s) Provisions and Contingent Liabilities
A provision is recognised if as a result of a past event,
the Company has a present obligation (legal or
constructive) that can be estimated reliably and it is
probable that an outflow of economic benefits will be
required to settle the obligation. Provisions are
recognised at the best estimate of the expenditure
required to settle the present obligation at the Balance
Sheet date. If the effect of time value of money is
material, provisions are discounted using a current
pre tax rate that reflects, when appropriate the risks
specific to the liability.
A contingent liability exists when there is a possible
obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non
occurrence of one or more uncertain future events not
wholly within the control of the Company or a present
obligation that arises from past event where it is either
not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate
of the amount cannot be made. Contingent liabilities
do not warrant provisions but are disclosed unless the
possibility of outflow of resources is remote.
Contingent assets are neither recognised nor
disclosed in the Standalone Ind AS Financial
Statements. However, when the realisation of income
is virtually certain then the related asset is not a
contingent asset and its recognition is appropriate.
The Company uses significant judgement to assess
contingent liabilities. The Company faces litigations
and claims from various authorities and parties which
are connected with a degree of uncertainty. Such
litigations comprise complex issues which can only be
resolved over extended time periods. Accordingly,the
assessment of whether an obligation exists on the
Balance Sheet date as a result of an event in the past
and whether a future cash outflow is likely and the
obligation can be reliably estimated, largely depends
on estimates by Management including past
precedents based on similar facts, opinions and
consultation with experts handling the litigations and
similar other weighing factors.
t) Research and Development
Research costs are expensed as incurred. Product
development costs are capitalised when technical and
commercial feasibility of the products is
demonstrated, future economic benefits are probable,
the Company has an intention and ability to complete
and use or sell the product and the cost can be
measured reliably. In other cases, such development
costs are taken to the Statement of Profit and Loss.
The costs which can be capitalised include the cost of
material, direct labour, overhead costs that are directly
attributable to preparing the asset for its intended use.
u) Rounding of Amounts
All amounts disclosed in the Standalone Financial
Statements and accompanying notes have been
rounded off to the nearest lakhs as per the
requirement of Schedule III of the Companies Act,
2013, unless otherwise stated.
v) Dividends
Dividend proposed is recognised in the period in which
interim dividends are approved by the Board of
Directors or in respect of final dividend when approved
by shareholders.
w) Borrowing Cost
Borrowing costs directly attributable to the acquisition
or construction of qualifying assets are capitalised as
part of the cost of such assets. A qualifying asset is one
that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs
are charged to the Statement of Profit and Loss for the
period for which they are incurred.
x) Government Grants
Government grants are not recognised until there is a
reasonable assurance that the Company will comply
with the conditions attached to them and the grants
will be received.
Government grants related to expenses, are
recognised in the Statement of Profit and Loss on a
systematic basis over the periods in which the
Company recognises as expense the related cost for
which the grants are intended to compensate.
Government grants related to income under State
Investment Promotion Scheme linked with Goods and
Services Tax (GST) payment, are recognised in the
Statement of Profit and Loss on the event they become
receivable.
Government grants related to an asset, are recognised
on a systematic basis, over the expected useful life of
the related assets.
MOOWR benefits arising from deferment of Customs
Duty and Goods & Services Tax on import of capital
goods under Manufacturing & Other Operations in
Warehouse Regulation (MOOWR) Scheme are netted
off from Property, Plant and Equipment.
y) Royalty
The Company account for royalty in accordance with
the relevant licence/technical collaboration
agreements.
z) Recent pronouncements
Ministry of Corporate Affairs ("MCA") notifies new
Standards or amendments to the existing Standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the Year ended
31st March , 2026, MCA has notified amendments to Ind
AS 1 "Presentation of Financial Instruments", Ind AS 7
"Statement of Cash Flows", Ind AS 107 "Financial
Instruments: Disclosures" applicable w.e.f. 1st April,
2025 and Ind AS 12 regarding International Tax Reform
- Pillar Two Model Rules applicable immediately. The
Company has reviewed the new pronouncements and
based on its evaluation has determined that it does not
have any significant impact in its Financial
Statements.
Notes:
1. Buildings include cost of shares of ?500 (previous year ?500l in a Co-operative Society.
2. Other Adjustments (Gross Block) include Interest capitalised ?752 lakhs, ?2885 lakhs, ?67 lakhs, ?Nil and ?Nil (previous year ? 1556
lakhs), ?9411 lakhs, ?665 lakhs, lakhs and ?1 lakh) in Buildings, Plant and Equipments, Electrical Installations and Fittings, Data
Processing and Office Equipment respectively.
3. Electrical Installations and Fittings include ?636 lakhs (previous year ?636 lakhs) paid to State Electricity Board not represented by
physical assets owned by the Company.
d) Dividends:
The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the
approval of Shareholders in the ensuing Annual General Meeting except in case of interim dividend.
In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets
of the Company, after distribution of all preferential amounts. However no such preferential amounts exist currently. The
distribution will be in proportion to the number of equity shares held by the Shareholders.
Description of Reserves
a) Capital Reserve: Capital Reserve represents reserve of the Company which is not available for distribution as dividend.
b) Capital Redemption Reserve: Capital Redemption Reserve is reserve created on redemption of preference shares.
c) Securities Premium: Securities Premium represents excess amount received by the Company over the face value of its share to be
utilised for specific purposes only as per Section 52 of the Companies Act, 2013.
d) Amalgamation Reserve: Amalgamation Reserve is reserve created on amalgamation of erstwhile Float Glass India Limited with the
Company.
e) General Reserve: General Reserve is free reserve of the Company which is kept aside out of Company's profits to meet future
requirements as and when they arise. The Company had transferred a portion of the Profit After Tax to General Reserve pursuant to
earlier provisions of the Companies Act, 1956. Mandatory transfer to General Reserve is not required under the Companies Act, 2013.
f) Retained Earnings: Retained Earnings are the accumulated profits of the Company after reduction of dividend and Income tax on
dividend.
g) Other Reserves - FVTOCI: Other Comprehensive Income represents actuarial gain/loss on remeasurement of defined benefit
obligation and fair valuation of Investments.
33. Disclosure as per Ind AS 19 'Employee Benefits'
a) Defined Contribution Plans:
The Company pays fixed contribution to funds below at predetermined rates to appropriate authorities:
i) Provident Fund
An amount of ? 1332 lakhs (previous year ? 1093 lakhs) for the year is recognised as expense on this account and charged
to the Statement of Profit and Loss.
ii) Superannuation Fund
An amount of ?32 lakhs (previous year ?31 lakhs) for the year is recognised as expense on this account and charged to
the Statement of Profit and Loss.
iii) Employee State Insurance/Labour Fund
An amount of ?63 lakhs (previous year ?53 lakhs) for the year is recognised as expense on this account and charged to
the Statement of Profit and Loss.
b) Defined Benefit Plans:
The Company operates post retirement defined benefit plan for gratuity which is funded.
For details about the related employee benefits plan, See Note 1B(m) of Statement of Accounting Policies.
i) Reconciliation of the Net Defined Benefit Liability
The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit
liability and its components
** Contingent Liability-Custom Duty include:
The Company has received several show-cause/demand notices from Custom Authorities alleging mis-classification of imported
items. The Company is vehemently contesting such notices on legal grounds through expert consultants, and in the past in similar
cases, such matters have been decided in favour of the Company. The Company is in the process of filing appeals/writ petition against
the above notices. Therefore, the Company does not foresee any significant liability on such matters. Some of the above notices
pertain to overlapping demands of ? 15377 Lakhs (previous year ? 15377 Lakhs), which has been excluded from the above.
*** As on 31st March, 2026, the Company has a Contingent Liability of ? 19394 Lakhs (previous year ? 17123 Lakhs) towards Custom Duty
and Goods & Services Tax for capital goods imported under Manufacturing & Other Operations in Warehouse Regulation (MOOWR)
Scheme. The Company's liability towards such Custom Duty and Goods & Services Tax shall be contingent upon at the time of filing
of Bill of Entry for home consumption. The event of such contingency occurring is remote.
i) The Company's Operating Segments are established on the basis of the information that is evaluated by the "Chief Operating
Decision Maker" as defined in Ind AS 108 - Operating Segments in deciding how to allocate resources and in assessing performance.
The segments have been identified taking into account nature of products and services,production processes,risks and returns and
the internal business reporting systems.
ii) For management purposes, the Company is organised into two major operating divisions - Automotive Glass and Float Glass. These
divisions are the basis on which the company reports its primary segment information.
iii) All segment Assets and Liabilities are directly attributable to the segment. Segment assets include all operating assets used by the
segment and consist primarily of Fixed Assets, inventories, trade receivables, advances and operating cash and bank balances.
Segment liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities. Investments, tax related
assets, loans and other Assets and Liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as
unallocable.
iv) Segment revenues and segment results include transfers between business segments. Pricing is decided by marketing and
logistics department. These transfers are eliminated on consolidation.
v) Joint expenses are allocated to business segments on a reasonable basis. All other revenues and expenses are directly attributable
to the segments. They do not include interest income on inter corporate deposit and interest expense.
vi) There are no non current assets located outside India.
vii) Revenue derived from a single external customer amounting to more than 10% of the entity's revenue attributable to Automotive
glass segment - ?87297 Lakhs (Previous Year ?65693 Lakhs)
39. Financial Risk Management
The Company's activities expose it to foreign currency risk, liquidity risk, interest rate risk and credit risk. In order to minimise any
adverse effects on the financial performance of the Company derivative financial instruments, such as foreign exchange forward
contracts and foreign currency/commodity swaps are entered into by the Company to hedge certain foreign currency and commodity
exposure. Derivatives are used exclusively for hedging and not as trading or speculative instruments.
The Company is exposed to the following risks from its use of financial instruments:
a) Credit Risk
b) Liquidity Risk
c) Foreign Currency Risk
d) Interest Rate Risk
a) Credit Risk
Credit risk arises from the possibility that the counter party may not be able to settle their obligations. To manage trade receivable,
the Company periodically assess the financial reliability of customers, taking into account the financial conditions, economic trends,
analysis of historical bad debts and ageing of such receivables.
b) Liquidity Risk
Liquidity risk refers to the risk to meet its financial obligations. The objective of liquidity risk management is to maintain sufficient
liquidity and to ensure funds are available for use as per the requirements.
The Company has an appropriate liquidity risk management framework for the management of short, medium and long term
funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate cash reserves,
banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the
maturity profiles of financial Assets and Liabilities.
c) Foreign Currency Risk
The Company has exposure to foreign currency risk on account of its payables and receivables in foreign currency which are
mitigated through regular reviews by the management. The Company enters into derivative financial instruments to mitigate the
foreign currency risk and interest rate risk including,
i) forward foreign exchange contracts for foreign currency risk mitigation
ii) foreign currency interest rate swaps to mitigate foreign currency and interest rate risk on foreign currency loan.
Sensitivity Analysis
The Company is mainly exposed to JPY, USD and EURO.
The following table provides details of the Company's sensitivity to a 2% increase and decrease in the INR against the relevant
foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items as tabulated
above and adjusts their translation at the Year end for a 2% change in foreign currency rates. The sensitivity analysis includes
external loans. A positive number below indicates an increase in profit or equity and vice-versa.
d) Interest Rate Risk
The Company is exposed to interest rate risk arising mainly from long term borrowings with floating interest rates. The Company is
exposed to interest rate risk because the cash flows associated with floating rate borrowings will fluctuate with changes in interest
rates. The Company manages the interest rate risks by entering into different kinds of loan arrangements with varied terms (e.g.
fixed, floating, rupee,foreign currency, etc.).
Fair Value Sensitivity Analysis for Fixed-Rate Instruments
The Company's fixed rate instruments are carried at amortised cost. They are therefore not subject to interest rate risk, since
neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
Cash Flow Sensitivity Analysis for Variable-Rate Instruments
A change of 50 basis points in interest rates at the reporting date would have increased/(decreased) profit or loss by the amounts
shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is
performed on the same basis for the previous year.
b) Fair Value Hierarchy
This Section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a)
recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the Financial
Statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its
financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows
underneath the table.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as
follows.
Level 1: Hierarchy includes financial instruments measured using quoted prices. This includes investments in quoted equity
instruments. Quoted equity instruments are valued using quoted prices on recognised stock exchange.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all 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 is not based on observable market data, the instrument is included in level 3. The
fair value of financial Assets and Liabilities included in Level 3 is determined in accordance with generally accepted pricing models
based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes of similar
instruments. This level includes derivative MTM assets/liabilities. Fair value of derivative assets/liabilities such as interest rate
swaps and foreign exchange forward contracts are valued using valuation techniques, which employs the use of market observable
inputs. The most frequently applied valuation techniques include forward pricing and swap models and present value calculations.
There have been no transfers in either direction for the years ended 31st March, 2026 and 31st March, 2025.
The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly transaction
between market participants.
42. Capital Management
The Company's objectives when managing capital are to:
safeguard its ability to continue as a going concern, so that it can continue to provide returns for Shareholders and benefits for other
Stakeholders and maintain an appropriate capital structure of debt and equity.
The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent
management in deployment of funds and sourcing by leveraging opportunities in domestic and international financial markets so as to
maintain investors, creditors and markets confidence and to sustain future development of the business. The Board of Directors
monitors the return on capital, which the Company defines as result from operating activities divided by total Shareholders' equity. The
Board of Directors also monitors the level of dividends to Equity Shareholders.
Under the terms of major borrowing facilities, the Company is required to comply with the financial covenants as may be prescribed by
the lenders. There have been no breaches in the financial covenants of any interest bearing borrowings.
The Company monitors capital, using a medium term view of three to five years, on the basis of a number of financial ratios generally
used by industry and by the rating agencies. The Company is not subject to externally imposed capital requirements.
The Company monitors capital using gearing ratio which is net debt divided by total equity. Net debt comprises of long term and short
term borrowings less cash and cash equivalent. Equity includes equity share capital and reserves that are managed as capital. The
gearing ratio at the end of the reporting period was as follows:
47. The Company has used the borrowings from Banks and Financial Institutions for the specific purposes, for which it was taken at
the Balance Sheet date.
48. The Company does not have any Immovable Property (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company.
49. The Company has not revalued its Property, Plant & Equipment or Intangible Assets during the year.
50. No Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under
the Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand or without specifying any
terms or period of repayment except loans of ?8770 lakhs to 3 subsidiary companies at the Balance Sheet date.
51. The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the Rules
made thereunder.
52. G overnment Grants represents Incentives/Subsidies under State Investment Promotion Schemes of ?3474 Lakhs (previous year
?2010 Lakhs).
54. Exceptional Item of ?654 Lakhs represents past service cost charge of employees post employment Defined Benefits Plan
pursuant to consolidation of multiple existing labour, legislations into a unified framework consisting four Labour Codes,
collectively referred to as the "New Labour Codes". Considering that, this impact is driven by regulatory change and is
non-recurring in nature, it has been classified as "Exceptional Item".
The Company continues to monitor the develpment relating to New Labour Codes and would review the estimates as further
clarifications and rules are notified.
55. The quarterly returns/statements of current assets filed by the Company with Banks/Financial Institutions in respect of
borrowings from Banks/Financial Institutions on the basis of security of current assets are generally in agreement with the books
of accounts.
56. The Company has not been declared wilful defaulter by any Bank/Financial Institution/other lender.
57. The Company does not have any transaction with companies struck off under Section 248 of Companies Act, 2013/Section 560 of
Companies Act 1956.
58. There is 1 charge yet to be satisfied with the Registrar of Companies beyond the statutory period as on the date of approval of
Financial Statements.
59. The Company does not have any layers prescribed under Clause (87) of Section 2 of the Act, read with Companies (Restriction on
number of Layers) Rules, 2017.
60. No Sch eme of Arrangements has been approved by the competent authority in terms of Section 230 to 237 of Companies Act, 2013.
61. The Company's four subsidiaries namely AIS Glass Solutions Limited, GX Sales & Services Limited, AIS Distribution Services
Limited and AIS Adhesives Limited had filed a Composite Scheme of Arrangement before NCLT for their amalgamation with the
surviving entity, AIS Glass Solutions Limited. The same has been approved and the merger has become effective from
01st July, 2025 along with Capital Reduction in the Transferee Company. Further, the name of merged entity was changed to AIS
Consumer Glass Solutions Limited.
The impact of the above merger and capital reduction has been considered in the Standalone and Consolidated Financial
Statements.
62. The Company has not advanced/loaned/invested funds(either borrowed funds or share premium or any other sources or kind of
funds) to any other person(s) or entity(ies) including foreign entities (intermediaries) with understanding (whether recorded in
writing or otherwise) that the intermediary shall
i. Directly or indirectly lend or invest in other persons or entities identified in any other matter whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or
ii. Provide any guarantee or security or the like to or on behalf of the Ultimate Beneficiaries.
63. 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
i. Directly or indirectly lend or invest in other persons or entities identified in any matter whatsoever by or on behalf of Funding
Party (Ultimate Beneficiaries) or
ii. Provide any guarantee or security or the like on behalf of Ultimate Beneficiaries.
64. The Company does not have any transaction 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.
65. The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.
66. Amount in the Financial Statements are presented in ? lakhs except for per share data and as other-wise stated. Previous years
figures have been regrouped/rearranged wherever considered necessary.
| 