1.17 Provisions, contingent liabilities and contingent assets
a. Provisions
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will
be required to settle the obligation. If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. Where discounting is used,
the increase in the provision due to the passage of time is recognized as a finance cost.
b. Contingent liabilities
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. Where there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of resources is remote, no provision
or disclosure is made.
c. Contingent assets
Contingent assets are not recognised in the financial statements. However, contingent assets are
assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset
and related income are recognised in the period in which the change occurs.
1.18 Revenue Recognition
Revenue is measured at the fair value of consideration received or receivable. Amounts recognised as
revenue are net of returns, trade allowances, discounts, rebates, deductions by customers, service tax,
value added tax, goods and services tax and amounts collected on behalf of third parties.
At the inception of the new contractual arrangement with the customer, the Company identifies the
performance obligations inherent in the agreement. The terms of the contracts are such that the services
to be rendered represent a series of services that are substantially the same with the same pattern of the
transfer to the customer.
Revenue is recognized when the control is transferred to the customer and when the Company has
completed its performance obligations under the contracts. Revenue is recognized in a manner that
depicts the transfer of goods and services to customers at an amount that reflects the consideration the
Company expects to be entitled to in exchange for those goods or services.
Revenue is recognized as follows:
(i) Revenue from services represents the amounts receivable for services rendered.
(ii) For non-contract-based business, revenue represents the value of goods delivered or services
performed.
(iii) For contract-based business, revenue represents the sales value of work carried out for customers
during the period. Such revenues are recognized in the period in which the service is rendered.
(iv) Unbilled revenue (contract assets) net of expected deductions is recognised at the end of each period.
Such unbilled revenue is reversed in the subsequent period when actual invoice is raised.
(v) Unearned revenue (contract liabilities) represents revenue billed but for which services have not yet
been performed and is included under Advances from customers. The same is released to the statement
of profit and loss as and when the services are rendered.
a. Rendering of Services
In contracts involving the rendering of services, revenue is measured using the proportionate completion
method when no significant uncertainty exists regarding the amount of the consideration that will be derived
from rendering the service. When the contract outcome cannot be measured reliably, revenue is recognised
only to the extent that the expenses incurred are eligible to be recovered.
Estimates of revenue, costs or extent of progress towards completion are revised if circumstances change. Any
resulting increases or decreases in estimated revenue or costs are reflected in profit or loss in the period in
which the circumstances that give rise to the revision become known to the management.
Multiple-element arrangements
When a sales arrangement contains multiple elements, such as services, material and maintenance, revenue for
each element is determined based on each element's fair value.
Revenue recognition for delivered elements is limited to the amount that is not contingent on the future
delivery of products or services, future performance obligations or subject to customer-specified return or
refund privileges.
The undiscounted cash flows from the arrangement are periodically estimated and compared with the
unamortized costs. If the unamortized costs exceed the undiscounted cash flow, a loss is recognized.
Interest income
For all debt instruments measured either at amortised cost or at fair value through other comprehensive
income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts
the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a
financial liability. When calculating the effective interest rate, the Company estimates the expected cash flows
by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call
and similar options) but does not consider the expected credit losses. Interest income is included in other
income in the statement of profit and loss.
b. Other Income
(i) Miscellaneous Income
Miscellaneous Income includes Rounding off and other non operating income these are recognized as and
when accrued.
1.19 Borrowing Costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalised during the period of time that is required to complete
and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a
substantial period of time to get ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
Other borrowing costs are expensed in the period in which they are incurred.
1.20 Leases
Company as a lessee
The Company's lease asset classes primarily consist of leases for buildings. For any new contracts
entered into or changed on or after April 1, 2019, the Company assesses whether a contract is, or
contains a lease. A lease is defined as 'a contract, or part of a contract, that conveys the right to use
an asset (the underlying asset) for a period in exchange for consideration'. To apply this definition the
Company assesses whether the contract meets three key evaluations which are whether:
(i) the contract contains an identified asset, which is either explicitly identified in the contract or implicitly
specified by being identified at the time the asset is made available to the Company
(ii) the Company has the right to obtain substantially all of the economic benefits from use of the identified
asset throughout the period of use, considering its rights within the defined scope of the contract
(iii) The Company has the right to direct the use of the identified asset throughout the period of use.
the Company assesses whether it has the right to direct 'how and for what purpose' the asset is used
throughout the period of use.
Measurement and recognition of leases as a lessee
At lease commencement date, the Company recognises a right-of-use asset ('ROU') and a corresponding
lease liability on the balance sheet. The right-of-use asset is measured at cost, which comprises of the initial
measurement of the lease liability, any initial direct costs incurred by the Company, an estimate of any costs to
dismantle and remove the asset at the end of the lease, and any lease payments made in advance of the lease
commencement date (net of any incentives received).
The Company depreciates the right-of-use assets using the written down value method from the lease
commencement date to the earlier of the end of theuseful life of the right-of-use asset or the end of the lease
term. The Company also assesses the right-of-use asset for impairment when such indicators exist
Ind AS116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with
an option to extend or terminate the lease, if the use of such option is reasonably certain. The lease term in
future periods is reassessed to ensure that the lease term reflects the current economic circumstances
Extension and termination options are included in a number of leases of the Company. These are used to
maximise operational flexibility in terms of managing the assets used in the Company's operations. The majority
of extension and termination options held are exercisable only by the Company and not by the respective lessor.
At the commencement date, the Company measures the lease liability at the present value of the lease
payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily
available or the Company's incremental borrowing rate. Lease payments included in the measurement of the
lease liability are comprises of fixed payments (including in substance fixed), variable payments based on an
index or rate, amounts expected to be payable under a residual value guarantee and payments arising from
options reasonably certain to be exercised.
Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest.
It is remeasured to reflect any reassessment or modification, or if there are changes in in-substance fixed
payments. When the lease liability is remeasured, the corresponding adjustment is reflected in the rightof-use
asset, or profit and loss if the right-of-use asset is already reduced to zero.
The Company has elected to account for short-term leases and leases of low-value assets using the practical
expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are
recognised as an expense in profit or loss on a straightline basis over the lease term.
1.21 Tax Expenses
Tax expense consists of current and deferred tax.
a. Income Tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the
year and any adjustment to the tax payable or receivable in respect of previous years. The amount
of current tax reflects the best estimate of the tax amount expected to be paid or received after
considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax
laws) enacted or substantively enacted by the reporting date.
Management periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretations and considers whether it is probable
that a taxation authority will accept an uncertain tax treatment.
b. Deferred Tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation
purposes. Deferred tax is not recognised for:
Temporary differences arising on the initial recognition of assets or liabilities in a transaction that is
not a business combination and that affects neither accounting nor taxable profit or loss at the time
of the transaction; and
Deferred tax assets are recognised for deductible temporary differences, the carry forwards of unused
tax credits and unused tax losses. Deferred tax assets are recognised to the extent that it is probable
that future taxable profits will be available against which they can be used. The existence of unused tax
losses is strong evidence that future taxable profit may not be available. Therefore, in case of a history
of recent losses, the Company recognises a deferred tax asset only to the extent that it has sufficient
taxable temporary differences or there is convincing other evidence that sufficient taxable profit will
be available against which such deferred tax asset can be realised. Deferred tax assets - unrecognised
or recognised, are reviewed at each reporting date and are recognised/ reduced to the extent that it
is probable/ no longer probable respectively that the related tax benefit will be realised.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled, based on the laws that have been enacted or substantively enacted
by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner
in which the Company expects, at the reporting date, to recover or settle the carrying amount of its
assets and liabilities.
1.22 Earnings Per Share
Basic earnings per share are calculated by dividing the net profit for the period attributable to equity
shareholders of the Company (after deducting preference dividends and attributable taxes) by the
weighted average number of equity shares outstanding during the period.
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 period. The weighted
average number of equity shares outstanding during the period is adjusted for events of bonus issue;
bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation
of shares).
Diluted Earnings per share amounts are computed by dividing the net profit attributable to the equity
holders of the Company (after deducting preference dividends and attributable taxes but after adjusting
the after income tax effect of interest and other financing cost associated with dilutive potential equity
shares) by the weighted average number of equity shares considered for deriving basic earnings per
share and also the weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the
proceeds receivable had the shares been actually issued at fair value (i.e. the average market value of
the outstanding shares). Dilutive potential equity shares are deemed converted as at the beginning of
the year, unless issued at a later date. Dilutive potential equity shares are determined independently for
each year presented.
1.23 Investment properties
Property that is held for long-term rental yields or for capital appreciation or both, and that is not
occupied by the Company, is classified as investment property. Investment properties are measured
initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are
stated at cost less accumulated depreciation and accumulated impairment loss, if any. The cost includes
borrowing costs for long-term construction projects if the recognition criteria are met. Subsequent
expenditure is capitalised to the asset's carrying amount only when it is probable that future economic
benefits associated with the expenditure will flow to the Company and the cost of such expenditure can
be measured reliably.
All other repair and maintenance costs are recognised in profit or loss as incurred. When part of an
investment property is replaced, the carrying amount of the replaced part is derecognised. Investment
properties are derecognised either when they have been disposed of or when they are permanently
withdrawn from use and no future economic benefit is expected from their disposal. The difference
between the net disposal proceeds and the carrying amount of the asset is recognised in profit or loss
in the period of derecognition.
1.24 Cash flow Statements
Cash flows are reported using the indirect method, whereby net profit/ (loss) before tax is adjusted
for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash
receipts or payments and item of income or expenses associated with investing or financing cash flows.
The cash flows from regular revenue generating (operating activities), investing and financing activities
of the Company are segregated.
1.25 Trade receivables
Trade receivables are recognised initially at the amount of consideration that is unconditional unless they
contain significant financing components, in which case they are recognised at fair value. The Company's
trade receivables do not contain any significant financing component and hence are measured at the
transaction price measured under Ind AS 115 "Revenue from Contracts with Customers".
1.26 Determination of fair values
The Company's accounting policies and disclosures require the determination of fair value, for certain
financial and non-financial assets and liabilities. Fair values have been determined for measurement
and/or disclosure purposes based on the following methods. When applicable, further information
about the assumptions made in determining fair values is disclosed in the notes specific to that asset
or liability. A fair value measurement of a non-financial asset takes into account a market participant's
ability to generate economic benefits by using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.
a. Property, plant and equipment
Property, plant and equipment, if acquired in a business combination or through an exchange of non¬
monetary assets, is measured at fair value on the acquisition date. For this purpose, fair value is based
on appraised market values and replacement cost.
b. Intangible assets
The fair value of brands, technology related intangibles, and patents and trademarks acquired in a
business combination is based on the discounted estimated royalty payments that have been avoided
as a result of these brands, technology related intangibles, patents or trademarks being owned (the
"relief of royalty method"). The fair value of customer related, product related and other intangibles
acquired in a business combination has been determined using the multi-period excess earnings
method after deduction of a fair return on other assets that are part of creating the related cash flows.
c. Inventories
The fair value of inventories acquired in a business combination is determined based on its estimated
selling price in the ordinary course of business less the estimated costs of completion and sale, and a
reasonable profit margin based on the effort required to complete and sell the inventories.
d. Derivatives
The fair value of foreign exchange forward contracts is estimated by discounting the difference between
the contractual forward price and the current forward price for the residual maturity of the contract
using a risk-free interest rate (based on government bonds). The fair value of foreign currency option
and swap contracts and interest rate swap contracts is determined based on the appropriate valuation
techniques, considering the terms of the contract.
e. Non-derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of
future principal and interest cash flows, discounted at the market rate of interest at the reporting date.
For finance leases the market rate of interest is determined by reference to similar lease agreements. In
respect of the Company's borrowings that have floating rates of interest, their fair value approximates
carrying value.
1.27 Recent Indian Accounting Standards (Ind AS)
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended
March 31,2026 , MCA has notified and company has adopted the following new amendments to the
existing standards, non of which had a significant impact on the financial statement.
a) Ind AS 1 - Presentation of Financial Statements (effective April 1, 2025):
The amendment clarifies the classification of liabilities as current or non-current and specifically
addresses non-current liabilities with covenants. For determining whether a liability is current, the
amendment removes the requirement for an unconditional right to defer settlement for at least twelve
months after the reporting date. Instead, it requires that the right to defer settlement must exist as
of the reporting date and must have substance. It also provides additional guidance on classifying
liabilities subject to covenants.
b) Ind AS 7 - Statement of Cash Flows and Ind AS 107 - Financial Instruments: Disclosures (effective
April 1, 2025):
The amendment to Ind AS 7 requires companies to disclose the existence of supplier finance
arrangements, including the nature of such arrangements, the carrying amount of related liabilities, and
the range of payment due dates. Ind AS 107 has been correspondingly amended to include supplier
finance arrangements as a factor that may contribute to concentration of liquidity risk.
c) Ind AS 12 - Income Taxes: International Tax Reform - Pillar Two Model Rules (effective April 1,
2025):
The amendments provide a temporary mandatory relief from recognising deferred tax arising from
top-up tax, and require entities to disclose whether this relief has been applied. The relief is effective
immediately and applies retrospectively. The amendments also require companies to provide new
disclosures regarding potential top-up tax exposures in future periods. d) Ind AS 21 - The Effects of
Changes in Foreign Exchange Rates (effective April 1, 2025): The amendments address the 'Lack of
Exchangeability' guidance under Ind AS 21. These amendments clarify the assessment of exchangeability
of a currency and the determination of an appropriate spot exchange rate when exchangeability is
lacking, and require disclosures enabling users to understand the resulting financial impact.
i. During the year on February 28, 2026 , the shareholders of the company has approved Bonus issue of one equity
share of the face value of Rs 5 for every two shares with Face Value of Rs. 5 Each. Consequently, the number of equity
shares increased from 2,02,88,122 to 3,04,32,183 with total paid up Value of Rs.1521.61 Lakhs.
ii. During the previous year on July 03, 2024 , the shareholders of the company has approved subdivision of one equity
share of the face value of Rs 10 each into two equity shares of face value of Rs 5 each.Consequently, the number of
equity shares increased from 1,01,44,061 to 2,02,88,122 without any change in the total paid-up capital.
Note -15.1 Rights attached to equity shares
"The Company has only one class of equity shares having a face value of Rs.5 /- each.For all matters submitted to vote in
a shareholders meeting of the Company, every holder of an equity share, as reflected in the records of the Company as on
the record date set for the shareholders meeting, shall have one vote in respect of each share held."
Should the Company declare and pay any dividends, such dividends will be paid in Indian rupees to each holder of equity
shares in proportion to the number of shares held to the total equity shares outstanding as on that date.
In the event of liquidation of the Company, all preferential amounts, if any, shall be discharged by the Company. The
remaining assets of the Company shall be distributed to the holders of equity shares in proportion to the number of shares
held to the total equity shares outstanding as on that date.
i. Out of the above secured borrowings (a) Rs. 22.27 Lakhs (Previous Year Rs. 3069.18 Lakhs) were obtained
from Axis Bank Limited, (b) Rs. 124.59 Lakhs (Previous Year Rs. 180.11 Lakhs) were obtained from HDFC
Bank Limited, (c) Rs. 1,503.29 Lakhs (Previous Year Rs. 58.01 Lakhs) were obtained from ICICI Bank Limited,
and (d) Rs. 1,463.73 Lakhs (Previous Year Rs. 0 Lakhs) were obtained from IndusInd Bank Limited.
ii. During the year, the Term Loan (Land) availed from Axis Bank Limited was taken over by IndusInd Bank
Limited & ICICI Bank Limited under a refinancing arrangement. Accordingly, the outstanding balance as at
31 March 2026 is respectively disclosed under IndusInd Bank Limited & ICICI Bank Limited.
a) Primary security
1) For IndusInd Bank Limited
Equitable Mortgage by way of First Pari Passu Charge on the Company's Commercial Land & Building
situated at Open Plot Nos. 87 & 88, Kavuri Hills, under GHMC, Ranga Reddy District, Telangana, admeasuring
1.190 Sq. Yards, owned by Kapston Services Limited. The security is shared on a First Pari Passu basis with
ICICI Bank Limited.
2) For ICICI Bank Limited
Equitable Mortgage by way of First Pari Passu Charge on the Company's Commercial Land & Building
situated at Open Plot Nos. 87 & 88, Kavuri Hills, under GHMC, Ranga Reddy District, Telangana, admeasuring
1.190 Sq. Yards, owned by Kapston Services Limited. The security is shared on a First Pari Passu basis with
IndusInd Bank Limited."
a) Primary security
i. The loan from all the lenders are ranked with pari passu, by primarily secured by hypothecation of all the
current assets of the company including inventory and book debts less than 90 days.
b) Colletral security
For Axis Bank and HDFC Bank Limited
i. Existing fixed deposits with pari passu charge
ii. Residential Plot Survey No 51 (Area 174241.6 sq ft) at Maheswaram Mandal , Nacharam Village , Near Bus
stop , Telangana Pin -501218 owned by Kapston services Limited to Axis.
For ICICI Bank Limited
Existing fixed deposits with pari passu charge
For IndusInd Bank Limited
Existing fixed deposits with pari passu charge
Note - 34 Earnings per Share
Basic EPS amounts are computed by dividing the profit for the year attributable to equity holders by the
weighted average number of Equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the profit/(loss) attributable to equity holders by the
weighted average number of equity shares outstanding during the period/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.
Notes:
i. The Company operates defined benefit plan i.e., gratuity for its employees. Under the gratuity plan, every
employee who has completed at least five years of service gets a gratuity on departure at 15 days of last
drawn salary for each completed year of service.
Gratuity and other Post employment benefits
In accordance with applicable laws, the Company has a defined benefit plan which provides for gratuity
payments (the "Gratuity Plan") and covers certain categories of employees in India. The Gratuity Plan provides
a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The
amount of the payment is based on the respective employee's last drawn salary and the years of employment
with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation.
Fair value hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Note - 42 Financial Risk Management Objectives and Policies
The Company's activities expose it to a variety of financial risks, including credit risk, liquidity risk and Market
risk. The Company's risk management assessment and policies and processes are established to identify
and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such
risks and compliance with the same. Risk assessment and management policies and processes are reviewed
regularly to reflect changes in market conditions and the Company's activities. The Board of Directors, risk
management committee and the Audit Committee is responsible for overseeing the Company's risk assessment
and management policies and processes.
A) Credit Risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according
to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk
of deterioration of creditworthiness as well as concentration risks. Financial instruments that are subject to
concentrations of credit risk, principally consist of trade receivables, loans and advances and financial instruments.
The Company strives to promptly identify and reduce concerns about collection due to a deterioration in the
financial conditions and others of its main counterparties by regularly monitoring their situation based on their
financial condition. None of the financial instruments of the Company result in material concentrations of credit
risks.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk was Rs 23,924.88 Lakhs and 19,122.27 Lakhs as at 31 March 2026 and 31 March 2025 respectively,
being the total of the carrying amount of balances with banks, short term deposits with banks, trade receivables,
finance receivables, margin money and other financial assets.
a. Trade Receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The demographics of the customer, including the default risk of the industry and country in which the customer
operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals,
establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company
grants credit terms in the normal course of business.
None of the Company's cash equivalents, including deposits with banks, were past due or impaired as at 31
March 2026.
On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the
impairment loss. For this purpose, it is weighted average of credit losses with the respective risks of default
occurring as weights. The credit loss is the difference between all contractual cash flows that are due to an
entity as per the contract and all the contractual cash flows that the entity expects to receive, discounted to the
effective interest rate.
Credit quality of financial assets and impairment loss
The ageing of trade receivables as of balance sheet date is given in Note No 10. The age analysis has been
considered from the due date.
B) Liquidity Risks
Liquidity risk is the risk that the Company will encounter difficulty in meeting its obligations associated
with financial liabilities. The Company consistently generates sufficient cash flows from operations and
has access to multiple sources of funding to meet its financial obligations and maintain adequate liquidity
for use. The Company's objective is to maintain a balance between continuity of funding and flexibility
through the use of bank overdrafts, bank loans, debentures, shareholder equity, and finance leases.
The below table summarises company's long-term debt that will mature in less than one year based on
the carrying value of borrowings reflected in the financial statements.
The Company has assessed the concentration of risk with respect to refinancing its debt and concluded it to be
low. The Company has access to a sufficient variety of sources of funding and significant portion of short-term
debt maturing within 12 months can be rolled over with existing lenders. The Company believes that it has
sufficient working capital and cash accruals to meet its business requirements and other obligations.
C) Market Risks
Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange
rates and interest rates which will affect the Company's financial position. Market risk is attributable to all
market risk sensitive financial instruments including foreign currency receivables and payables.
D) 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 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). Considering the countries and economic environment in which the Company operates,
its operations are subject to risks arising from fluctuations in exchange rates in those countries.
Note: The list of undertakings covered under MSMED Act was determined by the Company on the basis of
information available with the Company.
Note - 46 Leases
The Company take lease contracts for buildings. The leases generally have lease terms between 3-5 years.
The Company's obligations under its leases are secured by the lessor's title to the leased assets. Generally, the
Company is restricted from assigning and sub-leasing the leased assets. There lease contracts that include
extension and termination options, which are further discussed below.
The Company also has certain leases with lease terms of 12 months or less and leases with low value. The
Company applies the 'short-term lease' and 'lease of low-value assets' recognition exemptions for these leases.
Refer Note 3 for details of carrying amounts of right-of-use assets recognised and the movements during the
year. Set out below are the carrying amounts of lease liabilities (included under interest-bearing borrowings)
and the movements during the year.
Note - 47 Other statutory information:
a. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
b. The Company does not have any transactions with struck off companies.
c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
d. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
e. 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.
f. he 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.
g. The Company has not entered into any transaction which is not recorded in the books of accounts 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).
h. The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
i. 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.
j. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to
237 of the Companies Act, 2013, during the year.
k. The Company has borrowings from banks against security of its current assets. The reports or statements
of Current assets filed by the company with banks are in agreement with the books of accounts.
l. The borrowings obtained by the company from banks and financial institutions have been applied for the
purposes for which such loans were taken.
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