(xxiv) Provisions, Contingent Liabilities and Contingent Assets:
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the
reporting period, taking into account the risks and uncertainties surrounding the obligation. Provisions are determined by discounting
the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance
sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
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. The unwinding of the
discount is recognised as finance cost. Expected future operating losses are not provided for. A contingent liability is a possible obli¬
gation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an out¬
flow of resources will be required to settle the obligation or a reliable estimate of amount cannot be made. Contingent liabilities may
arise from litigation, taxation and other claims against the Company. The contingent liabilities are disclosed where it is management’s
assessment that the outcome of any litigation and other claims against the Company is uncertain or cannot be reliably quantified,
unless the likelihood of an adverse outcome is remote. Contingent assets are not recognised but are disclosed in the notes where an
inflow of economic benefits is probable.
(xxv) Impairment of non-financial assets:
At each Balance Sheet date, the Company assesses whether there is any indication that an asset, including property, plant and equip¬
ment and intangible assets, may be impaired. If any such indication exists, the Company estimates the recoverable amount of the
asset. In case of intangible assets under development impairment test is done annually.
An impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is the
higher of an asset’s fair value less costs of disposal and its value in use. Where it is not possible to estimate the recoverable amount
of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Value in use is determined by discounting the estimated future cash flows expected to arise from the continuing use of the asset and
its ultimate disposal to their present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. Where future cash flows are estimated in a foreign currency, they are discounted using a
discount rate appropriate for that currency and translated using the exchange rate at the measurement date.
(xxvi) Commitments
Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:
a) estimated amount of contracts remaining to be executed on capital account and not provided for;
b) uncalled liability on shares and other investments partly paid;
c) funding related commitment to subsidiary, associate and joint venture companies; and
d) Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of
management.
Other commitments related to sales/procurements made in the normal course of business are not disclosed to avoid excessive
details.
(xxvii) Earnings per share:
Basic earnings per equity share is computed by dividing the net profit/(loss) attributable to the equity holders of the Company by the
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the net profit/(Loss) attributable to the equity holders of the Company by the weighted average number of equity shares considered
for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had
the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential
equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are
determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted
retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the ap¬
proval of the standalone financial statements by the Board of Directors.
(xxviii) Dividend distribution to equity shareholders of the Company:
The Company recognises a liability to make dividend distributions to its equity holders when the distribution is authorised, and the
distribution is no longer at its discretion. A corresponding amount is recognised directly in equity.
(xxix) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non¬
cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated
with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated.
(xxx) Investments in subsidiaries, associates and joint ventures:
Investments in Subsidiaries, Associates and Joint Ventures are carried at cost less accumulated impairment losses, if any. Where an
indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable
amount. On disposal of investments in subsidiaries, associates and joint venture, the difference between net disposal proceeds and the
carrying amounts are recognised in the Statement of Profit and Loss.
(xxxi) 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, which are subject to an insignificant risk of changes in value.
(xxxii) Discontinued Operations and non-current assets held for sale
Discontinued operation is a component of the Group that has been disposed of or classified as held for sale and represents a ma¬
jor line of business. Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be
recovered principally through a sale (rather than through continuing use) when the asset (or disposal group) is available for immedi¬
ate sale in its present condition subject only to terms that are usual and customary for sale of such asset (or disposal group) and the
sale is highly probable and is expected to qualify for recognition as a completed sale within one year from the date of classification.
Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount and fair value less
costs to sell.
(xxxiii) Exceptional items:
Exceptional items refer to items of income or expense, within the statement of profit and loss from ordinary activities which are
non-recurring and are of such size, nature or incidence that their separate disclosure is considered necessary to explain the perfor¬
mance of the company.
2.3 Use of estimates and judgements:
The preparation of the Company’s financial statements requires management to make judgments, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures including contingent liabilities.
The estimates and associated assumptions are based on experience and other factors that management considers to be relevant. Actual
results may significantly differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis by
the management of the Company. Revisions to accounting estimates are recognised in the period in which the estimate is revised if
the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future
periods. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying
Key Sources of Estimation uncertainty:
The key assumptions concerning the future and other key sources of estimation uncertainty and judgements 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. Existing circumstances and assumptions about future developments 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.
Useful lives and residual value of property, plant and equipment
In case of the solar power plant, the life of the assets has been estimated at 25 years based on technical assessment, taking into
account the nature of the assets, the estimated usage of the asset, the operating condition of the asset, anticipated technological
changes, manufacturer warranties and maintenance support, except for some major components identified during the year,
depreciation on the same is provided based on the useful life of each such component based on technical assessment, if
materially different from that of the main asset.
Fair value measurement of financial instruments
In estimating the fair value of financial assets and financial liabilities, the Company uses market observable data to the extent
available. Where such Level 1 inputs are not available, the Company establishes appropriate valuation techniques and inputs to
the model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree
of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk
and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. All assets
and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
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.
Taxes
Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon
the likely timing and the level of future taxable profits together with future tax planning strategies and future recoverability
of deferred tax assets. The amount of the deferred income tax assets considered realisable could reduce if the estimates of
the future taxable income are reduced. In assessing the recoverability of deferred tax assets, the Company relies on the same
forecast assumptions used elsewhere in the financial statements.
Impairment of non-financial assets
For determining whether property, plant and equipment are impaired, it requires an estimation of the value in use of the relevant
cash generating units. The value in use calculation is based on a Discounted Cash Flow model over the estimated useful life
of the Power Plants. Further, the cash flow projections are based on estimates and assumptions relating to tariff, operational
performance of the Plants, life extension plans, exchange variations, inflation, terminal value etc. which are considered
reasonable by the Management.
Recognition and measurement of provision and contingency
The Company recognises a provision if it is probable that an outflow of cash or other economic resources will be required to
settle the provision. If an outflow is not probable, the item is treated as a contingent liability. Risks and uncertainties are taken
into account in measuring a provision.
Identification of a lease
Management assesses applicability of Ind AS 116 - ‘Leases’, for PPAs. In assessing the applicability, the management exercises
judgement in relation to the underlying rights and risks related to operations of the plant, control over design of the plant etc.,
in concluding that the PPA do not meet the criteria for recognition as a lease.
i. 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.
2.4 New and amended standards and interpretation effective from 1st April 2025
The Company has adopted the amendments to Indian Accounting Standards (Ind AS) notified by the Companies (Indian Accounting
Standards) Amendment Rules, 2025, effective for annual reporting periods beginning on or after 1 April 2025 (with certain provisions
effective from 1 April 2026). These amendments include revised guidance on classification of current and non-current liabilities (Ind
AS 1), new disclosures on supplier finance arrangements used in procurement of telecom and electronic equipment (Ind AS 7 and Ind
AS 107), and clarified treatment of foreign-exchange-related balances (Ind AS 21 and Ind AS 101).
The adoption of these amendments has not had a material impact on the carrying amounts of assets, liabilities, equity or profit or loss
for the current or prior periods, except as disclosed elsewhere in the financial statements.
2.5 Recent accounting pronouncement
The Company intends to adopt new or amended Ind-AS or other accounting pronouncements, whenever they become effective. Up to
the date of issuance of these Standalone Ind-AS Financial Statements there are no significant new or amended Ind-AS or accounting
pronouncements which are issued but not effective and would be expected to have a material impact on the Company in the years
reported in these Standalone Ind-AS Financial Statements or in the future.
Bondada Engineering Limited
Notes to the financial statementsfor the year ended March 31,2026
(All amounts are in INR lakhs, except share and per share data and where otherwise stated)
3 First time adoption of Ind AS
These financial statements, for the Year ended March 31, 2026, are the first, the company has prepared in accordance with Ind AS. For periods up to and
including the year ended March 31, 2025, the company prepared its financial statementsin accordancewith accounting standards notified under section 133
of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2015 (Indian GAAP).
Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for year ending on March 31, 2026 together with the
comparative period data as at and for the year ended March 31, 2025, as described in the summary of significant accounting policies. In preparing these
financial statements, the company’s opening balance sheet was prepared as at April 1, 2024, the company’s date of transition to Ind AS. This note explains
the principal adjustments made by the company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2024 and the
financial statements as at and for the year ended March 31, 2025.
3.1
(a) Mandatory exceptionsavailed:
i) Estimates
As per Ind AS 101, an entity’s estimates i n accordancewith Ind AS at the date of transition to Ind AS or at the end of the comparative period presentedin the
entity’s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous
IGAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in
accounting policies.
As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous IGAAP, those estimates
The Company’s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statements that
were not required under the previous IGAAP are listed below:
- Impairment of financial assetsbasedon the expected credit loss model.
- Determination of the discounted value for financial instruments carried at amortised cost.
ii) Classification and measurementof financial instruments
Ind AS 101 requires an entity to assessclassification of financial assetson the basis of facts and circumstances existing as on the date of transition. Further,
the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if
retrospective application is impracticable.
Accordingly, the Company has determined the classification of financial assetsbasedon facts and circumstances that exist on the date of transition.
The Company has applied the mandatory exception relating to impairment of financial assetsin accordancewith Ind AS 101. Accordingly, the impairment
requirements of Ind AS 109 have been applied based on the facts and circumstances existing at the date of transition to Ind AS, using reasonable and
supportable i nformation available without undue cost or effort.
On the date of transition, The Company measuredloss allowances for financial assetsin accordancewith the Expected Credit Loss (ECL) model under IndAS
109 using reasonable and supportable information available without undue cost or effort. The Company has applied the simplified approach to trade
receivables and recognised lifetime expected credit losses. For other financial assets,the general approach has been applied.
The difference between the carrying amount of financial assetsunder previous IGAAP and their carrying amount under Ind AS on account of recognition of
ECL has been adjusted to the opening balance of retained earnings as at the transition date.
(b) Optional exemptions availed:
i) Deemedcost for PPE, Intangibles and Right of Use Assets
In preparing these financial statements, the Company has availed optional exemption in respect of property, plant and equipment and intangible assets,the
Company has elected to continue with the carrying value as at April 01, 2024, measured as per the previous IGAAP, and use that carrying value as the
deemedcost of such property, plant and equipment and intangible assets.
In accordance with the optional exemption provided in paragraph D14-D15 of Ind AS 101 First-time Adoption of Indian Accounting Standards, the
Company has elected to measureits investments in subsidiaries / joint ventures at their deemedcost at the date of transition to Ind AS.
The Company has chosen to use the previous IGAAP carrying amount as the deemed cost for all such investments at the transition date 1st April 2024.
Accordingly, no retrospective adjustments have been made to the carrying amounts reported under previous IGAAP, except to the extent required to recognise
impairment lossesin accordancewith Ind AS 36.
iii) Fair Value Measurementof financial assetsor financial liabilities
The Company has elected to apply the optional exemption available under Ind AS 101 to designate certain financial assetsand financial liabilities at fair
value on the date of transition to Ind AS.
Under the previous IGAAP, deferred tax was recognised basedon the tax impact of timing differences between accounting income and taxable income for the
year (income statement approach). In contrast, Ind AS 12 requires deferred tax to be calculated on temporary differences between the carrying amounts of
assetsand liabilities in the balance sheet and their corresponding tax bases(balance sheet approach).
Under Ind AS, interest-free lease security deposits are initially recognised at their present value, whereas under previous IGAAP they were recognised at their
transaction value. The difference between the transaction value and the present value of such deposits is recognised as a prepaid lease payment. This prepaid
lease payment is subsequently amortised to the Statement of Profit and Loss over the lease term on a straight-line basis as lease rent expense. Further, the
security deposit is subsequently measuredat amortised cost using the effective interest rate (EIR) method, and the resulting interest income is recognised over
the tenure of the deposit.
Under the previous IGAAP, the Company measuredprovisions for doubtful debts basedon managementestimates. Under Ind AS, the Company is required to
recognise a loss allowance based on lifetime expected credit losses (ECLs) at each reporting date. Accordingly, the Company has developed a provision
matrix that incorporates its historical credit loss experience and is adjusted for forward-looking factors relating to the specific debtors and the broader
economic environment.
Ind AS 109 requires financial liabilities measuredat amortised cost to be initially recognised at fair value, net of directly attributable transaction costs.
Accordingly, transaction costs incurred in connection with the origination of borrowings are deductedfrom the initial carrying amount of the borrowings and
recognised i n profit or loss over the term of the borrowing as part of finance costs using the effective interest rate (EIR) method.
Ind AS 116 requires lesseesto recognise a right-of-use assetand a corresponding leaseliability for all leases,except for leasesthat qualify for the recognition
exemptions relating to short-term leasesand leasesof low-value assets.
Accordingly, the right-of-use assetis recognised at cost, which includes the present value of lease payments, adjusted for any payments made on or before the
commencement date, along with any initial direct costs. Subsequently, it is measured at cost less accumulated depreciation and accumulated impairment
losses, if any, and adjusted for any remeasurementof the lease liability. The right-of-use assetis depreciated on a straight-line basis from the commencement
date over the shorter of the asset’s useful life or the lease term.
The lease l iability is initially recognised at the present value of lease payments that are not paid at the commencementdate, discounted using the interest rate
implicit in the lease,or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Subsequently, the leaseliability is measuredby
increasing the carrying amount to reflect interest accrued, reducing it for lease payments made, and adjusting it for any remeasurement,where applicable
(6)
Under Ind AS, financial guaranteesissued by the Company on behalf of its subsidiaries are initially recognised as a liability at fair value. This amount is
subsequently amortised to the Statement of Profit and Loss as interest income. Under the previous IGAAP, such transactions were not recognised.
(7)
Under Ind AS, actuarial gains and losses are included within the remeasurement of the net defined benefit liability/asset and are recognised in Other
Comprehensive Income and are not reclassified to Statement of Profit and Loss. Under the previous IGAAP, actuarial gains and losses were recognised
directly in the Statementof Profit and Loss.
(8)
Under the previous IGAAP, discounting of provisions was not permitted. Under Ind AS, provisions must be measuredat discounted amounts when the impact
of the time value of money is material. Since the impact is not considered material in this case,the provisions have not been discounted.
(9)
Under the previous IGAAP, the Company recognised security deposits at their undiscounted amounts. In contrast, Ind AS requires security deposits to be
measured at their present value when the impact of the time value of money is material. The difference arising from discounting these deposits as of the
transition date has been adjusted against retained earnings.
(10) Statement of Cash Flow
The transition from IGAAP to Ind AS did not have a material impact on the statementof cash flows.
21 (a) The Company had instituted ESOP-2024 during April 2024 and granted 4,18,000 employee stock options of face value ?2 each.
During FY 2024-25, 16,000 options were forfeited on account of employee separation, resulting in 4,02,000 options remaining
eligible for vesting. The options vest in the ratio of 50%, 25% and 25% over three years commencing from FY 2024-25 and ending
FY 2026-27. Pursuant to completion of the first vesting period, 2,01,000 options became exercisable. During FY 2025-26,
employees exercised 2,01,000 options and accordingly the Company allotted 2,01,000 equity shares of face value ?2 each on 21
April 2025. During FY 2025-26, 45,000 options were forfeited, expired, surrendered or lapsed in accordancewith the terms of
ESOP-2024. As at 31 March 2026, 1,56,000 options remained outstanding under ESOP-2024, representing the balance options
eligible for vesting and/or exercise in future periods in accordancewith the vesting schedule of the scheme.
21 (b) The Company has received the balance 75% amount against share warrants aggregating to Rs. 4,124.84 lakhs (25% amounting to
Rs. 1,374.95 lakhs was received in FY 2024-25), resulting in receipt of the total warrant consideration of Rs. 5,499.79 lakhs.
Subsequently, the Company converted the entire 3,13,200 share warrants @ Rs 1,756 per share warrant (face value Rs. 10 and
premium Rs. 1,746) into 15,66,000 equity shares of face value Rs. 2 each at an issue price of Rs. 351.20 per share (including
premium of Rs. 349.20 per share) on 31 May 2025.
21 (c)
Securities Premium
Securities premium is used to record the premium on issue of shares.The reserve can be utilised only for limited purposes such as
issuance of bonus sharesin accordancewith the provisions of the Companies Act, 2013.
Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any dividends or other distributions
paid to shareholders. Retained earnings include re-measurementloss / (gain) on defined benefit plans, net of taxes that will not be
reclassified to Statement of Profit and Loss.
23 (a) The Company doesnot face a significant liquidity risk with regard to its leaseliabilities as the current assetsaresufficient to meet
the obligations related to leaseliabilities as and when they fall due.
23 (b) Incremental borrowing rate considered for the discounting of future leasepayments is 10%.
The information about the Company'sexposureto interest rate and liquidity risks is included in note 47.
Earning per share calculations are in accordance with Indian Accounting Standard 33-Earning Per Share ,notified under section
133 of the Companies Act ,2013,read together with paragraph 7of the Companies (Accounts) Rules,2015.As per Ind AS 33
paragraph 28,in case of bonus share,the number of shares outstanding before the event is adjusted for the proportionate change in
the no.of equity sharesoutstanding as if the event has occurred at the beginning of the earliest period reported. In caseof new issue
of shares, for the purpose of calculating basic earning per share, the number of ordinary sharesshall be the weighted average no.of
ordinary shares outstanding during the period. Diluted EPS amounts are calculated by dividing the profit attributable to equity
holders of the Company by the weighted average number of Equity sharesoutstanding during the year.
Defined contribution plans:
The Company makes Provident Fund contributions to defined contribution plans for qualifying employees.Under the Schemes,the Company
is required to contribute a specified percentageof the payroll costs to fund the benefits. The Company contributed Rs 109.98 Lakhs ( Previous
year: Rs 76.79 Lakhs ) to these plans as its contribution under the provident fund scheme.The contributions payable to these plans by the
Company are at rates specified in the law prescribed for the same.
Defined benefit plan:
i) Gratuity: The Company has provided gratuity liability as per the actuarial valuation provided by actuarial valuer. The benefits are
determined and carried out at each Balance Sheet date.
ii) Leave Encashment: The Company has created provision for leave encashmentliability for eligible employees. The benefits are determined
and carried out at each Balance Sheet date.
Theseplans typically exposethe Companyto acturial risks such as : investment risk , interest risk , longevity risk and regulatory risk.
Investment risk:
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of
instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in
wide fluctuations in the net liability or the funded status if there are significant changesin the discount rate during the inter-valuation period.
Market Risk (Interest Rate):
Market risk is a collective term for risks that are related to the changesand fluctuations of the financial markets. The discount rate reflects the
time value of money. An increase in discount rate leads to decreasein Defined Benefit Obligation of the plan benefits & vice versa. This
assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the
yields as at the valuation date.
Longevity risk:
1. Salary Increase Assumption
Actual Salary increase that are higher than the assumedsalary escalation, will result in increase to the Obligation at a rate that is higher than
expected.
2. Attrition/Withdrawal Assumption
If actual withdrawal rates are higher than assumedwithdrawal rates, the benefits will be paid earlier than expected. Similarly if the actual
withdrawal rates are lower than assumed,the benefits will be paid later than expected. The impact of this will depend on the demography of
the company and the financials assumptions.
Regulatory Risk:
Any Changesto the current Regulations by the Government, will increase (in most cases)or Decreasethe obligation which is not anticapated.
Sometimes,the increaseis many fold which will impact the financials quite significantly.
47(d) Credit risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial
loss to the Company. Credit risk arises from Company’s activities in investments, dealing in derivatives and receivables from customers.
The Company ensure that sales of products are made to customers with appropriate creditworthiness. Investment and other market
exposures are managed against counterparty exposure limits. Credit information is regularly shared between businesses and finance
function, with a framework in place to quickly identify and respondto casesof credit deterioration.
The Company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Credit
risk across the Company is actively managed through Letters of Credit, Bank Guarantees, Parent Company Guarantees, advance
payments and factoring & forfeiting without recourse to the Company. The Company restricts its fixed income investments in liquid
securities carrying high credit rating.
47(e) Liquidity risk
Liquidity risk arises from the Company’s inability to meet its cashflow commitments on the due date. The Company maintains sufficient
stock of cash, marketable securities and committed credit facilities. The Company accessesfinancial markets to meet its liquidity
requirements. It uses a range of products to ensure efficient funding from across well-diversified markets. Treasury monitors rolling
forecasts of the Company’s cashflow position and ensuresthat the Company i s able to meet its financial obligation at all times including
contingencies.
The Company’s liquidity is managedcentrally with operating units forecasting their cash and liquidity requirements. Treasury pools the
cash surpluses and arrangesto either fund the net deficit or invest the net surplus in a range of short-dated, secureand liquid instruments
including short-term bank deposits and similar instruments. The portfolio of these investments is diversified to avoid concentration risk
in any one instrument or counterparty.
50 Event Occurred After The Balance SheetDate
The Company evaluates events and transactions that occur subsequentto the balance sheet date but prior to the approval of
financial statementsto determine the necessity for recognition and/or reporting of any of these events and transactions in the
financial statements.
51 Employee Stock Option Plan
The Bondada Engg Ltd - ESOP2024 Plan was adopted pursuant to resolutions passedby the NRC (Nomination and Remuneration
Committee). The company has granted options at an exercise price of Rs. 2 which vest 50%, 25%, 25% respectively at the end of
the 1st year, 2nd year and 3rd year respectively from the date of grant of ESOP.
I. Title deedsof all immovable properties are held in the nameof the company.
II. The company has not revalued its property, plant and equipment and intangible assetsduring the year.
III. No loans or advancesin nature of loans are granted to promoters, directors, KMPs or related parties that are repayable on demand or
without specifying any terms or period of repayment.
IV. In respectof loans borrowed from banks or the financials institutions on the basis of security of current assets,the quarterly returns
or statementsof currents assetsfiled by the company with the banks or financial institutions are in agreementwith the books of
accounts.
V. No proceedings have been initiated or pending against the company for holding any benami properties under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules madethereunder.
VI. The company has not been declared a wilful defaulter as defined by any bank or financial Institution or other lender.
VII. The company had no transactions with companies struck off under section 248 of the CompaniesAct, 2013 or section 560 of
Companies Act, 1956.
VIII. There are no chargesor satisfaction which are yet to be registered with ROC beyond the statutory period.
IX. The company has complied with the number of layers prescribed under Clause 87 of Sec.2 of the Act read with the Companies
(Restriction on number of layers) Rules 2017.
X. A). The company has not advancedor loaned or invested funds (either borrowed funds or share premium or any other sources or
kind of funds) to any other person(s)or entity(ies) including foreign entities (intermediaries) with the understanding(whether
recordedin writing or otherwise) that the intermediary shall (i) directly or Indirectly lend or invest in other personsor entities
identified in any manner whatsoeverby or on behalf of the company (Ultimate beneficiaries); or (ii) provide any guarantee,security
or the like to or on behalf of the ultimate beneficiaries.
B) 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 companyshall (i) directly or indirectly lend or invest in other
personsor entities identified in any mannerwhatsoeverby or on behalf of the Funding Party (Ultimate beneficiaries) or (ii) provide
any guarantee,security or the like on behalf of the ultimate beneficiaries.
XI. There were no transactions which were not recorded as income in the books of account but surrendered or disclosed as income
during the year in the tax assessmentsunderthe Income Tax Act, 1961.
XII. The company has not traded or invested in crypto currency or virtual currency during the financial year.
XIII. Latest valuation reports has been considered for valuation of unquoted Investments in equity shares.
55 The financial statementswere approved for issue by the Board of Directors on April 27, 2026.
56 Previous year figures have been regrouped/ reclassified, wherever necessary,to confirm to this year’s classification.
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