x) Provisions and Contingencies
The assessments undertaken in recognising provisions and contingencies have been made in accordance with Indian
Accounting Standards (Ind AS) 37, 'Provisions, Contingent Liabilities and Contingent Assets'. The evaluation of the likelihood
of the contingent events is applied best judgement by management regarding the probability of exposure to potential loss.
2. PROPERTY, PLANT & EQUIPMENT, RIGHT OF USE ASSETS AND INTANGIBLE ASSETS
Accounting Policy :
Property, Plant & Equipment
a) Recognition and Measurement
Property, plant & equipment held for use in the production or/and supply of goods or services, or for administrative purposes,
are stated in the balance sheet at cost, less any accumulated depreciation and accumulated impairment losses (if any).
Cost of an item of property, plant and equipment acquired comprises its purchase price, including import duties and non¬
refundable purchase taxes, after deducting any trade discounts and rebates, any directly attributable costs of bringing the
assets to its working condition and location for its intended use and present value of any estimated cost of dismantling and
removing the item and restoring the site on which it is located.
In case of self-constructed assets, cost includes the costs of all materials used in construction, direct labour, allocation of
directly attributable overheads, directly attributable borrowing costs incurred in bringing the item to working condition for
its intended use, and estimated cost of dismantling and removing the item and restoring the site on which it is located. The
costs of testing whether the asset is functioning properly, after deducting the net proceeds from selling items produced while
bringing the asset to that location and condition are also added to the cost of self-constructed assets.
Gains or losses arising from the retirement or disposal of Property, Plant & Equipment are determined as the difference between
the net disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Standalone
Statement of Profit and Loss.
b) Depreciation and Amortization
i) Depreciation on property, plant & equipment is provided under Straight Line Method over the useful lives of assets after
net off residual value as prescribed by Schedule II of the Companies Act, 2013. Depreciation due to change in the value
of property, plant and equipment resulting from exchange rate fluctuation has been provided prospectively over the
residual life of the respective assets.
ii) Depreciation in respect of property, plant & equipment added / disposed off during the year is provided on pro-rata basis,
with reference to the date of addition/disposal.
iii) The estimated useful life is reviewed annually by the management at each financial year end.
Intangible Assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are
carried at cost less accumulated amortisation and accumulated impairment loss, if any.
Intangible assets are amortised on straight line basis over its estimated useful life of 5 years.
Right of Use (ROU) Assets
The ROU assets comprise the initial measurement of the corresponding lease liability, lease payments and security deposit made
at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated
depreciation and impairment losses.
ROU assets are depreciated over the shorter period of the lease term and useful life of the underlying asset. If the company is
reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset's useful life. The
depreciation starts at the commencement date of the lease.
As a practical expedient, Ind AS 116 permits a lessee not to separate non-lease components when bifurcation of the payments is
not available between the two components, and instead account for any lease and associated non-lease components as a single
arrangement. The Company has used this practical expedient.
Extension and termination options are included in many of the leases. In determining the lease term the management considers
all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option.
Capital Work in Progress
Capital work-in-progress is stated at cost which includes expenses incurred during construction period, interest on amount
borrowed for acquisition of qualifying assets and other expenses incurred in connection with project implementation in so far as
such expenses relate to the period prior to the commencement of commercial production.
2.04 Lease Deed of all ROU Assets are held in the name of the Company.
2.05 The Company has not revalued its Property, Plant & Equipment (including Right-Of-Use assets) and Intangible assets during the
year ended 31st March, 2026 and 31st March, 2025.
2.06 The Company has performed an assessment of its Property Plant & Equipment, Capital work in progress, Intangible Assets and
Right of Use Assets for possible triggering events or circumstances for an indication of impairment and has concluded that there
were no triggering events or circumstances that would indicate the Property Plant and Equipment, Capital work in progress,
Intangible Assets and Right of Use Assets are impaired.
2.07 CWIP aging schedule As at 31-Mar-26
2.08 All the projects in progress as on 31st March, 2026 and as on 31st March, 2025, are being executed as per schedule and is not
overdue in terms of target completion time. Further, cost of these projects has not exceeded the cost as per its original plan.
FINANCIAL ASSETS
Accounting Policy :
All financial assets are recognised on trade date when the purchase of a financial asset is under a contract whose term requires delivery
of the financial asset within the timeframe established by the market concerned. Financial assets are initially measured at fair value,
plus transaction costs, except for those financial assets which are classified at fair value through profit or loss (FVTPL) at inception. All
recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value.
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers
the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.
The Company assess at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires
expected credit loss to be measured through a loss allowance."
Classification and Subsequent Measurement
For purposes of subsequent measurement, financial assets are classified:
a) Measured at Amortized Cost
b) Measured at Fair Value Through Other Comprehensive Income (FVTOO)
c) Measured at Fair Value Through Profit or Loss (FVTPL) and
Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business
model for managing financial assets.
Measured at Amortized Cost
The Financial assets are subsequently measured at the amortized cost if both the following conditions are met:
? The asset is held within a business model whose objective is achieved by both collecting contractual cash flows; and
? The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR)
method. Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as FVTPL.
Interest income is recognised in the standalone statement of profit and loss.
The amortised cost of financial assets is also adjusted for loss allowance, if any.
Measured at Fair Value Through Other Comprehensive Income (FVTOCI)
The financial assets are measured at the FVTOCI if both the following conditions are met:
? The objective of the business model is achieved by both collecting contractual cash flows and selling the financial assets; and
? The asset's contractual cash flows represent SPPI."
Measured at Fair Value Through Profit or Loss (FVTPL)
Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other
comprehensive income on initial recognition. Gains or losses arising on re-measurement are recognised in the standalone statement of
profit and loss. The net gains or loss recognised in standalone statement of profit and loss incorporates any dividend or interest earned
on the financial assets and is included in the "Other income" line item.
For disclosure related to Fair value measurement of financial instruments (Refer note 50)
3. NON-CURRENT FINANCIAL ASSETS - INVESTMENTS
Accounting Policy :
Investment in Joint-venture is measured at cost less impairment loss, if any.
The joint arrangement is structured through a separate vehicle and the legal form of the separate vehicle, the terms of the contractual
arrangement and, when relevant, any other facts and circumstances gives the Company rights to the net assets of the arrangement (i.e.
the arrangement is a joint venture). The activities of the joint venture are primarily aimed to provide the third parties with an output and
the parties to the joint venture will not have rights to substantially all the economic benefits of the assets of the arrangement.
3.01 The Company had executed a Limited Liability Partnership Agreement with Metzerplas Cooperative Agricultural Organization Ltd
(an agriculture cooperative incorporated in Israel) dated 14th February 2018, to jointly carry out business activities in the field of
micro-irrigation within the framework of joint-venture. Pursuant to this, an LLP was incorporated on 9th March, 2018, wherein the
Company holds 50% partnership Interest.
6. INVENTORIES
Accounting Policy :
Inventories of raw materials, fuel, stores & spares parts and packing materials are valued at lower of cost or net realisable value (NRV).
However, these items are considered to be realisable at cost, if the finished products, in which they will be used, are expected to be sold
at or above cost. Cost is determined on weighted average basis.
Work in progress (WIP) and finished goods are Valued at lower of cost or NRV. Cost of Finished goods and WIP includes cost of raw
materials, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost of
inventories is computed on weighted average basis.
Waste / Scrap inventory is valued at NRV. Net realisable value is the estimated selling price in the ordinary course of business, less the
estimated costs of completion and the estimated costs necessary to make the sale.
11. CONTRACT ASSETS
Accounting Policy :
Contract assets are recognised when there is excess of revenue earned over billings on contracts. Unbilled receivables where further
subsequent performance obligation is pending are classified as contract assets when the company does not have unconditional right to
receive cash as per contractual terms. Revenue recognition for fixed price development contracts is based on percentage of completion
method. Invoicing to the clients is based on milestones as defined in the contract. This would result in the timing of revenue recognition
being different from the timing of billing the customers. Unbilled revenue for fixed price development contracts is classified as non¬
financial asset as the contractual right to consideration is dependent on completion of contractual milestones.
13.04 The Company does not have any Holding Company.
13.05 The Shareholders of the Company approved the Employee Stock Options Plan 2015 ("ESOP 2015") for issue of Option not
exceeding 2000000 (Two million) options to its permanent employees (including a Director, whether whole time or not but
excluding independent directors) of the Company, working in India. There were NIL outstanding options at the beginning and at
the end of the year and no options were granted, cancelled/forfeited, exercised or expired during the year.
13.06 None of the securities are convertible into shares at the end of the reporting period.
13.07 The Company during the preceding 5 years -
(a) Has not allotted shares pursuant to contracts without payment received in cash.
(b) Has not issued shares by way of bonus shares.
(c) Has not bought back any shares.
13.08 There are no calls unpaid by Directors / Officers.
13.09 Shares held by promoters as at 31st March, 2026 and changes during the year ended 31st March, 2026:
13.10 Pursuant to right issue the shareholding % of promoters has changed due to change in overall number of equity shares, however
number of equity shares held by the promoters has not changed. The above shareholding has been rounded off to two decimal
in %.
13.11 Shares held by promoters as at 31st March, 2025 and changes during the year ended 31st March, 2025:
14.06 The description of the nature and purpose of each reserve within equity is as follows:
(a) Securities Premium Reserve : The Reserve represents the premium on issue of shares and can be utilized in accordance
with the provisions of the Companies Act, 2013.
(b) General Reserve : The Reserve is created by an appropriation from one component of equity (generally retained earnings)
to another, not being an item of Other Comprehensive Income. The same can be utilised by the company in accordance
with the provisions of the Companies Act, 2013.
(c ) Retained Earnings : This reserve represents the cumulative profits of the Company and effects of re-measurement of
defined benefit obligations. This reserve can be utilised in accordance with the provisions of the Companies Act 2013.
(d) Other Reserves:
(i) Item of other Comprehensive Income (Re-Measurement of defined benefit plans): Re-measurement,
comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on
plan assets (excluding net interest), is reflected immediately in the Balance Sheet with a charge or credit recognised
in Other Comprehensive Income (OCI) in the period in which they occur. Re-measurement recognised in OCI is
reflected immediately in retained earnings and will not be reclassified to Statement of Profit and Loss.
(ii) Item of other Comprehensive Income (Effective portion of cash flow hedge): The Company uses hedging
instruments as part of its risk management policy for commodity and foreign currency risk. The Cash Flow hedging
reserve is used to recognise the effective portion of gain or loss on designated hedging relationship.
For disclosure related to risk management policy for commodity and foreign currency risk, refer note 52.
FINANCIAL LIABILITIESAccounting Policy :
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial
liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of financial liabilities
(other than financial liabilities at fair value through profit or loss) are deducted from the fair value measured on initial recognition
of financial liability. They are measured at amortised cost using the effective interest method. The Company derecognises financial
liabilities when, and only when, the Company's obligations are discharged, cancelled, or have expired.
For disclosure related to Fair value measurement of financial instruments, refer note 50.
Accounting Policy :
Lease liability is initially measured at the present value of future lease payments. Lease payments are discounted using the interest rate
implicit in the lease or, if not readily determinable, using the incremental borrowing rate. Lease liability is subsequently remeasured
by increasing the carrying amount to reflect interest on the lease liability and reducing the carrying amount to reflect the lease
payments made.
The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use asset
and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined
as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease
payments as an operating expense on a straight-line basis over the lease term, unless another systematic basis is more representative of
the time pattern in which economic benefits from the leased assets are consumed. Contingent and variable rentals are recognized as
expense in the periods in which they are incurred.
Accounting Policy :
Contract Liability is recognised when there are billings in excess of revenues and it also includes consideration received from customers
for whom the company has pending obligation to transfer goods or services.
The billing schedules agreed with customers include periodic performance based payments and / or milestone based progress
payments. Invoices are payable within contractually agreed credit period.
Deferred tax is provided, on all temporary differences at the reporting date between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected
to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted at
the reporting date. Tax relating to items recognised directly in equity or OCI is recognised in equity or OCI and not in the standalone
statement of profit and loss.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to
income taxes levied by the same tax authority, but they intend to settle current tax liabilities and assets on a net basis or their tax assets
and liabilities will be realized simultaneously.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the
temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no
longer probable.
The Company has recognized Deferred Tax Liability as per Indian Accounting Standard ("Ind AS") 12- Income Taxes. The balance
comprises temporary difference attributable to :
Accounting Policy :
Government grants are recognized at their fair values when there is reasonable assurance that the grants will be received and the
Company will comply with all the attached conditions
a) Government grants are recognised in the statement of profit or loss on a systematic basis over the periods in which the Company
recognises the related costs for which the grants are intended to compensate.
b) Grants related to acquisition/ construction of property, plant and equipment are recognised as deferred revenue in the Balance
Sheet and transferred to the statement of profit or loss on a systematic and rational basis over the useful lives of the related asset.
* net of positive balance of J869.81 million (Previous Year: H982.88 million) in Cash Credit Account.
22.01 Working Capital (including Buyer's Credit) are secured by first pari passu charge on current assets and second pari passu charge on
fixed assets of Jangalpur, Uluberia & Guwahati (Unit 1 & 2) and also by personal guarantees of some of the directors of the Company.
22.02 Interest on working Capital Facilities from banks carries interest ranging from 7.15% to 10.13% per annum; Packing Credit from
Banks bears interest 5.31% to 5.60% per annum; Buyer's Credit from Banks bears interest from 3.92% to 4.91% per annum.
22.03 Interest on unsecured loans from banks carries interest from 7.25% to 8.25% per annum; Unsecured loans from others bears
interest from 7.25% to 8.25% per annum.
22.04 The Company has not availed borrowings based on the security of current assets of any Group Company.
Trade payables represent liabilities for goods and services provided to the Company and are unpaid at the reporting period. The
amounts are unsecured and usually paid within time limits as contracted. Trade and other payables are presented as current liabilities
unless the payment is not due within 12 months after the reporting period. They are recognised initially at their transactional value
which represents the fair value and subsequently measured at amortised cost using the effective interest method wherever applicable.
24.01 Out of total Acceptances given to bank, Interest bearing acceptances are J816.11 million (previous year: H2,992.86 million).
24.02 The Company has entered into supplier finance arrangements with certain financial institutions whereby the financial institutions
may, at the discretion of the suppliers, settle amounts payable to suppliers on behalf of the Company. The Company subsequently
settles the amounts with the financial institutions in accordance with the terms and conditions of the arrangements. The
arrangements are entered into as part of the Company's working capital management framework. The payment terms under
these arrangements are generally extended compared to normal supplier credit terms. No additional security has been provided
by the Company in respect of these arrangements unless otherwise stated. The Company, in some cases, recover the cost of this
finance arrangement from the suppliers.
30. REVENUE FROM OPERATIONS
Accounting Policy :
The Company earns revenue primarily from sale of engineering & polymer products. It also earns revenue from its Infrastructure Projects
(Engineering, Procurement & Construction services) segment.
The Company follows Ind AS 115 "Revenue from Contracts with Customers" in respect of recognition of revenue from contracts with
customers which provides a control-based revenue recognition model and a five-step application approach for revenue recognition
as under:
a) Identification of the contract(s) with customers;
b) Identification of the performance obligations;
c) Determination of the transaction price;
d) Allocation of the transaction price to the performance obligations;
e) Recognition of the revenue when or as the Company satisfies performance obligation."
Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an
amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue
excludes amounts collected on behalf of third parties.
a) Revenue from sale of goods & services :
Revenue from the sale of engineering and polymer products is measured based on the consideration specified in a contract with
a customer and excludes amounts collected on behalf of third parties. Company recognises revenue at a point in time, when
control is transferred to the customer, and the consideration agreed is expected to be received. Control is generally deemed to be
transferred upon delivery of the products in accordance with the agreed delivery plan"
b) Revenue from infrastructure projects :
According to Ind AS 115 revenue is recognized over time (percentage of completion) either when the performance creates an
asset that the customer controls as the asset is created (e.g. work in progress) or when the performance creates an asset with
no alternative use and an enforceable right to payment as performance is completed to date has been secured. Revenue is also
recognized over time if the customer simultaneously receives and consumes the benefits from goods and services as performed. "
c) Variable Consideration :
If the consideration in a contract includes a variable amount, the company estimates the amount of consideration to which it will
be entitled to in exchange for transferring goods to the customer. In Polymer segment of the Company, Some contracts with the
customers provide them with a right to return and volume rebates. The right to return and volume rebates gives rise to variable
consideration. The amount of variable consideration is calculated by either using the expected value or the most likely amount
depending on which is expected to better predict the amount of variable consideration."
d) Modification in Contract :
Contracts are subject to modification to account for changes in contract specification and requirements. The Company reviews
modification to contract in conjunction with the original contract, basis which the transaction price could be allocated to a new
performance obligation, or transaction price of an existing obligation could undergo a change. In the event transaction price is
revised for existing obligation, a cumulative adjustment is accounted for.
36. FINANCE COSTS
Accounting Policy :
Borrowing cost include interest expense calculated using the effective interest method, finance charges in respect of assets acquired
on finance lease and exchange difference arising on foreign currency borrowings to the extent they are regarded as an adjustment to
the finance cost.
Transaction costs in respect of long term borrowing are amortized over the tenure of respective loans using Effective Interest Rate (EIR)
method. All other borrowing costs are recognized in the standalone statement of profit and loss in the period in which they are incurred.
38. The Company disputed the levy of entry tax from FY 2013-14 to 2017-18, which was also set aside by Supreme Court earlier, being
unconstitutional and void. However, on 30th January, 2025, the division bench of the Hon'ble High Court of Calcutta overturned
all the previous decisions. During the current financial year, this disputed entry tax amounting to H142.39 million has been fully
settled under the West Bengal Sales Tax (Settlement of Dispute) Rules, 1999 at H106.79 million (i.e. 75% of the total disputed
amount) and received a waiver of interest, late fee and penalty. The same has been disclosed as an exceptional item for the year
ended 31st March, 2026.
42. CONTINGENT LIABILITIES & CAPITAL COMMITMENTS
Accounting Policy :
a) Provisions
i) 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.
Provisions is measured using the cash flows estimated to settle the present obligation and when the effect of time value of
money is material, Provisions are determined by discounting the expected future cash flows (representing the best estimate
of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is
recognized as finance cost. Reimbursement expected in respect of expenditure required to settle a provision is recognised
only when it is virtually certain that the reimbursement will be received.
ii) Decommissioning Liability
Restoration/ Rehabilitation/ Decommissioning cost are provided for in the accounting period when the obligation arises
based on the NPV of the estimated future cost of restoration to be incurred. It includes the dismantling and demolition of
infrastructure and removal of residual material. This provision is based on all regulatory requirements and related estimated
cost based on best available information.
iii) Onerous Contracts
Present obligations arising under onerous contracts are recognized and measured as provisions. An onerous contract is
considered to exist when a contract under which the unavoidable costs of meeting the obligations exceed the economic
benefits expected to be received from it.
b) Contingent Liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not
recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability
also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The
Company does not recognize a contingent liability but discloses its existence in the standalone financial statements.
43. The Company has provided Corporate Guarantee aggregating to J1,858.25 million (Previous Year: H1,218 million) in favour of banks
in connection with credit facilities availed by its Joint Venture, Skipper Metzer LLP The outstanding borrowings in the books of
account of the Joint Venture from this credit facility amounts to J832.40 million as on 31st March, 2026 (PreviousYear: H711.16 million).
The aforesaid Guarantee includes a Corporate Guarantee of H500 million issued in favor of Yes Bank, against which the underlying
borrowing was repaid on 2nd April 2026. The said corporate guarantee was formally released by the bank on 14th April 2026.
The aforesaid Guarantee also includes a Corporate Guarantee of H718 million issued in favour of Punjab & Sind Bank, for which
the process of obtaining formal release documentation was ongoing as at the date of approval of these financial statements.
Based on the management assessment and written confirmations received from the respective beneficiary banks, the Company
does not expect any outflow of economic resources in respect of the aforesaid guarantees.
44. Event Occurring after the Balance sheet date
The dividend declared by the Company is based on profits available for distribution as reported in the financial statements of the
Company. On 28th April, 2026, the Board of Directors of the Company has proposed a dividend of H0.10 (previous year: H0.10 per
equity share) per fully paid-up equity share of H1 each in respect of the year ended 31st March, 2026, subject to the approval of
shareholders at the Annual General Meeting. If approved, the dividend would result in a cash outflow of approximately H11.29
million (Previous Years: H11.28 million).
45. As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. The disclosure in respect of
CSR Expenditure during the current and previous year as aligned with the CSR Policy of the Company which is in line with the
activities specified in Schedule VII of the Companies Act, 2013 is as under:
Accounting Policy :
Lease commitments
The Company has lease contracts for certain items of office premises, plant & machinery and land. The Company's obligations under
leases are secured by the lessor's title to the leased assets.
Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.
Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date
of initial application.
Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.
Set out below are the carrying amounts of lease liabilities included under financial liabilities and right to use asset included under non¬
current assets and the movements during the current and previous year.
48.1 Remuneration paid to directors represents short-term employee benefits and does not includes any long-term employee benefits
post retirement.
48.2 All related party transactions entered during the current and previous financial year are in ordinary course of business and on arm's
length basis.
49. SEGMENT REPORTING
Accounting Policy :
The identification of operating segment is consistent with performance assessment and resource allocation by the chief operating
decision maker. An operating segment is a component of the Company that engages in business activities from which it may earn
revenues and incur expenses including revenues and expenses that relate to transactions with any of the other components of the
Company and for which discrete financial information is available. Operating segments of the Company comprises three segments
Engineering, Polymer products and Infrastructure segment. All operating segment's operating results are reviewed regularly by the chief
operating decision maker to make decisions about resources to be allocated to the segments and assess their performance.
(C) Information about major customers
Total amount of revenues from customers (each exceeding 10% of total revenues of the Company) is KNIL million (Previous Year:
H11,001.07 million) reported under engineering & infrastructure segment. During the year there is no revenue from a single export
customers, which is more than 10% of the Company's total revenue.
(D) Other disclosures
(i) The Operating Segments have been reported in a manner consistent with the internal reporting and evaluation by Chief
Operating Decision Maker (CODM).
(ii) The business segment comprise the following :
The Engineering Products segment which includes Power Transmission Towers, Tower Accessories, Fasteners, Telecom
Towers, Angles, Channels, Highmast Poles, Swaged Poles, Solar Power Systems, Railway Structures etc.
The Infrastructure Projects segment represents Engineering, Procurement & Construction services.
The Polymer Product segment which includes PVC, HDPE, CPVC, UPVC, SWR pipes & fittings, Water Tanks, Bath fittings and
other related products.
(iii) The geographical information considered for disclosure are : Sales within India and Sales outside India.
(iv) There are no inter-segment revenues.
(F) Performance obligation at a point in time: Upon delivery/shipment as per the terms of contract.
(G) The contracts do not have any financing component.
50. FAIR VALUATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (NON-CURRENT AND CURRENT)
Accounting Policy :
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation
technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability
if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair
value for measurement and/or disclosure purposes in the financial statement is determined on such a basis, leasing transactions and
measurements that have some similarities to fair value but are not fair value, such as net realisable value in Inventories or value in use in
Impairment of Assets.
50. FAIR VALUATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (NON-CURRENT AND
CURRENT) (Contd.)Financial instruments
The estimated fair value of the Company's financial instruments is based on market prices and valuation techniques. Valuations are made
with the objective to include relevant factors that market participants would consider in setting a price, and to apply accepted economic
and financial methodologies for the pricing of financial instruments. References for less active markets are carefully reviewed to establish
relevant and comparable data.
(B) Fair Value Measurement & Hierarchy
The fair values of the financial assets and liabilities is 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 Company has established the following fair value hierarchy that categories the values into 3 heads. The inputs to valuation
technique used to measure the fair value of the financial instruments are:
Level 1: Quoted prices (unadjusted ) in the active markets for identical assets or liabilities that the entity can access at the
measurement date.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or
indirectly i.e. fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximises the use of observable market data and rely as little as possible on Company specific estimates. If all the significant
inputs required to fair value an instrument are observable, the instruments is included in level 2.
Level 3: Unobservable inputs for the assets or liability i.e. if one or more of the significant inputs is not based on observable market
data, the instruments is included in level 3.
Financial Assets and Financial Liabilities measured at Fair Value Through Statement of Profit & Loss and Fair Value through Other
Comprehensive Income
Note:
(a) Current financial assets and liabilities are stated as amortised cost which is approximately equal to their fair value.
(b) Non-current financial assets and liabilities measured at amortised cost have same fair value as at 31st March, 2026 and 31st
March, 2025.
Valuation Techniques
The following methods and assumptions were used to estimate the fair values
Derivative assets/liabilities has been fair valued on Mark to Market valuation provided by Banks and financial services firm.
Changes in level 2 and level 3 fair values are analysed at each reporting period.
51. EMPLOYEE BENEFITS
Accounting Policy :
a) Short Term Employee Benefits
Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related services are
provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within twelve
months after the end of the period in which the employees render the related service are recognized in respect of employees'
services up to the end of the reporting period.
b) Other Long Term Employee Benefits
The liabilities for earned leaves that are not expected to be settled wholly within twelve months are measured as the present
value (determined by actuarial valuation using the projected unit credit method) of the expected future payments to be made
in respect of services provided by employees up to the end of the reporting period and recognised in books of accounts. The
present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market
yields at the end of the reporting period on government bonds. Re-measurements as the result of experience adjustment and
changes in actuarial assumptions are recognized in standalone statement of profit and loss.
c) Post-Employment Benefits
The Company operates the following post-employment schemes:
i) Defined Benefit Plan
The liability or asset recognized in the Balance Sheet in respect of defined benefit 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 Company's net obligation in
respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in
the current and prior periods.
The defined benefit obligation is calculated annually by Actuaries using the projected unit credit method. The liability
recognized for defined benefit plans is the present value of the defined benefit obligation at the reporting date less the fair
value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service costs. Net interest
is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Past
service cost is recognised in the standalone statement of profit and loss in the period of a plan amendment. The present
value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market
yields at the end of the reporting period on government bonds.
Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and
the return on plan assets (excluding net interest), is reflected immediately in the Balance Sheet with a charge or credit
recognised in Other Comprehensive Income (OCI) in the period in which they occur. Re-measurement recognised in OCI is
reflected immediately in retained earnings and will not be reclassified to standalone statement of profit and loss.
The Company contributes to fund maintained with Life Insurance Corporation of India.
ii) Defined Contribution Plan
Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation other
than the contribution payable to the Provident fund. Contribution payable under the provident fund is recognised as
expenditure in the standalone statement of profit and loss.
Disclosure pursuant to Indian Accounting Standard (Ind AS) 19 - Employee Benefits are as under :
(B) Defined Benefit Plan :
Post employment and other long term employee benefits in the form of gratuity and leave encashment are considered
as defined benefit obligation. The employees' gratuity fund scheme managed by Life Insurance Corporation of India is
a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected
Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation. Under the PUC method a "projected
accrued benefit" is calculated at the beginning of the year and again at the end of the year for each benefit that will
accrue for all active members of the Plan. The "projected accrued benefit" is based on the Plan's accrual formula and
upon service as of the beginning or end of the year, but using a member's final compensation, projected to the
age at which the employee is assumed to leave active service. The Plan liability is the actuarial present value of the
"projected accrued benefits" as of the beginning of the year for active members.
Liability for leave payable at the time of retirement has been recognized on actuarial basis.
Pursuant to the notification issued by the Ministry of Labour and Employment, the Code on Wages, 2019, the Code
on Social Security, 2020, the Industrial Relations Code, 2020 and the Occupational Safety, Health and Working
Conditions Code, 2020 (collectively referred to as the "New Labour Codes") became effective from 21st November
2025. The Company has reassessed its employee benefit obligations in accordance with the revised definition of
wages. Accordingly, an incremental liability on account of past service cost in accordance with IND AS 19 - Employee
Benefits, amounting to H47.89 million has been charged to Statement of Profit and Loss under the head Salary &
Wages for the financial year ended 31st March 2026. The Company continues to monitor developments relating to
the implementation of the New Labour Codes and will review its estimates and assumptions on an ongoing basis.
Risk Exposure:
Defined Benefit Plans expose the Company to actuarial risks such as: Interest Rate Risk, Salary Risk, Demographic Risk
and Regulatory risk.
(a) Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government
bonds. If bond yields fall, the defined benefit obligation will tend to increase.
(b) Salary risk : Higher than expected increases in salary will increase the defined benefit obligation.
(c) Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that
include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit
obligation is not straight forward and depends upon the combination of salary increase, discount rate and
vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement
benefit of a short career employee typically costs less per year as compared to a long service employee.
51. EMPLOYEE BENEFITS (Contd.)
(d) Regulatory Risk : Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act ,
1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts
(e.g. Increase in the maximum limit on gratuity from H1 million to H2 million). An upward revision of maximum
gratuity limit will result in gratuity plan obligation.
The following tables summarises the components of net benefit expense recognised in the statement of
profit and loss and the funded status and amounts recognised in the balance sheet for the Post-retirement
benefit plans.
52. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Accounting Policy :
Derivatives and Hedge Accounting
Derivatives are initially recognised at fair value and are subsequently remeasured to their fair value at the end of each reporting period.
The resulting gains / losses are recognised in Statement of Profit and Loss immediately unless the derivative is designated and effective
as a hedging instrument, in which case the resulting gain / loss is recognised as per the hedge accounting principles stated below.
The Company complies with the principles of hedge accounting where derivative contracts and / or non-derivative financial assets
/ liabilities that are permitted under applicable accounting standards are designated as hedging instruments. At the inception of the
hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, along with the
risk management objectives and its strategy for undertaking hedge transaction, which can be a fair value hedge or a cash flow hedge.
Fair Value Hedge
Changes in fair value of the designated portion of hedging instruments that qualify as fair value hedges are recognised in the Statement
of Profit and Loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the
hedged risk. Such fair value changes are recognised in the line item relating to the hedged item in the Statement of Profit and Loss.
Hedge accounting is discontinued when the hedging instrument is derecognised, expires or is sold, terminated, or exercised, or when it
no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the hedged
risk is included in the Statement of Profit and Loss from that date.
Cash Flow Hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised
in the other comprehensive income and accumulated as 'Cash Flow Hedging Reserve'. The gains / losses relating to the ineffective
portion are recognised in the Statement of Profit and Loss. Amounts previously recognised and accumulated in other comprehensive
income are reclassified to profit or loss when the hedged item affects the Statement of Profit and Loss. However, when the hedged
item results in the recognition of a non- financial asset/non-financial liability, such gains / losses are transferred from equity (but not
as reclassification adjustment) and included in the initial measurement cost of the non- financial asset/non-financial liability. Hedge
accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies
for hedge accounting. Any gains /losses recognised in other comprehensive income and accumulated in equity at that time remain
in equity and is reclassified when the underlying transaction is ultimately recognised. When an underlying transaction is no longer
expected to occur, the gains / losses accumulated in equity are recognised immediately in the Statement of Profit and Loss.
The Company's principal financial liabilities other than derivatives comprise long-term and short-term borrowings, capital creditors and
trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal
financial assets other than derivatives include trade and other receivables, cash and cash equivalents and deposits that derive directly
from its operation.
The Company is exposed to market, credit, liquidity and regulatory risks. The Company's senior management oversees the management
of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below :
(A) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: commodity risk, interest rate risk and foreign currency risk. The Company has
established risk management policies to hedge the volatility in cashflows arising from these risks.
(a) Commodity Price Risk
Company is affected by the price volatility of certain commodities, primarily, Steel, Zinc, PVC Resin and Aluminium. Its
operating activities require the on-going purchase of these materials. The company has arrangement to pass-through
the increase/decrease in Steel, Aluminium and Zinc price through price variance clause in majority of the contract. Resin
price is primarily dependent on Crude Oil prices. There is a certain residual risk carried by the Company that cannot be
hedged against. The company effectively manages deals with availability of material as well as price volatility by widening
its sourcing base, through well planned procurement & inventory strategy and prudent hedging policy on such commodity
price fluctuation.
(b) 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 rate relates primarily to the
Company's operating activities (when revenue or expense is denominated in a foreign currency). Further, the Company
has foreign currency risk on import of input materials, capital commitment and also borrow funds in foreign currency
for its business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to
exchange rate risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities
are denominated in similar foreign currencies, for the remaining exposure to foreign exchange risks, the Company adopts
a policy of selective hedging based on risk perception of management using derivative, whenever required, to mitigate or
eliminate the risks.
(i) Unhedged Foreign Currency Exposure
The Company's exposure to foreign currency risk at the end of the reporting period are as given below :
(c) Interest Rate risk
The Company is exposed to interest rate risk on financial liabilities such as borrowings, both short-term and long-term.
It maintains a balance of fixed and floating interest rate borrowings and the proportion is determined by current market
interest rates, projected debt servicing capability and view on future interest rates.
For details of the Company's short-term and long-term borrowings, including interest rate profiles, refer to note 15.04 and
22.02 of this financial statements.
Impact of increase/decrease in benchmark interest rates on the Company's equity and statement of Profit and Loss for the
year are as given below:
(B) Liquidity Risks
The Company determines its liquidity requirement in the short, medium and long term. Its objective is to maintain optimum
levels of liquidity to meet its cash and collateral requirements at all times. The Company relies on a mix of borrowings and excess
operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium/
long term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash
to meet operational needs.
(a) Financing Arrangement
The Company had access to the following undrawn borrowing facility at the end of the reporting date:
(C) Credit Risks
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.
Trade Receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics
of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on
credit risk assessment. 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 a practical expedient by computing the expected credit loss allowance for trade receivables based on
a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking
information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given
in the provision matrix. The provision matrix at the end of the reporting period is as follows:
(D) Regulatory Risks
The Company performance may be impacted due to change in Regulatory Environment. The Company is closely monitoring the
regulatory developments and risks thereof and proactively implementing course correction for proper compliance commensurate
with new regulatory requirements.
53. CAPITAL MANAGEMENT
The Company's objective to manage its capital is to ensure continuity of business while at the same time provide reasonable
returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is
reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic
investments. The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. Apart from internal accrual, sourcing of capital is done through judicious
combination of equity and borrowing, both short term and long term. The Company is not subject to any externally imposed
capital requirements. The Company monitors capital using a debt equity ratio.
For the purpose of calculation:
Debt = Non current borrowings Current Borrowings.
Equity = Equity Share capital Other Equity
53. CAPITAL MANAGEMENT (Contd.)
capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans
and borrowings. There have been no breaches in the financial covenants of any interest bearing loans and borrowings in the
current period.
54. The Company has a dedicated R&D Centre located at Vill. & Post Barunda, PS. Bagnan, Dist. Howrah and recognised by Department
of Scientific and Industrial Research (DSIR), Government of India.
Expenditure incurred in the R&D Centre is:
56. LOANS AND ADVANCES (REPAYABLE ON DEMAND OR WITHOUT SPECIFYING ANY TERMS OR
PERIOD OF REPAYMENT) TO SPECIFIED PERSON
During the year ended 31st March, 2026, the Company did not provide any loans or advances, which remains outstanding
(repayable on demand or without specifying any terms or period of repayment ) to specified persons. (Previous Year: Nil).
57. RELATIONSHIP WITH STRUCK OFF COMPANIES
The company do not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section
560 of the Companies Act, 1956 during the year ended 31st March, 2026 (Previous year: Nil).
58. DISCLOSURE IN RELATION TO UNDISCLOSED INCOME
The Company do not have any undisclosed income disclosed or surrendered during the year ended 31st March, 2026. (Previous
year: Nil).
59. DETAILS OF BENAMI PROPERTY HELD
The Company do not hold any property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder, hence there are no proceedings against the company for the year ended 31st March, 2026 and also for the year ended
31st March, 2025.
60. REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)
The Company do not have any charges or satisfaction, which are yet to be registered with ROC beyond the statutory period,
during the year ended 31st March, 2026 and also during the year ended 31st March, 2025.
61. DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY
The company have not traded or invested in crypto currency or virtual currency during the year ended 31st March, 2026 and also
during the year ended 31st March, 2025.
62. The Company has not been declared wilful defaulter by bank or any financial institution or
government or any government authority.63. UTILISATION OF BORROWED FUND AND SHARE PREMIUM
The Company have 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.
The Company have not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the
understanding (whether recorded in writing or otherwise) that the company shall: (a) directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or (b) provide
any guarantee, security or the like on behalf of the ultimate beneficiaries.
64. RIGHT ISSUE OF EQUITY SHARES
The Board of Directors of the Company ('the Board') at its meeting held on 16th August 2023 had approved raising of funds by way
of an issue of equity shares through rights issue ("Rights Issue"). On 19th February, 2024, the Rights Issue Committee as constituted
by the Board of the Company approved allotment of 1,02,67,021 partly paid-up equity shares to the eligible equity shareholders at
an issue price of H194 per equity shares (including premium of H193 per equity shares), of which H48.50 per equity shares has been
received on application, H0.25 has been paid-up on application as share capital and H48.25 as a premium per equity shares). The
board on 28th October, 2024 approved making of first and final call money. The Call money was fully received, except for 33,198
equity shares which were approved for forfeiture by the Board on 7th November, 2025, and subsequently forfeited.
65. Balances of certain debtors and creditors are subject to confirmation and reconciliation. In the opinion of the management,
current assets, loan and advances will have value on realization in the ordinary course of business at least equal to the amount at
which they are stated.
69. The Company has used the borrowings from bank for the specific purpose for which it was taken.
70. The Company has used accounting software for maintaining its books of account for the financial year ended 31st March, 2026
which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software except that audit trail was not enabled at the database level for accounting software to log
any direct data changes till 31st December, 2025. Further there is no instance of audit trail feature being tampered and the audit
trail has been preserved by the company as per the statutory requirements for record retention except at the database level for
the aforementioned period.
71. The management has evaluated all activities of the Company till 28th April, 2026 and concluded that there ware no additional
subsequent event required to be reflected in the Company's standalone financial statements.
72. Previous year figures have been re-grouped / re-classified wherever necessary, to conform to current year classification.
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