3.8 Provisions, Contingent Liabilities, Contingent
assets and Commitments:
Provisions are recognized 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. If the effect of the time
value of money is material, provisions are discounted
using equivalent period government securities interest
rate. Unwinding of the discount is recognised in
the statement of profit and loss as a finance cost.
Provisions are reviewed at each Balance Sheet date
and are adjusted to reflect the current best estimate.
Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made.
Information on contingent liability is disclosed in the
Notes to the Financial Statements. Contingent assets
are not recognized. However, when the realization of
income is virtually certain, then the related asset is no
longer a contingent asset, but it is recognized as an
asset.
3.9 Revenue recognition and other income:
Sales of goods and services:
The Company derives revenues primarily from sale of
products comprising of Low Iron textured Solar Glass.
Revenue from contracts with customers is recognized
when control of the goods or services are transferred
to the customer at an amount that reflects the
consideration entitled in exchange for those goods or
services. Generally, control is transfer upon shipment
of goods to the customer or when the goods is made
available to the customer, provided transfer of title
to the customer occurs and the Company has not
retained any significant risks of ownership or future
obligations with respect to the goods shipped.
Revenue is measured at the amount of consideration
which the Company expects to be entitled to in
exchange for transferring distinct goods or services
to a customer as specified in the contract, excluding
amounts collected on behalf of third parties (for
example taxes and duties collected on behalf of the
government). Consideration is generally due upon
satisfaction of performance obligations and a receivable
is recognized when it becomes unconditional.
The Company does not expect to have any contracts
where the period between the transfer of the promised
goods or services to the customer and payment by
the customer exceeds one year. As a consequence,
it does not adjust any of the transaction prices for the
time value of money.
Revenue is measured based on the transaction
price, which is the consideration, adjusted for volume
discounts, and claims, if any, as specified in the
contract with the customer. Revenue also excludes
taxes collected from customers.
Revenue from rendering of services is recognized over
time by measuring the progress towards complete
satisfaction of performance obligations at the reporting
period.
Incentives on exports related to operations are
recognised in the statement of profit and loss after due
consideration of certainty of utilization/receipt of such
incentives.
Contract Balances - Trade Receivables
A receivable represents the Company's right to an
amount of consideration that is unconditional.
Contract liabilities
A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
received consideration (or an amount of consideration
is due) from the customer. If a customer pays
consideration before the Company transfers goods
or services to the customer, a contract liability is
recognised when the payment is made or the payment
is due (whichever is earlier). Contract liabilities are
recognised as revenue when the Company performs
under the contract.
Interest Income:
Interest income from a financial asset is recognised
when it is probable that the economic benefits will flow
to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset's net carrying amount on initial recognition.
Dividend Income:
Dividend Income is recognised when the right to
receive the payment is established.
Rental income:
Rental income arising from operating leases is
accounted for on a straight-line basis over the lease
terms and is included as other income in the statement
of profit or loss.
3.10 Foreign Currency:
Transactions in foreign currencies are recorded at the
exchange rate prevailing on the date of transaction.
Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency
closing rates of exchange at the reporting date.
Exchange differences arising on settlement or
translation of monetary items are recognized in
Statement of Profit and Loss except to the extent
of exchange differences which are regarded as an
adjustment to interest costs on foreign currency
borrowings that are directly attributable to the
acquisition or construction of qualifying assets, are
capitalized as cost of assets.
Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated using
the exchange rates at the dates of the transaction.
Foreign exchange differences regarded as an
adjustment to borrowing costs are presented in the
statement of profit and loss, within finance costs.
All other finance gains / losses are presented in the
statement of profit and loss on a net basis.
In case of an asset, expense or income where a
non-monetary advance is paid/received, the date
of transaction is the date on which the advance was
initially recognized. If there were multiple payments or
receipts in advance, multiple dates of transactions are
determined for each payment or receipt of advance
consideration.
3.11 Employee Benefits:
Short term employee benefits are recognized as an
expense in the statement of profit and loss of the year
in which the related services are rendered.
Leave encashment is accounted as Short-term
employee benefits and is determined based on
projected unit credit method, on the basis of actuarial
valuations carried out by third party actuaries at each
Balance Sheet date.
Contribution to Provident Fund, a defined contribution
plan, is made in accordance with the statute, and
is recognised as an expense in the year in which
employees have rendered services.
The cost of providing gratuity, a defined benefit plans,
is determined based on Projected Unit Credit Method,
on the basis of actuarial valuations carried out by third
party actuaries at each Balance Sheet date. Actuarial
gains and losses arising from experience adjustments
and changes in actuarial assumptions are charged or
credited to other comprehensive income in the period
in which they arise. Other costs are accounted in
statement of profit and loss.
Remeasurements of defined benefit plan in respect
of post employment and other long term benefits
are charged to the other comprehensive income
in the year in which they occur. Remeasurements
are not reclassified to statement of profit and loss in
subsequent periods.
3.12 Share-based payments:
The cost of equity-settled transactions with employees
is measured at fair value at the date at which they
are granted. The fair value of share options are
determined with the assistance of an external valuer
and the fair value at the grant date is expensed on a
proportionate basis over the vesting period based on
the Company's estimate of shares that will eventually
vest. The estimate of the number of options likely to
vest is reviewed at each balance sheet date up to the
vesting date at which point the estimate is adjusted to
reflect the current expectations.
3.13 Taxes on Income:
Income tax expense represents the sum of current tax
(including income tax for earlier years) and deferred
tax. Tax is recognised in the statement of profit and
loss, except to the extent that it relates to items
recognised directly in equity or other comprehensive
income, in such cases the tax is also recognised
directly in equity or in other comprehensive income.
Any subsequent change in direct tax on items initially
recognised in equity or other comprehensive income
is also recognised in equity or other comprehensive
income.
Current tax provision is computed for income calculated
after considering allowances and exemptions under
the provisions of the applicable Income Tax Laws.
Current tax assets and current tax liabilities are off set,
and presented as net.
Deferred tax is recognised on differences between the
carrying amounts of assets and liabilities in the Balance
sheet and the corresponding tax bases used in the
computation of taxable income. Deferred tax liabilities
are generally recognised for all taxable temporary
differences, and deferred tax assets are generally
recognised for all deductible temporary differences,
carry forward tax losses and allowances to the extent
that it is probable that future taxable profits will be
available against which those deductible temporary
differences, carry forward tax losses and allowances
can be utilised. Deferred tax liabilities and assets are
measured at the tax rates that are expected to apply
in the period in which the liability is settled or the asset
realised, based on tax rates that have been enacted
or substantively enacted by the end of the reporting
period. The carrying amount of Deferred tax liabilities
and assets are reviewed at the end of each reporting
period.
3.14 Borrowing Costs:
Borrowing costs specifically relating to the acquisition
or construction of qualifying assets that necessarily
takes a substantial period of time to get ready for
its intended use are capitalized (net of income on
temporarily deployment of funds) as part of the cost
of such assets. Borrowing costs consist of interest and
other costs that the Company incurs in connection with
the borrowing of funds. For general borrowing used
for the purpose of obtaining a qualifying asset, the
amount of borrowing costs eligible for capitalization
is determined by applying a capitalization rate to
the expenditures on that asset. The capitalization
rate is the weighted average of the borrowing costs
applicable to the borrowings of the Company that are
outstanding during the period, other than borrowings
made specifically for the purpose of obtaining a
qualifying asset. The amount of borrowing costs
capitalized during a period does not exceed the
amount of borrowing cost incurred during that period.
All other borrowing costs are expensed in the period in
which they occur.
3.15 Current and non-current classification:
The Company presents assets and liabilities in
statement of financial position based on current/non-
current classification.
The Company has presented non-current assets and
current assets before equity, non-current liabilities
and current liabilities in accordance with Schedule III,
Division II of Companies Act, 2013 notified by Ministry
of Corporate Affairs (MCA).
An asset is classified as current when it is:
a) Expected to be realised or intended to be sold or
consumed in normal operating cycle,
b) Held primarily for the purpose of trading,
c) Expected to be realised within twelve months
after the reporting period, or
d) Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for at
least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is classified as current when it is:
a) Expected to be settled in normal operating cycle,
b) Held primarily for the purpose of trading,
c) Due to be settled within twelve months after the
reporting period, or
d) There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.
All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash
or cash equivalents. Deferred tax assets and liabilities
are classified as non-current assets and liabilities. The
Company has identified twelve months as its operating
cycle.
3.16 Government Grant:
Grants and subsidies from the government are
recognised when there is reasonable assurance that (i)
the Company will comply with the conditions attached
to them, and (ii) the grant/subsidy will be received.
When the grant or subsidy relates to revenue, it is
recognised by adjusting the grant with the related
costs which they are intended to compensate in the
statement of profit and loss. Where the grant relates
to an asset, it is recognised by deducting the grant
from the value of respective asset to arrive at carrying
amount.
3.17 Research and Development Expenditure:
Revenue expenditure pertaining to research is
charged to the Statement of Profit and Loss as and
when incurred.
Development costs are capitalised as an property,
plant and equipment and intangible asset if it can be
demonstrated that the project is expected to generate
future economic benefits, it is probable that those
future economic benefits will flow to the entity and the
costs of the asset can be measured reliably, else it is
charged to the Statement of Profit and Loss.
3.18 Offsetting financial instruments:
Financial assets and liabilities are offset and the net
amount is reported in the Balance Sheet where there
is a legally enforceable rights to offset the recognised
amounts and there is an intention to settle on a net
basis or realise the asset and settle the liability
simultaneously. The legally enforceable rights must
not be contingent on future events and must be
enforceable in the normal course of business and in
the event of default, insolvency or bankruptcy of the
Company or counterparty.
NOTE 4 : SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS
The preparation of Financial Statements requires
management to make judgements, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets, liabilities, 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. 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 used its
assumptions and estimates on parameters available when
the financial statements were prepared. However, 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.
4.1 Property, Plant and Equipment and Intangible
Assets:
Management reviews the estimated useful lives and
residual values of the assets annually in order to
determine the amount of depreciation to be recorded
during any reporting period. The useful lives and
residual values as per schedule II of the Companies
Act, 2013 or are based on the Company's historical
experience with similar assets and taking into account
anticipated technological changes, whichever is more
appropriate.
4.2 Income Tax:
Company reviews at each balance sheet date the
carrying amount of deferred tax assets. The factors
used in estimates may differ from actual outcome
which could lead to an adjustment to the amounts
reported in the financial statements.
4.3 Contingencies:
Management has estimated the possible outflow of
resources at the end of each annual financial year,
if any, in respect of contingencies/claim/litigations
against the Company as it is not possible to predict the
outcome of pending matters with accuracy.
4.4 Impairment of Financial Assets:
The impairment provisions for financial assets are
based on assumptions about risk of default and
expected cash loss. The Company uses judgement in
making these assumptions and selecting the inputs to
the impairment calculation, based on Company's past
history, existing market conditions as well as forward
looking estimates at the end of each reporting period.
4.5 Impairment of Non-Financial Assets:
The Company assesses at each reporting date
whether there is an indication that an asset may be
impaired. If any indication exists, or when annual
impairment testing for an asset is required, the
Company estimates the asset's recoverable amount.
An asset's recoverable amount is the higher of an
asset's or Cash Generating Units (CGU) fair value less
costs of disposal and its value in use. It is determined
for an individual asset, unless the asset does not
generate cash inflows that are largely independent to
those from other assets or groups of assets. Where
the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.
In assessing value in use, the estimated future cash
flows are discounted 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. In determining fair value less
cost of disposal, recent market transactions are taken
into account. If no such transactions can be identified,
an appropriate valuation model is used. These
calculations are corroborated by valuation multiples or
other available fair value indicators.
4.6 Defined benefits plans:
The Cost of the defined benefit plan and other post¬
employment benefits and the present value of such
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, mortality rates
and attrition rate. 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.
4.7 Provisions:
Provisions and liabilities are recognized in the period
when it becomes probable that there will be a future
outflow of funds resulting from past operations or
events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification
of the liability require the application of judgement
to existing facts and circumstances, which can be
subject to change. Since the cash outflows can take
place many years in the future, the carrying amounts
of provisions and liabilities are reviewed regularly
and adjusted to take account of changing facts and
circumstances.
NOTE 5:RECENT PRONOUNCEMENTS
Ministry of Corporate Affairs (“MCA”) notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. The Company has reviewed these amendments and
determined that there is no material impact on the financial
statements.
Ind AS 1, Presentation of Financial Statements
The amendment refines the criteria for classifying liabilities
as current or non-current. It clarifies that a right to defer
settlement of a liability for at least 12 months after the
reporting period must exist at the end of the reporting period
and have substance. The amendment also introduces
explicit guidance on how compliance with covenants affects
the classification of liabilities.
The amendments are effective for annual reporting periods
beginning on or after April 01, 2025.
Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments
The amendment to Ind AS 7 requires entities to disclose
qualitative and quantitative information regarding the
characteristics, carrying amounts, and payment term
ranges of supplier finance arrangements. Concurrently,
Ind AS 107 has been amended to incorporate supplier
finance arrangements as a key factor when evaluating and
disclosing liquidity risk concentrations.
The amendments are effective for annual reporting periods
beginning on or after April 01, 2025.
Ind AS 21, The Effects of Changes in Foreign Exchange
Rates
The MCA notified amendments to Ind AS 21 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 require
disclosures that enable users of financial statements to
understand how a lack of currency exchangeability 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 April 01, 2025.
8.1 Interfloat Corporation (“IF”), a step-down subsidiary of the Company has faced significant challenges in retaining
customers following the cessation of annealed production at Glasmanufaktur Brandenburg GmbH (“GMB”) from
December 31, 2024. At that time, the Company had expected that the customers would continue to source from IF,
which would supply from existing stocks as well as source material from the Company. However, fierce competition from
East Asia compelled IF customers to seek highly reduced prices for solar glass which were unremunerative. Meanwhile,
domestic demand for the Company's products in India increased substantially at good prices which reduced incentive
to export at low prices. This has left IF with a highly reduced sales which was insufficient to pay for its fixed operational
costs. Following a review by the Management of IF, it was assessed that there were no clear indicators of demand
recovery in the near term that would support a return to profitable operations.
In view of the above, Laxman AG (Holding Company of IF) has partially provided its exposure in IF and accordingly
'3,387.04 lakhs have been considered as impaired out of total exposure of '5,758.86 lakhs and provided for in the books
of account of the Company and disclosed as an exceptional item.
17.1 The Company granted loans for the purpose of business, working capital, acquisition of foreign subsidiaries and financial
support to step-down subsidiaries. The said loan of EUR 8.85 million ('8,170.73 lakhs), EUR 3.00 million ('2,769.74
lakhs) and EUR 0.60 million ('553.94 lakhs) were receivables together with all accrued interest in full on October, 2025,
December, 2026 and January 2027 respectively. The loan carried interest rate @ 7.00% to 7.13% p.a.
17.2 During the previous year, the Company had made the payment of EUR 21 million ('19,656.36 lakhs), pursuant to
drawdown of Standby Letters of Credit (“SBLCs”) arranged by the Company, for settlement of outstanding loans of GMB
Glasmanufaktur Brandenburg GmbH (GMB). Consequent to the aforesaid payment, the Company stood subrogated
in place of the Lender Banks (which had advanced loan to GMB) and had become lender for GMB to the extent of the
aforesaid amount of EUR 21 million ('19,656.36 lakhs). The loan of EUR 10.20 million ('9,417.11 lakhs) was receivables
together with all accrued interest in 17 equal quarterly instalments after an initial moratorium period of 12 months and
loan of EUR 10.80 million ('9,971.06 lakhs) was receivables together with all accrued interest in 19 equal quarterly
instalments after an initial moratorium period of 12 months. The loan carried interest rate @ 6.77% p.a.
17.3 The above loans were subordinated.
17.4 During the year, the Company has done an independent assessment of the prevailing situation of Glasmanufaktur
Brandenburg GmbH (GMB) (step-down subsidiary) and Geosphere Glassworks GmbH (Geosphere) (wholly owned
subsidiary of the Company and holding company of GMB) in Germany and concluded that there is a complete absence
of any demand recovery; nor any sign of such recovery in the foreseeable future. Based on an independent assessment,
GMB has filed the insolvency application on July 04, 2025.
Subsequently, Geosphere has also filed the insolvency application on December 22, 2025 due to a claim received from a
German Bank for refund of a capital subsidy granted by it to GMB, on grounds of non-fulfilment of condition of continued
use of the assets.
The Company has received a copy of the report dated December 01, 2025, issued by Court appointed Insolvency
Administrator of GMB submitted to the insolvency court in Cottbus, Germany, which summarises the process followed
and steps taken by the administrator, evaluates the assets and liabilities of GMB and mentions that assets of GMB are
insufficient for discharging its liabilities and creditors are unlikely to receive any amounts and also say that Insolvency
proceedings are expected to take 12 months. A report dated February 16, 2026 also received from the Administrator
of Geosphere with similar conclusions. In view of the above, Company has concluded that there is no probability of
recovery of any amount against its exposure.
Accordingly, Board of the Directors of the Company decided to write off above exposure of '32,590.81 lakhs (in form of
investment, loans including interest thereon and other receivables) in the books of account for the financial year ended
March 31, 2026. Based on legal opinion obtained, the above exposure of '32,590.81 lakhs has been considered as
deductible expenditure while calculating the provision for current income tax. The Company has also informed about
write off to the Authorised Dealer Bank.
20.2 The Company had on February 14, 2025, allotted 18,86,793 Equity Shares to Promoter / Members of Promoter group
and 78,80,436 Warrants to Non-Promoter Investors, at an issue price of '530/- per Equity Share / Warrant, on a
preferential basis with aggregate issue size of '51,766.31 lakhs. As per the terms of the issue, at the time of allotment,
the Company had received full consideration towards equity shares and 25% of the amount toward warrants. During
the year March 31, 2026, the Company has received '3,072.65 lakhs from the warrant holders, upon exercise of right
attached to their warrants by paying balance 75% and accordingly 7,72,994 fully paid-up equity shares, respectively,
of '1/- each have been allotted. Pursuant to above allotment, the paid-up Equity Share Capital has increased by '7.73
lakhs and Securities Premium by '4,089.14 lakhs. The Company has overall raised the funds of '23,514.23 lakhs under
the aforesaid Preferential Issue.
Out of above proceeds, '18,500.00 lakhs have been utilised during the year ended March 31,2025, towards satisfaction
of the liability of the Company arising from Standby Letter of Credit (SBLC) extended on behalf of the Company as a
security to the lenders of GMB Glasmanufaktur Brandenburg GmbH (“GMB”), a step-down subsidiary of the Company
and '5,014.23 lakhs utilised towards capital expenditure for expansion of the Company's production capacity, as on
March 31, 2026. As on March 31, 2026, there have been no amounting pending for utilization from aforesaid Issues.
During the previous year, the expenses incurred by the Company in connection of above have been adjusted towards
Securities premium and Money received against Warrants aggregating to '10.06 lakhs and '1,104.64 lakhs (net of tax)
respectively.
20.3 The Company has on October 17, 2025, allotted 69,43,691 equity shares at issue price of '535/- each to Non-Promoter
Investors, under Preferential Issue, and raised funds of '37,148.75 lakhs, pursuant to which, during the year ended
March 31, 2026, the paid-up Equity Share Capital has increased by '69.44 lakhs and Securities Premium increased
by '37,079.31 lakhs. '7,872.16 lakhs utilised towards capital expenditure for expansion of the Company's production
capacity and General Corporate Purpose, as on March 31, 2026. The un-utilised funds have been temporarily invested
in mutual funds as on March 31, 2026. The expenses incurred by the Company in connection of above have been
adjusted towards Securities premium aggregating to '766.68 lakhs (net of tax).
20.4 During the year, pursuant to exercise of the options under 'Borosil Renewables Limited - Employee Stock Option Scheme
2017', the Company has made allotment of 5412 Equity Shares (Previous Year 42,160 Equity Shares) of the face value
of '1/- each, which has resulted into increase of paid up Equity Share Capital by '0.05 lakhs (Previous Year '0.42 lakhs)
and Securities Premium by '30.28 lakhs (Previous Year '133.88 lakhs).
20.5 Terms/Rights attached to Equity Shares :
The Company has only one class of shares referred to as equity shares having a par value of '1/- per share. Holders
of equity shares are entitled to one vote per share. The dividend proposed by the Board of Directors, if any, is subject
to the approval of the shareholders in the annual general meeting, except in case of interim dividend. In the event of
liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company,
after distribution of all preferential amounts. The distribution will be in the same proportion as the capital paid-up on the
equity shares held by them bears to the total paid-up equity share capital of the Company.
21.1 Nature and Purpose of Reserve
I Capital Reserve
Capital reserve was created by way of Subsidy received from State of Gujarat and Forfeiture of shares for non
payment of allotment money/call money. The reserve will be utilised in accordance with the provisions of the
Companies Act, 2013.
II Capital Reserve on Amalgamation
Capital Reserve on Amalgamation is created Pursuant to the scheme of arrangement. The reserve will be utilised
in accordance with the provisions of the Companies Act, 2013.
III Securities Premium
Securities premium is created when shares are issued at premium. The reserve will be utilised in accordance with
the provisions of the Companies Act, 2013.
IV Surplus arising on giving effect to BIFR Order
This surplus was recognised in pursuant to implementation of the order of Board for Industrial and Financial
Reconstruction (BIFR) in respect of the scheme for the rehabilitation of the Company. The reserve will be utilised
in accordance with the provisions of the Companies Act, 2013.
V Share Based Payment Reserve
Share based payment reserve is created against “Borosil Employees Stock Option Scheme 2017” and will be
utilised against exercise of the option by the employees on issuance of the equity shares.
VI Retained Earnings
Retained earnings represents the accumulated profits / (losses) made by the Company over the years.
VII Other Comprehensive Income (OCI) :
Other Comprehensive Income (OCI) includes remeasurements of defined benefit plans.
22.1 The above term loans from banks including current maturity of long term debts in Note No 24 includes:
I ' Nil lakhs (previous year '504.49 lakhs) wad secured by first pari passu Equitable/ Registered mortgage charge on
immovable properties being land and building situated at Bharuch and first pari passu hypothecation charge on all
existing and future current assets and movable Property, Plant and Equipment of the Company. The last installment
of Loan was repaid in January, 2026. The term loan carried interest rate @ 8.60% to 7.60% p.a.
II '4,254.86 lakhs (previous year '6,182.29 lakhs) is secured by first pari passu Equitable/ Registered mortgage
charge on immovable properties being land and building situated at Bharuch and first pari passu hypothecation
charge on all existing and future current assets and movable Property, Plant and Equipment of the Company. Loan
is repayable in 9 equal quarterly instalments of '400.00 lakhs ending in April, 2028 and 8 equal quarterly instalment
of '81.86 lakhs ending in March, 2028. The term loan carries interest rate @ 8.60% to 7.60% p.a.
III Foreign currency term loan ' Nil lakhs (previous year '64.67 lakhs) was secured by first pari passu Equitable/
Registered mortgage charge on immovable properties being land and building situated at Bharuch and first pari
passu hypothecation charge on all existing and future current assets and movable Property, Plant and Equipment
of the Company. The last installment of Loan was repaid in May, 2025. The term loan carried interest rate @ 2.94%
p.a.
IV Foreign currency term loan '2,489.00 lakhs (previous year '3,162.16 lakhs) is secured by first pari passu Equitable/
Registered mortgage charge on immovable properties being land and building situated at Bharuch and is secured
by first pari passu hypothecation charge on all existing and future current assets and movable Property, Plant and
Equipment of the Company. Loan is repayable in 8 equal quarterly instalments ending in March, 2028. The term
loan carries interest rate @ 5.40% p.a.
V ' Nil lakhs (previous year '219.48 lakhs) was secured by exclusive charge on the fixed asset of the Company i.e.
Land and Building and hypothecation charge on all present and future, movable plant and machinery situated at
Bharuch and current assets of the Company. The last installment of Loan was repaid in April, 2025. The term loan
carried interest rate @ 8.92% to 8.67% p.a.
VI '2,003.51 lakhs (previous year '2,671.34 lakhs) is secured by exclusive charge on the fixed asset of the Company
i.e. Land and Building and hypothecation charge on all present and future, movable plant and machinery situated at
Bharuch and current assets of the Company. Loan is repayable in 12 equal quarterly instalments ending in March,
2029. The term loan carries interest rate @ 8.20% to 6.90% p.a.
VII '6,325.00 lakhs (previous year '8,625.00 lakhs) is secured by a first mortgage and charge on the Company's
immovable properties (owned), present and future being land and building situated at Bharuch and is further
secured by way of hypothecation on the Company's movable plant and machinery situated at Bharuch and charge
on all existing and future current assets of the Company. Loan is repayable in 11 equal quarterly instalments ending
in October, 2028. The term loan carries interest rate @ 8.49% to 7.20% p.a.
VIII '1,500.00 lakhs (previous year '2,250.00 lakhs) is secured by exclusive charge on the fixed asset of the Company
i.e. Land and Building and hypothecation charge on all present and future, movable plant and machinery situated at
Bharuch and current assets of the Company. Loan is repayable in 8 equal quarterly instalments ending in January
2028. The term loan carries interest rate @ 8.40% to 7.29% p.a.
IX '100.00 lakhs (previous year 'Nil) is to be secured by a first mortgage and charge on the Company's immovable
properties (owned), present and future being land and building situated at Bharuch and is to be further secured
by way of hypothecation on the Company's movable plant and machinery situated at Bharuch and charge on all
existing and future current assets of the Company. Loan is repayable in 12 quarterly step-up instalments ending in
March 2030. The term loan carries interest rate @ 7.85% to 7.60% p.a.
X '100.00 lakhs (previous year 'Nil) is secured by a first pari passu Equitable/ Registered mortgage charge on
immovable properties, being land and building situated at Bharuch and is secured by a first pari passu hypothecation
charge on all existing and future current assets and movable Property, Plant and Equipment of the Company. Loan
is repayable in 12 step-up quarterly instalments ending in March, 2030. The term loan carries an interest rate @
7.85% to 7.60% p.a.
22.2 The Company has used the borrowings from banks for the specific purpose for which it was taken at the balance sheet
date.
22.3 There are no charge or satisfaction thereof which are yet to be registered with ROC beyond the statutory period.
24.1 ' Nil lakhs (previous year '24.10 lakhs ) was secured by first pari passu charge on current assets of the Company
situated at Bharuch. The working facilities carried interest rate @ 7.24% p.a.
24.2 ' Nil lakhs (previous year '1,000.00 lakhs) was to be secured by first pari passu charge on current assets of the
Company situated at Bharuch. The working facilities carried interest rate @ 8.75% p.a.
24.3 ' Nil lakhs (previous year '433.83 lakhs) was primarily secured by existing and future current assets and all movable
plant and machinery of the Company and further secured by exclusive charge on the fixed asset of the Company i.e.
Land and Building situated at Bharuch. The working facilities carried interest rate @ 7.91% p.a.
38.2 The Company received refund of '523.98 lakhs including interest in previous years for transit insurance matter for
extended period as mentioned by Hon'ble CESTAT, Ahmedabad in its final order no A/11490-114911 2017 dated
July 28, 2017. Aggrieved by the order of the Hon'ble CESTAT, the department had filed appeals before the Hon'ble High
court of Gujarat vide Tax appeals no 613-617 of 2018. The said appeals were admitted. However the Hon'ble High court
had not granted any stay against operation of the order of the Hon'ble CESTAT dated July 28, 2017. The Company does
not expect any financial effect of the above matter under litigation.
38.3 During the financial year 2023-24, the Company received an Income Tax demand of '1,952.56 lakhs, for the assessment
year 2016-17 (“Order”) mainly on account of disallowance of short-term capital gains and treatment of dividend income
as non-exempt, which had been subsequently quashed by the Hon'ble High Court of Judicature at Bombay (Bombay
High Court) in the same financial year only. During the financial year 2024-25, the Hon'ble Supreme Court vide its Order
passed on October 03, 2024, has asked the respective Income-tax authorities to follow guiding principles as given in
it's Order for each case which needs to be decided on its own respective facts. However, till now the Company has not
received any new order or intimation from the respective Income-tax authorities.
(b) Defined Benefit Plan:
The Gratuity benefits of the Company is funded.
The employees' Gratuity Fund is managed by the Birla Sun Life Insurance Corporation of India. The present value
of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises
each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.
39.3 Risk exposures
A. Actuarial Risk: It is the risk that benefits will cost more than expected. This can arise due to one of the following
reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result
into an increase in Obligation at a rate that is higher than expected.
Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the
Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the
acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary
growth and discount rate.
Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption
than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits
are vested as at the resignation date.
B. 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 changes in the discount rate during the inter-valuation period.
C. Liquidity Risk: Employees with high salaries and long durations or those higher in hierarchy, accumulate significant
level of benefits. If some of such employees resign/retire from the Company there can be strain on the cashflows.
D. Market Risk: Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time
value of money. An increase in discount rate leads to decrease in 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.
E. Legislative Risk: Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to
change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the
companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit
Obligation and the same will have to be recognised immediately in the year when any such amendment is effective.
39.4 Details of Asset-Liability Matching Strategy:-
Gratuity Benefits liabilities of the Company are Funded. There are no minimum funding requirements for a Gratuity
Benefits plan in India and there is no compulsion on the part of the Company to fully or partially pre-fund the liabilities
under the Plan. The trustees of the plan have outsourced the investment management of the fund to an insurance
company. The insurance company in turn manages these funds as per the mandate provided to them by the trustees and
the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions
in the type of investments that can be held by the fund, it may not be possible to explicitly follow an asset-liability
matching strategy to manage risk actively in a conventional fund.
39.5 The expected payments towards contributions to the defined benefit plan is within one year.
39.6 The following payments are expected towards Gratuity in future years:
39.7 The average duration of the defined benefit plan obligation at the end of the reporting period is 8.68 years (March 31,
2025 : 9.14 years).
NOTE 40 : SHARE BASED PAYMENTS
The Company offers equity based option plan to its employees through the Company's stock option plan.
Borosil Employee Stock Option Scheme (ESOS) 2017
On November 02, 2017, the Company had introduced a Borosil Employee Stock Option Scheme 2017 (“ESOS”), which was
approved by the shareholders of the Company to provide equity settled incentive to specific employees of the Company.
The ESOS scheme includes tenure based stock options. The specific Employees to whom the Options are granted and their
Eligibility Criteria are determined by the Nomination and Remuneration Committee. The Company had granted 3,63,708
options to the employees on November 02, 2017 with an exercise price of '200 per share and further, 79,680 options were
granted to an employee on July 24, 2018 with exercise price of '254 per share. Exercise period is 5 years from the date of
respective vesting of options.
On account of Composite scheme of Amalgamation and Arrangement, the Board of Directors of the Company in its meeting
held on February 03, 2020, approved modification/amendments to the existing “Borosil Employee Stock Option Scheme
2017” with a view to restore the value of the employee stock options (“Options”) pre and post arrangement by providing
fair and reasonable adjustment and sought to provide revised exercise price to the existing Option-holders, to whom old
employee stock options had been granted under the ESOS 2017.
Pursuant to Composite Scheme of Amalgamation and Arrangement (Scheme), employment of these employees were
transferred to Borosil Limited with effect from February 12, 2020, but in terms of clause 30 of the said scheme, their entitlement
of options in the Company subsists.
The Nomination and Remuneration committee of the Board had approved adjusted exercise price of '72.25 per share for the
options granted on November 02, 2017 and '91.75 per share for the options granted on July 24, 2018.
During the year, the Company has granted 7,485 options and 5,10,100 options (previous year 25,000 at exercise price of
'400 per share) are exercisable at price of '481.00 per share and '491.00 per share, respectively for the options granted.
The Exercise period is 5 years from the date of vesting of respective options.
The fair values of options has been determined at the date of grant of the options. This fair value, adjusted by the Company's
estimate of the number of options that will eventually vest, is expensed over the vesting period.
The fair values were calculated using the Black-Scholes Model for tenure based options. The inputs to the model include
the share price at date of grant, exercise price, expected life, expected volatility, expected dividends and the risk free rate
of interest. Expected volatility has been calculated using historical return on share price. All options are assumed to be
exercised within six months from the date of respective vesting.
43.2 Fair Valuation techniques used to determine fair value
The Company maintains procedures to value its financial assets or financial liabilities using the best and most relevant
data available. The fair values of the financial assets and liabilities are included at the amount that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
I) Fair value of cash and cash equivalents, other bank balances, trade receivables, current loans, trade payables,
current borrowings, deposits and other current financial assets and liabilities are approximate at their carrying
amounts largely due to the short-term maturities of these instruments.
ii) The fair values of non-current borrowings, Security Deposits, Non Current Loans and Margin money are approximate
at their carrying amount due to interest bearing features of these instruments.
iii) Fair values of mutual fund are derived from published NAV (unadjusted) in active markets for identical assets.
iv) The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
v) Fair values of cross currency swap and interest rate swap contracts are determined using observable market data.
43.3 Fair value hierarchy
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation techniques:-
I) Level 1 Quoted prices / published NAV (unadjusted) in active markets for identical assets or liabilities. It includes
fair value of financial instruments traded in active markets and are based on quoted market prices at the balance
sheet date and financial instruments like mutual funds for which net assets value (NAV) is published by mutual fund
operators at the balance sheet date.
ii) Level 2 :- Inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices). It includes fair value of the financial instruments
that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation
techniques. These valuation techniques maximise the use of observable market data where it is available and rely
as little as possible on the Company specific estimates. If all significant inputs required to fair value an instrument
are observable then instrument is included in level 2.
iii) Level 3 :- Inputs for the asset or liability that are not based on observable market data (that is, unobservable
inputs). If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3.
The following table provides hierarchy of the fair value measurement of Company's asset and liabilities, grouped
into Level 1 (Quoted prices in active markets), Level 2 (Significant observable inputs) and Level 3 (Significant
unobservable inputs) as described below:
NOTE 44 : FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES
The Company is exposed to market risk, credit risk and liquidity risk. Risk management is carried out by the Company under
policies approved by the board of directors. This Risk management plan defines how risks associated with the Company will
be identified, analysed, and managed. It outlines how risk management activities will be performed, recorded, and monitored
by the Company. The basic objective of risk management plan is to implement an integrated risk management approach
to ensure all significant areas of risks are identified, understood and effectively managed, to promote a shared vision of
risk management and encourage discussion on risks at all levels of the organization to provide a clear understanding of
risk/benefit trade-offs, to deploy appropriate risk management methodologies and tools for use in identifying, assessing,
managing and reporting on risks, and to determine the appropriate balance between cost and control of risk and deploy
appropriate resources to manage/optimize key risks. Activities are developed to provide feedback to management and other
interested parties (e.g. Audit committee, Board etc.). The results of these activities ensure that risk management plan is
effective in the long term.
44.1 Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market prices comprise three types of risk: foreign currency rate risk, interest rate risk and other price
risks, such as equity price risk and commodity risk.
Financial instruments affected by market risk include loans and borrowings, deposits and investments.
The sensitivity analysis is given relate to the position as at March 31, 2026 and as at March 31,2025.
The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post-employment
benefit obligations, provisions and on the non-financial assets and liabilities. The sensitivity of the relevant Statement
of Profit and Loss item is the effect of the assumed changes in the respective market risks. The Company's activities
expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest
rates. This is based on the financial assets and financial liabilities held as at March 31, 2026 and as at March 31, 2025.
(a) Foreign exchange risk and sensitivity
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates
relates primarily to the Company's operating activities. The Company transacts business primarily in USD, JPY
and EURO. The Company has obtained foreign currency loans, loan given to foreign subsidiaries, foreign currency
trade payables, trade receivables, other receivables and capital creditors, cross currency swap and is therefore,
exposed to foreign exchange risk. The Company regularly reviews and evaluates exchange rate exposure arising
from foreign currency transactions.
The following table demonstrates the sensitivity in the USD, JPY and EURO to the Indian Rupee with all other
variables held constant. The impact on the Company's profit before tax due to changes in the fair values of monetary
assets and liabilities is given below:
b) Interest rate risk and sensitivity
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company having non current borrowing in the form of Term Loan. Also, the
Company is having current borrowings in the form of working capital facility. There is a fixed rate of interest in case
of foreign currency Term Loan hence, there is no interest rate risk associated with this borrowing. The Company is
exposed to interest rate risk associated with Term Loan and working capital facility due to floating rate of interest.
The Company has entered into interest rate swap and cross currency swap to mitigate the risk in respect of floating
rate of interest.
The table below illustrates the impact of a 2% increase in interest rates on interest on financial liabilities assuming
that the changes occur at the reporting date and has been calculated based on risk exposure outstanding as of
date. The year end balances are not necessarily representative of the average debt outstanding during the year.
This analysis also assumes that all other variables, in particular foreign currency rates, remain constant.
c) Commodity price risk:-
The Company is exposed to the movement in price of key consumption materials in domestic and international
markets. The Company entered into contracts for procurement of material, most of the transactions are short term
fixed price contract and hence Company is not exposed to significant risk.
44.2 Credit risk
Credit risk is the risk that a counter party 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 receivables)
and from its financing activities, including deposits with banks, loan to subsidiaries and other financial instruments.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant
increase in credit risk on an ongoing basis through each reporting year. To assess whether there is a significant increase
in credit risk, the Company compares the risk of default occurring on asset as at the reporting date with the risk of default
as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:
i) Actual or expected significant adverse changes in business,
ii) Actual or expected significant changes in the operating results of the counterparty,
iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to
meet its obligations,
iv) Significant increase in credit risk on other financial instruments of the same counterparty,
v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party
guarantees or credit enhancements.
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage
in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues
to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are
recognised as income in the statement of profit and loss. The Company measures the expected credit loss of trade
receivables based on historical trend, industry practices and the business environment in which the entity operates.
Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of
receivable is not material hence no additional provision considered.
a) Trade Receivables:-
The Company extends credit to customers in normal course of business. The Company considers factors such
as credit track record in the market and past dealings with the Company for extension of credit to customers. The
Company monitors the payment track record of the customers. Outstanding customer receivables are regularly
monitored. The Company evaluates the concentration of risk with respect to trade receivables as low, as its
customers are located in several jurisdictions and industries and operate in largely independent markets. Revenue
of ' Nil (previous year '27,315.30 lakhs) from customers represents more than 10% of the Company revenue for
the year ended March 31, 2026. The history of trade receivables shows a negligible provision for bad and doubtful
debts. Therefore, the Company does not expect any material risk on account of non performance by any of the
counterparties.
b) Financial instruments and cash deposits:-
The Company considers factors such as track record, size of the institution, market reputation and service
standards to select the banks with which balances are maintained. Credit risk from balances with bank is managed
by the Company's finance department. Investment of surplus funds are also managed by finance department. The
Company does not maintain significant cash in hand. Excess balance of cash other than those required for its day
to day operations is deposited into the bank.
For other financial instruments, the finance department assesses and manage credit risk based on internal
assessment. Internal assessment is performed for each class of financial instrument with different characteristics.
44.3 Liquidity risk.
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses. The Company's objective is to, at all times, maintain optimum levels of liquidity
to meet its cash and collateral requirements. The Company relies operating cash flows and short term borrowings
in the form of working capital facility to meet its needs for funds. Company does not breach any covenants (where
applicable) on any of its borrowing facilities. The Company has access to a sufficient variety of sources of funding as per
requirement.
The table below provides undiscounted cash flows towards financial liabilities into relevant maturity based on the
remaining period at the balance sheet to the contractual maturity date.
NOTE 46 : CAPITAL MANAGEMENT
For the purpose of Company's capital management, capital includes issued capital, all other equity reserves and debts.
The primary objective of the Company's capital management is to maximise shareholders value. The Company manages
its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the
financial covenants.
The Company monitors capital using gearing ratio, which is net debt divided by total capital (equity plus net debt). Net debt
are non-current and current debts as reduced by cash and cash equivalents and current investments. Equity comprises all
components including other comprehensive income.
49.3 ' Nil (previous year '27,315.30 lakhs) from customers represents more than 10% of the Company revenue for the year
ended March 31, 2026.
49.4 No Non-Current Assets of the Company is located outside India as on March 31, 2026 and March 31, 2025.
NOTE 50 : OTHER STATUTORY INFORMATION
50.1 There are no balances outstanding on account of any transaction with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956.
50.2 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
50.3 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) 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.
50.4 The Company has not received any fund from any person(s) or entity(s), including entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the (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.
50.5 The Company does not have any such transaction which is not recorded in the books of account that has been
surrendered or disclosed as income during the year in the tax assessments under the Income-tax act, 1961.
50.6 The Company is not declared wilful defaulter by any bank or financial institution or other lender.
50.7 The Company does not have more than two layers of subsidiary as prescribed under Section 2(87) of the Companies
Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.
NOTE 51
Detail of loans given, investment made and guarantee given covered u/s 186 (4) of the Companies Act, 2013.
Loans given and investment made are given under the respective heads.
NOTE 52
The figures for the corresponding previous year have been rearranged/regrouped wherever necessary, to make them
comparable.
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