k. Provisions and contingent liability
The Company recognizes a provision when a
present obligation (legal or constructive) as a
result of past event exists and it is probable that
an outflow of resources embodying economic
benefits will be required to settle such obligation
and the amount of such obligation can be reliably
estimated. These estimates are reviewed at each
reporting date and adjusted to reflect the current
best estimates.
A disclosure of 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 economic benefits or the
amount of such obligation cannot be reliably
measured. When there is a possible obligation or
a present obligation in respect of which likelihood
of outflow of resources embodying economic
benefits is remote, no provision or disclosure
is made.
l. Government grants and subsidies
Government grants are recognized when there
is reasonable assurance that the grant will be
received, and all attaching conditions will be
complied with.
m. Cash and cash equivalents
Cash and cash equivalent in the balance sheet
and for the purpose of standalone statement of
cash flows comprise cash at banks and on hand,
short term deposits with an original maturity of
three months or less and investment in liquid
mutual funds that are readily convertible to
a known amount of cash and subject to an
insignificant risk of changes in value.
n. Segment reporting
According to Ind AS 108, identification of operating
segments is based on the approach of Chief
Operating Decision Maker ('CODM') for making
decisions about allocating resources to the
segment and assessing its performance.
Identification of segments:
An operating segment is a component of the
Company that engages in business activities
from which it earns revenues and incurs
expenses, including revenues and expenses that
relate to transactions with any of the Company's
other components.
Results of the operating segments are reviewed
regularly by the management team (Chairman
and Managing Director, Joint Managing Directors
and Chief Financial Officer) which have been
identified as CODM to make decisions about
resources to be allocated to the segment and
assess its performance and for which discrete
financial information is available.
Allocation of common costs:
Common allocable costs are allocated to each
segment according to the relative contribution of
each segment to the total common costs.
Unallocable items:
Expenses which relate to the Company as a
whole and are not allocable to segments on a
reasonable basis, have been included under
'Other unallocated expenditures'. Assets and
liabilities, which relate to the Company as a whole
and are not allocable to segments on reasonable
basis, are shown as 'Unallocated assets' and
'Unallocated liabilities' respectively.
o. Earnings per share
Basic earnings per share is calculated by dividing
the net profit for the year attributable to equity
shareholders by the weighted average number
of equity shares outstanding during the year.
Diluted earnings per share is computed using the
weighted average number of equity and dilutive
equity equivalent shares outstanding during the
year end, except where the results would be anti¬
dilutive.
p. Dividend to shareholders
The Company recognises a liability to pay
dividend to equity holders when the distribution
is approved by the shareholders, and the
distribution is no longer at the discretion of the
Company. In the period in which the dividends
are approved by the equity shareholders in the
general meeting, a corresponding amount is
recognised directly in equity.
(iv) Use of judgements and estimates
The preparation of the standalone financial
statements requires management to make
judgements, estimates and assumptions that
affect the reported amounts of revenues,
expenses, assets and liabilities, and the
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 judgments are continually
evaluated and are based on historical experience
and other factors, including expectations of
future events that are believed to be reasonable
under the circumstances. The estimates and
und erlying assumptions a re reviewed on
an ongoing basis. Revisions to accounting
estimates are recognised in the period in which
the estimate is revised if the revision affects
only that period, or in the period of the revision
and future period, if the revision affects current
and future period. Revisions in estimates are
reflected in the financial statements in the period
in which changes are made and, if material, their
effects are disclosed in the notes to the financial
statements. 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. Existing circumstances and assumptions
about future developments 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.
Defined benefit obligations
The cost of the defined benefit gratuity plan
is determined using actuarial valuations. The
actuarial valuation involves making assumptions
about discount rates, future salary increases
and mortality rates. Due to the long-term nature
of this plan, such estimates are subject to
significant uncertainty.
Useful life of property, plant and equipment
The charge in respect of periodic depreciation
is derived after determining an estimate of an
asset's expected useful life and the expected
residual value. Increasing an asset's expected
life or its residual value would result in a reduced
depreciation charge in the statement of profit
and loss. The useful lives of the Company's
assets are determined by management at the
time the asset is acquired and reviewed at least
annually for appropriateness. The lives are based
on historical experience with similar assets as
well as anticipation of future events, which may
impact their life, such as changes in technology.
Classification of legal matters
The litigations and claims to which the Company
is exposed to are assessed by management with
assistance of the legal department and in certain
cases with the support of external specialized
lawyers. Determination of the outcome of these
matters into "Probable, Possible and Remote"
require judgement and estimation on case to
case basis.
Fair value measurements
When the fair values of financial assets and
financial liabilities recorded in the standalone
balance sheet cannot be measured based on
quoted prices in active markets, their fair value is
measured using valuation techniques. The inputs
to these models are taken from observable
markets where possible, but where this is not
feasible, a degree of judgment is required in
establishing fair values. Judgements 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.
Inventories
Management estimates the net realisable values
of finished goods, taking into account the most
reliable evidence available at each reporting
date. The future realisation of these inventories
may be affected by future market-driven
changes that may reduce future selling prices.
Discounts / rebate to customers
The Company provides discount and rebates
on sales to certain customers. Revenue from
these sales is recognised based on the price
charged to the customer, net of the estimated
pricing allowances, discounts, rebates, and other
incentives. In certain cases, the amount of these
discount and rebates are not determined until
claims with appropriate evidence is presented
by the customer to the Company, which may be
some time after the date of sale. Accordingly,
the Company estimates the amount of such
incentives basis the terms of contract, incentive
schemes, historical experience adjusted
with the forward looking and the business
forecast. Such estimates are subject to the
estimation uncertainty.
(v) New and amended standards
The Ministry of Corporate Affairs vide notification
dated 09 September, 2024 and 28 September,
2024 notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024 and
Companies (Indian Accounting Standards) Third
Amendment Rules, 2024, respectively, which
amended/ notified certain accounting standards
(see below), and are effective for annual reporting
periods beginning on or after 01 April, 2024:
Ý Insurance contracts - Ind AS 117; and
Ý Lease Liability in Sale and Leaseback —
Amendments to Ind AS 116,
These amendments did not have any material
impact on the amounts recognised in prior
periods and are not expected to significantly
affect the current or future periods.
vi) Recent Accounting Pronouncement issued
but not made effective.
The Ministry of Corporate Affairs ("MCA") notifies
new standard or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as amended from time to time.
During the year ended 31 March 2025, MCA has
notified following new standards or amendments
to the existing standards applicable to
the Company.
Lack of exchangeability - Amendments to Ind
AS 21:
The amendments to Ind AS 21 "The Effects of
Changes in Foreign Exchange Rates" 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 will not have a material impact on
the Company's financial statements.
Notes:
1 On 26 June, 1993, K B Overseas had entered into an agreement with Khushi Ram Bihari Lal Limited wherein K B
Overseas had transferred its entire business including all properties and assets to Khushi Ram Bihari Lal Limited.
Further pursuant to declaratory civil suit no. 962/1998 titled Khushi Ram Bihari Lal Limited vs. Bhagirath Lal
and Others decreed on 24 March 1999, the assets of K B Overseas inter-alia including these land parcels were
taken over by Khushi Ram Bihari Lal Limited and later the name of Khushi Ram Bihari Lal Limited was changed
to KRBL Limited on 01 February, 2000. These properties were mutated in the name of Company and the name
of KRBL Limited has also been entered in land revenue records as bhumidhar. Thus, Company is the owner of
said parcels.
2 The Company has physical possession of these land parcels vide Memorandum of Understandings entered
into by the Company with each of the above mentioned directors and their relatives. Further, the Company
had also executed and registered the General Power of Attorney, will and other necessary documents with the
above mentioned directors and their relative, in favour of the Company.
3 The building is in the possession of the Company and used for its business purpose, however registration in
the name of the Company was pending due to legal dispute. The Company had paid its obligation in full as
per signed sale agreement dated 15 April, 2015. During the current year, the building has been registered in the
name of the Company dated 02 September, 2024.
e) Shares reserved for issue under option
The Company has not reserved any shares for issuance under options.
f) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares
bought back during the period of five years immediately preceding the reporting date
(i) No bonus shares issued, shares issued for consideration other than cash during the period of five years
immediately preceding the reporting date.
(ii) Buy-back of equity shares
During the previous year, the Board of Directors of the Company at its meeting held on 10 August, 2023 approved
the buy-back of fully paid-up equity shares of face value of f 1/- each from its shareholders and promoter
group through tender offer for an aggregate amount not exceeding f 32,500 lacs. The Company completed
the buyback of 6,500,000 equity shares being 2.76% of the total paid up equity share capital at an offer price
of f 500. The equity shares bought back were extinguished on 20 September, 2023. The buy-back tax and other
related expenses of buy-back have been adjusted against the 'Other Equity' as per applicable sections of the
Companies Act 2013.
Description and purpose of reserves:
(i) Retained earnings
Retained earnings are the profits that Company has earned till date less transfers to general reserve dividends or
other distributions paid to shareholders. It includes re-measurement loss / (gain) on defined benefit plans (net of
taxes) that will not be reclassified to the statement of profit and loss.
(ii) General reserve
The Company has transferred a portion of the net profit of the Company to general reserve from time to time and
it is not the item of other comprehensive income. Also the Company has earlier forfeited the partly paid equity
shares with the requisite approvals. The amount originally received against forfeited shares is also included in the
general reserve. The amount is to be utilised in accordance with the provision of the Companies Act, 2013.
A Details of hypothecation
The Company has executed deed of hypothecation in favour of SBICAP Trustee Company Limited (acting as
Security Trustee) and created mortgage on its movable and immovable properties located at various locations
vide memorandum of entries for an amount of f 221,900 lacs (31 March, 2024 : f 155,500 lacs) in the form of loan
and other facilities sanctioned by banks under consortium.
For the Working facility:
1. First pari-passu charge on the entire current assets both present and future with working capital
consortium lenders.
2. First pari-passu hypothecation charge on all rights, title, interest and benefit in all and singular, the Company's
movable assets including but not limited to movable plant and machinery, furniture and fixtures, and tangible
and intangible assets, including, but not limited to tangible assets, both present and future.
3. First pari-passu charge on the entire immovable fixed assets of the Company, both present and future (except
immovable fixed assets of the Company situated at Maharashtra, Madhya Pradesh and Gujarat).
4. Company has undertaken not to sell, transfer, assign, dispose of, mortgage, charge, pledge or create any
lien or in any way encumber any of its Immovable Properties situated at Maharashtra, Madhya Pradesh and
Gujarat."
Further, these current borrowings are also secured vide the personal guarantees of Mr Anil Kumar Mittal, Mr Arun
Kumar Gupta, Mr Anoop Kumar Gupta and Mr. Ashish Mittal (the liability of Mr. Ashish Mittal shall be limited only to
the extent of the immovable properties mortgaged by him in favour of the security trustee for the benefit of working
capital lenders).
B Defined benefit plans
Gratuity
In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, as defined benefit plan.
The gratuity plan provides for a lump sum payment to the employees at the time of separation from the service on
completion of vested year of employment i.e. five years. The liability of gratuity plan is provided based on actuarial
valuation as at the end of each financial year based on which the Company contributes the ascertained liability
to Kotak Mahindra Life Insurance Company Limited with whom the plan assets are maintained.
Policy for recognizing actuarial gains and losses
Actuarial gains and losses of defend benefit plan arising from experience adjustments and effects of changes in
actuarial assumptions are immediately recognized in other comprehensive income. Risks associated with the plan
provisions are actuarial risks. These risk are investment risk, interest rate risk, mortality risk, salary increase risk and
concentration risk.
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.
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.
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.
Salary increase 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.
Concentration risk
Plan is having a concentration risk as all the assets are invested with the insurance company and a default will
wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent
regulatory guidelines which mitigate risk.
44 Financial instruments
The Company's risk management activities are subject to the management direction and control under the
framework of Risk Management Policy as approved by the Board of Directors of the Company. The management
ensures appropriate risk governance framework for the Company through appropriate policies and procedures and
that risks are identified, measured and managed in accordance with the Company's policies and risk objectives.
The Company is primarily exposed to risks resulting from fluctuation in market risk, credit risk and liquidity risk as
explained below:
A Disclosure in respect of financial risk management
1 Credit risk
Credit risk refers to the risk that a counterparty or customer will default on its contractual obligations resulting
in a financial loss to the Company. Financial instruments that are subject to credit risk principally consists of
investments, loans, trade receivables, cash and cash equivalents, other bank balances and other financial assets.
Credit risk management:
Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as
concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of counter parties on
continuous basis with appropriate approval mechanism for sanction of credit limits. Credit risk from balances with
banks, financial institutions and investments is managed by the Company's treasury team in accordance with the
Company's risk management policy. Cash and cash equivalents and deposits are placed with banks having good
reputation, good past track record and high quality credit rating.
Concentration of credit risk with respect to trade receivables are limited, due to the Company's customer base
being large and diverse. 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.
The Company's energy segment debtors are DISCOMs and have interest clause on delayed payments and hence,
they are secured from credit losses in the future. As per past experience, there has been no credit loss for receivables
from State Electricity Boards on account of customer's inability to pay as the revenue is power purchase agreement
driven. Thus, the Company's historical experience of collecting receivables, supported by the level of default indicate
a low credit risk and so trade receivables are considered to be a single class of financial assets. The management
has performed credit risk assessment on individual basis for trade receivables. The Company has rebutted the
presumption of credit risk of financial instruments on initial recognition which are due for more than 30 days.
Particulars
No customer having more than 10% of the total revenue for the financial year 31 March, 2025.
No customer is having more than 10% of the total revenue during the financial year ended 31 March, 2025 and
31 March, 2024 pertaining to Agri segment.
Three customers are having more than 10% of the total revenue during the financial year ended 31 March, 2025 and
31 March, 2024 pertaining to Energy segment.
Liquidity risk refers to the that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities. The Company's objective is to provide financial resources to meet its obligations when they are
due in a timely, cost effective and reliable manner and to manage its capital structure.
The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to
meet operational needs. Any short term surplus cash generated, over and above the amount required for working
capital management and other operational requirements, is retained as cash and cash equivalents (to the extent
required) and any excess is invested in interest bearing term deposits, liquid mutual fund investments and other
short-term investments with appropriate maturities to optimise the cash returns on investments while ensuring
sufficient liquidity to meet its liabilities.
Cost of material is the largest cost component for the Company, thus exposing it to the risk of price Auctions
based on the supply and demand conditions of those materials. Commodity price risk exposure is evaluated and
managed through operating procedures and sourcing policies. The Company has put in place a mix of long-term
and short-term mitigation plans. During the year ended 31 March, 2025 and 31 March, 2024, the Company had not
entered into any derivative contracts to hedge exposure to fluctuations in commodity prices.
(iii) Foreign currency risk
Foreign currency exchange rate 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(export sales and trade receivables). The Company is
exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, AED,
AUD and EUR. The Company manages its foreign currency risk by hedging transactions that are expected to realise
in future and enters into various foreign exchange hedging contracts such as forwards, options etc. to mitigate the
risk arising out of foreign exchange rate movement on foreign currency export receivables. As at reporting date,
the Company has outstanding forward contracts and options of USD 47.75 Mio (31 March, 2024: USD 50.60 Mio).
Disclosure on Financials instruments designated as hedging instrument in cashflow hedge
The Company has designated forward and options contracts as hedging instruments to hedge foreign currency
exchange risk arising on forecasted sales. Pursuant to this, the effective portion of change in value of the hedging
instruments has been recognised in 'Cash flow hedge reserve' in other comprehensive income. Such amount
is reclassified to standalone statement of profit and loss as and when the forecast transaction occurs or the
hedges are no longer effective. Foreign currency exchange risk arises from future commercial transactions and
recognised assets and liabilities denominated in a currency that is not the Company's functional currency (f). The
objective of the hedges is to minimise the volatility of the f cash flows of highly probable forecast transactions.
The Company's policy is to hedge all material foreign exchange risk associated with highly probable forecast
sales transactions denominated in foreign currencies. The Company's policy is to hedge the risk of changes in
foreign currency. The Company designate both change in spot and forward element of forward contracts to hedge
exposure in foreign currency risk on highly probable forecast sales.
a) The management assessed that fair values of cash and cash equivalents, other bank balances, trade receivables,
other financial assets, borrowings, trade payables, lease liabilities and other financial liabilities approximate
their respective carrying amounts largely due to the short-term maturities of these instruments. Further, these
instruments are valued at level 3 and their fair value are considered to be same as their carrying value, as there is
an immaterial change in the lending rate.
b) Investment in equity instrument in the subsidiary has been accounting at cost in accordance with Ind AS 27.
Therefore, the same are not in the scope of Ind AS 109 and not disclosed here.
2 Fair value hierarchy
This section explains the judgements and estimates made in determining the fair value of financial instruments
that are (a) recognised and measured at fair value (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 level prescribed under the accounting
standard. An explanation each level follows underneath the table. Assets and liabilities measured at amortised
cost, for which fair value are disclosed.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices, for example listed equity
instruments, traded bonds, commercial papers and mutual funds with quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques that 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.
3 Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include the use of discount cash flows for
estimating fair value of loans to employees, security deposits and borrowings.
The carrying amounts of trade receivables, cash and cash equivalents, consignment debtors, interest accrued,
other receivables, other bank balances, trade payables, employee payables and other current payables are
considered to be the same as fair values, due to their short term nature.
The fair value for loans and security deposits were calculated based on cash flow discounted using a current
lending rate. They are classified as Level 3 fair value in the fair value hierarchy due to the inclusion of unobservable
inputs, including own credit risk. The fair value of loans to employees and security deposits approximates the
carrying amount.
The fair value for borrowings was calculated based on cash flow discounted using a current borrowing rate. They
are classified as Level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including
own credit risk. The fair value of borrowings approximates the carrying amount.
The fair valuation of investments in quoted equity shares is based on the current bid price of respective investments
as at the balance sheet date.
45 Segmental reporting
A Operating segments
Agri - Comprises of agricultural commodities such as rice, furfural, seed, bran, bran oil, etc.
Energy - Comprises of power generation from wind turbine, husk based power plant and solar power plant.
B Identification of segments
The chief operational decision maker monitors the operating results of its Business segment separately for the
purpose of making decision about resource allocation and performance assessment. Segment performance
is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements.
Operating segment have been identified on the basis of nature of products and other quantitative criteria specified
in the Ind AS 108.
C Segment revenue and results
The expenses and income which are not directly attributable to any business segment are shown as
unallocable expenditure.
D Segment assets and liabilities:
Assets used by the operating segments mainly comprise of property, plant and equipment, trade receivables, cash
and cash equivalents and inventories. Segment liabilities include trade payables and other liabilities. Common
assets and liabilities which cannot be allocated to any of the segments are shown as a part of unallocable
assets/liabilities.
Notes:
1 Amounts are below rounding off thresholds adopted by the Company.
2 As gratuity and compensated absences are computed for all the employees in aggregate, the amount relating to relatives of KMPs
cannot be individually identified.
3 All related party transactions are at arms length price and in the ordinary course of business.Outstanding balances at the year-end
are unsecured and interest free and settlement occurs in cash.
4 Refer note 3(i) for transactions related to property, plant and equipment with KMPs and their relatives.
5 Personal guarantee has been given by Mr. Anil Kumar Mittal, Mr. Anoop Kumar Gupta and Mr. Arun Kumar Gupta in respect of working
capital consortium loan taken by the Company, as at the year ended 31 March, 2025, the outstanding amount of loan is 3 33,497 lacs
(31 March, 2024: 3 46,000 lacs) and Mr. Ashish Mittal (relative of key managerial personnel) to the extent of the immovable properties
as specified in consortium agreement{refer note 23(a)}.
6 Reimbursement of expenses made to KMPs and their relatives are not disclosed as the same being of immaterial value.
7 The revenue from sales of goods to Khushi Ram Behari Lal disclosed at gross value. A discount of 3 76 lacs(31 March, 2024 : 3 82 lacs)
has also been provided related to sales of such goods.
8 Employee related payables, in addition to above, other benefits, perquisites, allowances, amenities and facilities are provided according
to permitted limits as approved by Board and shareholders respectively from time to time as per policy of the Company.
9. Short term employee benefits paid to KPMs does not include perquisites paid to them.
Notes:
1 Indirect taxes mainly comprise of matter relating to VAT, sales tax, customs duty, Goods and Services Tax pending at various levels.
It also includes the matters related to mandi fee levied under the Agricultural Produce Market Committee Act, 2003 for an amount of
3 17 lacs (31 March 2024: 3 390 lacs)
2 A portion of land parcel and building thereupon, situated at Dhuri, Punjab was attached by the Directorate of Enforcement ('ED') to the
extent of value of 3 1,532 lacs in connection with an investigation which is currently pending before the Special Judge, CBI Court. The
Appellate Tribunal, PMLA (Government of India), New Delhi, followed by a confirming order of the Hon'ble High Court of Delhi, restored
the physical possession of the land parcels in favour of the Company for specified purposes against a deposit of 3 1,113 lacs, without
prejudice to the rights and contentions of the parties to be decided in the appeal. On 4 March 2025, the Hon'ble High Court of Delhi,
directed the Tribunal to reconsider Company's plea and decide whether the said amount should be refunded or not. In this regard,
the Company had further prayed for refund of 3 1,113 lacs lying as a deposit with ED. The Honorable High Court of Delhi had directed
the Appellate Tribunal to consider and decide on the refund of the deposit. On 19 March 2025 the Appellate Tribunal has ordered the
ED to refund 3 1,113 lacs to the Company within the period of eight weeks from the date of receipt of the order. However, aforesaid
attachment would continue till conclusion of the matter. The management based upon the legal assessments, is confident that it has
a favourable case and the said attachment shall be vacated and no adjustment is required in the standalone financial statements.
3 Directorate of Enforcement ('ED') registered an Enforcement Case Information Report (ECIR) in 2014 and subsequently filed a criminal
complaint in the year 2021 alleging commission of an offence under Section 3 of the PMLA, 2002 against the Company, KRBL DMCC
(a subsidiary of Company) and one of the Joint Managing Director (JMD) of the Company for certain transactions assumed to be
undertaken in the prior years. As per criminal complaint filed by the ED, it is alleged that M/s Rawasi Al Khaleej General Trading LLC
('RAKGT') had received proceeds of crime of USD 24.62 million in AgustaWestland case during the period 2008-2010 which in turn had
been transferred to the Company through KRBL DMCC. Based on the affidavit filed by Balsharaf Group (one of the Customer of the
Company) in the Hon'ble High Court of Delhi, the amount of USD 24.62 million had been received by RAKGT in the account of Balsharaf
Group. However, ED had attached 1,43,33,221 shares of Balsharaf Group held in KRBL Limited.
The Company had appointed an independent professional firm ('IP') to review the aforesaid allegations and to assess the impact,
if any, on the Statement of the Company in earlier years. Post review of the allegations, the IP had issued a report to the Board of
Directors which was discussed and approved in their previously held meeting, wherein the Board of Directors had responded to the
observations contained therein and basis that no further action was proposed.
The said case is pending before the Special Court and is listed on the given dates in its regular course. The proceedings are at the
initial stage of service of summons on the remaining unserved accused. The next date of hearing is on 31 July 2025. While the outcome
of any judicial proceeding is inherently uncertain and incapable of precise prediction, the management considering the present facts,
opinion from independent legal counsel and other available information has not identified any adjustment or additional disclosure
is required in the standalone financial statements.
4 Other matter comprise of civil cases under CPC 1908, Trade Mark Act 1999, Consumer Protection Act 1986 and other disputes with
customers etc, pending at various levels.
*Based on the legal opinion, the Company is of the firm belief that the above demands are not tenable and highly unlikely to be
retained by higher authorities and is accordingly not carrying any provision in its books in respect of such demands. The amounts
disclosed are based on the orders/ notices received from the authorities.
49 Disclosures pursuant to Regulation 34(3) of Securities and Exchange Board of India (Listing Obligations
And Disclosure Requirements) Regulations, 2015 and Section 186 of the Companies Act, 2013
The Company has not provided any loans, security and corporate guarantees covered under section 186 of the
Companies Act, 2013 during the current financial year and accordingly, the disclosure requirements to the extent
does not apply to the Company. Refer note 7 for details of investment in subsidiaries and note 12 for details of
other investments.
50 Additional regulatory information required by Schedule III to the Companies Act, 2013
i. The Company has complied with the requirement with respect to number of layers as prescribed under section
2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.
ii. The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar
of Companies beyond the statutory period.
iii. The Company has not traded or invested in Crypto currency or virtual currency during the year.
iv. There is no income surrendered or disclosed as income during the year in tax assessments under the
Income-tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.
v. 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:
a. 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
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
vi. The Company have 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 to or on behalf of the Ultimate Beneficiaries.
vii. Basis the management's assessment, it has been concluded that the Company has made no transactions
with struck-off companies under Section 248 of the Companies Act, 2013 or section 560 of the Companies Act,
1956. Further, there are no outstanding balances at balance sheet date with struck-off companies.
52 The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the 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 an edit log of each change made in the books of
account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
For the year ended 31 March 2025, the Company has used an accounting software for maintaining its books of
account which has a feature of audit trail (edit log) facility and the same was enabled at the application level.
The Company has not enabled the feature of recording audit trail (edit log) at the database level (Oracle) for the
accounting software to log any direct data changes but not enabled the feature of recording audit trail (edit log)
at the database level for the said accounting software to log any direct data changes. Further, we did not come
across any instance of audit trail feature being tampered with, other than consequential impact of the exception
given above. Furthermore, other than consequential impact of the exception given above, the audit trail has been
preserved by the Company as per the statutory requirements for record retention where such feature is enabled.
54 Transfer pricing
As per the international transfer pricing norms introduced in India with effect from 01 April, 2001, the Company is
required to use certain specified methods in computing arm's length price of international transactions between
the associated enterprises and maintain prescribed information and documents relating to such transactions.
The appropriate method to be adopted will depend on the nature of transactions/ class of transactions, class
of associated persons, functions performed and other factors, which have been prescribed. The Company is in
the process of conducting a transfer pricing study for the current financial year. However, in the opinion of the
management the same would not have a material impact on these standalone financial statements. Accordingly,
these standalone financial statements do not include any adjustments for the transfer pricing implications, if any.
55 No subsequent event occured post balance sheet date which requires adjustment in the standalone financial
statements for the year ended 31 March, 2025.
As per our report of even date attached.
For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of
Cha rtered Accounta nts KRBL Limited
Firm's Registration No.: 001076N/N500013
Sd/- Sd/- Sd/-
Abhishek Lakhotia Anil Kumar Mittal Anoop Kumar Gupta
Partner Chairman and Managing Director Joint Managing Director
Membership No. 502667 DIN-00030100 DIN-00030160
Sd/- Sd/-
Ashish Jain Piyush Asija
Chief Financial Officer Company Secretary
Membership No.A21328
Place : New Delhi Place : Noida
Date : 16 May, 2025 Date : 16 May, 2025
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