R) Provision and Contingent Liabilities:
A Provision is recognized when an enterprise has a present
obligation as a result of past event and it is probable that an
outflow of resources will be required to settle the obligation,
in respect of which a reliable estimate can be made.
Provisions are determined based on management estimate
required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted
to reflect the current management estimates. Contingent
Liabilities are not recognized but are disclosed in the notes.
Contingent Assets are neither recognised nor disclosed in
the financial statements.
S) Derivatives:
Derivative financial instruments such as forward contracts,
option contracts and cross currency swaps, to hedge its
foreign currency risks are initially recognized at fair value
on the date a derivative contract is entered into and are
subsequently re-measured at their fair value with changes
in fair value recognised in the Statement of Profit and Loss
in the period when they arise.
T) Employee benefits
(i) Short-term obligations :
Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the period
in which the employees render the related service are
recognized in respect of employees' services up to
the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.
(ii) Post-employment obligations :
The Company operates the following post-employment
schemes:
(a) Defined benefit plans such as gratuity; and
(b) Defined contribution plans such as provident
fund and superannuation fund.
a) Gratuity obligations
The liability or assets recognized in the balance
sheet in respect of gratuity plans is the present
value of the defined benefit obligation at the end
of the reporting period less the fair value of plan
assets. The defined benefit obligation is calculated
annually by actuaries using the projected unit
credit method
The present value of the defined benefit obligation
is determined 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.
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 recognized 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.
Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognized immediately in profit
or loss.
b) Defined contribution plans
The Company pays provident fund contributions
to publicly administered funds as per local
regulations and superannuation fund to LIC. The
Company has no further payment obligations
once the contributions have been paid. The
contributions are accounted for as defined
contribution plans and the contributions are
recognized as employee benefit expense when
they are due.
U) Earnings Per Share
Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the Company
- by the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the year
and excluding treasury shares.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to take into
account:
- the after income tax effect of interest and other
financing costs associated with dilutive potential equity
shares, and
- the weighted average number of additional equity
shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.
V) Recent Accounting 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.
In May 2025, MCA notified amendments to Ind AS 21 - The
Effects of Changes in Foreign Exchange Rates, applicable
w.e.f. 1st April , 2025. 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.
In August 2025, MCA notified the following
amendments to:
Ind AS 1, Presentation of Financial Statements, applicable
w.e.f. 1st April , 2025 - The amendment relates to classification
of liabilities as current or noncurrent and non-current
liabilities with covenants. In the context of classifying a
liability as current, it removes the requirement of existence
of a right to defer settlement for at least 12 months after
the reporting date and instead requires that the said right
should exist on the reporting date and have substance.
The amendment also introduces guidance on classification
of liabilities with covenants. The Company has no impact of
these amendments in its classification criteria of current and
non-current liabilities.
Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial
Instruments: Disclosures, applicable w.e.f. 1st April , 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 recent amendments introduce
a temporary mandatory relief from deferred tax accounting
in respect of top-up tax. Companies applying this relief are
required to disclose that it has been adopted. The relief is
effective immediately, applies retrospectively, and is intended
to mitigate complexity in deferred tax recognition.
Additionally, new disclosure requirements have been
introduced to compensate for the potential loss of
information resulting from the relief. These disclosures will
be applicable for annual reporting periods beginning on or
after April 1, 2025.
The Company has assessed the amendments and confirmed
that they do not have any significant impact on its financial
statements.
4) INVESTMENT PROPERTIES (Contd.)
Premises given on Operating Lease :
The Company has given certain investment properties on operating lease. These lease arrangements range for a period between
2 and 5 years and is of cancellable in nature. Most of the leases are renewable for further period on mutually agreeable terms.
6) RIGHT OF USE ASSETS:
The Company has lease contracts for various item of buildings in its operation. Lease of building generally have lease term
between 1 to 12 years. The Companies obligation under these leases are secured by the lessor title to the lease assets. Generally
the Company is restricted from assigning and sub leasing the lease assets.
42) RELATED PARTY DISCLOSURES :
As per Ind AS 24, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below.
List of related parties where control exists and related parties with whom transactions have taken place and relationships:
(a) Key Management Personnel (KMP) : Shri Ramesh D. Poddar -Chairman & Managing Director, Shri Pawan D. Poddar -
Joint Managing Director, Shri Shrikishan Poddar - Executive Director, Shri Gaurav Poddar - President and Executive Director,
Shri Ashok Jalan - Sr. President cum Director, Shri Surendra Shetty - Chief Financial Officer, Shri William Fernandes - Company
Secretary up to 14.11.2025.,Shri.Mahipal Thakur-Company Secretary with effect from 15.11.2025.
(b) Relatives of Key Management Personnel (KMP) : Smt. Ashadevi R Poddar,Shri.Avnish Poddar,Shri.Ankit Pramod Poddar,
(c) Non Executive Directors and Enterprises over which they are able to exercise significant influence: Smt.Mangala
R.Prabhu, Shri.Ashok N.Desai, Shri.Chetan S.Thakkar, Shri.Deepak R.Shah, Shri.Sachindra N.Chaturvedi, Ladderup Corporate
Advisory Pvt Ltd., The Ruby Mills Ltd., Kanga & Co.
(d) Subsidiary : Cadini S.R.L. (100% wholly owned subsidiary, incorporation in Italy).
(e) Other Related Parties (Enterprises - KMP having significant influence / Owned by Major Shareholders) :
Futuristic Concept Media LLP (evolved from the conversion and renaming of Beetee Textile Industries Ltd. to Beetee Fabric Pvt.
Ltd.,which subsequently merged into Futuristic Concept Media Ltd and Vishal Furnishing Ltd merged with Futuristic Concept
Media Ltd) Wavelink Fabrics LLP (evolved from the conversion of Santigo Textile Mills Ltd to Wavelink fabrics Pvt Ltd which
subsequently converted to Wavelink Fabrics LLP), Balkrishna Paper Mills Ltd., Golden Fibres LLP White Light Food Pvt.Ltd.,Vibrant
Clothing Co.Pvt.Ltd., DRPS Enterprises LLP, Genesis Works Pvt.Ltd., HBS Enterprises LLP., Dhanpriya Synthetics Pvt.Ltd., Sri Radha
Madhava Fashion LLP., KVP Enterprise LLP? Sanchana Trading & Finance Ltd.
44) DEFINED BENEFIT AND CONTRIBUTION PLAN:(Contd.)
VIII) Risk Exposure - Asset Volatility
The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this
will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities.
45) FAIR VALUE MEASUREMENT :
Financial Instrument by category and hierarchy.
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values :
1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities ,
short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term
maturities of these instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest
rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected
losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.
3. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
The Company uses the following hierarchy for determining and disclosing the fair value of financial
instrument by valuation technique.
Level 1 : Quoted (unadjusted) price in active markets for identical assets or liabilities
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.
46) FINANCIAL RIKS MANAGEMENT OBJECTIVE AND POLICIES :
In the course of business, the Company is exposed to certain financial risk that could have considerable influence on the Company's
business and its performance. These include market risk ( including currency risk, interest risk and other price risk), credit risk and liquidity
risk. The Board of Directors review and approves risk management structure and policies for managing risks and monitors suitable
mitigating actions taken by the management to minimise potential adverse effects and achieve greater predictability to earnings.
In line with the overall risk management framework and policies, the treasury function provides service to the business, monitors
and manages through an analysis of the exposures by degree and magnitude of risks. It is the Company's policy that no trading
in derivatives for speculative purposes may be undertaken. The Company uses derivative financial instruments to hedge risk
exposures in accordance with the Company's policies as approved by the Board of Directors.
a) Market Risk - Interest rate risk :
Interest rate risk is risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company is exposed to interest rate risk pertaining to funds borrowed at both fixed and floating
interest rates. In order to optimize the Company's position with regards to interest income and interest expenses and to
manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the
proportion of fixed rate and floating rate financial instruments in its total portfolio.
The Sensitivity analysis below has been determined based on the exposures to interest rates at the end of the reporting period.
For floating rate liabilities, the analysis is prepared assuming that the amount of the liability as at the end of the reporting period
was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to
key management personnel and represents Management's assessment of the reasonably possible changes in interest rates.
b) Market Risk- Foreign currency risk.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure 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 its
operating activities.The Company manages its foreign Currency risk by hedging transaction that are expected to occur within
a maximum 12 month periods for hedge of forecasted sales and purchases in foreign currency.The hedging is done through
foreign currency forward contracts.
c) Price Risk in Investments
Investment in mutual funds involves market-linked risks, including price risk, where the Net Asset Value (NAV) of a fund may
fluctuate due to changes in market conditions. The value of investment can rise or fall based on the performance of the
underlying securities in the fund's portfolio. Equity and debt securities held by the fund are subject to daily price movements
due to market volatility, economic developments, geopolitical events, and investor sentiment.
d) Credit Risk
Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control
relating to customer credit risk management. Credit quality of a customer is assessed based on customer profiling, credit
worthiness and market intelligence. Trade receivables consist of a large number of customers, spread across geographical
areas. Outstanding customer receivables are regularly monitored. The average credit period is in the range of 30 -90 days
which is backed by security deposit/guarantee from dealers and agents.
The Company measures the expected credit loss of trade receivables from individual customers based on historical trend,
industry practices and the business environment in which the entity operates.
46) FINANCIAL RIKS MANAGEMENT OBJECTIVE AND POLICIES :(Contd.)
e) Liquidity Risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management
is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained
fund and non-fund based working capital limits from various banks. Furthermore, the Company access to funds from debt
markets through commercial paper programs and short term working capital loans.
47) CAPITAL MANAGEMENT :
The capital structure of the Company consists of net debt and total equity of the Company. The Company manages its capital
to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through an
optimum mix of debt and equity within the overall capital structure. The Company's Risk Management Committee reviews the
capital structure of the Company considering the cost of capital and the risks associated with each class of capital.
52) During the previous year, the Company received 7 1700 lakhs from its investment in Balkrishna Paper Mills Ltd, comprising 17,00,000,
9% cumulative redeemable preference shares.
53) The Company has assessed and recognised the impact of implementing the New Labour Codes under employee benefits expense
for the year ended March 31, 2026. The impact is not considered material to the financial year.
54) The Company has recognized government grants in the nature of capital subsidy relating to the Property, Plant and Equipment
(PPE). According to the Company's accounting policy, Grants relating to PPE that have already been fully depreciated are included
in the "Other Income" and grants related to PPE in respect of which balance useful life is remaining, are treated as deferred income
over the period and unamortised portion of grant shown under liabilities.
55) The Board at its meeting held on October 26, 2024 had approved Scheme of Arrangement between the Company and its shareholders
under Section 230 of the Companies Act, 2013 ("Scheme") which inter-alia, provides for issuance and allotment of 9% Cumulative
Non-Convertible Redeemable Preference Shares by way of bonus in 2 Series (i.e. 4(four) 9% Cumulative Non-Convertible Redeemable
Preference Shares of 7 10/- each fully paid up of the Company for every 1(one) Equity Share of 7 2/- each fully paid up("Series - I") and
3(three) 9% Cumulative Non-Convertible Redeemable Preference Shares of 710/- each fully paid up of the Company for every 1(one)
Equity Share of 7 2/- each fully paid up ("Series - II"). Series-I and Series-II will be redeemed at the end of 3 years and 5 years, respectively,
from the date of its issuance. The Scheme is approved by the respective Stock Exchanges/ SEBI/ Shareholders and Creditors of the
Company and admitted by the jurisdictional National Company Law Tribunal ("NCLT"). The final hearing on the Scheme was done in
NCLT on 16th April, 2026 and as on date pronouncement of final order on the Scheme by NCLT is awaited.
56) EVENTS OCCURRING AFTER BALANCE SHEET DATE :
a) The Company has declared a Special Interim Dividend of 7 4/- (200%) per equity share of 7 2/-each on the occasion of
centenary birth anniversary of our Founder Late Shri Dharaprasad Poddar.
b) The Company has recommended Final Dividend of 7 5/- ( 250% ) per equity share of 7 2/- each, subject to approval of
Shareholders at ensuing Annual General Meeting.
57) APPROVAL OF FINANCIAL STATEMENTS :
The financial statements were approved for issue by the directors on 19th May, 2026.
58) OTHER STATUTORY INFORMATION :
i) The Company do not have any Benami Property, where any proceeding has been initiated or pending against the Company
for holding any Benami Property.
ii) The Company do not have any transaction with companies struck off.
iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iv) The Company have not traded or invested in Crypto currency or Virtual currancy during the financial year.
v) 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).
vi) The Company has not been declared as Wilful defaulter by any Banks, Financial institution or Other lenders.
vii) 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
viii) 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 to or on behalf of the ultimate beneficiaries
ix) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are
in agreement with the books of accounts.
x) The Company has used the borrowings from banks and financial institutions for the specific purpose for which
it was obtained.
xi) The title deeds of all the immovable properties (other than immovable properties where the Company is the lessee and the
lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property,
plant and equipment and investment properties are held in the name of the Company as at the balance sheet date.
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