q) Provisions, contingent liabilities and assets
i) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
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. The expense relating to
a provision is presented in the Statement of Profit and Loss net of any reimbursement.
ii) Contingent liabilities
Contingent Liability is disclosed for (i) Possible obligations which will be confirmed only by the future events
not wholly within the control of the Company or (ii) Present obligations arising from past events where it is
not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the
amount of the obligation cannot be made.
iii) Contingent assets
Contingent Assets are not recognised in the financial statements. Contingent Assets if any, are disclosed in
the notes to the financial statements.
r) Government Grants
Government grants are recognised at its fair value, where there is a reasonable assurance that such grants will
be received and compliance with the conditions attached therewith have been met.
Government grants related to asset are presented in the balance sheet at fair value as deferred income.
Government grants related to expenditure on property, plant and equipment are credited to the statement of
profit and loss over the useful lives of qualifying assets or other systematic basis representative of the pattern of
fulfilment of obligations associated with the grant received.
s) Operating cycle
Based on the nature of products / activities of the Company and the normal time between acquisition of assets
and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months
for the purpose of classification of its assets and liabilities as current and non-current.
t) Earnings per share
Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the
Company by the weighted average number of equity shares outstanding during the period. Diluted earnings
per equity share is computed by dividing the net profit attributable to the equity holders of the Company by
the weighted average number of equity shares considered for deriving basic earnings per equity share and
also the weighted average number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the
equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares).
Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods
presented for any share splits and bonus shares issues including for changes effected prior to the approval of the
financial statements by the Board of Directors.
1.6 Recent accounting pronouncements
The Ministry of Corporate Affairs (MCA) notifies amendments to the existing standards under Companies (Indian
Accounting Standards) Rules, 2006, as issued from time to time. For the year ended 31st March 2026, MCA has
notified amendments to Ind AS 1 - Presentation of Financial Statements, Ind AS 7 - Statement of Cash Flows, Ind AS
12 - International Tax Reform - Pillar Two Model Rules, Ind AS 21 - The Effects of Changes in Foreign Exchange Rates
and Ind AS 107 - Financial Instruments: Disclosures. The Company has reviewed the amendments and based on its
evaluation, given necessary impact (including additional disclosures) as applicable.
(g) Share Split and Issue of Bonus Shares:
(i) During F.Y. 2025-26, the Authorised share capital of the Company was reclassified from ? 20,00,00,000/-
(Rupees Twenty Crore) divided into 90,00,000 (Ninety Lac) Equity Shares of ?10/- (Rupees Ten Only) each
and 11,00,000 (Eleven Lac) Redeemable Cumulative Preference Shares of ?100/- (Rupees Hundred Only)
each to ?20,00,00,000/- (Rupees Twenty Crore) divided into 4,00,00,000 (Four Crore) Equity Shares of ?5/-
(Rupees Five Only) each.
(ii) 30,82,114 equity shares of face value of ?10/- (Rupees Ten Only) each as on the record date i.e., 3rd October,
2025 were sub-divided into 61,64,228 equity shares of face value of ?5/- (Rupees Five Only) each.
(iii) On 6th October, 2025 (deemed allotment date), the Allotment Committee of the Board of Directors allotted
1,84,92,684 (One Crore Eighty Four Lacs Ninety Two Thousand Six Hundred and Eighty Four) equity shares
in the proportion of 3:1 i.e., 3 (Three) bonus equity shares of ?5/- (Rupees Five Only) each for every 1 (One)
existing fully paid-up equity share of ?5/- (Rupees Five Only) each as Bonus Shares held as on the record
date i.e. 3rd October, 2025, by capitalizing Capital Redemption Reserve and General Reserve.
Capital Redemption Reserve:
This reserve was created as per requirements of Companies Act, 2013 pursuant to buyback of equity shares and
redemption of preference shares.
General Reserve:
This reserve is created by transfer of a portion of the net profit.
Retained Earnings:
This reserve is created out of accumulated profit.
FVOCI - Equity Investment Reserve:
The Company has elected to recognise changes in the fair value of certain investments in equity shares in other
comprehensive income. These changes are accumulated within the FVTOCI equity investments reserve within equity.
FVOCI - Debt Investment Reserve:
The Company has elected to recognise changes in the fair value of certain investments in preference shares in other
comprehensive income. These changes are accumulated within the FVTOCI debt investments reserve within equity.
A description of methods used for sensitivity analysis and its limitations:
Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged.
Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary
if two or more variables are changed simultaneously. The method used does not indicate anything about the likelihood
of change in any parameter and the extent of the change if any.
On November 21, 2025, the Government of India notified the four Labour Codes: The Code on Wages, 2019, The
Industrial Relations Code, 2020, The Code on Social Security, 2020, and The Occupational Safety, Health and Working
Conditions Code, 2020 consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft
Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has
provisionally estimated the financial implications thereof and has made additional provision under ‘Employee benefit
expense' for ' 101.07 lacs in the financial results for the quarter and nine months ended on 3151 December, 2025. This
will be reviewed and revised, if required once Central / State Rules are notified by the Government on all aspects of
the Codes.
E. The Company's contribution to the provident fund, administered through a Company managed trust, is recognised as
an expense in the Statement of Profit and Loss.The trust pays interest to its beneficiaries based on the minimum rate
of return specified by the Government, from time to time.
As per terms of Provident Fund Trust Deed, the Company is liable for any shortfall in the revenue generated on
fund assets as compared to Government Specified rate of return during the financial year. Such shortfall, if any, is
recognised in the Statement of Profit & Loss as expense in the year of incurring the same. Provision made for such
shortfall is ' 9.60 Lacs in the F.Y. 2025-26 (P.Y. ' Nil).
Further, if there is any shortfall in the fund assets of the said trust, then the same is contributed by the Company to the
trust and is charged to Statement of Profit and Loss. As on 3151 March, 2026, there is no shortfall in the fund assets of
the said trust.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed
equity instruments, mutual funds and alternative investment fund that have quoted price. The fair value of all
equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting
period. The mutual funds are valued using the closing NAV.
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 Company's policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of
the reporting period.
b) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments are as under:
i) The fair values of investments in mutual fund units & alterative investment fund is based on the net asset
value (‘NAV') as stated by the issuers of these fund units in the published statements as at Balance Sheet
date.
ii) The fair values of quoted investment in equity shares is based on the current bid price of respective
investment as at the Balance Sheet date.
iii) The fair values of unquoted investment in equity shares of investee companies, including those having
multiple business segments are derived as under:
- For investments of investee in listed securities, valuation for frequently traded shares as prescribed in
SEBI ICDR Regulations, 2018 amended, as may be reflecting the correct position is considered.
- For investment of investee in mutual funds, NAV of the mutual funds is considered.
- For valuation of any land and property of investee, fair market value of the asset based on current jantri
value is considered.
- For valuation of land and property purchased during current financial year, the stamp duty value is
considered.
- For investments of investee in unlisted companies, valuation is carried out on realizable net asset value
basis, derived from the fair valuation of the underlying assets and liabilities or using DCF Method, in
case if projections are made available.
- For valuation of any unlisted Cash Generating Unit / operating business of the investee, the valuation
has been arrived by applying DCF method.
- For valuation of real estate development segment of the investee, capital work in process as per books
is considered.
iv) The fair values of unquoted investment in preference shares is arrived by discounting income/cash flows
to its present value using the required rate of return and the cost of debt of Paushak Limited and returns
expected on similar investments.
f) Valuation Processes
Valuation of certain unquoted equity shares & unquoted preference shares is done by an external valuation
agency as per above valuation techniques.
R. Financial Risk management
The Company has exposure to the following risks arising from financial instruments:
- Credit risk;
- Liquidity risk; and
- Market risk
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to
set appropriate risk controls and to monitor risks. Risk management policies and systems are reviewed periodically
to reflect changes in market conditions and the Company's activities. The Company monitors compliance with the
Company's risk management policies and procedures, and reviews the adequacy of the risk management framework
in relation to the risks faced by the Company.
a) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Company's receivables from customers, deposit
and other receivables. Credit risk is managed through continuous monitoring of receivables and follow up of
overdues.
Investments
The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties
that have a good credit rating. The Company does not expect any losses from non-performance by these counter
parties, and does not have any significant concentration of exposures to specific industry sector or specific
country risks.
Trade receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer,
demographics of the customer, default risk of the industry and country in which the customer operates. Credit risk
is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness
of customers to which the Company grants credit terms in the normal course of business.
The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose,
the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes
into account external and internal risk factors and historical data of credit losses from various customers and is
adjusted for forward looking estimates.
Other than trade and other receivables, the Company has no other financial assets that are past due but not
impaired.
b) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligation as they fall due. The
Company ensures that it will have sufficient liquidity to meet its liabilities when they are due, under both normal
and stressed conditions.
Maturities of Financial Liabilities
The table herewith analyses the Company's Financial Liabilities into relevant maturity groupings based on their
contractual maturities.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balance dues within the 12
months equal there carrying balances as the impact of discounting is not significant.
c) Market risk
Market risk is the risk that arises due to changes in market prices and other factors such as foreign exchange
rates, interest rates and commodity risk. Market risk is also attributable to all market risk sensitive financial
instruments including foreign currency receivables and payables and long term debt.
Sensitivity Analysis
For the year ended 3151 March, 2026 every 5% weakening of Indian Rupee as compared to the respective major
currencies for the above mentioned financial assets/liabilities would increase Company's profit and equity by
approximately ' 57.67 Lacs (PY ' 30.14 Lacs). A 5% strengthening of the Indian Rupee as compared to the
respective major currencies would lead to an equal but opposite effect.
Price Risk
The Company is mainly exposed to the price risk due its investment in equity instruments and equity & debt
mutual fund. The price risk arises due to uncertainty about the future market value of these investments.
Management Policy
The Company maintains its portfolio in accordance with framework set by risk management policies duly
monitored by competent professionals.
S. Nature of Security and Repayment Terms for Borrowing
a) Term Loan
i) The term loan from bank is secured by first pari passu charge on Company's movable fixed assets and
negative lien on immovable property.
ii) Principal amount of the facility shall be repaid in quarterly instalment of ' 375 Lacs. The interest rate ranges
between 6.87% to 8.20% per annum, applicable to the respective drawdown.
iii) The Company has complied with all financial and non-financial covenants stipulated under the term loan
agreements as at 31st March 2026.
b) Working Capital Facility
i) It is repayable on demand
ii) The interest rate ranges between 8.20% to 10.00% per annum.
T. Capital Management
The Company's capital management objectives are:
- to ensure the Company's ability to continue as a going concern; and
- to provide an adequate return to shareholders through optimisation of debts and equity balance.
The Company monitors capital on the basis of the carrying amount of debt less cash and cash equivalents as presented
on the face of the financial statements. The Company's objective for capital management is to maintain an optimum
overall financial structure.
U. SEBI (Listing Obligation & Disclosure Requirements) Regulation 2015
Disclosures as required under Regulation 34(3) read with schedule V of the SEBI (Listing Obligation & Disclosure
Requirements) Regulation 2015 have not been given as there are no such transactions with any such party.
V. Information on Dividend for the year
Dividends proposed or declared after the balance sheet date but before the financial statements have been approved
by the Board of Directors is not recognised as a liability at the balance sheet date. The Board of Directors recommended
final dividend of ' 2.50/- per equity share of F.V. ' 5/- each for the financial year ended on 31st March, 2026. The
payment is subject to approval of shareholder in ensuing Annual General Meeting of the Company. (Previous year
' 20/- per equity share of F.V. ' 10/- each).
W. Relationship with Struck off Companies
On the basis of information available with the Company, the Company has no relationship with any struck off companies
and there are no struck off companies whose names are found in its register of members.
X. Other statutory information
a) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.
b) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
c) The Company has not traded or invested in Crypto currency or Virtual currency during the year.
d) 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.
e) 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 manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
f) The Company does not have any such transaction which is not recorded in the books of accounts and 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).
g) The Company holds all the title deeds of immovable property in its name.
h) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013.
i) The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.
j) The Company does not have any subsidiaries and hence compliance with number of layers of companies is not
applicable.
Notes:
1 The Company took drawdown of Term Loan in multiple tranches aggregating to ' 50 Crores in FY 2025-26 (PY:
' 25 Crores) to fund its capital expenditure. The Company did not have any substantial borrowings in previous
years leading to skewed Debt Equity and Interest Service Coverage ratios.
2 The Company did not have any principal repayment in the FY 2025-26, hence this ratio is not applicable.
3 Return ratios declined due to higher depreciation on assets largely capitalised during later part of the year,
interest on borrowings and overall higher capital employed. Whereas the impact on revenue is expected to accrue
progressively.
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