(v) Provisions, contingent liabilities and
contingent assets
Provisions are recognised when the Company
has a present legal or constructive obligation as a
result of past events, it is probable that an outflow
of resources embodying economic benefit will be
required to settle the obligation and the amount
can be reliably estimated.
Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used
to determine the present value is a pre tax rate
that reflects current market assessments of the
time value of money and the risks specific to the
liability. The increase in the provision due to the
passage of time is recognised as finance cost.
Contingent Liabilities are disclosed in respect of
possible obligations that arise from past events
but their existence will be confirmed by the
occurrence or non occurrence of one or more
uncertain future events not wholly within the
control of the Company or where any present
obligation cannot be measured in terms of future
outflow of resources or where a reliable estimate
of the obligation cannot be made.
A contingent asset is disclosed, where an inflow
of economic benefits is probable. An entity shall
not recognize a contingent asset unless the
recovery is virtually certain.
(l) Revenue Recognition
Revenue from operations is recognised to the extent that it is
probable that economic benefit will flow to the Company and
the revenue can be reliably measured regardless of when the
payment is being made as per IND AS 115.
Revenue from contracts with customers is recognised when
the control/title of the goods or services are transferred to
the customer at an amount of transaction price allocated to
that performance obligation that reflects the consideration
to which the Company expects to be entitled in exchange
for those goods or services excluding government duties
collected on behalf of the Government. In determining the
transaction price of goods sold and services rendered, the
Company excludes the effect of any variable consideration
on account of various discounts and schemes offered by the
Company as a part of the Contract.
I t is the Company's policy to sell its products to the end
customers with the right of return of 7 days. Historical
experience is used to estimate and provide for such returns
at the time of sale.
The Company has generally concluded that it is the principal
in its revenue arrangements, except for the agency services
below, because it typically controls the goods or services
before transferring them to the customer.
Principal versus agent consideration
The inventory of third party does not pass to the Company
till the product is sold. At the time of sale of such inventory,
the sales value along with the cost of inventory is disclosed
separately as sale of goods on approval basis and cost of
goods sold on approval basis and forms part of Revenue
in the Statement of Profit and Loss. Only the net revenue
earned i.e. margin is recorded as a part of revenue.
Rental income
Rental income arising from operating lease on investment
properties is accounted for on a straight line basis over
lease terms unless the receipts are structured to increase
in line with expected general inflation to compensate for the
expected inflationary cost increases and is included in the
Statement of profit and loss due to its operating nature.
Interest income
Interest income is recognised based on time proportion basis
considering the amount outstanding and rate applicable
(EIR). Interest income in included in the Other Income in the
statement of Profit and Loss.
(m) Retirement and other employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the period
in which the employees render the related service are
recognised in respect of employees' services up to the
end of the reporting period and are measured at the
amounts expected to be paid when the liabilities are
settled.
Retirement benefit in the form of provident fund is
a defined contribution plan. 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 services. 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 prepayment will lead to a
reduction in future payment or a cash refund.
ii) Other long-term employee benefit obligations
The liabilities for earned leave and sick leave that are
not expected to be settled wholly within 12 months
are measured at the present value of expected future
payments to be made in respect of services provided
by employees up to the end of the reporting period
using the projected unit credit method. The benefits are
discounted using the Government Securities (G-Sec)
at the end of the reporting period that have terms
approximating to the terms of the related obligation.
Remeasurements as a result of experience adjustments
and changes in actuarial assumptions are recognised
in the Statement of Profit and Loss.
The obligations are presented as current liabilities
in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least
twelve months after the reporting period, regardless of
when the actual settlement is expected to occur.
iii) Post-employment obligations
Defined benefit plans
Gratuity
The liability or asset recognised in the balance sheet
in respect of defined benefit gratuity plans is the
present value of the defined benefit obligation at the
end of the reporting period less the fair value of plan
assets. The defined benefit obligation is calculated
annually by independent actuary using the projected
unit credit method. The present value of the defined
benefit obligation denominated in INR is determined
by discounting the estimated future cash outflows by
reference to market yields at the end of the reporting
period on government bonds that have terms
approximating to the terms of the related obligation.
The net interest cost is calculated by applying the
discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is
included in employee benefit expense in the Statement
of Profit and Loss. Remeasurement gains and losses
arising from experience adjustments and changes in
actuarial assumptions are recognised in the period
in which they occur, directly in other comprehensive
income. They are included in retained earnings in the
statement of changes in equity and in the balance
sheet. Changes in the present value of the defined
benefit obligation resulting from plan amendments
or curtailments are recognised immediately in the
Statement of profit and loss as past service cost.
Share based payment
Equity settled share based payments to employees
and other providing similar services are measured at
fair value of the equity instruments at grant date.
The fair value determined at the grant date of the
equity-settled share based payment is expensed on a
straight line basis over the vesting period, based on
the Company's estimate of equity instruments that will
eventually vest, with a corresponding increase in equity.
At the end of each reporting period , the Company
revises its estimates of the number of equity instruments
expected to vest. The impact of the revision of the
original estimates, if any is, recongised in Statement
of Profit and Loss such that the cumulative expenses
reflects the revised estimate, with a corresponding
adjustment to the shared option outstanding account.
No expense is recognised for options that do not
ultimately vest because non market performance and/
or service conditions have not been met.
The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.
Expense relating to options granted to employees of
the subsidiaries under the Company's share based
payment plan, is recovered from the subsidiaries. Such
recovery is reduced from employee benefit expense.
(n) Foreign currency transactions
(a) Functional and presentation currency:
Items included in the financial statements of the
Company are measured using the currency of the
primary economic environment in which the entity
operates. The standalone financial statements are
presented in INR, which is functional and presentational
currency.
(b) Transaction and balances:
Transaction in currencies other than entity's functional
currency (foreign currencies) are recognised at the rates
of exchange prevailing at the dates of the transaction.
Exchange differences arising on settlement or
translation of monetary items are recognised in the
Statement of Profit and Loss.
Non monetary items carried at fair value that are
denominated in foreign currencies are retranslated at
the rates prevailing at the date when the fair value was
determined. Non-monetary items that are measured
in terms of historical cost in a foreign currency are
translated using the exchange rate at the date of the
transaction. The gain or loss arising on translation of
non-monetary items measured at fair value is treated
in line with the recognition of the gain or loss on
the change in fair value of the item. (i.e., translation
differences on items whose fair value gain or loss is
recognised in OCI or profit or loss are also recognised
in OCI or profit or loss, respectively).
(o) Income tax
a) Current Tax
Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that enacted
or substantively enacted, at the reporting date in the
countries where The Company operates and generates
taxable income.
b) Deferred tax
Deferred income tax is provided using the liability
method on temporary differences arising between the
tax bases of assets and liabilities and their carrying
amount for financial reporting purpose at the reporting
date. Deferred tax assets and liabilities are determined
using tax rates (and laws) that have been enacted or
substantially enacted by the end of the reporting period
and are expected to apply when the asset is realised or
the liability is settled.
Deferred tax liabilities are recognised for all taxable
temporary differences, except:
i. When the deferred tax liability arises from the
initial recognition of goodwill or an asset or liability
in a transaction that is not a business combination
and, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss and
does not give rise to equal taxable and deductible
temporary differences.
ii. In respect of taxable temporary differences
associated with investments in subsidiaries,
when the timing of the reversal of the temporary
differences can be controlled and it is probable
that the temporary differences will not reverse in
the foreseeable future.
Deferred tax assets are recognised for all
deductible temporary differences, the carry
forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised to the
extent that it is probable that taxable profit will be
available against which the deductible temporary
differences, and the carry forward of unused tax
credits and unused tax losses can be utilised,
except:
i. When the deferred tax asset relating to the
deductible temporary difference arises from
the initial recognition of an asset or liability
in a transaction that is not a business
combination and, at the time of the
transaction, affects neither the accounting
profit nor taxable profit or loss and does not
give rise to equal taxable and deductible
temporary differences.
ii. In respect of deductible temporary
differences associated with investments
in subsidiaries, deferred tax assets are
recognised only to the extent that it is
probable that the temporary differences will
reverse in the foreseeable future and taxable
profit will be available against which the
temporary differences can be utilised.
Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred
tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are off set
where the Company has a legally enforceable
right to offset and intends either to settle on a net
basis, or to realize the asset and settle the liability
simultaneously.
Current and deferred tax is recognised in the
Statement of Profit and Loss, except to the
extent that it relates to items recognised in other
comprehensive income or directly in equity.
In this case, the tax is also recognised in other
comprehensive income or directly in equity,
respectively.
(p) Earnings Per Share
Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to equity shareholder of the
Company
- by the weighted average number of equity shares
outstanding during the financial year
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to take into
account:
- the after income tax effect of interest and other
financing costs associated with dilutive potential equity
shares, and
- the weighted average number of additional equity
shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.
(q) Fair value measurement
The Company measures financial instrument at fair value at
each Balance sheet date.
Fair value is the price that would be received to sell assets
or paid to transfer a liability in an orderly transaction between
market participant at the measurement date.
The fair values of the financial assets and liabilities are
included at the amount at which the instrument could be
exchanged in a current transaction between willing parties,
other than in a forced or liquidation sale.
The following methods and assumptions were used to
estimate the fair values:
1. Fair value of cash and deposits, trade and other
receivables, trade payables and other current liabilities,
approximate their carrying amounts largely due to short
term maturities of these instruments.
2. The fair values of non-current borrowings are based
on discounted cash flows using a current borrowing
rate. They are classified as level 3 fair values in the fair
value hierarchy due to the use of unobservable inputs,
including own credit risk.
3. For financial assets and liabilities that are measured at
fair value, the carrying amounts are equal to the fair
values.
The Company uses the following hierarchy for
determining and disclosing the fair value of financial
instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets
for identical assets or liabilities.
Level 2: other techniques for which all inputs which
have a significant effect on the recorded fair value are
observable, either directly or indirectly.
Level 3: techniques which use inputs that have a
significant effect on the recorded fair value that are not
based on observable market data.
(r) Significant accounting judgement, estimates and
assumption
The preparation of standalone financial statements requires
the use of accounting estimates which by definition will
seldom equal the actual results. Management also need to
exercise judgement in applying the Company's accounting
policies.
Share based payment
The Company initially measures the cost of equity settled
transaction with employees using Black Scholes model to
determine the fair value of the liability incurred. Estimating
fair value for share-based payment transaction requires
determination of the most appropriate valuation model,
which is dependent on the terms and conditions of the
grant. The estimates also requires determination of the most
appropriate inputs to the valuation model including expected
life of the share option, volatility and dividend yield and
making assumptions about them. For equity settled share
based payment transaction, the liability needs to be re¬
measured at the end of each reporting period upto the date
of settlement, with any changes in fair value recognised in the
Statement of Profit and Loss. This requires a re-assessment
of the estimates used at end of each reporting period. The
assumption and models used for estimating the fair value
for share based-payment transaction are disclosed in
note no. 43.
Provision for inventory
The Company has calculated the provision for inventory basis
the percentage as per historical experience for inventory
lying from the last inventory count date to the reporting date.
An inventory provision is also recognised for cases where the
realisable value is estimated to be lower than the inventory
carrying value. The inventory provision is estimated taking
into account various factors, including prevailing sales prices
of inventory item, the seasonality of the item's sales profile
and losses associated with obsolete / slow-moving inventory
items.
Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and other post¬
employment medical benefits and the present value of the
gratuity obligation are determined using actuarial valuations.
An actuarial valuation involves making various assumptions
that may differ from actual developments in the future.
These include the determination of the discount rate, future
salary increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, a defined
benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting
date.
The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for plans
operated in India, the management considers the interest
rates of government bonds in currencies consistent with the
currencies of the post-employment benefit obligation.
The mortality rate is based on publicly available mortality
tables for the specific countries. 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.
Further details about gratuity obligations are given in note
no. 44.
(s) Segment reporting
Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker being Managing Director of the Company .
The Managing Director assesses the financial performance
and position of the Company as a whole, and makes
strategic decisions.
(t) Cash flow
The investing and financing activities in cash flow statement
do not have a direct impact on current cash flows although
they do affect the capital and asset structure of an entity. The
Company has disclosed these transactions, to the extent
material, in notes to cash flow statement.
The Company has no restrictions on the readability of its investment properties and no contractual obligations to purchase, construct
or develop investment properties or for repairs, maintenance and enhancements.
Estimation of fair value
The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum, area, location,
demand, restrictive entry to the complex, age of building and trend of fair market rent.
This valuation is based on valuations performed by a registered valuer as defined under rule 2 of Companies (Registered Valuers and
Valuation) Rules, 2017. Fair valuation is based on replacement cost method. The fair value measurement is categorized in level 2 fair
value hierarchy.
Terms and conditions of transactions with related parties:Sales and Purchase:
The sales and purchases with related parties are made in the ordinary course of business of the Company.
For the year ended 31st March, 2026, the Company has not recorded any impairment of receivables or write back of payables relating
to amounts outstanding of related parties.
Corporate Guarantee to subsidiary:
Corporate Guarantee given to the bank for providing security for the performance of the obligations and liabilities of the subsidiary.
All Related Party Transactions entered during the year other than mentioned above are also in ordinary course of the business.
Outstanding balances at the year-end are unsecured and settlement occurs in cash.
It is not practicable for the Company to estimate the timings of cash outflows , if any in respect of above pending resolutions of the
respective proceedings.
The Company has reviewed all its pending litigation and proceedings and has adequately provided for where provisions are required and
disclosed in contingent liabilities where applicable in it's standalone financial statements. The Company does not expect the outcome of
these proceedings to have a materially adverse effect on it's standalone financial statements.
The Company has process whereby periodically all long term contracts are assessed for material foreseeable losses. At the year end,
Company has reviewed and no material foreseeable losses on such long term contracts has been made in the books of accounts.
38 Segment reporting
The Company is into the business of retail in India which in the context of Indian Accounting Standards 108 - “Segment Information”
represents single reportable business segment. Information reported to The Chief Operating Decision Maker, for the purposes of
resource allocation and assessment of segment performance focuses on the types of products sold / business conducted. The
revenues, total expenses , net profit and the assets as per the financial statement represents the revenue, total expenses , net profit
and the assets of the sole reportable segment. No single customer represents 10% or more of the Company's total revenue for the
year ended 31st March, 2026 and 31st March, 2025.
39 The Company has not entered into any derivative transaction during the year. Unhedged foreign currency exposure at the end of
the year is NIL.
40 Earnings per share (EPS)
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number
of equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of Equity
shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all
the dilutive potential equity shares into equity shares.
41 (a) Capital risk 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 shareholders. The primary objective is to maximize the shareholders value.
The Company manages its capital structure and makes adjustments in light of changes in economic condition and the
requirements of the financial covenants.
The capital structure is governed by policies approved by the Board of Directors and is monitored by various matrices, also
funding requirements are reviewed periodically.
(b) Dividends
The Company has not paid any dividend since its incorporation.
42 FAIR VALUES AND FAIR VALUE HIERARCHY
The carrying amounts of trade receivables, cash and cash equivalents, bank balance other than cash and cash equivalents, other
financial assets, trade payables, capital creditors are considered to be same as their fair values, due to their short term nature.
The carrying value of borrowings, lease liabilities, deposits given and taken and other financial assets and liabilities are considered
to be reasonably same as their fair values.
Borrowing are classified as level 2 fair value hierarchy being inputs other than the quoted prices included within Level 1 that are
observable for the asset or liability, either directly or indirectly.
Lease liabilities , deposits given and taken and other financial assets and liabilities are classified as level 3 fair values in the fair value
hierarchy due to the inclusion of unobservable inputs including counter party credit risk.
43 SHARE-BASED PAYMENTS
(a) Employee stock option scheme, 2023
During the year ended 31st March, 2024, the Company had instituted an Avenue Supermarts Limited Employee Stock Option
Scheme, 2023 (“the Scheme”) as approved by the Board of Directors dated 15th July, 2023 for issuance of stock option to
eligible employee of the Company and of its subsidiaries.
Pursuant to Avenue Supermarts Limited Employee Stock Option Scheme, 2023 Stock options convertible into 13,62,250
equity shares of C 10/- each were granted to eligible employees at exercise price of C 3,350 - C 3,420. Out of the options
granted, 1,08,000 (31st March, 2025: 88,000) options lapsed as at 31st March, 2026.
(b) Employee stock option scheme, 2016
During the year ended 31st March, 2017, the Company had instituted an Avenue Supermarts Limited Employee Stock Option
Scheme, 2016 (“the Scheme”) as approved by the Board of Directors dated 23rd July, 2016 for issuance of stock option to eligible
employee of the Company and of its subsidiaries.
Pursuant to Avenue Supermarts Limited Employee Stock Option Scheme, 2016 Stock options convertible into 1,39,73,325 equity
shares of C 10/- each were granted to eligible employees at exercise price of C 299/-. Out of the options granted, 58,10,049
options lapsed (31st March, 2025: 55,57,008 ) and 81,63,276 options were vested (31st March, 2025: 66,50,367) as at 31st March,
2026. Against the vested options, 78,74,637 (31st March, 2025: 66,48,582) equity shares of C 10/- each were allotted pursuant to
exercise of options, and balance 1,785 (31st March, 2025: 1,785) options lapsed as at 31st March, 2026.
44 POST RETIREMENT BENEFIT PLAN
As per Indian Accounting Standard 19 “Employee benefits”, the disclosures as defined are given below:
Defined Benefit Plan
The Company operates a gratuity plan wherein every employees entitled to the benefit equivalent to fifteen days salary last drawn
for each year of service. The same is payable on termination of service or retirement whichever is earlier. The benefit vest after five
years of continuous service. The gratuity paid is governed by The Payment of Gratuity Act,1972. The Company contributes to the
fund based on actuarial report details of which is available in the table of investment pattern of plan asset, based on which the
Company is not exposed to market risk. The following table summarises the component of net benefit expenses recognised in the
statement of profit and loss and the funded status and amounts recognised in the balance sheet for respective period.
There has been no change from the previous year in the method and assumptions used in preparing the sensitivity analysis.
These plans typically exposed the Company to actuarial risks such as Interest risk, salary risk, investment risk, asset liability
matching risk and mortality risk.
Gratuity is a defined benefit plan and Company is exposed to the following risks:
Interest rate risk: A fall in the discount rate which is linked to the G.Sec. rate will increase the present value of the liability requiring
higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of
asset.
Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As
such, an increase in the salary of the members more than assumed level will increase the plan's liability.
Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it
will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and
other debt instruments.
Asset liability matching risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of rule
101 of Income Tax Rules, 1962, this generally reduces ALM risk.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have
any longevity risk.
Concentration risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will
wipe out all the assets . Although probability of this is very low as insurance companies have to follow stringent regulatory guidelines
which mitigate risk.
45 FINANCIAL RISK MANAGEMENT
Financial risk management objectives and policies
The Company's financial principal liabilities comprises lease liabilities, trade payables and other payables. The main purpose of these
financial liabilities to finance the Company operation. The Company's main financial assets includes trade and other receivable, cash and
cash equivalent, other bank balances derived from its operations.
In addition to risks inherent to our operations, we are exposed to certain market risks including change in interest rates and fluctuation
in currency exchange rates.
A) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivable) and from its financial activities
including deposits with banks and financial institution.
Credit risk from balances with banks is managed by the Company's treasury department in accordance with Company's policy.
The Company operates on business model of primarily cash and carry along with sales to subsidiaries and credit risk from receivable
perspective is not significant.
B) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price.
Processes and policies related to such risk are overseen by senior management. Management monitors the Company's net liquidity
position through rolling forecasts on the basis of expected cash flows.
49 Other Statutory Information
(i) No proceedings have been initiated or are pending against the company for holding any Benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder.
(ii) Relationship with Struck off Companies:
The Company does not have any transactions with struck off Companies during the year ended 31st March, 2026 and
31st March, 2025.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrars of Companies beyond
the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries”
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961).
(viii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets during
the year ended 31st March, 2026.
(ix) The company has not provided loans, advances in the nature of loans, stood guarantee (other than corporate guarantee &
loan granted to subsidiary as disclosed in note 32) or provided security to companies, firms, limited liability partnerships.
(x) The Company has not defaulted in repayment of loans, or other borrowings or payment of interest thereon to any lender.
(xi) The Company has not been declared wilful defaulter by any bank, financial institution, government or government authority.
(xii) The quarterly returns/statements filed by the company with the banks are in agreement with the books of accounts of the
company.
50 NEW AND AMENDED STANDARDS
The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or
after 1st April, 2025. The Company has not early adopted any standard, interpretation or amendment that has been issued but is
not yet effective.
(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 application of the amendment has no impact on the company 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.
I f 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 have not had an impact on the classification of Company's liabilities.
(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 amendments had no impact on the standalone financial statements of the Company as it did not have Supplier Finance
Arrangements in scope of Ind AS 7 as at the reporting date.
(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.
51 STANDARDS NOTIFIED BUT NOT 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.
52 EVENTS AFTER THE REPORTING PERIOD
The Company has evaluated subsequent events from the balance sheet date through 2nd May, 2026, the date at which the
standalone financial statements were available to be issued, and determined that there are no material items to disclose other than
those disclosed above.
53 The Government of India has consolidated 29 existing labour legislations into a united framework comprising four Labour Code
viz Code on wages 2019, Code on Social Security 2020, Industrial Relation Code 2020, and Occupational Safety, Health and
Working Condition Code 2020 (collectively referred to as the New Labour Codes). These Codes have been made effective from
21st November, 2025. The corresponding supporting rules under these codes are yet to be notified.
Company has estimated and accounted for incremental liability for own employees which is not material to the standalone financial
statements.
Once the Government notifies the Central and State Rules, the Company will evaluate the impact on the measurement of employee
benefits and provide the appropriate accounting treatment, if any.
54 The Company has used accounting software for maintaining its books of account including privileged access management
tool 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. Further, there are no instance of audit trail feature being tampered with. Additionally, the audit
trail has been preserved by the Company as per the statutory requirements for record retention.
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