(t) Provisions and contingent liabilities
Provisions are recognized when the Company has a present, legal or constructive obligation as a result of a past
event and it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate of the amount of the obligation can be made. Provisions are determined
based on the best estimate required to settle the obligation at the Balance Sheet date. Provisions are reviewed
at each Balance Sheet date and adjusted to reflect current best estimates.
Provisions are measured at the present value of management's best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. The discount rate used to determine the
present value is a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. The increase in the provision due to the passage of time is recognized as finance
cost.
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. A disclosure for a contingent liability
is made where there is a possible obligation arising out of past events, the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the Company or a present obligation arising out of a past event where it is either not probable that an
outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
(u) Employee Benefits
(i) Short-term Employee Benefits
The distinction between short term and long term employee benefits is based on expected timing of
settlement rather than the employee's entitlement benefits. All employee benefits payable within twelve
months of rendering the service are classified as short term benefits. Such benefits include salaries, wages,
bonus, short term compensated absences, awards, ex-gratia, performance pay etc. and are recognized in
the period in which the employee renders the related service.
(ii) Post-Employment benefits
1. Defined Contribution plan
The Company makes payment to approved superannuation schemes, state government provident fund
scheme and employee state insurance scheme which are defined contribution plans. The contribution
paid / payable under the schemes is recognized in the statement of profit and loss during the period in
which the employee renders the related service. The Company has no further obligations under these
schemes beyond its periodic contributions.
2. Defined Benefit plan
The employees' gratuity fund scheme is Company's defined benefit plan. The present value of the
obligation under such defined benefit plan is determined based on the actuarial valuation using the
Projected Unit Credit Method as at the date of the Balance sheet. In case of funded plans, the fair value of
plan asset is reduced from the gross obligation under the defined benefit plan, to recognize the obligation
on a net basis.
(iii) Long term Employment benefits
The employee's long term compensated absences are Company's other long term benefit plans. The present
value of the obligation is determined based on the actuarial valuation using the Projected Unit Credit Method
as at the date of Balance sheet. In case of funded plans, the fair value of plan asset is reduced from the gross
obligation, to recognize the obligation on a net basis.
In regard to other long term employment benefits, the Company recognizes the net total of service costs,
net interest on the net defined benefit liability (asset) and re-measurements of the net defined benefit
liability (asset) in the statement of profit and loss.
Gratuity
The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees
in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to
vested employees at retirement, death or termination of employment, of an amount based on the respective
employee's salary and the tenure of employment.
The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value of plan
assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit
method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on government bonds that have
terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement
of Profit and Loss.
Remeasurements gains and losses arising from experience adjustments and changes in actuarial assumptions
are recognized in the period in which they occur, directly in other comprehensive income. They are included
in retained earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognized immediately in profit or loss as past service cost.
Provident Fund
The Company operates two plans for its employees to provide employee benefits in the nature of provident
fund.
The Company pays provident fund contributions to publicly administered provident funds as per regulations.
The Company has no further payment obligations once the contributions have been paid. The contributions
are accounted for as defined contribution plans and the contributions are recognized as employee benefit
expense when they are due.
Eligible employees receive benefits from a provident fund, which is a defined benefit plan. Both the employee
and the Company make monthly contributions to the provident fund plan equal to a specified percentage of
the covered employee's salary.
Superannuation
Retirement benefit in the form of superannuation plan is a defined contribution plan. Defined contributions
to insurance Company for employees covered under Superannuation scheme are accounted at the rate of
15% of such employees' basic salary, restricted to ' 150,000/- p.a. The Company recognizes expense toward
the contribution paid / payable to the defined contribution plan as and when an employee renders the
relevant service. The Company has no obligation, other than the contribution payable to the superannuation
fund.
iv) Termination benefits
Termination benefits are payable when employment is terminated by the Company before the normal
retirement date or when an employee accepts voluntary redundancy in exchange for these benefits. The
Company recognizes termination benefits at the earlier of the following dates : (a) when the Company can
no longer withdraw the offer of those benefits; and (b) when the entity recognizes costs for a restructuring
that is within the scope of Ind AS 37 and involves the payment of termination benefits. In the case of an offer
made to encourage voluntary redundancy, the termination benefits are measured based on the number
of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the
reporting period are discounted to present value.
(v) Paid up equity
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax, from the proceeds.
(w) Cash Flow Statement
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of
transactions of a non cash nature and deferral or accruals of past or future cash receipts or payments. The cash
flows from regular operating, investing and financing activities of the Company are segregated.
(x) Dividends to equity holders of the Company
The Company recognizes a liability to make cash or non-cash distributions to equity holders of the Company
when distribution is authorized and the distribution is no longer at the discretion of the Company. As per the
corporate laws in India, a distribution is authorized when it is approved by the shareholders. A corresponding
amount is recognized directly in equity.
(y) Earnings per share
(i) Basic Earnings per Share
Basic earnings per share is calculated by dividing the net profit for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the financial year.
Earnings considered in ascertaining the Company's earnings per share is the net profit for the period after
deducting any attributable tax thereto for the period. The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted for events, such as bonus shares,
other than the conversion of potential equity shares that have changed the number of equity shares
outstanding, without a corresponding change in resources.
(ii) Diluted Earnings per Share
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period is adjusted
for the effects of all dilutive potential equity shares.
(z) Rounding of amounts
All amounts disclosed in these standalone financial statements and notes have been rounded off to the nearest
Million as per the requirement of Schedule III, unless otherwise stated.
2. Material accounting judgements, estimates and assumptions
The preparation of the Company's standalone financial statements requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and
the accompanying disclosures and the disclosure of contingent liabilities. This note provides an overview of
the areas that involve a higher degree of judgments or complexities and of items which are more likely to be
materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.
Detailed information about each of these judgments, estimates and assumptions is mentioned below.
Judgments, estimates and assumptions are continually evaluated. They are based on historical experience and
other factors, including expectations of future events that may have a financial impact on the Company and that
are believed to be reasonable under the circumstances.
A. Judgements
In the process of applying the Company's accounting policies, management has made the following judgements,
which have the most significant effect on the amounts recognized in the standalone financial statements :
1. Legal Contingencies
The Company has received various orders and notices from tax authorities in respect of direct and indirect
taxes. The outcome of these matters may have a material effect on the financial position, results of
operations or cash flows. Management regularly analyzes current information about these matters and
makes judgments for providing provisions for probable contingent losses including the estimate of legal
expense to resolve the matters. In making the decision regarding the need for loss provisions, management
considers the degree of probability of an unfavorable outcome and the ability to make a sufficiently reliable
estimate of the amount of loss. The filing of a suit or formal assertion of a claim against the Company or the
disclosure of any such suit or assertions, does not automatically indicate that a provision of a loss may be
appropriate.
2. Segment Reporting
Ind AS 108 Operating Segments requires Management to determine the reportable segments for the
purpose of disclosure in standalone financial statements based on the internal reporting reviewed by Chief
Operating Decision Maker (CODM) to assess performance and allocate resources. The standard also requires
Management to make judgments with respect to aggregation of certain operating segments into one or
more reportable segment.
The Company has determined that the Chief Operating Decision Maker (CODM) is the Board of Directors
(BoD), based on its internal reporting structure and functions of the BoD. Operating segments used to
present segment information are identified based on the internal reports used and reviewed by the BoD to
assess performance and allocate resources.
3. Joint operation
The Company's composite Steel manufacturing facility at Ginigera is under a strategic alliance arrangement
with a joint venture partner. The facility is managed by Hospet Steels Limited. The alliance confers Kalyani
Steels Limited (KSL) and Mukand Limited (ML) with rights to assets, obligations for liabilities, sharing of
expenses / profit / loss in the proportion of product sharing ratio (viz. 41.38% by KSL and 58.62% by ML).
Thus, KSL and ML have right to the assets and obligations for the liabilities of this arrangement. Thus, the
strategic alliance is a joint arrangement in the nature of joint operation.
B. 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 standalone 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.
1. Defined benefit plans
The cost of the defined benefit plan and other post-employment benefits and the present value of such
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 highly 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 currencies consistent with the currencies of the post-employment
benefit obligation. The mortality rate is based on Indian Assured Lives Mortality (2012-14) Ultimate. Those
mortality tables tend to change only at interval in response to demographic changes. Future salary increases
and benefit increases are based on expected future inflation rates. Further details about employee benefit
obligations are given in Note 37.
2. Fair value measurement of unquoted financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques
including the DCF model. The inputs to these models are taken from observable markets where possible,
but where this is not feasible, a degree of judgement is required in establishing fair values. Judgments
and estimates include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in
assumptions about these factors could affect the reported fair value of financial instruments. See Note 39
for further disclosures.
3. Impairment of Financial Assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected
loss rates. The Company uses judgement in making these assumptions and estimates 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.
4. Deferred Tax
At each balance sheet date, the Company assesses whether the realization of future tax benefits is sufficiently
probable to recognize deferred tax assets. This assessment requires the use of significant estimates with
respect to assessment of future taxable income. The recorded amount of total deferred tax asset could
change if estimates of projected future taxable income or if changes in current tax regulations are enacted.
(a) Investment in Equity Shares of Clean Renewable Energy KK1A Private Limited
The Company has invested in 1,857,223 equity shares of face value ' 10/- each, at a premium of ' 17.94/- per
share, in Clean Renewable Energy KK1A Private Limited. As a result of this investment, the Company holds
8.64% equity stake in Clean Renewable Energy KK1A Private Limited for captive use of electricity generated in
the captive power plant.
(b) Investment in Equity Shares of Clean Renewable Energy KK1B Private Limited
The Company has invested in 1,034,453 equity shares of face value ' 10/- each, at a premium of ' 18.37/-
per share, in Clean Renewable Energy KK1B Private Limited. As a result of this investment, the Company holds
4.85% equity stake in Clean Renewable Energy KK1B Private Limited for captive use of electricity generated in
the captive power plant.
Nature and purpose of reserves :
i) Retained earnings in the statement of profit & loss
Surplus in statement of profit & loss represents the undistributed profit of the company as on balance sheet
date.
ii) General reserve
Under the erstwhile Companies Act,1956, a general reserve was created through an annual transfer of net
profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of
the Companies Act, 2013, the requirement to mandatory transfer a specified percentage of net profit to general
reserve has been withdrawn. There is no movement in general reserve during the current and previous year.
iii) FVTOCI Equity investment reserve
The Company has elected to recognize changes in the fair value of investment in compulsorily convertible
debentures in other comprehensive income being in substance equity instruments. These changes are
accumulated within the FVTOCI investment reserve within equity. The Company has transferred amounts
from the said reserve to retained earnings when the relevant debentures are de-recognized.
B) Gratuity
The Company has formed "Kalyani Steels Limited Employees' Group Gratuity cum Life Assurance Scheme"
to manage its gratuity obligations. The joint operation at Hospet Steels Limited has formed "Hospet Steels
Employees Gratuity Trust" to manage its gratuity obligations. The money contributed by the Company to the fund
to finance the liabilities of the plan has to be invested. The trustees of the plan have outsourced the investment
management of the fund to an insurance company - Life Insurance Corporation of India. Every permanent
employee is entitled to a benefit as per policy of the Company of the last drawn salary for each completed year
of service in line with the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the
Company or retirement, whichever is earlier. The benefits vest after five years of continuous service. There is no
compulsion on the part of the Company to fully pre-fund the liability of the Plan. The Company's philosophy is to
fund the benefits based on its own liquidity as well as level of under funding of the plan.
VI) The Company expects to contribute ? 35.93 Million to the gratuity fund in the next year.
C) Superannuation plan
The Company and its Joint Operation has formed "Kalyani Steels Limited Officers' Superannuation Scheme" and
"Hospet Steels Limited Employees Superannuation Trust" respectively to manage its superannuation scheme
through Life Insurance Corporation of India. Contributions are made at 15% of basic salary for employees covered
under the superannuation scheme. The obligation of the Company is limited to the amount contributed and it
has no further contractual nor any constructive obligation. The expense recognized during the period towards
defined contribution plan is ' 12.81 Million (March 31, 2025 : ' 12.36 Million).
D) Risk Exposure
Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are
detailed below:
Asset Volatility : All plan assets for gratuity and superannuation are maintained in a trust managed by a public
sector insurer viz, LIC of India. LIC has a sovereign guarantee and has been providing consistent and competitive
returns over the years. The company has opted for a traditional fund wherein all assets are invested primarily in
risk averse markets. The company has no control over the management of funds but this option provides a high
level of safety for the total corpus. A single account is maintained for both the investment and claim settlement
and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.
Asset volatility risk for provident fund : The plan liabilities are calculated using a discount rate set with reference
to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments
is in fixed income fund, manages interest rate risk with derivatives to minimise risk to an acceptable level. A
portion of the funds are invested in equity securities and in alternative investments which have low correlation
with equity securities. The equity securities are expected to earn a return in excess of the discount rate and
contribute to the plan deficit. The Company has a risk management strategy where the aggregate amount of
risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by
rebalancing the portfolio. The Company intends to maintain the above investment mix in the continuing years.
Changes in bond yields : A decrease in bond yields will increase plan liabilities, although this will be partially
offset by an increase in the value of plans' bond holdings.
Life expectancy : This is particularly significant where inflationary increases result in higher sensitivity to
changes in life expectancy.
Future salary increase and inflation risk : Since price inflation and salary growth are linked economically, they
are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments
resulting in a higher present value of liabilities especially unexpected salary increases provided at management's
discretion may lead to uncertainties in estimating this increasing risk.
Asset-Liability mismatch risk : Risk arises if there is a mismatch in the duration of the assets relative to the
liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralize
valuation swings caused by interest rate movements. The Company ensures that the investment positions are
managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term
investments that are in line with the obligations under the employee benefit plans.
i) Fair value hierarchy :
This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for
which fair values are disclosed in the financial statements. To provide an indication about the reliability of the
inputs used in determining fair value, the Company has classified its financial instruments into three levels
prescribed under the accounting standard. An explanation of each level follows underneath the table.
Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2 : The fair value of financial instruments that are not traded in an active market 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.
ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include :
- The use of quoted market prices or dealer quotes for similar instruments.
- The fair value for preference shares is determined using discounted cash flow analysis (Baramati Speciality
Steels Limited).
- The fair value for compulsorily convertible debentures is determined using asset approach (replacement
value method).
iii) Valuation process
The finance department of the Company includes a team that performs the valuations of assets and liabilities
required for financial reporting purposes. This team appoints external valuation experts whenever the need
arises for Level 3 fair valuation. This team reports directly to the Chief Financial Officer (CFO). Discussions of
valuation processes and results are held between the CFO and the valuation team at least once every year, in
line with the Company's annual reporting period.
iv) Fair value of financial assets and liabilities measured at amortized cost
The management assessed that the fair value of Financial assets and liabilities carried at amortized cost
approximate their carrying amounts largely due to maturities of these instruments.
v) Fair value measurements using significant unobservable inputs (level 3)
The following table presents the changes in Level 3 items :
Note 40 : Financial risk management
The Company is exposed to risks such as changes in foreign currency exchange rates and interest rates.
Presented below is a description of the risks (market risk, credit risk and liquidity risk) together with a sensitivity
analysis, performed annually, of each of these risks based on selected changes in market rates and prices. These
analyses reflect management's view of changes which are reasonably possible to occur over a one-year period.
I) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in the market prices. The Company is exposed in the ordinary course of business to risks related to changes
in foreign currency exchanges rates, commodity prices and interest rates.
A) 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 is engaged in international trade and thereby exposed
to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD. Foreign
exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a
currency that is not the Company's functional currency (INR).
i) Foreign currency risk exposure
The Company's exposure to foreign currency risk (in USD) at the end of reporting period in INR (Million), is as follows :
ii) Commodity Price risk :
The Company's revenue is exposed to the market risk of price fluctuations related to the sale of its steel
products. Market forces generally determine prices for the steel products sold by the Company. These prices
may be influenced by factors such as supply and demand, production costs (including the cost of raw material
inputs) and global and regional economic conditions and growth. Adverse changes in any of these factors
may reduce the revenue that the Company earns from the sale of its steel products. The Company is also
subject to fluctuations in prices for the purchase of iron ore, metallurgical coke, coking coal, ferro alloys, scrap
and other raw material inputs.
Commodity Price Sensitivity :
The Company has a back to back pass through arrangement for volatility in raw material prices for most of
the customers. The selling prices of steel and the prices of input raw material move in the same direction.
However in few cases there may be a lag effect in case of such pass through arrangements and might have
some effect on the Company's profit and equity.
II) Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an
adequate amount of committed credit facilities to meet obligations when due and to close out market positions.
Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by
maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company's
liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, the Company's
liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary
to meet these debt financing plans.
i) Maturities of financial liabilities
The tables below analyze the Company's financial liabilities into relevant maturity groupings based on their
contractual maturities :
III) Credit risk
The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including deposits with banks and other financial instruments.
The balances with banks, loans given to employees and associated company, security deposits are subject to
low credit risk since the counter-party has strong capacity to meet the obligations and where the risk of default
is negligible or nil. Hence, no provision has been created for expected credit loss for credit risk arising from these
financial assets.
A Trade receivables
Senior management is responsible for managing and analyzing the credit risk for each of their new clients
before standard payment, delivery terms and conditions are offered. The Company assesses the credit quality
of the customer, taking into account its financial position, past experience and other factors. Individual risk
limits are set based on internal or external assessment. The utilization of credit limits is regularly monitored.
An impairment analysis is performed at each reporting date on an individual basis for all customers. The
maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets
disclosed in Note 10.
Note 41 : Capital management
The Company's objective when managing capital is to
• safeguard its ability to continue as a going concern, so that the Company can continue to provide returns for
shareholders and benefits for other stakeholders, and
• maintain an optimal capital structure to reduce the cost of capital.
The Company determines the amount of capital required on the basis of annual operating plans and long-term
product and other strategic investment plans. The funding requirements are met through equity, long term and
short term borrowings. The Company's policy is aimed at combination of short-term and long-term borrowings. The
Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall
debt portfolio of the Company. In order to maintain or adjust the capital structure, the Company may adjust the
amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce
debt.
Total debt includes all long and short-term debts as disclosed in Note 15 and Note 20 to the financial statements.
The capital structure of the Company is as follows :
i) In order to achieve this overall objective, the Company's capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements.
ii) There have been no breaches in the Financial covenants of any interest bearing loans and borrowings in the
current period.
Note 44 : Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The Board of Directors has been identified as the chief operating decision maker.
The Company has organized its operating segments based on product groupings. These operating segments have
been aggregated into one reportable business segment : 'Forging and Engineering quality carbon and alloy steels'.
Following are major customers, which contribute more than 10% to the Revenue of the Company. The details are as
under :
Note 47 : There is no proceeding initiated or pending against the Company for holding any Benami property under
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
Note 48 : During the year ended March 31, 2026, the Company was not party to any approved scheme which needs
approval from competent authority in terms of Sections 230 to 237 of the Companies Act, 2013.
Note 49 : As per the information available with the company, no transactions have been entered with any company
struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the year.
Note 50 : The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
Note 51 : The Company has not surrendered or disclosed any income during the year in the tax assessments under
the Income Tax Act, 1961.
Note 52 : The Company has a process whereby periodically all long-term contracts (including derivative contracts)
are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that
adequate provision as required under any law / accounting standards for material foreseeable losses on such
long-term contracts (including derivative contracts) has been made in the books of accounts.
Note 53 : The Company has not been declared as a wilful defaulter by any lender who has powers to declare a
company as a wilful defaulter at any time during the financial year or after the end of reporting period but before
the date when financial statements are approved.
Note 54 : 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 :
(a) 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
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
Note 55 : On November 21, 2025, the Government of India notified the four Labour Codes - The Code on Wages,
2019, The Industrial Relations Code, 2020, The Code on Social Security, 2020 and The Occupational Safety, Health
and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment
published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations.
The Company has assessed and estimated the incremental impact of these changes on the basis of information
available, consistent with the guidance provided by the Institute of Chartered Accountants of India. Considering
the materiality and non-recurring nature of this impact on employee benefits, the Company has accounted ' 79.26
Million in the current year as "Exceptional Items" in the statement of profit and loss account. The impact primarily
arises due to change in wage definition. The Company continues to monitor the finalization of Central / State Rules
and clarifications from the Government on other aspects of the Labour Code and impact of these if any, will be
evaluated and accounted for in accordance with applicable accounting standards in the period in which they are
notified.
Note 56 : Previous year figures have been regrouped / reclassified wherever necessary to conform with current
year's classification / disclosure.
|