1.16 Provisions
Provisions are recognised when the Company
has a present legal or constructive obligation
as a result of past events, it is probable that an
outflow of resources will be required to settle
the obligation and the amount can be reliably
estimated. Provisions are not recognised for future
operating losses.
Where there are a number of similar obligations,
the likelihood that an outflow will be required in
settlement is determined by considering the class
of obligations as a whole. A provision is recognised
even if the likelihood of an outflow with respect
to any one item included in the same class of
obligations may be small.
Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used to
determine the present value is a pre-tax rate that
reflects current market assessments of the time
value of money and the risks specific to the liability.
The increase in the provision due to the passage of
time is recognised as interest expense.
1.17 Contingent liabilities and contingent assets
Disclosure of contingent liabilities is made when
there is a possible obligation or a present obligation
that may, but probably will not, require an outflow
of resources. Where there is possible obligation or a
present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or
disclosure is made.
Contingent assets are not recognised in the
financial statements. However, contingent assets
are assessed continually and if it is virtually certain
that an inflow of economic benefits will arise, the
asset and related income are recognised in the
period in which the change occurs.
1.18 Fair value measurement
The Company measures financial instruments at
fair value at each reporting date.
Financial instruments
Recognition
Financial assets and financial liabilities are
recognised when the Company becomes
a party to the contractual provisions of the
financial instrument.
Initial measurement, classification and
subsequent measurement of financial assets
Except for those trade receivables that do not
contain a significant financing component and are
measured at the transaction price in accordance
with Ind AS 115, all financial assets are initially
measured at fair value plus, in case of financial
assets other than classified as fair value through
profit and loss account, transaction costs that are
attributable to the acquisition of financial asset.
Financial assets are classified into one of the
following categories:
• amortised cost
• fair value through profit or loss (FVTPL), or
• fair value through other comprehensive
income (FVOCI).
The classification is determined by both:
• the entity's business model for managing the
financial asset, and
• the contractual cash flow characteristics of
the financial asset
All revenue and expenses relating to financial
assets that are recognised in profit or loss are
presented within finance costs or other income.
Financial assets are not reclassified subsequent
to their recognition, except during the period the
Company changes its business model for managing
financial assets.
For purposes of subsequent measurement, financial
assets are classified in three categories:
1) Debt instruments
Measured at amortised cost:
Financial assets that give rise to cash flows on
specified dates that are solely the payments of
principal and interest; and the financial asset is
held within a business model whose objective
is solely to collect those cash flows, then the
financial asset is classified and measured
at amortised cost. These are measured by
applying the effective interest rate method.
The effective interest rate method allocates
interest income over the relevant period by
applying the effective interest rate (‘EIR') (that
is the interest rate that exactly discounts
expected future cash flows to the gross
carrying amount of the asset).
Measured at fair value through other
comprehensive income (FVOCI):
Financial assets that are held within a
business model whose objective is achieved
by both, selling financial assets and collecting
contractual cash flows that are solely
payments of principal and interest,
are subsequently measured at fair value
through other comprehensive income. Fair
value movements are recognised in the
other comprehensive income (OCI). Interest
income is measured using the EIR method and
impairment losses, if any are recognised in
the standalone statement of profit and loss.
On derecognition, cumulative gain or loss
previously recognised in OCI is reclassified from
the equity to ‘other income' in the standalone
statement of profit and loss.
Measured at fair value through profit or loss
(FVTPL):
A financial asset not classified as either
amortised cost or FVOCI, is classified as FVTPL.
Such financial assets are measured at fair
value with all changes in fair value, including
interest income and d ivid end income, if any,
recognised in ‘other income' in the standalone
statement of profit and loss.
2) Equity instruments
All investments in equity instruments classified
under financial assets are initially measured
at fair value, the Company may, on initial
recognition, irrevocably elect to measure the
same either at FVOCI or FVTPL. The Company
makes such election on an instrument-by¬
instrument basis. Fair value changes on an
equity instrument is recognised in ‘other
income' in the standalone statement of profit
and loss unless the Company has elected to
measure such instrument at FVOCI. Fair value
changes excluding dividends, on an equity
instrument measured at FVOCI are recognised
in OCI. Amounts recognised in OCI are not
subsequently reclassified to the standalone
statement of profit and loss. Dividend income
on the investments in equity instruments are
recognised as ‘other income' in the standalone
statement of profit and loss.
De-recognition
The Company de-recognises a financial asset
only when the contractual rights to the cash
flows from the asset expires or it transfers the
rights to receive the contractual cash flows in
a transaction in which substantially all of the
risks and rewards of ownership of the financial
asset are transferred or in which the Company
neither transfers nor retains substantially all of
the risks and rewards of ownership and does
not retain control of the financial asset.
If the Company enters into transactions
whereby it transfers assets recognised on
its balance sheet, but retains either all or
substantially all of the risks and rewards of the
transferred assets, the transferred assets are
not de-recognised.
Impairment of financial assets
The Company applies expected credit loss
(ECL) model for measurement and recognition
of loss allowance on the following:
i. Trade receivables
ii. Financial assets measured at amortized
cost (other than trade receivables)
In case of trade receivables, the Company
follows a simplified approach wherein an
amount equal to lifetime ECL is measured and
recognised as loss allowance. The Company
computes ECL based on a provision matrix.
The provision matrix is prepared based on
historically observed default rates over the
expected life of trade receivables and is
adjusted for forward-looking estimates. The
default in collection as a percentage to total
receivable is low and overall expected credit
loss is not material to these standalone
financial statements.
Financial assets classified as amortised
cost (listed as ii. above), subsequent to initial
recognition, are assessed for evidence of
impairment at end of each reporting period
basis monitoring of whether there has been
a significant increase in credit risk. To assess
whether there is a significant increase in
credit risk, the Company compares the risk
of a default occurring on the asset as at the
reporting date with the risk of default as at the
date of initial recognition. It considers available
reasonable and supportive forwarding-looking
information. If the credit risk of such assets has
not increased significantly, an amount equal
to 12-month ECL is measured and recognised
as loss allowance. However, if credit risk has
increased significantly, an amount equal to
lifetime ECL is measured and recognised as
loss allowance. Subsequently, if the credit
quality of the financial asset improves such
that there is no longer a significant increase in
credit risk since initial
recognition, the Company reverts to recognising
impairment loss allowance based on 12-month
ECL. ECL allowance recognised (or reversed)
during the period is recognised as expense
(or income) in the standalone statement of
profit and loss.
(ii) Financial liabilities
(a) Classification
Financial liabilities are classified, at initial
recognition, as financial liabilities at fair
value profit and loss or at amortised cost.
Financial liabilities at fair value through
profit and loss include financial liabilities
held for trading and financial liabilities
designated upon initial recognition as
at fair value through profit and loss. This
category also includes derivative financial
instruments entered into by the Company
that are not designated as hedging
instruments in hedge relationships as
defined by Ind AS 109.
The Company's financial liabilities include
trade and other financial liabilities and
derivative financial instruments.
(b) Initial recognition and measurement
All financial liabilities are recognised
initially at fair value and, in the case of
loans and borrowings, net of directly
attributable transaction costs.
(c) Subsequent measurement
Financial liabilities at fair value through
profit and loss are measured at fair value
and net gains and losses, including any
interest expense, are recognised in profit
or loss. Other financial liabilities are
subsequently measured at amortised
cost using the effective interest method.
Interest expense and foreign exchange
gains and losses are recognised in profit
or loss. Any gain or loss on derecognition
is also recognised in profit or loss.
Amortised cost is calculated by taking
into account any discount or premium
on acquisition and fees or costs that
are an integral part of the EIR. The EIR
amortisation is included as finance
costs in the standalone statement of
profit and loss.
(e) De-recognition
The Company derecognises a financial
liability when its contractual obligations
are discharged or cancelled or expired.
The Company also derecognises a
financial liability when its terms are
modified and the cash flows under the
modified terms are substantially different.
In this case, a new financial liability based
on the modified terms is recognised at
fair value. The difference between the
carrying amount of the financial liability
extinguished and the new financial
liability with modified terms is recognised
in standalone statement of profit and loss.
(iii) Derivative financial instruments
The Company uses derivative financial
instruments, such as foreign exchange forward
to hedge its foreign currency risks. Such
derivative financial instruments are initially
recognised at fair value on the date on which
a derivative contract is entered into and
are subsequently re-measured at fair value.
The changes in fair value of such derivative
contracts, as well as the foreign exchange
gain and losses relating to monetary items
are recognised in the 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.
(iv) Offsetting financial assets and liabilities
Financial assets and liabilities are offset and
the net amount is reported in the balance
sheet where there is a legally enforceable
right to offset the recognised amounts and
there is an intention to settle on a net basis
or realise the asset and settle the liability
simultaneously. The legally enforceable right
must not be contingent on future events and
must be enforceable in the normal course
of business and in the event of default,
insolvency or bankruptcy of the Company or
the counterparty.
1.19 Earnings per share
Basic earnings per share is calculated by dividing
the net profit for the year attributable to equity
shareholders by the weighted average number
of equity shares outstanding during the year.
The weighted average numbers of equity shares
outstanding during the year are adjusted for events
such as bonus issue and share split. For the purpose
of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity
shareholders and the weighted average number
of shares outstanding during the year are adjusted
for the effects of all dilutive potential equity shares.
The dilutive potential equity shares are deemed to
be converted as of the beginning of the year, unless
they have been issued at a later date.
1.20 Segment reporting
Operating segments are defined as components
of an entity where discrete financial information
is evaluated regularly by the chief operating
decision market (“CODM”) in deciding allocation
of resources and in assessing performance. The
Board of Directors' is its CODM. The Company's
CODM reviews financial information presented on
an aggregated basis for the purposes of making
operating decisions, allocating resources, and
evaluating financial performance. As such, the
Company has determined that it operates in one
operating and reportable segment.
1.21 Share issue expenses
All the initial public offer ('IPO') related expenditures
will be adjusted against the Securities Premium, in
accordance with Section 52 of the Companies Act,
2013 on successful completion of the issue, to the
extent any balance is available for utilisation under
the Securities Premium. Any amounts, in excess
of the balance in the Securities Premium would
be expensed off in the standalone statement of
profit and loss.
2 Recent accounting 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 31 March 2026, MCA has notified following
amendment to Ind AS, applicable to the Company
with effect from 1 April 2025.
- Ind AS - 21 The Effects of Changes in Foreign
Exchange Rates titled Lack of Exchangeability
- Ind AS 12 - Income Taxes relating to International
Tax Reform - Pillar Two Model Rules
- Amendments to Ind AS 7 - Cash flow statement
and Ind AS 107 - Financial Instrument Disclosures
relating to supplier finance arrangements
- Ind AS 1- Presentation of Financial statements
- Classification of liabilities as current or
non-current and non- current liabilities
with covenants.
The Company has reviewed the new
pronouncements and based on its evaluation has
determined that it does not have any significant
impact in its standalone financial statements.
New standards and amendments to existing
Standards which are issued but are not yet effective
and have not been early adopted by the Company
The MCA has issued certain amendments to
Indian Accounting Standards which are not yet
effective as at 31 March 2026. The Company has
not early adopted any standard, interpretation
or amendments that has been issued but is
not yet effective.
Notes:
1. Property, plant and equipment have been pledged as security for borrowings. Refer note 21 and 23.
2. The title deeds of the immovable property (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee) are held in the name of the Company.
3. For contractual obligations pertaining to the acquisition of property, plant and equipment as at the years ended
31 March 2026 and 31 March 2025, refer note 41.1.
4. The Company has not revalued its property, plant and equipment during the years ended 31 March 2026
and 31 March 2025.
5 Right of use assets:
5.1 Company as a lessee
The Company has leases for the office building and warehouse facilities . With the exception of short term leases
and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset
and a lease liability.
Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease
the asset to another party, the right-of-use asset can only be used by the Company. The Company is prohibited
from selling or pledging the underlying leased assets as security. Further, the Company is required to pay
maintenance fees in accordance with the lease contracts.
(ii) During the year ended 31 March 2026, the Company has incorporated a wholly owned subsidiary, All Time
Bamboo Private Limited and has invested in 100,000 equity shares of H 10 each amounting to H 10 lakhs and 50
lakhs zero coupon Compulsorily Convertible Debentures (CCDs) of H 10 each amounting to H 500 lakh, which are
mandatorily convertible into equity shares after a period of 10 years.
(iii) In the previous financial year, the Company had incorporated All Time Plastics Pte. Ltd with a 100% equity
contribution pursuant to a joint venture arrangement with Dragon Bridge Pte Limited. During the current financial
year, Dragon Bridge Pte Limited infused its 49% equity stake in the entity. As at the reporting date, the Company
holds 51% equity interest, and the investment continues to be classified as an investment in subsidiary in the
standalone financial statements.
Note 1
During the year, the Company has invested in inter corporate deposits amounting to H1,500 lakhs. These deposits
carry fixed interest rates ranging from 7.10% p.a. to 7.30% p.a. and have maturity periods ranging from 91 days to 181
days. The deposits are repayable on respective maturity dates along with accrued interest, with maturities falling
between 18 May 2026 and 16 July 2026.
Note 2
i. In line with Circular No 04/2015 issued by Ministry of Corporate Affairs dated 10 March 2015, loans given to
employees as per the Company's policy are not considered for the purposes of disclosure under Section 186(4) of
the Companies Act, 2013.
ii. There are no loans having significant increase in credit risk or which are credit impaired or doubtful as at 31
March 2026 (Nil as at 31 March 2025).
iii. Refer note 44 for classification of financial instruments by category and into fair value level of hierarchy.
iv. There are no loans due by directors or other officers of the Company or any of them, either severally or jointly
with any other persons, or amounts due by firms or private companies respectively in which any director is a
partner or a director or a member.
v. The Company has not granted any loans to promoters, directors, KMPs and related parties (as defined under the
Act), either severally or jointly with any other person, that are:
(a) repayable on demand; or
(b) without specifying any terms or period of repayment
(b) Terms/ rights attached to equity shares
The Company has only one class of equity shares having a par value of H 2 per share. Each holder of equity shares
is entitled to one vote per share held and is entitled to receive dividend proposed by the Board of Directors
subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation
of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts in proportion to their shareholdings.
(c) Aggregate number of bonus shares issued, shares issued for consideration other than cash and
shares bought back during the period of five years immediately preceding the reporting date.
Except for the bonus shares issued as stated in note 19(f), the Company has not issued any bonus shares, nor
issued shares pursuant to contract for consideration other than cash or bought back any shares.
(f) Pursuant to the approval of shareholders at the Extraordinary General Meeting of the Company held on 21 May
2024, the Company has:
1. Sub-divided the equity shares of the Company having a nominal face value of H 10 each to equity shares
having a nominal face value of H 2 each with an effective date of 21 May 2024. Accordingly, the issued share
capital increased from 1,050,000 shares of H10 each to 5,250,000 shares of H 2 each;
2. Increased authorised equity share capital of the Company from 75,00,000 equity shares of H 2 each to
10,00,00,000 equity shares of H 2 each; and
3. Issued bonus shares in the ratio of 9:1 i.e. 9 bonus fully paid up equity shares of H 2 each for every 1 existing
fully paid up equity shares of H 2 each. Accordingly 47,250,000 shares were issued against 5,250,000 shares of
H 2 each by utilising free reserves amounting to H 945.00 Lakhs.
(g) (a) During the year, the Company has completed its pre-Initial Public Offer (‘IPO') of 5,071,308 equity shares of
face value H2.00 each at an issue price of H248.00 per equity share (including a securities premium of H246.00
per equity share), comprising a fresh issue of 2,882,580 equity shares and an offer for sale of 2,248,728 equity
shares by selling shareholders.
(b) Further, on 14 August 2025, the equity shares of the Company were listed on the National Stock Exchange
of India Limited and BSE Limited, pursuant to completion of its Initial Public Offer (‘IPO') of 14,570,760 equity
shares of face value H2.00 each at an issue price of H275.00 per equity share (including a share premium of
H273.00 per equity share), comprising an offer for sale of 4,385,562 equity shares by selling shareholders and
a fresh issue of 10,185,198 equity shares.
Nature and purpose of other equity components
Securities premium: This represents the excess of the issue price of shares over their face value. This will be utilized in
accordance with the provisions of the Companies Act, 2013.
Capital reserve: Capital reserve had been created on acquisition of property, plant and equipment in slump sale in
the earlier years.
Retained earnings: This represents the cumulative profits of the Company and effects of remeasurement of defined
benefit obligations. It will be utilized in accordance with the provisions of the Companies Act, 2013.
Terms and conditions: (including current maturities)
a) Secured term loans of H 7,645.16 lakhs as at 31 March 2026 (31 March 2025 - H 13,757.84 lakhs) has been availed from
banks, repayable in 14 to 47 (31 March 2025 - 6 to 54) equal monthly/quarterly installments (EMI) from the end of
the reporting period. EMI ranging between H 0.47 lakhs to H 80.55 lakhs (31 March 2025: H 1.04 lakhs to H 163.14 lakhs)
and has fixed/variable interest rate which ranges from of 6.84% to 7.93% per annum (31 March 2025: 6.50% to
9.57% per annum).
The aforementioned loans are secured by the :
(i) First pari passu charge by way of equitable mortgage on land and building located at Plot 190/1/1/2, 190/1/2,
190/1/3, Gandhidham, Dokmardi - Kilvani Road, Village Amil, Silvassa - 396230 owned by the Company.
(ii) First pari passu charge by way of equitable mortgage on land and building located at District: Valsad
Taluka: Umbergaon Village: Khatalwada New Revenue Survey No.- 2124, 2125, 2200, 2203, 2204, 2210 owned
by the Company.
(iii) First pari passu charge by way of equitable mortgage on land and building located at Third Floor, Royal
Industrial Estate, C.S.L. 5B, Naigaum Cross Road, Wadala, Mumbai and Survey No. 371/1-C, Industrial
Warehouse, Village Kachigam, Nani Daman owned by the Company. However, the related charge against
this security has been satisfied and vacated. Since the Company has fully repaid the said borrowing.
Further, all above term loans are secured by second pari passu charge on present and future stocks and
book debts of the borrower. Also, personal guarantees have been given by directors of the Company for the
term loan facilities.
b) Secured vehicle loans of H 47.10 lakhs as at 31 March 2026 (31 March 2025- H 73.90 lakhs) has been availed by the
Company, repayable in 14 to 35 (31 March 2025 - 7 to 27) equal monthly installments (EMI) from the end of reporting
period. EMI ranging between: H 0.28 lakhs to 0.51lakhs (31 March 2025: H 0.28 lakhs to 0.51 lakhs) and has interest
rate ranging from : 7.40% to 8.10% per annum (31 March 2025: 7.40% to 8.10% per annum) and secured by way of
hypothecation of the vehicle purchased.
21 Borrowings- non current (Contd..)
(c) Loan from customer signifies the advance provided by the customer for procuring the assets, considering the
significant financing component involved the said advance has been classified as financing liabilities. However,
there is no such advance/ loan from customer as at 31 March 2026.
Terms and conditions:
Secured loan:
a) Secured working capital loans from banks of H 338.63 lakhs as at 31 March 2026 (31 March,2025 - H 7,935.79 lakhs)
are secured by the first pari passu charge by the way of equitable mortgage on land and building located at
Plot 190/1/1/2, 190/1/2, 190/1/3, Gandhidham, Dokmardi - Kilvani Road , Village Amil, Silvassa - 396230 owned by the
Company and second pari passu charge on present and future stocks and book debts of the borrower. Cash
margin of 10% against letter of credit and bank guarantee facilities in form of fixed deposits to be lien marked in
favor of the various banks. Working capital loan has fixed/variable interest rate ranging from : 8.25% to 8.50% per
annum (31 March 2025: 6.75 % to 11.5% per annum).
b) Further personal guarantees have been given by directors of the Company for the above working capital loans.
c) The loans have been utilised for the purpose they were obtained.
d) The Company has filed quarterly return/statements, in respect of working capital limits sanctioned by the banks
and such return/statements are in agreement with the books of account of the Company for the respective
periods, except for the following:
28 Revenue from operations (Contd..)
(iii) Performance obligations
Information about the Company's performance obligations are summarised below:
Supply of customised and non-customised plastic based space solutions products manufactured and
designed as per customer requirements. There are no amount of transaction price allocated to unsatisfied
performance obligation.
(iv) Information about major customers are as follows:
The Company earns revenue from two major customers who individually contribute more than 10 % of the
Company's revenue.
36.2 Corporate social responsibility disclosure
The Company meets the criteria specified under Section 135 of the Companies Act, 2013 and has formed a Corporate
Social Responsibility (CSR) Committee to monitor the CSR activities implemented as per the CSR policy of the
Company. The Company spends in each financial year at least 2% of its average net profit for the immediately
preceding three financial years as per provisions of Section 135 of the Act and is in compliance of its CSR policy.
The funds allocated are utilised through the year on the activities which are specified in Schedule VII of the Act.
(c) Terms and conditions with related parties
All transactions with related parties are made on the terms equivalent to those that prevail in arm's length
transactions and within the ordinary course of business.
Employee related payables are unsecured and due to be paid over next 12 months. All the payables to/ receivable
from related parties are due to be settled in cash.
Advance to vendors are expected to be settled through the receipt of goods in the ordinary course of business.
(d) Personal guarantee
The secured loan and working capital is guaranteed by the directors of the Company (Refer note 21 and 23)
(e) There are no commitments with any related party during the year/ as at the year end.
40 Earnings per share (EPS)
Basic earnings per share amounts are calculated by dividing the profit for the year attributable to equity holders by
the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed
using the weighted average number of dilutive common equivalent shares outstanding during the year, except
where result would be anti-dilutive.
42 Employee benefits (Contd..)
(B) Defined benefit plans
The Company has Gratuity as post employment benefit which is in the nature of defined benefit plan.
The Company operates gratuity plan (funded) wherein every employee is entitled to the benefit equivalent to
fifteen days last drawn salary for each completed year of service as per the New Labour Act. The same is payable
on termination of service or retirement, whichever is earlier. The benefit vests after five years of continuous service.
42 Employee benefits (Contd..)
The above sensitivity analysis are based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated
and hence, this sensitivity analysis may not be representative of an actual change in the defined benefit
obligation When calculating the sensitivity of defined benefit obligation to significant actuarial assumptions
the same method (present value of defined benefit obligations calculated with the projected unit credit
method at the end of the reporting period) has been applied as when calculate the defined benefit liability
recognised in the balance sheet.
Sensitivities related to mortality are considered immaterial, therefore the impact of changes stemming
from these factors has not been presented.
x) Effective 21 November 2025, the Government of India has consolidated multiple existing labour legislation
into a unified framework comprising of four Labour codes - The Code on Wages, 2019, The Industrial Relations
Code, 2020, The Code on Social Security, 2020 and The Occupational Safety, Health and Working Conditions
Code, 2020. On the basis of information and guidance available as on date, the Company has estimated
and duly recorded the incremental financial impact of the above amounting to H437.28 lakhs. Considering
the materiality and non-recurring nature of this incremental impact, the Company has presented the said
amount under "Exceptional Items" in these standalone financial statements.
xi) The liability for compensated absences as at 31 March 2026 amounts to H 410.66 lakhs (31 March 2025: H 349.93
lakhs)
43 Segment reporting
In accordance with the requirement of Ind AS 108 - “Segment reporting”, the Company is primarily engaged in the
business of manufacturing of plastic based articles and has no other reportable segments. The Board of Directors
of the Company allocates the resources and assess the performance of the Company as Chief Operating Decision
Maker(“CODM”). The CODM monitors the operating results of the business as a single segment hence no separate
segment needs to be disclosed. Thus the segment revenue, segment result, total carrying value of segment assets,
total carrying amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of
charge for depreciation and amortization during the year are all as reported in the financial statements for the year
ended 31 March 2026, 31 March 2025 and as on respective date. Refer note 28 for reporting based on size of customer.
The Company is domiciled in India. The amount of its revenue from external customers broken down by location of
the customers is shown in the table below:
44 Fair value hierarchy
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 participant at the measurement date.
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 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. An explanation of each level has been provided below.
Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments which
are traded in the stock exchanges are valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.
Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the use of quoted market prices or dealer quotes for similar instruments
- the use of discounted cash flow for fair value at amortised cost
The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The
Company's primary focus is to oversee the management of these risks to minimize potential adverse effects on its
financial performance.
In order to minimize any adverse effects on the financial performance, the Company's risk management is carried out
by a corporate treasury and corporate finance department under policies approved by the board of directors and
top management. The Company's treasury identifies, evaluates and mitigates financial risks in close cooperation
with the Company's operating units. The board provides guidance for overall risk management, as well as policies
covering specific areas.
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the
related impact in the financial statements.
(i) Market risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse
changes in market rates and prices. The Company's size and operations result in it being exposed to the following
market risks that arise from its use of financial instruments:
(a) currency risk; (b) price risk; and (c) interest rate risk
The above risks may affect the Company's income and expenses, or the value of its financial instruments.
The Company's exposure to and management of these risks are explained below.
(ii) Currency risk
(a) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign
exchange rates relates primarily to the Company's operating activities (when revenue or expense is
denominated in a different currency from the Company's functional currency). The Company uses foreign
exchange forward contracts for hedging receivables and payable risk. To the extent of lower of exports and
imports that the Company undertakes in USD, the Company has a natural hedge against the exposure to
foreign currency risks.
45 Financial risk management objectives and policies (Contd..)
Hedging activities and derivatives - Derivatives Not Designated As Hedging Instruments
The Company uses foreign currency denominated borrowings and foreign exchange forward contracts to
manage some of its transaction exposures. The foreign exchange forward contracts are not designated
as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the
underlying transactions.
(b) Price risk
The Company is mainly exposed to the price risk due to its investment in mutual funds and bonds. The price
risk arises due to uncertainties about the future market values of these investments at 31 March 2026, the
investments in mutual funds and Bonds amounts to 1,982.46 lakhs (31 March, 2025: Nil). These are exposed to
price risk. The Company has laid policies and guidelines which it adheres to in order to minimize price risk
arising from investments in credible mutual funds. A 1% increase in prices would have led to approximately
an additional H19.82 lakhs gain in profit or loss/equity (31 March, 2025: Nil). A 1% decrease in prices would have
led to an equal but opposite effect.
Further, treasury activities, focused on managing investments in debt instruments, are centralised and
administered under a set of approved policies and procedures guided by the tenets of safety, liquidity and
returns. This ensures that investments are made within acceptable risk parameters after due evaluation.
The Company's investments are predominantly held in Bonds, bank deposits and debt mutual funds.
Investments in bonds are fair valued through the Statement of Profit and Loss to recognise market volatility,
which is not considered to be significant.
Bank deposits are held with highly rated banks and companies and have a short tenure and are not subject
to interest rate volatility. The Company also invests in debt mutual fund schemes of leading fund houses.
Such investments are susceptible to market price risks that arise mainly from changes in interest rate
which may impact the return and value of such investments. However, given the relatively short tenure of
underlying portfolio of the debt mutual fund schemes in which the Company has invested, such price risk is
not significant.
Sensitivity analysis
Fixed rate instruments that are carried at amortised cost are not subject to interest rate risk for the purpose
of sensitivity analysis.
(ii) Credit risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the
contractual terms and obligations. Credit risk encompasses of both, the direct risk of default and the risk of
deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit
limits and credit worthiness of the customer on continuous basis to whom the credit has been granted after
obtaining necessary approvals for credit. The financial instruments that are subject to concentration of credit
risk principally consist of trade receivables, loans, investment in bonds, investment in debt mutual fund and
cash and bank equivalents.
45 Financial risk management objectives and policies (Contd..)
To manage credit risk, the Company follows a policy of providing 30 to 90 days credit to its customers. The
credit limit policy is established considering the current economic trend of the industry in which the Company is
operating. Also, the trade receivables are monitored on a periodic basis for assessing any significant risk of non¬
recoverability of dues and provision is created accordingly. The Company has very limited history of customer
defaults, Refer Note 13 for information of credit loss allowance.
Loans and other financial assets includes loans to inter corporate deposit, loans granted to employees,
deposits receivable, interest accrued on deposits and other receivables. These receivables are monitored
on a periodic basis for assessing any significant risk of non-recoverability of dues and provision is created
accordingly. The Company does not expect any losses from non-performance by these financial assets based
on its past experiences.
Credit risk on bank balance (including bank deposit), debt mutual funds and bond is limited as the Company
generally invest in deposits with banks and financial institutions with high credit ratings assigned by international
and domestic credit rating agencies.
45 Financial risk management objectives and policies (Contd..)
(iii) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.
The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due. The Company closely monitors its liquidity position and deploys a robust cash
management system.
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and committed
borrowing facilities, by continuously monitoring forecast and actual cash flows.
46 Capital management
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity
reserves attributable to the equity holders. The primary objective of the Company's capital management is to
maximize the shareholder value and to ensure the Company's ability to continue as a going concern. The Company
is not subject to externally imposed capital requirements. The Company has not distributed any dividend to its
shareholders. The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e.
equity and debt. Total debt comprises of non-current and current borrowings. The Company manages the capital
structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of
the underlying assets.
48 Additional disclosures with respect to amendments to Schedule III:
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.
(ii) The Company does not have any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956."
(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies
beyond the statutory period.
(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries); or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(v) 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:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries); or
b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vi) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 (such
as, search or survey or any other relevant provisions of the Income-tax Act, 1961).
(vii) The Company has not been declared willful defaulter by any bank or financial institution or government or any
government authority.
(viii) The Company has not entered into any scheme of arrangement which has an accounting impact on the current
or previous financial year.
(ix) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
(x) The Company has complied with the number of layers prescribed under section 2(87) of the Act.
49 The proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment
Rules 2021 requires companies, which use accounting software for maintaining its books of accounts, to use only
such accounting software which has a feature of recording audit trail of each and every transaction, creating an
edit log of each change made in the books of account along with the date when such changes were made and
ensuring that the audit trail cannot be disabled.
The audit trail feature was enabled both at the application level and data base level in the accounting software
used by the Company to maintain its books of accounts. Further audit trail has been preserved by the Company as
per the statutory requirement for the record retention.
50 The Company has issued financial guarantee amounting to H 1,500.00 lakhs (31 March 2025 : Nil) to banks on
behalf of and in respect of loan facilities availed by one of its subsidiaries. However, as at 31 March 2026 the said
subsidiary is yet to make any draw downs pursuant to the aforementioned loan facility.
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(b) Refer note 7 for investments.
(c) Refer note 50 for guarantee given.
52 Authorization of financial statements
The financial statements for the year ended 31 March 2026 were approved by the Board of Directors on 22 May 2026.
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