m. Provision, contingent liabilities and contingent assets:
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 costs. Expected future operating losses are not provided for.
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.
Contingencies:
Provision in respect of loss contingencies relating to claims, litigations, assessments, fines and penalties are recognised when it is probable that a liability has been incurred and the amount can be estimated reliably.
Contingent liabilities and contingent assets:
A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote.
Contingent assets has to be recognised in the standalone financial statements in the period in which if it is virtually certain that an inflow of economic benefits will arise. Contingent assets are assessed continually and no such benefits were found for the current financial year.
n. Earnings per share:
Basic Earnings Per Share (‘EPS') is computed by dividing the net profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless issued at a later date. In computing diluted earnings per share, only potential equity shares that are dilutive and that either reduces earnings per share or increases loss per share are included. The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for the share splits.
o. Statement of cash flows
Cash flows are reported using the indirect method, whereby net profit/ (loss) before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from regular revenue generating (operating activities), investing and financing activities of the Company are segregated.
p. Cash and cash equivalents:
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.
q. Biological assets:
Biological assets i.e. living animals, are measured at fair value less cost to sell. Costs to sell include the minimal transportation charges for transporting the cattle to the market but excludes finance costs and income taxes. Changes in fair value of livestock are recognised in the statement of profit and loss. Costs such as vaccination, fodder and other expenses are expensed as incurred.
r. Events after reporting date:
Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the standalone financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.
S. Leases:
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Company as a lessee
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets
Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset
The right-of-use assets are also subject to impairment. Refer to the accounting policies in section (f) Impairment of non-financial assets
Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease
term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of offices, godowns, equipment, etc. that are of low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.
t. Segment reporting - Identification of segments
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the company's Chief Operating Decision Maker (“CODM”) to make decisions for which discrete financial information is available. The Company's
operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. Based on the management approach as defined in Ind AS 108, the CODM evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments
u. Non-current Assets Held for Sale
Non-current assets (or disposal groups) held for sale and discontinued operations Non-current assets (or disposal group) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and sale is considered highly probable. They are measured at the lower of carrying amount or fair value less cost to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically exempt from this requirement. An impairment loss is recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less cost to sell. A gain is recognized for any subsequent increase in the fair value less cost to sell of any asset (or disposal group), but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset (or disposal group) is recognized at the date of de-recognition. Non-Current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised. Non-current assets classified as held for sale and the asset of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of disposal group classified as held for sale are presented separately from other liabilities in the balance sheet. A discontinued operations is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is a part of a single co-ordinated plan to dispose of such line of business or area of business of operations, or is a subsidiary acquired exclusively with a view of resale. The result of discontinued operations are presented separately in the statement of profit and loss.
v. Recent Accounting Pronouncements
1. New and amended standards adopted by the Company.
The 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, 2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The Company
has reviewed the new pronouncements and based on its evaluation has determined that it does not have any significant impact in its financial statements.
2. New and amended standards issued but not effective
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, 2025, there are no standards that are notified and not yet effective as on date”
The fair value of value of investment property is Rs 88,354.47 ( March 31,2024 is Rs 84,487.55) based on market assessable data.
The best evidence of fair value is current prices in an active market for similar properties. Though the Company measures investment property using cost based measurement, the fair value of investment property has been determined by external, independent registered valuer as defined under Rule 2 of the Compaines (Registered valuers and valution) Rules, 2017 having appropriate recognised professional qualification and recent experience in the location and category of the property valued. The major inputs used are location, locality, facilities, amenities, quality of construction, residual life of building, business potential, supply and demand, local nearby enquiry, market feedback of investigation and Ready Reckoner published by the Government.
The Company does not have any restriction on the realisability of its investment property and no contractual obligation to purchase, construct and develop immovable property. There is no mortgage on the above mentioned investment property.
All resulting fair value estimates for investment properties are included in level 3.
Notes:
i) In 2012-13, Inter-Corporate Loan (ICL) of Rs. 3,103.87 (As at March 31, 2024: Rs. 3,103.87) was given to IDL Explosives Limited (Wholly owned subsidiary Company). During the year 2017-18, the loan was mutually agreed to be repaid by March 31,2024. Subsequently, during the year 2023-24, the Board of Directors of IDL Explosives Limited had proposed to extend the repayment date till April 1,2027 and the same was approved by the Company vide letter dated March 29, 2024. Interest rate on the above is 8.40% per annum (2023-24: 8.25% to 8.40% per annum). The above ICL has been disclosed at fair value. During the year, Company has given an additional Inter Corporate Loan (ICL) of Rs. 800 (net of refund of Rs. 6800) to IDL Explosives Limited (Wholly owned subsidiary Company) resulting in oustanding balance of Rs. 6,000 repayable on demand as mutually agreed at an interest rate of 8.40% per annum.
ii) The Company has given Inter Corporate Loan to Hinduja Group Limited. During the current year, additional loan of Rs. 35,391.50 (net of refund of Rs. 64,728.50) resulting in outstanding balance of Rs. 71,720. The said loan is repayable on demand or eleven months which ever is earlier as mutually agreed. ICL carries an interest rate of 8.40% per annum. (2023-24: 8.4%).
iii) Refer note 42 for disclosure pursuant to Section 186 of the Companies Act, 2013 and under Regulation 34(3)of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.
d. Rights, preferences and restrictions attached to equity shares:
The Company has one class of equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution shall be according to the members right and interest in the Company
During the five years period ended March 31, 2025 no shares have been bought back/ issued for consideration other than Cash and no bonus shares have been issued.
There are no shares reserved for issue under options and contracts/ commitments for sale of shares/ disinvestment.
Note: Refer statement of changes in equity for movement in other equity General reserve :
General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.
Retained earnings:
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.
Fair value hierarchy Level 1
Includes financial instruments measured using quoted prices. This includes listed equity instruments and the mutual funds. The fair value of all equity instruments which are traded in stock exchanges is valued using the closing price as at the reporting period and the mutual funds are valued using closing NAV.
Level 2
The fair value of financial instruments not actively traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity specific estimates. If all the significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3
If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
i) The carrying values of current financial liabilities and current financial assets are taken as their fair value because of their short term nature.
ii) The carrying values of non-current financial liabilities and non-current financial assets are taken as their fair value based on their discounted cash flows.
iii) The carrying values of non-current financial liabilities and non-current financial assets excluding investment in subsidiaries is reasonable approximation of fair value
iv) The Company has used quoted market price for determining fair value of investments in quoted equity instruments and mutual funds.
v) There have been no transfers between level 1, level 2 and level 3 for year ended March 31, 2025 and March 31, 2024 respectively
Significant estimate:
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The company uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.
Note 35 Financial risk management objectives and policies
1. Financial risk management framework
The Company has exposure to the following risks arising from financial instruments
(i) Credit risk
(ii) Liquidity risk
(iii) Market risk
(iv) Commodity Price Risk Risk management framework
The Company's Board of Directors has the 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 risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and Company's activities.
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 audit undertakes both regular and ad-hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.
(i) Credit Risk
Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The entities within the Company have a policy of dealing only with credit worthy counter parties and obtaining sufficient collateral, where appropriate as a means of mitigating the risk of financial loss from defaults. Financial instruments that are subject to credit risk and concentration thereof principally consist of trade receivables, loans receivables, investments, cash and cash equivalents, derivatives provided by the Company. None of the financial instruments of the Company result in material concentration of credit risk. The carrying value of financial assets represents the maximum credit risk.
Trade 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 and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. The Company observes: actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the customer's ability to meet its obligations.
The Company also establishes an allowance for impairment that represents its estimate of expected credit losses in respect of trade receivables.
Cash and bank balances:
Credit risk on cash and bank balances is limited as the company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.
Impairment of financial assets
The impairment on financial assets is based on assumptions about risk of default and expected loss rates. The company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the company's past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
(ii) Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company's reputation. The Company's corporate treasury department is responsible for liquidity and funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company's net liquidity position through rolling forecasts on the basis of expected cash flows.
(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, equity prices and other market changes that effect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including deposits, foreign currency receivables, payables and borrowings.
a) 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 change in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates. As the Company has debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are substantially dependent of changes in market interest rates.
d) 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
(iv) Commodity Price Risk
The Company is exposed to commodity price risk arising out of fluctuation in prices of raw materials (coating material, metals, acids and chemicals) and fuel (coal and diesel). Such price movements, mostly linked to external factors, can affect the production cost of the Company. To manage this risk, the Company take steps such as monitoring of prices, optimising fuel mix and pursue longer and fixed price contracts, where considered necessary. Additionally, processes and policies related to such risks are controlled by central procurement team and reviewed by the senior management.
2. Capital management
The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors, creditors and market confidence and to sustain future development and growth of its business. In order to maintain the capital structure the Company monitors the return on capital, as well as the level of dividends to equity shareholders. The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to all its shareholders. For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves and debt includes borrowings. Refer note 41 for ratio's analysis.
Note 36 Employee benefit plans
a. Defined contribution plan:
The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Employees' State Insurance contribution (ESI) and Provident fund , which are defined contribution plans. The contribution are charged to the Statement of profit and loss . During the year, the Company has recognised Rs 1.03 (March 31, 2024: Rs 2.84 ) and Rs 64.77 (March 31, 2024: Rs 96.28) towards Employees' State Insurance contribution (ESI) and Provident fund contribution.
b. Compensated absences
The accrual for unutilised leave is determined for the entire available leave balance standing to the credit of the employees at the year end. The value of such leave balances that are eligible for carry forward, is determined by an actuarial valuation as at the end of the period.The company has recognised income of Rs 14.90 ( Expense for the period ended March 31,2024 : Rs 29.87) to the statement of profit and loss.
c. Defined benefit plan
The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employee's last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan. The Company makes contributions to Life Insurance Corporation of India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.
Risk Exposure:
These defined benefit plans typically expose the Company to actuarial risks as under:
a. Investment risk
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.
b. Interest rate risk
Decrease in bond interest rate will increase the plan liability. However, this shall be partially off-set by increase in return as per debt investments.
c. Longevity risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants.
An increase in the life expectancy will increase the plan's liability.
d. Salary risk
Higher than expected increase in salary will increase the defined benefit obligation.
Notes:
1) 1) In March 2020, the Holding Company had provided corporate guarantee in the form of Stand-by Letter of Credit of USD 150 Million and USD 50 Million in September 2021 to its wholly owned subsidiary HGHL Holdings Limited (HGHL,) for obtaining bank loan of equivalent amount from Union Bank of India, Hong Kong and Dubai branch, respectively. The loan is secured by shortfall undertaking from Gulf Oil International Limited, Cayman Islands and collaterally secured by mortgage and exclusive charge on the land admeasuring 115.10 acres at Kukatpally, Hyderabad. The loan is repayable over a period of 7 years in half yearly instalment starting from FY 2023. and outstanding as at March 31,2025 Rs.1,10,583.28 (USD 127.81 Million) [March 31,2024 Rs 1,14,681.88 (USD 137.50 Million)]. Interest charged by bank on the above loan at SOFR 271bps.
Further, the referred collateral security of 115.10 Acres has been replaced by 100% cash margin in the form of Fixed Deposits on May 20, 2025.
HGHL has further given Inter corporate loan of USD 200 Million to 57 Whitehall Investments S.A.R.L, Luxembourg,(an operating company) which in-turn has invested in the downstream joint venture project which is engaged in the development of a residential and hospitality project outside India. HGHL holds 10% equity stake in 57 Whitehall Investment S.A.R.L, Luxembourg.
2) In the month of March 2020, the Company had given Corporate Guarantee and collateral security to State Bank of India (SBI) for Corporate loan of Rs.109,600 availed by Hinduja National Power Corporation Limited (HNPCL) towards working capital requirements. The loan is primarily secured by pari-passu charge on the current assets of the HNPCL along with other working capital lenders and first charge by way of mortgage of land admeasuring 87.125 acres at Kukatpally, Hyderabad belonging to the Company. The Company has received a counter guarantee for an equal amount from Hinduja Energy (India) Limited (HEIL), the parent entity of HNPCL. The loan has to be repaid by HNPCL to SBI in 8 quarterly instalments commencing from June 2023 and ending on March 31,2025.
During the Current financial year HNPCL has prepaid the said corporate loan outstanding of Rs.45,000 from State Bank of India through refinancing by Power Finance Corporation (PFC). The loan is secured by way of mortgage of land admeasuring 87.125 acres at Kukatpally, Hyderabad belonging to the Company.
3) Hinduja Realty ventures limited (HRVL) has availed a term loan aggregating to Rs.75,000 from Kotak Mahindra Bank, RBL Bank, Aditya Birla Finance Limited, CSB Bank Limited, Mahindra & Mahindra Financial Services Limited and IDFC First Bank Limited with max tenor of 36 Months bullet repayment on the security of first and pari-passu charge via deposit of title deeds
on land & building for the property known as “Ecopolis” being developed by HRVL on the company's land admeasuring 37.34 Acres situated at Bangalore
4) In the year 2012-13, the Competition Commission of India had passed an order imposing a penalty of Rs. 2,894.76 against the Company in a case filed by a customer. The Company had filed an appeal in Competition Appellate Tribunal (“COMPAT”) against the said order which was disposed in the year 2013 by reducing the penalty amount to Rs. 289.48. Subsequently, in the year 2013 the Company had filed an appeal with the Honorable Supreme Court of India (SC) against the said order of COMPAT which was admitted by the SC and interim stay was granted. No hearings have taken place during the year as the pleading are in progress before the Judicial Registrar. Based on merits of the case and the opinion obtained from an independent legal counsel, the Company has a strong case in its favour and adequate provision has been considered necessary.
5) The Civil appeal filed by the Company against Sri Udasin Mutt was dismissed by the Hon'ble Supreme court.
The application of the Mutt claiming use and occupation charges is pending before the Telangana Endowments Tribunal. Sri Udasin Mutt in its re-joinder has informed that the deposit amount including interest has been withdrawn by Sri Udasin Mutt. The said withdrawn amount shall be adjusted/ refunded as per the decision of the Tribunal
6) The writ petitions/ appeals filed with Hon'ble Orissa High Court and Orissa sales tax tribunal under the Orissa sales tax claiming CST for the AY 1984-85 to 1987-88, 1994-95 & 1995-96 and 1998-99 is pending
7) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed under contingent liabilities where applicable, in its standalone financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its standalone financial statements.
8) The Company has long-term contracts other than derivative contracts, for which there were no material foreseeable losses.
9) Excludes Income Tax demand for AY 2013-2014 of Rs. 4210.11 for which Hon'ble High Court of Telangana has passed favourable order dated June 14, 2025 in favour of the Company, although the Order giving effect from Income Tax Authorities is pending,
Note 38 Related party disclosure
(i) Information relating to related party transactions as per “Indian Accounting Standard (Ind AS 24-Related party disclosures)
a. Ultimate Holding Company
AMAS Holding SPF
b. Holding Company:
Hinduja Capital Limited., Mauritius
c. Wholly Owned Subsidiaries:
IDL Explosives Limited HGHL Holdings Limited
d. Fellow Subsidiary:
Gulf Oil Lubricants India Limited Ashok Leyland Limited
e. Key management personnel (KMP):
Non -Executive
Mr. Sudhanshu Kumar Tripathi, Chairman & Non Executive Director Ms. Kanchan Chitale, Independent Director (up to September 24, 2024)
Mr. Aditya Sapru, Independent Director Mr. Debarata Sarkar, Independent Director Mr. Amar Chintopanth, Independent Director
Mrs. Manju Agarwal, Independent Director (from November 28, 2024)
Note 43. Other statutory information
i. The Company does not have any Benami property held in its name and no proceedings have been initiated or pending against the Company for holding any Benami property.
ii. The Company has not come across any transaction occurred with struck-off companies under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.
iii. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iv. The Company has not been declared a wilful defaulter by any bank or financial institution or any other lender during the current year
v. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
vi. The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
vii. All quarterly returns or statements of current assets are filed by the company with banks or financial institutions and are in agreement with the books of accounts.
viii. The loans taken have been utilized for the purpose for which it was obtained and no short term funds have been used for long term purpose.
ix. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year
x. There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.
Note 45 Discontinued operations.
The Board of Directors in the meeting dated October 25, 2023, decided to consolidate its explosives and detonators business at Rourkela, where the land and existing facilities were already available and accordingly, entered into a Memorandum of Understanding on March 27, 2024 with Squarespace Builders Private Limited, Hyderabad for sale of the Company's Scheduled Property of 264.50 acres of land situated at Kukatpally, Hyderabad, for a total consideration of Rs. 3,41,800.
The board of directors on November 28, 2024 decided to cease the detonators and other blasting devices manufacturing operations at Kukatpally, Hyderabad and initiated the requisite approval for the same.
As at March 31, 2025, the Company has presented the detonators and other blasting devices manufacturing operations as “Discontinued operation” and its related assets as “assets held for sale” and liability as “Liabilities directly associated with the assets held for sale” and valued it at lower of carrying value and fair value less cost to sell in accordance with the IND AS 105 (Non¬ current assets held for sale and discontinued operations). Aforesaid assets and liabilities have not been reclassified or re-presented for prior period i.e. year ended March 31,2024.
Further, the net results of detonators and other blasting devices manufacturing operations have been disclosed separately as discontinued operation as required by Ind AS 105. Consequently, the Company's Statement of Profit and Loss for the year ended March 31,2025 presented pertains to its continuing operations only and for that purpose the Statement of Profit and Loss for the year ended March 31,2024 has been restated accordingly to make them comparable.
Note 46 Other Notes
i) Pursuant to the approval of the shareholders of the Company at the 63rd Annual General Meeting held on September 24, 2024, during the year the Company has disbursed, for the financial year 2023-24 a dividend of @ Rs.4 per equity share (200%) aggregating to an amount of Rs.1982.90.
ii) The Board has recommended a Dividend of Rs. 10 per share ( 500% ) for the financial year 2024-25 subject to approval of Members at the ensuing Annual General Meeting.
iii) The figures for the previous year have been regrouped/rearranged wherever necessary to conform to the current year classification.
iv) Subsequent to the Balance Sheet date, the Board of Directors of the Company in their meeting held on May 2, 2025 has approved divestment of entire equity shareholding held by the Company in IDL Explosives Limited, wholly-owned subsidiary of the Company, in favour of Apollo Defence Industries Private Limited (Apollo) for an aggregate consideration of Rs.10,700 subject to obtaining certain approvals including from shareholders and fulfilment of other conditions of Share Purchase Agreement dated May 2, 2025 between the Company, Apollo and IDL Explosives Limited. Accordingly, no adjustments have been made in the accompanying audited standalone financial statements.
As per our report of even date attached for and on behalf of the Board of Directors of GOCL Corporation Limited
for Haribhakti & Co LLP CIN: L24292TG1961PLC000876
Chartered Accountants
ICAI Firm Registration number: 103523W / W100048
Snehal Shah Ravi Jain Sudhanshu Kumar Tripathi
Partner Whole Time Director and Chief Financial Officer Chairman
Membership number:048539 DIN : 09184688 DIN :06431686
Place: Mumbai A. Satyanarayana
Date: May 22, 2025 Company Secretary
FCS number:5011
|