n. Provisions and Contingent liabilities
Provisions
Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that an
outflow of resources embodying economic benefits
will be required to settle the obligation and a
reliable estimate can be made of the amount of
the obligation. When the Company expects some
or all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense
relating to a provision is presented in the statement
of profit and loss net of any reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used, the
increase in the provision due to the passage of time
is recognised as a finance cost.
Contingent Liabilities
A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events not wholly
within the control of the entity or a present
obligation that arises from past events but is
not recognised because it is not probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation or
the amount of the obligation cannot be measured
with sufficient reliability. The Company does not
recognise a contingent liability but discloses its
existence and other required disclosures in notes
to the standalone financial statements, unless the
possibility of any outflow in settlement is remote.
as per the requirements of Ind AS 37.
Provisions and contingent liabilities are reviewed at
each balance sheet date.
o. Retirement and other employee benefits
Retirement benefit in the form of provident fund is
a defined contribution scheme. The Company has
no obligation, other than the contribution payable
to the provident fund. The Company recognises
contribution payable to the provident fund scheme
as an expense, when an employee renders the
related service. If the contribution payable to the
scheme for service received before the balance
sheet date exceeds the contribution already paid,
the deficit payable to the scheme is recognised as
a liability after deducting the contribution already
paid. If the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then excess is recognised as an
asset to the extent that the pre-payment will lead to,
for example, a reduction in future payment or a cash
refund.
The Company operates a defined benefit gratuity
plan in India, which requires contributions to be
made to a separately administered fund.
The cost of providing benefits under the defined
benefit plan is determined using the projected unit
credit method.
Remeasurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return on
plan assets (excluding amounts included in net
interest on the net defined benefit liability), are
recognised immediately in the balance sheet with
a corresponding debit or credit to retained earnings
through OCI in the period in which they occur.
Remeasurements are not reclassified to profit or
loss in subsequent periods.
Past service costs are recognised in profit or loss on
the earlier of:
• The date of the plan amendment or curtailment,
and
• The date that the Company recognises related
restructuring costs
Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset. The
Company recognises the following changes in the
net defined benefit obligation as an expense in the
standalone statement of profit and loss:
• Service costs comprising current service
costs, past-service costs, gains and losses on
curtailments and non-routine settlements; and
• Net interest expense or income
Accumulated leave, which is expected to be utilised
within the next 12 months, is treated as short-term
employee benefit. The Company measures the
expected cost of such absences as the additional
amount that it expects to pay as a result of the
unused entitlement that has accumulated at the
reporting date. The Company recognises expected
cost of short-term employee benefit as an expense,
when an employee renders the related service.
The Company treats accumulated leave expected to
be carried forward beyond twelve months, as long¬
term employee benefit for measurement purposes.
Such long-term compensated absences are provided
for based on the actuarial valuation using the
projected unit credit method at the reporting date.
Remeasurement gains/losses are immediately
taken to the statement of profit and loss and are not
deferred. The obligations are presented as current
liabilities in the balance sheet if the entity does not
have an unconditional right to defer the settlement
for at least twelve months after the reporting date.
p. Share-based payments
Employees (including senior executives) of the
Company receive remuneration in the form of
share-based payments, whereby employees render
services as consideration for equity instruments
(equity-settled transactions).
Equity-settled transactions
The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model.
That cost is recognised, together with a
corresponding increase in share-based payment
(SBP) reserves in equity, over the period in which the
performance and/or service conditions are fulfilled
in employee benefits expense. The cumulative
expense recognised for equity-settled transactions
at each reporting date until the vesting date reflects
the extent to which the vesting period has expired
and the Company's best estimate of the number
of equity instruments that will ultimately vest. The
expense or credit in the statement of profit and loss
for a period represents the movement in cumulative
expense recognised as at the beginning and end of
that period and is recognised in employee benefits
expense.
Service and non-market performance conditions
are not taken into account when determining the
grant date fair value of awards, but the likelihood
of the conditions being met is assessed as part of
the Company's best estimate of the number of
equity instruments that will ultimately vest. Market
performance conditions are reflected within the
grant date fair value. Any other conditions attached
to an award, but without an associated service
requirement, are considered to be non-vesting
conditions. Non-vesting conditions are reflected in
the fair value of an award and lead to an immediate
expensing of an award unless there are also service
and/or performance conditions.
No expense is recognised for awards that do not
ultimately vest because non-market performance
and/or service conditions have not been met. Where
awards include a market or non-vesting condition,
the transactions are treated as vested irrespective
of whether the market or non-vesting condition is
satisfied, provided that all other performance and/or
service conditions are satisfied.
When the terms of an equity-settled award are
modified, the minimum expense recognised is
the grant date fair value of the unmodified award,
provided the original vesting terms of the award are
met. An additional expense, measured as at the date
of modification, is recognised for any modification
that increases the total fair value of the share-based
payment transaction, or is otherwise beneficial to the
employee. Where an award is cancelled by the entity
or by the counterparty, any remaining element of
the fair value of the award is expensed immediately
through profit or loss.
The dilutive effect of outstanding options is reflected
as additional share dilution in the computation of
diluted earnings per share.
q. 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.
Financial assets
initial recognition and measurement
Financial assets are classified, at initial recognition,
as subsequently measured at amortised cost, fair
value through other comprehensive income (OCI),
and fair value through profit or loss.
The classification of financial assets at initial
recognition depends on the financial asset's
contractual cash flow characteristics and the
Company's business model for managing them. With
the exception of trade receivables that do not contain
a significant financing component or for which the
Company has applied the practical expedient, the
Company initially measures a financial asset at its
fair value plus, in the case of a financial asset not at
fair value through profit or loss, transaction costs.
Trade receivables that do not contain a significant
financing component or for which the Company has
applied the practical expedient are measured at the
transaction price determined under Ind AS 115. Refer
to the accounting policies in section (e) Revenue from
contracts with customers.
In order for a financial asset to be classified and
measured at amortised cost or fair value through
OCI, it needs to give rise to cash flows that are 'solely
payments of principal and interest (SPPI)' on the
principal amount outstanding. This assessment is
referred to as the SPPI test and is performed at an
instrument level. Financial assets with cash flows
that are not SPPI are classified and measured at
fair value through profit or loss, irrespective of the
business model.
The Company's business model for managing
financial assets refers to how it manages its financial
assets in order to generate cash flows. The business
model determines whether cash flows will result
from collecting contractual cash flows, selling the
financial assets, or both. Financial assets classified
and measured at amortised cost are held within a
business model with the objective to hold financial
assets in order to collect contractual cash flows while
financial assets classified and measured at fair value
through OCI are held within a business model with
the objective of both holding to collect contractual
cash flows and selling.
Purchases or sales of financial assets that require
delivery of assets within a time frame established by
regulation or convention in the marketplace (regular
way trades) are recognised on the trade date, i.e., the
date that the Company commits to purchase or sell
the asset.
Subsequent measurement
For purposes of subsequent measurement, financial
assets are classified in four categories:
• Financial assets at amortised cost
• Financial assets at fair value through other
comprehensive income (FVTOCI) with recycling
of cumulative gains and losses
• Financial assets designated at fair value
through OCI with no recycling of cumulative
gains and losses upon derecognition
• Financial assets at Fair Value through profit and
loss (FVTPL)
Financial assets at amortised cost
A 'financial assets' is measured at the amortised cost
if both the following conditions are met:
a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and
b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the
principal amount outstanding.
This category is the most relevant to the Company.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. 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 in other income in the statement of profit
and loss. The losses arising from impairment are
recognised in the statement of profit and loss. This
category generally applies to trade receivables,
security deposits and other receivables. For more
information on receivables, refer notes 9, 10, 14, 15,
16, 17 and 18.
Financial assets at FVTOCI
A 'financial assets' is classified as at the FVTOCI if
both of the following criteria are met:
a) The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets, and
b) The asset's contractual cash flows represent
Solely Payments of Principal and Interest.
Financial assets included within the FVTOCI category
are measured initially as well as at each reporting date
at fair value. Fair value movements are recognised in
the other comprehensive income (OCI). However, the
Company recognises interest income, impairment
losses & reversals and foreign exchange gain or loss
in the Profit and loss. On derecognition of the asset,
cumulative gain or loss previously recognised in OCI
is reclassified from the equity to Profit and loss.
The Company's debt instruments at fair value through
OCI includes investments in quoted perpetual debt
instruments included under financial assets.
Financial assets designated at fair value through OCI
Upon initial recognition, the Company can elect
to classify irrevocably its equity investments as
equity instruments designated at fair value through
OCI when they meet the definition of equity under
Ind AS 32 Financial Instruments: Presentation
and are not held for trading. The classification is
determined on an instrument-by-instrument basis.
Equity instruments which are held for trading and
contingent consideration recognised by an acquirer
in a business combination to which Ind AS 103
applies are classified as at FVTPL.
Gains and losses on these financial assets are never
recycled to profit or loss. Dividends are recognised as
other income in the statement of profit and loss when
the right of payment has been established, except
when the Company benefits from such proceeds as
a recovery of part of the cost of the financial asset,
in which case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI are
not subject to impairment assessment.
Financial assets at FVTPL
Financial assets in this category are those that are
held for trading and have been either designated
by management upon initial recognition or are
mandatorily required to be measured at fair value
under Ind AS 109 i.e. they do not meet the criteria
for classification as measured at amortised cost or
FVOCI. Management only designates an instrument
at FVTPL upon initial recognition, if the designation
eliminates, or significantly reduces, the inconsistent
treatment that would otherwise arise from
measuring the assets or liabilities or recognising
gains or losses on them on a different basis. Such
designation is determined on an instrument-by¬
instrument basis.
Financial assets included within the FVTPL category
are measured at fair value with all changes
recognised in the Statement of Profit and Loss.
Interest earned on instruments designated at
FVTPL is accrued in interest income, using the EIR,
taking into account any discount/premium and
qualifying transaction costs being an integral part of
instrument. Interest earned on assets mandatorily
required to be measured at FVTPL is recorded using
the contractual interest rate.
Derecognition
A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from
the Company's standalone balance sheet) when:
• The rights to receive cash flows from the asset
have expired, or
• The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under
a 'pass-through' arrangement and either (a)
the Company has transferred substantially all
the risks and rewards of the asset, or (b) the
Company has neither transferred nor retained
substantially all the risks and rewards of the
asset, but has transferred control of the asset.
When the Company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the
Company continues to recognised the transferred
asset to the extent of the Company's continuing
involvement. In that case, the Company also
recognises an associated liability. The transferred
asset and the associated liability are measured on a
basis that reflects the rights and obligations that the
Company has retained.
Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
Company could be required to repay.
impairment of financial assets
Further disclosures relating to impairment of
financial assets are also provided in the following
notes:
> Disclosures for significant assumptions - see
Note 52
> Non-current invenstment - see Note 08
> Trade receivables- see Note 14
The Company recognises an allowance for expected
credit losses (ECLs) for all debt instruments not held
at fair value through profit or loss. ECLs are based
on the difference between the contractual cash
flows due in accordance with the contract and all
the cash flows that the Company expects to receive,
discounted at an approximation of the original
effective interest rate. The expected cash flows will
include cash flows from the sale of collateral held or
other credit enhancements that are integral to the
contractual terms.
ECLs are recognised in two stages. For credit
exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs
are provided for credit losses that result from default
events that are possible within the next 12-months (a
12-month ECL). For those credit exposures for which
there has been a significant increase in credit risk
since initial recognition, a loss allowance is required
for credit losses expected over the remaining life of
the exposure, irrespective of the timing of the default
(a lifetime ECL).
For trade receivables, the Company applies a
simplified approach in calculating ECLs. Therefore,
the Company does not track changes in credit risk,
but instead recognises a loss allowance based on
lifetime ECLs at each reporting date. The Company
has established a provision matrix that is based
on its historical credit loss experience, adjusted for
forward-looking factors specific to the debtors and
the economic environment.
For debt instruments at fair value through OCI, the
Company applies the low credit risk simplification.
At every reporting date, the Company evaluates
whether the debt instrument is considered to have
low credit risk using all reasonable and supportable
information that is available without undue cost
or effort. In making that evaluation, the Company
reassesses the internal credit rating of the debt
instrument. In addition, the Company considers that
there has been a significant increase in credit risk
when contractual payments are more than 30 days
past due.
The Company's debt instruments at fair value
through OCI comprise solely of quoted bonds that
are graded in the top investment category (Very
Good and Good) by the Good Credit Rating Agency
and, therefore, are considered to be low credit risk
investments. It is the Company's policy to measure
ECLs on such instruments on a 12-month basis.
However, when there has been a significant increase
in credit risk since origination, the allowance will be
based on the lifetime ECL. The Company uses the
ratings from the Good Credit Rating Agency both
to determine whether the debt instrument has
significantly increased in credit risk and to estimate
ECLs.
Financial liabilities
initial recognition measurement and presentation
Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit
or loss, loans and borrowings or as payables as
appropriate.
All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs.
The Company's financial liabilities include trade
and other payables, loans and borrowings including
bank overdrafts, other financial liabilities, financial
guarantee contracts and derivative financial
instruments.
Subsequent measurement
For purposes of subsequent measurement, financial
liabilities are classified in two categories:
• Financial liabilities at fair value through profit or
loss
• Financial liabilities at amortised cost (loans and
borrowings)
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or
loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition
as at fair value through profit or loss.
Financial liabilities are classified as held for trading if
they are incurred for the purpose of repurchasing in
the near term. 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.
Separated embedded derivatives are also classified
as held for trading unless they are designated as
effective hedging instruments.
Gains or losses on liabilities held for trading are
recognised in the profit or loss.
Financial liabilities designated upon initial recognition
as at fair value through profit or loss only if the criteria
in Ind AS 109 are satisfied. For liabilities designated
as FVTPL, fair value gains/losses attributable to
changes in own credit risk are recognised in OCI.
These gains/losses are not subsequently transferred
to P&L. However, the Company may transfer the
cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised
in the statement of profit and loss. The Company has
not designated any financial liability as at fair value
through profit or loss.
Financial liabilities at amortised cost (Loans and
borrowings}
This is the category most relevant to the Company.
After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through the EIR
amortisation process.
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
statement of profit and loss.
This category generally applies to borrowings. For
more information refer Note 22 and 28.
Supplier finance arrangements
The Company has established supplier finance
arrangements (Refer Note 30). The Company
evaluates whether financial liabilities covered such
arrangements continue to be classified within
trade payables, or they need to be classified as a
borrowing or as part of other financial liabilities/as a
separate line item on the face of the balance sheet.
Such evaluation requires exercise of judgment basis
specific terms of the arrangement.
The Company classifies financial liabilities covered
under supplier finance arrangement within trade
payables in the balance sheet only if (i) the obligation
represents a liability to pay for goods and services,
(ii) is invoiced and formally agreed with the supplier,
(iii) is part of the working capital used in its normal
operating cycle, (iv) the Company is not legally
released from its original obligation to the supplier,
and has not assumed a new obligation toward the
bank, and another party (iv) there is no substantial
modification to the terms of the liability.
If one or more of the above criteria are not met, the
Company derecognises its original liability toward
the supplier and recognise a new liability toward
the bank which is classified as bank borrowing or
other financial liability, depending on factors such
as whether the Company (i) has obligation toward
bank, (ii) is getting extended credit period such that
obligation is no longer part of its working capital
cycle, (iii) is paying interest directly or indirectly, (iv)
has provided guarantee or security, and/or (v) is
recognised as borrower in the bank books.
Cash flows related to liabilities arising from supplier
finance arrangements that continue to be classified
in trade payables in the standalone balance sheet
are included in operating activities in the standalone
statement of cash flows, when the Company finally
settles the liability.
In cases, where the Company has derecognised its
original liability toward the supplier and recognise
a new liability toward the bank, the Company has
assessed that the bank is acting as its agent in
making payment to the supplier. Accordingly, the
Company presents operating cash outflow and
financing cash inflow, when bank made payment
to the supplier. The payment made by the Company
to the bank toward interest, if any, as well as on
settlement is presented as financing cash outflow.
Financial guarantee contracts
Financial guarantee contracts issued by the
Company are those contracts that require a payment
to be made to reimburse the holder for a loss it
incurs because the specified debtor fails to make a
payment when due in accordance with the terms of
a debt instrument. Financial guarantee contracts are
recognised initially as a liability at fair value, adjusted
for transaction costs that are directly attributable
to the issuance of the guarantee. Subsequently, the
liability is measured at the higher of the amount
of loss allowance determined as per impairment
requirements of Ind AS 109 and the amount
recognised less, when appropriate, the cumulative
amount of income recognised in accordance with the
principles of Ind AS 115.
Derecognition
A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same lender
on substantially different terms, or the terms of
an existing liability are substantially modified,
such an exchange or modification is treated as
the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
statement of profit and loss.
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 recognised gains, losses
(including impairment gains or losses) or interest.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the standalone balance sheet if there
is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.
r. Derivative financial instruments
Initial recognition and subsequent measurement
The Company uses derivative financial instruments, such as forward currency contracts, 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. Derivatives are carried as financial assets when the fair value
is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss, except for the
effective portion of cash flow hedges (if any), which is recognised in OCI and later reclassified to profit or loss when the
hedge item affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the
recognition of a non-financial asset or non-financial liability.
s. Cash and cash equivalents
Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or
less, that are readily convertible to a known amount
of cash and subject to an insignificant risk of changes
in value.
For the purpose of the Standalone statement of cash
flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above, as they are
considered an integral part of the Company's cash
management.
t. Borrowing costs
Borrowing costs directly attributable to the
acquisition, construction or production of an asset
that necessarily takes a substantial period of time to
get ready for its intended use or sale are capitalised
as part of the cost of the asset. All other borrowing
costs are expensed in the period in which they
occur. 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.
u. Earnings per share
Basic earnings per share is calculated by dividing the
net profit or loss attributable to equity holders of
Company by the weighted average number of equity
shares outstanding during the financial year.
The weighted average number of equity shares
outstanding during the period is adjusted for events
such as bonus issue, bonus element in a rights issue,
share split, and reverse share split (consolidation
of shares) 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 equity shareholders of the Company and the
weighted average number of shares outstanding
during the period are adjusted for the effects of all
dilutive potential equity shares.
v. Events after the reporting period
If the Company receives information after the
reporting period, but prior to the date of approved
for issue, about conditions that existed at the end
of the reporting period, it will assess whether the
information affects the amounts that it recognises
in its separate financial statements. The Company
will adjust the amounts recognised in its financial
statements to reflect any adjusting events after
the reporting period and update the disclosures
that relate to those conditions in light of the new
information. For non-adjusting events after the
reporting period, the Company will not change
the amounts recognised in its separate financial
statements but will disclose the nature of the non¬
adjusting event and an estimate of its financial
effect, or a statement that such an estimate cannot
be made, if applicable.
2.3 Changes in accounting policies and disclosures
New and amended standards
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. The Company has applied for the
first-time certain standards and amendments, which are
effective for annual periods beginning on or after 1st April ,
2025.
(i) Amendments to Ind AS 21 - Lack of exchangeability
The Ministry of Corporate Affairs (MCA) notified
the Companies (Indian Accounting Standards)
Amendment Rules, 2025, which amend Ind AS
21, The Effects of Changes in Foreign Exchange
Rates to specify how an entity should assess
whether a currency is exchangeable and how it
should determine a spot exchange rate when
exchangeability is lacking. The amendments also
require disclosure of information that enables users
of its financial statements to understand how the
currency not being exchangeable into the other
currency affects, or is expected to affect, the entity's
financial performance, financial position and cash
flows.
The amendments are effective for annual reporting
periods beginning on or after 1st April 2025. When
applying the amendments, an entity cannot restate
comparative information.
The amendments do not have a material impact on
the Company's standalone financial statements.
(ii) Amendments to Ind AS 1 - Classification of Liabilities
as Current or Non-current and Non-current Liabilities
with Covenants
In August 2025, the MCA notified amendments
to paragraphs 69 to 76 of Ind AS 1 to specify the
requirements for classifying liabilities as current or
non-current. The amendments clarify:
• What is meant by a right to defer settlement.
• That a right to defer must exist at the end of the
reporting period.
• That classification is unaffected by the
likelihood that an entity will exercise its deferral
right.
• That only if an embedded derivative in a
convertible liability is itself an equity instrument
would the terms of a liability not impact its
classification.
In addition, a requirement has been introduced to
require disclosure when a liability arising from a
loan agreement is classified as non-current and
the entity's right to defer settlement is contingent
on compliance with future covenants within twelve
months.
If there is a breach of a material covenant of a long
term loan arrangement on or before the end of the
reporting period, resulting in the liability becoming
payable on demand as at the reporting date, and the
lender agrees—after the reporting period but before
the financial statements are approved for issue—
not to demand repayment for at least 12 months as
a consequence of the breach, this shall be treated
as an adjusting event. Accordingly, the entity is not
required to classify the liability as current.
The amendments are effective for annual reporting
periods beginning on or after 1st April 2025
retrospectively in accordance with Ind AS 8.
The amendments do not have any impact on
Company's standalone financial statements
(iii) Amendments to Ind AS 7 and Ind AS 107 - Supplier
Finance Arrangements
In August 2025, the MCA notified amendments to
Ind AS 7 Statement of Cash Flows and Ind AS 107
Financial Instruments: Disclosures to clarify the
characteristics of supplier finance arrangements and
require additional disclosure of such arrangements.
The disclosure requirements in the amendments
are intended to assist users of financial statements
in understanding the effects of supplier finance
arrangements on an entity's liabilities, cash flows
and exposure to liquidity risk.
The amendment had no impact on the Company's
standalone financial statements as the Company
has not entered any contracts of such nature.
(iv) International Tax Reform—Pillar Two Model Rules -
Amendments to Ind AS 12
In August 2025, the MCA notified amendments to
Ind AS 12 Income Taxes in response to the OECD's
BEPS Pillar Two rules and include:
• A mandatory temporary exception to the
recognition and disclosure of deferred taxes
arising from the jurisdictional implementation
of the Pillar Two model rules; and
• Disclosure requirements for affected entities
to help users of the financial statements better
understand an entity's exposure to Pillar Two
income taxes arising from that legislation,
particularly before its effective date.
The mandatory temporary exception - the use
of which is required to be disclosed - applies
immediately. The remaining disclosure requirements
apply for annual reporting periods beginning on or
after 1st April 2025, but not for any interim periods
ending on or before 31st March 2026.
The amendments had no impact on the Company's
standalone financial statements as the Company is
not in scope of the Pillar Two model rules.
2.4 Standards notified but not yet effective
The amendments to the standards that are notified by the
Ministry of Corporate Affairs (MCA), but not yet effective,
up to the date of issuance of the Company's financial
statements are disclosed below. The Company will adopt
these amendments to the standards, when they become
effective.
(i) Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants and Ind AS 10
Events after the Reporting Period
Ind AS 10 has been amended to remove the previous
treatment under which a lender's post reporting
date waiver-granted before the financial statements
were approved for issue-of a breach of a material
covenant in a long term loan arrangement that
occurred on or before the end of the reporting period,
resulting in the liability becoming payable on demand
at the reporting date, was regarded as an adjusting
event.
For annual reporting periods beginning on or after
1st April 2026, any breach of a covenant—whether
material or immaterial-occurring on or before the
reporting date will, in accordance with Ind AS 1,
require the related liability to be classified as current,
unless the lender has granted a waiver of the breach
on or before the reporting date and has agreed not to
demand repayment for at least 12 months after the
reporting date as a consequence of the breach. Such
a waiver shall be treated as an adjusting event.
The amendments are effective for annual reporting
periods beginning on or after 1st April 2026
retrospectively in accordance with Ind AS 8.
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES
AND ASSUMPTIONS
The preparation of the 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
disclosures, and the disclosure of contingent liabilities.
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.
Judgements
In the process of applying the Company's accounting
policies, management has made the following judgements,
which have the most significant effect on the amounts
recognised in the standalone financial statements:
Determining the lease term of contracts with renewal
and termination options - Company as lessee
The Company determines the lease term as the non¬
cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably
certain to be exercised, or any periods covered by an
option to terminate the lease, if it is reasonably certain not
to be exercised.
The Company has several lease contracts that include
extension and termination options. The Company
applies judgement in evaluating whether it is reasonably
certain whether or not to exercise the option to renew or
terminate the lease. That is, it considers all relevant factors
that create an economic incentive for it to exercise either
the renewal or termination. After the commencement
date, the Company reassesses the lease term if there
is a significant event or change in circumstances that is
within its control and affects its ability to exercise or not to
exercise the option to renew or to terminate.
Revenue from contracts with customers
The Company applied the following judgements that
significantly affect the determination of the amount and
timing of revenue from contracts with customers:
Determining method to estimate variable consideration
and assessing the constraint
Certain contracts for the sale of goods include a right of
return that give rise to variable consideration. In estimating
the variable consideration, the Company is required to
use either the expected value method or the most likely
amount method based on which method better predicts
the amount of consideration to which it will be entitled.
The Company determined that the expected value method
is the appropriate method to use in estimating the variable
consideration for the sale of goods with rights of return,
given the large number of customer contracts that have
similar characteristics.
Before including any amount of variable consideration in
the transaction price, the Company considers whether
the amount of variable consideration is constrained.
The Company determined that the estimates of variable
consideration are not constrained based on its historical
experience, business forecast and the current economic
conditions. In addition, the uncertainty on the variable
consideration will be resolved within a short time frame.
Estimates and assumptions
The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date,
that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the
next financial year, are described below. The Company
based its assumptions and estimates on parameters
available when the standalone financial statements were
prepared. Existing circumstances and assumptions about
future developments, however, may change due to market
changes or circumstances arising that are beyond the
control of the Company. Such changes are reflected in the
assumptions when they occur.
Share-based payments
The Company measures the cost of equity-settled
transactions with employees using a Black Scholes
Options Pricing model to determine the fair value of the
liability incurred. Estimating fair value for share-based
payment transactions requires determination of the most
appropriate valuation model, which is dependent on the
terms and conditions of the grant. This estimate also
requires determination of the most appropriate inputs
to the valuation model including the expected life of the
share option, volatility and dividend yield and making
assumptions about them. The assumptions and models
used for estimating fair value for share-based payment
transactions are disclosed in Note 59.
Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan 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.
The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for
plans operated, the management considers the interest
rates of government bonds in currencies consistent with
the currencies of the defined benefit obligation.
The mortality rate is based on publicly available mortality
tables for the country. Those mortality tables tend to
change only at interval in response to demographic
changes. Future salary increases and gratuity increases
are based on expected future inflation rates for the
country.
Further details about gratuity obligations are given in
Note 51.
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 judgement is required in establishing
fair values. Judgements 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. See Note 52 and 53 for
further disclosures.
Revenue recognition - Estimating variable consideration
for returns
The Company estimates variable considerations to be
included in the transaction price for the sale of goods
with rights of return. The Company developed a statistical
model for forecasting sales returns. The model used the
historical return data of each product to come up with
expected return percentages. These percentages are
applied to determine the expected value of the variable
consideration. Any significant changes in experience as
compared to historical return pattern will impact the
expected return percentages estimated by the Company.
The Company updates its assessment of expected returns
quarterly and the refund liabilities are adjusted accordingly.
Estimates of expected returns are sensitive to changes
in circumstances and the Company's past experience
regarding returns entitlements may not be representative
of customers' actual returns in the future.
Provision for expected credit losses of trade receivables
The Company uses a provision matrix to calculate ECLs for
trade receivables. The provision rates are based on days
past due for groupings of various customer segments that
have similar loss patterns (i.e., by geography, product type,
customer type and rating, and coverage by letters of credit
and other forms of credit insurance).
The provision matrix is initially based on the Company's
historical observed default rates. The Company will
calibrate the matrix to adjust the historical credit loss
experience with forward-looking information. For
instance, if forecast economic conditions (i.e., gross
domestic product) are expected to deteriorate over the
next year which can lead to an increased number of
defaults in the manufacturing sector, the historical default
rates are adjusted. At every reporting date, the historical
observed default rates are updated and changes in the
forward-looking estimates are analyzed.
The assessment of the correlation between historical
observed default rates, forecast economic conditions
and ECLs is a significant estimate. The amount of ECLs
is sensitive to changes in circumstances and of forecast
economic conditions. The Company's historical credit loss
experience and forecast of economic conditions may also
not be representative of customer's actual default in the
future. The information about the ECLs on the Company's
trade receivables is disclosed in Note 53.
Impairment of non-financial assets
Impairment exists when the carrying value of an asset
or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal
and its value in use. The fair value less costs of disposal
calculation is based on available data from binding sales
transactions, conducted at arm's length, for similar assets
or observable market prices less incremental costs for
disposing of the asset. The value in use calculation is
based on a DCF model. The cash flows are derived from
the budget for the next five years and do not include
restructuring activities that the Company is not yet
committed to or significant future investments that will
enhance the asset's performance of the CGU being tested.
The recoverable amount is sensitive to the discount rate
used for the DCF model as well as the expected future
cash-inflows and the growth rate used for extrapolation
purposes.
Intangible asset under development
The Company capitalises intangible asset under
development for a project in accordance with the
accounting policy. Initial capitalisation of costs is based
on management's judgement that technological and
economic feasibility is confirmed, usually when a product
development project has reached a defined milestone
according to an established project management model. In
determining the amounts to be capitalised, management
makes assumptions regarding the expected future cash
generation of the project and the expected period of
benefits.
Leases - Estimating the incremental borrowing rate
The Company cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR
is the rate of interest that the Company would have to pay
to borrow over a similar term, and with a similar security,
the funds necessary to obtain an asset of a similar value to
the right-of-use asset in a similar economic environment.
The IBR therefore reflects what the Company 'would have
to pay, which requires estimation when no observable
rates are available or when they need to be adjusted
to reflect the terms and conditions of the lease. The
Company estimates the IBR using observable inputs (such
as market interest rates) when available and is required to
make certain entity-specific estimates.
Notes:
(i) The Company acquired a portion of the business of AmberPR Technoplast India Private Limited pursuant to a business transfer
agreement dated 30th September 2024 through a slump sale on a going concern basis for a lump sum purchase consideration
of ' 1,867.74 Lakh with effective transfer date of 01st October 2024. This transaction was accounted for in accordance with
appendix C of Ind AS 103 - Business Combinations. Refer note 61 for details.
(ii) The Company acquired 15,000 equity shares of Pravartaka Tooling Services Private Limited ("Pravartaka") on 01st February 2022,
which represents 60% of the total share capital, by investing ' 2,200.05 Lakh as subscription amount, which was paid at the date
of acquisition. The Company has written a put option and simultaneously bought a call option for acquisition of remaining 40%
stake in Pravartaka and accordingly, recognised ' 124.19 Lakh as net derivative asset for acquisition of remaining shares. As on
31st March 2026, the management has remeasured the aforesaid net derivative instrument as net derivative liability of ' 809.50
Lakh (31st March 2025: ' 1,088.42 Lakh), based on valuation report of an independent valuer refer note 24. For details of method
and assumptions used for the valuation refer note 52.
(iii) During the year ended 31 March 2024, the Company subscribed to 3,100, 9% Optional Fully Convertible Debentures ('OFCD') of
IL JIN Electronics (India) Private Limited ('IL JIN') of ' 10 Lakh each, aggregating to ' 31,000.00 Lakh. During the year ended 31
March 2025, the Company exercised its option to convert such OFCD into equity share and pursuant to said conversion, IL JIN
issued 20,46,002 fully paid up equity shares to the Company at a price of ' 1,515.15 per share (including premium of ' 1,505.15
per share) and the Company acquired additional 1,81,282 equity shares of IL JIN from its minority shareholders for an aggregate
consideration of ' 3,322.90 Lakh at a price of ' 1,833 per share.
In addition to above, during the year ended 31 March 2026, the employees of IL JIN Electronics (India) Limited ('IL JIN') have
exercised stock options under Employee Stock Options Scheme of the Company. Accordingly, the Company has recognised a
deemed investment in respect of such stock options exercised by employees of investee company, amounting to ' 208.49 Lakh
as at 31 March 2026 (31 March 2025: ' 27.44 Lakh).
(iv) The employees of PICL (India) Private Limited ('PICL') have exercised stock options under Employee Stock Options Scheme of
the Company. Accordingly, the Company has recognised a deemed investment in respect of such stock options exercised by
employees of investee company, amounting to ' 51.45 Lakh as at 31st March 2026 (31st March 2025: ' 13.72 Lakh).
(v) On 25th May 2024, the Company acquired additional 11,06,937 equity shares of Ever Electronics Private Limited from its
minority shareholders for an aggregate consideration of ' 6,863.01 Lakh at a price of ' 620.00 per share. Resulting to same, the
Company's shareholding increased to 90.22% in Ever Electronics Private Limited.
During the year ended 31st March 2026, the Scheme of amalgamation between IL JIN Electronics (India) Private Limited and
Ever Electronics Private Limited was approved by the Hon'ble National Company Law Tribunal, Mumbai, vide its order dated 30th
May 2025. IL JIN Electronics (India) Private Limited has accounted for the effect of this scheme in accordance with Ind AS 103 -
Business Combinations in its financial statement. Pursuant to the scheme, IL JIN Electronics (India) Private Limited has issued
13,03,913 equity shares to the Company in consideration of its shareholding in Ever Electronics Private Limited.
(vi) The Board of Directors of the Company, at its meeting held on 10th February 2024 approved formation of a joint venture alliance
with LCGC Resolute Appliances LLP to undertake investment in Amber Resojet Private Limited (formerly known as "Resojet
Private Limited") an existing company. The joint venture was formed to carry on the business of manufacturing of fully automatic
top loading and front-loading washing machines and their components. On 21st March 2024, the definitive agreements have
been executed by the Company to acquire 50% stake in Amber Resojet Private Limited. On 4th May 2024, the Company acquired
the said 50% stake through primary investment in equity share capital of Amber Resojet Private Limited for consideration of
' 3,500 Lakh. Pursuant to the said acquisition, Resojet Private Limited has become a Joint Venture Company of the Company.
(vii) The employees of Sidwal Refrigeration Industries Private Limited have exercised stock options under Employee Stock Options
Scheme of the Company. Accordingly, the Company has recognised a deemed investment in respect of such stock options
exercised by employees of investee company, amounting to ' 138.43 Lakh (31st March 2025: ' Nil ).
(viii) During the year ended 31st March 2026, IL JIN Electronics (India) Private Limited issued 26,50,513 CCPS and 38,414 equity
shares on a preferential basis through private placement, aggregating to a total consideration of '1,75,000 Lakh. Consequently,
the Company's shareholding in IL JIN has been reduced from 90.22% to 60.15%.
(ix) Investments at fair value through OCI (fully paid) reflect investment in quoted debt securities. These securities are designated
as FVTOCI as these debt securities meet SPPI test and are held in a business model whose objective is met both by collecting
contractual cash flows and selling the asset. Refer note 52 for determination of their fair values.
(x) Following the impairment testing principles of Ind AS 36 "Impairment of Assets" the Company has assessed the recoverable
amount of the investment in its subsidiaries companies and joint venture company. The recoverable amount is higher of fair
value less cost to disposal and value in use. The investment made by the Company in the subsidiaries and joint venture are
strategic investments. Basis independent valuation done by external valuer and internal assessment done by the management,
considering the present value of projected future cash flow from business of the subsidiary companies and joint venture and
considering value of surplus assets, the management is confident that the impairment in the value of investments, if any, is
temporary in nature and thereby no impact for the reduction in the value needs to be considered in the financial statements.
The value in use of the underlying investment is determined basis discounted cash flow model. The discounted cash flow
calculations uses management assumptions and pre tax cash flow projections based on financed budgets approved by
respective entities management covering a 5 years period. Cash flow projection beyond 5 years time period are extrapolated
using the estimated growth rates which is consistent with forecasts included in industry reports specific to industry in which the
component operates. The following assumptions has been considered by the independent valuer in the valuation done for the
year ending:
Based on the analysis, management believes that adequate headroom is available and change in any of above assumption
would not cause any material possible change in carrying value of the entities over and above its recoverable amount, other than
those already accounted.
Sensitivity analysis of assumptions
The Company has performed sensitivity analysis on the key assumptions by /- 2% for each of the assumptions used and
ensured that the valuation is appropriate and there is no further impairment.
Notes:
(i) Refer note 52 - Fair value disclosures for disclosure of fair value in respect of financial assets measured at amortised cost and
note 53 - Financial risk management for assessment of expected credit losses.
(ii) The Company does not have any loans which are either credit impaired or where there is significant increase in credit risk.
(iii) Loans are non-derivative financial assets which generate a fixed or variable interest income for the Company and are measured
at amortised cost. The carrying value may be affected by changes in the credit risk of the counterparties.
(iv) The Company does not have any loans or advances in the nature of loans granted to promoters, directors, KMPs and the related
parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are repayable on
demand or without specifying any terms or period of repayment.
Notes:
(i) Refer note 16(ii) for bank deposits which are under restriction.
(ii) Refer note 52 - Fair value disclosures for disclosure of fair value in respect of financial assets measured at amortised cost and
note 53 - Financial risk management for assessment of expected credit losses.
(iii) During the year ended 31st March 2026, IL JIN Electronics (India) Private Limited has proposed to raise additional capital
aggregating to ' 32,812.29 Lakh by way of a Rights Issue of equity shares, vide its Letter of Offer dated 19th March 2026,
to support its strategic initiatives. On 23rd March 2026, the Company has subscribed in the said Rights Issue, being equity
shares of face value of ' 10/- each, at an issue price of ' 2,375/- per equity share, including a premium of ' 2,365/- per
equity share, for an aggregate consideration of ' 29,602.71 Lakh. The allotment for rights issue was duly completed on
21st April 2026.
(iv) Security deposits includes deposits given to related parties amounting to ' 123.50 Lakh (31st March 2025: ' 115.52 Lakh), refer
note 45.
Nature and purpose of other equity
Securities premium
Securities premium represents premium received on issue of shares. The securities premium can be utilised in accordance with the
provisions of the Companies Act, 2013.
General reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified
percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in
a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the
total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer
a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the
general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.
Employee stock option outstanding account
The Employee stock options outstanding account is used to recognise the grant date fair value of options issued to employees under
the Company's stock option plan. The amount recognised in this reserve are transfer to security premium when options are exercised
by the employees.
Perpetual debt instruments through OCI
The Company recognises changes in the fair value of debt instruments held with business objective of collect and sell in other
comprehensive income. These changes are accumulated within the Debt instruments through Other Comprehensive Income within
equity. The Company transfers amounts from this reserve to the statement of profit and loss when the debt instrument is sold. Any
impairment loss on such instruments is reclassified immediately to the statement of profit and loss.
Retained earnings
Surplus in the statement of profit and loss are the profits that the Company has earned till date, less any transfers to general reserve,
dividends or other distributions paid to shareholders. Retained earnings include re-measurement gain/(loss) on defined benefit plans,
net of taxes that will not be reclassified to Statement of Profit and Loss. The amount is available for distribution to the shareholders.
a. Details of security of current borrowings other than current maturities of non-current borrowings for the year ended
31st March 2026
Cash credits (including fixed deposit overdraft secured by respective fixed deposits), buyers credit and working capital demand
loans are secured by first pari passu charge on all the present and future current assets of the Company, first pari passu charge
on all the present and future moveable property, plant and equipments (excluding those which are under exclusive hypothecated
with other banks/financial institutions) of the Company, first pari passu charge by way of mortgage of land and building located
at 15th Km Stone, Gurgaon Jhajjar Road, Village Dadri Toe, Distt: Jhajjar (Haryana) in the name of the Company.
Terms of repayment and interest rate for the year ended 31st March 2026
Working capital demand loans from banks amounting to ' 36,573.83 Lakh, carrying interest rate at 6.50% to 9.00% p.a. are
repayable over a maximum period of 90 days
Buyers credits from banks amounting to ' 38,716.32 Lakh carrying interest rate SOFR 0.29 to SOFR 0.45 are repayable over a
maximum period of 180 days
Cash credit amounting to ' 21,046.52 lakh carrying interest rate at 7.35% to 8.60% p.a. are repayable on demand.
b. Details of security of current borrowings other than current maturities of non-current borrowings for the year ended
31st March 2025
Cash credits (including fixed deposit overdraft and debt instruments overdraft), buyers credit and working capital demand loans
are secured by first pari passu charge on all the present and future current assets of the Company, first pari passu charge on
all the present and future moveable fixed assets (excluding those which are under exclusive hypothecated with other Banks/
Financial institutions) of the Company, first pari passu charge by way of mortgage of land and building located at Plot No. C-1,
Phase-II, Focal Point, Rajpura, Punjab and 15th Km Stone, Gurgaon Jhajjar Road, Village Dadri Toe, Distt: Jhajjar (Haryana) in the
name of the Company.
(i) During the year ended 31st March 2021, the Company had entered into second amendment to share purchase agreement dated
17th September 2020 for settlement of the deferred consideration and acquisition of remaining stake in Sidwal Refrigeration
Industries Private Limited. Consequently, the Company has extinguished the deferred consideration liability of ' 263.09 Lakh and
recognised the gain on settlement of deferred consideration in statement of profit and loss as per the terms of said agreement
and ' 50.44 Lakh was still outstanding as at 31st March 2024. The Company has re-assesed and recognised additional ' 34.38
Lakh during the year ended on 31st March 2025. During the year ended 31st March 2026, deferred consideration of '. 84.82 Lakh
has been settled as per term of the said agreement.
(ii) Derivative instruments at fair value through profit or loss reflect the negative change in fair value of those foreign exchange
forward contracts that are not designated in hedge relationships, but are, nevertheless, intended to reduce the level of foreign
currency risk for expected sales and purchases.
(iii) Considering the emerging practices on disclosures of trade credits and recent amendments to Ind AS, the Company has
reassessed its presentation of amounts covered under supplier finance arrangements. Accordingly, short term acceptances in
the nature of trade credits of ' 60,162.02 Lakh as on 31s March 2025 which are within the normal working capital cycle of the
Company have now been reclassed from 'Trade payables' and have been disclosed as 'Other financial liabilities'.
(i) Includes amount paid under protest ' 5.35 Lakh (31st March 2025 : ' 18.39 Lakh).
(ii) Includes amount paid under protest ' 407.09 Lakh (31st March 2025 : ' 168.17 Lakh).
(iii) Includes amount paid under protest ' 36.47 Lakh (31st March 2025 : ' 36.47 Lakh).
(iv) The Payment of Bonus (Amendment) Act, 2015 dated 31st December 2015 (which was made effective from 01st April 2014)
revised the thresholds for coverage of employee eligible for Bonus and also enhanced the ceiling limits for computation of bonus.
However, taking cognizance of the stay granted by various High Courts, the Company has not recognised any differential amount
of bonus for the period 01st April 2014 to 31st March 2015 and accordingly has recognised the expense as per the amended
provisions w.e.f. 01st April 2015 and onwards.
# The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. Based on
discussions with the solicitors/favourable decisions in similar cases/legal opinions taken by the Company, the management
does not expect these claims to succeed and hence, no provision there against is considered necessary.
* includes net amount of possible contingency evaluated by the management (including for SCN received for which demand has
not yet been received as at the balance sheet date).
** Corporate guarantee given against the leasehold land (valued at ' 286.00 lakh) held by the Compnay located at Survey no 391,
392,393,394 and 395 situated at Sricity, Andhra Pradesh.
Terms and conditions of transactions with related parties
The transactions of sale and purchases with related parties are made on terms equivalent to those prevailing in arm's length
transactions. The outstanding balances at the year end of trading activities are generally unsecured. Interest is charged as per terms
of the contract with the related parties which is at arm's length. The net outstanding balances are settled generally in cash.
There have been no guarantees provided or received for any related party receivables or payables.
For the year ended 31st March 2026, the Company has not recorded any impairment of receivables relating to amounts owed by
related parties (31st March 2025: ' Nil). This assessment is undertake each financial year through examining the financial position of
related party and the market in which the related party operates.
* The above disclosed balances of corporate guarantee given include original sanctioned limits of working capital facilities and term
loans by the continuing banks.
The Taxation Laws (Amendment) Act, 2019 has amended the Income-tax Act, 1961 to provide an option to the Company to pay
Income-tax at concessional rate of 22% plus applicable surcharge and cess, subject to certain specified conditions, as compared to the
present rate of 30% plus applicable surcharge and cess for the assessment year 2020-21 onwards. The Company expects to avail the
lower tax rate from a later financial year and accordingly remeasured deferred tax at such concessional rate, only to the extent that
the deferred tax assets are expected to be realised or deferred tax liabilities are expected to be settled in the periods during which the
Company expects to be subject to lower tax rate.
Unused tax credits
MAT credit
The Company had unused MAT credit amounting to ' 5,255.10 Lakh as at 31st March 2026 (31st March 2025: ' 4,193.70 Lakh). MAT
paid can be carried forward for a period of 15 years and can be set off against the future tax liabilities. MAT is recognised as a deferred
tax asset only when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset
will be realised.
Capital losses
During the year ended 31st March 2021, the Company has not recognised the deferred tax of ' 67.88 Lakh on unused long term capital
losses under the head Capital Gains as the Company is not likely to generate taxable income under the same head in foreseeable
future. These losses will expire in financial year ending 31st March 2029.
Notes:
(i) There is no significant change (25% or more) in Financial Year 2025-26 in comparison to Financial Year 2024-25.
(ii) The decrease in ratio is primarily attributable to the increase in cost of marerial consumed and finance cost during Financial Year
2025-26 in comparison to Financial Year 2024-25.
(iii) The decrease in ratio is primarily attributable to increase in inventory as on 31 March 2026 in comparison to inventory as on
31 March 2025.
(iv) The increase in ratio is primarily attributable to increase in revenue from operation during Financial Year 2025-26 in comparison
to Financial Year 2024-25.
5o|LEASES
Company as a lessee
The Company has leases for office premises, factory lands and related facilities. With the exception of short-term leases, each lease
is reflected on the balance sheet as a right-of-use asset and a lease liability. The Company classifies its right-of-use assets in a
consistent manner to its property, plant and equipment.
Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to another
party, the right-of-use asset can only be used by the Company.
The Company also has certain leases of machinery with lease terms of 12 months or less and leases of office equipment with low
value. The Company applies the 'short-term lease' and 'lease of low-value assets' recognition exemptions for these leases.
(iv) The Company had total cash outflows for leases of ' 4,331.40 Lakh in the year ended 31st March 2026 (31st March 2025:
' 2,729.84 Lakh). The Company also had non-cash additions to right-of-use assets and lease liabilities of ' 24,795.39 Lakh in
the year ended 31st March 2026 (31st March 2025: ' 3,635.95 Lakh).
(v) The Company has several lease contracts that include extension and termination options. These options are negotiated by
management to provide flexibility in managing the leased-asset portfolio and align with the Company's business needs.
Management exercises significant judgement in determining whether these extension and termination options are reasonably
certain to be exercised (see note 2).
5l| EMPLOYEE BENEFIT OBLIGATIONS
A Contribution to Defined Contribution Plans
The Company has defined contribution plans. Contributions are made to provident fund in India for employees as per regulations.
The contributions are made to registered provident fund administered by the government. The obligation of the Company is
limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised
during the year towards defined contribution plan is as under:
A Disclosure of gratuity
(i) The Company has a defined benefit gratuity plan (funded). The Company's defined benefit gratuity plan is a final salary plan for
employees, which requires contributions to be made to a separately administered fund. Gratuity is computed as 15 days salary,
for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation.
The Gratuity plan is governed by the Payment of Gratuity Act, 1972 (“the Act"). Under the act, employee who has completed
five years of service is entitled to specific benefit. The level of benefits provided depends on the member's length of service
and salary at retirement/termination/resignation. The Gratuity plan for the Company is a defined benefit scheme where annual
contributions as demanded by the insurer are deposited to provide gratuity benefits. The Company has taken an insurance policy,
whereby these contributions are transferred to the insurer. The Company makes provision of such gratuity asset/liability in the
books of account on the basis of actuarial valuation carried out by an independent actuary.
The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit
obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity
analyses are based on a change in a significant assumption, keeping all other assumptions constant. The sensitivity analyses
may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions
would occur in isolation from one another.
~| FAIR VALUE DISCLOSURES
i) Fair values hierarchy
Financial assets and financial liabilities measured at fair value in the financial statement are divided into three Levels of a fair
value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within lever 1 that are observable for assets or liabilities, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
Level 3: Inputs from the assets or liabilities that are not based on orservable market data (unobservable inputs)
ii) Financial instruments measured at fair value - recurring fair value measurements
The following table provides the fair value measurement hierarchy of company's financial assets and financial liabilities measured
at fair value on a recurring basis.
A. Valuation process and technique used to determine fair value
(a) In order to arrive at the fair value of derivative liability, the Company obtained fair value of options using monte carlo
simulation method with the assistance of valuation expert.
(b) The fair value of investments in quoted debt instruments is based on the current bid price of respective investment as at
the balance sheet date.
(c) The fair value of investments in unquoted equity shares is based on the discounted future cash flows of respective
investment.
(d) The fair value of foreign exchange forward contracts is based on valuation techniques, which employs the use of market
inputs of pricing of forward contracts as at the balance sheet date.
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for
various financial instruments, for example by granting loans and receivables to customers, placing deposits, etc. The Company's
maximum exposure to credit risk is limited to the carrying amount of following types of financial assets.
- cash and cash equivalents,
- trade receivables,
- loans and receivables carried at amortised cost,
- deposits with banks, and
- investment in perpetual debt instruments
The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of
customers and other counterparties, identified either individually or by the Company, and incorporates this information into
its credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics.
The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and
factors specific to the class of financial assets.
A: Low
B: Medium
C: High
Assets under credit risk -
Cash and cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and
diversifying bank deposits and accounts in different banks.
Trade receivables
The Company closely monitors the credit-worthiness of the debtors through internal systems that are configured to define
credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Company assesses increase in
credit risk on an ongoing basis for amounts receivable that become past due.
Other financial assets measured at amortised cost
Other financial assets measured at amortised cost includes loans and advances to employees, security deposits and
others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts
continuously, while at the same time internal control system in place ensure the amounts are within defined limits.
Investment in perpetual debt instruments
For Investments in perpetual debt instruments, counterparty risk are in place to limit the amount of credit exposure to any
one counterparty. This results in diversification of credit risk for Company's investments in perpetual debt instruments.
b) Expected credit losses
Trade receivables
(i) The Company recognises lifetime expected credit losses on trade receivables using a simplified approach and uses historical
information to arrive at loss percentage relevant to each category of trade receivables.
The Company provides for expected credit losses on loans and advances by assessing individual financial instruments for
expectation of any credit losses. Since this category includes loans and receivables of varied natures and purpose, there is no
trend that the Company can draws to apply consistently to entire population For such financial assets, the Company's policy is
to provides for 12 month expected credit losses upon initial recognition and provides for lifetime expected credit losses upon
significant increase in credit risk. The Company does not have any expected loss based impairment recognised on such assets
considering their low credit risk nature, though incurred loss provisions are disclosed under each sub-category of such financial
assets.
B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business,
the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling
forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company
takes into account the liquidity of the market in which the entity operates. In addition, the Company's liquidity management
policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these,
monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing
plans.
b) Maturities of financial liabilities
The tables below analyse the Company's financial liabilities into relevant maturity based on their contractual maturities for all
non-derivative financial liabilities.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their
carrying balances as the impact of discounting is not significant.
C) Market risk
a) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the
Company's operating activities (when revenue or expense is denominated in a foreign currency).
(i) The Company uses foreign currency forward exchange contracts to hedge its risks associated with fluctuations in foreign
currencies relating to foreign currency liabilities. The following are outstanding derivatives contracts:
b) Interest rate risk
(i) Liabilities
The Company's policy is to minimise interest rate cash flow risk exposures on long-term financing. At 31st March 2026, the
Company is exposed to changes in market interest rates through bank borrowings at variable interest rates. The Company's
investments in fixed deposits, all pay fixed interest rates.
Interest rate risk exposure
(ii) Assets
The Company's bank deposits are carried at amortised cost and are fixed rate deposits. They are therefore not subject to interest
rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change
in market interest rates.
The Company's investments in perpetual debt instruments are carried at fair value through other comprehensive income and are
fixed rate investments. They are therefore not subject to interest rate risk as defined in Ind AS 107.
The Company has advanced loans at variable interest rates. The loans are therefore subject to interest rate risk as defined in Ind
AS 107.
c) Price risk
Exposure
The Company's exposure to price risk arises from investments held and classified in the balance sheet either at fair value through
other comprehensive income or at fair value through profit and loss. To manage the price risk arising from investments, the
Company diversifies its portfolio of assets.
~| CAPITAL MANAGEMENT
For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other
equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to
maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using a debt equity ratio, which is total borrowing
divided by total equity.
~| SEGMENT INFORMATION
The Company's primary business segment is reflected based on principal business activities carried on by the Company. Chairman and
Managing Director have been identified as the Chief Operating Decision Makers ('CODM') and evaluates the Company's performance
and allocates resources based on analysis of the various performance indicators of the Company as a single unit. Therefore, there
are no separate reportable business segments as per Ind AS 108- Operating Segments. The Company operates in one reportable
business segment i.e., manufacturing of consumer durable products and is primarily operating in India and hence, considered as single
geographical segment (refer note 58 for revenue by geography). Majority of the revenue is derived from one geography and three
external customers (who individually constitutes more than 10% of the Company's total revenue) amounting to ' 3,36,526.34 Lakh
(31st March 2025: ' 3,19,583.35 Lakh from four external customers who individually constitutes more than 10% of the Company's
total revenue).
~| REVENUE FROM CONTRACTS WITH CUSTOMERS
Indian Accounting Standard 115 revenue from contracts with customers, establishes a framework for determining whether, how
much and when revenue is recognised and requires disclosures about the nature, amount, timing and uncertainty of revenues and
cash flows arising from customer contracts. Under Ind AS 115, revenue is recognised through a 5-step approach:
(i) Identifying the contract with a customer
(ii) Identifying the performance obligations
(iii) Determining the transaction price
(iv) Allocating the transaction price to the performance obligations
(v) Recognising revenue when/as performance obligation(s) are satisfied.
~| SHARE BASED PAYMENTS
(i) Share based payments
(a) Scheme details
The Company has Employee Stock Option Scheme i.e. “Amber Enterprises India Limited - Employee Stock Option Plan 2017“
("Plan"), under which the Nomination and Remuneration Committee, at its discretion, may grant share options of the Company
to eligible employees of the Company or to the employees of any of its subsidiary company. Under this plan, the options shall
vest not earlier than 1 (One) year and not later than maximum Vesting Period of 5 (Five) years from the date of Grant. Vesting of
Options would be subject to continued employment with the Company, including with the Subsidiaries, as the case may be, and
thus the Options would vest essentially on passage of time.
(ii) Share based payments
(a) Scheme details
The Subsidiary Company has Employee Stock Option Scheme i.e. “IL JIN Employee Stock Option Plan 2025" (“Plan"), under which
the Nomination and Remuneration Committee, at its discretion, may grant share options of the Company to eligible employees
of the Company or to the employees of any of its Holding Company and Subsidiary Company. Under this plan, the options shall
vest not earlier than 1 (One) year and not later than maximum Vesting Period of 6 (Six) years from the date of Grant. Vesting of
Options would be subject to continued employment with the Company, including with the Holding Company and Subsidiaries, as
the case may be, and thus the Options would vest essentially on passage of time.
(c) Fair value on the grant date
The fair value at grant date is determined using “Black Scholes Pricing Model" which takes into account the exercise price, term
of the option, share price at grant date and expected price volatility of the underlying shares, expected dividend yield and the risk
free interest rate for the term of the option.
The following inputs were used to determine the fair value for options granted on 18th October 2025 and 19th February 2026:
A The weighted average remaining contractual life of the share options outstanding at the end of year is 5.16 years (31st March
2025: Nil)
# The weighted average fair value of share options outstanding at the end of year is ' 947.99 per share option (31st March 2025:
Nil)
6o| ADDITIONAL REGULATORY INFORMATION
(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 the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
(ii) The Company has not entered into any transactions with the companies struck off under section 248 of Companies Act, 2013 or
section 560 of Companies Act, 1956 for the year ended 31 March 2026 and 31 March 2025.
(iii) The Company has following charges or satisfaction which is yet to be registered with ROC beyond the statutory period:
(v) The Company has not received any fund from any person or entity, including foreign entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vi) The Company does not have any 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 traded or invested in crypto currency or virtual currency during the current or previous financial year.
(viii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
6l| BUSINESS COMBINATIONS OF ENTITIES UNDER COMMON CONTROL
The Company acquired part of the business of AmberPR Technoplast India Private Limited ('AmberPR') under business transfer
agreement dated 30th September 2024 through a slump sale on a going concern basis for a lump sum purchase consideration of
' 1,867.74 Lakh with an effective date for the transfer set for 01st October 2024.
The slump sale had been identified as business combinations of entities under common control and accordingly the Company
has applied principles prescribed under Appendix C to Ind-AS 103 - 'Business Combinations. As per Appendix C, the Company had
recorded all the assets and liabilities of acquired business of AmberPR at the carrying values as appearing in the consolidated financial
statements of the Company from the beginning of the earliest period presented irrespective of actual date of the combination i.e. as at
01st April 2023 using “Pooling of Interest Method" The inter-company balances between the Company and the AmberPR, appearing
in the books of the Company have been eliminated.
The deficit arising after taking effect of the above have been transferred to retained earnings in the standalone financial statements
of the Company.
Details of net assets acquired are as follows as on 01st April 2023:
(ii) Since the slump sale had been accounted for in accordance with Appendix C to Ind-AS 103 - 'Business Combinations, the
Company cancelled the investment of AmberPR to the extent incremental assets and liabilities recorded of AmberPR appearing
in the consolidated financial statement of the Company, however there is no reduction in the number of shares held by the
Company in AmberPR.
(iii) This represents difference between net identified assets acquired and the purchase consideration as per Business transfer
agreement and cancelled investment of the Company in AmberPR. The deficit arising after taking effect of the above slump sale
have been transferred to retained earnings in the Standalone financial statements of the Company.
62| The Company has appointed independent consultants for conducting a transfer pricing study to determine whether the
international transactions with associate enterprises and specified domestic transactions were undertaken at “arm's length
basis". Adjustments, if any arising from the transfer pricing study shall be accounted for as and when the study is completed.
The management confirms that all international transactions with associate enterprises and specified domestic transactions
are undertaken at negotiated contracted prices on usual commercial terms. Transfer pricing certificate under Section 92E for the
year ending 31st March 2025 has been obtained and there are no adverse comments requiring adjustments in these accounts.
63| During the year ended 31st March 2026, the Company has issued and alloted 12,57,861 equity shares of face value of ' 10 each
to Qualified Institutionalal Buyer's at an issue price of ' 7,950 per equity share including a premium of ' 7,940 per equity share,
aggregating up to ' 99,995.95 Lakh (the 'Issue') in accordance with the provision of SEBI ICDR Regulations. The Company has
used the proceeds from the Issue for General Corporate purporse (include issue expenses of ' 1,323.21 Lakh) and repayment of
outstanding borrowings of the Company of as per the object of the Placement Document dated 22nd September 2025.
On 21st November 2025, the Government of India notified 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,
consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable
assessment of the financial impact due to changes in regulations. The Company has assessed and disclosed the incremental
impact of these changes on the basis of the best understanding of the new regulations. Considering the materiality and
regulatory-driven, non-recurring nature of this impact, the Company has presented such incremental impact consists of gratuity
and long-term compensated absences of ' 566.39 Lakh (gratuity and long-term compensated absences of ' 468.80 Lakh and
' 97.59 Lakh) as exceptional item for the year ended 31st March 2026. The Company continues to monitor the finalisation of
Central/State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate
accounting effect on the basis of such developments as needed.
65| The Company has used accounting software Microsoft D365 for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software,
except that audit trail feature is not enabled at the database level insofar as it relates to the accounting software. Further, no
instance of audit trail feature being tampered which was noted in respect of accounting software where the audit trail has been
enabled.
Additionally, the audit trail of prior years has been preserved by the Company as per the statutory requirements for record
retention to the extent it was enabled and recorded in the respective years.
66| In pursuant to the amendment in Companies (Accounts) Rules 2014, the Company is maintaining proper books of account and
other relevant books and papers in electronic mode which is accessible in India at all times. The books of account maintained
in electronic mode were not being backed-up on a daily basis on a server physically located in India, due to design limitation in
the of Microsoft D365 accounting software. During the year ended 31 March 2026, the aforesaid issue has been rectified and
accordingly, the books of accounts maintained in electronic made are now being backed-up on a daily basis on server physically
located in India.
67| Events after subsequent period
(i) The Company acquired remaining 50% equity stake in Amber Resojet on 10th April 2026, for an aggregate consideration of
' 174.45 Lakh and consequently, Amber Resojet became a subsidiary and ceased to be a joint venture of the Company w.e.f.
10th April 2026.
(ii) The Company filed the Scheme of Amalgamation (the “Scheme") between AmberPR (“Transferor Company") with and into the
Company (“Transferee Company"), pursuant to the provisions of Section 230 to 232 of the Companies Act, 2013 on 30th March
2026. The Company received an Order dated 17th April 2026, passed by the Hon'ble National Company Law Tribunal, Chandigarh
Bench, wherein the Hon'ble Tribunal directed submission of the Scheme with a revised “Appointed Date" from 01st April 2025 to
01st April 2026. The Merger & Amalgamation Committee of the Board of Directors of the Company has approved the change in
the “Appointed Date" of the Scheme from 01st April 2025 to 01st April 2026, in its meeting held on 30th April 2026. The revised
Scheme was filed on 06th May 2026.
|