3.5 Provisions (other than for employee benefits)
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated
reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. The amount recognised as a
provision is the best estimate of the expenditure required to settle the present obligation at the balance sheet date, taking into account
the risks and uncertainties surrounding the obligation. Expected future operating losses are not provided for.
3.6 Contingent liabilities and contingent assets
A contingent liability is a possible obligation that arises from a past event, with the resolution of the contingency dependent on uncertain
future events, or a present obligation where no outflow is possible. Major contingent liabilities are disclosed in the financial statements
unless the possibility of an outflow of economic resources is remote. Contingent assets are not recognised in the financial statements but
disclosed, where an inflow of economic benefit is probable.
3.7 Revenue Recognition
Interest income
Interest income is recognised in the statement of Profit and Loss using effective interest rate (EIR) on all financial assets subsequently
measured under amortised cost or fair value through other comprehensive income (FVTOCI) except for those classified as held for trading.
The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any discount or premium on acquisition, fees
and costs that are an integral part of the EIR. The Company recognises interest income using a rate of return that represents the best
estimate of a constant rate of return over the expected life of the loan. Hence, it recognises the effect of potentially different interest rates
charged at various stages, and other characteristics of the product life cycle (including prepayments, penalty interest and charges).
If expectations regarding the cash flows on the financial asset are revised for reasons other than credit risk. The adjustment is booked as a
positive or negative adjustment to the carrying amount of the asset in the balance sheet with an increase or reduction in interest income.
The adjustment is subsequently amortised through Interest income in the statement of profit and loss.
Interest income on all trading assets and financial assets mandatorily required to be measured at FVTPL is recognised using the contractual
interest rate in net gain on fair value changes.
Dividend income
Dividend income is recognised in profit or loss on the date when the Company's right to receive payment is established.
Trading income
Trading income includes all gains and losses from changes in fair value and the related interest income or expense and dividends, for
financial assets and financial liabilities held for trading.
3.8 Expenses
All expenses are accounted for on accrual basis.
3.9 Income tax
Income tax expense comprises of current tax and deferred tax. Current tax and deferred tax is recognised in the Statement of profit and
Loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive
income.
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax
payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be
paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or
substantively enacted by the end of the reporting period.
Current tax assets and current tax liabilities are off set only if there is a legally enforceable right to set off the recognised amounts, and it
is intended to realise the asset and settle the liability on a net basis or simultaneously.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognised in respect of carried forward tax
losses and tax credits. Deferred tax is not recognised for temporary differences arising on the initial recognition of assets or liabilities in a
transaction that is not a business combination and that affects neither accounting nor taxable profit or loss at the time of the transaction.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can
be used. The Company recognises a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is
convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realised.
Deferred tax assets - unrecognised or recognised, are reviewed at each reporting date and are recognised / reduced to the extent that it
is probable / no longer probable respectively that the related tax benefit will be realised.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based
on the laws that have been enacted or substantively enacted by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the
reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to off set current tax liabilities and assets, and they relate
to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current
tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
Deferred tax liabilities / assets on change in fair value of investments not part of the profit or loss are recognised through OCI.
3.10 Trade Payables
Trade payables represent liabilities for goods and services provided to the Company and are unpaid at the reporting period. The amounts
are unsecured and usually paid within time limits as contracted. Trade and other payables are presented as current liabilities unless the
payment is not due within 12 months after the reporting period. They are recognised initially at their transactional value which represents
the fair value and subsequently measured at amortised cost using the effective interest method wherever applicable.
3.11 Commitment
Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:
(a) estimated amount of contracts remaining to be executed on capital account and not provided for;
(b) uncalled liability on shares and other investments partly paid;
(c) funding related commitment to associate companies; and
(d) other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management.
3.12 Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
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.
3.13 Dividend on ordinary shares
The Company recognises a liability to make cash or non-cash distributions to equity holders of the parent 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. A corresponding amount is recognised directly in equity.
Non-cash distributions are measured at the fair value of the assets to be distributed with fair value re-measurement recognised directly
in equity.
Upon distribution of non-cash assets, any difference between the carrying amount of the liability and the carrying amount of the assets
distributed is recognised in the statement of profit and loss.
3.14 Determination of fair values
Fair values have been determined for measurement and disclosure purposes based on the following methods. Where applicable, further
information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
i) Financial assets
Financial assets are initially measured at fair value. If the financial asset is not subsequently accounted for at fair value through
profit or loss, then the initial measurement includes directly attributable transaction costs. These are measured at amortised cost
or at FVTPL or at FVOCI.
Investments in equity instruments are measured at FVOCI and using adjusted net assets method for fair valuation of investment in
unquoted securities based on independent valuation report.
ii) Trade and other receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest
method less provision /or impairment. Short-term receivables with no stated interest rate are measured at the original invoice
amount if the effect of discounting is immaterial.
iii) Financial liabilities
Financial liabilities are measured at fair value, at initial recognition and for disclosure purposes, at each annual reporting date. Fair
value is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest
at the measurement date.
3.15 Segment reporting
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of the Company's other components, and for which
discrete financial information is available. All operating segments operating results are reviewed regularly by the Chief Operating
Decision Maker (CODM) to make decisions about resources to be allocated to the segments and assess their performance. Refer Note 30
for segment information presented.
Operating segments are reported in manner consistent with the internal reporting provided to the chief operating decision maker.
The Directors of the Company has been identified as being the chief operating decision maker by the management of the Company.
(a) The Company received dividends other than from subsidiary of D437.03 lakhs (31 March 2025: C384.78 lakhs) from its investments in
equity shares, carried at FVOCI, recorded as dividend income.
(b) The Company has designated its equity investments at FVOCI on the basis that these are not held for trading and held for strategic purposes.
(c) No strategic investment was disposed off during 2025-26 and 2024-25 and there were no transfer of any cumulative gain or loss within
equity relating to these investments.
(d) During the year, the Company's investment in Pavapuri Trading & Investment Co. Ltd. was reclassified from quoted investments to unquoted
investments consequent to the delisting of the company's equity shares from the Calcutta Stock Exchange (CSE) with effect from 17 April
2025.
The description of the purpose of each reserve within other equity are as follows:
(a) Capital Reserve
The difference between the net fair value of assets and liabilities acquired and shares issued pursuant to the schemes in earlier years.
(b) Share Premium
Share Premium, transferred to the Company pursuant to the scheme in earlier year, is a sum equal to the aggregate amount of the
premium received on issue of shares at premium by the transferor company, whether for cash or otherwise. The reserve may be applied in
accordance with the provision of Section 52 of the Companies Act, 2013.
(c) Capital Redemption Reserve
The Company has created Capital Redemption Reserve on redemption of preference shares in accordance with the provision of Section 69
of the Companies Act, 2013 including amount transferred pursuant to the scheme in earlier year.
(d) General Reserve
General Reserve, transferred to the Company pursuant to the scheme in earlier year, had been created on declaration of dividend in
accordance with the Companies (Transfer of Profit to Reserve) Rules, 1975 read with the relevant provisions of the Companies Act, 1956 by
the transferor company. After enactment of the Companies Act, 2013, it is not mandatory on declaration of dividend. It is a free reserve.
(e) Reserve Fund
Reserve Fund, transferred to the Company pursuant to the scheme in earlier year, had been created in accordance with provisions of
Section 45-IC of the Reserve Bank of India Act, 1934 by the transferor company.
(f) Retained Earnings
It comprise of accumulated profit of the Company after dividends or other distributions, if any, paid to shareholders including amount
transferred pursuant to the scheme in earlier year.
(g) Equity instruments through OCI
The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income.
These changes are accumulated within the FVOCI equity investments within equity including amount transferred pursuant to the scheme
in earlier year. The Company transfers amounts therefrom to retained earnings when the relevant equity securities are derecognised.
(h) Debt instruments through OCI
The Company recognises changes in the fair value of debt instruments held with a dual business objective to collect and sell in other
comprehensive income. These changes are accumulated in the FVOCI debt investments reserve. The Company transfers amounts from this
reserve to profit or loss when the debt instruments are derecognised. Any impairment loss on such instruments is reclassified immediately
to the Statement of Profit and Loss.
D. The Company, being CIC, is not required to disclose details of loans, investments and guarantees covered under Section 186(4) of the
Companies Act, 2013.
E. Terms and conditions of transactions with related parties
(i) The transactions with related parties have been entered at an amount which are not materially different from those on normal
commercial terms.
(ii) Neither amounts is outstanding nor receivable except as given above. Neither guarantees have been given nor received.
(iii) For the year ended 31 March 2026, the Company has not recorded any impairment of receivables relating to amounts owed by a
related parties. This assessment is undertaken in each financial year through examining the financial position of the related parties
and the market in which the related party operates.
(iv) The sitting fees and remuneration of directors is determined by the Nomination & Remuneration Committee having regard to the
performance of individuals and market trends.
The following methods and assumptions were used to estimate the fair values:
(a) The fair value of the quoted investments are based on market price at the respective reporting date.
(b) The fair value of the unquoted investments are based on independent valuation report using adjusted net assets method and recent
transaction price.
B. Measurement of fair values
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in forced or liquidation sale.
The Company has established the following fair value hierarchy that categories the value into 3 levels. The Company's policy is to recognise
transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period. During the year ended March 31, 2026,
certain equity investments previously classified as Level 1 were transferred to Level 3.
This transfer occurred because the principal market for these securities became inactive or the same got delisted during the year, and fair
value was subsequently determined using valuation techniques with unobservable market data inputs (Level 3). The amount transferred
out of Level 1 and into Level 3 was I 9036.64 lacs during the year ended 31 March 2026.
In particular, the investment in Pavapuri Trading & Investment Co Ltd was transferred from Level 1 to Level 3 following the delisting of
its equity shares from the stock exchange during the year. Accordingly, the fair value of the investment is determined using appropriate
valuation techniques involving significant unobservable inputs.
C. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
(i) Credit risk
(ii) Liquidity risk
(iii) Market risk
Risk management framework
The Company's principal financial liabilities includes payable, subordinated liabilities and other financial liabilities. The main purpose
of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include cash and cash
equivalents, receivables, investments and other financial assets that derive directly from its operations.
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management
framework.
The Company's audit committee oversees how management monitors compliance with the Company's risk management policies
and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The
audit committee is assisted in its oversight role by internal audit. Internal auditor undertakes both regular and ad hoc reviews of risk
management controls and procedures, the results of which are reported to the audit committee.
The Company's primary risk management focus is to minimise potential adverse effects of market risk on its financial performance.
The Company's risk management assessment and policies and processes are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and
management policies and processes are reviewed regularly to reflect changes in market conditions and the Company's activities.
(i) Credit risk
Credit risk is the risk of financial loss of the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Company receivables from customers. The Company has no significant concentration of
credit risk with any counterparty. The carrying amount of financial assets represent the maximum credit risk exposure. The Company
assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.
Receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics
of the customer, including the default risk of the industry also has an influence on credit risk assessment. Customer credit risk is
managed by each business unit subject to the Company's established policy, procedures and control relating to the customer credit
risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers.
Outstanding receivables and the credit worthiness of its counter parties are periodically monitored and taken up on case to case basis.
There is no material expected credit loss based on the past experience. However, the Company assesses the impairment of receivable
on case to case basis and has accordingly created loss allowance on receivables.
Exposure to credit risks
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However management
also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry.
The Company evaluates the concentration of risk with respect to receivables as low, as the Company's income are mostly on cash.
There is no credit risk by type of counterparty for the Company's exposure because there is no receivables.
Receivables are primarily unsecured and are derived from revenue earned from customers. Credit risk is managed through credit
approvals, establishing credit limits and by continuously monitoring the creditworthiness of customers to which the Company grants
credit terms in the normal course of business. As per simplified approach, the Company makes provision of expected credit loss on
trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provisions at each reporting
date whenever is for longer period and involves higher risk. On account of adoption of Ind AS 109, the Company uses expected credit
loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the credit loss allowance for
receivables.
The Company's management also pursue all legal option for recovery of dues, wherever necessary based on its internal assessment.
(ii) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of credit facilities to meet obligations when due. Processes and policies related to such risks are
overseen by senior management. Management monitors the Company's liquidity position through rolling forecasts on the basis of
expected cash flows.
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.
Exposure to liquidity risks
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on
contractual undiscounted payments:
(iii) Market risk
Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a financial
instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange
rates, commodity prices, regulatory changes, equity prices and other market changes that effect market risk sensitive instruments.
Market risk is attributable to all market risk sensitive financial instruments including investments and payables.
Foreign currency risks
All transactions of the Company are in Indian currency, consequently Company is not exposed to foreign currency risk. The Company
has no outstanding foreign currency exposure or related derivative contract.
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 rates. The Company is not exposed to the risk of changes in market interest rates because it does not have any
floating rate borrowings nor does it have any variable rate financial assets.
The Company has no floating rate borrowings hence it is not subject to interest rate risk of financial liabilities. The Company has
given loan to various companies which are for short-term period and repayable on demand. Further the interest of such loans are
fixed for the tenure of the loan and are subject to interest rate risk, since neither the carrying amount nor the future cash flows will
fluctuate because of a change in market interest rates.
Further other financial instruments invested in bonds are also at fixed rate of interest hence are not subject to interest rate
fluctuations.
Cash flow sensitivity analysis
Fixed rate instruments that are carried at amortised cost are not subject to interest rate risk for the purpose of sensitive analysis.
Equity risk
The Company's quoted equity instruments are susceptible to market price risk arising from uncertainties about future values of the
investment securities. The reports on the equity portfolio are submitted to the Company's senior management on a regular basis. The
senior management reviews and approves all equity investment decisions.
Sensitivity analysis
Investment in equity instruments (Quoted) of the Company are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange
(NSE) in India. The table below summaries the impact of increase/decrease of the Nifty 50 index on the Company's equity and profit for the
period. The analysis is based on the assumption that the BSE / NSE had increased / decreased by 10% with all other variables held constant,
and that all the Company's equity instruments moved in line with the index.
35. Capital management
The primary objectives of the Company's capital management policy are to ensure that the Company complies with externally imposed
capital requirements and maintains strong credit ratings and healthy capital ratios in order to support its business and to maximise
shareholder value.
The Company manages its capital structure and makes adjustments to it according to changes in economic conditions and the risk
characteristics of its activities. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend
payment to shareholders, return capital to shareholders or issue capital securities. No changes have been made to the objectives, policies
and processes from the previous years. However, they are under constant review by the Board.
No dividend has been paid by the Company during the current and previous financial year.
37. 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 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 provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries. 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 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 provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
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