1.15 Provision
Provisions are recognised when the Company has a present legal or constructive obligation as a result of a past event and it is probable that
an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised
for future operating losses.
Provisions are measured at the present value of management's best estimates of the expenditure required to settle the present obligation
at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market
assessments of the time value of money and the risk specific to the liability. The increase in the provision due to the passage of time is
recognised as interest expense.
1.16 Dividends, interest income and interest expense
Dividend Income is recognised in profit or loss on the date on which the Company's right to receive payment is established.
Interest income or expense is recognised using the effective interest method
The 'effective interest rate' is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the
financial instrument to:
• the gross carrying amount of the financial asset; or
• the amortised cost of the financial liability
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset
is not credit-impaired) or to the amortised cost of the liability. However, for financial assets that have become credit-impaired subsequent
to initial recognition, interest income is calculated by applying the effective interest rate to the amortised cost of the financial asset. If
the asset is no longer credit-impaired, then the calculation of interest income reverts to the gross basis.
1.17 Current/ non-current classification
The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is classified as
current when it satisfies any of the following criteria:
• It is expected to be realised or intended to sold or consumed in normal operating cycle
• It is held primarily for the purpose of trading
• It is expected to be realised within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period
Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.
A liability is current when it satisfies any of the following criteria:
• It is expected to be settled in normal operating cycle
• It is held primarily for the purpose of trading
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
Current liabilities include the current portion of long term financial liabilities. The Company classifies all other liability as non-current.
Deferred tax assets or liabilities are classified as non-current asset or liabilities.
The operating cycle is the time between acquisition of assets and their realisation in cash and cash equivalents. The Company has
identified twelve months as its operating cycle.
Based on the time involved between the acquisition of assets for processing and their realization in cash and cash equivalents, the
company has identified twelve months as its operating cycle for determining current and non-current classification of assets and liabilities
in the balance sheet.
2.1 Critical Estimates And Judgement
The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions.
These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities,
the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses
during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments
and the use of assumptions in these financial statements have been disclosed below. Accounting estimates could change from period to
period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of
changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which
changes are made and, if material, their effects are disclosed in the notes to the financial statements.
Assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year
ending 31 March 2026 is included in the following notes:
• Note 6: impairment assessment of investments in subsidiaries and associates carried at cost
• Note 17: measurement of defined benefit obligations - key actuarial assumptions;
• Note 38: determination of fair value of financial assets;
2.2 Recent accounting pronouncements- Standards issued but not yet effective
Ind AS 1 - Presentation of Financial Statements - If a covenant breach occurs on or before the reporting date and the liability
becomes payable on demand, it must be classified as current, even if the lender subsequently agrees not to demand repayment.
It is classified as current because, at the reporting date, the entity does not have the right to defer settlement for at least 12
months. However, if the lender has already provided—by the reporting date—a grace period extending at least 12 months beyond
that date, during which the breach can be rectified and repayment cannot be demanded, the liability is classified as non-current.
This amendment is to be applied retrospectively for annual reporting periods beginning on or after 1 April 2026, in accordance with Ind
AS 8, Accounting Policies, Changes in Accounting Estimates and Errors.
(B) Measurement of Fair Values(i) Fair value hierarchy
The fair value measurement for all the investment property has been categorised as a Level 3 fair value based on the inputs to the
valuation technique used.
(ii) Valuation Technique
The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum, area, location,
demand, restrictive entry to the complex, age of building and trend of fair market rent in the area.
* The direct operating expenses include property tax, electricity and maintenance expenses amounting to D16.61 lakhs (31 March 2025-
D18.21 lakhs ) incurred during the year which has been reimbursed by the tenant.
(D) Leasing arrangements
The Company has given certain investment properties on operating lease arrangements. These lease arrangements range for a period
up to 2 years and are cancellable in nature. The leases are renewable for a further period on mutually agreeable terms.
(i) Loan to related parties amouting D40 Lakhs represents loan given to Dhunseri Infrastructure Limited, a subsidiary, bearing interest
rate of 9% p.a. and the outstanding amount as on 31 March 2026 is D200.00 lakhs (As on 31 March 2025-D160.00 lakhs).
(ii) Loan to related parties amouting D2,250 Lakhs represents loan given to Dhunseri Tea & Industries Limited, an associate, bearing
interest rate of 8% p.a. the entire loan, along with the applicable interest, has been received back by the Company on 30th August,
2024.and the outstanding amount as on 31 March 2026 is Nil (As on 31 March 2025- Nil).
(iii) Loan to related parties amouting D4,000 Lakhs represents loan given to Dhunseri Poly Films Private Limited, a subsidiary, bearing
interest rate of 9.2% p.a. and the outstanding amount as on 31 March 2026 is D4,050.81 lakhs (As on 31 March 2025-DNil).
(b) Terms/ Rights attached to Equity Shares
The Company has one class of equity share having a par value of H10/- each. Each shareholder is eligible for one vote per share held.
The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting
except in the case of interim dividend. In the event of liquidation the equity shareholders are eligible to receive the remaining assets
of the Company after distribution of all preferential amounts in proportion to their shareholding.
16. Provisions (Contd.)
The Company has a defined gratuity plan in India with LICI, governed by the Payment of Gratuity Act, 1972. The plan entitles an employee,
who has rendered at least five years of continuous service, to gratuity, at the rate of fifteen days salary/wages for every completed year of
service or part thereof in excess of six months, based on the rate of salary/wages last drawn by the employee concerned.
The defined benefit plan for gratuity is administered by a single gratuity fund that is legally separate from the Company. The board of
the gratuity fund is required by law to act in the best interests of the plan participants and is responsible for setting certain policies (e.g.
investment and contribution policies) of the fund.
These defined benefit plans expose the Company to actuarial risks, such as longevity risk, currency risk, interest rate risk and market
(investment) risk.
A. Funding
The Plan is funded by the Company. The funding requirements are based on the gratuity fund's actuarial measurement framework
set out in the funding policies of the plan. The funding of the plan is based on a separate actuarial valuation for funding purposes for
which the assumptions may differ from the assumptions set out in (E). Employees do not contribute to the plan.
The Company expects to pay H12.06 lakhs (31 March 2025 - H1.23 lakhs) in contribution to its defined benefit plans in 2026-27.
B. Reconciliation of the net defined benefit (asset)/ liability
The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit (asset)
liability and its components
(i) Out of the above, the interest rate for the borrowings of H122 lakhs (PY- H153.86) is 9.00%. The same is repayable in 38 further equated
monthly instalments, the last instalment being on 7 May 2029. The loan is secured against the motor car purchased. (Refer Note 3)
Out of the above, the interest rate for the borrowings of H14.67 lakhs (PY- H18.39) is 9.00%. The same is repayable in 39 further equated
monthly instalments, the last instalment being on 5 June 2029. The loan is secured against the motor car purchased. (Refer Note 3)
The interest rate for the borrowings of H15.31 lakhs (PY- H27.52 lakhs)is 6.69%. The same is repayable in 14 further equated monthly
instalments, the last instalment being on 7 May 2027. The loan is secured against the motor car purchased. (Refer Note 3)
For the remaining loan of H3,000 lakhs, interest rate will be 8.90%. The same is repayable on demand and is secured against investments
(Refer Note 6D)
(ii) The Company's exposure to liquidity risk is disclosed in Note 35.
(iii) Borrowings have been sanctioned based on pledge of Company's current and non-current investments, for which no returns are
required to be submitted to the banks or financial institutions.
33. a) Contingent liability as at 31 March 2026 is JNil (Previous year H Nil).
b) Commitments
As of 31 March 2026 and 31 March 2025, the Company has committed to providing financial support to its subsidiaries, Dhunseri
Infrastructure Ltd and Twelve Cupcakes Pte. Ltd, in relation to their operations.
34. Leases
A. Leases as lessee
i. Short-term
The Company has taken on lease, premises at various location under operating leases. The lease arrangements are cancellable by
either of the parties after giving a notice of 3 months. The Company has elected not to recognise right-of-use assets and lease liabilities
for these leases.
Lease payments for short-term leases not included in the measurement of the lease liability are classified as cash flows from
operating activities.
ii. Right-of-use asset and lease liabilities recognised in the financial statements represents the Company's lease of office premises.
The lease is for a period of 3 years . There being no variable component of lease rentals.
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be made after
the reporting date:
B. Leases as lessor
The Company leases out its investment property. The Company has classified these leases as operating leases, because they do not
transfer substantially all of the risks and rewards incidental to the ownership of the assets.
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received after
the reporting date.
The Company's activities expose it to the following risks arising from financial instruments:
• Credit Risk (See 35 (ii));
• Liquidity Risk (See 35 (iii));
• Market Risk (See 35 (iv));
i. Risk Management Framework
The Company is exposed to normal business risks from changes in market interest rates and currency exchange rates and from non¬
performance of contractual obligations by counterparties. The Company does not hold or issue derivative financial instruments for
speculative or trading purposes.
Risk management is integral to the whole business of the Company. The Company has a system of controls in place to create an acceptable
balance between the cost of risks occurring and the cost of managing the risks. The management continually monitors the Company's
risk management process to ensure that an appropriate balance between risk and control is achieved.
ii. Credit risk
Credit Risk is the risk that the counterparty will not meet its obligations under a financial instrument or a customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities, including deposits with banks and financial institutions,
foreign exchange transactions and other financial instruments.
Credit Risks for balances with banks and financial institutions is managed by the Company's treasury department in accordance with
the Company Policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each
counterparty. The limits are set to minimise the concentration of risk and therefore mitigate financial loss through counterparties potential
failure to make payments. Such limits are reviewed from time to time.
Trade receivables
The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the
Company's standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 6(A), 6(B),
7, 8, 10, 12, 13.
iii. Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are
settled by delivering cash or another financial asset.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through
an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic
nature of the underlying businesses, the Company treasury maintains flexibility in funding by maintaining availability under committed
credit lines. Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of
expected cash flows.
As of 31 March 2026, the Company had cash and bank balances of D2,026.44 lakhs. As of 31 March 2025, the Company had cash and
bank balances of D3,595.13 lakhs.
Exposure to Liquidity Risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted,
and include contractual interest payments and exclude the impact of netting agreements:
iv. Market Risk
Market risk is the risk that changes in market prices - such as prices of securities- will affect the Company's income or the value of its holdings
of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return. The company has very limited exposure in foreign currency denominated assets and liablities.
Further the company deals in only fixed rate financial instruments and hence has no exposure pertaining to interest rate risk.
a) Price Risk
Exposure
The Company's exposure to equity securities and mutual funds price risk arises from investments held by the Company and classified in
the Balance Sheet either at fair value through OCI or at fair value through profit or loss.
To manage its price risk arising from investments in equity securities and mutual funds, the Company diversifies its portfolio. Diversification
of the portfolio is done in accordance with the limits set by the Company.
The majority of the Company's equity investments are publicly traded.
Sensitivity
The table below summarises the impact of increases/decreases of the index on the Company's equity and profit for the period. The table
below summarises the impact of increases/decreases of the index on the Company's equity and profit for the period. The analysis is
based on the assumption that the equity index had increased by 5% or decreased by 5% with all other variables held constant, and that
the Company's equity instruments moved in line with the index.
36. Capital Risk Management
(a) Risk Management
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns
to our shareholders.
The capital structure of the Company is based on management's judgement of the appropriate balance of key elements in order
to meet its strategic and day to day needs. The management considers the amount of capital in proportion to risk and manage the
capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets.
The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor,
creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate
steps in order to maintain, or if necessary adjust, its capital structure.
B. Measurement of Fair Values
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that
have quoted/ published price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the
closing price as at the reporting period.
Level 2: Level 2 hierarchy includes financial instruments measured using unquoted prices. The mutual funds are valued using the
closing NAV.
Level 3: Level 3 hierarchy includes financial instruments that are not based on observable market data (unobservable inputs).
The fair value of investments in unquoted mutual funds and units of venture capital funds (categorised under Level 2 fair value
hierarchy) is determined by reference to quotes from the financial institutions i.e. Net asset value (NAV) for investments in mutual
funds/units of venture capital funds as declared by such financial institutions.
38. Related Party Transactions (Contd.)
(f) Firm in which relative of director is a partner
Khaitan & Co. LLP
TPT Ventures LLP
(g) Relative of KMP
Mrigank Dhanuka Advisor to the Board
* During the year the company has recognised impairment loss pertaining to investments held in Twelve Cupcakes Pte Limited (subsidiary
of the Company) post filing of Creditors' Voluntary Winding-up proceedings on 29 October 2025 under the applicable laws and
regulations of Singapore.
** During the FY 2024-25, the company sold 80.83% stake of DVL USA Inc to Dhunseri Overseas Pvt. Ltd.
(5) Terms and Conditions
Transactions relating to dividends were on the same term and conditions that applied to other shareholders. Transactions relating to
acquisitions and disposal of investment are made based on independent valuation report. Transactions relating to rental and royalty
income and rent and service charges are as per terms of related agreements. All other transactions are made on normal commercial
terms and conditions.
All related party transaction are reviewed by the Audit Committee of the Company.
All outstanding balances are unsecured and are receivable/ repayable in cash.
41. There are no material events after the reporting period till the date of issue of these standalone financial statements.
42. On 21 November 2025, the Government of India notified four new Labour Codes ("Labour Codes") consolidating twenty-nine hitherto
existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial
impact due to these Labour Codes. The Company has estimated and accounted for incremental liability pertaining to employee benefit
obligations, which is not material to the standalone financial statements. The Company continues to monitor the developments
pertaining to enactment of these Labour Codes and evaluate impact, if any.
43. During the year, Company has recognised impairment loss pertaining to investments held in Twelve Cupcakes Pte Limited (subsidiary of
the Company) post filing of Creditors' Voluntary Winding-up proceedings on 29 October 2025 under the applicable laws and regulation
of Singapore.
44. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company
(Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the funding party
("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
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