3.13 Provisions and contingencies
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.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as
a finance cost.
Disclosure for contingent liabilities is made when
there is a possible obligation arising from past events,
the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the
Company or a present obligation that arises from past
events where it is either not probable that an outflow
of resources embodying economic benefits will be
required to settle or a reliable estimate of the amount
cannot be made.
3.14 Cash and short-term deposits
Cash and short-term deposits in the statement of
financial position comprise cash at banks and on hand
and short-term highly liquid deposits with a maturity of
three months or less, that are readily convertible to a
known amount of cash and subject to an insignificant
risk of changes in value.
For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above.
3.15 Employee benefits
Short-term employee benefits
Liabilities for short-term employee 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 recognised 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 related liabilities under other financial
liabilities in balance sheet.
Post - employment benefits
The liability or asset recognised 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 defined
benefit obligation is calculated annually at year end 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 Benefits Expense' in the
Statement of Profit and Loss.
Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly
in other comprehensive income. These are included in
retained earnings in the statement of changes in equity
and in the balance sheet.
Changes in the present value ofthe defined benefit obligations
resulting from plan amendments or curtailments are
recognised immediately in profit or loss as past service cost.
Defined contribution plan
The Company pays provident fund contributions to
publicly administered provident fund as per local
regulations. 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 recognised as employee
benefit expense when they are due. Prepaid contributions
are recognised as an asset to the extent that a cash
refund or a reduction in the future payments is available.
3.16 Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
• the profit attributable to equity
shareholders of the Company
• by the weighted average number of equity
shares outstanding during the financial year
(ii) 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.
3.17 Contributed equity
Equity shares are classified as equity. Incremental
cost directly attributable to the issue of new shares or
options are shown in equity as reduction, net of tax
from the proceeds.
3.18 Segment reporting
Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker (‘CODM').The CODM is responsible for
allocating resources and assessing performance of
the operating segments and has been identified as the
Board of Directors of the Company.
Note 15.1
The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources
or kind of funds) to any other person or entity, including foreign entities (“Intermediaries”) with the understanding (whether
recorded in writing or otherwise) that the Intermediary shall, whether, directly or indirectly lend or invest in other persons/
entities identified in any manner whatsoever by or on behalf of the Company (‘ultimate beneficiaries') or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
Note 15.2
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 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 provide
any guarantee, security or the like on behalf of the ultimate beneficiaries.
(a) Securities Premium
Securities Premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the
provisions of the Companies Act, 2013
(b) Retained earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to reserves, dividends or other
distributions paid to shareholders. Retained earnings is a free reserve available to the Company.
(c) Remeasurement of employee defined benefits
Remeasurement of employee defined benefits represents re-measurement loss or gain on defined benefit plans, net of
taxes that will not be reclassified to profit or loss.
(d) FVOCI equity investments
The Company has elected to recognise changes in the fair value of certain investments in equity securities in other
comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity. The
Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.
(e) Capital redemption reserve
The Companies Act, 2013 (the “Companies Act”) requires that where a Company redeem its preference shares out of
free reserves or securities premium, a sum equal to the nominal value of the preference shares so redeemed shall be
transferred to a capital redemption reserve and details of such transfer shall be disclosed in the balance sheet. The capital
redemption reserve may be applied by the Company, in paying up unissued shares of the Company to be issued to
shareholders of the Company as fully paid bonus shares.
(b) Unsecured borrowings from others
Unsecured borrowings from others represents borrowings from body corporates, which is repayable on demand.
(c) Quarterly return or statements filed with banks
The Company has filed quarterly returns or statements with the banks in lieu of the sanctioned working capital facilities.
There was no material difference between the amount of trade receivable reported to the banks, except for the quarter
ended March 31, 2025, December 31, 2024, Sepetember 30, 2024 and June 30, 2024 & March 31, 2024, December
31, 2023, September 30, 2023 and June 30, 2023, whereby the reported amounts of trade receivable were lower by H
1,166.10 Million, lower by H 1467.25 Million, lower by H 1,442.62 Million and lower by H 1,703.92 Million & lower by H 1,370.49
Million, higher by H 20.39 Million, lower by H 50.92 Million and higher by H 31.75 Million, respectively. Such differences were
primarily due to adjustments pursuant to reconciliation with the customers subsequent to the filing of the said statements.
Note:
(a) The Company recognises revenue when control over the services is transferred to the customer at an amount that reflects
the consideration to which the Company expects to be entitled in exchange for those services.
(b) The Company does not have any significant adjustments between the contracted price and revenue recognized in the
Standalone Statement of Profit and Loss.
(c) The Company recognises revenue from rendering of services overtime, as and when such services are performed.
Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of
information collected by the Management. This has been relied upon by the auditors.
Note 33: Employee Benefits
Employees Defined Contribution Plans - Provident Fund
The Company provides Provident Fund facility to eligible employees. The fund is managed by Commissioner of the Providend
Fund. The contributions are expensed as they are incurred in line with the treatment of wages and salaries. The liability of the
Company is limited to the contribution deducted from the salary of the employee and the Company's share. The Company has
recognized, in the Standalone Statement of Profit and Loss for the current year, an amount of H 23.91 Million (for the year ended
March 31, 2024: H 22.33 Million) as expenses under defined contribution plans.
Employee Defined Benefit Plans - Gratuity [Unfunded]
The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous
service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees
last drawn basic salary per month computed proportionately for 15 days salary multiplied by the number of years of service
completed, subject to the maximum amount of H 2 Million. The gratuity plan is an unfunded plan. The Company does not fully
fund the liability and make the payments as and when they become due from its own funds.
Note 33: Employee Benefits (Contd..)
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied
in calculating the projected benefit obligation as recognised in the standalone balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
(iv) Major categories of plans asset
The scheme is unfunded.
(v) Risk exposure
Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are
detailed below:
Pay-as-you-go Risk:
For unfunded schemes financial planning could be difficult as the benefits payable will directly affect the revenue and this
could be widely fluctuating from year to year. Moreover there may be an opportunity cost of better investment returns
affecting adversely the cost of the scheme.
Discount rate risk:
The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase in the ultimate cost
of providing the above benefit thereby increasing the value of the liability.
Liquidity Risk:
This risk arises from the short term asset and liability cash-flow mismatch thereby causing the company being unable to pay
the benefits as they fall due in the short term. Such a situation could be the result of holding large illiquid assets disregarding
the results of cash-flow projections and cash outgo inflow mismatch. (Or it could be due to insufficient assets/cash.)"
Future Salary Increase Risk:
The Scheme cost is very sensitive to the assumed future salary escalation rates for all final salary defined benefit Schemes.
If actual future salary escalations are higher than that assumed in the valuation actual Scheme cost and hence the value of
the liability will be higher than that estimated.
Demographic Risk:
In the valuation of the liability certain demographic (mortality and attrition rates) assumptions are made. The Company
is exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby
causing an increase in the scheme cost.
Regulatory Risk:
Gratuity Benefit must comply with the requirements of the Payment of Gratuity Act, 1972 (as amended up-to-date). There is
a risk of change in the regulations requiring higher gratuity payments (e.g. raising the present ceiling of H 2 Million, raising
accrual rate from 15/26 etc.)
(vi) Other disclosures
a. Expected contribution for next year (12 months), i.e. 2025-26: H 17.25 Million
b. Weighted average duration of the defined benefit obligation is 5.32 years (As at March 31, 2024: 5.55 years)
c. Estimated Cash Flows (discounted) in subsequent years
(i) The carrying amounts of current financial assets and liabilities carried at amortised cost closely approximate to their fair
values as the impact of discounting on such financial assets or liabilities is not significant considering the instruments
matures in a very short time.
(ii) Unsecured loans from related parties are repayble on demand and accordingly represents its fair value.
(iii) Long-term security deposits are repayable on closure of contracts i.e., repayable on demand and accordingly carrying
amount reflect its fair values. The same can be categorised as Level 3 fair value.
(iv) Long-term borrowings carries both fixed and variable rate of interest. For variable interest rate borrowings, carrying amounts
are considered to represent fair value of such borrowings. For fixed rate borrowings fair values have been determined
using discounted cash flow approach using the current interest rates. The fair values of the borrowings can be categorised
as Level 2 fair values.
(v) Fair value of investment in equity instruments is determined using the cost method. The fair value of the investments is
classified level 3. There is no significant operations in the investee entity and accordingly there are no significant changes
in the fair value.
Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are
(a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the
financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company
has classified its financial instruments into the three levels prescribed under the accounting standard.
(a) Level 1 - Quoted prices in an active market:
This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active
markets for identical assets or liabilities.
Note 34: Financial Instruments and fair value measurements (Contd..)
(b) Level 2 - Fair values determined using valuation techniques with observable inputs:
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.
(c) Level 3 - Fair values determined using valuation techniques with significant unobservable inputs:
This level of hierarchy includes financial assets and financial liabilities measured using inputs that are not based on
observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model
based on assumptions that are neither supported by prices from observable current market transactions in the same
instrument nor are they based on available market data.
There are no transfers between levels 1, 2 and 3 during the year.
Note 35: Capital management
Risk management
The Company's objectives when managing capital are to:
(a) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders, and
(b) Maintain an optimal capital structure to reduce the cost of capital.
The capital structure of the Company consists of debt, cash and cash equivalents and equity attributable to equity shareholders
of the Company which comprises issued share capital and accumulated reserves disclosed in the statement of changes in
equity and debts appearing as part of the borrowings.
The capital structure of the Company is based on management's judgement of the appropriate balance of key elements in
order to meet its strategic and day-to-day needs. The Company manages its capital structure and makes adjustments in light
of changes in economic conditions and the requirements of the financial covenants. The funding requirement is met through a
mixture of equity, long term borrowings and short term borrowings.
Note 37: Financial risk management
In the course of its business, the Company is exposed primarily to fluctuations in interest rates, liquidity and credit risk, which may
adversely impact the fair value of its financial instruments. In order to minimise any adverse effects on the financial performance
of the Company, the Company has risk management policies as described below:
(A) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables)
including deposits with banks and financial institutions, foreign exchange transactions, other financial instruments carried
at amortised cost.
Financial instruments that are subject to credit risk and concentration thereof principally consist of trade receivables, loans
receivables, cash and cash equivalents and other bank balances held by the Company. Trade receivables, cash and cash
equivalents and other bank balances of the Company result in material concentration of credit risk.
The carrying value of financial assets represents the maximum credit risk. The maximum exposure to credit risk was
H 8,504.83 Million and H 5,945.61 Million as at March 31, 2025 and March 31, 2024 respectively, being the total carrying
value of trade receivables, balances with bank, bank deposits, loans and other financial assets.
Trade receivables
Customer credit risk is managed by the Company through established policy and procedures and control relating to
customer credit risk management. Trade receivables are non-interest bearing and are generally carrying 30 to 60 days
credit terms. The Company has a detailed review mechanism of overdue customer receivables at various levels within the
organisation to ensure proper attention and focus for realisation. The Company periodically assesses the financial reliability
of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable.
Financial assets are considered to be of good quality and there is no significant increase in credit risk."
The requirement for impairment is analysed at each reporting date. The Company' receivables turnover is quick and
historically, there was no significant defaults on account of those customer in the past. Ind AS requires an entity to
recognise in profit or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance
at the reporting date to the amount that is required to be recognised in accordance with Ind AS 109, Financial Instruments.
Expected credit losses are measured at an amount equal to the life time expected credit losses. 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
outstanding receivables are regularly monitored to minimise the credit risk.
Note 37: Financial risk management (Contd..)
The Company evaluates the concentration of risk with respect to trade receivables and contract assets as low, as its
customers are located in several jurisdictions and industries and operate in largely independent markets. Of the trade
receivables balance, H 2,438.75 Million in aggregate (H 2,152.41 Million as at March 31, 2024) is due from the Company's
customers individually representing more than 5% of the total trade receivables balance and accounted for approximately
39.62% (40.58% as at March 31, 2024 ) of all the receivables outstanding.
Other financial instruments and bank deposits
Credit risk from balances with banks is managed by the Company's finance department in accordance with the Company's
policy. Counterparty credit limits are reviewed by the Company's Board of Directors on an annual basis, and may be
updated throughout the year subject to approval of the Company's Board of Directors. The limits are set to minimise the
concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
Balances with banks and deposits are placed only with highly rated banks/financial institution.
(B) Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that
are settled by delivering cash or another financial asset.
Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of
expected cash flows. This is generally performed in accordance with practice and limits set by the Company.
Maturities of financial liabilities
The tables below analyse the Company's financial liabilities into relevant maturity based on their contractual maturities.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their
carrying balances as the impact of discounting is not significant.
(C) Market Risk
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the
Company's debt obligations with floating interest rates.
Note 44: IPO
The Company completed its Initial Public Offer (IPO) of 28,655,813 equity shares of face value of H 5 each at an issue price
of H 172 per share (including a share premium of H 167 per share) out of which 23,255,813 equity shares were issued and
subscribed. The issue comprised of a fresh issue of 23,255,813 equity shares aggregating to H 4000.00 Million and offer for
sale of 5,400,000 equity shares by selling shareholders aggregating to H 928.80 Million. Pursuant to the IPO, the equity shares
of the Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on September 24,2024.
The total offer expenses were estimated to be H 456.52 Million (inclusive of taxes). Out of the total expenses H 85.90 Million
(inclusive of taxes) is to be borne by selling shareholders
Net proceeds of H 1,555.21 Million which were unutilised as at March 31, 2025, were temporarily invested fixed deposit account
with scheduled commercial banks
Note 45: Struck off companies
The Company does not have any transactions with struck off companies.
Note 46: Subsequent events
Others
There were no significant adjusting events after end of the reporting period which require any adjustment or disclosure in the
financial statements subsequent to the reporting period.
Note 47: Crypto Currency or Virtual Currency
The group has not traded or invested in Cropto currency or Virtual Currency durign the financial year.
Note 48: Reclassification
Previous year figures have been regrouped/ rearranged/ reclassified wherever necessary. Further, there are no material
regroupings/ reclassifications during the year.
Note 49: Impact of the Code on Social Security, 2020
The Code on Social Security, 2020 (‘Code') relating to employee benefits during employment and post-employment received
Indian Parliament approval and Presidential assent in September 2020. The Code has been published in the Gazette of India
and subsequently on November 13, 2020 draft rules were published and invited for stakeholders' suggestions. However, the
date on which the Code will come into effect has not been notified. The Group will assess the impact of the Code when it comes
into effect and will record any related impact in the period the Code becomes effective.
Note 50: Approval of financial statements
The standalone financial statements has been approved for issue by the resolution of the board of directors dated May 16, 2025
For D C Dharewa & Co. For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration Number : 322617E
Rajendra Sethia Sapna Kochar
Chairman and Managing Director Company Secretary
DIN: 00267974 Membership Number: A56298
D C Dharewa
Proprietor Kanishka Sethia
Membership Number: 053838 Whole time Director, CEO & CFO
Kolkata, May 16, 2025 DIN: 00267232
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