3.15 Provisions
Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that the
Company will be required to settle the obligation,
and a reliable estimate can be made of the amount
of the obligation.
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.
When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of those
cash flows (when the effect of the time value of
money is material).
Warranties
The estimated liability for product warranties is
recorded when products are sold. These estimates
are established using historical information on the
nature, frequency and average cost of warranty
claims and management estimates regarding
possible future incidence based on corrective
actions on product failures. The timing of outflows
will vary as and when warranty claim will arise.
The initial estimate of warranty-related costs is
revised annually.
Onerous contracts
An onerous contract is a contract under which
the unavoidable costs (i.e., the costs that the
Company cannot avoid because it has the
contract) of meeting the obligations under the
contract exceed the economic benefits expected
to be received under it. The unavoidable costs
under a contract reflect the least net cost of
exiting from the contract, which is the lower of
the cost of fulfilling it and any compensation or
penalties arising from failure to fulfil it. The cost of
fulfilling a contract comprises the costs that relate
directly to the contract (i.e., both incremental
costs and an allocation of costs directly related
to contract activities). If the Company has a
contract that is onerous, the present obligation
under the contract is recognised and measured
as a provision.
Contingent liabilities
A disclosure for a contingent liability is made
when there is a possible obligation or a present
obligation that may, but probably will not, require
an outflow of resources. When the likelihood of
outflow of resources is remote, no provision or
disclosure is made.
Provisions, contingent liabilities are reviewed at
each Balance Sheet date.
3.16 Financial instruments
A financial instrument is any contract that
gives rise to a financial asset of one entity
and a financial liability or equity instrument of
another entity.
Financial assets and financial liabilities are
recognised when the Company becomes a party to
the contractual provisions of the instruments.
Financial assets and financial liabilities are
classified, at initial recognition, and subsequently
measured at amortised cost, fair value through
other comprehensive income (OCI), and fair value
through profit or loss except Trade receivables
that do not contain a significant financing
component or for which the Company has applied
the practical expedient are measured at the
transaction price determined under Ind AS 115.
Transaction costs that are directly attributable
to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and
financial liabilities at fair value through profit or
loss) are added to or deducted from the fair value
of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value
through profit or loss are recognised immediately
in profit or loss.
3.17 Financial assets
All recognised financial assets are subsequently
measured in their entirety at either amortised cost
or fair value through profit and loss or fair value
through other comprehensive income, depending
on the classification of the financial assets.
Classification and Measurement of
financial assets
Debt instruments that meet the following
conditions are subsequently measured at
amortised cost (except for debt instruments that
are designated at fair value through profit or loss
on initial recognition):
• the asset is held within a business model
whose objective is to hold assets in order to
collect contractual cash flows; and
• the contractual terms of the instrument give
rise on specified dates to cash flows that are
solely payments of principal and interest
(SPPI) on the principal amount outstanding.
Debt instruments that meet the following
conditions are subsequently measured at fair
value through other comprehensive income
("FVTOCI") (except for debt instruments that are
designated at fair value through profit or loss on
initial recognition):
• the asset is held within a business model
whose objective is achieved both by
collecting contractual cash flows and selling
financial assets; and
• the contractual terms of the instrument give
rise on specified dates to cash flows that are
solely payments of principal and interest on
the principal amount outstanding.
Interest income and impairment losses or
reversals are recognised in the profit or loss and
computed in the same manner as for financial
assets measured at amortised cost. The remaining
fair value changes are recognised in OCI. Upon
de-recognition, the cumulative fair value changes
recognised in OCI is reclassified from the equity to
profit or loss.
All other financial assets are subsequently
measured at fair value through profit or loss.
Effective interest method
The effective interest method is a method
of calculating the amortised cost of a debt
instrument and of allocating interest income
over the relevant period. The effective interest
rate is the rate that exactly discounts estimated
future cash receipts (including all fees and points
paid or received that form an integral part of the
effective interest rate, transaction costs and other
premiums or discounts) through the expected
life of the debt instrument, or, where appropriate,
a shorter period, to the net carrying amount on
initial recognition.
Income is recognised on an effective interest basis
for debt instruments other than those financial
assets classified at FVTPL. Interest income is
recognised in profit or loss and is included in the
"Other income" line item.
Financial assets at fair value through profit
or loss (FVTPL)
Investments in equity instruments are classified at
FVTPL, unless the Company irrevocably elects on
initial recognition to present subsequent changes
in fair value in other comprehensive income for
investments in equity instruments which are not
held for trading.
Debt instruments that do not meet the amortised
cost criteria or FVTOCI criteria are measured at
FVTPL. In addition, debt instruments that meet the
amortised cost criteria or the FVTOCI criteria but
are designated at FVTPL are measured at FVTPL.
A financial asset that meets the amortised cost
criteria or debt instruments that meet the FVTOCI
criteria may be designated at FVTPL upon
initial recognition if such designation eliminates
or significantly reduces a measurement or
recognition inconsistency that would arise from
measuring assets or liabilities or recognising the
gains and losses on them on different bases.
Financial assets at FVTPL are measured at fair
value at the end of each reporting period, with
any gains or losses arising on re-measurement
recognised in profit or loss. The net gain or loss
recognised in profit or loss incorporates any
dividend or interest earned on the financial
asset and is included in the 'Other income' line
item. Dividend on financial assets at FVTPL is
recognised when the Company's right to receive
the dividends is established, it is probable that
the economic benefits associated with the
dividend will flow to the entity, the dividend does
not represent a recovery of part of cost of the
investment and the amount of dividend can be
measured reliably.
Financial assets designated at fair value
through OCI (equity instruments)
Upon initial recognition, the Company can elect
to classify irrevocably its equity investments
as equity instruments designated at fair value
through OCI when they meet the definition of
equity under Ind AS 32 Financial Instruments:
Presentation and are not held for trading. The
classification is determined on an instrument-by¬
instrument basis.
Gains and losses on these financial assets are
never recycled to profit or loss. Dividends are
recognised as other income in the statement of
profit and loss when the right of payment has been
established, except when the Company benefits
from such proceeds as a recovery of part of the
cost of the financial asset, in which case, such
gains are recorded in OCI. Equity instruments
designated at fair value through OCI are not
subject to impairment assessment.
Impairment of financial assets
The Company applies the expected credit
loss model for recognising impairment loss on
financial assets measured at amortised cost,
debt instruments at FVTOCI, trade receivables,
other contractual rights to receive cash or other
financial asset, and financial guarantees not
designated at FVTPL.
The Company measures the loss allowance for
a financial instrument at an amount equal to
the lifetime expected credit losses if the credit
risk on that financial instrument has increased
significantly since initial recognition.
Further, for the purpose of measuring lifetime
expected credit loss allowance for trade
receivables, the Company has used a practical
expedient as permitted under Ind AS 109. This
expected credit loss allowance is computed
based on historical credit loss experience and
adjustments for forward looking information.
Derecognition of financial assets
The Company de-recognises a financial asset
when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of
ownership of the asset to another party.
3.18 Financial liabilities and equity instruments
Classification as financial liability or equity
Debt and equity instruments issued by Company
are classified as either financial liabilities or as
equity in accordance with the substance of the
contractual arrangements and the definitions of a
financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that
evidences a residual interest in the assets of an
entity after deducting all of its liabilities.
Financial liabilities
Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or
loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of
repurchasing in the near term.
Gains or losses on liabilities held for trading are
recognised in the profit or loss.
Financial liabilities designated upon initial
recognition at fair value through profit or loss
are designated as such at the initial date of
recognition, and only if the criteria in Ind AS 109
are satisfied. For liabilities designated as FVTPL,
fair value gains / losses attributable to changes
in own credit risk are recognized in the other
comprehensive income. These gains/ loss are not
subsequently transferred to P&L. However, the
Company may transfer the cumulative gain or
loss within equity. All other changes in fair value
of such liability are recognised in the statement of
profit or loss.
The carrying amounts of financial liabilities that
are subsequently measured at amortised cost
are determined based on the effective interest
method. Interest expense that is not capitalised as
part of cost of an asset is included in the 'Finance
costs' line item.
The effective interest method is a method of
calculating the amortised cost of a financial
liability and of allocating interest expense over
the relevant period. The effective interest rate is
the rate that exactly discounts estimated future
cash payments (including all fees and points
paid or received that form an integral part of the
effective interest rate, transaction costs and other
premiums or discounts) through the expected life
of the financial liability.
All financial liabilities are subsequently measured
at amortised cost using the effective interest
method or at FVTPL.
Derecognition of financial liabilities
The Company de-recognises financial liabilities
when, and only when, the Company's obligations
are discharged, cancelled or have expired.
Reclassification of financial assets
and liabilities
The Company determines classification of
financial assets and liabilities on initial recognition.
After initial recognition, no reclassification is made
for financial assets which are equity instruments
and financial liabilities. For financial assets which
are debt instruments, a reclassification is made
only if there is a change in the business model
for managing those assets. Changes to the
business model are expected to be infrequent.
The Company's senior management determines
change in the business model as a result of
external or internal changes which are significant
to the Company's operations.
3.19 Derivative Instruments
Initial recognition and
subsequent measurement
The Company uses derivative financial
instruments, such as forward currency contracts
to hedge its foreign currency risks. Such derivative
financial instruments are initially recognised at fair
value on the date on which a derivative contract
is entered into and are subsequently re-measured
at fair value. Derivatives are carried as financial
assets when the fair value is positive and as
financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the
fair value of derivatives are taken directly to profit
or loss, except for the effective portion of cash
flow hedges, which is recognised in OCI and later
reclassified to profit or loss when the hedge item
affects profit or loss or treated as basis adjustment
if a hedged forecast transaction subsequently
results in the recognition of a non-financial asset
or non-financial liability.
3.20 Cash and cash equivalents
Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short¬
term deposits with an original maturity of three
months or less, that are readily convertible to a
known amount of cash and which are subject to an
insignificant risk of changes in value.
For the purpose of the standalone statement of
cash flows, cash and cash equivalents consist of
cash and short-term deposits, as defined above,
net of outstanding bank overdrafts as they are
considered an integral part of the Company's
cash management.
3.21 Dividend
The Company recognises a liability to make
dividend distributions to equity holders of the
Company when the distribution is authorised and
the distribution is no longer at the discretion of
the Company. As per the corporate laws in India
a distribution is authorised when it is approved by
the shareholders, However, Board of Directors of
a Company may declare interim dividend during
any financial year out of the surplus in statement
of profit and loss and out of the profits of the
financial year in which such interim dividend is
sought to be declared. A corresponding amount is
recognised directly in other equity.
3.22 Earnings per share
Basic earnings per share is computed by
dividing the profit after tax by the weighted
average number of equity shares outstanding
during the year.
Diluted earnings per share is computed by dividing
the profit after tax as adjusted for dividend,
interest and other charges to expense or income
relating to the dilutive potential equity shares, by
the weighted average number of equity shares
considered for deriving basic earnings per share
and the weighted average number of equity shares
which could have been issued on the conversion of
all dilutive potential equity shares.
3.23 Investment in subsidiaries
and joint ventures
A subsidiary is an entity that is controlled by
another entity. An associate is an entity over
which the Company has significant influence.
Significant influence is the power to participate
in the financial and operating policy decisions of
the investee but is not control or joint control over
those policies.
A joint venture is a type of joint arrangement
whereby the parties that have joint control of the
arrangement have rights to the net assets of the
joint venture. Joint control is the contractually
agreed sharing of control of an arrangement,
which exists only when decisions about the
relevant activities require unanimous consent of
the parties sharing control.
The Company's investments in its subsidiaries
and joint ventures are accounted at cost
less impairment.
Impairment of investments
The Company reviews its carrying value of
investments carried at cost annually, or more
frequently when there is indication for impairment.
If the recoverable amount is less than its carrying
amount, the impairment loss is recorded in the
Statement of Profit and Loss.
When an impairment loss subsequently
reverses, the carrying amount of the Investment
is increased to the revised estimate of its
recoverable amount, so that the increased
carrying amount does not exceed the cost of
the Investment. A reversal of an impairment
loss is recognised immediately in Statement of
Profit or Loss.
3.24 Events after the reporting period
If the Company receives information after the
reporting period, but prior to the date of approved
for issue, about conditions that existed at the
end of the reporting period, it will assess whether
the information affects the amounts that it
recognises in its standalone financial statements.
The Company will adjust the amounts recognised
in its financial statements to reflect any adjusting
events after the reporting period and update the
disclosures that relate to those conditions in light
of the new information. For non-adjusting events
after the reporting period, the Company will not
change the amounts recognised in its standalone
financial statements, but will disclose the nature
of the non-adjusting event and an estimate of
its financial effect, or a statement that such an
estimate cannot be made, if applicable.
3.25 New and amended standards
The Company applied for the first-time certain
standards and amendments, which are effective
for annual periods beginning on or after April 1,
2025. The Company has not early adopted any
standard, interpretation or amendment that has
been issued but is not yet effective.
(i) Amendments to Ind AS 21 - Lack of
exchangeability
The Ministry of Corporate Affairs (MCA)
notified the Companies (Indian Accounting
Standards) Amendment Rules, 2025, which
amend Ind AS 21, The Effects of Changes in
Foreign Exchange Rates to specify how an
entity should assess whether a currency is
exchangeable and how it should determine
a spot exchange rate when exchangeability
is lacking. The amendments also require
disclosure of information that enables users
of its financial statements to understand how
the currency not being exchangeable into
the other currency affects, or is expected to
affect, the entity's financial performance,
financial position and cash flows. The
amendments are effective for annual
reporting periods beginning on or after April
1, 2025. When applying the amendments,
an entity cannot restate comparative
information. The amendments do not
have a material impact on the Company's
financial statements.
(ii) Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and
Non-current Liabilities with Covenants
In August 2025, the MCA notified
amendments to paragraphs 69 to 76 of
Ind AS 1 to specify the requirements for
classifying liabilities as current or non¬
current. The amendments clarify:
• What is meant by a right to
defer settlement
• That a right to defer must exist at the
end of the reporting period
• That classification is unaffected by the
likelihood that an entity will exercise
its deferral right
• That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability
not impact its classification
In addition, a requirement has been
introduced to require disclosure when a
liability arising from a loan agreement is
classified as non-current and the entity's
right to defer settlement is contingent
on compliance with future covenants
within twelve months.
If there is a breach of a material covenant of
a long term loan arrangement on or before
the end of the reporting period, resulting in
the liability becoming payable on demand
as at the reporting date, and the lender
agrees—after the reporting period but
before the financial statements are approved
for issue—not to demand repayment for at
least 12 months as a consequence of the
breach, this shall be treated as an adjusting
event. Accordingly, the entity is not required
to classify the liability as current.
The amendments are effective for
annual reporting periods beginning on
or after April 1, 2025 retrospectively in
accordance with Ind AS 8.
(iii) Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements
In August 2025, the MCA notified
amendments to Ind AS 7 Statement of Cash
Flows and Ind AS 107 Financial Instruments:
Disclosures to clarify the characteristics of
supplier finance arrangements and require
additional disclosure of such arrangements.
The disclosure requirements in the
amendments are intended to assist users of
financial statements in understanding the
effects of supplier finance arrangements on
an entity's liabilities, cash flows and exposure
to liquidity risk.
The amendments do not have a
material impact on the Company's
financial statements since the Company
has not entered into any supplier
finance arrangements.
(iv) International Tax Reform—Pillar Two
Model Rules - Amendments to Ind AS 12
In August 2025, the MCA notified
amendments to Ind AS 12 Income Taxes
in response to the OECD's BEPS Pillar Two
rules and include:
• A mandatory temporary exception
to the recognition and disclosure
of deferred taxes arising from the
jurisdictional implementation of the
Pillar Two model rules; and
• Disclosure requirements for affected
entities to help users of the financial
statements better understand an
entity's exposure to Pillar Two income
taxes arising from that legislation,
particularly before its effective date.
The mandatory temporary exception - the
use of which is required to be disclosed
- applies immediately. The remaining
disclosure requirements apply for annual
reporting periods beginning on or after April
1, 2025, but not for any interim periods
ending on or before March 31, 2026.
The amendments had no impact on the
Company's consolidated financial statements
as the Company is not in scope of the Pillar
Two model rules.
There are no unbilled receivables, hence the same is not disclosed in the ageing schedule
Trade receivables are non-interest bearing. No trade receivables, loans and advances or other receivables are due from directors
or other officers of the company either severally or jointly with any other person. Nor any trade or other receivable are due from
firms or private companies respectively in which any director is a partner, a director or a member.
All domestic sales are on advance payment basis, except for sale to certain distributors, institutional sales and Canteen stores
Department which carries credit period of a maximum of 60 days.
Export sales carry credit period of 0 to 270 days, depending on the contractual terms with respective customers.
For terms and condition for related party sales refer note 46.
Provision for warranty claims represents the present value of the management's best estimate of the future economic costs that
will be required under the Company's obligations for warranties. The estimate has been made on the basis of historical warranty
trends and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality.
Provision for onerous contract represents management's best estimate of the costs that will be required under the Company's
obligations towards coupon based service contracts. This provision represents unavoidable costs under coupon based service
contracts reflect the net cost of fulfilling the contract, which is the higher than the compensation arising from its fulfilment. The
estimate has been made on the basis of expected costs required to be incurred for fulfilment of a contract.
(i) The deferred revenue arises as a result of:
a) The benefit (Research and Development Expenditure Credit, supports entities that work on innovative projects
in science and technology) received/receivable towards intangible assets by the United Kingdom (UK) Branch of
the Company from the Government of UK - Department for Business Innovation & Skills and Department for His
Majesty's Revenue & Customs (HMRC) of ' 111.28 crores as at March 31, 2026 (March 31, 2025: ' 71.03 crores)
b) Represents Government assistance in the form of the duty benefit availed under Export Promotion Capital Goods
(EPCG) Scheme on purchase of property, plant and equipments of ' 38.04 crores as at March 31, 2026 (March
31, 2025: ' 38.65 crores) and the benefit of below-market rate of interest (at 0.1% per annum) arising on account
of soft-loan from SIPCOT accounted for as Government grant of ' 49.94 crores as at March 31, 2026 (March 31,
2025: ' 54.00 crores)
These grants will be recognized in statement of profit and loss on a systematic basis over the useful life of the related property,
plant and equipment / intangible assets.
Revenue from sale of goods
The performance obligation for the sale of goods is satisfied at the point in time when control of the goods is transferred
to the customer.
• Domestic sales are recognised at the time of dispatch from the point of sale;
• Export sales are recognised on the date when shipped on board or delivery of goods at the destination agreed as
per the respective terms of sale and are initially recorded at the relevant exchange rates prevailing on the date of
the transaction.
The Company offers specific credit period to certain customers and payment for the sale is made as per the credit terms in the
agreements with the customers.
Pursuant to application of practical expedient under IND AS 115, no additional disclosure is provided in respect of remaining
unsatisfied performance obligations.
Revenue from sale of service type warranties
The performance obligation for the service type warranty is satisfied over the warranty contract based on time elapsed and
payment is fully on advance basis.
Persuant to application of practical expendient under INDAS 115, no additional disclosure is provided in respect of remaining
unsatisfied performance obligations.
On November 21, 2025, the Government of India notified four Labour Codes, consolidating 29 existing labour laws.
Subsequently, the Ministry of Labour & Employment issued draft Rules and FAQs to facilitate assessment of the financial
implications arising from changes in the regulatory framework. Based on an assessment of the impact of these Codes, the
Company has provided for an amount of ' 55.45 crores, as an exceptional item of a non recurring nature for the year ended
March 31, 2026. This assessment and the above provision in the accounts are based on information currently available & the
FAQs on key accounting implications arising from the Labour Codes issued by the Institute of Chartered Accountants of India.
Subsequent to the year-end, the Central Government has notified the Code on Wages (Central) Rules, 2026, however, the
corresponding State Rules and certain other operational clarifications under the New Labour Codes are yet to be notified. The
Company continues to monitor the notification of the remaining State Rules and clarifications, the impact, if any, of these will
be accounted in accordance with applicable accounting standards.
39. CRITICAL ACCOUNTING JUDGEMENT AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Company accounting policies, which are described in note 3, the management of the Company are
required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not
readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. 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.
The following are the areas of estimation uncertainty and critical judgements that the management has made in the process
of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the
financial statements:-
Recoverability of intangible assets and intangible assets under development
The Company has various internally generated intangible assets either capitalised or under development. Initial recognition of
the expenditure under these assets are based on assessing each asset in relation to the specific recognition criteria to be met
for capitalisation, for e.g. technological and economic feasibility and the ability of the asset to generate economic benefits in
the future. In addition, the management also assesses any indicators of impairment of the carrying value of the assets. This
requires the management's judgement and assumptions, which are affected by future market or economic developments. The
management has analysed the recognition criteria and future market conditions and is confident that these assets do not
require any adjustments to their carrying value at the year end. (Refer note 3.12 and 7)
Useful lives of depreciable assets
Management reviews the useful lives of depreciable assets at each reporting date. As at March 31, 2026 management
assessed that the useful lives represent the expected utility of the assets to the Company. Further, there is no significant
change in the useful lives as compared to previous year. (Refer note 3.11, 3.12, 4 and 6)
Share-based payments
Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation
model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most
appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and
making assumptions about them. The assumptions and models used for estimating fair value for share-based payment
transactions are disclosed in Note 3.9 and 49.
Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the
higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on
available data from binding sales transactions, conducted at arm's length, for similar assets or observable market prices
less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model.
(Refer note 3.13)
Equity investments designated at FVTOCI
Equity instruments designated at fair value through OCI include investments in equity shares of Stark Future S.L., for a
non-controlling interests of 9.99% (undiluted basis) as at March 31, 2026 (March 31, 2025: 10.88% (undiluted basis)). This
investment was irrevocably designated at initial recognition as fair value through OCI considering it to be strategic in nature.
(Refer note 3.17 and 10)
During the year ended March 31, 2026, the Company has recognized changes in fair value, including foreign exchange
gains / (losses) on reinstatement, in respect of its investment in equity instruments carried at Fair value through Other
comprehensive income.
40. RESEARCH AND DEVELOPMENT COSTS:
Research and development costs incurred during the year ended March 31, 2026 that are capitalized, aggregates to ' 567.95
crores (March 31, 2025: ' 463.08 crores). Research and development costs that are not eligible for capitalization have
been expensed during the year ended March 31, 2026 of ' 186.74 crores (March 31, 2025: ' 149.64 crores), and they are
recognized in other expenses.
All the above matters other than guarantee given by the Company are subject to legal proceedings in the ordinary course of business. The
legal proceeding when ultimately concluded will not, in the opinion of management, have a material effect on the result of operations or the
financial position of the Company.
*These are consumer related cases, based on management's evaluation and advised by the Company's legal counsels that those are only
possible, but not probable, that the action will succeed. Accordingly, no provision for any liability has been made in these financial statements.
The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out
as at March 31, 2026 by Mr. K.K.Dharni (FIAI M.No. 00051), Fellow of the Institute of Actuaries of India. The present value of
the defined benefit obligation, and the related current service cost, were measured using the projected unit credit method.
Gratuity :
The gratuity plan is governed by the Payment of Gratuity Act, 1972 or the Code of Social Security, 2020. Under the act,
employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends
on the member's length of service and salary at retirement age. The fund has the form of a trust and it is governed by the
Board of Trustees.
Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes the asset-liability
matching strategy and investment risk management policy. This includes employing the use of annuities and longevity swaps
to manage the risks. Generally, it aims to have a portfolio mix of equity instruments, and debt instruments. Generally, equity
instruments should not exceed 15% of total portfolio. The Board of Trustees aim to keep annual contributions relatively stable
at a level such that no plan deficits (based on valuation performed) will arise.
As the plan assets include significant investments in quoted equity shares of entities, the Company is also exposed to equity
market risk to the extent of the proportionate investment made.
The fair values of the above instruments are determined based on quoted market prices in active market. The actual return on
plan assets was ' 10.30 crores for the year ended March 31, 2026.
Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase
and mortality. The sensitivity analysis below have been determined based on reasonable possible changes of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
Gratuity funded
• If the discount rate is 50 basis points higher (lower), the defined benefit obligation would decrease by ' 8.17 crores
(increase by ' 8.79 crores) [as at March 31, 2025: Decrease by ' 5.80 crores (increase by ' 6.31 crores)].
• If the expected salary growth increases (decreases) by 50 basis points, the defined benefit obligation would increase by
' 4.69 crores (decrease by ' 4.73 crores) [as at March 31, 2025: Increase by ' 5.97 crores (decrease by ' 5.57 crores)].
Gratuity unfunded
• If the discount rate is 50 basis points higher (lower), the defined benefit obligation would decrease by ' 0.88 crores
(increase by ' 0.96 crores) [as at March 31, 2025: decrease by ' 0.82 crores (increase by ' 0.90 crores)].
• If the expected salary growth increases (decreases) by 50 basis points, the defined benefit obligation would increase by
' 0.78 crores (decrease by ' 0.75 crores) [as at March 31, 2025: increase by ' 0.74 crores (decrease by ' 0.71 crores)].
Sensitivities due to change in mortality rate and change in withdrawal rate are not material and hence impact of such change is
not calculated.
Sensitivity Analysis
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions
may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been
calculated using the projected unit credit method at the end of reporting period, which is same as that applied in calculating
the defined benefit obligation liability recognized in the balance sheet.
The changes to principal assumptions on future salary increase and rate of withdrawal have been made to reflect the
Company's trend of actual average salary increase and average attrition rates over the past years.
Provident fund :
The Company operates a scheme of provident fund for eligible employees, which is a defined benefit plan. Both the employee and
the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee's
salary. The Company contributes a part of the contributions to the "Eicher Executive Provident Fund Trust". The rate at which
the annual interest is payable to the beneficiaries by the trust is being administered by the Government. The Company has an
obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.
Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase
and mortality. The sensitivity analysis below have been determined based on reasonable possible changes of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
- If the discount rate is 50 basis points higher (lower), the defined benefit obligation would decrease by ' 0.05 crores (increase
by ' 0.05 crores)
Sensitivities due to change in mortality rate and change in withdrawal rate are not material and hence impact of such change is
not calculated.
45. SEGMENT REPORTING DISCLOSURE
The Company primarily operates in the automotive segment. The automotive segment includes all activities related to
development, design, manufacture, assembly and sale of two-wheelers as well as sale of related parts and accessories.
As defined in Ind AS 108, the chief operating decision maker (CODM), evaluates the Company's performance, allocate
resources based on the analysis of the various performance indicator of the Company as a single unit. Therefore, there is no
reportable segment for the Company as per the requirement of Ind AS 108 "Operating Segments".
a) Domestic segment includes sales and services to customers located in India.
b) Overseas segment includes sales and services rendered to customers located outside India.
c) Non-current segment assets represents total non current assets excluding non current financial assets.
d) The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for
the Company. Revenue have been identified to segments on the basis of their relationship to the operating activities
of the segment.
Terms and conditions of transactions with related parties
All transactions from related parties are in the normal course of business and in terms equivalent to those that prevail in arm's
length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash.
For the year ended March 31, 2026, the Company has not recorded any impairment of receivables relating to amounts owed
by related parties (March 31, 2025 : ' Nil). This assessment is undertaken each financial year through examining the financial
position of the related party and the market in which the related party operates.
The Company generally provides a credit period of 30 days to 270 days with respect to receivables from RET, RENA, RE
Brasil, REUK and REEU.
Guarantees provided to the subsidiaries are in accordance with the section 186 (4) of the Companies Act, 2013.
# Expenses reimbursed/reimbursable by the Company includes mark-up, as applicable.
The Company has a credit period of 45 days with respect to payables to VE Commercial Vehicles Limited.
Brand fees payable to Eicher Goodearth India Private Limited upon approval by Shareholders at its Annual General Meeting.
Rent payable to Eicher Goodearth India Private Limited on due basis.
The Company has a credit period of 0 to 90 days with respect to payables to related parties.
47. FINANCIAL INSTRUMENTS
47.1 Capital Management
The Company manages its capital to ensure that the Company will be able to continue as going concern while maximizing the
return to stakeholders through efficient allocation of capital towards expansion of business, optimization of working capital
requirements and deployment of surplus funds into various investment options. The Company uses the operational cash flows
and equity to meet its capital requirements.
The Company is not subject to any externally imposed capital requirements.
The management of the Company reviews the capital structure of the Company on regular basis. As part of this review, the
management of the Company considers risks associated with the movement in the working capital.
No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2026
and March 31, 2025.
47.3 Fair value measurements
The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by
valuation techniques:
The following is the basis of categorizing the financial instruments measured at fair value into Level 1 to Level 3 :-
Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for
identical assets or liabilities.
Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included within Level
1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable market
data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that
are neither supported by prices from observable current market transactions in the same instrument nor are they based on
available market data.
* represents the investments in equity of Flamesun Solar Private Limited. As per the share purchase agreement between the Company and
these parties, in case of termination or as the case may be, the Company shall transfer the equity shares to the person nominated by each
party (Nominated person) as may be prescribed and consideration to receive in this regard shall be the same amount as paid by the Company
towards purchase of these equity investments (cost of purchase).
# represents equity instruments designated at fair value through OCI include investments in equity shares of Stark Future S.L.,. for a non¬
controlling interests of 9.99% (undiluted basis) as at March 31, 2026 (March 31, 2025: 10.88% (undiluted basis)). This investment was
irrevocably designated at initial recognition as fair value through OCI considering it to be strategic in nature.
The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset and paid
to transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used
to estimate the fair values:
• Investments traded in active markets are determined by reference to quotes from the financial institutions; for example:
Net asset value (NAV) for investments in mutual funds declared by mutual fund house.
• The fair value of bonds is based on quoted prices and market observable inputs.
• Trade receivables, cash and cash equivalents, other bank balances, loans, other current financial assets, current
borrowings, trade payables and other current financial liabilities: Approximate their carrying amounts largely due to the
short-term maturities of these instruments.
• Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent
limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates
presented above are not necessarily indicative of all the amounts that the Company could have realized or paid in sale
transactions as of respective dates. As such, the fair value of the financial instruments subsequent to the respective
reporting dates may be different from the amounts reported at each year end.
• There were no transfers between Level 1, Level 2 and Level 3 during the year and the previous year.
48. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company's management monitors and manages the financial risks relating to the operations of the Company. These risks
include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
The management reviews cash resources, implements strategies for foreign currency exposures and ensuring market risk
limit and policies.
The Company does not enter into or trade financial instruments, including derivative financial instruments, for
speculative purposes.
Market risk
Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change
in the price of a financial instrument. The Company's activities expose it primarily to the financial risks of changes in foreign
currency exchange rates and interest rates risk/ liquidity risk which impact returns on investments. Market risk exposures are
measured using sensitivity analysis.
Foreign currency risk management
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate
fluctuations arise. The carrying amounts of the Company's foreign currency denominated monetary assets and monetary
liabilities at the end of the reporting period are as follows:
Foreign currency sensitivity
The company uses the sensitivity rate of 5% when reporting foreign currency risk internally to key management personnel and
represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis
includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for
a 5% change in foreign currency rates. In the opinion of the management, the sensitivity of increase or decrease of ' 61.93
crores (March 31, 2025: ' 47.17 crores) against the relevant foreign currencies is not material to the financial statements.
Equity price risk
The Company's listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about
future values of the investment securities. The Company manages the equity price risk through diversification and by placing
limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company's senior
management on a regular basis.
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss
to the Company.
Financial instruments that are subject to concentrations of credit risk, principally consist of balance with banks, investments
in debt instruments/ bonds, trade receivables, loans and advances. None of the financial instruments of the Company result in
material concentrations of credit risks.
Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past dues and not
impaired, there were no indication of default in repayment as at the year end.
The Company has used a practical expedient by computing the expected loss allowance for financial assets based on historical
credit loss experience and adjustments for forward looking information.
Other price risks
The Company has deployed its surplus funds into various financial instruments including units of mutual funds, bonds, etc.
The Company is exposed to NAV (net asset value) price risks arising from investments in these funds. The value of these
investments is impacted by movements in interest rates, liquidity and credit quality of underlying securities.
NAV price sensitivity analysis
The sensitivity analysis below have been determined based on the exposure to NAV price risks at the end of the reporting
period. If NAV prices had been 1% higher/lower, the profit for the year ended March 31, 2026 would increase/decrease by
' 120.23 crores (for the year ended March 31, 2025: increase/decrease by ' 112.41 crores).
Interest rate risk
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 rate. Since the Company's borrowings which are affected by interest rate fluctuation is very insignificant
to the size and operations of the Company, therefore, a change in interest rate risk does not have a material impact on the
Company's financial statements in relation to fair value of financial instruments.
Liquidity risk
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Maturity profile of financial liabilities:
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date.
49. SHARE-BASED PAYMENTS
Employee Stock Option Plan, 2006 of the Company
Pursuant to the approval accorded by shareholders at their Annual General Meeting held on July 5th 2006, the Nomination and
Remuneration Committee of the Company formulated Employee Stock Option Plan 2006' ("ESOP, 2006") of the Company.
ESOP, 2006 is applicable to all permanent and full-time employees (as defined in the Plan), excluding employee who is a
Promoter or belonging to Promoter Group of the Company and other exclusions as per SEBI (Share Based Employee Benefits)
Regulations, 2014, as amended from time to time ("SEBI Regulations"). The eligibility of employees to receive grants under the
Plan is decided by the Nomination and Remuneration Committee, from time to time at its sole discretion.
Vesting of the options shall take place in the manner as may be determined by the Nomination and Remuneration Committee
at the time of grant, provided, the vesting period shall not be less than 1 year from the date of grant or such other period as
may be prescribed, from time to time, under the aforesaid SEBI Regulations.
Vesting of options shall be subject to the conditions that the Grantee shall be in continuous employment with the Company
(or its subsidiary company, as the case may be) and subject to such other conditions and exceptions as provided under
Company's ESOP, 2006.
The Exercise Price of each grant is determined by the Nomination and Remuneration Committee at the time of grant, provided
that the Exercise Price shall not be less than the closing market price of the shares of the Company on NSE/BSE on the day
preceding the date of grant of Options.
The options vested can be exercised at any time until completion of seven years from the date of vesting. Any options
remaining not exercised at the end of the exercise period shall lapse. At the time of exercise, the participant may pay the
exercise price in the form as approved by the Nomination and Remuneration Committee in accordance with the terms of
the ESOP, 2006.
Each stock option, when exercised, is convertible into one equity share of the Company. No amount is payable by the
option grantee on grant of option. The options carry neither rights to dividends nor voting rights until they are exercised &
converted into shares.
Details of the Employee Stock Option Plan, 2006 of the Company
The following share-based payment arrangements were in existence during the current year and previous year :
Fair value of share options granted in the year
The weighted average fair value of the share options granted during the financial year is ' Nil (March 31, 2025 : ' 2,223.10).
Options were priced using Black Scholes options pricing model. Where relevant, the expected life used in the model has been
adjusted based on management's best estimate for the effects of non-transferability, exercise restrictions (including the
probability of meeting market conditions attached to the option), and behavioural considerations. Expected Volatility was
determined by taking the daily volatility of the share price on NSE, over a period prior to the date of grant, corresponding to the
expected life of the options for each vesting.
Restricted Stock Units Plan, 2019 ("RSU 2019")
Pursuant to approval accorded by shareholders at their Annual General Meeting held on August 1, 2019, the Nomination and
Remuneration Committee of the Company formulated 'Eicher Motors Limited - Restricted Stock Units Plan 2019' ("RSU Plan
2019") for grant of Restricted Stock Units ("RSU"), in accordance with SEBI (Share Based Employee Benefits) Regulations,
2014, as amended from time to time ("SEBI Regulations").
RSU Plan 2019 is applicable to (i) a permanent employee of the Company working in India or outside India; or (ii) a Director
of the Company, whether whole-time or not; and (iii) an employee, as defined in (i) or (ii) of this Para, of a Subsidiary Company
(including joint venture), in India or outside India, excluding such category of persons as defined under RSU Plan 2019 of the
Company and/or SEBI Regulations. The eligibility of employees or eligibility criteria to receive grants under RSU Plan 2019 is
decided by Nomination and Remuneration Committee, from time to time.
The Nomination and Remuneration Committee shall specify the vesting criteria based on continued employment with the
Company (or its subsidiary / joint venture, as the case may be) and/or certain performance criteria to be fulfilled for vesting
of RSU and/or any other criteria as it may deems fit and subject to such other conditions and exceptions as provided under
RSU Plan, 2019.
Vesting of RSU shall take place in the manner as may be determined by the Nomination and Remuneration Committee at the
time of grant, provided that the vesting shall not take place earlier than minimum vesting period of one year but not later than
maximum vesting period of seven years from the date of grant of such RSU.
Exercise Price of each grant shall be the face value of the share as on date of exercise of RSU. The exercise period of a vested
RSU shall be a maximum of seven years from the date of vesting of RSU, or such other shorter period as may be prescribed
by the Nomination and Remuneration Committee at time of Grant and as set out in the letter of Grant, subject to such other
conditions and exceptions as provided under Company's RSU Plan, 2019. Any RSU remaining not exercised at the end of the
exercise period shall lapse. At the time of exercise, the participant may pay the exercise price in a form as approved by the
Nomination and Remuneration Committee in accordance with the terms of the RSU Plan, 2019.
Each RSU, when exercised, is convertible into one equity share of the Company. No amount is payable by the RSU grantee on
grant of RSU. RSU carry neither rights to dividends nor voting rights until they are exercised & converted into shares.
Detail of Restricted Stock Units Plan, 2019 ("RSU 2019")
The following share-based payment arrangements were in existence during the current year and previous year:
Fair value of stock units granted in the year
The weighted average fair value of the stock units granted during the financial year is ' 5,418.82 (March 31, 2025 :
' 4,547.34). Options were priced using Black Scholes options pricing model. Where relevant, the expected life used in the
model has been adjusted based on management's best estimate for the effects of non-transferability, exercise restrictions
(including the probability of meeting market conditions attached to the option), and behavioral considerations. Expected
Volatility was determined by taking the daily volatility of the share price on NSE, over a period prior to the date of grant,
corresponding to the expected life of the options for each vesting.
50. CAPITAL COMMITMENTS
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of capital advances)
' 563.56 crores (March 31, 2025 : ' 293.75 crores).
The Company has other commitments, for purchase/sales orders which are issued after considering requirements per operating
cycle for purchase /sale of goods and services, employee's benefits including union agreement in normal course of business.
The Company does not have any long term commitments or material non-cancellable contractual commitments/contracts,
which might have material impact on the financial statements.
CSR activities undertaken directly or through Eicher Group Foundation (EGF), Licence under Section 8(1) of the Companies
Act 2013 (refer note 46). About 75 years ago, the Himalayas became Royal Enfield's spiritual home. Royal Enfield Social
Mission is catalysing an ecosystem of collective action to meet its long term vision of partnering 100 Himalayan communities
by 2030 towards building climate resilience.
At the intersection of Culture, Conservation & Materiality, the Royal Enfield Social Mission projects and initiatives include
'The Himalayan Knot' - a textile conservation project, bringing together pastoral communities, artisans and designers for
wider market access; 'The Himalayan Hub' - a collective learning center for Climate Resilience; a network of community-run
'Green Pit Stops', embodying responsible travel; 'The Great Himalayan Exploration' in partnership with UNESCO to document
Intangible Cultural Heritage (ICH); the Royal Enfield 'Ice Hockey League' promoting rural sports and winter tourism; conserving
biodiversity and wildlife through the Keystone Species project; and 'Helmets for India' - a road safety initiative.
Through the Social Mission, Royal Enfield is also encouraging and inspiring one million riders to explore sustainably and 'Leave
every place better'.
In addition to the Social Mission, Royal Enfield also works with local communities near its manufacturing plants in Tamil Nadu,
focusing on areas such as education, livelihood, sanitation, healthcare etc. Two multi-decade partnerships with Bodh Shiksha
Samiti in Rajasthan and Dr. Shroff Charity Eye Hospital in Delhi continue to be supported as legacy projects.
The Company's projects are long term and money is spent depending upon the requirement of the projects. During the
financial year 2025-26, ' 46.61 crores (March 31, 2025: 50.25 crores) was spent as per the requirements of CSR projects
(including administrative expenses) and the unspent amount of ' 36.57 crores (March 31, 2025: 16.43 crores) is transferred
to unspent CSR account pursuant to the CSR Rules subsequent to the year-end.
52. IND AS 116 LEASES
As a lessee
The Company has lease contracts for various buildings used in its operations. Leases of buildings generally have lease terms
between 2 and 20 years. The Company's obligations under its leases are secured by the lessor's title to the leased assets.
There are several lease contracts that include extension and termination options which are further disclosed below.
The Company also has certain leases of buildings with lease terms of 12 months or less and leases with low value. The Company
applies the 'short-term lease' and 'lease of low-value assets' recognition exemptions for these leases respectively.
Lease expenses relating to short term leases aggregated to ' 62.72 crores during the year ended March 31, 2026 (' 56.95
crores during the year ended March 31, 2025) and had total cash outflows for leases of ' 94.11 crores (' 86.76 crores during
the year ended March 31, 2025)
Lease liabilities are recognised at weighted average incremental borrowing rate ranging from 8% to 9.5% per annum.
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to
meet the obligations related to the lease liabilities as and when they fall due.
53. EVENTS AFTER THE REPORTING PERIOD
The Board of Directors of the Company at their meeting held on May 22, 2026, considered and proposed a final dividend
post the balance sheet date, aggregating to ' 2,249.38 crores @ ' 82 per share (nominal value of ' 1 per share) for
the financial year ended March 31, 2026 (final dividend paid for previous financial year ended March 31, 2025 was
' 1,919.95 crores @ ' 70 per share of nominal value of ' 1 per share), which is subject to approval by the shareholders at
the ensuing annual general meeting.
54. The Board of Directors and shareholders of Eicher Polaris Pvt. Ltd (a joint venture company) ('EPPL') at their respective
meetings held on February 18, 2020 approved voluntary liquidation (solvent liquidation) of EPPL and appointed an
insolvency professional as the liquidator. The liquidation process is under progress currently.
56. The Company has used accounting software (SAP and other accounting software) for maintaining its books of account
which has a feature of recording audit trail facility and the same has operated throughout the year for all relevant
transactions recorded in the software, except for the audit trail at the SAP database level which was enabled during the
audit period and Management is presently evaluating setting up the audit trail feature as necessary in other software
(used to maintain records of certain service type warranties) in due course.
Wherever audit trail is enabled, there has not been any instance where audit trail feature has been tampered with.
Additionally, the audit trail in respect of prior year has been preserved by the Company as per the statutory requirements
for record retention, to the extent it was enabled and recorded in respect of the financial years ended March 31, 2025
and March 31, 2024.
57. OTHER STATUTORY INFORMATION
(i) The Company has not defaulted on loans payable and has not been declared as wilful defaulter by any bank or financial
institution or other lender.
(ii) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules
made thereunder.
(iii) The Company has not revalued its Property, Plant & Equipments, Intangible Assets and Right to Use Assets
during the year.
(iv) The Company does not have any balances with a company struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956 - Refer note 22.
(v) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
(vi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(vii) 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 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
(viii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ix) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961).
(x) The Company has not granted any loans and advances to promoters, directors, KMP's and other related parties (as
defined under the Companies Act 2013) during the year.
(xi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act,
2013 read with the Companies (Restriction on number of Layers) Rules, 2017.
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