K. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognized when the Company has a present obligation as a result of past event and 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, based on all the relevant facts, available at the end of the reporting period. Provisions are determined
based on the best estimate of the consideration required to settle the obligation at the reporting date, taking into account the
risks and uncertainties surrounding the obligation. These estimates are reviewed at each reporting date and adjusted to reflect
the current best estimates.
The provision for estimated liabilities on account of guarantees and warranties etc. in respect of lumpsum services and turnkey
contracts awarded to the Company are being made on the basis of management's assessment of risk and consequential
probable liabilities on each such jobs.
Provisions are discounted to their present values, where the time value of money is material.
Contingent Liabilities are possible obligation arises from past events and whose existence 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 but is not recognized because it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation or the amount of the obligation cannot be estimated reliably, the
obligation is disclosed as measured with sufficient reliability. Where it is not probable that a present obligation exists, the
Company discloses contingent liability unless the possibility of an outflow of resources embodying economic benefits is remote.
Contingent liabilities relating to direct taxes, indirect taxes, financial liabilities, legal cases and others, whether disputed or not,
are disclosed on the basis of judgment of the management using the above policy backed by independent expert's opinion/
guidance, wherever required and reviewed at year end to reflect the current management estimate.
In respect of disputed cases, wherein the Company has lost the case in arbitration or other forums, if the management
determines that there is no present obligation, on the basis of evidence available (including expert's opinion), the same is
disclosed as a contingent liability, unless the possibility of outflow of resources is remote. Contingent assets are disclosed in the
Financial Statements by way of notes to accounts when an inflow of economic benefits is probable. However, when realization
of income is virtually certain, related asset is recognized.
Refer note 40 for the detailed discussion on the nature of contingent liabilities of the Company existing as on the balance sheet date.
L. GOVERNMENT GRANTS
Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached
conditions will be complied with.
Government grants related to a revenue item, are recognized in statement of profit and loss as a deduction from related
reported expense.
Government grants related to an asset are recognized as deferred income in the balance sheet and are recognised as income
in the ratio of depreciation over the expected useful life of the related asset.
When the Company receives grant as a non-monetary asset, the asset and the grant are recorded at fair value. The amount is
then recognised in statement of profit and loss over the expected useful life in a pattern of consumption of the benefit of the
underlying asset.
M. OIL AND GAS EXPLORATION ACTIVITIES
The Company follows 'Successful Efforts Method' in accounting for Oil and Gas exploration and production activities as
detailed below:
• Survey costs are charged as expense in the year of its incurrence.
• Acquisition costs, cost of incomplete/undecided exploratory wells and development costs are carried as intangible assets
under development till these are either transferred to producing properties on completion or expensed in the year when
determined to be dry, as the case may be.
The Company share of proved oil and gas reserves are disclosed when notified by the operator of the relevant block.
The Company proportionate share in the assets, liabilities, income and expenditure of jointly controlled assets are accounted
for as per the participating interest.
Capitalization of Producing Properties
Producing Properties are capitalised as "completed wells/producing wells" when the wells in the area/field are ready to
commence commercial production on establishment of proved developed Oil and Gas reserves.
Cost of Producing Properties includes cost of successful exploratory wells, developed wells, initial depreciation of support
equipment & facilities and estimated future abandonment cost.
Depletion of producing Properties
Producing Properties are depleted using the "Unit of Production Method (UOP)". The depletion or unit of production charged for
all the capitalized cost is calculated in the ratio of production during the year to the proved developed reserves at the year end.
Production Cost of producing Properties
Company share of production costs as indicated by Operator consists of pre well head and post well head expenses including
depreciation and applicable operating cost of support equipment and facilities.
N. RESEARCH AND DEVELOPMENT EXPENDITURE
Revenue expenditure on Research and Development is charged to statement of profit and loss in the year the expenditure is
incurred. Capital Expenditure on Research and Development is capitalized under property, plant and equipment.
O. FINANCIAL GUARANTEES
Financial guarantee contracts
Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a loss it incurs
because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument.
Initial recognition
Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly
attributable to the issuance of the guarantee.
Subsequent recognition
Subsequently, the liability is measured at the higher of the amount of expected loss allowance determined as per impairment
requirements of Ind-AS 109 and the amount recognised less cumulative amortisation.
P. INVENTORIES
Inventories in respect of stores, spares and chemicals etc. are valued at lower of cost and net realizable value. Cost is determined
on "First In, First Out" basis.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and
estimated costs necessary to make the sale.
Physical verification of inventory including store and spare items (excluding materials in-transit) is carried out by the Company
annually. The discrepancies noticed, if any, are accounted for in the year in which such differences are found.
Q. INCOME TAXES
Tax expense recognized in statement of profit and loss comprises the sum of deferred tax and current tax except the ones
recognized in other comprehensive income or directly in equity.
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. Calculation of current tax is based on tax rates and tax laws that have been enacted for the reporting period.
Current income tax relating to items recognised outside profit and loss is recognised outside profit and loss (either in other
comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in
other comprehensive income or directly in equity.
Management evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are
subject to interpretation and establish provisions, wherever applicable.
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets are recognized to the extent
that it is probable that the underlying tax loss or deductible temporary difference will be utilized against future taxable income.
This is assessed based on forecast of future operating results, adjusted for significant non-taxable income and expenses and
specific limits on the use of any unused tax loss or credit.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised,
or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting
date. Deferred tax relating to items recognised outside profit and loss is recognised outside profit and loss (either in other
comprehensive income or in equity).
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized
deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that
future taxable profits will allow the deferred tax asset to be recovered.
The Company offsets deferred tax assets and deferred tax liabilities as it has a legally enforceable right to set off current tax
assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the
same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax
liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
R. INVESTMENT IN EQUITY INSTRUMENTS OF CONSOLIDATED ENTITIES
The Company's investment in equity instruments of subsidiaries, associates and joint ventures are accounted for at cost.
S. INVESTMENT IN JOINTLY CONTROLLED OPERATIONS
A joint operation is one whereby the jointly controlling parties, known as the joint operators, have rights to the assets,
and obligations for the liabilities, relating to the arrangement. A joint operation is generally not structured through a
separate legal vehicle.
T. CASH AND CASH EQUIVALENTS
Cash comprises cash on hand and demand deposits i.e., balances held with banks in current accounts for unrestrictive use.
Cash equivalents are short term, highly liquid investments that are readily convertible into known amount of cash and which
are subject to an insignificant risk of changes in value. The Company considers unrestrictive time deposits with banks having an
original maturity of three months or less as cash equivalent.
U. POST-EMPLOYMENT BENEFITS, LONG-TERM AND SHORT-TERM EMPLOYEE BENEFITS
Defined benefit plans
Under the defined benefit plans, the amount that an employee will receive on retirement is defined by reference to the
employee's length of service and final salary. The legal obligation for any benefits remains with the Company, even if plan assets
for funding the defined benefit plan have been set aside. Plan assets may include assets specifically designated to a long-term
benefit fund as well as qualifying insurance policies. Defined benefit plans include gratuity, provident fund, leave encashment,
post-retirement medical benefit, long service awards and other retirement benefit plans.
The liability recognised in the statement of financial position for defined benefit plans is the present value of the Defined Benefit
Obligation (DBO) at the reporting date less the fair value of plan assets.
Management estimates the DBO annually with the assistance of independent actuaries using the projected unit credit method.
Remeasurements, comprising of actuarial gains/losses, the effect of the asset ceiling, excluding amounts included in net defined
benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability),
are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through included
in other comprehensive income in the period in which they occur. Remeasurements are not reclassified to profit or loss in
subsequent periods.
The current service cost is recognized in the statement of profit and loss under 'employee benefits expense'.
Net interest which is recognized in the statement of profit and loss under 'employee benefits expense' represents the net
change in present value of plan obligations and the value of plan assets resulting from the passage of time, and is determined
by applying the discount rate to the present value of the benefit obligation and to the fair value of plan assets at the beginning
of the year, taking into account expected changes in the obligation or plan assets during the year.
Other long-term benefits
The liabilities for leave (earned and half pay leave) not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service. The Company has secured these liabilities against the plan assets.
The liability is recognised in the statement of financial position basis the present value of expected future payments to be made
in respect of services provided by employees upto the end of reporting period (using the projected unit credit method) less the
fair value of plan assets.
Liability in respect of long-service awards is recognised in the statement of financial position basis the present value of expected
future payments to be made in respect of services provided by employees up to the end of reporting period (using the projected
unit credit method).
Short-term employee benefits
Short term benefits comprising of employee costs such as salaries, bonus etc. are accrued in the year in which the associated
service is rendered by employees.
Defined contribution plans
Contributions with respect to pension scheme and superannuation fund are made to the trust set-up by the Company for
the purpose and are charged to the statement of profit and loss, when employees have rendered service entitling them to
the contributions.
Other benefits
Voluntary retirement expenses are charged to statement of profit and loss in the year of its incurrence.
V. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted
average number of equity shares outstanding during the period is adjusted for events including a bonus issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive
potential equity shares.
W. NON-CURRENT ASSETS HELD FOR SALE
Non-current assets are classified as held for sale if their carrying amount is intended to be recovered principally through a sale
(rather than through continuing use) when the asset is available for immediate sale in its present condition subject only to terms
that are usual and customary for sale of such asset and the sale is highly probable is expected to qualify for recognition as a
completed sale within one year from the date of classification.
Non-current assets classified as held for sale are measured at lower of their carrying amount and fair value less cost to sell. The
determination of fair value less cost to sell includes use of management estimates and assumptions.
Non-current assets are not depreciated or amortized while they are classified as held for sale.
X. RECENT ACCOUNTING PRONOUNCEMENT
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. For the year ended March 31,2026, MCA has notified amendments to
certain Companies (Indian Accounting Standards) as below:
Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 - The amendment relates to classification of
liabilities as current or non-current and non-current liabilities with covenants. In the context of classifying a liability as current, it
removes the requirement of existence of a right to defer settlement for at least 12 months after the reporting date and instead
requires that the said right should exist on the reporting date and have substance. The amendment also introduces guidance
on classification of liabilities with covenants. The Company has no impact of these amendments in its classification criteria of
current and non-current liabilities.
Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. April 1, 2025 - The
amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier finance arrangements
and explain the nature of the arrangements, the carrying amount of liabilities and the range of payment due dates. Ind AS
107 has been amended to add supplier finance arrangements as a factor that may cause concentration of liquidity risk. The
Company has reviewed the amendment and based on its evaluation has determined that it does not have any impact in its
financial statements.
Ind AS 12, Income Taxes, applicable w.e.f. April 1,2025 - Amendments introduced in relation to the International Tax Reform -
OECD Pillar Two Model Rules, including disclosure requirements for entities affected by global minimum tax regulations. The
Company has reviewed the amendment and based on its evaluation has determined that it does not have any impact in its
financial statements.
Ind AS 21, The Effects of Changes in Foreign Exchange Rates, applicable w.e.f. April 1,2025- Amendments provide guidance for
determining exchange rates when a currency is not exchangeable and prescribe related disclosure requirements. The Company
has reviewed the amendment and based on its evaluation has determined that it does not have any significant impact in its
financial statements.
Y. SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION UNCERTAINTY
Significant management judgements
When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about
the recognition and measurement of assets, liabilities, income and expenses, accompanying disclosures (including disclosure of
contingent liabilities).
The following are significant management judgements in applying the accounting policies of the Company that have the most
significant effect on the financial statements.
Revenue - For Lumpsum services and Turnkey Contracts, the Company recognises revenue using the percentage completion
method. Use of the percentage completion method requires the Company to estimate the cost incurred relative to total expected
cost to the satisfaction of performance obligation. This requires estimates to be made of the outcomes of long-term construction
and service contracts, which require assessments and judgements to be made on changes in work scopes, balance efforts, cost
and time to complete the contract including probability of levy for liquidated damages and price reduction for delay to the
extent they are probable and they are capable of being reliably measured. Cost and time incurred have been used to measure
progress towards completion as there is a direct relationship between input and satisfaction of performance obligation.
Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is based on an assessment of
the probability of future taxable income against which the deferred tax assets can be utilized.
Property lease classification as a lessor- The Company has entered into leases for office/residential premises. The Company
has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting
a major part of the economic life of the commercial property and the present value of the minimum lease payments not
amounting to substantially all of the fair value of the commercial property, that it retains substantially all the risks and rewards
incidental to ownership of these properties and accounts for the contracts as operating leases.
Estimation uncertainty
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets,
liabilities, income and expenses is provided below. Actual results may be substantially different.
Recoverability of advances/receivables - At each balance sheet date, based on historical default rates observed over expected
life, the management assesses the expected credit loss on outstanding receivables and advances.
Defined benefit obligation (DBO) - Management's estimate of the DBO is based on a number of critical underlying
assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary
increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
The assumptions for each plan are reviewed annually and adjusted if necessary.
Provisions - At each balance sheet date, based on the management judgment, changes in facts and legal aspects, the Company
assesses the requirement of provisions against the outstanding warranties and guarantees. However, the actual future outcome
may be different from this judgement.
Determination of functional currency - The Company has determined that INR is the functional currency as a substantial
amount of its revenue and cost is in INR.
Determination of Materiality - Ind AS requires assessment of materiality by the Company for accounting and disclosure of
various transactions in the financial statements. Accordingly, the Company assesses materiality limits for various items for
accounting and disclosures and follows on a consistent basis.
Note :
The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the statement of
Profit and Loss.
* Includes land parcel, physical possession of which was taken in FY 2025-26 from Maharashtra Industrial Development Corporation
(MIDC). Lease deed of land by MIDC in favour of the company is executed on 6th May, 2026. The project execution activities have
been initiated. The Gross carrying amount in respect of such land represent the acquisition cost including provision for registration
charges and stamp duty payable on execution on lease deed. (Refer note 42 (ii)).
Note - 4CCapital work-in-progress
The Capital work in progress comprises cost of Property, Plant and Equipment, other Intangibles assets and Investment Property that
are not yet ready for their intended use at the balance sheet date, the details of which are as under:
Fair value hierarchy and valuation technique
The fair value of investment property has been determined by external, independent property registered valuers, as defined
under Rule 2 of Companies (Registered Valuers and Valuation) Rules 2017, having appropriate recognised professional
qualification and recent experience in the location and category of the property being valued. The Company obtains independent
valuations for its investment properties annually and fair value measurement has been categorised as Level 3. The fair valuation
has been carried out using current prices in an active market for similar properties (market approach) and under replacement
cost method (cost approach).
e) Terms and rights attached to equity shares
The Company is having only one class of equity shares having par value of H 5 each. Each Shareholder is eligible for one vote
per share held. The Dividend proposed by Board of Directors is subject to the approval of Shareholders in the ensuing Annual
General Meeting except in case of Interim Dividend. In the event of Liquidation, Equity Shareholders are eligible to receive the
remaining assets of the Company after distribution of all preferential amount in proportion to their shareholding.
Nature and purpose of other reserves
General Reserve
General Reserve is created out of the accumulated profits of the Company as per the provisions of Companies Act.
Capital Redemption Reserve
The Company has Created Capital Redemption Reserve out of free reserves, a sum equal to the nominal value of the shares purchased
transferred to the capital redemption reserve account.
Retained Earnings
Retained Earnings (excluding accumulated balance of remeasurement of Defined Benefit Plans) represents surplus/ accumulated
earnings of the company and are available for distribution to Shareholders.
CSR Activity Reserve
The Company is required to create the CSR Activity Reserve for the allocation of expenses in respect of CSR activities. CSR Activity
Reserve represents unspent amount, out of amounts set aside of profit earned in the past years for meeting social obligations as per
Department of Public Enterprise guidelines for Corporate Social Responsibility and provisions of the Companies Act, 2013 and rules
made thereunder.
Corpus for Medical Benefits for Employees retired prior to 01.01.2007
The Company has created separate corpus of medical benefits to retired employees who have retired prior to 01.01.2007 in terms
of DPE guidelines.
Other Comprehensive Income (OCI)
Other comprehensive income represents balance arising on account of translation of foreign operation and gains/(loss) from
investments in equity instruments designated at fair value.
The provision for current income-tax has been worked out taking into consideration the provisions of Income Computation and
Disclosure Standards notified by Central Board of Direct Taxes vide Notification No. 87/2016 dated September 29, 2016.
Note - 33Earnings per share
Earnings per Share ("EPS") is determined based on the net profit attributable to the shareholders' of the Company. Basic earnings
per share is computed using the weighted average number of shares outstanding during the year. Diluted earnings per share is
computed using the weighted average number of common and dilutive common equivalent shares outstanding during the year
including share options, except where the result would be anti-dilutive.
Note - 34
(i) Fair value hierarchy
Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into three Levels of
a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for financial instruments.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly
Level 3: unobservable inputs for the asset or liability.
(iii) Valuation technique used to determine fair value
Specific valuation techniques used to value Liquid plan of mutual funds include - the use of net asset value for mutual funds on
the basis of the statement received from investee party.
Specific valuation techniques used to value Unquoted equity shares (Fair Value) through OCI include - income approach (DCF)
and market multiple method.
(iv) Reconciliation Level 3 fair values
The following table shows a reconciliation of opening balances to the closing balances for Level 3 fair values:
Investment in mutual funds are valued at fair value through P&L at each Balance Sheet date.
Investment in subsidiaries, associate and joint venture are measured at cost as per Ind AS 27, 'Separate financial statements'.
Investment in other than subsidiaries, associates, joint ventures and mutual funds are valued at fair value through OCI at each
Balance Sheet date.
The carrying value of the amortised financial assets and liabilities approximate to the fair value on the respective reporting dates.
(ii) Risk management
The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's board of directors has overall
responsibility for the establishment and oversight of the Company's risk management framework. This note explains the sources
of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
(A) Credit risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to credit
risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost.
The Company continuously monitors defaults of customers and other counterparties and incorporates this information
into its credit risk controls.
a) Credit risk management
i) Credit risk rating
The Company assesses and manages credit risk of financial assets based on following categories arrived on the
basis of assumptions, inputs and factors specific to the class of financial assets.
A: Low credit risk on financial reporting date
B: Moderate credit risk
C: High credit risk
In respect of trade receivables, the company recognises a provision for lifetime expected credit loss.
Based on business environment in which the Company operates, a default on a financial asset is considered when
the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting
defaults are based on actual credit loss experience and considering differences between current and historical
economic conditions.
Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy
or a litigation decided against the Company. The Company continues to engage with parties whose balances are
written off and attempts to enforce repayment. Recoveries made are recognised in statement of profit and loss.
(B) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to
ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.
Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of
expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.
Maturities of financial liabilities
The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their
contractual maturities.
(C) Market risk
(i) Foreign exchange risk
The Company has international transactions and is exposed to foreign exchange risk arising from foreign currency
transactions (imports and exports). Foreign exchange risk arises from future commercial transactions and recognised
assets and liabilities denominated in a currency that is not the company's functional currency. The Company does not
hedge its foreign exchange receivables/payables.
The sales to and purchases from related parties are made on 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. There have been no
guarantees provided or received for any related party receivables or payables. For the year ended 31 March 2026, the Company
has recorded impairment of trade receivables relating to amounts owed by related parties using simplified approach as per
the provisions of Ind AS 109. This assessment is undertaken each financial year through examining the financial position of the
related parties.
Note - 39
Ind AS 116 - Leases
A. Company as a lessee
The Company's lease assets primarily consist of leases of lands, cars, office/residential premises and Computer Hardware.
The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and a corresponding lease
liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term
leases) and low value leases.
a) Claims against the Company not acknowledged as debt.
(i) Commercial claims including employee's claims pending in the Courts or lying with Arbitrators amounting to
H 19,845.60 Lakhs (previous year 31 March 2025: H 24,194.58 Lakhs).
(ii) During the year an amount of H 27.69 Lakhs (previous year 31 March 2025: H 19.26 Lakhs) reduced from vendors invoices
for 'delayed supply' on account of PRS in terms of provision of contract, for which credit note is yet to be received.
b) (i) The Company has filed a Special Leave Petition (SLP) before Hon'ble Supreme Court against the dismissal of Writ appeal
filed before Hon'ble Karnataka High Court against VAT Assessment Order of Deputy Commissioner of Commercial
Taxes dated 29th July 2016 levying tax of H 5,253.20 Lakhs (including interest and penalty) (previous year 31st March
2025: H 5,015.47 Lakhs including interest and penalty) for the financial year 2009-10.
(ii) The Company has filed a Special Leave Petition (SLP) before Hon'ble Supreme Court against the dismissal of Writ
appeal filed before Hon'ble Karnataka High Court against the VAT Assessment Order of Deputy Commissioner of
Commercial Taxes dated 14th March 2017 levying tax of H 42,432.56 Lakhs (including interest and penalty) (previous
year 31st March 2025: H 40,452.56 Lakhs including interest and penalty) for the financial year 2010-11.
(iii) The Company has filed a Special Leave Petition (SLP) before Hon'ble Supreme Court against the dismissal of Writ
appeal filed before Hon'ble Karnataka High Court against the VAT Assessment Order of Deputy Commissioner of
Commercial Taxes dated 25th March 2019 levying tax of H 944.67 Lakhs (including interest and penalty) (previous year
31st March 2025: H 893.27 Lakhs including interest and penalty) for the financial year 2013-14.
(iv) The Company has filed writ petition before Hon'ble Karnataka High Court against the Proposition Notice issued by Asst.
Commissioner of Commercial Taxes dated 21st February 2019 for the financial year 2014-15. The Hon'ble Karnataka
High Court vide order dated 25th April, 2019 issued directions to commercial tax department not to enforce demand
order without leave of the court. However, the company received demand order dated 30th March, 2019 levying tax
of H 1,196.36 Lakhs (including interest and penalty) (previous year 31 March 2025: H 1,128.13 Lakhs including interest
and penalty) on 2nd May, 2019.
(v) The Company has filed writ petition before Hon'ble Karnataka High Court against the VAT Assessment Order of Deputy
Commissioner of Commercial Taxes dated 30th September 2020 levying tax of H 877.25 Lakhs (including interest and
penalty) (previous year 31st March 2025: H 824.02 Lakhs including interest and penalty) for the financial year 2015-16.
(vi) The Company has filed writ petition before Hon'ble Karnataka High Court against the VAT Assessment Order of
Deputy Commissioner of Commercial Taxes dated 27th April 2021 levying tax of H 76.65 Lakhs (including interest and
penalty) (previous year 31st March 2025: H 71.24 Lakhs including interest and penalty) for the financial year 2016-17.
(vii) The Company has filed writ petition before Hon'ble Delhi High Court against the order dated 30.04.2024 issued u/s
73 of CGST Act, 2017 by GST Officer of Department of Trade and Taxes Delhi for FY 2018-19 with tax demand of
H 3,527.59 Lakhs (including Interest and Penalty) (previous year 31st March 2025: H 3,261.38 Lakhs including interest
and penalty) on the grounds of limitation. The company has also filed appeal before GST Appellate Authority against
the above order on merits.
(viii) The Company has filed appeal before Assam GST Appellate Authority against the order dated 30.04.2024 issued u/s
73 of CGST Act, 2017 by Deputy Commissioner of State Tax, Assam for FY 2018-19 with tax demand of H 3.43 Lakhs
(including Interest and Penalty) (previous year 31st March 2025: H 3.19 Lakhs including interest and penalty).
(ix) The Company has filed appeal before Gujarat GST Appellate Authority against the order dated 08.12.2025 issued
u/s74 of CGST Act, 2017 by State Tax Officer of Gujarat for FY 2018-19 with tax demand of H21.46 Lakhs (Including
Interest and Penalty).
In terms of the contract(s) entered into with the client, the liability as referred to S.no. (i) to (vi) above shall be reimbursed
by the client whenever, it reaches to its finality.
In respect of above contingent liabilities, it is not probable to estimate the timing of cash outflow, if any, pending the
resolution of Arbitration/Appellate/Court/assessment proceedings.
B. Commitments:
a) Property, plant and equipment - estimated amount of contracts remaining to be executed on capital account (net of
advances) and not provided for amount to H 3,855.05 Lakhs (inclusive of taxes wherever applicable) (previous year 31
March 2025: H 6,171.95 Lakhs (inclusive of taxes wherever applicable)).
b) The Company's estimated share in work programmes committed under production sharing contract and Field development
plan in respect of oil & gas exploration blocks as on 31 March 2026 is H 859.03 Lakhs (previous year 31 March 2025:
H 3,620.46 Lakhs).
c) Commitment towards Right issue of equity shares w.r.t. M/s Numaligarh Refinery Limited is Nil (Previous year 31st March
2025: H 3,457.75 Lakhs).
Note - 41: Guarantees
a) Guarantees issued by the banks and outstanding as on 31 March, 2026: H 1,32,537.63 Lakhs (previous year 31 March 2025:
H 72,699.36 Lakhs), against which a provision of H52,481.82 Lakhs (Previous year 31 March 2025: H 45,361.06 Lakhs) has been
made in the books towards liability for performance guarantees/warranties.
b) Letter of credit outstanding as on 31 March, 2026: H 11,711.16 Lakhs (previous year 31 March 2025: Nil).
c) Corporate Guarantees issued by the Company on its behalf for contractual performance and outstanding as on 31 March, 2026:
H 7,550.40 Lakhs (previous year 31 March 2025: H 10,069.11 Lakhs).
The fees for property card/mutation etc. for above properties, being not ascertainable has not been provided for.
*Gross carrying amount in respect of such plot represent the acquisition cost including provision for registration charges and
stamp duty payable on execution on lease deed.
Further, the company is in the possession of 4297.34 square meters out of the total area of 6826.95 square meters comprising
of 84 flats at Gokuldham, Goregaon (East) Mumbai. The Company has initiated action by filling an application for eviction under
the Public Premises (Eviction of Unauthorised Occupants) Act 1971 and related proceedings under MLRC are in progress. The
said property is partially presented as property, plant and equipment and partially as investment property.
The company classifies the right to consideration in exchange for deliverables as either a receivable or as unbilled revenue.
A receivable is a right to consideration that is unconditional upon passage of time. Trade receivable and unbilled revenue are
presented net of impairment in the Balance Sheet.
Revenues in excess of Invoicing is recorded as unbilled revenue (contract assets) and is classified as a financial asset. Revenue
recognition for Lump sum services and Turnkey contracts is based on percentage of completion method based on cost progress.
Invoicing to the clients is based on milestones as defined in the contract. Revenue from Cost plus and rate plus jobs are recognized
when the related services are performed and revenue from the end of the last invoicing to the reporting date is recognized as
unbilled revenue.
Invoicing in excess of earnings are classified as Income received in advance (contract liabilities) and is classified as other
current liabilities.
During the year ended 31 March 2026 and 31 March 2025, H 37,949.23 Lakhs and H 31,689.83 Lakhs of Contract assets (unbilled
revenue) as of 1 April 2025 and 1 April 2024 respectively has been reclassified to Trade receivables upon billing to customers.
During the year ended March 31,2026, the company recognised revenue of H 1,830.03 lakhs (previous year 31 March 2025: H4,007.67
lakhs) from obligations satisfied in previous periods.
Remaining performance obligations
The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized
at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue.
Performance obligation estimates are subject to change and are affected by several factors, including termination, changes in the
scope of work, adjustment for revenue that has not materialized, and adjustments for currency.
The aggregate value of performance obligations that are completely or partially unsatisfied as of 31 March 2026 is H 15,10,929.30 Lakhs.
Out of this, the Company expects to recognize revenue of around 27% within the next one year and the remaining thereafter. The
aggregate value of performance obligations that are completely or partially unsatisfied as of 31 March 2025 was H 11,71,733.15 Lakhs.
Types of warranties and related obligations
The company is executing consultancy and engineering services and turnkey contracts. The company is providing provision for
estimated liabilities on account of guarantees and warranties etc. in respect of consultancy and engineering services and turnkey
contracts executed by the Company. The said obligation covers performance as well as defect liability period defined in the
respective contracts.
For turnkey contracts, the estimated liability on account of contractual obligations is provided at 1% of revenue recognized based
on risk assessment made by the management. For consultancy and engineering services contracts the estimated liability on account
of contractual obligations is provided as per assessment of probable liability made by the management based on liability clauses in
respective contracts.
A. Brief description of the Company's Subsidiary
a) Certification Engineers International Limited (“CEIL")
Certification Engineers International Limited ("CEIL") is a Government of India Enterprise a wholly owned subsidiary
Company of Engineers India Limited. CEIL undertakes certification, recertification, third party inspection, safety audits for
offshore and onshore oil and gas facilities and other quality sensitive sectors of the industry.
The Company is domiciled in India has its registered office situated at 1 Bhikaji Cama, New Delhi 110066.
CEIL has an Authorized capital of H 1,200 Lakhs (Previous year 31 March 2025: H 1,200 lakhs) and Issued, Subscribed and
Paid-up capital of H 900 lakhs (Previous year 31 March 2025: H 900 lakhs).
B. Brief description of the Company's joint ventures/ Associates
a) TEIL Projects Limited ('TEIL')
A joint venture with Tata Projects Limited was formed in the financial year 2008-09 for pursuing projects on engineering
procurement and construction basis (EPC Projects) in selected sectors such as oil and gas, fertilizers, steel, railways, power
and infrastructure.
TEIL has been formed in this regard having its Registered Office at New Delhi has an Authorized capital of H 1,500 Lakhs
(Previous year 31 March 2025: H 1,500 lakhs) and Issued, Subscribed and Paid-up capital of H 1,100 lakhs (Previous year 31
March 2025: H 1,100 lakhs).
Of the issued, subscribed and paid-up capital, 5,500,000 shares of H 10 each fully paid-up amounting H 550.00 lakhs
(previous year: 31 March 2025 H 550.00 lakhs) are held by the Company, being 50% of paid-up capital of TEIL.
In the financial year 2015-16, it was decided to wind up TEIL and in this regard liquidator has already been appointed on
29 July 2016 and liquidation proceedings are in progress as per provisions of Companies Act.
Till 31 March 2021, the Company's share of negative 'other equity' of H 541.61 Lakhs has been accounted for as impairment
in value of investment.
During the current financial year 2025-26, TEIL had a net loss of Nil.
During the year 2020-21, H 8.39 lakhs towards final distribution of remaining funds of TEIL on account of return of Share
capital of company has been received by the company.
b) Ramagundam Fertilizers and Chemicals Limited ('RFCL')
The Company has, along with National Fertilizers Limited (NFL) and Fertilizer Corporation of India Limited (FCIL)
incorporated a joint venture for setting up and operation of a gas based urea and ammonia complex in February 2015
namely Ramagundam Fertilizers and Chemicals Limited ('RFCL') having registered office in Delhi.
The Company has Authorized share capital of H 200,000 Lakhs (previous year: 31 March 2025: H 200,000 Lakhs) consisting
20,000 Lakhs (Previous year: 31 March 2025: 20,000 Lakhs) equity shares of face value of H 10 each.
The Shareholding of the RFCL, on the finalisation of project cost and requirement of equity for funding the project cost
shall be in the following proportion:
Engineers India Limited (EIL): 26%
National Fertilizers Limited (NFL): 26%
The Fertilizer Corporation of India Limited (FCIL): 11%
State Government of Telangana: 11%
GAIL (India) Limited: 14.30%
HT Ramagundam A/s : 3.90%
Danish Agribusiness Fund IK/S: 3.90%
Investment Fund for Developing Countries: 3.90%
RFCL has entered into concession agreement with FCIL on 23 March 2016 towards award of rights and concession to the
RFCL in regard to facility area (Lease hold land admeasuring approximately 1284 acre) for financing, designing, engineering,
procurement, construction, development, operation and maintenance of the project.
In terms of Shareholders agreement (SHA), FCIL is to be issued equity shares equal to 11% of equity portion of the capital
expenditure of the project. During the Financial year 2020-21 project cost estimate was revised to H6,33,816.00 Lakhs to be
funded through equity of H 1,89,025.00 Lakhs and accordingly total equity issuance to FCIL based on revised project cost is
H 20,793 Lakhs.
c) LLC Bharat Energy Office ('BEO') -Associate Company
During the financial year 2021-22, the Company along with ONGC Videsh Singapore Pte. Ltd., GAIL (India) Limited, IOCL
Singapore Pte. Ltd. and Oil India International Pte. Ltd. having participating interest of 20% each has incorporated a Limited
Liability Company namely LLC Bharat Energy Office in Russia to facilitate liaising with the Russian petroleum industry and
to monitor the existing investments.
During the financial year 2021-22, company has contributed its 20% contribution amounting to H 75.97 Lakhs.
Note 46Employee benefits
Disclosure in compliance with Ind -AS 19 on "Employee Benefits" is as under:
Defined Contribution Plan
Superannuation Fund
The Corporation has Superannuation - Defined Contribution Scheme (DCS) maintained by "Superannuation Pension Trust" wherein
Employer makes a monthly contribution of a certain percentage of 'Basic salary and Dearness Allowance (DA)', out of 30% earmarked
for various superannuation benefits. This is in accordance with the Department of Public Enterprises (DPE) guidelines. These
contributions are credited to Individual Employee's Account maintained with the trust managed by Life Insurance Corporation of
India (LIC) or an optional National Pension Scheme (NPS) account. For the financial year 2025-26, the corporation has made an
overall contribution of H 7,651.67 lakhs (previous year 31 March 2025: H 5,641.83 lakhs) towards Superannuation -DCS by charging it
to statement of Profit and Loss.
Employee Pension Scheme (EPS-95)
During the year, Corporation has recognised H 304.52 lakhs (previous year 31 March 2025: H 307.74 Lakhs) as contribution to Employee
Pension Scheme (EPS-95) in the statement of Profit and Loss.
Defined Benefit Plan
Company is having the following Defined Benefit Plans:
• Gratuity (Funded): Each employee rendering such years of service as defined in the Code on Social Security, 2020 is entitled
to receive gratuity amount based on completed tenure of service at the time of separation from the company. In terms of
DPE Guidelines, on increase of Dearness allowance to the tune of 50%, the gratuity ceiling shall enhance by 25%. Accordingly,
a separate fund in the name of "Enhanced Gratuity fund" was created for enhanced Gratuity. Since the IDA has reached 50%
during the financial year 2025-26 and as such the 'enhanced gratuity fund' created in the past period becomes the part of overall
gratuity fund with the ceiling of H25 lakhs in terms of DPE guidelines.
• Provident Fund (Funded) *: The employee benefit of PF is administered through a separate irrevocable Employees Provident
Fund Trust for managing the Provident Fund accumulation of employees. The company's contribution towards Provident Fund
is remitted to this trust based on a fixed percentage of eligible employee's salary. An application for surrender for EIL PF Trust
has been filed by the Company with EPFO which is under process.
• Post-Retirement Medical Benefits (Funded): PRMB scheme provides medical coverage to retired employees and their eligible
dependent family members.
• Other benefits on Retirement (Unfunded): Other benefit is allowed to employees to facilitate them to settle down
upon retirement.
Other Long term Employee Benefits
• Leave encashment (Funded): The employees of the company are entitled for Earned and Half pay leave as per the
approved company Rules.
• Long Service Awards (Unfunded): EIL has formulated a long service award scheme, wherein the employees are recognized on
completion of number of prescribed years of service. The long service award scheme is a symbolic gesture for rewarding loyalty
& belongingness demonstrated by employees who stayed for long years with the Company.
• Shortfall of net income of trust below government specified minimum rate of return, if any, and loss to the trust due to its investments turning stressed are
being made good by the Company. Out of the investments made by PF Trust in the past, some issuers of securities had defaulted in interest payments and / or
principal repayments. Company, as principal employer under the Provident fund regulations had made good the loss in value of these investments.
In this regard, Actuarial valuation as on 31 March, 2026 was carried out by the Actuary to find out value of Projected Benefit Obligation
of the Company towards Provident Fund. The present value of benefit obligation for the period ended 31 March 2026 is H 2,04,377.21
lakhs (Previous year 31 March 2025: H 1,98,498.03 lakhs). The fair value of the assets of Provident Fund trust as of balance sheet date
is greater than the present value of benefit obligation. The Company has net surplus of H 5,326.45 lakhs (previous year 31 March
2025: H 9,418.57 lakhs) determined through actuarial valuation. Accordingly, Company has not recognised surplus as an asset, and
the remeasurement loss/gain in 'other Comprehensive Income', as these pertains to Provident Fund Trust and not to the company.
*Changes in Defined benefit obligation due to 1 % Increase/Decrease in Mortality Rate, if all other assumptions remain
constant is negligible.
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 obligation has been calculated using
the projected unit credit method at the end of the report period, which is the same as that applied in calculating the defined
benefit obligation liability recognised in the statement of financial position.
There is no change in the method of the valuation for the prior period. For change in assumption please refer to table (e) above,
where assumptions for prior period, if applicable, are given.
Note - 47Segment reporting
In line with Indian Accounting Standard (IndAS 108) "Operating Segments", the Company has (segmented) identified its business activity
into two business segments i.e. Consultancy and Engineering Projects and Turnkey Projects, taking into account the organizational
structure and internal reporting system as well as different risk and rewards of these segments. Segment results are given below:
Segment revenue with major customers
During the year ended 31 March 2026, H 75,152.02 Lakhs (Previous year 31 March 2025: H 57,934.25 Lakhs) of the Company's revenues,
each individually exceeding 10% in the consultancy and engineering projects segment was generated from three (previous year 31
March 2025: three) customers.
During the year ended 31 March 2026, H 1,96,289.16 Lakhs (Previous year 31 March 2025: H 1,26,053.65 Lakhs) of the Company's
revenues, each individually exceeding 10% in the turnkey projects segment was generated from two (Previous year 31 March 2025:
two customers).
Note - 48
(a) In one of the ongoing turnkey project, the company had in previous periods reduced the contract price on account of price
deduction for anticipated delays in the completion of contract as per provisions of Ind AS 115 "Revenue from Contracts with
Customers". On Mechanical completion of the project as per the contractual provisions, an adjustment in the contract price has
been made resulting into increase in Revenue and Profit in turnkey segment by H 22,652.22 lakhs (Previous year 31 March 2025:
Nil) and H 21,357.81 lakhs (Previous year 31 March 2025: Nil) respectively during the financial year 2025-26.
(b) The turnover and profit from operation for the year ended 31 March 2026 includes H 500.73 lakhs (previous year 31 March 2025
: H 12,891.14 lakhs) and H 435.50 lakhs (previous year 31 March 2025: H 11,226.95 lakhs) respectively on account of impact of
variable consideration accounted for in Consultancy and Engineering Projects segment.
Note - 49
The company in the month of April 2016 terminated a contract, consequent to receipt of findings of investigating agency that
certificate submitted by the contractor for qualifying the contract was bogus. The facts in this regard including lodging of claim,
subsequent to termination of contract had been disclosed in the annual account from financial year 2015-16.
Subsequent to the termination of contract, the company is completing the project at the risk and cost of contractor in terms of provisions of
the contract. Contractor has gone into arbitration and had submitted arbitration notice and as such Arbitral Tribunal had been constituted.
Contractor had filed its statement of claim amounting to H 40,960.75 Lakhs. EIL had also filed its reply along with its counter claim for H
12,907.15 Lakhs and application to implead the parent company of contractor, decision on which was pending with the Arbitral Tribunal.
Meanwhile, a third party creditor of the contractor has filed an application with NCLT under Insolvency and Bankruptcy Code (IBC) and
Insolvency Resolution Professional (IRP) has been appointed and arbitration proceedings have been stayed sine die. EIL has filed its claim
against the contractor with the IRP. Hon'ble Supreme Court, on the application of contractor, has stayed the Resolution proceedings. The
company has approached Arbitral Tribunal and NCLT for revival of its counter claims wherein company has been directed to approach the
appropriate forum and accordingly company has filed an impleadment application before the Hon'ble Supreme Court. The management
does not consider any possible obligation on this account requiring future probable outflow of resources of the company.
Note - 50
During the year 2001, one of Clients had invited bids for carrying out certain works at its Bombay High Off-shore Exploration Site. The
entire work consisted of a number of activities, including survey, design, engineering, procurement, fabrication, transportation and
commissioning of two well head platforms with associated equipment.
For submission of the said bid, the company had entered into Business Cooperation Agreement (BCA) with sub-contractor & Vendor
(which are "Group Companies") and accordingly these Group Companies, in accordance with their respective scope of works, valued
and classified the platforms and submitted the same to company for inclusion in its price bid to Client. The process of classification
and valuation of platforms and calculation of corresponding customs duty were done by Group Companies as per their scope of work.
Customs Duty element as submitted by the Group Companies, had simply been incorporated by the company in its price bid to Client.
During FY 2002-03, the Contract was awarded to the Company by the Client. Out of the entire scope of work under the above Project,
the Company issued a Purchase Order for supply of the Platforms along with jackets, piles and other material, and sub-contracted
transportation and installation works, on back to back basis, to vendor and sub-contractor respectively (above mentioned Group
Companies) which constituted approximately 95% of the entire scope of work.The custom duty amount was included in the Sub¬
contract as also in the main contract with client as worked out by Group Companies themselves.
Group Companies represented to the company and persuaded that it was not possible for them to become the consignee for the
subject materials and to avoid any delay in the execution of the project it would be prudent and expedient to mention the name of
the company as the consignee for the subject material (Though as per the express contractual stipulation it was Group Companies
who had to assume the role & responsibility of the consignee of the goods). Further they represented that they do not have IEC Code
and hence, they could not have imported the goods and there would not be sufficient time for them to get such a code to enable
imports. Believing the aforesaid advice to be bonafide and true and that company being the importer would aid speedy and prompt
clearance of the Goods, Company agreed to become the Consignee.
A Show Cause Notice was issued by Custom authorities to the Group Companies and the Company on account of misclassification
and undervaluation of equipment's at the time of import for the above said Project of Oil Well Platform. On account of non¬
cooperation by the Group Companies, (who had actually carried out the classification and valuation), in replying to the Show Cause
Notice, the Company was constrained to approach the Custom and Central Excise Settlement Commission in the FY 2006-07. During
the Settlement Commission proceedings, which was also participated in by the Group Companies, on account of noncooperation
of the latter, Company was constrained to admit the liabilities to the tune of H2,309.80 Lakhs. During the FY 2007-08, Custom and
Central Excise Settlement Commission passed Final Order determining the total Differential Custom Duty liability at H4,277.21 Lakhs
with Interest@ 10% per annum thereon and Penalty of H10 Lakhs. The total amount of H6,224.20 Lakhs (H 4,277.21 Lakhs towards
differential custom duty and H1,946.99 Lakhs towards Interest & Penalty) was deposited during the FY 2007-08 and accounted for
during the FY 2006-07 & FY 2007-08.
In terms of agreements entered into by the Company with the Group Companies, Custom Duty was to be borne by the Group
Companies and they were required to indemnify the Company for any liabilities in this respect and accordingly the Company invoked
the indemnity clause and paid the Differential Custom Duty from the retention monies of the Group Companies along with some
additional amount from its own account. The Group Companies raised disputes on their obligations on this account and invoked
arbitration clause under the sub-contract and Purchase Order. The Company has also lodged its Counter-Claim on the Group
Companies for recovery of differential Custom Duty Liability as detailed above.
During the FY 2011-12, the Arbitral Tribunal awarded an amount of $1,26,47,033 plus applicable interest in favour of the Group
Companies. The Company, aggrieved by the arbitral award and considering the legal opinion obtained in this respect, filed a challenge
petition before the Hon'ble High Court of Delhi against the said arbitral award in its entirety.
In the financial year 2021-22, in the appeal filed by the Company, Hon'ble High Court of Delhi gave interim order directing the
Company as follows:-
1. The Court gave interim direction to the Company to deposit the Awarded Amount with the Registrar General of the Court.
Subject to the said deposit being made by the Company, the enforcement of the award shall be stayed.
2. The Court further directed that if the award amount is deposited, the same shall be released to Group Companies against an
unconditional Bank Guarantee equivalent to 105% of the amount, to the satisfaction of the Registrar General of the Court.
3. In the event the Company prevails in its challenge against the Arbitral Award which is currently sub-judice and being heard
by the Court, any amount collected by the Group Companies from Registrar General of the Court shall be refunded to the
Company along with interest at the rate of 10% per annum.
The interim order was challenged before Supreme Court by the Company, however the Supreme Court has not intervened. Therefore,
in compliance to the directive of Hon'ble High Court of Delhi, an amount of H 16,476.20 Lakhs (awarded amount of $1,26,47,033 plus
applicable interest) was deposited by the Company with the Registrar General of Hon'ble High Court of Delhi on 18th May 2022.
However the main challenge petition filed by the Company against the arbitral award is subjudice and being heard by Hon'ble Court.
Pending final disposal of the challenge petition by the Hon'ble Court, considering the provisions of Ind AS 37 'Provisions, Contingent
Liabilities and Contingent Assets' and Material Accounting Policies of the Company, H 6,848.03 lakhs (H 6,848.03 lakhs FY 2024-25) has
been disclosed as contingent liability Note-40) and H 9,628.17 lakhs has been recognized in the books of accounts in earlier years.
Note - 51Movement of Provisions
In terms of Indian Accounting Standard (Ind AS 37) "Provisions, contingent liabilities and contingent assets", the requisite
disclosures are as under:
Nature of provisions:
A) Contractual Obligations:
Contractual obligations represent provision for estimated liabilities on account of guarantees and warranties etc. in respect of
consultancy and engineering services and turnkey contracts executed by the Company. The said obligation covers performance
as well as defect liability period defined in the respective contracts.
For turnkey contracts, the estimated liability on account of contractual obligations is provided at 1% of revenue recognized
based on risk assessment made by the management. For consultancy and engineering services contracts the estimated liability
on account of contractual obligations is provided as per assessment of probable liability made by the management based on
liability clauses in respective contracts.
During the year, pursuant to settlement of performance obligation with Client in Consultancy & Engineering Project Segment,
the contractual obligation in respect thereof amounting of H 3,516.70 lakhs (previous year 31 March 2025: H 8,253.93 lakhs) has
been written back.
B) Impairment in PF Trust Investment:
The employee benefit of PF is administered through a separate EIL Employees Provident Fund Trust. Out of the investments
made by PF Trust in the past, some issuers of securities had defaulted in interest payments and / or principal repayments.
C) Expected Losses:
For each contracts, at reporting date, total contract cost and total contract revenue are estimated. In respect of contracts, where
it is probable that total estimated contract cost will exceed the estimated total contract revenue, the expected loss is recognised
as an expense in the statement of Profit and Loss.
D) Provision for Abandonment:
Provision for decommissioning cost/abandonment cost in respect of assets under Joint Operations is considered as per
participating interest of the Company on the basis of estimates approved by the respective operating committee. Wherever the
same are not approved by the respective operating committee, decommissioning cost/abandonment cost estimates provided
by the operator of the Block are considered.
E) The disclosure in respect of contingent liabilities is given as per note no. 40.
Note - 52Loans given and Investment made
Details of loans given, investment made and guarantee given covered U/S 186 (4) of the Companies Act, 2013
a) Loans and guarantee given- Nil
b) Investments made are given in Note. No. 7.
Note - 53Dues to Micro and Small Enterprises
The dues to Micro and Small Enterprises as required under the Micro, Small and Medium Enterprises Development Act 2006 to the
extent information available with the company is given below:
Note - 54Research and Development Costs
The statement of profit and loss account includes research and development revenue expenditure of H 2,298.42 Lakhs (previous year
31 March 2025: H 2,321.85 Lakhs). The capital expenditure of research and development assets is H 26.89 Lakhs (previous year 31
March 2025: H 357.52 Lakhs).
Note - 55Capital Grant in respect of Research projects
During the year, the company has not received any capital grant. In respect of Capital grants received in earlier years towards
procurement/setting up of Capital assets for research project undertaken, the unamortized capital grant amount as on 31 March
2026 is of H 24.52 Lakhs (previous year 31 March 2025: H 27.46 Lakhs). During the year, the Company has recognised H 2.95 Lakhs
(previous year 31 March 2025: H 2.96 Lakhs) in the statement of profit and loss as amortisation of capital grants.
Note - 56Impairment of Assets as per Ind AS 36
There is no impairment of cash generating assets during the year in terms of Indian Accounting Standard (Ind AS-36)
"Impairment of Assets".
Note - 57 (a)Benami Property
The company is not holding any Benami Property as on 31 March 2026 and 31 March 2025. Further, no proceedings have been
initiated or pending against the Company for holding any Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules
made thereunder.
Note - 57 (b)Details of Crypto Currency or Virtual Currency
The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year 2025-26.
Note - 57 (c)Wilful Defaulter
The company has not been declared wilful defaulter by any bank or financial institution.
Note - 57 (d)Borrowings secured against current assets
The Company has been sanctioned fund-based and non-fund-based working capital facilities from banks, comprising both secured
and unsecured limits. The secured facilities are secured by way of charge on the current assets of the Company, both present and
future, on a pari passu basis with other lenders under multiple banking arrangements. In respect of unsecured facilities, no charge or
security has been created on the assets of the Company. The company is availing non fund based facilities & fund facilities from the
banks and furnishing statement of security as and when required by the bankers, more particularly at the time of renewal exercise
i.e. on yearly basis. Statement of security filed by the company with banks is in agreement with the books of account.
Note -57 (e)Registration of charges or satisfaction with Registrar of Companies (ROC)
There are no pending charges which is yet to be registered with Registrar of Companies (ROC) as on 31 March 2026 with respect to
the Non fund based facilities/ fund based facilities availed by the company.
Note - 58
For lump-sum services and turnkey contracts, balance efforts, cost and time to complete the contract including probability of levy
for liquidated damages and price reduction schedules for delay as on reporting date are assessed by the management and relied
upon by the auditors.
Note - 59Confirmation of Assets & Liabilities
Some balances of trade and other receivables, trade and other payables are subject to confirmation / reconciliation. Adjustment, if
any, will be accounted for on confirmation / reconciliation of the same, which will not have a material impact.
Note - 60Corporate social responsibility expenses
The requisite disclosure relating to CSR expenditure in terms on amended Schedule III of the Companies Act and Guidance Note on
Corporate Social Responsibility (CSR) issued by the Institute of Chartered Accountants of India:
(1) Net Profit after taxes Non-cash operating expenses (Depreciation) Interest other adjustments like loss on sale of
Fixed assets etc.
(2) Tangible Net worth Lease liabilities deferred tax liabilities
* This is on account of increase in profitability of the company due to enhanced operations whereas Interest cost & Lease payments have marginally decreased
resulting into a higher debt service coverage ratio of 37.67 times in comparison to 26.65 times in previous year.
** This is on account of increase in working capital due to enhanced operations, compensated to some extent by increase in Revenue resulting into reduction in
Net Capital turnover ratio from 7.91 time to 5.46 times.
Note - 63
Previous year's figures have been regrouped/reclassified wherever necessary to make them comparable to the figures of
the current year.
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