2.15 Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of past event and it is
probable that an outflow of resources will be required to settle the said obligation and the amounts of the said obligation can be
reliably estimated. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best
estimates.
2.16 Amortisation of Expenses
Deferred Revenue Expenditure is amortised over a period of five years.
2.17 Contingencies
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of
outflow of resources is remote, no provision or disclosure is made.
Contingent assets are disclosed where an inflow of economic benefits is certain.
2.18 Revenue Recognition
Revenue from contracts with customers is recognised when a performance obligation is satisfied by transfer of promised goods
or services to a customer.
For performance obligation satisfied over time, the revenue recognition is done using input method by measuring the progress
towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred
to-date, to the total estimated cost attributable to the performance obligation as it best depicts the transfer of control that occurs
as costs are incurred.
The Company transfers control of a good or service over time and therefore satisfies a performance obligation and recognises
revenue over a period of time if one of the following criteria is met:
(a) the customer simultaneously consumes the benefit of the Company’s performance or
(b) the customer controls the asset as it is being created/enhanced by the Company’s performance or
(c) there is no alternative use of the asset and the Company has either explicit or implicit right of payment considering legal
precedents,
In all other cases, performance obligation is considered as satisfied at a point in time.
The revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied. Transaction price is the
amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer
excluding amounts collected on behalf of a third party. The Company includes variable consideration as part of transaction price
when there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant
reversal of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is
resolved. Variable consideration is estimated using the expected value method or most likely amount as appropriate in a given
circumstance. Payment terms agreed with a customer are as per business practice and the financing component, if significant, is
separated from the transaction price and accounted as interest income.
Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in profit or loss
immediately in the period in which such costs are incurred. Incremental costs of obtaining a contract, if any, and costs incurred
to fulfil a contract are amortised over the period of execution of the contract in proportion to the progress measured in terms of a
proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.
Significant judgments are used in:
a) Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue
recognition is done by measuring the progress towards complete satisfaction of performance obligation.
b) Determining the expected losses, which are recognised in the period in which such losses become probable based on the
expected total contract cost as at the reporting date.
c) Determining the method to be applied to arrive at the variable consideration requiring an adjustment to the transaction price.
(i) Revenue from operations
Revenue includes adjustments made towards liquidated damages and variation wherever applicable. Escalation and
other claims, which are not ascertainable/acknowledged by customers are not taken into account.
A. Revenue from sale of manufactured and traded goods including contracts for supply/commissioning of complex
plant and equipment is recognised as follows:
Revenue is recognised when the control of the same is transferred to the customer and it is probable that
the Company will collect the consideration to which it is entitled for the exchanged goods. Revenue from
commissioning of complex plant and equipment is recognised either 'over time’ or 'in time’ based on an
assessment of the transfer of control as per the terms of the contract.
B. Revenue from construction/project related activity is recognised as follows:
• Cost plus contracts: Revenue from cost plus contracts is recognised over time and is determined with
reference to the extent performance obligations have been satisfied. The amount of transaction price
allocated to the performance obligations satisfied represents the recoverable costs incurred during the
period plus the margin as agreed with the customer.
• Fixed price contracts: Contract revenue is recognised over time to the extent of performance obligation
satisfied and control is transferred to the customer. Contract revenue is recognised at allocable transaction
price which represents the cost of work performed on the contract plus proportionate margin, using the
percentage of completion method. Percentage of completion is the proportion of cost of work performed to-
date, to the total estimated contract costs. With respect to contracts, where the outcome of the performance
obligation cannot be reasonably measured, but the costs incurred towards satisfaction of performance
obligation are expected to be recovered, the revenue is recognised only to the extent of costs incurred.
For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus recognised
losses as the case may be) exceeds the progress billing, the surplus is shown as contract asset and termed as
“Unbilled revenue”. For contracts where progress billing exceeds the aggregate of contract costs incurred to-
date plus recognised profits (or minus recognised losses, as the case may be), the surplus is shown as contract
liability and termed as “Excess of billing over revenue”. Amounts received before the related work is performed
are disclosed in the Balance Sheet as contract liability and termed as “Advances from customer”. The amounts
billed on customer for work performed and are unconditionally due for payment i.e. only passage of time is
required before payment falls due, are disclosed in the Balance Sheet as trade receivables. The amount of
retention money held by the customers pending completion of performance milestone is disclosed as trade
receivables.
Impairment loss (termed as provision for foreseeable losses in the financial statements) is recognised in profit
or loss to the extent the carrying amount of the contract asset exceeds the remaining amount of consideration
that the Company expects to receive towards remaining performance obligations (after deducting the costs
that relate directly to fulfill such remaining performance obligations). The Company recognises impairment loss
(termed as provision for expected credit loss in the financial statements) on account of credit risk in respect of a
contract asset using expected credit loss model on similar basis as applicable to trade receivables.
C. Revenue from rendering of services is recognised over time as the customer receives the benefit of the
Company’s performance and the Company has an enforceable right to payment for services transferred.
D. Revenue from contracts for rendering of engineering design services and other services which are directly
related to the construction of an asset is recognised on the same basis as stated in (B) above.
E. Commission income is recognised as the terms of the contract are fulfilled.
F. Other operational revenue represents income earned from the activities incidental to the business and is
recognised when the performance obligation is satisfied and right to receive the income is established as per
the terms of the contract.
(ii) Other income
A. Interest income on investments and loans is accrued on a time basis by reference to the principal outstanding
and the effective interest rate including interest on investments classified as fair value through profit or loss or
fair value through other comprehensive income. Interest receivable on customer dues is recognised as income
in the Statement of Profit and Loss on accrual basis provided there is no uncertainty of realisation.
B. Dividend income is accounted in the period in which the right to receive the same is established.
C. Other items of income are accounted as and when the right to receive such income arises and it is probable that
the economic benefits will flow to the Company and the amount of income can be measured reliably.
2.19 Borrowing Costs
i. Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that
necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their intended use or sale.
ii. All other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.
iii. The Company determines the amount of borrowing costs eligible for capitalisation as the actual borrowing costs incurred on
that borrowing during the period less any interest income earned on temporary investment of specific borrowings pending
their expenditure on qualifying assets, to the extent that an entity borrows funds specifically for the purpose of obtaining a
qualifying asset. In case if the Company borrows generally and uses the funds for obtaining a qualifying asset, borrowing
costs eligible for capitalisation are determined by applying a capitalisation rate to the expenditures on that asset. The
Company suspends capitalisation of borrowing costs during extended periods in which it suspends
2.20 Earnings Per Share (‘EPS’)
Basic earnings per share is calculated by dividing the net profit attributable to the equity shareholders of the Company with the
weighted average number of equity shares outstanding during the financial year, adjusted for treasury shares.
Diluted Earnings per share is calculated by dividing net profit attributable to the equity shareholders of the Company with the
weighted average number of shares outstanding during the financial year, adjusted for the effects of all dilutive potential equity
shares.
2.21 Statement of Cash Flows
Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from
operating activities is reported using indirect method, adjusting the net profit for the effects of:
i. changes during the period in inventories and operating receivables/payables transactions of a non-cash nature;
ii. non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses and
undistributed profits of associates; and
iii. All other items for which the cash effects are investing or financing cash flows.
2.22 Unclaimed Dividend
The Ministry of Corporate Affairs had notified provisions relating to unpaid / unclaimed dividend under Sections 124 and 125 of the
Companies Act, 2013 and the Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF
Rules)
As per these Rules, dividends which are not encashed / claimed by the shareholder for a period of seven consecutive years shall
be transferred to the Investor Education and Protection Fund (IEPF) Authority. The IEPF Rules mandate the companies to transfer
such shares of Members of whom dividends remain unpaid / unclaimed for a period of seven consecutive years to the demat
account of IEPF Authority.
2.23 Dividend Distribution
Dividends paid (including income tax thereon) are recognised in the period in which the interim dividends are approved by the
Board of Directors, or in respect of the final dividend when approved by shareholders.
2.24 Segment Reporting
Operating Segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The company has identified Managing Director and Chief Financial Officer as chief operating decision maker.
2.25 Investments in Associates:
Investments in associates are recognised at cost. The company provides for any permanent diminution, if any, in value of such
investment.
3. Critical Judgements and Estimation in applying the Company’s Accounting Policies
The estimates and judgements used in the preparation of the financial statements are based on historical experience and various
other assumptions and factors (including expectations of future events), that the Company believes to be reasonable under the
existing circumstances. The said estimates and judgements are based on the facts and events, that existed as at the reporting date,
or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates include useful
lives of Property, Plant and Equipment, Intangible Assets, allowance for doubtful debts/advances, future obligations in respect of
retirement benefit plans, expected cost of completion of contracts, provision for rectification costs, fair value measurement etc.
Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.
The areas involving critical estimates and judgements are:
a) Estimation of current tax expenses and payable.
b) Recognition of deferred tax assets for carried forward tax losses - Refer Note No. 10
c) Revenue Recognition - Refer Note No. 23
d) Estimation of defined benefit obligation - Refer Note No. 28
Management believes that any reasonable possible change in any of these assumptions would not cause the carrying amount to exceed
its recoverable amount.
Discount Rates - Management estimates discount rates using pre-tax rates that reflect current market assessment of the risks
specific to the CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been
incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Company and its
operating segments and is derived from its weighted average cost of capital.
Growth Rates - The growth rates are based on industry growth forecasts. Management determines the budgeted growth rates
based on past performance and its expectations on demand condition. The weighted average growth rates used are consistent with
industry reports.
7. Investments (Contd.)
b) The Company has acquired shares in Techno Industries Private limited in Three Tranches dated 30th July ,2024, 1st July, 2025 and
26th December, 2025 respectively In the first tranche company acquired 96,25,000 equity shares amounting Rs. 175.00 Crores
representing total 77% of the shareholding of Techno Industries Private limited , In the second tranche company acquired 13,75,000
equity shares amounting Rs. 25.00 crores representing total 11% of the shareholding of Techno Industries Private limited and in the
third tranche company acquired 14,99,999 equity shares amounting Rs. 22.70 Crores representing total 12% of the shareholding of
Techno Industries Private limited making it wholly owned subsidiary of the company.
c) The Company incorporated a Wholly Owned Subsidiary, Lloyds Advance Defence Systems Limited, on December 11,2025 with the
capital infusion amounting Rs 0.06 Crores.
d) During the year ended March 31, 2026, the Company acquired 87,500 equity shares of Geomysore Services India Private Limited
(“Geomysore”) for an aggregate consideration of Rs.14.00 Crores pursuant to an agreement dated November 10, 2025 for settlement
of outstanding trade receivables aggregating to Rs.14.00 Crores arising from engineering and technical services rendered by
the Company. The shares were allotted at an issue price of Rs.1,600 per equity share comprising face value of Rs.1 per share and
securities premium of Rs.1,599 per share. The consideration was discharged through adjustment of the outstanding receivable and
accordingly the receivable stood extinguished upon allotment of the shares.
Subsequently Geomysore undertook a Rights Issue of equity shares during the year. Pursuant thereto, the Company subscribed to
and was allotted an additional 1,75,000 equity shares for cash consideration of Rs. 4.37 crores in accordance with the terms of the
Rights Issue.
Consequently as at March 31, 2026, the Company holds 2,62,500 equity shares in Geomysore Services India Private Limited
representing 2.16% of its paid-up equity share capital comprising 1,21,58,415 equity shares.
The aggregate investment made by the Company in Geomysore during the year is summarized below:
16. Equity Share Capital (Contd.)
i) On June 05, 2025, the Board of Directors has considered and approved the allotment of 30,85,17,476 partly paid-up Equity Shares
of face value Re.1/- each of our Company at a price of Rs.32/- per Equity Share (including a premium of Rs.31/- per Equity Share)
(“Allotment”) to the eligible Equity shareholders of our Company of which Rs.16/- per Equity Share (including a premium of Rs.15.50
per Equity Share) has been paid on application (“Allotment”) and the balance amount shall be payable in not more than two
Calls, with terms and conditions such as the number of Calls and the timing and quantum of each Call as may be decided by our
Board / Securities Issue Committee from time to time to be completed on or prior to March 31, 2026. Accordingly pursuant to the
Allotment, the Issued Capital of the Company has increased to Rs. 147,40,27,942 and paid-up equity share capital has increased to
Rs.131,97,69,204.
On July 01,2025, the Nomination and Remuneration Committee has approved allotment of 68,300 equity shares at an Exercise Price
of Rs. 9.50 towards the Employees Stock Option Plan (ESOP) under the Employee Stock Option Scheme 2021 to the Employees
of the Company. Accordingly pursuant to the Allotment, the Issued Capital of the Company has increased to Rs. 147,40,96,242 and
paid-up equity share capital has increased to Rs. 131,98,37,504.
On November 07, 2025, the Nomination and Remuneration Committee has approved allotment of 1,05,784 equity shares at an
Exercise Price of Rs. 9.50 towards the Employees Stock Option Plan (ESOP) under the Employee Stock Option Scheme 2021
to the Employees of Lloyds Infrastructure and Construction Limited , an Associate of the Company . Accordingly, pursuant to the
Allotment, the Issued Capital of the Company has increased to Rs. 147,42,02,026 and paid-up equity share capital has increased to
Rs. 131,99,43,288.
On Feburary 04, 2026, the Nomination and Remuneration Committee has approved allotment of 43,56,000 equity shares at an
Exercise Price of Rs. 7.50 & 15,24,060 equity shares at an Exercise Price of Rs. 9.50 towards the Employees Stock Option Plan
(ESOP) under the Employee Stock Option Scheme 2021 to the Employees of the Company . Accordingly pursuant to the Allotment,
paid-up equity share capital has increased from Rs.131,99,43,288 to Rs. 132,58,23,348.
On March 11, 2026, the Board of Directors has considered and approved the conversion of partly paid up shares to fully paid up of
22,72,47,052 of face value Re.1/- each. Accordingly pursuant to the conversion , the paid up Capital of the Company has increased
from Rs. 132,58,23,348 to Rs.143,94,46,874.
ii) In FY 24-25 the company has issued 1,76,05,634 share as fully paid up without payment being received in cash or as bonus. The
Parent company has not bought back any shares in last 5 Years.
Defined Benefit Plan
The Company operates one Defined benefit plan, viz., gratuity benefit, for its employees. The Gratuity plan provides for a lump sum
payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15
days basic salary payable for each completed year of service as per the Payment of Gratuity Act. The company does not have any fund
for gratuity liability and the same is accounted for as provision.
Under the other long term employee benefit plan, the company extends benefit of compensated absences to the employees, whereby
they are eligible to carry forward their entitlement of earned leave for encashment upon retirement / separation or during tenure of
service. The Plan is not funded by the company.
28. Employee Benefits Expenses As Per IND AS - 19 (Contd.)
Compensated Absences
Compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the
related services are recognised as undiscounted liability at the balance sheet date. Compensated absences which are not expected to
occur within twelve months after the end of the period in which the employee renders the related services are recognised as an actuarially
determined liability at the present value of the defined benefit obligation at the Balance Sheet Date.
Defined Contribution Plan
Contributions to Defined Contribution Plans are recognised as expense when employees have rendered services entitling them to
such benefits.
The Group provides benefits such as Provident Fund Plans to its employees which are treated as Defined Contribution Plans.
Due to its defined benefit plans, the Company is exposed to the following significant risks:
Changes in bond yields - A decrease in bond yields will increase plan liability.
Salary risk - The present value of the defined benefit plans liability is calculated by reference to the future salaries of the plan participants.
As such, an increase in the salary of the plan participants will increase the plan’s liability.
35. Related Party Disclosures (Contd.)
(c) Customisation of products to suit the Company’s specific requirements, and
(d) Enhancement of the Company’s purchase cycle and assurance of just in time supply with resultant benefits-notably on
working capital.
2. The purchases from and sales to related parties are made on terms equivalent to and those applicable to all unrelated parties
on arm’s length transactions. Outstanding balances payable and receivable at the year-end are unsecured, interest free and will
be settled in cash.
37. Utilization of Rights Issue Proceeds
37.1 Background of the Issue
The Board of Directors of the Company, vide a board resolution dated 30 July 2024, approved a Rights Issue of Equity Shares. Pursuant
to this approval, the Company issued and allotted 30,85,17,476 Rights Equity Shares on a partly paid-up basis.
• Application Stage: During the financial year 2025-26, the Company received share application money aggregating to Rs. 493.63
Crores by 30 June 2025, representing the initial payment of Rs. 16/- per share (comprising Rs. 0.50 per share towards Face Value
and Rs. 15.50/- per share towards Securities Premium).
• First and Final Call Stage: Subsequently the Company made the First and Final Call for the remaining balance of Rs. 16/- per share.
By 13th March 2026, the Company received an aggregate amount of Rs. 363..59 Crores against 22,72,47,052 equity shares.
• Calls in Arrears: Share Capital includes an aggregate amount of Rs4.06 Crores receivable from allottees against calls made. This
outstanding balance is presented as 'Calls-in-Arrears’ and deducted from the Called-up Share Capital as of March 31, 2026.
The management has ensured strict tracking of these distinct tranches of capital collection, accounting for Share Capital and Securities
Premium in accordance with Ind AS, and maintaining compliance with the provisions of the Companies Act, 2013 and Regulation 33 of
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
37. Utilization of Rights Issue Proceeds (Contd.)
37.4 Declaration of Deviation or Variation
Management Declaration:
There has been no deviation or variation in the utilization of the Rights Issue proceeds from the principal objects and purposes stated in
the Letter of Offer dated April 19, 2025.
As disclosed in the Letter of Offer, the Company had originally proposed to utilise the proceeds from the rights issue by March 31, 2026.
Subsequently pursuant to the approval of the shareholders at the Extraordinary General Meeting held on March 27, 2026, the timeline for
utilisation of the unutilised proceeds has been extended beyond March 31, 2026.
38. Proposed Scheme of Merger by Absorption dated December 29, 2025.
The Board of Directors of the Company at its meeting held on December 29, 2025, considered and approved a draft Scheme of Merger
by Absorption (the “Scheme”) under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013.
The Scheme provides for the merger of the following three entities (collectively referred to as the “Transferor Companies”) into Lloyds
Engineering Works Limited (the “Transferee Company”):
1. Lloyds Infrastructure & Construction Limited (Transferor Company 1)
2. Metalfab Hightech Private Limited (Transferor Company 2)
3. Techno Industries Private Limited (Transferor Company 3)
Current Status and Regulatory Filings
Upto the date of Approval of the Financial Statements-
Pursuant to the listing compliance requirements, the Company has filed formal applications on January 16, 2026, seeking prior approval/
No-Objection Letters under Regulation 37 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with both
the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE). The Scheme remains subject to the receipt of requisite
regulatory clearances from the Stock Exchanges, SEBI, the respective shareholders and creditors, and the ultimate sanction of the
National Company Law Tribunal (NCLT).
Consideration and Share Exchange Ratio
In terms of the Scheme, upon the Scheme becoming finally effective, the Company will issue and allot equity shares of face value of Rs. 1/-
each, credited as fully paid-up, to the equity shareholders of the respective Transferor Companies whose names appear in the Register
of Members on the designated Record Date, in the following ratios:
• To the shareholders of Lloyds Infrastructure & Construction Limited (LICL): 1,798 (One Thousand Seven Hundred Ninety-Eight) fully
paid-up equity shares of Rs. 1/- each of the Company for every 1,500 (One Thousand Five Hundred) fully paid-up equity shares of
Re. 1/- each held in LICL.
• To the shareholders of Metalfab Hightech Private Limited (MHPL): 94 (Ninety-Four) fully paid-up equity shares of Rs. 1/- each of the
Company for every 5 (Five) fully paid-up equity shares of Rs. 10/- each held in MHPL.
• In respect of Techno Industries Private Limited (TIPL): TIPL is a wholly-owned subsidiary of the Company Accordingly upon the
Scheme becoming effective, the entire issued, subscribed, and paid-up share capital of TIPL shall stand cancelled and extinguished
without any further act, instrument, or deed, and no shares shall be allotted by the Company in lieu thereof.
Accounting Treatment and Compliance
The Company has certified that the accounting treatment proposed in the Scheme strictly complies with the applicable Indian Accounting
Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with relevant rules issued thereunder, and other
regulatory guidelines applicable to listed entities.
Given the structural complexity of the transaction, the determination of valuation and share entitlement ratios, and the prospective
financial impact, no accounting adjustments or effects have been recognized in the financial statements for the current reporting period.
The financial effects of the merger will be given effect in the books of accounts only upon the receipt of all pending statutory approvals
and the Scheme becoming legally effective.
As of March 31,2026, the Scheme remains subject to necessary statutory and regulatory approvals, including sanctions from the National
Company Law Tribunal (NCLT), the Competition Commission of India (CCI), and the respective Stock Exchanges.
38. Proposed Scheme of Merger by Absorption dated December 29, 2025. (Contd.)
Consequently, no accounting effects or adjustments in respect of the proposed Scheme have been recognized in these Standalone and
Consolidated Financial Statements for the year ended March 31, 2026. The assets, liabilities, and financial performance of the Transferor
Companies will continue to be accounted for within their independent financial structures and will be consolidated/merged with the
Company’s books of account only upon the Scheme becoming legally effective.
39. Financial and Capital Risk
1. Financial Risk
The business activities of the Company expose it to a variety of financial risks, namely Market Risks (i.e. Foreign Exchange Risk,
Interest Rate Risk and Price Risk), Credit Risk and Liquidity Risk. The Company’s Risk Management Strategies focus on the un¬
predictability of these elements and seek to minimise the potential adverse effects on its financial performance.
The Financial Risk Management for the Company is driven by the Company’s Senior Management and internal/ external experts
subject to necessary supervision.
The Company does not undertake any speculative transactions either through derivatives or otherwise. The senior management
is accountable to the Board of Directors and Audit Committee. They ensure that the Company’s financial risk-taking activities are
governed by appropriate financial risk governance frame work, policies and procedures. The Board of Directors periodically reviews
the exposures to financial risks, and the measures taken for risk mitigation and the results thereof.
i) Foreign Currency Risk
Foreign Exchange Risk arises on all recognised monetary assets and liabilities and on highly probable forecasted transactions
which are denominated in a currency other than the functional currency of the Company. The Company has foreign currency
trade payables and advances from customers.
The Foreign Exchange Risk Management Policy of the Company requires it to manage the foreign exchange risk by transacting
as far as possible in the functional currency.
The sensitivity disclosed in the above table is mainly attributable to, in case of foreign exchange gains / (losses) on trade
payables and trade receivables. The above sensitivity analysis is based on a reasonably possible change in the under-lying
foreign currency against the respective functional currency while assuming all other variables to be constant.
Based on the movements in the foreign exchange rates historically and the prevailing market conditions as at the reporting date,
the Company’s management has concluded that the above-mentioned rates used for sensitivity are reasonable benchmarks.
ii) Price Risk
The Company uses surplus fund in operations and for further growth of the Company Hence, there is no price risk associated
with such activity.
iii) Credit Risk
Credit risk refers to the risk of default on its obligation by the counter-party, the risk of deterioration of creditworthiness of the
counter-party as well as concentration risks of financial assets and thereby exposing the Company to potential financial losses.
The Company is exposed to credit risk mainly with respect to trade receivables.
Trade Receivables
The Trade receivables of the Company are typically non-interest bearing un-secured. As there is no independent credit rating
of the customers available with the Company, the management reviews the credit-worthiness of its customers based on their
financial position, past experience and other factors. The credit risk related to the trade receivables is managed / mitigated
by concerned team based on the Company’s established policy and procedures and by setting appropriate payment terms
and credit period. The credit period provided by the Company to its customers depend upon the contractual terms with
the customers.
The Company performs on-going credit evaluations of its customer’s financial condition and monitors the credit-worthiness
of its customers to which it grants credit in its ordinary course of business. The gross carrying amount of a financial asset is
written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when
the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows
to repay the amount due or there are some disputes which in the opinion of the management is not in the Company’s favour.
Where the financial asset has been written-off, the Company continues to engage in enforcement activity to attempt to recover
the receivable due. Where recoveries are made, these are recognised in profit and loss.
iv) Liquidity Risk
Liquidity Risk is the risk that the Company will not be able to meet its financial obligations as they become due. Accordingly, as
a prudent liquidity risk management measure, the Company closely monitors its liquidity position and deploys a robust cash
management system.
Based on past performance and current expectations, the Company believes that the Cash and Cash equivalents and cash
generated from operations will satisfy its working capital needs, capital expenditure, investment requirements, commitments
and other liquidity requirements associated with its existing operations, through at least the next twelve months.
The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted
payments: -
v) Capital Risk
The Company’s objective while managing capital is to safeguard its ability to continue as a going concern (so that it is enabled to
provide returns and create value for its Shareholders, and benefits for other Stakeholders), support business stability and growth,
ensure adherence to the covenants and restrictions imposed by lenders and/ or relevant laws and regulations, and maintain an
optimal and efficient capital structure so as to reduce the cost of capital. However, the key objective of the Company’s capital
management is to, ensure that it maintains a stable capital structure with the focus on total equity, uphold investor; creditor and
customer confidence and ensure future development of its business activities. In order to maintain or adjust the capital structure,
the Company may issue new shares, declare dividends, return capital to shareholders, etc. The Company manages its capital
structure and makes adjustments to it, in light of changes in economic conditions or its business requirements.
41.2 Crypto Currency
The Company has not traded /Invested in crypto currency or virtual currency for the financial year ended March 31, 2026 and March
31, 2025.
41.3 Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017
41.4 Benami Property with respect to Companies incorporated in lndia
There are no proceedings initiated/pending against the company for holding benami property as at March 31,2026 and March 31,2025.
41.5 Disclosure for struck off companies:
The Components incorporated in lndia under the company does not have any transactions / balances outstanding in respect of
transactions undertaken with a company struck-off under section 248 of the Companies Act, 2013.
41. Additional Regulatory Information (Contd.)
41.6 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:
i. 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
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
41.7 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 shall:
i. 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
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
41.8 The Company has no borrowings on which charges or satisfaction of charges are required to be registered with the Registrar of
Companies as at Balance Sheet Date.
44. Wilful Defaulter:
None of the entities incorporated in India within the Group has been declared a wilful defaulter by any bank, financial institution, or lender
45. Previous year’s figures are regrouped and rearranged wherever necessary.
46. Approval of Financial Statements.
| 