Material accounting policy information has been identified and disclosed based on the guidance provided under Ind AS
1. The material accounting policy information used in preparation of the standalone financial statements have been
disclosed in the respective notes.
3.1 Key accounting estimates and judgements
The preparation of the Company's Standalone financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
notes and disclosures, and the disclosure of contingent liabilities. Estimates and underlying assumptions are reviewed on
an ongoing basis. Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods.
Revisions to accounting estimates are recognised prospectively. The changes in the estimates are reflected in the
Standalone financial statements in the period in which changes are made and, if material, their effects are disclosed in
the notes to the Standalone financial statements.
Critical accounting estimates and key sources of estimation uncertainty: Key assumptions
(i) Useful lives of Property, plant and equipment and Other intangible assets
The Company uses its technical expertise along with historical and industry trends for determining the economic
life of an asset/component of an asset. The useful lives are reviewed by management periodically and revised, if
appropriate. In case of a revision, the unamortised depreciable amount is charged over the remaining useful life of
the assets (refer note 4A and 6).
(ii) Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using certain valuation techniques. The inputs
to these models are taken from observable market data where possible, but where this is not feasible, a degree of
judgement is required in establishing fair values. Judgements include considerations of inputs such as volatility risk
and credit risk (refer note 40).
(iii) Defined benefit plan
The Company provides defined benefit employee retirement plans. Measurement of such plans require numerous
assumptions and estimates that can have a significant impact on the recognized costs and obligation (refer note 24).
(iv) Revenue Recognition
Revenue is recognised upon transfer of control of promised products or services to customers at transaction price
that reflects the consideration which the Company expects to receive in exchange for those products or services.
The Company exercises judgment in determining whether the performance obligation is satisfied at a point in time
or over a period of time. The Company considers the terms of the contract in determining the transaction price. For
incentives/discounts offered to customers/dealers, the Company makes estimates related to customer performance
and sales volume to determine the total amounts earned and to be recorded as deductions. No element of significant
financing is deemed present as the sales are made with a credit term, which is consistent with market practice.
(v) Determination of lease liabilities
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification
of a lease requires significant judgement. The Company uses significant judgement in assessing the lease term
(including anticipated renewals) and the applicable discount rate. The Company determines the lease term as
the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the
Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the
Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain
to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts
and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or
not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non¬
cancellable period of a lease. The discount rate is generally based on the incremental borrowing rate specific to the
lease being evaluated or for a portfolio of leases with similar characteristics [refer note 35(e)].
(vi) Determination of Right of use (ROU) assets
Certain key assumptions used in determination of ROU assets and liabilities, incremental borrowing rate and lease
term. Right of use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated
useful lives of the assets (refer note 5).
4A.Property, plant and equipment
Accounting Policy
Property, plant and 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 subsequent accumulated depreciation and subsequent
accumulated impairment losses, if any.
The cost of an item of property, plant and equipment comprises its purchase price, including import duties and non¬
refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the
item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring
the site on which it is located.
Where an asset or part of an asset is replaced and it is probable that future economic benefits associated with the
item will be available to the Company, the expenditure is capitalised and the carrying amount of the item replaced
is derecognised. Similarly, overhaul costs associated with major maintenance which can be measured reliably are
capitalised and depreciated over their useful lives where it is probable that future economic benefits will be available and
any remaining carrying amounts of the cost of previous overhauls are derecognised. All other costs are charged to profit
and loss during the reporting period in which they are incurred.
4A.Property, plant and equipment (Contd.)
In case of self-constructed assets, cost includes the costs of all materials used in construction, direct labour, allocation of
overheads, directly attributable borrowing costs.
Depreciation is calculated on estimated useful lives using the written down value method for Property, plant and
equipment situated at Liluah Unit - I (Howrah), Vapi and Vizag, and on property, plant and equipment situated at other
locations are provided on straight line method over the useful lives of assets, at the rates and in the manner specified in
Part C of Schedule II of the Act except in respect of certain categories of assets, where the useful life of the assets has been
assessed based on a technical evaluation.
The estimated useful life, depreciation method and residual value are reviewed at the end of each annual reporting year,
with the effect of any changes in estimate being accounted for on a prospective basis. Each component of an item of
property, plant and equipment with a cost that is significant in relation to the cost of that item is depreciated separately
if its useful life differs from the other components of the asset.
Freehold land is not depreciated. Leasehold land (includes development cost) is amortised on a straight-line basis over
the period of respective lease, except land acquired on perpetual lease. Useful lives and residual values are reviewed
at each financial year end and adjusted, as appropriate. Leasehold improvements are amortised/ depreciated over the
remaining tenure of the contract.
Based on technical assessment done by experts in earlier years and management's estimate:
- Useful life of property, plant and equipment are different than those indicated in Schedule II to the Act, as stated above.
- Residual value on property, plant and equipment has been estimated at 5% of the cost, specified in Schedule II of
the Act.
The management believes that these estimated useful lives and residual values are realistic and reflect fair approximation
of the period over which the assets are likely to be used.
Depreciation on additions/ (disposals) is provided on a pro-rata basis i.e. from/ (upto) the date on which asset is ready for
use/ (disposed off).
Property, plant and equipment with finite life are evaluated for recoverability whenever there is any indication that their
carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair
value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate
cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined
for the cash generating unit (CGU) to which the asset belongs. If the recoverable amount of an asset or CGU is estimated
to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount.
An impairment loss is recognised in the statement of profit and loss. Impairment losses are reversed in the standalone
statement of profit and loss only to the extent that the asset's carrying amount does not exceed the carrying amount that
would have been determined if no impairment loss had previously been recognised.
(b) As at 31 March 2026, Property, plant and equipment with net carrying amount of J408.66 lakhs (31 March 2025:
H1,37,733.16 lakhs) are subject to first charge to secure borrowings (refer note 19).
(c) Gross carrying amount includes Research and development assets (Building, Plant and equipment, Furniture and
fixtures and Office equipment) of J3,012.70 lakhs (31 March 2025: H2,830.70 lakhs) and net carrying amount of
J1,711.64 lakhs (31 March 2025: H1,698.58 lakhs). Additions to the Research and development assets during the
year 2025-2026 is J182.00 lakhs (2024-2025: H342.11 lakhs).
(d) The title deeds of leasehold Land are duly registered with appropriate authorities and title deeds of Freehold land
amounting to J518.86 lakhs, which were transferred to the Company pursuant to the Scheme of Amalgamation, are
in the process of transfer in the name of the Company.
(e) For contractual commitment with respect to Property, plant and equipment, refer note 35(d).
(f) The Company has not revalued its property, plant and equipment during the year ended 31 March 2026 and also
during previous year ended 31 March 2025.
(g) The Company has performed an assessment of its property plant and equipment 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 are impaired.
(h) Addition to plant and machinary include trial and expenses amounting to J4,733.08 lakhs (31 March 2025: Nil).
4B. Capital work-in-progress
Accounting Policy
Capital work-in-progress assets in the course of construction for production or/and supply of goods or services or
administrative purposes, or for purposes not yet determined, which are not ready for intended use as on the date of
Balance Sheet are disclosed as Capital work-in-progress and are carried at cost, less any recognised impairment loss,
if any. Temporarily suspended projects do not include those projects where temporary suspension is a necessary
part of the process of getting an asset ready for its intended use.
Directly attributable expenditure (including finance costs relating to borrowed funds/general borrowings for
construction or acquisition of property, plant and equipment) incurred on project under implementation are treated
as Pre-operative expenses pending allocation to the asset and are shown under CWIP.
The Company has performed an assessment of its Capital work in progress 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 Capital work in progress are impaired.
Capital Work-in-Progress as at 31 March 2026 mainly comprises of construction of warehouse, office building, plant
& equipment related to R&D and other projects. As at 31 March 2025 capital work-in-progress mainly comprises
construction of warehouse building, plant & equipment related to speciality carbon black project, R&D and
other projects.
5. Right of use assets
Accounting Policy
The Company recognises right of use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities. The cost of right of use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or before the commencement date. Right of use
assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of
a purchase option, depreciation is calculated using the estimated useful life of the asset.
7. Financial Assets
Accounting Policy
AH 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.
Classification of financial assets
Financial assets are classified as 'equity instrument' if it
is a non-derivative and meets the definition of 'equity'
for the issuer (under Ind AS 32 Financial Instruments:
Presentation). All other non-derivative financial assets
are 'debt instruments'.
Initial Recognition and Subsequent Recognition
(i) Amortised Cost
Financial assets are subsequently measured
at amortised cost using the effective interest
method, if these financial assets are held within
a business whose objective is to hold these assets
in order to collect contractual cash flows and the
contractual terms of the financial assets give rise
on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.
The Company may irrevocably elect at initial
recognition to classify a debt instrument that meets
the amortised cost criteria above as at FVTPL if that
designation eliminates or significantly reduces an
accounting mismatch had the financial asset been
measured at amortised cost.
Financial assets classified at amortised cost
comprise trade receivables, loans, government
securities etc.
(ii) Fair value through other comprehensive income
(FVTOCI)
Financial assets are measured at fair value through
other comprehensive income if these financial
assets are held within a business whose objective
is achieved by both collecting contractual cash
flows on specified dates that are solely payments
of principal and interest on the principal amount
outstanding and selling financial assets.
On initial recognition, the Company has an
irrevocable option to present changes in the fair
value of equity investments not held for trading
in OCI. This option is made on an investment-by¬
investment basis.
Investments in equity instruments at FVTOCI are
subsequently measured at fair value with gains and
losses arising from changes in fair value recognised
in other comprehensive income and accumulated
in other Equity. Where the asset is disposed of, the
cumulative gain or loss previously accumulated
in the other Equity is directly reclassified to
retained earnings.
(iii) Fair value through profit and loss (FVTPL)
Financial assets are measured at fair value through
profit or loss unless they are measured at amortised
cost or at fair value through other comprehensive
income on initial recognition. The transaction costs
directly attributable to the acquisition of financial
assets and liabilities at fair value through profit
or loss are immediately recognised in standalone
statement of profit and loss.
Disclosure related to Fair value measurement of
financial instruments (refer note 40).
(iv) Investments in subsidiaries are carried at cost and
tested for impairment in accordance with Ind AS
36 'Impairment of Assets'.
De-recognition of Financial Assets:
The Company derecognises financial assets on
trade date only when the contractual rights to
the cash flows from the asset expire, or when it
transfers the financial assets and substantially
all the risks and rewards of ownership to another
entity or when it retains contractual rights to retain
contractual cash flows from asset, but assumes a
contractual obligation to pay the cash flows to one
or more recipient.
Impairment of Financial Assets
At each reporting date, the Company assesses
whether the credit risk on a financial instrument
has increased significantly since initial recognition.
When making the assessment, the Company
compares the risk of a default occurring on the
financial instrument as at the reporting date with
the risk of a default occurring on the financial
instrument as at the date of initial recognition and
consider reasonable and supportable information,
that is available without undue cost or effort, that is
indicative of significant increases in credit risk since
initial recognition. The amount of expected credit
losses (or reversal) that is required to adjust the
loss allowance at the reporting date is recognised
as an impairment loss or gain in the standalone
statement of profit and loss.
(a) The Company had made investments in equity shares and given loans and advances to its wholly owned
subsidiary, AAT Global Limited ('AAT'), Hongkong. AAT, in turn, invested in equity shares and had given loans
and advances to its subsidiary, Shandong Dawn Himadri Chemical Industry Limited ('SDHCIL'), China. There
had been shortfall in the business performance of both AAT and SDHCIL as compared with budgets and further
changes in the technology, market, economic environment have had adverse impact on the value of the
investments and recoverability of loans and advances given. Due to the on-going size of operations and cost-
benefit trend, both AAT and SDHCIL had been incurring losses and their net worth are fully eroded. Accordingly,
the Company's investments in equity shares of AAT, amounting to H5,244.64 lakhs, had been fully impaired and
loans and advances given to AAT, amounting to H7,554.01 lakhs, had been fully provided during the year ended
31 March 2020.
(b) Optionally Convertible Debentures (OCDs)
issued by Birla Tyres Limited (Issuer) are
Convertible into equal number of equity shares
at the option of the Debenture Holder any
time within 5 years from the date of allotment.
OCDs shall be redeemed upon expiry of 5 years
from the date of allotment, if not converted by
Debenture Holder, at a premium as may be
fixed by the Issuer at the time of redemption.
On 1 April 2025, the Company has converted
30,00,000 number of optionally convertible
debentures (OCDs) of Birla Tyres Limited (BTL)
having fair value of H305.02 lakhs into equal
number of equity shares of BTL. Subsequently
on 7 April 2025 the Holding Company has also
acquired balance 9,999 equity shares of Birla
Tyres Limited from Dalmia Bharat Refractories
Ltd for a total consideration of H9.00 lakhs,
thereby Birla Tyres Limited has become wholly
owned subsidiary of the Company.
(c) Optionally Convertible Debentures (OCDs)
issued by Himadri Birla Tyre Manufacturer
Private Limited (Issuer) are Convertible into
equal number of equity shares at the option of
the Debenture Holder any time within 5 years
from the date of allotment. OCDs shall be
redeemed upon expiry of 5 years from the date
of allotment, if not converted by Debenture
Holder, at a premium as may be fixed by the
Issuer at the time of redemption.
On 1 April 2025, the Company has converted
1,44,118 number of optionally convertible
debentures (OCDs) of Himadri Birla Tyre
Manufacturer Private Limited (HBTMPL)
having fair value of H14.41 lakhs into equal
number of equity shares and therby its
holding in HBTMPL became 49%. This voting
right does not qualify HBTMPL as a subsidiary
under Section 2(87) of the Companies Act,
2013. However based on contractual rights
(including potential voting right), the Company
has the power to make decisions concerning
relevant activities and thus has control over
HBTMPL and consequently, the management
of the Company has decided to consider
investment in HBTMPL as investment in
subsidiary company.
(d) Redeemable Non-Convertible Debentures
(NCDs) issued by Dalmia Bharat Refractories
Limited (Issuer) are redeemable on expiry
of 5 years from the date of Allotment unless
mutually extended by the Issuer and Debenture
Holder. However, both parties may mutually
agree for part redemption of debentures.
NCDs shall be subject to such other terms and
conditions (including redemption premium, if
any) as may be agreed between the Issuer and
Debenture Holder.
(e) The Company on 17 May 2024, has acquired
40% paid-up equity share capital of Invati
Creations Private Limited ("Target Company"),
for a total purchase consideration of H4,516.13
lakhs. The purchase consideration has been
discharged in the following manner -
i. H1,999.36 lakhs has been paid in cash
against fresh issue of 2,152 equity shares
of H10.00 each constituting 17.71% stake,
of the Target Company; and
ii. H2,516.77 lakhs payable for acquiring
2,709 equity shares of H10.00 each,
constituting 22.29% stake, of the Target
Company from the existing shareholders
of the Target Company for consideration
other than cash has been settled by way
of issue and allotment of 7,96,446 equity
shares of the Company having face value
of H1 each, at a price of H316.00 per equity
share (including a premium of H315.00 per
equity share) to the existing shareholders
of the Target Company.
This voting right does not qualify ICPL as
a subsidiary under Section 2(87) of the
Companies Act, 2013. However based on
contractual rights (including potential
voting right combined with 40% voting
right), the Company has the power to
make decisions concerning relevant
activities and thus has control over
ICPL as per IND AS 110: "Consolidated
Financial Statements." Consequently, the
management of the Company has decided
to consider the investment in ICPL as
investment in subsidiary Company.
(f) The Compulsorily Convertible Notes (CCNs)
issued by Sicona Battery Technologies Pty Ltd
(Issuer) are convertible into Ordinary Shares
as per the specific terms prescribed under the
Compulsorily Convertible Note Agreement
entered into the Company and the Issuer as on
September 2024. The CCNs shall be converted
into Ordinary Shares of the Issuer as per the
time frame outlined under Compulsorily
Convertible Note Agreement.
(g) 8% Redeemable Preference Share of
Dalmia Bharat Refractories Limited was
issued and allotted against discharge of
Purchase Consideration for demerger of
Tyre Undertaking of Birla Tyres Limited, in
accordance with the approved resolution plan
(as defined in Schedule 8 scheme of demerger
therein) and NCLT order dated 19 October
2023, w.e.f. 6 May 2022.
The aforesaid redeemable Preference Share
are redeemable at the option of Redeemable
Preference shareholder anytime within 5 years
at Par. The aforsaid redeemable Preference
Share carry dividend @8% p.a. on its face value
on Non-Cumulative basis.
(h) Non-cumulative optionally convertible
Preference shares (OCPS) of Modern HI-
Rise Private Limited (MHPL) are convertible/
redeemable at any time before the expiry of 20
years from the date of allotment (i.e. 1 March
2019) at the option of the Issuer. Each OCPS, if
not opted for conversion shall be redeemable
at value equal to fair market value (post
considering the market value of underlying
assets) of the proportionate equity shares of
the Issuer (if it were converted) as on 1 June
2018 (i.e. amalgamation appointed dated). The
outstanding OCPS, if not redeemed, would be
converted into equity shares at any time at the
option of the Issuer, but not later than 20 years
from the date of allotment at the option of the
Issuer in a manner that the Company would
obtain same proportion of equity shareholding
(ownership) of the Issuer as on 1 June 2018 i.e.
7.7% of the total outstanding as on 1 June 2018
and would be subject to any dilution thereof
pursuant to fresh allotment by MHPL. In case
conversion is made by the Issuer, the OCPS will
be converted into 6,253 equity shares (i.e. fixed
number of equity shares) whenever converted.
Information about the Company's fair value
measurement and exposure to credit and
market risks are disclosed in note 40 and 41.
(c) For trade receivables given as security for borrowings, refer note 19.
(d) Non-current trade receivables represent an amount of J1,018.41 lakhs (31 March 2025: H1,018.41 lakhs) due from
a customer which is currently under arbitration proceedings. Based on the merits of the case and independent legal
opinion obtained by the Company, the Company continues to believe that the outcome of the said proceedings
would be in favour of the Company.
(e) No trade receivables are due from directors of the Company either severally or jointly with any other person. Nor any
trade receivables are due from firms or private companies respectively in which any director is a partner, a director
or a member.
(f) Information about the Company's exposure to credit, market and currency risks, and loss allowances related to trade
receivables are disclosed in note 41.
9. Cash and cash equivalents
Accounting Policy
The Company considers all highly liquid investments, which are readily convertible into known amounts of cash that
are subject to an insignificant risk of change in value, and have maturities of less than 3 months from the date of such
deposits, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for
withdrawal and usage.
9. Cash and cash equivalents (Contd.)
Balances with banks on current accounts includes earmarked balances of J Nil (31 March 2025: H39.39 lakhs) lying in
CSR account.
Bank deposits of J Nil (31 March 2025: H Nil) have been pledged with the banks against various credit facilities availed
by the Company.
10. Bank balances other than cash and cash equivalents
Accounting Policy
The Company considers balances and deposits with banks having maturity of more than three months but less than 12
months to be bank balances other than Cash & Cash Equivalents.
15. Inventories
Accounting Policy
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-
out (FIFO) cost basis. Cost of raw material and traded goods comprises of Cost of purchases and also include all other
costs incurred in bringing the inventories to their present location and condition and are net of rebates and discounts.
The cost of finished goods and work in progress includes raw materials, direct labour, other direct costs and related
production overheads. The comparison of cost and net realisable value is made on an item-by-item basis.
Raw materials and supplies held for use in the production of finished products are not written down below cost except in
cases where material prices have declined and it is estimated that the cost of the finished products will exceed their net
realisable value.
17. Equity share capital (Contd.)
B. Rights, preferences and restrictions attached to equity shares
The Company has a single class of equity shares with par value of H1 per share. Accordingly, all equity shares rank
equally with regard to dividends and share in the Company's residual assets on winding up. The equity shareholders are
entitled to receive dividend as declared by the Company from time to time. The voting rights of an equity shareholder on
a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company. Equity shares
held by Investor Education and Protection Fund do not have voting rights.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company,
remaining after distribution of all preferential amounts, in proportion to the number of equity shares held.
G. Aggregate number of shares issued for consideration other than cash during the period of five years immediately
preceding the reporting date
The Company, on 17 May 2024 had allotted 7,96,446 equity shares having face value of H1 each, at a price of H316.00
per equity share (including a premium of H315.00) per equity share on a preferential basis for consideration other than
cash towards payment of H2,516.77 Lakhs ("Purchase Consideration"), payable by the Company to the Allottees, as
consideration for acquisition of 2,709 equity shares of H10 each of Invati Creations Private Limited.
H. Equity Shares issued on conversion of warrants
During the financial year 2024-25, the Company had issued and allotted 1,08,17,000 warrants, each convertible into one
equity share of H1 each, on Preferential allotment basis at an issue price of H316.00 per warrant, to the Promoters and
certain other identified persons, upon receipt of 25% of the issue price (i.e. H79.00 per warrant) as warrant subscription
money. Balance 75% of the issue price (i.e. H237.00 per warrant) shall be payable within 18 months from the date of
allotment i.e.14 May 2024, at the time of exercising the option to apply for fully paid-up equity share of H1 each of the
Company, against each warrant held by the warrant holder. Subsequently the Company upon receipt of balance 75%
of the issue price (i.e., H237.00 per warrant) for 1,60,000 warrants, has allotted equal no. of fully paid-up equity shares
against conversion of said warrants exercised by the warrant holder.
The allottees has exercised their option for conversion of the warrants into equity shares for the remaining 1,06,57,000
warrants, and on receipt of balance 75% money, such warrants has been converted into equal number of equity shares
of the Company during the financial year 2025-26. As a result of such allotment, the paid-up equity share capital of the
Company has increased by 1,06,57,000 equity shares of face value of H1 each.
19. Financial Liabilities
Accounting 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.
Financial liabilities are measured at fair value through profit and loss (FVTPL) when it is either held for trading or it is
designated as at FVTPL.
The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged,
cancelled, or have expired.
Information about the Company's exposure to fair value measurement, interest rate, currency and liquidity risks related
to borrowings are disclosed in note 40 and 41.
A. Terms of repayment/ conversion/ redemption
(i) Loans against vehicles and equipments are for a period of three to seven years and repayable by way of equated
monthly instalments.
B. Details of security
(i) Loans against vehicles and equipments are secured by way of hypothecation of the respective underlying
asset financed.
(ii) Current borrowings from banks aggregating to J53,271.45 lakhs (31 March 2025: H30,493.53 lakhs) are secured
by hypothecation of currents assets of the Company both present and future on pari passu basis.
19. Financial Liabilities (Contd.)
C. Compliance with Loan Covenants
The Company has various financial and non-financial covenants (including maintenance of debt-related ratios and
reporting requirements) in respect of its borrowings. As at 31 March 2026 the Company is in compliance with all such
covenants as stipulated in the respective loan agreements/sanction letters.
20. Trade payables
Accounting Policy
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.
20. Trade payables (Contd.)
(b) Due to micro enterprises and medium enterprises
The disclosure pursuant to the Micro, Small and Medium enterprise development Act, 2006 (MSMED Act) for dues to
Micro enterprises and Small enterprises as at 31 March 2026 and 31 March 2025 are as under
21. Derivatives
Accounting Policy
Derivative financial instruments and hedge accounting
The Company holds derivative financial instruments, such as foreign currency forward contracts, interest rate swaps,
cross currency swap and option contracts to hedge its foreign currency and interest rate risk exposures. Embedded
derivatives are separated from the host contract and accounted for separately, if the host contract is not a financial asset
and certain criteria are met.
Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value,
and changes therein are recognised in Standalone Statement of Profit and Loss. Derivatives are carried as financial assets
when the fair value is positive and as financial liabilities when the fair value is negative.
(a) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Company.
(b) Information about the Company's exposure to currency and liquidity risks related to the above financial liabilities are
disclosed in note 41.
(c) Other Current financial liabilities includes Liability towards cancellation of forward contracts, Employee related
liabilities, deferred income and Security deposits.
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