(k) Provisions, contingent liabilities and contingent
assets
Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation. The expense relating to
a provision is presented in the Statement of Profit and
Loss net of any reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised
as a finance cost. Provisions are reviewed at each
balance sheet and adjusted to reflect the current best
estimates.
Contingent liabilities
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or
more uncertain future events beyond the control
of the Company or a present obligation that is not
recognized because it is not probable that an outflow
of resources will be required to settle the obligation. A
contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses
its existence in the financial statements, unless the
possibility of any outflow in settlement is remote.
Contingent Assets
A contingent asset is a possible asset that arises from
past events and whose existence will be confirmed
only by- the occurrence or non-occurrence of one or
more uncertain future events not wholly within the
control of the entity. The Company does not recognize
the contingent asset in its standalone financial
statements since this may result in the recognition of
income that may never be realised. Where an inflow of
economic benefits is probable, the Company disclose
a brief description of the nature of contingent assets
at the end of the reporting period. However, when
the realisation of income is virtually certain, then
the related asset is not a contingent asset and the
Company recognize such assets.
Contingent liabilities and contingent assets are
reviewed at each balance sheet date.
(l) Retirement and other employee benefits
Provident Fund and Employee State Insurance is a
defined contribution scheme established under a State
Plan. The contributions to the scheme are charged
to the Statement of Profit and Loss in the year when
employee rendered related services.
The Company has a defined benefit gratuity plan. The
cost of providing benefits under the defined benefit
plan is determined using the projected unit credit
method on the basis of an actuarial valuation at the
end of the financial year.. The scheme is funded with
an insurance Company in the form of a qualifying
insurance policy.
Remeasurements, comprising of actuarial gains
and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined
benefit liability and the return on plan assets (excluding
amounts included in net interest on the net defined
benefit liability), are recognised immediately in the
balance sheet with a corresponding debit or credit to
retained earnings through OCI in the period in which
they occur. Remeasurements are not reclassified to
profit or loss in subsequent periods.
Past service costs are recognised in profit or loss on the
earlier of:
- The date of the plan amendment or curtailment,
and
- The date that the Company recognises related
restructuring costs.
Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset. The
Company recognises the following changes in the
net defined benefit obligation as an expense in the
Standalone statement of profit and loss:
- Service costs comprising current service costs,
past-service costs, gains and losses on curtailments
and non-routine settlements; and
- Net interest expense or income
The Company has other long-term employee benefits
in the nature of leave encashment. The liability in
respect of leave encashment is provided for on the
basis of an actuarial valuation on projected unit credit
method made at the end of the financial year. The
aforesaid leave encashment is unfunded.
Remeasurement gains/losses are immediately taken
to the P&L and are not deferred. The obligations are
presented as current liabilities in the balance sheet
if the entity does not have an unconditional right to
defer the settlement for at least twelve months after
the reporting date.
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value
plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset. All
trade receivables do not contain a significant financing
component and are measured at transaction price.
Subsequent measurement
For purposes of subsequent measurement, financial
assets are classified in four categories:
a) Debt instruments at amortised cost
b) Debt instruments at fair value through other
comprehensive income (FVTOCI)
c) Debt instruments, derivatives and equity
instruments at fair value through profit or loss
(FVTPL)
d) Equity instruments measured at fair value through
other comprehensive income (FVTOCI)
Debt instruments at amortised cost
A 'debt instrument' is measured at the amortised
cost if both the following conditions are met:
a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and
b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included
in other income in the Statement of Profit and Loss.
The losses arising from impairment are recognised
in the Statement of Profit and Loss. This category
generally applies to trade receivables, security deposits
& other receivables.
Debt instrument at FVTOCI
A 'debt instrument' is classified as at the FVTOCI if
both of the following criteria are met:
a) The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets, and
b) The asset's contractual cash flows represent SPPI.
Debt instruments included within the FVTOCI category
are measured initially as well as at each reporting date
at fair value. Fair value movements are recognized in
the other comprehensive income (OCI). However, the
Company recognizes interest income, impairment
losses & reversals and foreign exchange gain or loss in
the Statement of Profit and Loss. On derecognition of
the asset, cumulative gain or loss previously recognised
in OCI is reclassified from the equity to Statement of
Profit and Loss. Interest earned whilst holding FVTOCI
debt instrument is reported as interest income using
the EIR method.
Debt instrument at FVTPL
FVTPL is a residual category for debt instruments. Any
debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL.
In addition, the Company may elect to designate a
debt instrument, which otherwise meets amortized
cost or FVTOCI criteria, as at FVTPL. However,
such election is allowed only if doing so reduces or
eliminates a measurement or recognition inconsistency
(referred to as 'accounting mismatch'). The Company
has designated certain debt instrument as at FVTPL.
Debt instruments included within the FVTPL category
are measured at fair value with all changes recognized
in the Statement of Profit and Loss.
All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading are classified as at FVTPL. For all
other equity instruments, the Company may make an
irrevocable election to present in other comprehensive
income subsequent changes in the fair value. The
Company makes such election on an instrument-by¬
instrument basis. The classification is made on initial
recognition and is irrevocable.
If the Company decides to classify an equity instrument
as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the
OCI. There is no recycling of the amounts from OCI to
profit and loss, even on sale of investment. However,
the Company may transfer the cumulative gain or loss
within equity.
Equity instruments included within the FVTPL category
are measured at fair value with all changes recognized
in the Statement of Profit and Loss.
Derecognition
A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the
Company's consolidated balance sheet) when:
a) The rights to receive cash flows from the asset
have expired, or
b) The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a
'pass-through' arrangement; and either (a) the
Company has transferred substantially all the risks
and rewards of the asset, or (b) the Company
has neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.
When the Company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset,
nor transferred control of the asset, the Company
continues to recognise the transferred asset to the
extent of the Company's continuing involvement. In
that case, the Company also recognises an associated
liability. The transferred asset and the associated
liability are measured on a basis that reflects the rights
and obligations that the Company has retained.
Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
Company could be required to repay.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement
and recognition of impairment loss on the following
financial assets and credit risk exposure:
a) Financial assets that are debt instruments, and
are measured at amortised cost e.g., loans, debt
securities, deposits, trade receivables and bank
balance,
b) Financial assets that are debt instruments and are
measured as at FVTOCI,
c) Trade receivables or any contractual right to
receive cash or another financial asset that result
from transactions that are within the scope of Ind
AS 115.
The Company follows 'simplified approach' for
recognition of impairment loss allowance on Trade and
other receivables.
The application of simplified approach does not
require the Company to track changes in credit risk.
Rather, it recognises impairment loss allowance based
on lifetime ECLs at each reporting date, right from its
initial recognition.
For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
that whether there has been a significant increase in
the credit risk since initial recognition. If credit risk has
not increased significantly, 12-month ECL is used to
provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in
a subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then the
entity reverts to recognising impairment loss allowance
based on 12-month ECL.
Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected
life of a financial instrument. The 12-month ECL is a
portion of the lifetime ECL which results from default
events that are possible within 12 months after the
reporting date.
ECL is the difference between all contractual cash
flows that are due to the Company in accordance
with the contract and all the cash flows that the entity
expects to receive (i.e., all cash shortfalls), discounted
at the original EIR. When estimating the cash flows, an
entity is required to consider:
a) All contractual terms of the financial instrument
(including prepayment, extension, call and similar
options) over the expected life of the financial
instrument. However, in rare cases when the
expected life of the financial instrument cannot
be estimated reliably, then the entity is required
to use the remaining contractual term of the
financial instrument.
b) Cash flows from the sale of collateral held or
other credit enhancements that are integral to the
contractual terms.
c) Financial assets measured as at amortised
cost, contractual revenue receivables and lease
receivables:
ECL is presented as an allowance, i.e., as an integral
part of the measurement of those assets in the balance
sheet. The allowance reduces the net carrying amount.
Until the asset meets write-off criteria, the company
does not reduce impairment allowance from the gross
carrying amount.
As a practical expedient, the Company uses a provision
matrix to determine impairment loss allowance on
portfolio of its trade receivables. The provision matrix is
based on its historically observed default rates over the
expected life of the trade receivables and is adjusted
for forward-looking estimates. At every reporting date,
the historical observed default rates are updated and
changes in the forward-looking estimates are analysed.
On that basis, the Company estimates the following
provision matrix at the reporting date:
ECL impairment loss allowance (or reversal) recognized
during the period is recognized as income/ expense
in the Statement of Profit and Loss. This amount
is reflected under the head 'other expenses' in the
Statement of Profit and Loss.
(n) Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective
hedge, as appropriate.
All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Company's financial liabilities include trade and
other payables, loans and borrowings including cash
credits and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on
their classification, as described below:
Loans and borrowings
After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised
cost using the EIR method. Gains and losses are
recognised in Statement of Profit and Loss when the
liabilities are derecognised as well as through the EIR
amortisation process.
Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation
is included as finance costs in the Statement of Profit
and Loss.
This category generally applies to borrowings. For
more information, refer note 15 and 18
Financial guarantee contracts
A financial guarantee contract is a contract that
requires the issuer to make specified payments to
reimburse the holder for a loss it incurs because a
specified debtor fails to make payments when due in
accordance with the terms of a debt instrument.
Financial guarantee contracts issued by the Company
are initially measured at their fair values and, if not
designated as at FVTPL, are subsequently measured at
the higher of:
i. the amount of loss allowance determined in
accordance with impairment requirements of Ind
AS 109; and
ii. the amount initially recognised less, when
appropriate, the cumulative amount of income
recognised in accordance with the principles of
Ind AS 115.
Financial liabilities at fair value through profit or
loss
Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair
value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for
the purpose of repurchasing in the near term. This
category also includes derivative financial instruments
entered into by the company that are not designated
as hedging instruments in hedge relationships as
defined by Ind AS 109.
Gains or losses on liabilities held for trading are
recognised in the Statement of Profit and Loss.
Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced
by another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as the derecognition of the
original liability and the recognition of a new liability.
The difference in the respective carrying amounts is
recognised in the Statement of Profit and Loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the
liabilities simultaneously.
(o) Derivative financial instruments
Initial recognition and subsequent measurement
The Company uses derivative financial instruments,
such as interest rate swaps, currency swaps, options
and forward contracts to hedge its interest rate
and foreign currency risks. Such derivative financial
instruments are initially recognised at fair value on the
date on which a derivative contract is entered into and
are subsequently re-measured at fair value. Derivatives
are carried as financial assets when the fair value is
positive and as financial liabilities when the fair value is
negative.
Any gains or losses arising from changes in the fair
value of derivatives are taken directly to Statement of
Profit and Loss.
(p) Dividend
The Company recognises a liability to make cash
distributions to equity holders 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.
(q) Taxes
Tax expense comprises current tax expense and
deferred tax.
Current income tax
Current income tax assets and liabilities are measured
at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax
laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date
in the countries where the Company operates and
generates taxable income.
Current income tax relating to items recognised
outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).
Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable
temporary differences, except:
a) When the deferred tax liability arises from the
initial recognition of goodwill or an asset or liability
in a transaction that is not a business combination
and, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss and
does not give rise to equal taxable and deductible
temporary differences.
b) In respect of taxable temporary differences
associated with interests in subsidiaries and joint
ventures, when the timing of the reversal of the
temporary differences can be controlled and it is
probable that the temporary differences will not
reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable
that taxable profit will be available against which
the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses
can be utilised except:
- When the deferred tax asset relating to the
deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination
and, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss and
does not give rise to equal taxable and deductible
temporary differences
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred
tax asset to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable
that future taxable profits will allow the deferred tax
asset to be recovered.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on
tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
In assessing the recoverability of deferred tax assets,
the Company relies on the same forecast assumptions
used elsewhere in the financial statements and in
other management reports, which, among other
things, reflect the potential impact of climate-related
development on the business, such as increased cost
of production as a result of measures to reduce carbon
emission.
Deferred tax relating to items recognised outside
Statement of Profit and Loss is recognised outside
Statement of Profit and Loss (in other comprehensive
income). Deferred tax items are recognised in
correlation to the underlying transaction either in
Statement of Profit and Loss or in OCI.
Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same
taxation authority.
Goods and Services Tax (GST) / value added taxes
paid on acquisition of assets or on incurring
expenses
Expenses and assets are recognised net of the amount
of GST/ value added taxes paid, except:
- When the tax incurred on a purchase of assets
or services is not recoverable from the taxation
authority, in which case, the tax paid is recognised
as part of the cost of acquisition of the asset or as
part of the expense item, as applicable;
- When receivables and payables are stated with the
amount of tax included
The net amount of tax recoverable from, or payable
to, the taxation authority is included as part of other
current assets / liabilities in the balance sheet.
(r) Government grants
Government grants are recognised where there is
reasonable assurance that the grant will be received
and all attached conditions will be complied with.
When the grant relates to an expense item, it is
recognised as income on a systematic basis over the
periods that the related costs, for which it is intended
to compensate, are expensed. When the grant relates
to an asset, it is recognised as income in equal amounts
over the expected useful life of the related assets.
(s) Climate-related matters
The Company considers climate-related matters
in estimates and assumptions, where appropriate.
This assessment includes a wide range of possible
impacts on the Company due to both physical and
transition risks. Even though the Company believes
its business model and products will still be viable
after the transition to a low-carbon economy, climate-
related matters increase the uncertainty in estimates
and assumptions underpinning several items in the
financial statements. Even though climate-related
risks might not currently have a significant impact
on measurement, the Company is closely monitoring
relevant changes and developments, such as new
climate-related legislation.
(a) Rights, preferences and restrictions attached to shares :
The company has only one class of equity shares having face value of INR 10/- per share. Each shareholder is eligible for one
vote per share held. In the event of liquidation of the company, the equity shareholders are eligible to receive the remaining
assets of the company after distribution of all preferential amount, in proportion to their shareholding.
(b) Buyback of Shares :
The Board of Directors of the Company at its meeting held on August 30, 2024, approved Buyback of 5,00,000 fully paid-up
equity shares of face value of INR 10/- each at a price of INR 1000/- per equity share (being 1.69% of the total paid up equity
capital of the Company) for an aggregate consideration not exceeding INR 5,000 Lacs (excluding transaction cost and any other
expenses incurred for the buy back) representing 4.97% and 4.96% of the aggregate of the paid up share capital and free
reserves (including securities premium) as per the audited standalone and consolidated financial statements respectively as on
March 31, 2024.
The number of issued share capital of the Company pre-buyback was 2,95,97,837 and post-buyback is 2,90,97,837. In
accordance with section 69 of the Companies Act, 2013, the Company has created 'Capital Redemption Reserve' of INR 50
Lacs equal to the nominal value of the shares bought back as an appropriation from general reserve.
(c) Aggregate number of equity shares issued as bonus during the period of five years immediately preceding the
reporting date
During the financial year 2022-23, the Company has allotted 98,65,946 equity shares of face value of INR 10/- each as bonus
shares in the proportion of One bonus equity share of face value of INR 10/- for every Two equity share of face value of INR
10/- held as on the record date, by capitalising an amount of INR 986.59 from securities premium. The bonus shares were listed
on BSE Limited and National Stock Exchange of India Limited w.e.f. October 17, 2022.
aggregate amount of the premium received on those shares shall be transferred to "Securities Premium". The Company
may use this reserve for issuing fully paid-up bonus shares, buy-back of shares and for expenses in relation to issue of
shares.
c) General reserve - General Reserve is created out of the profits earned by the Company by way of transfer from surplus
in the statement of profit and loss. The Company can use this reserve for payment of dividend, issue of bonus shares and
fully / partly paid-up equity shares . No amount has been transferred to general reserve during the years ended March 31,
2026 & March 31, 2025.
d) Capital redemption reserve - As per the Companies Act, 2013, capital redemption reserve is created when company
purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares so
purchased is transferred to capital redemption reserve. The reserve is utilised in accordance with the provisions of section
69 of the Companies Act, 2013.
e) Equity instruments through other comprehensive income - 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 FVTOCI equity investments reserve within equity. The company transfers amounts from this reserve within equity when
the relevant equity securities are derecognised.
Nature of security and terms of repayment for secured borrowing :
Vehicle loans
Term Loans from banks for vehicles have been secured by hypothecation of vehicles. Further, vehicles loans have been guaranteed
by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Kumar Aggarwal. These loans are repayable
in 36 to 39 monthly instalments (Previous Year: 36 to 39 months) from the date of the loans along with interest rates ranging
between 8.25% to 9.75% per annum (Previous year : 8.30%- 9.75% p.a)
FCNR Loans (USD)
As at March 31,2026 outstanding balance for FCNR Loans (USD) is for INR 2,073.25/- (including current maturities for INR 800.00).
The loan is repayable in 20 equal quarterly instalments starting from July 19, 2023. The INR floating interest rate on loan is 3M T-Bill
1.8% payable monthly.
The loan is secured by first pari passu charge over entire current assets, present & future and entire movable fixed assets, present
& future except for those specifically charged to other lender. These loans are additionally secured by equitable mortgage on pari
passu basis over Factory Land & Building and Plant & Machinery at E-442, E-443 and E-444 at RIICO Industrial Area, Chopanki and
negative lien on company's office at Azadpur (Delhi). Second pari passu charge on all movable fixed assets located st CH-21, GIDC
Industrial Estate, Dahej, Dist. Bharuch (Gujarat) and negative lien on the land and building located at CH-21, GIDC Industrial Estate,
Dahej, Dist. Bharuch (Gujarat). Further, these loans have been personally guaranteed by Mr. Hari Chand Aggarwal and Mr. Rajesh
Kumar Aggarwal, promoter director of the company.
The carrying amounts of financial and non-financial assets pledged as security for current and non-current borrowings are disclosed
in note 43.
(c) Risk exposure
Interest rate risk: A fall in the discount rate which is linked to the Government Security Rate will increase the present value
of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets
depending on the duration of asset.
Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members.
As such, an increase in the salary of the members more than assumed level will increase the plan's liability.
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. If the return on plan asset is below this
rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government
securities, and other debt instruments.
Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of
Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not
have any longevity risk.
Note:
Working Capital Loans (Loans repayable on demand & Cash Credit) from banks are secured by first pari passu charge over entire
current assets, present & future and entire movable fixed assets, present & future except for those specifically charged to other
lender. These loans are additionally secured by equitable mortgage on pari passu basis over Factory Land & Building and Plant &
Machinery at E-442, E-443 and E-444 at RIICO Industrial Area, Chopanki and negative lien on company's office at Azadpur (Delhi).
Second pari passu charge on all movable fixed assets located st CH-21, GIDC Industrial Estate, Dahej, Dist. Bharuch (Gujarat) and
negative lien on the land and building located at CH-21, GIDC Industrial Estate, Dahej, Dist. Bharuch (Gujarat). Further, these
loans have been personally guaranteed by Mr. Hari Chand Aggarwal and Mr. Rajesh Kumar Aggarwal, promoter director of the
company.
32 Significant estimates, judgements and assumptions
The preparation of the Company's financial statements requires management to make estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, accompanying disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are
described below. The Company based its assumptions and estimates on parameters available when the separate financial statements
were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes
or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they
occur.
Contingent liabilities
Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal and
other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur.
The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgement
and the use of estimates regarding the outcome of future events.
Taxes
There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax
determination is uncertain. Where the final tax outcome of these matters is different from the amounts initially recorded, such
differences will impact the current and deferred tax provisions in the period in which the tax determination is made. The assessment
of probability involves estimation of a number of factors including future taxable income.
Impairment of financial assets
The Company assesses impairment based on expected credit losses (ECL) model on trade receivables.
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 rates over the expected life of the trade receivable and is adjusted for forward
looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking
estimates are analysed.
Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is required, the Company estimates the asset's recoverable amount. An
asset's recoverable amount is the higher of an asset's fair value less costs of disposal and its value in use. It is determined for an
individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group
of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre- tax discount rate that reflects current market assessment of the time value of money and the risk specific to the asset.
In determining fair value less cost of disposal, recent market transactions are taken into account. If no such transactions can be
identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples or other available fair
value indicators.
Defined benefit plans (gratuity)
The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity obligation
are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due
to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India,
the management considers the interest rates of government bonds in India.
The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change
only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future
inflation rates in India. Further details about gratuity obligations are given in Note 16(b).
Fair value of financial instruments
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The
Company uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions
existing at the end of each reporting period.
Determining the lease term of contracts with renewal and termination options - Company as lessee
The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option
to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is
reasonably certain not to be exercised.
The Company has several lease contracts that include extension and termination options. The Company applies judgement in
evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers
all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement
date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and
affects its ability to exercise or not to exercise the option to renew or to terminate.
Property lease classification - Company as lessor
The Company has entered into commercial property leases on its investment property portfolio. The Company has determined,
based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of
the economic life of the commercial property and the present value of the minimum lease payments not amounting to substantially
all of the fair value of the commercial property, that it retains substantially all the risks and rewards incidental to ownership of these
properties and accounts for the contracts as operating leases.
Leases - Estimating the incremental borrowing rate
Where the Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate
(IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term,
and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic
environment. The IBR therefore reflects what the Company 'would have to pay', which requires estimation when no observable
rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the
IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates.
Revenue recognition - Estimating variable consideration for returns and volume rebates
The Company's contracts with customers include promises to transfer goods to the customers. Judgement is required to determine
the transaction price for the contract. The transaction price could be either a fixed amount of customer consideration or variable
consideration with elements such as rebates, incentives and cash discounts etc. The estimated amount of variable consideration is
adjusted in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative
revenue recognised will not occur and is reassessed at the end of each reporting period.
The amount of revenue recognised depends on whether the Company act as an agent or as a principal in an arrangement with
a customer. The Company act as a principal if the Company controls a promised goods or service before the Company transfers
the goods or service to a customer and act as an agent if the Company's performance obligation is to arrange for the provision of
goods or service by another party.
33 Hedging activities and derivatives
Derivatives not designated as hedging instruments
The Company uses full currency cum interest rate swap and foreign exchange forward contracts and option contracts to manage
some of its transaction exposures. The foreign exchange forward contracts are not designated as cash flow hedges and are measured
at fair value through profit or loss. These contracts are entered into for period consistent with the foreign currency exposures of the
underlying transactions and with the intention to reduce the foreign exchange risk of expected purchases and sales.
(ii) Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are
(a) recognised and measured at fair value and
(b) measured at amortised cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial
instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath
the table.
*The investments in equity instruments are not held for trading. Instead, they are held for medium or long-term strategic
purpose. Upon the application of Ind AS 109, the Company has chosen to designate these investments in equity instruments
as at FVTOCI as the management believes that this provides a more meaningful presentation for medium or long-term strategic
investments, than reflecting changes in fair value immediately in profit or loss.
There have been no transfers between Level 1 and Level 2 during the period.
Level 1: This includes financial instruments measured using quoted prices. This includes listed equity instruments that have
quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price
as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the
counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as
little as possible on entity-specific estimates. If all 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.
(iii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
a) the fair values of the FVTOCI investments are derived from quoted market prices in active markets.
b) the fair value of forward foreign exchange contracts and principal swap is determined using forward exchange rates at the
balance sheet date.
c) the fair values of the interest-bearing borrowings and loans are determined by using discounted cash flow method using
discount rate that reflects the issuer's borrowing rate as at the end of the reporting period. The own non-performance risk
was assessed to be insignificant.
35 Financial risk management
The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The
main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include
trade and other receivables, security deposits, cash and cash equivalents and loans that derive directly from its operations. The
Company also holds FVTOCI investments and enters into derivative transactions.
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.
(i) Credit risk management
a) Trade receivables
Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and
control relating to customer credit risk management. Outstanding customer receivables are regularly monitored.
The Company periodically assesses the financial reliability of customers, taking into account the financial condition,
current economic trends, and analysis of historical data and ageing of accounts receivable. Individual risk limits are set
accordingly. New customers are analysed individually for creditworthiness before the Company's standard payment
and delivery terms are offered. Sale limits are established for each customers and reviewed periodically.
The Company considers the probability of default upon initial recognition of asset and whether there has been
a significant increase in credit risk on an ongoing basis throughout each reporting period. It considers available
reasonable and supportive forward-looking information. Especially the following indicators are incorporated:
a) Actual or expected significant adverse changes in business, financial or economic conditions that are actual
b) Significant changes in the expected performance and behaviour of the customer, including changes in the
payment status of customer in the company.
The maximum exposure to credit risk arising from trade receivables is provided in note 11(a)
b) Financial instruments and cash deposits
Credit risk from balances with banks is managed by the Company's management in accordance with the policy of the
Company. Counterparty credit limits are reviewed by the Company's management on an annual basis. The limits are
set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential failure
to make payments.
The Company's maximum exposure to credit risk for the components of the balance sheet at March 31, 2026 and
March 31,2025 is the carrying amounts as per Note 7 and 11 except for derivative financial instruments.
c) Corporate Guarantee Fee
In the previous year, the company is exposed to default risk in relation to financial guarantees given to ICICI bank
on behalf of Kaeros Research Limited (Formerly known as Kaeros Research Private Limited) (wholly owned subsidiary
company) for the estimated amount that would be payable to the third party for assuming the obligation. The
Company's maximum exposure in this regard on as at March 31, 2026 is Nil (As at March 31, 2025: INR 5,000).
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's
approach to managing liquidity is to ensure, 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 risking damage to the
Company's reputation. The Company manages liquidity risk by maintaining adequate reserves, by continuously monitoring
forecast and actual cash flows and matching the maturity profiles of the financial assets and liabilities.
The Company enjoys a good reputation for its sound financial management and ability to meet in financial commitments.
CRISIL, a S&P Global Company, a reputed Rating Agency, has re-affirmed the credit rating of CRISIL A/Stable for the long term
and CRISIL A1 for the Short-term Bank facilities.
(i) Financing arrangements
The Company had access to the following undrawn borrowing facilities subject to the reconciliation at the end of the
reporting period :
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 three types of risk: interest rate risk, currency risk and other price risk, such as equity
price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI
investments and derivative financial instruments.
(i) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the
Company's operating activities (when revenue or expense is denominated in a foreign currency).
When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives
to match the terms of the hedged exposure. The Company hedges its exposure to fluctuations on the foreign currency loan
by using foreign currency swaps and forwards.
At March 31, 2026 and March 31, 2025 the Company's hedge position is stated in Note 33. This foreign currency risk is
hedged by using foreign currency forward contracts and full currency interest rate swaps.
Sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in USD , EURO and JPY exchange rates,
with all other variables held constant. The net impact on the Company's profit before tax is due to changes in the fair value
of monetary assets and liabilities.
(ii) 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's exposure to the risk of changes in market interest rates relates primarily
to the Company's debt obligations with floating interest rates. The Company's policy is to keep between 40% and 60%
of its borrowings at fixed rates of interest, excluding borrowings that relate to discontinued operations. The Company
manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings keeping in
view of current market scenario. Company's fixed rate borrowings are not subject to interest rate risk as defined in Ind
AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest
rates. As at March 31, 2026, the exposure to interest rate risk due to variable interest rate borrowings amounted to INR
2,073.25 (March 31, 2025: INR 2,697.93).
(iii) Price risk
(a) Exposure
The Company's exposure to equity securities price risk arises from investments held by the Company in equity shares
of OAT Agrio Co. Ltd. (Co-venturer of J.V.) and classified in the balance sheet as fair value through OCI (note 31).
(b) Sensitivity
The Company's investment in equity shares of OAT Agrio Co. Ltd. (Co-venturer of J.V.) is publicly traded in the
Japanese stock exchange. With all other variables held constant, a 10% movement in the market value of the equity
instrument will increase or decrease other comprehensive income by INR 123.02 (March 31, 2025: INR 82.22).
36 Capital management
(a) Risk management
Capital includes equity attributable to the equity holders to ensure that it maintains an efficient capital structure and healthy
capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and
makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the
capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new
shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. For the
purpose of the Company's capital management, net debt includes interest bearing loans and borrowings and lease liability less
cash and cash equivalents. Capital includes issued equity capital, share premium and all other equity reserves attributable to
the equity holders.
37 Segment information
The Company publishes the standalone financial statements of the Company along with the consolidated financial statements.
In accordance with Ind AS 108, Operating Segments, the Company has disclosed the segment information in the consolidated
financial statements.
v) Terms and conditions of transactions with related parties
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions.
Outstanding balances at the year-end are unsecured and interest free. There have been no guarantees provided or received for
any related party receivables or payables. This assessment is undertaken each financial year through examining the financial
position of the related party and the market in which the related party operates.
41 Leases
The Company has lease contracts for various items of land, office premises, warehouses and vehicles used in its operations. The
lease of land generally have lease terms between 60 to 198 years, while office premises and warehouses have lease terms between
1 to 10 years.
Further, the Company has leases of warehouses and vehicles which have lease term less than 12 months. The Company applies the
"Short term leases" recognition exemption for such leases.
b) Extension and termination options
The Company has lease contracts that include extension and termination options. These options are negotiated by management
and align with the Company's business needs. Management exercises significant judgement in determining whether these
extension and termination options are reasonably certain to be exercised. The Company has considered all the lease payments
relating to periods following the exercise date of extension options, where such option is available with the Company in the
calculation of lease liabilities. The Company has determined that it is not reasonably certain that termination options attached
to lease contracts will be exercised. Therefore, such disclosures are not applicable.
c) Operating Lease Income
The Company has leased out a building. All leases are cancellable with 1 months notice. Rental income received during the year
in respect of operating lease is INR 21.46 (March 31,2025: INR 20.40). Details of assets given on operating lease as at year end
are as below.
42 Earnings per share ('EPS')
Basic EPS amounts are calculated by dividing the profit / loss for the year attributable to equity shareholders of the Company by
the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an
equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting
year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders by the weighted average number of
equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion
of all the dilutive potential equity shares into equity shares.
44 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which
the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued.
The Government of India has consolidated 29 existing labour legislations into a united framework comprising four Labour Code viz
Code on wages 2019, Code on Social Security 2020, Industrial Relation Code 2020, and Occupational Safety, Health and Working
Condition Code 2020 (collectively referred to as the New Labour Codes), These Codes have been made effective from November
21, 2025. The corresponding all supporting rules under these codes are yet to be notified.The Company has estimated that there
is no incremental liability due to implications of these laws to the financial statements.
Further, the Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on
other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as needed.
47 The Company has received Refund of Terminal Excise Duty during the financial years 2014-15, 2015-16 & 2016-17 from the
Director of Foreign Trade (DGFT), Ahmedabad on the basis of issuance of an Advance Release Order (ARO) by DGFT, Mumbai. On
28th November,2019, the Additional Director of Foreign Trade, Ahmedabad has issued show cause notice (which is primary stage
of adjudication) stating that the refunds were erroneously paid by this office and directed to pay back the amount of INR 7,828.87
along with interest @ 15%. The Additional Director of Foreign Trade, Ahmedabad has also provided an opportunity to the Company
to appear before the Authority which is mandatory requirement before adjudicating. In terms of the provisions of the Act, the
Company filed the writ petition before Hon'ble Gujarat High Court against the Show Cause Notice challenging the legality of the
notice and the Hon'ble court has granted interim relief and also stayed the show cause notice proceedings.
48 Audit Trail:
The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by Companies (Accounts) Amendment Rules, 2021 requiring companies, which uses
accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording
audit trail of each and every transaction, creating and 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 Company has used an accounting software for maintaining its books of account which has feature of recording audit trail (edit
log) and the same has operated throughout the year for all relevant transactions recorded in the software. Further, audit trail feature
at data base level for accountiung software to log any direct data change was enabled except certain critical data base tables.
Additionally, the audit trail has been preserved by the Company as per the statutory requirements for record retention.
49 Subsequent Event: - Nil
50 Changes in accounting policies and disclosures
(a) New and amended standards and interpretations
(i) Amendments to Ind AS 21 - Lack of exchangeability
The Ministry of Corporate Affairs (MCA) notified the Companies (Indian Accounting Standards) Amendment Rules, 2025,
which amend Ind AS 21, The Effects of Changes in Foreign Exchange Rates to specify how an entity should assess whether
a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The
amendments also require disclosure of information that enables users of its financial statements to understand how the
currency not being exchangeable into the other currency affects, or is expected to affect, the entity's financial performance,
financial position and cash flows.
The amendments are effective for annual reporting periods beginning on or after 1 April 2025. When applying the
amendments, an entity cannot restate comparative information.
The amendments has no impact on the Company's financial statements.
(ii) Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Non-current Liabilities with
Covenants
In August 2025, the MCA notified amendments to paragraphs 69 to 76 of Ind AS 1 to specify the requirements for
classifying liabilities as current or non-current. The amendments clarify:
• What is meant by a right to defer settlement
• That a right to defer must exist at the end of the reporting period
• That classification is unaffected by the likelihood that an entity will exercise its deferral right
• That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability
not impact its classification
In addition, a requirement has been introduced to require disclosure when a liability arising from a loan agreement is
classified as non-current and the entity's right to defer settlement is contingent on compliance with future covenants
within twelve months.
If there is a breach of a material covenant of a long term loan arrangement on or before the end of the reporting period,
resulting in the liability becoming payable on demand as at the reporting date, and the lender agrees—after the reporting
period but before the financial statements are approved for issue—not to demand repayment for at least 12 months as a
consequence of the breach, this shall be treated as an adjusting event. Accordingly, the entity is not required to classify the
liability as current.
The amendments are effective for annual reporting periods beginning on or after 1 April 2025 retrospectively in accordance
with Ind AS 8.
(iii) Amendments to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangements
In August 2025, the MCA notified amendments to Ind AS 7 Statement of Cash Flows and Ind AS 107 Financial
Instruments: Disclosures to clarify the characteristics of supplier finance arrangements and require additional disclosure of
such arrangements. The disclosure requirements in the amendments are intended to assist users of financial statements in
understanding the effects of supplier finance arrangements on an entity's liabilities, cash flows and exposure to liquidity
risk.
The amendments has no impact on the Company's financial statements.
(iv) International Tax Reform—Pillar Two Model Rules - Amendments to Ind AS 12
In August 2025, the MCA notified amendments to Ind AS 12 Income Taxes in response to the OECD's BEPS Pillar Two rules
and include:
• A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional
implementation of the Pillar Two model rules; and
• Disclosure requirements for affected entities to help users of the financial statements better understand an entity's
exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date.
The mandatory temporary exception - the use of which is required to be disclosed - applies immediately. The remaining
disclosure requirements apply for annual reporting periods beginning on or after 1 April 2025, but not for any interim
periods ending on or before 31 March 2026.
The amendments had no impact on the Company's financial statements as the Company is not in scope of the Pillar Two
model rules.
(b) Standards issued but not yet effective
The amendments to the standards that are notified by the Ministry of Corporate Affairs (MCA), but not yet effective,
up to the date of issuance of the Company's financial statements are disclosed below. The Company will adopt these
amendments to the standards, when they become effective.
(i) Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Non-current Liabilities with
Covenants
In accordance with Ind AS 1 currently applicable, breach of an immaterial covenant is ignored deciding in current vs. non¬
current classification of liabilities. Also, in case of breach of a material covenant of a non-current loan on or before the
reporting date, the entity can obtain waiver from the lender after the reporting date and continue to classify the loan as
non-current liability.
In accordance with changes to Ind AS 1 already notified by the MCA, the above relaxations to classify loan as non-current
liability will not be available from FY 2026-27 onward and need to be applied retrospectively. Consequently:
• A breach of either material or immaterial covenant will trigger current classification of liability.
• To continue classifying loan as non-current liability, entities will need to obtain waiver from the breach on or before
the reporting date.
Reasons for variance:
* Higher of Market value of Investment has lead to increase in the ratio.
52 Other Statutory Information
a) The Company does not have any benami property, nor any proceeding has been initiated or pending against the Company for
holding any benami property.
b) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
c) 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:
(i) 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
(ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
d) 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:
(i) 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
(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
e) The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961).
f) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of layers) Rules, 2017.
g) The Company is not declared wilful defaulter by any bank or financials institution or other lender during the year.
h) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
i) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.
j) The title deeds of all the immovable properties (other than immovable properties where the Company is the lessee and the
lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant
and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.
k) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.
l) The Company does not have any loan or advance in the nature of loans granted to promoters, directors, KMPs and the related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are:
(a) repayable on demand; or
(b) without specifying any terms or period of repayment
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