k. Provisions, Contingent Liabilities And Contingent Assets
Provisions are recognized for present obligation (legal or constructive) of uncertain timing or amount
arising as a result of past event where a reliable estimate can be made and it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation.
When it is not probable that an outflow of resources embodying economic benefits will be required or
the amount cannot be estimated reliably the obligation is disclosed as a contingent liability unless the
possibility of outflow of resources embodying economic benefit is remote.
Possible obligations, whose existence will only be confirmed by the occurrence or nonoccurrence of one
or more uncertain future events, not wholly with in the control of entity, are also disclosed as contingent
liabilities.
Contingent assets are not recognized in financial statement. However, when the realization of income is
virtually certain, then the related asset is no longer a contingent asset, but it is recognized as an asset.
Commitments include the amount of purchase order (net of advances) issued to parties for completion of
assets.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet
date.
l. Segment reporting
The Company’s operating segments are established on the basis of those components of the group that are
evaluated regularly by the Board of Directors (the ‘Chief Operating Decision Maker’ as defined in Ind AS
108 - ‘Operating Segments’), in deciding how to allocate resources and in assessing performance. Segment
performance is evaluated based on profit or loss and is measured consistently with the profit or loss in the
financial statements.
The Operating Segments have been identified on the basis of the nature of products/services.
a) Segment revenue includes sales and other income directly identifiable with/allocable to the segment
including intersegment transfers.
b) Expenses that are directly identifiable with/allocable to segments are considered for determining the
segment results. Expenses which relate to the Company as a whole and not allocable to segments are
included under unallocable expenditure.
c) Income which relates to the Company as a whole and not allocable to segments is included in
unallocable income.
Segment assets & liabilities include those directly identifiable with the respective segments. Assets &
liabilities that relate to the Company as a whole and not allocable to any segment on direct and/or are
reasonable basis have been disclosed as unallocable.
m. Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to the
equity shareholders by the weighted average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period and for all periods presented is
adjusted for events, such as bonus issue, bonus element in a rights issue and shares split that have changed
the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating Diluted Earnings per share, the net profit or loss for the period attributable
to the equity shareholders and the weighted average number of shares outstanding during the period is
adjusted for the effects of all dilutive potential equity shares
n. Cash flow statement
Cash flows are reported using the indirect method, whereby profit for the year is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the Company are segregated. The Company considers
all highly liquid investments that are readily convertible to known amounts of cash and cash equivalents.
o. Borrowing
Borrowings are initially recognized at net of transaction costs incurred and measured at amortized cost.
Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized
in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.
Preference shares, which are mandatorily redeemable on a specific date are classified as liabilities. The
dividend on these preference shares is recognized in Statement of Profit and Loss as finance costs.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or sale,
are added to the cost of the assets, until such time as the assets are substantially ready for their intended
use or sale. Borrowing costs consist of interest and other costs that an entity incurs in connection with
the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an
adjustment to the borrowing costs.
All other borrowing costs are recognized in Statement of profit and loss in the period in which they are
incurred.
p. Fair Value Measurement
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.
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. The fair value measurement is based on
the presumption that the transaction to sell the asset or transfer the liability takes place either:
a) In the principal market for the asset or liability, or
b) In the absence of a principal market, in most advantageous market for the asset or liability, and
The Company has access to the principal or the most advantageous market.
The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic best
interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another market
participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing
the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by reassessing categorization
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of
each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets & liabilities on
the basis of the nature, characteristics and the risks of the asset or liability and the level of the fair value
hierarchy as explained above. This note summarizes accounting policy for fair value.
In these financial statements is determined on such a basis as explained above, except for share-based
payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope
of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as net
realizable value in Ind AS 2 or value in use in Ind AS 36.
q. Cash and cash equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk of change in value and having original maturities of
three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist
of balances with banks which are unrestricted for withdrawal and usage.
r. Non-current assets held for sale
Non-current assets and disposal groups are classified as held for sale if their carrying amount will be
recovered principally through a sale transaction rather than through continuing use. This condition
is regarded as met only when the asset (or disposal group) is available for immediate sale in its present
condition subject only to terms that are usual and customary for sales of such asset (or disposal group) and
its sale is highly probable. Management must be committed to the sale, which should be expected to qualify
for recognition as a completed sale within one year from the date of classification.
The Company treats sale/distribution of the asset or disposal group to be highly probable when
a) The appropriate level of management is committed to a plan to sell the asset (or disposal group),
b) An active program to locate a buyer and complete the plan has been initiated (if applicable),
c) The assets or disposal group is being actively marketed for sale at a price that is reasonable in relation
to its current fair value,
d) The sale is expected to qualify for recognition as a completed sale within one year from the date of
classification, and
e) Action required completing the plan indicated that is unlikely that significant change to plan will be
made or that the plan will be withdrawn.
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their
carrying amount and fair value less costs to sell
s. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.
o Financial assets
Initial recognition and measurement
All financial assets are initially recognized at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities, which are not at
fair value through profit or loss, are adjusted to the fair value on initial recognition. Trade receivables
that do not contain a significant financing component (determined in accordance with IND AS 115 -
Revenue Recognition) are initially measured at their transaction price and not at fair value.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in following categories:
a) Financial assets carried at amortized cost (AC)
A financial asset is measured at amortized cost if it is held within a business model whose
objective is to hold the asset in order to collect 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 on the principal amount outstanding.
b) Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective
is achieved by both collecting contractual cash flows and selling financial assets and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding. Interest income for
these financial assets is included in other income using the effective interest rate method.
c) Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories is measured at FVTPL.
o Equity investments
All equity investments in scope of Ind AS 109 are measured at fair value. Where the company decided
to make an irrevocable election to present the fair value gain and loss (excluding dividend) on non¬
current equity investments in other comprehensive income, there is no subsequent reclassification
of fair value gain and loss to profit and loss even on sale of investments. However, the company
may transfer the cumulative gain or loss within equity. The company makes such election on an
instrument-by-instrument basis.
The company elected to measure the investment in subsidiary, associate andjoint venture at cost.
o Impairment of financial assets
The company assesses on a forward-looking basis the expected credit losses (ECL) associated with
the assets carried at amortized cost and FVOCI debt instruments. The impairment methodology
applied depends on whether there has been a significant increase in credit risk. If credit risk
has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the
instrument improves such that there is no longer a significant increase in credit risk since initial
recognition, then the entity reverts to recognizing impairment loss allowance based on 12-month
ECL.
For trade receivables, the company applies the simplified approach permitted by Ind AS 109 “Financial
Instruments” which requires expected life time losses to be recognized from initial recognition of
receivables. The Company uses historical default rates to determine impairment loss on the portfolio
of trade receivables. At every reporting date these historical default rates are reviewed and changes
in the forward looking estimates are analyzed.
o Financial liabilities
Initial recognition and measurement
All financial liabilities are recognized at fair value and in case of loans, net of directly attributable
cost.
Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade
and other payables maturing within one year from the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.
o Derecognition of financial instruments:
The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition
under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the
Company’s Balance Sheet when the obligation specified in the contract is discharged or cancelled or
expires.
o Reclassification of financial assets
The company determines classification of financial assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for financial assets which are equity instruments
and financial liabilities. For financial assets which are debt instruments, a reclassification is made
only if there is a change in the business model for managing those assets. Changes to the business
model are expected to be infrequent. The company’s senior management determines change in the
business model as a result of external or internal changes which are significant to the company’s
operations. Such changes are evident to external parties. A change in the business model occurs
when the company either begins or ceases to perform an activity that is significant to its operations.
If the company reclassifies financial assets, it applies the reclassification prospectively from the
reclassification date which is the first day of the immediately next reporting period following the
change in business model. The company does not restate any previously recognized gains, losses
(including impairment gains or losses) or interest.
o Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an
intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
t. Use of estimates
The preparation of the financial statement in conformity with Ind AS requires the Management to
make estimates and assumptions considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the year. The Management believes
that the estimates used in preparation of the financial statements are prudent and reasonable. Future
results could differ due to these estimates and the differences between the actual results and the estimates
are recognized in the periods in which the results are known / materialize.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimates are revised and current and / or future periods are
affected.
u. Key Source of estimation uncertainty
Key source of estimation uncertainty at the date of the financial statements, which may cause a material
adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of
impairment of investments, provisions and contingent liabilities.
The areas involving critical estimates are:
Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present
value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting date.
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 valuation techniques
including the DCF model. The inputs to these models are taken from observable markets where possible,
but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments
include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions
about these factors could affect the reported fair value of financial instruments
Useful lives and residual values of property, plant and equipment
Useful life and residual value of property, plant and equipment are based on management’s estimate of the
expected life and residual value of those assets. These estimates are reviewed at the end of each reporting
period. Any reassessment of these may result in change in depreciation expense for future years.
Impairment of Property Plant and Equipment
The recoverable amount of the assets has been determined on the basis of their value in use. For estimating
the value in use, it is necessary to project the future cash flow of assets over its estimated useful life. If the
recoverable amount is less than its carrying amount, the impairment loss is accounted for in statement of
profit or loss.
Valuation of Deferred tax assets
Deferred tax assets are recognized only to the extent it is considered probable that those assets will be
recoverable. This involves an assessment of when those deferred tax assets are likely to reverse and
a judgment as to whether or not there will be sufficient taxable profits available to offset the tax assets
when they do reverse. The Company reviews the carrying amount of deferred tax assets at the end of each
reporting period. Any change in the estimates of future taxable income may impact the recoverability of
deferred tax assets.
Provisions and contingencies
Provisions and liabilities are recognized in the period when it becomes probable that there will be a
future outflow of resources embodying economic benefits resulting from past operations or events and
the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the
liability requires the application of judgement to existing facts and circumstances, which can be subject
to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take
account of changing facts and circumstance.
v. Recent pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended
March 31, 2026, MCA has notified the below amendments:
The following major amendments have been made;
• Statements by Notification Amendment of Ind AS 1 - Presentation of Financial Dated 13th August
2025
The amendment relates to classification of liabilities as current or non-current and non-current
liabilities with covenants. In the context of classifying a liability as current, it removes the
requirement of existence of a right to defer settlement for at least 12 months after the reporting date,
and instead requires that the said right should exist on the reporting date and have substance. The
amendment also introduces guidance on classification of liabilities with covenants. The Company
has no material impact of these amendments in its classification criteria of current and non-current
liabilities.
• Amendment of Ind AS 21 - The Effects of Changes in Foreign Exchange Rates by Notification Dated
7th May 2025
In May 2025, the Ministry of Corporate Affairs (MCA) notified amendments to Ind AS 21, The Effects
of Changes in Foreign Exchange Rates, applicable with effect from April 1, 2025. The amendment
provides additional guidance in situations where a currency is not exchangeable and clarifies the
determination of exchange rates to be used in such circumstances, along with related disclosure
requirements. The Company has evaluated the amendment and concluded that it does not have any
impact on its financial statements.
• Amendment of Ind AS 7 - Statement of Cash Flows by Notification Dated 13th August 2025
In August 2025, the Ministry of Corporate Affairs (MCA) notified amendments to Ind AS 7, Statement
of Cash Flows, applicable with effect from April 1, 2025. The amendments require entities to
provide enhanced disclosures relating to supplier finance arrangements, including the nature of
such arrangements, the carrying amount of related financial liabilities, and the range of payment
due dates. The objective of the amendment is to enable users of financial statements to assess the
impact of supplier finance arrangements on an entity’s liabilities, cash flows, and liquidity risk.
The Company has evaluated the amendment and concluded that it does not have any impact on its
financial statements.
• Amendment of Ind AS 107 - Financial Instruments: Disclosures by Notification Dated 13th August
2025
In August 2025, the MCA notified amendments to Ind AS 107, Financial Instruments: Disclosures,
applicable with effect from April 1, 2025. The amendments require entities to include supplier
finance arrangements as a factor in evaluating concentration of liquidity risk and to provide related
qualitative and quantitative disclosures. These disclosures are intended to enhance transparency
regarding the effect of such arrangements on an entity’s risk exposure and financial position. The
Company has reviewed the amendment and determined that it does not have any impact on its
financial statements.
• Amendment of Ind AS 12 - Income Taxes by Notification Dated 13th August 2025
The MCA also notified amendments to Ind AS 12, Income Taxes, relating to the International Tax
Reform - Pillar Two Model Rules. The amendments introduce a temporary mandatory exception from
accounting for deferred taxes arising from the implementation of the Pillar Two rules and require
entities to disclose the application of such exception. The amendment is effective immediately and
applies retrospectively. The Company has reviewed the amendment and determined that it does not
have any impact on its financial statements.
(d) The rights, preferences and restrictions attached to each class of shares including restrictions on the distribution
of dividends and the repayment of capital are as under:
The Company has only one class of equity shares having a par value of Rs.5 per share. Each share holder is entitled to
one vote per share. The dividend proposed by the board of directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. In the event of liquidation of the company, the holders of the equity shares will be
entitled to receive the remaining assets of the company, after distribution of all the preferential amounts. The distribution
will be in proportion to the number of equity shares held by each of the equity share holders.
(e) For the purpose of five years immediately preceding the reporting date, the Company
- has not allotted any shares as fully paid up pursuant to contracts without payment being received in cash;
- has not allotted any shares as fully paid up by way of bonus shares;
- has not brought back any shares.
(f) There are no securities which are convertible into equity shares.
(g) No dividend has been proposed by the board of directors for the financial year ended 31st March 2026.
(h) Since deceased on 13th April 2026, the transmission of share awaited for completion.
Note 18.1 The Company has incurred continuous losses over the past financial years, resulting in the absence of sufficient
taxable profits against which the deferred tax assets can be realized. In accordance with the principles laid down in Ind
AS 12 - Income Taxes, and based on a prudent assessment of future taxable profit projections, the management has
decided not to recognised deferred tax assets in the books of account.
The Company will continue to reassess the recognition of deferred tax assets at each reporting date and will recognize
the same as and when reasonable certainty regarding availability of future taxable profits arises.
33. A Defined Contribution plans
The Company has recognised Rs. 13.97 lacs (PY- Rs 13.95 lacs) in statement of profit and loss as Company’s
contribution to provident fund, Rs. 10.90 lacs (PY- Rs 10.73 lacs) as Company’s contribution to Pension Fund and
Rs. 3.07 lacs (PY- Rs 3.62 lacs) as Company’s contribution to Employees State Insurance scheme.
Sensitivities due to mortality and withdrawals are not material & hence impact of change not calculated.
Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before
retirement & life expectancy are not applicable being a lump sum benefit on retirement.
viii. The estimates of future salary increase considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors. The above information is certified by the actuary and relied upon by the
auditors.
34. Segment Reporting
The Company is currently organized into three operating segments: Power generation and Meter & others and
Investment. The Company’s operating segments offer different products and require different technology and
marketing strategies.
The business groups comprise the following:
Meter and Others: Sale of energy meters and others, Rental Income, Installations services , estate management
services and EPC work.
Power Generation: Sale of electricity generation through Wind.
Investment: Income generated through investment in Mutual funds,PMS,AIF.
Identification of Segments
The Board of Directors of the Company has been identified as Chief Operation Decision Maker who monitors
the operating results of its business segments separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance is evaluated based on profit or loss and is
measured consistently with profit or loss in the financial statements. Accounting policy in respect of segments is
in conformity with accounting policy of the company as a whole.
Intersegment Transfer
Segment revenue resulting from transactions with other business segment is accounted for on basis of transfer
price agreed between the segments. Transfer prices between operating segments are on arm’s length basis in a
manner similar to transactions with third parties.
Segment Revenue & Results
The Revenue and Expenditures in relation to the respective segments have been identified and allocated to the
extent possible. Other revenue and expenditures non allocable to specific segments are disclosed separately as
unallocated and adjusted directly against total income of the Company.
Segment Assets & Liabilities
Segment Assets includes all operating assets used by the operating segment and mainly consisting property,
plant & equipment, trade receivables, cash and cash equivalents and inventory etc. Segment Liabilities primarily
include trade paybles and other libilities. Common assets & liabilities which can not be allocated to specific
segments are shown as a part of unallocable assets/liabilities.
36. Capital Management
The Company manages its capital to ensure that the entities in the Company will be able to continue as going
concern while maximizing the return to shareholders and also complying with the ratios stipulated in the loan
agreements through the optimization of the debt and equity balance.
The capital structure of the Company consists of net debt (borrowings as detailed in note 15A & 15B offset by cash
and bank balances as detailed in note 11 and 12) and total equity of the Company.
The Company monitors capital on the basis of following gearing ratio, which is net debt divided by total equity.
Loan Covenants
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements. Breaches in meeting the financial covenants would permit the bank to call loans and
borrowings or charge some penal interest. There have been no breaches in the financial covenants of any interest¬
bearing loans and borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the current years and
previous years.
36.1 Net Gearing ratio
The gearing ratio at the end of the reporting period was as follows:
Note:
Debt is defined as long and short-term borrowings (excluding derivative, financial guarantee contracts), as described in
notes 15A & 15B.
36.2 Dividends
The company has not declared dividend on equity share for the year ended March 31, 2026. (PY Nil)
37. Fair Value Measurement(i) Fair Value Hierarchy
This section explains the judgments 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 financial statements. To provide an indication about the reliability of inputs used in determining
fair values, the group has classified its financial instruments into three levels prescribed under the accounting
standards.
(ii) Valuation techniques used to determine Fair value
The Company maintains policies and procedures to value financial assets or financial liabilities using the best
and most relevant data available. The fair values of the financial assets and liabilities are included at the amount
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.
Specific valuation technique used to value financial instrument includes:
> the use of quoted market prices or dealer quotes for similar financial instruments.
> the fair value of financial assets and liabilities at amortised cost is determined using discounted cash flow analysis
The following method and assumptions are used to estimate fair values:
The Carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, short
term deposits etc. are considered to be their fair value , due to their short term nature
Long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on
parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. For
borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that
reflects the issuer’s borrowings rate. Risk of non-performance for the company is considered to be insignificant
in valuation.
Financial assets and liabilities measured at fair value and the carrying amount is the the fair value.
38. Financial risk management
The Company’s activities expose it to a variety of financial risks which includes market risk (including currency
risk, interest rate risk and other price risk), credit risk and liquidity risk.
The Company’s focus is to ensure liquidity which is sufficient to meet the Company’s operational requirements.
The Company monitors and manages key financial risks so as to minimise potential adverse effects on its financial
performance. The Company has a risk management policy which covers the risks associated with the financial
assets and liabilities. The details for managing each of these risks are summarised ahead.
38.1 Market risk
Market risk is the risk that the expected cash flows or fair value of a financial instrument could change owing to
changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and
other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market
risk include loans and borrowings, deposits, investments, and derivative financial instruments.
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 does not operates internationally but has foreign currency
trade payables and receivables and is therefore, exposed to foreign exchange risk. Exposure is very limited as
compared to the size of the company, thus there is very nominal risk due to foreign currency risk.
The carrying amounts of the company’s foreign currency denominated monetary assets and monetary liabilities
at the end of the reporting period are as follows.
Foreign currency sensitivity analysis
The following table details the company’s sensitivity to a 10% increase and decrease in the INR against the relevant
outstanding foreign currency denominated monetary items. 10% sensitivity indicates management’s assessment
of the reasonable possible change in foreign exchange rates. The sensitivity analysis includes only outstanding
foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in
foreign currency rates. A positive number below indicates an increase in profit or equity where Rupee appreciates
10% against the relevant currency. A negative number below indicates a decrease in profit or equity where the
Rupee depreciates 10% against the relevant currency.
38.3 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. In order to optimize the Company’s position with regard to interest income
and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest
rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its
total portfolio.
(iii) SensitivityInterest rate sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives
and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is
prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding
for the whole year. A 50 basis point increase or decrease represents management’s assessment of the reasonably
possible change in interest rates.
38.4 Other price risks
The company’s exposure to price risk arises from the investment held by the company . To manage its price risk
arising from investments in marketable securities, the company diversifies its portfolio and is done in accordance
with the company policy. The company’s major investments are actively traded in markets and are held for short
period of time. Therefore no senility is provided for the same.
38.5 Credit risk management
Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting
in financial loss to the company. To manage this, the Company periodically assesses the financial reliability of
customers, taking into account the financial conditions, current economic trends, and analysis of historical bad
debts and ageing of accounts receivable.
The Company considers the probability of default upon initial recognition of assets and whether there has been a
significant increase in credit risk on an on going basis through each reporting period. To assess whether there is
significant increase in credit risk, it considers reasonable and supportive forward looking information such as:
(i) Actual or expected significant adverse changes in business.
(ii) Actual or expected significant changes in the operating results of the counterparty.
(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s
ability to meet its obligation
(iv) Significant increase in credit risk an other financial instruments of the same counterparty
(v) significant changes in the value of collateral supporting the obligation or in the quality of third party
guarantees or credit enhancements
The company major exposure is from trade receivables, which are unsecured and derived from external customers.
Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks and financial
institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments
primarily include investment in liquid mutual fund units, quoted securities and certificates of deposit which are
funds deposited at a bank for a specified time period.
Expected credit loss for trade receivable on simplified approach:
The Company uses a provision matrix to determine impairment loss on portfolio of its trade receivable. The
provision matrix is based on its historically observed default data over the expected life of the trade receivable
and is adjusted for forward- looking estimates. At every reporting date, the historical observed default rates are
updated and changes in forward-looking estimates are analysed. In case of probability of non collection, default
rate is 100%
Liquidity risk is defined as the risk that company will not be able to settle or meet its obligation on time or at a
reasonable price. The Company’s objective is to at all times maintain optimum levels of liquidity to meet its cash
and collateral requirements. The Company’s management is responsible for liquidity, funding as well as settlement
management. In addition, processes and policies related to such risk are overseen by senior management.
Management monitors the company’s net liquidity position through rolling, forecast on the basis of expected cash
flows.
The table below provides details regarding the remaining contractual maturities of financial liabilities at the
reporting date based on contractual undiscounted payments:
Note 39: Additional Regulatory Information
The following is the additional regulatory information required by the clause 5 of General Instruction for Preparation of
Balance Sheet of Division II of Schedule III of the Companies Act, 2013
i) Title deeds of Immovable Property not held in name of the Company
The Company has no immovable property which is held in the name of the Company.
ii) Revaluation of Property, Plant & Equipment
The Company has not revalued property, plant and equipment hence clause (ii) is not applicable.
iii) Loans or Advances
The company has not given any Loans or advances to related parties and KMP( refer note no 5B)
iv) Capital Work-in-Progress (CWIP) ageing schedule/ completion schedule
The company has no capital work in progress (Refer note 3)
v) Intangible assets under development ageing schedule/ completion schedule
The Company does not have any Intangible assets under development, hence clause (v) is not applicable.
vi) Details of Benami Property held
No proceedings have been initiated or are pending against the company under the Benami Transactions
(Prohibition) Act,1988.
vii) Security of current assets against borrowings
The company has pledged current assets against borrowings Please refer note 15.2.
viii) Wilful Defaulter
The company has not been declared as a wilful defaulter by any bank or financial institution or any other lender.
ix) Relationship with Struck off Companies
Details of relationship with struck off Companies are as under;
x) Registration of charges or satisfaction with Registrar of Companies (ROC)
There are no charges or satisfaction that need to be registered with ROC beyond the statutory period.
xi) Compliance with number of layers of companies
The provisions of clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers)
Rules, 2017 are not applicable to the company as per Section 2(45) of the Companies Act,2013.
xii) Compliance with approved Scheme(s) of Arrangements
No scheme of Arrangements has been approved by competent authority in terms of sections 230 to 237 of the
Companies Act,2013 in respect of the Company.
xiii) Utilisation of Borrowed funds and share premium
The company has not provided nor taken any loan or advance to/from any other person or entity with the
understanding that benefit of the transaction will go to a third party, the ultimate beneficiary.
Note 40: Other Additional Information
The following is the other additional information required by Para 5 of the General Instructions for Preparation of
Statement of Profit and Loss of Division II of Schedule III of the Companies Act, 2013
i) Disclosure in relation to undisclosed income
The Company records all the transaction in the books of accounts properly and has no undisclosed income
during the year or in previous years in the tax assessments under the Income Tax Act, 1961.
ii) Corporate Social Responsibility
The Provisions of section 135 of Companies Act, 2013 is not applicable to the Company.
iii) Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
42. Previous year figures have been regrouped/ rearranged, whenever necessary, in order to make them comparable with
those of the current year.
43. There is no other additional/material information required to be disclosed as per companies (Indian Accounting
Standards) Rules 2015, schedule III to the Companies Act,2013,regulatory provisions of companies Act,2013 and any
other applicable regulatory provisions
44. In view of losses, no dividend has been proposed by the board of directors of the compnay on its equity shares.
45. Approval of Standalone financial statements
The standalone financial statements for the year ended 31st March 2026 were approved by the Board of Directors on
29th May 2026.
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