. The case is put up for final arguments
on July 20, 2026.
(v) Notice for Recovery: The Company has received a civil suit filed by M/s Maurya Mould Industries before the Court of
the Civil Judge, Noida, Gautam Budh Nagar, seeking recovery of ?1,54,76,226 towards the alleged cost of repair and
restoration of premises damaged due to a fire incident. The Company has filed its written statement in the matter, and
the proceedings are currently pending before the Hon'ble Court. The matter was last listed on May 18, 2026. The next
date of the hearing not yet announced.
(vi) Company has given corporate guarantee to banks for borrowings taken by its wholly owned subsidiary (i.e PG Technoplast
Private Limited), Step down subsidiary (i.e. Next Generation Manufacturing Electronocs Private Limited) and 50:50 Joint
Venture (i.e. Goodworth Eletronics Private Limited)
43 AUDIT TRAIL
The Company has accounting software used for the creation and maintenance of its books of account. The audit trail (edit log)
feature including the system-level database logs in the said software are enabled and remained operational throughout the
financial year for all relevant transactions. Based on the Company's internal assessment, there has been no instance of the audit
trail feature being tampered with during the year.
44 EVENTS AFTER BALANCE SHEET DATE
No adjusting or significant non- adjusting events have occurred between the reporting date and date of approval for issuance of
these standalone financial statements, except given in note 49(i) of the standalone financial statements.
Note: 1: The decrease in the Current Ratio is mainly due to surplus fund kept in FDR was utilised for repayment of borrowings &
capital investments.
Note: 2: The increase in the debt-equity ratio is mainly on account of increased utilisation of working capital limits and bill
discounting facilities.
Note: 3: The debt service coverage ratio improved during the year mainly due to an increase in earnings available for debt service.
Note: 4: The net capital turnover ratio increased during the year primarily due to a proportionate reduction in working capital.
Note: 5: The improvement in net profit margin during the year is primarily attributable to the Company's strategic shift towards a
higher proportion of high-margin products in its sales mix.
(a) The difference in inventory is due to goods in transit included in books of accounts which is not considered in DP statements
filled with bankers.
(b) The difference in creditors is due to Letter of credit taken in books of account on the basis of LC open with banks but in DP
statements are taken on basis of acceptances.
(c) The difference in debtors is due to group company & joint ventures debtors are excluded in DP statements filled with bankers.
(d) The Company has taken DP unit wise, hence, the figures may not directly link or get tallied with the financial statements.
(a) The difference in inventory is due to goods in transit included in books of accounts which is not considered in DP statements
filled with bankers.
(b) The difference in creditors is due to Letter of credit taken in books of account on the basis of LC open with banks but in DP
statements are taken on basis of acceptances.
(c) The difference in debtors is due to group company & joint ventures debtors are excluded in DP statements filled with bankers.
(d) The Company has taken DP unit wise, hence, the figures may not directly link or get tallied with the financial statements.
48 Data Back Up:- As per the MCA notification dated August 5, 2022, the Central Government has notified the Companies
(Accounts) Fourth Amendment Rules, 2022. As per the amended rules, the Companies are required to maintain the back-up of the
books of account and other relevant books and papers in electronic mode that should be accessible in India at all the time. Also,
the Companies are required to create back-up of accounts on servers physically located in India on a daily basis.
The books of account along with other relevant records and papers of the Company are maintained in electronic mode. These are
readily accessible in India at all times and a back-up is maintained in servers situated in India and The Company and its officers have
full access to the data in the servers.
49 (i)Proposed Dividend:-The Board of Directors at its meeting held on May 27,2026 recommended payment of a final dividend
of? 0.25 per equity share of Re. 1/- each ,subject to approval of its shareholders at the ensuing Annual General Meeting.s,
(ii) During the year 2025-26, the Company has paid final propsed dividend ralated to year 2024-25 of W 0.25/- per share on fully
paid-up equity share of W 1/- each amounting to W 710.19 Lakhs.
50 Qualified Institutional Placement (QIP): On December 10, 2024, the Company has approved the issue and allotment of
2,14,59,218 fully paid-up equity shares of the Company to eligible Qualified Institutional Buyers in accordance with SEBI (Issue of
Capital and Disclosure Requirements) Regulations, 2018 at an issue price of? 699 per share (including securities premium of? 698
per share) for a consideration of? 1,49,999.93 lakhs. The post allotment, paid-up Equity Capital of the Company stands increased
to? 2,830.94 lakhs consisting of 28,30,93,658 Equity Shares of face value of? 1/- each as at March 31,2025.
Out of the above proceeds, during the current year, the Company has utilized an amount of? 55,627.61 lakhs & cumulative
utilization? 1,31,535.11 lakhs till March 31, 2026 out of the Net proceeds of? 1,47,755.93 lakhs after considering? 1,914.98 lakhs
pertaining to QIB issue expenditure (net of GST input availed? 329.02 lakh) towards the objects of this issue and unspent amount
of? 16,220.82 lakh has been kept into FDR's and bank accounts as of March 31,2026.
51 OTHER STATUTORY INFORMATION
i) The Company does not have any Benami property, where 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 Company.
iii) The Company does not have any charges or satisfaction which is yet to be registered with 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 is not a declared wilful defaulter by any bank or financial Institution or other lender, in accordance with the
guidelines on wilful defaulters issued by the Reserve Bank of India, during the year ended March 31,2026 and March 31 2025.
vi) The Company has 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, except as mentioned below.
vii) 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.
viii) 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.
51 OTHER STATUTORY INFORMATION (Contd..)
ix) The Company has not entered into any scheme of arrangement which has an accounting impact on current year or previous year.
x) The Company has complied with the number of layers prescribed under the Companies Act, 2013
xi) The title deeds of all the immovable properties held by the Company (other than properties where the Company is a lessee
and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.
xii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both
during the current or previous year.
xiii) The borrowings obtained by the Company from banks or financial institution have been applied for the purposes for which
such loans were taken.
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