2.2.16 Provisions and contingent liabilities
Provisions
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. Provisions are
determined by discounting the expected future cash
flows (representing the best estimate of the expenditure
required to settle the present obligation at the balance
sheet date) at a pre-tax rate that reflects current market
assessments of the time value of money and the risks
specific to the liability. The unwinding of the discount is
recognised as finance cost. Expected future operating
losses are not provided for.
Warranty and product related settlements
A provision for warranty and products related
settlements is recognised when the underlying products
or services are sold. The provision is based on technical
evaluation, global experience, historical warranty and
product related settlements data and a weighting of all
possible outcomes by their associated probabilities.
Onerous contracts
A contract is considered to be onerous when the expected
economic benefits to be derived by the Company from
the contract are lower than the unavoidable cost of
meeting its obligations under the contract. The provision
for an onerous contract is measured at the present
value of the lower of the expected cost of terminating
the contract and the expected net cost of continuing
with the contract. Before such a provision is made, the
Company recognises any impairment loss on the assets
associated with that contract.
Contingent liabilities
Contingent liabilities are disclosed when there is
a possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the
Company or a present obligation that arises from past
events where it is either not probable that an outflow of
resources will be required to settle or a reliable estimate
of the amount cannot be made.
Provision for site restorations costs
The Company has recognized a provision to clean up
historically contaminated waste at sites and bear the
costs thereof. In estimating the provisions, the Company
have estimated costs based on currently available
information about the likely extent of contamination and
potential clean-up techniques. Due to the associated
uncertainty, it is possible that estimates may need
to be revised during the next years as the extent of
contamination and potential approaches to clean up are
assessed in more detail.
Contingent assets
Contingent assets are not recognised. However, when
realisation of income is virtually certain, then the
related asset is no longer a contingent asset, and is
recognised as an asset.
2.2.17 Segment reporting
An operating segment is a component 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 other components,
and for which discrete financial information is available.
The Company is engaged in the business relating
to products, projects and services for electricity
transmission and related activities, which has been
defined as one business segment. Accordingly, the
Company's activities/business is reviewed regularly
by the Company's Managing Director / Chief Executive
Officer assisted by an executive committee from an
overall business perspective, rather than reviewing its
products/services as individual standalone components.
Based on the dominant source and nature of risks and
returns of the Company, management has identified its
business segment as its primary reporting format.
2.2.18 Cash flow statement
Cash flows are reported using the indirect method,
whereby profit for the period is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the
Company are segregated.
Note:
a) The Company participates in the cash pool arrangement with LM Wind Power Blades (India) Pvt Ltd invest short term funds
based upon the requirement/ availability of working capital on daily basis, pursuant to the arrangement, the Company has
invested the funds amounting to H38,430.8 million (31 March 25: 25,968.0 million) at the stipulated rate of interest in
the cash pool account. Outstanding balance of inter corporate deposit as at 31 March 26 is H 9,710.4 million (31 March
25: 5783.4 million). As per the terms of the agreement the inter corporate deposit is repayable on demand and bears an
interest in the range of @ 5.49% to 6.47% p.a. (31 March 25: 6.47% to 7.14% p.a.)
b) The Lending to cash pool is secured by the guarantee from ultimate Parent Company i.e GE Vernova Inc. w.e.f. 29
September 2025. The obligations of the guarantor is upto payment of the amounts due under the Cash Pooling Agreement
and INR 10,000 million. The Guaranty shall automatically terminate on 31 December 2026.
Terms and rights attached to equity shares
The Company has a single class of equity shares having a par value of H 2/- per share fully paid up. Accordingly, all equity
shares rank equally with regard to dividends and share in the Company's residual assets on winding up. The equity shares
are entitled to receive dividends as declared from time to time. Voting rights cannot be exercised in respect of shares on
which any call or other sums presently payable has not been paid. Failure to pay any amount called up on shares may lead
to their forfeiture.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company,
remaining after distribution of all preferential amounts, in proportion to the number of equity shares held.
Nature and description of reserves:
Securities premium
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the
provisions of the Companies Act, 2013.
General reserve
Free reserve to be utilised as per provisions of the Companies Act, 2013.
Cash Flow Hedge Reserve
This reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion
of hedging instruments entered into for cash flow hedges. This reserve will be reclassified to statement of profit and loss only
when the hedged transaction affects the profit or loss.
Deemed equity/ Capital reserve
Represents equity contribution by the ultimate holding company under employee stock option/RSU scheme by way of issuing
ESOPs/RSUs to the employees of the Company.
17 (b). Capital management
Risk management
The Company's objectives when managing capital are to:
• safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits
for other stakeholders and
• maintain an optimal capital structure to reduce the cost of capital.
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain the future development of the business.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt, consistent with others in the industry. The
Company monitors capital using a gearing ratio, which is calculated as:
Net debt (total borrowings (including interest accrued) net of cash and cash equivalents) divided by ""Total equity"" (as shown
in the Balance Sheet).
(i) Information about other provisions and significant estimates
Warranty and other product related settlements - Warranty and other product related settlement costs are estimated
on the basis of contractual agreement and after considering recent historical trends, costs of rectification, technical
evaluation and past experience. The timing of outflows is expected to be as per warranty periods as specified in various
contracts. Further, estimates, wherever required, are made on a best estimate basis.
Contract losses- Provision for contract losses are based on difference between total estimated revenues and total
estimated costs. This is an application of the prudence concept under which anticipated losses are recognized immediately
in the Statement of Profit and Loss. The timing of outflows is expected over the period specified in various contracts.
Litigations and related matters - Provision for litigation represents estimates made mainly for probable claims arising
out of litigations / disputes pending with authorities under various statutes (i.e. Duty of Excise, Service Tax, Value Added
Tax, Sales Tax, etc.) and relating to property matters. The timing of outflows is determinable only on receipt of judgment
/ decisions pending with various forums / authorities.
Provision towards site restoration - Provision for site restoration represents provision for site restoration as per
Company's policy and applicable requirements.
The Company has a process whereby periodically all long term contracts are assessed for material foreseeable losses.
At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting
standards for material foreseeable losses on such long term contracts has been made in the books of account.
c). Performance obligation
Information about the company's performance obligations are summarised below:
Execution of long term contract for projects
a) Long term (Construction type) contracts- The long term contracts are ordinarily presumed to consist of combined
obligations which are not distinct in the context of the contract (i.e., single performance obligation). This is highly
attributed to the long-term construction-nature of the projects, whereby deliverables are typically highly interrelated
and combined. The typical scope of long term contracts arrangements includes Engineering, manufacturing, shipment,
delivery installation, testing, erection and commissioning and civil works. Although there are several components to
the overall scope of the contract, the turnkey contracts are generally considered one performance obligation.
b) Products manufacturing and erection, commissioning and installation contracts- These contracts comprising of one
performance obligations of supply of products and erection and commissioning thereof. When the manufacturing
stage is complete, factory acceptance testing procedures are performed to ensure the equipment meets customer
specifications and may involve the customer physically observing the testing procedures. Revenue from contracts,
where the performance obligations are satisfied over time and other consideration, is recognized as per the
percentage of completion method. The Company uses the percentage of completion method based on the efforts or
costs expended to the date as a proportion of the total efforts or costs to be expended.
c) The Company as part of its contracts, provides warranties of the equipment for defects arising out of poor
workmanship, inferior material or manufacturing. Such warranty provided is in the nature of assurance warranty and
is not accounted for as a separate performance obligation (also refer note:18).
d) Remaining performance obligations
The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be
recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize
these amounts in revenue.
The aggregate value of performance obligations that are completely or partially unsatisfied as at 31 March 2026 is
in excess of H 214,557.0 million (31 March 2025: H 126,575.0 million).The conversion to revenue is highly dependent
on meeting the delivery schedules, contractual terms and conditions with customers, availability of customer sites,
changes/ variation in scope/ prices etc. In view of these, it is not practical to define the accurate percentage of
conversion to revenue.
(ii) Valuation technique used to determine fair value
This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values
are disclosed in the financial statements. To provide an indication about the reliability of inputs used in determining
the fair value, the Company has classified its financial instruments into the three levels prescribed under the Indian
accounting standard.
The following methods and assumptions have been used to estimate the fair values:
- The Company enters into derivative financial instruments with banks. The valuation technique used to determine
the fair value of forward contracts (used for hedging purposes) is the net present value technique which is the
estimated amount that a bank would receive or pay to terminate the forward contracts at the reporting date,
taking into account current interest rates and current exchange rates.
(B) Gratuity
The Company has a defined benefit gratuity plan. Every employee who has completed four years and one ninety days
or more of service gets a gratuity on departure at 15 days salary (last drawn wages as defined in the code on Wages,
2019) for each completed year of service. The plan is funded with an insurance company in the form of a qualifying
insurance policy.
Interest rate risk:
The defined benefit obligation calculated using a discount rate based on government bonds. If bond yields fall, the defined
benefit obligation will tend to increase.
Salary inflation risk:
Higher than expected increases in salary will increase the defined benefit obligation.
Demographic risk:
This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal,
disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and
depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate
withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per
year as compared to a long service employee.
The following tables summarise the components of net employee benefit expense recognised in the Statement of Profit
and Loss and the funded status and amounts recognised in the Balance Sheet for the respective plans.
Future mortality rate is based on published rates under the Indian Assured Lives Mortality (2012-14) Ult table.
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.
The employees of the Company are assumed to retire at the age of 60 years.
The expected contribution payable to the plan next year is H100.0 million (31 March 2025: H100.0 million)
Projected plan cash flow
The table below shows the expected cash flow profile of the benefits to be paid to the current membership of the
plan based on past service of the employees as at the valuation date :
vii). Sensitivity analysis
Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in
demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly
sensitive to are discount rate and future salary escalation rate.
The following table summarizes the impact in percentage terms on the reported defined benefit obligation (DBO)
at the end of the reporting period arising on account of an increase or decrease in the reported assumption by
100 basis points.
These sensitivities, as per the information available and disclosed by the Company, have been calculated to show the
movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at
the accounting date. There have been no changes from the previous year in the methods and assumptions used in
preparing the sensitivity analyses.
(C). Provident fund
i) Provident fund - defined contribution plan
The Company contributes Provident Fund for certain eligible employees to the Regional Provident Fund Commissioner.
The amounts debited to the Statement of Profit and Loss in this regard during the current year were H31.2 million (31
March 2025: H 29.0 million).
ii) Provident fund - defined benefit plan
The Company also contributes Provident Fund for other employees into a recognised Provident Fund Trust set up for
the Company and contributions to the Trust are expensed to the Statement of Profit and Loss when such amounts
are due. The Company has an obligation to make good the shortfall of income on investments earned by the Trust, if
any, with regard to the interest due on contributions as per the rate notified by the Government.
c) . Total contribution charged to the Statement of Profit and Loss for the aforesaid scheme amounts to H107.3
million (31 March 2025: H 104.2 million).
d) . Sensitivity analysis
The following table summarizes the impact in percentage terms on the reported defined benefit obligation (DBO)
at the end of the reporting period arising on account of an increase or decrease in the reported assumption by
50 basis points.
These sensitivities, as per the information available and disclosed by the Company, have been calculated to
show the movement in defined benefit obligation in isolation and assuming there are no other changes in market
conditions at the accounting date. There have been no changes from the previous year in the methods and
assumptions used in preparing the sensitivity analyses.
Notes:
(i) The composition of plan assets are as per the Provident Fund scheme and Act of 1952.
(ii) The excess of the plan assets over the liability for the benefit obligation has not been recognised in the
books in line with the principle of prudence.
e). Others
The Company is liable to fund any shortfall in its recognized Provident Fund trust "Alstom T&D India Limited
Employee's Provident Fund Trust” (the Trust), as it is a defined benefit plan. The Trust's investments include H
179.9 million (both secured and unsecured) in bonds of IL&FS group of entities. There was a default of interest
payment by these entities to the Trust during the earlier year's. Cumulative provision as of 31 March 2026 stands
at H 179.9 million (31 March 2025 stands at H199.8 million) towards expected shortfall in the Provident Fund Trust.
(D) Other information
In respect of other defined contribution plans, the Company has recognized the following amounts in the Statement of
Profit and Loss:
(i) Employer's Contribution to Superannuation Fund H 49.3 million (31 March 2025: H44.1 million)
(ii) Employer's Contribution to ESI H0.4 million (31 March 2025: H 0.4 million)
34. Financial risk management
The Company's activities expose it to the following risks arising from the financial instruments¬
- market risk
- liquidity risk
- credit risk.
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of
hedge accounting in the financial statements.
Risk Management Framework
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. The Company's risk management policies are established to identify and analyse the risk faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The board provides written
principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate
risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess
liquidity. The Company's risk management is carried out by a central treasury team department under policies approved by the
board of directors.
The Company's audit committee oversees how management monitors compliance with Company's risk management policies
and procedures, and reviews the adequacy of the risk management framework in relation to risk faced by the Company.
(A). Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial asset fails to meet its
contractual obligations, and arises principally from the Company's receivables from customers, loans and other deposits etc.
The carrying amounts of financial assets represent the maximum credit risk exposure.
(i) Credit risk management
The Company considers the probability of default upon initial recognition of an asset and whether there has been a
significant increase in credit risk on an ongoing basis throughout each reporting period on annual basis. To assess
(ii) Provision for expected credit losses
a. Security deposit and other advances
With regards to security deposit and other advances H 318.9 million (31 March 2025: H 308.2 million), management
believes the parties to which these deposits have been made have strong capacity to meet the obligations and
risk of default is negligible or nil and accordingly no provision for excepted credit loss has been provided for. All
the export benefits (included in other financial assets) are receivable from Government and therefore expected
probability of default is negligible or nil.
b. Trade receivables (Expected credit loss (ECL) for trade receivables under simplified approach)
Trade receivables consists of a large number of customers spread across diverse industries and geographical
areas. The Company follows 'simplified approach' for recognition of impairment loss allowance on trade receivable.
The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables.
The provision matrix is based on its historically observed default and delay rates over the expected life of the
trade receivable. At year end, the historical observed default and delay rates are updated and analyzed.
Individual receivables which are known to be uncollectible are written off by reducing the carrying amount
of trade receivable and the amount of the loss is recognised in the Statement of Profit and Loss within
other expenses.
As at March 31, 2026, the Company has H 136.0 million allowances for expected credit loss pertaining to related
parties (March 31, 2025: H 131.4 million)
(B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate
amount of committed credit facilities to meet obligations when due and to close out market positions. Considering the
business requirements, the treasury maintains flexibility in funding by maintaining availability under committed credit
lines. Management monitors rolling forecasts of the Company's liquidity position (comprising the undrawn working capital
facilities) and cash and cash equivalents on the basis of expected cash flows.
(ii) Maturities of financial liabilities
The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their contractual
maturities for all non-derivative financial liabilities, and net and gross settled derivative financial instruments for
which the contractual maturities are essential for an understanding of the timing of the cash flows. The amounts
disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their
carrying balances as the impact of discounting is not significant.
(C) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises of interest rate risk and currency risk. Financial instruments affected by market risk
includes deposits, derivative financial instruments, trade receivables, trade payables and other financial liabilities.
(i) Foreign currency risk
The Company's policy is to hedge all material firm currency exposure at inception to the extent possible. Individual
foreign currency exposures and the hedges obtained against these individual exposures are reported and monitored.
(E) Hedge Accounting
The Company enters into hedging instruments in accordance with policies as approved by the Board of Directors with
written principles which is consistent with the risk management strategy of the Company. The Company has decided to
apply hedge accounting for certain derivative contracts that meets the qualifying criteria of hedging relationship entered
post April 01, 2023. Hedging strategies are decided and monitored periodically by Chief Financial Officer and Board of
Directors of the Company.
Cash Flow Hedge
Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of forecasted hedged
items in foreign currencies (refer below note), etc. These forecast transactions are highly probable. The foreign exchange
forward contract balances vary with the level of expected foreign currency sales and purchases along with changes in
foreign exchange forward rates.
The impact of the hedging instruments on the balance sheet is as follows:
The line item in Balance Sheet where hedge instrument is disclosed under other current financial liabilities. The changes
in fair value of forward exchange contract on account of Cash flow hedge is H 3,030.7 million (H534.7 million for 31 March
25) out of H 3,453.5 million (H456.2 million for 31 March 25).
Valuation Technique
The Company enters into derivative financial instruments which are valued using valuation techniques which employs the
use of market observable inputs. The most frequently applied valuation techniques include forward pricing models, using
present value calculations. Where quoted market prices are not available, fair values are based on Management best
estimates, which are arrived at by the reference to market prices.
35: Segment information
An operating segment is a component 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 other components, and for which discrete financial
information is available. The Company is engaged in the business relating to products, projects and services for electricity
transmission and related activities. Accordingly, the Company's activities/business is reviewed regularly by the Company's
Managing Director / Chief Executive Officer assisted by an executive committee from an overall business perspective, rather
than reviewing its products/services as individual standalone components. Thus, the Company has only one operating segment,
and has no reportable segments in accordance with Ind AS - 108 'Operating Segments'.
36. Share based payments
Employees stock options
The employees are entitled to shares of GE Vernova Inc, USA, the ultimate holding company. Details of these plan is given below.
The ultimate holding company (GE Vernova Inc, USA) grant stock options, restricted stock units to employees under the 2007
Long-Term Incentive Plan post approval of Board of directors of ultimate holding company. Incentive stock options can be
granted only to employees.
As restricted stock units (RSU's) and stock options have been granted at the fair value of option on the grant date, therefore
the Company measure and disclose the employee's compensation expenses relating to restricted stock option units and stock
options using the fair value.
The employees' compensation expense for stock options and RSU's during the year ended 31 March 2026 amounts to H21.0
million (31 March 2025: H 23.8 million) as included under salaries and wages, treated as cash settled during the year. Further,
the Ultimate Holding Company will raise charge to the Company for both stock options and RSUs at the time awards are
exercised or lapsed by employees.
The options become exercisable over the vesting period (typically three or five years) and expire 10 years from the grant
date if not exercised. Restricted stock units (RSU) provide an employee with the right to receive shares of GE stock when the
restrictions lapse over the vesting period.
Notes:
1) Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timing of cash
outflows, if any, in respect of the above as it is determinable only on receipt of judgment / decisions pending with various
forums / authorities.
2) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions
are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not
expect the outcome of these proceedings to have a material adverse effect on its financial position. The Company does
not expect any reimbursements in respect of above contingent liabilities.
3) The Company is directly or indirectly involved in other lawsuits, claims and proceedings, which arise in the ordinary
course of business. The Company has challenged these litigations with respective authorities. Based on the facts
currently available, management believes that likelihood of outflow of resources is remote and hence the Company has
not recognised these litigations under contingent liability as well.
4) Amount mentioned above excludes Excise/Service tax and Sales tax/ VAT liability of H 246.2 million and 51.8 million related
to Service Tax/ Excise and Sales Tax/ VAT related matters respectively pertaining to pre-demerger of Distribution business
from erstwhile Company called Areva T&D India Limited and therefore borne by the de-merged entity i.e. Schneider
Electric as per approved de-merger agreement.
Note: The information relates to such vendors identified as micro and small enterprises, on the basis of information available
with the Company.
42 . On November 21, 2025, the Government of India notified the four Labour codes - The code on Wages, 2019, The Industrial
Relations code, The code on Social Security, 2020, and The Occupational Safety, Health and Working Conditions Code, 2020
- consolidating 29 existing Labour Laws. Based on the draft rules and FAQs issued by the ministry of labour and employment
and best available information/interpretation, the Company estimated the financial implications thereof and made an additional
provision of H635.7 million for the year ending March 31, 2026.
The Company has been continuously monitoring the developments around new labour codes and is in the process of evaluating
the full impact of new wage code.
Considering the materiality, regulatory driven and non - recurring nature of the impact, the company has presented such impact
under Exceptional item during the year.
43. Ministry of Corporate Affairs (MCA) vide its notification number G.S.R. 206(E) dated March 24, 2021 (amended from
time to time) in reference to the proviso to Rule 3 (1) of the Companies (Accounts) Amendment Rules, 2021, introduced the
requirement of only using such accounting software w.e.f April 01, 2023 which has a feature of recording audit trail of each and
every transaction, creating an edit log of each change made in the books of account along with the date when such changes
were made and ensuring that the audit trail cannot be disabled. The Institute of Chartered Accountants of India ("ICAI”) issued
an "Implementation guide on reporting on audit trail under rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (Revised
2024 edition)” in February 2024 relating to feature of recording audit trail.
The Company has identified relevant applications that record financial transactions, along with the primary SAP system to which
the aforementioned provision and guidance apply for the year ended March 31, 2026 and which has a feature of recording audit
trail (edit log) facility wherein:
- in respect of accounting software (SAP), the audit trail feature was enabled at the application level and operated for all
relevant transactions recorded in such software.
- in respect of software operated by a third-party service provider, for maintaining payroll records, based on an independent
auditor's System and Organization controls report which covers the requirements of audit trail, has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded
in the software.
- in respect of software operated by a third-party service provider for maintaining employee database, based on an
independent auditor's System and Organization controls report which covers the requirements of audit trail, has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software, however back up server located outside India.
SAP, as primary accounting software, is a highly integrated application and inherently logged all changes made to the books of
account transactions and has a feature of recording audit trail of each and every transaction at the application level except that
audit trail was not enabled at the database level to log any direct data changes.
Only authorized personnel have access to the underlying database for the purpose of system support after obtaining explicit
permission from the Company. The Company has enabled sufficient logs at the database level which captures objects edited
along-with timing and personnel identity. Any data changes would undergo inherent checks that are built onto application and
any impermissible changes at the database level creates multiple errors like operational failure, corrupting of tables etc. and
rule out the possibility of such changes.
There is no instance noted that audit trail feature being tampered at application level during the year.
Additionally, the audit trail that was enabled at application level (SAP) and operated for the year ended March 31, 2025, has
been preserved by the Company as per the statutory requirements for record retention.
The Company has established and maintained an adequate internal control framework and based on its assessment, believes
that this was effective for the year ended March 31, 2026.
44. During the year Company stored SAP daily back up on servers physically located in India and daily back up is performed
throughout the year.
45. Other statutory information
a. The Company has not traded in Crypto currency or Virtual currency during the financial year.
b. The Company does not have any transaction which is not recorded in the books of accounts and has been surrendered or
disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey or any
other relevant provision of the Income Tax Act, 1961)
c. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company.
d. The Company does not have any charges or satisfaction of charge which is yet to register with the Registrar of Company
beyond statutory period.
e. The Company has complied with the number of layers prescribed under clause 87 of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.
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