S. Provisions, contingent liabilities and contingent assets
A provision is created when there is a present obligation
as a result of a past event and it is more likely than not that
there will be an outflow of resources embodying economic
benefits to settle such obligation and the amount of such
obligation can be reliably estimated. 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
money and risks specific to the liability. When discounting
is used, the increase in the provision
due to passage of time is recognised as finance cost. These
are reviewed at each Balance Sheet date and adjusted to
reflect current management estimates.
Contingent liabilities are disclosed in respect of possible
obligations that have arisen from past events and the
existence of which will be confirmed only by the occurrence
or non-occurrence of future events not wholly within the
control of the Company. When 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.
Provision for onerous contracts, i.e. contracts where the
expected unavoidable costs of meeting the obligations
under the contract exceed the economic benefits expected
to be received under it, are recognized when it is probable
that an outflow of resources embodying economic benefits
will be required to settle a present obligation as a result of
an obligating event, based on a reliable estimate of such
obligation.
The Company does not recognise assets which are
of contingent nature until there is virtual certainty of
realisability of such assets. However, subsequently, if
it becomes virtually certain that an inflow of economic
benefits will arise, asset and related income is recognised
in the standalone financial statements of the period in
which the change occurs.
T. Cash and cash equivalents
Cash and cash equivalents comprise cash balances on
hand, cash balance with bank and cheques in hands and
highly liquid investments with maturity period of three
months or less from the date of investment.
For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash at bank, cash on hand and
cheques on hand as they are considered an integral part of
the Company's cash management
U. Financial instruments
A. Financial assets
i. Initial recognition and measurement
Financial assets are classified, at initial recognition,
and subsequently measured at amortised cost, fair
value through other comprehensive income (OCI),
and fair value through profit or loss.
The classification of financial assets at initial
recognition depends on the financial asset's
contractual cash flow characteristics and the
Company's business model for managing them. With
the exception of trade receivables that do not contain
a significant financing component or for which the
Company has applied the practical expedient, the
Company initially measures a financial asset at its fair
value plus, in the case of a financial asset not at fair
value through profit or loss, transaction costs. Trade
receivables that do not contain a significant financing
component or for which the Company has applied the
practical expedient are measured at the transaction
price determined under Ind AS 115.
ii) Classification and subsequent measurement
Financial assets
On initial recognition, a financial instrument is
classified and measured at
• Amortised cost
• Fair value through other comprehensive income
(FVOCI) - equity investments; or
• Fair value through profit and loss (FVTPL).
Financial assets are not classified subsequent
to their initial recognition, except if and in the
period the Company changes its business model
for managing financial assets.
A financial asset is measured at amortised cost if
it meets both the following conditions and is not
designated as at FVTPL:
• The asset is held within a business model whose
objective is to hold assets to collect contractual
cash flows; and
• The contractual terms of the financial assets
give rise on a specified date to cash flows that
are solely payments of principal and interest on
the principal amounts outstanding.
• A debt investment is measured at FVTOCI if it
meets both of the following conditions and is not
designated as at FVTPL:
• The asset is held within a business model
whose objective is achieved by both collecting
contractual cash flow and selling financial
assets; and
• The contractual terms of the financial assets
give rise on a specified date to cash flows that
are solely payments of principal and interest on
the principal amounts outstanding.
On initial recognition of an equity investment that is not
held for trading, the Company may irrevocably elect
to present subsequent changes in the investment's
fair value in OCI (designated as FVOCI- equity
investment). This election is made on an investment-
to-investment basis.
All financial assets not classified as amortized cost or
FVOCI as described above are measured at FVTPL.
On initial recognition, the Company may irrevocably
designate a financial asset that otherwise meets
the requirements to be measured at amortized cost
or at FVOCI as at FVTPL, if doing so eliminates or
significantly reduces an accounting mismatch that
would otherwise arise.
Financial assets: Subsequent measurement and gains
and losses
Financial assets, at FVTPL:
These assets are subsequently measured at fair
value. Net gains and losses, including any interest or
dividend income are recognized in the statement of
profit or loss.
Financial assets at amortised cost:
These assets are subsequently measured at
amortised cost using the effective interest method.
The amortised cost is reduced by impairment losses.
Interest income, foreign exchange gains and losses
and impairment are recognized in the statement of
profit and loss. Any gain or loss on derecognition is
recognized in the statement of profit and loss.
Equity investments at FVTOCI:
These assets are subsequently measured at fair value.
Dividends are recognized as income in the statement
of profit and loss unless the dividend clearly represents
a recovery of part of the cost of the investment. Other
net gains and losses are recognized in OCI and are
not reclassified to the statement of profit and loss.
Impairment of financial assets
The Company assesses on a forward-looking
basis the expected credit losses associated with its
assets carried at amortised cost. The impairment
methodology applied depends on whether there has
been a significant increase in credit risk. Company
determines whether there has been a significant
increase in credit risk.
In accordance with Ind AS 109, the Company applies
expected credit loss ("ECL") model for measurement
and recognition of impairment loss. The Company
follows ‘simplified approach' for recognition of
impairment loss allowance on financial assets, trade
receivables. The application of simplified approach
does not require the Company to track changes in
credit risk. Rather, it recognises impairment loss
allowance based on lifetime ECLs at each reporting
date, right from its initial recognition.
For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
that whether there has been a significant increase in
the credit risk since initial recognition. If credit risk has
not increased significantly, 12-month ECL is used to
provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If in
subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then
the Company reverts to recognising impairment loss
allowance based on 12 month ECL.
iii) Derecognition of financial assets
A financial asset is derecognized only when:
• the Company has transferred the rights to
receive cash flows from financial asset or
• retains the contractual rights to receive the cash
flows from financial asset but assumes a
contractual obligation to pay the cash flows to
one or more recipients.
Where the Company has transferred an asset, the
Company evaluates whether it has transferred
substantially all risks and rewards of ownership
of the financial asset. In such cases, the financial
asset is derecognized. Where the Company has
not transferred substantially all risks and rewards of
ownership of the financial asset, the financial asset is
not derecognized.
Where the Company has neither transferred a financial
asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is
derecognized if the Company has not retained control
of the financial asset. Where the Company retains
control of the financial asset, the asset is continued to
be recognized to the extent of continuing involvement
in the financial asset.
B. Financial liability
i) Initial recognition and measurement
Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss or amortised cost. All financial liabilities are
recognized initially at fair value and, in case of
loans and borrowings and payables, net of directly
attributable transaction costs.
ii) Subsequent measurement
The measurement of financial liabilities depends on
their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair
value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for
the purpose of repurchasing in the near term.
Gains or losses on liabilities held for trading are
recognized in the statement of profit and loss.
Financial liabilities designated upon initial recognition at
fair value through profit or loss are designated as such
at the initial date of recognition, and only if the criteria
in Ind AS 109 are satisfied. For liabilities designated as
FVTPL, fair value gains/ losses attributable to changes
in own credit risk are recognized in OCI. These gains/
losses are not subsequently transferred to statement
of profit and loss. However, the Company may transfer
the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognized
in the statement of profit or loss. The Company has
not designated any financial liability as at fair value
through profit or loss.
Amortised cost
After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised
cost using the Effective Interest Rate ("EIR") method.
Gains and losses are recognized in profit or loss when
the liabilities are derecognized as well as through the
EIR amortization process.
Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The
EIR amortization is included as finance costs in the
statement of profit and loss.
Derecognition
A financial liability is derecognized when the obligation
under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced
by another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as the derecognition of the
original liability and the recognition of a new liability.
The difference in the respective carrying amounts is
recognized in the statement of profit or loss.
Offsetting
Financial assets and financial liabilities are offset
and the net amount reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognized amounts and there is an intention to
settle on a net basis, to realize the assets and settle
the liabilities simultaneously.
V. Employee stock option schemes
The Company has adopted the policy to account for
Employees Welfare Trust as a legal entity separate from
the company but as a subsidiary of the company. Any loan
from the company to the trust is accounted for as a loan in
accordance with its term. The cost is calculated based on the
fair value method i.e. the excess of fair value of underlying
equity shares as of the date of the grant of options over
the exercise price of such options is regarded as employee
compensation and in respect of the number of options that
are expected to ultimately vest, such cost is recognised
on a straight line basis over the period over which the
employees would become unconditionally entitled to apply
for the shares. The grant date fair value of options granted to
employees of the Company is recognized as an employee
expense, and those granted to employees of subsidiaries
is considered as the Company's equity contribution and is
added to the carrying value of investment in the respective
subsidiaries, with a corresponding increase in share option
outstanding account, over the period that the employees
become unconditionally entitled to the options. The cost
recognised at any date at least equals the fair value of the
vested portion of the option at that date. Adjustment, if
any, for difference in initial estimate for number of options
that are expected to ultimately vest and related actual
experience is recognised in the Statement of Profit and
Loss of that period. In respect of vested options expires, the
related cumulative cost is credited to the General Reserve.
The expense is recorded for each separately vesting portion
of the award as if the award was, in substance, multiple
awards. The increase in equity recognized in connection
with share based payment transaction is presented as
a separate component in equity under "employee stock
option outstanding account". The amount recognized as
an expense is adjusted to reflect the actual number of
stock options that vest. For the option awards, grant date
fair value is determined under the option-pricing model
(BlackScholes Merton). Corresponding balance of a share
based payment reserve is transferred to general reserve
upon expiry of grants or upon exercise of stock options by
an employee, as the Company is operating the Employee
Stock
Option schemes through Minda Corporation Ltd. Employee
Stock Option Scheme Trust, which has purchased share
from the company.
W. Exceptional items
When an item of income or expense within Statement of
profit and loss from ordinary activity is of such size, nature
or incidence that their disclosure is relevant to explain the
performance of the Company for the year, the nature and
amount of such items is disclosed as exceptional items.
X. Business Combinations
Business combinations are accounted for using the
acquisition method. The cost of an acquisition is measured
as the aggregate of the consideration transferred measured
at acquisition date fair value. Acquisition-related costs are
expensed in the periods in which the costs are incurred and
the services are received, with the exception of the costs
of issuing debt or equity securities that are recognised in
accordance with Ind AS 32 and Ind AS 109
The Company determines that it has acquired a business
when the acquired set of activities and assets include an
input and a substantive process that together significantly
contribute to the ability to create outputs. The acquired
process is considered substantive if it is critical to the ability
to continue producing outputs, and the inputs acquired
include an organised workforce with the necessary skills,
knowledge, or experience to perform that process or it
significantly contributes to the ability to continue producing
outputs and is considered unique or scarce or cannot be
replaced without significant cost, effort, or delay in the
ability to continue producing outputs.
At the acquisition date, the identifiable assets acquired, and
the liabilities assumed are recognised at their acquisition
date fair values. For this purpose, the liabilities assumed
include contingent liabilities representing present obligation
and they are measured at their acquisition fair values
irrespective of the fact that outflow of resources embodying
economic benefits is not probable. However, the following
assets and liabilities acquired in a business combination are
measured at the basis indicated below:
i. Deferred tax assets or liabilities, and the liabilities or
assets related to employee benefit arrangements are
recognised and measured in accordance with Ind
AS 12 Income Tax and Ind AS 19 Employee Benefits
respectively.
ii. Potential tax effects of temporary differences and
carry forwards tax losses/ unabsorbed depreciation
of an acquiree that exist at the acquisition date or
arise as a result of the acquisition are accounted in
accordance with Ind AS 12.
iii. Liabilities or equity instruments related to share based
payment arrangements of the acquiree or share
- based payments arrangements of the Company
entered into to replace share-based payment
arrangements of the acquiree are measured in
accordance with Ind AS 102 Share-based Payments
at the acquisition date.
iv. Assets (or disposal groups) that are classified as held
for sale in accordance with Ind AS 105 Non-current
Assets Held for Sale and Discontinued Operations are
measured in accordance with that Standard.
v. Reacquired rights are measured at a value determined
on the basis of the remaining contractual term of the
related contract. Such valuation does not consider
potential renewal of the reacquired right.
When the Company acquires a business, it assesses the
financial assets and liabilities assumed for appropriate
classification and designation in accordance with the
contractual terms, economic circumstances and pertinent
conditions as at the acquisition date.
If the business combination is achieved in stages, any
previously held equity interest is re-measured at its
acquisition date fair value and any resulting gain or loss is
recognised in the statement of profit and loss or OCI, as
appropriate.
Any contingent consideration to be transferred by the
acquirer is recognised at fair value at the acquisition
date. Contingent consideration classified as an asset or
liability that is a financial instrument and within the scope
of Ind AS 109 Financial Instruments, is measured at fair
value with changes in fair value recognised in statement
of profit and loss in accordance with Ind AS 109. If the
contingent consideration is not within the scope of Ind
AS 109, it is measured in accordance with the appropriate
Ind AS and shall be recognised in statement of profit and
loss. Contingent consideration that is classified as equity
is not re-measured at subsequent reporting dates and
subsequent its settlement is accounted for within equity.
Business combinations under common control
Business combinations involving entities or businesses
under common control have been accounted for using the
pooling of interest method. The assets and liabilities of the
combining entities are reflected at their carrying amounts.
No adjustments have been made to reflect fair values, or to
recognise any new assets or liabilities.
Y. Events after the reporting period
If the Company receives information after the reporting
period, but prior to the date of approved for issue, about
conditions that existed at the end of the reporting period,
it will assess whether the information affects the amounts
that it recognises in its separate financial statements.
The Company will adjust the amounts recognised in its
financial statements to reflect any adjusting events after the
reporting period and update the disclosures that relate to
those conditions in light of the new information. For non¬
adjusting events after the reporting period, the Company
will not change the amounts recognised in its separate
financial statements but will disclose the nature of the
non-adjusting event and an estimate of its financial effect,
or a statement that such an estimate cannot be made, if
applicable.
Z. Key significant judgments, estimates and assumptions
The preparation of the standalone financial statements
requires the 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.
Uncertainty about these judgements, assumptions and
estimates could result in outcomes that require a material
adjustment to the carrying amount of the asset or liability
affected in future periods.
(a) Defined benefit plans and leave encashment
The cost of defined benefit plans and leave encashment
is determined using actuarial valuations. An actuarial
valuation involves making various assumptions which
may differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases, mortality rates. Due
to the complexity of the valuation, the underlying
assumptions 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. In determining the appropriate
discount rate, management considers the interest
rates of long term government bonds with extrapolated
maturity corresponding to the expected duration of
the defined benefit obligation. The mortality rate is
based on publicly available mortality tables for India.
Future salary increases are based on expected future
inflation rates for India. Further details about the
assumptions used, including a sensitivity analysis, are
given in notes to financial statements.
(b) Fair value measurement of financial instrument
When the fair value 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 Discounted Cash Flow (DCF) model.
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. Judgments 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.
(c) Impairment of financial assets
The impairment provisions of financial assets are
based on assumptions about risk of default and
expected loss rates. the Company uses judgment in
making these assumptions and selecting the inputs to
the impairment calculation, based on Company's past
history, existing market conditions as well as forward
looking estimates at the end of each reporting period.
(d) Impairment of non-financial assets
The Company assesses at each reporting date
whether there is an indication that an asset may be
impaired. If any indication exists, or when annual
impairment testing for an asset is required, the
Company estimates the asset's recoverable amount.
An assets recoverable amount is the higher of an
asset's CGU'S fair value less cost of disposal and its
value in use. Where the carrying amount of an asset
or CGU exceeds its recoverable amount, the asset
is considered impaired and is written down to its
recoverable amount.
In assessing value in use, the estimated future
cash flows are estimated based on past trend and
discounted to their present value using a pre-tax
discount rate that reflects current market assessments
of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal,
recent market transactions are taken into account. If
no such transactions can be identified, an appropriate
valuation model is used.
(e) Property, plant and equipment, investment
properties and intangible assets
Property, Plant and Equipment and intangible assets
represent significant portion of the asset base of
the Company. The charge in respect of periodic
depreciation is derived after determining an estimate
of assets expected useful life and expected value
at the end of its useful life. The useful life and
residual value of Company's assets are determined
by Management at the time asset is acquired and
reviewed periodically including at the end of each
year. The Company uses its technical expertise along
with historical and industry trends for determining the
economic useful life of an asset/component of an
asset. The useful lives are reviewed by management
periodically and revised, if appropriate. In case of a
revision, the unamortised amount is charged over the
remaining useful life of the assets.
(f) Employee stock option plan
Estimating fair value for employee stock option
transactions requires determination of the most
appropriate valuation model, which is dependent
on the terms and conditions of the grant. This
estimate also requires determination of the most
appropriate inputs to the valuation model including
the expected life of the share option, volatility and
dividend yield and making assumptions about them.
For the measurement of the fair value of equity-
settled transactions with employees at the grant
date, the Company uses Black-Scholes method. The
assumptions used for estimating fair value for these
transactions are disclosed in notes to account.
(g) Litigations
From time to time, the Company is subject to legal
proceedings, the ultimate outcome of each being
always subject to many uncertainties inherent in
litigation. A provision for litigation is made when it is
considered probable that a payment will be made, and
the amount of the loss can be reasonably estimated.
Significant judgement is made when evaluating,
among other factors, the probability of unfavourable
outcome and the ability to make a reasonable estimate
of the amount of potential loss. These provisions are
reviewed at the end of each reporting date and are
adjusted to reflect the current best estimates.
(h) Revenue recognition
In determining the transaction price for the sale of
products, the Company considers the effects of
various factors such as price variation claim to be
passed on and/or recovered to/from the customers
based on various parameters like negotiations,
ongoing discussion, rebates etc. At each reporting
date, the Company evaluates the amounts of price
adjustments due to or from its customers, based on
ongoing negotiation /contract with customer. The
Company exercises significant judgement / estimate
calculation of price variations claim to be recorded
and are adjusted to reflect the current best estimates.
AA. New and Amended standards
The Company applied for the first-time certain
standards and amendments, which are effective for
annual periods beginning on or after 1 April 2025.
The Company has not early adopted any standard,
interpretation or amendment that has been issued but
is not yet effective.
a. Lack of exchangeability - Amendments to Ind
AS 21
The Ministry of Corporate Affairs notified
amendments to Ind AS 21 The Effects of
Changes in Foreign Exchange Rates to specify
how an entity should assess whether a currency
is exchangeable and how it should determine
a spot exchange rate when exchangeability
is lacking. The amendments also require
disclosure of information that enables users of
its financial statements to understand how the
currency not being exchangeable into the other
currency affects, or is expected to affect, the
entity's financial performance, financial position
and cash flows.
The amendments are effective for annual
reporting periods beginning on or after April 1,
2025. When applying the amendments, an entity
cannot restate comparative information.
The amendments do not have any a material
impact on the standalone financial statements.
b. Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants
In August 2025, the MCA notified amendments
to paragraphs 69 to 76 of Ind AS 1 to specify the
requirements for classifying liabilities as current
or non-current. The amendments clarify:
• What is meant by a right to defer settlement
• That a right to defer must exist at the end of
the reporting period
• That classification is unaffected by the
likelihood that an entity will exercise its
deferral right
• That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability not
impact its classification
In addition, a requirement has been introduced
to require disclosure when a liability arising from
a loan agreement is classified as non-current
and the entity's right to defer settlement is
contingent on compliance with future covenants
within twelve months.
If there is a breach of a material covenant of a
long term loan arrangement on or before the end
of the reporting period, resulting in the liability
becoming payable on demand as at the reporting
date, and the lender agrees—after the reporting
period but before the financial statements are
approved for issue—not to demand repayment
for at least 12 months as a consequence of the
breach, this shall be treated as an adjusting
event. Accordingly, the entity is not required to
classify the liability as current.
The amendments are effective for annual
reporting periods beginning on or after 1 April
2025 retrospectively in accordance with Ind AS
8.
The amendments do not have any impact on the
classification of Company's liabilities.
c. Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements
In August 2025, the MCA notified amendments to
Ind AS 7 Statement of Cash Flows and Ind AS 107
Financial Instruments: Disclosures to clarify the
characteristics of supplier finance arrangements
and require additional disclosure of such
arrangements. The disclosure requirements in
the amendments are intended to assist users of
financial statements in understanding the effects
of supplier finance arrangements on an entity's
liabilities, cash flows and exposure to liquidity
risk.
The amendments do not have any impact on the
standalone financial statements.
d. International Tax Reform—Pillar Two Model
Rules - Amendments to Ind AS 12
In August 2025, the MCA notified amendments
to Ind AS 12 Income Taxes in response to the
OECD's BEPS Pillar Two rules and include:
• A mandatory temporary exception to the
recognition and disclosure of deferred
taxes arising from the jurisdictional
implementation of the Pillar Two model
rules; and
• Disclosure requirements for affected
entities to help users of the financial
statements better understand an entity's
exposure to Pillar Two income taxes arising
from that legislation, particularly before its
effective date.
The mandatory temporary exception - the
use of which is required to be disclosed -
applies immediately. The remaining disclosure
requirements apply for annual reporting periods
beginning on or after 1 April 2025, but not for any
interim periods ending on or before 31 March
2026.
The amendments do not have any impact on the
Company's standalone financial statements as
the Company is not in scope of the Pillar Two
model rules.
Impairment testing of goodwill
For the purposes of impairment testing, goodwill is allocated to the Cash Generating Unit (CGU) which represents the lowest level at
which the goodwill is monitored for internal management reporting purposes.
The recoverable amount of the cash generating unit was based on its value in use. The value in use of this unit was determined to be
higher than the carrying amount and an analysis of the calculation's sensitivity towards change in key assumptions did not identify
any probable scenarios where the CGU recoverable amount would fall below their carry amount. Value in use was determined by
discounting the future cash flows generated from the continuing use of the CGU. The calculation as at March 31, 2026 and March 31,
2025 was based on the following key assumptions:
i. The anticipated annual revenue growth and margin included in the cash flow projections are based on past experience, actual
operating results and the 5-year business plan in all periods presented.
ii. The terminal growth rate ranges from 4% to 5% (March 31, 2025: 4% to 5%) representing management view on the future long¬
term growth rate.
iii. Discount rate 14% (March 31, 2025: 14%) for all periods presented was applied in determining the recoverable amount of the
CGU. The discount rate was estimated based on past experience and companies weighted average cost of capital.
The values assigned to the key assumptions represent the management's assessment of future trends in the industry and based on
both internal and external sources.
incorporated on August 21, 2025 in which the Company holds 60% stake and remaining shares are held by Toyodenso Co. Ltd.
(Japan).
(iv) Amount in absolute is ' 901 (March 31, 2025: ' 901).
(v) During the year, the Company has invested ' 15 million
(vi) During the previous year ended March 31, 2025, the Company had invested 50% stake in Minda-HCMF Technologies Private
Limited, incorporated on December 16, 2024 and remaining shares are held by HSIN CHONG Machinery Works Co Ltd and
became a joint venture of the Company.
(vii) Net of provision for impairment amounting to ' 250 million (March 31, 2025: Rs 250 million).
(viii) During the previous year ended March 31, 2025, the Company had acquired 49% stake in Flash Electronics (India) Private
Limited on January 15, 2025.
(ix) 0.001% Cumulative Redeemable preference shares of '100 each redeemable at par at the expiry of 20 years from the date of
issue. However, the board of the issuer company shall have an option to redeem the same at the expiry of 10 years from the date
of allotment.
(x) The Company had subscribed to 0.01% unsecured Compulsorily Convertible Debentures (CCDs) of ' 1000/- each. Each CCD is
compulsorily convertible into 100 equity shares on the completion period ending December 31, 2044 ("Mandatory Conversion
Date"). However, at any time prior to the mandatory conversion date, the issuer company and the holder of CCDs shall have the
right to convert each CCD into 100 equity shares.
(xi) Information about the Company's exposure to credit and market risks, and fair value measurement is included in note 2.47
2.17.4 Rights, preferences and restrictions attached to each class of shares
a) Equity shares of ' 2 each (March 31, 2025: ' 2 each) fully paid up
The Company has one class of equity shares having a par value of ' 2 per share (March 31, 2025: ' 2 per share). Each
shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the
equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in
proportion to their shareholding.
b) 0.001% cumulative redeemable preference shares of ' 800 each fully paid up
The Company had 240,000 cumulative redeemable preference shares of ' 800 each. The shares carry right of fixed preferential
dividend at a rate of 0.001%. The holders of these shares do not have the right to vote and are compulsorily redeemable at par
on or before the expiry of 20 years from the date of allotment. The dividend on the shares shall be cumulative and any unpaid
dividend shall be added to the amount payable as dividend in the following year and no dividend can be paid on equity shares
until the entire backlog of unpaid dividends on these shares is cleared. In the event of liquidation, these share holders are entitled
to get their capital after satisfaction of dues for secured creditors, but they get preference over equity share capital.
2.17.6 The Company has not issued shares for consideration other than cash, bonus shares and has not bought back shares during
the period of five years immediately preceding the reporting date.
2.17.7 Issue of shares to Minda Corporation Limited Employees' Stock Option Scheme
"Pursuant to the Board of Director's approval in Board meeting held on September 29, 2011, the Company has constituted a trust
under the name "Minda Corporation Limited Employee Stock Option Scheme Trust'' (MCL ESOS Trust), with the objective of acquiring
and holding of shares, warrants or other securities of the Company for the purpose of implementing the Company's ESOP Scheme.
The Company has contributed a sum of '0.1 million towards initial trust fund and later on advanced a sum of '134 million to fund the
purchase of Company's equity shares by Minda Corporation limited - Employee stock option scheme trust. The Company had issued
and allotted, 267,092 equity shares of the Face Value ' 10 each at the premium of ' 490 per equity share to the Minda Corporation
limited - Employee stock option scheme trust, as approved in the Extra ordinary general meeting dated October 24, 2011. Further,
the Company had issued bonus shares in proportion of one equity share for one share held on March 29, 2012, as decided in Extra
ordinary general meeting held on March 16, 2012. During the financial year ended March 31, 2017, the members of the Company had
approved ‘Employee Stock Option Scheme, 2017' through Postal Ballot on February 10, 2017. The plan envisaged grant of stock options
to eligible employees at an exercise price equal to the latest available closing price discounted by 50% or such other percentage as
may be decided by the Nomination and Remuneration Committee.
During the current year, the Company has amended its existing ‘Employee Stock Option Scheme 2017' ("ESOP 2017") by reducing
employee stock option ("Options") pool reserve under ESOP 2017 by 3,218,517 Options (from 5,341,840 Options to 2,123,323 Options)
and balance 500,000 options remain in the scheme.. In pursuant to this amendment, the Company has transferred 3,218,517
unallocated equity shares held by the ‘Minda Corporation Limited - Employee Stock Option Scheme Trust' under ESOP 2017, to the
new scheme ‘Minda Corporation Limited- Employee Stock Option Scheme 2025' ("ESOP 2025" or " Scheme"), for implementation and
grant of Options thereunder, without any fresh issuance of equity shares. Refer note 2.41"
2.17.8 During the current year, the Company has issued and allotted 76,50,000 share warrants, each convertible into or exchangeable
for one fully paid up equity share of the company having a face value of ' 2 each at an issue price of ' 550 per warrant to Minda
Capital Private Limited, payable in cash. Against such allottment the Company has received subscription amount of Rs 1,052 million
(25% of the total consideration amounting to ' 4,208 millions). Total amount of ' 4,208 million is proposed to be raised through
Preferential allotment.
2.18.11 Nature and purpose of other equity
• Capital Reserve
Accumulated capital surplus not available for distribution of dividend.
• Securities premium
Securities premium includes premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance
of bonus shares in accordance with the provisions of the Companies Act, 2013.
• Capital redemption reserve
This represents the unutilised accumulated amount set aside at the time of redemption of preference share. This reserve is
utilised in accordance with the provisions of the Companies Act, 2013.
• Equity component of compound financial instrument - Cumulative redeemable preference share
The Company had issued compulsory redeemable preference shares @0.001% (below market rate). The same were recorded at
cost under previous GAAP. Under Ind AS, the preference shares is treated as compound financial instruments and accordingly,
classified as financial liability and equity. The same is recognised at amortized cost and is discounted using market rate. The
differential between Fair Value and Book Value is considered as equity portion of compound financial instrument.
• Share based payment Reserve
The fair value of the equity settled share based payment transactions with employees is recognised in Statement of Profit and
Loss with corresponding credit to ESOP outstanding. Further, equity settled share based payment transaction with employees of
subsidiary is recognised in investment of subsidiaries with corresponding credit to ESOP outstanding. Corresponding balance of
a ESOP outstanding is transferred to general reserve upon expiry of grants or upon exercise of stock options by an employee,
as the Company is operating the Employee Stock Option scheme (refer note 2.41).
• General reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified
percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution
in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is
less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to
mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount
previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies
Act, 2013.
• Equity instruments through Other Comprehensive Income
The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive
income. These changes are accumulated within the Equity instruments through Other Comprehensive Income. The Company
transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.
• Retained Earnings
Retained earnings are the profits that the Company has earned till March 31, 2026, add/(less) any transfers from/(to) general
reserve, dividends or other distributions paid to shareholders. Retained earnings includes re-measurement gain/(loss) on
defined benefit obligations, net of taxes that will not be reclassified to Profit and Loss.
b) Defined benefit plans - Gratuity (funded)
The Company operates post-employment defined benefit plan that provide gratuity, governed by the New labour code
(Code on Social Security, 2020). Employees who are in continuous service for a period of 5 years arc eligible for gratuity.
The amount of gratuity payable on retirement/termination is the employees last drawn salary per month computed
proportionately for 15 days salary multiplied for the number of years of service or part thereof in excess of six months.
The gratuity plan is a funded plan. The Company does not fully fund the liability and maintains a target level of funding to
be maintained over a period of time based on estimations of expected gratuity payments.
These defined benefit plans expose the Company to actuarial risks., such as longevity risk. currency risk, interest rate risk and
market (investment) risk.
A. Funding
Company's gratuity scheme for employees is funded with the Life Insurance Company Limited and Kotak Life Insurance. The
funding requirements are based on the gratuity fund's actuarial measurement framework set out in the funding policies of the
plan. The funding is based on a separate actuarial valuation for funding purposes for which the assumptions may differ from the
assumptions as mentioned below. Employees do not contribute to the plan.
Contract assets relates to revenue earned by the Company on account of rate difference agreed with the customer or services
rendered but invoice not raised. Amount billed during the year i.e Rs 30 million (March 31, 2025: 45 million) and the closing balance
represents amount to be billed at the year end.
Contract liabilities relates to amount received from customers as an advance against future sale. Performance obligation satisfied
from the amount included in contract liabilities during the current year is ' 123 million (March 31, 2025: ' 242 million). Advance
amount received during the year is ' 270 million (March 31, 2025: ' 123 million) is outstanding at the year end.
including claim in respect of transferor companies merged into Minda Corporation Limited, pursuant to scheme of merger, though
the litigations may be continuing in the name of transferor companies, however any liability arising in future relating to these disputes
will be borne by the Company
** During the curent year, the Company has received an Assessment Order issued under Section 143(3) of the Income-tax Act, 1961,
for the Assessment Year 2023-2024. The order includes certain additions and disallowances to the income returned by the Company
in its income tax return, resulting in a total demand of ' 671 millions, which includes interest of ' 178 millions. The Company has filed
an appeal before the appropriate appellate authorities and believes that its position will likely be upheld and accordingly no provision
is required at this stage.
***Matter pending with Appellate authority from financial year 2017-18 to financial year 2019-20 on account of excess availment
of Input Tax Credit (ITC) in Form GSTR 3B as compared to ITC appearing in Form GSTR 2A. During the current year, the appellate
authority has decided the case in favour of the Company and accordingly demand of ' 44 million (March 31, 2025: ' 44 million) has
been quashed by the authority.
The Company has ongoing disputes with various judicial forums relating to tax treatment of certain items in respect of income tax,
excise, sales tax, VAT, GST and Customs. The Company is contesting these demands and the management believes that our position
will likely to be upheld in the appellate process and accordingly no provision is required to be accrued in these standalone financial
statements with respect to these demands raised. The management believes that the ultimate outcome of this proceeding will not
have a material adverse effect on the Company's financial position and results of operations.
2.39B
During the earlier years, one party had raised a damage claim against the Company by filing a request with International Chamber
of Commerce in Paris. The claim was based on Letter of Comfort ("LOC") signed between party and the Company. At the time of
entering into the above-mentioned LOC, the Company had obtained indemnity letter from the promoter entity, indemnifying the
Company against any loss arising from the LOC. The parties have entered into settlement agreement, pursuant to which, a Consent
Award had been passed by International Chamber of Commerce, vide which the Company was required to pay ' 496 million (Euro
5.5 million). As per Ind AS 37, the Company had accounted for payable against settlement amount under "other financial liabilities"
and correspondingly recognised receivable under "other financial assets". Further, the Party had filed petition before the Hon'ble
High Court for the payment of settlement amount and the Hon'ble High court passed an order and asked the Company to deposit the
settlement amount and accordingly the company had deposited the amount which was disclosed under the "Other non-current assets".
Further, during the year, the amount deposited with the Hon'ble High Court has been transferred to the Daimler AG and Minda Capital
has returned the amount indemnified and the same has been accounted in the books of the Company.
Terms and conditions of transactions with related parties are as below:
(a) Transactions with related parties
All transactions with related parties are entered into on the same terms as applicable to third parties in an arm's length transaction
and in the ordinary course of business. The Company mutually negotiates and agrees consideration and payment terms with the
related parties by benchmarking the same to transactions with non-related parties in similar terms.
(b) Outstanding balance from / to related parties
Outstanding balances at the year-end are unsecured. The settlement for these balances occurs through payment. The Company
has not recorded any impairment of receivables relating to amounts owed by related parties/ investments outstanding for the
year ended March 31, 2026 (March 31, 2025: Nil). This assessment is undertaken each financial year through examining the
financial position of the related party and the market in which the related party operates.
2.41 Employee Share-Based Payment Plans
During the current year, the Company has amended its existing ‘Employee Stock Option Scheme 2017' ("ESOP 2017") by reducing
employee stock option ("Options") pool reserve under ESOP 2017 by 3,218,517 Options (from 5,341,840 Options to 2,123,323
Options) and balance 500,000 options remain in the scheme. In pursuant to this amendment, the Company has transferred 3,218,517
unallocated equity shares held by the ‘Minda Corporation Limited - Employee Stock Option Scheme Trust' under ESOP 2017, to the
new scheme ‘Minda Corporation Limited- Employee Stock Option Scheme 2025' ("ESOP 2025" or " Scheme"), for implementation
and grant of Options thereunder, without any fresh issuance of equity shares. The above amendments has been approved by Board
of directors in their meeting held on February 5, 2026 and the same has been subsequent approved by the members of the Company
by passing special resolution through Postal ballot dated March 15, 2026.
Under the new Scheme, the Board of Directors of the Company (hereinafter referred to as the "Board" which term shall be deemed to
include any Committee, including the Nomination and Remuneration Committee which the Board has constituted) shall create, offer,
issue, grant and allot from time to time, in one or more tranches, not exceeding 3,218,517 Options, to or for the benefit of such eligible
employees of the Company, subsidiaries and associates exclusively working in India or outside India, as determined in terms of the
Scheme and which are exercisable into not more than same number of equity shares of face value of ' 2/- (Rupees Two only) each
fully paid-up ("Shares"). Further, one Option would convert into one Share upon exercise in accordance with the provisions of the
applicable laws and the provisions of the Scheme.
2.43 Leases
Company as a Lessee
The Company Right of use assets primarily consist of Leasehold building representing the properties taken on lease for offices and
warehouse having lease terms between 3 to 15 years.
Leasehold land represents land obtained on long term lease from various Government authorities.
The Company's obligations under its leases are secured by the lessor's title to the leased assets.
The Company also has certain leases with lease terms of 12 months or less on which the Company has applied the ‘short-term lease'
recognition exemptions for these leases.
The Company recorded the lease liability at the present value of the remaining lease payments discounted at the incremental
borrowing rate and has measured right-of-use asset at an amount equal to lease liability.
Company as a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are
classified as operating leases. For operating leases, rental income is recognized on a straight line basis over the term of the relevant
lease.
2.44 The Company has established a comprehensive system of maintenance of information and documents as required by the
transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information
and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the
transactions entered into with the associated enterprises during the financial year and expects such records to be in existence
latest by due date as required under the law. The management is of the opinion that its transactions with the associated
enterprises are at arm's length so that the aforesaid legislation will not have any impact on the financial statements, particularly
on the amount of tax expense and that of provision for taxation.
2.45 As per Ind-AS 108, Operating segments have been defined based on the regular review by the Company's Chief Operating
Decision Maker to assess the performance of each segment and to make decision about allocation of resources. The
Company's business activities fall within single primary operating segment, viz, manufacturing of Automobile Components and
Parts thereof. Accordingly, disclosures under Ind AS 108, Operating Segments are not required to be made.
A. Geographical information
The geographical information analyses the Company's revenue from external customers and non - current assets of its single
reportable segment by the Company's country of domicile (i.e. India) and other countries. In presenting the geographical
information, segment revenue has been based on the geographical location of the customer and segment assets which have
been based on the geographical location of the assets.
B. Non current assets
All non - current assets of the Company are located in India.
2.46 On November 21, 2025, the Government of India notified four new Labour Codes (the Code on Wages, 2019, the Code on
Social Security, 2020, the Industrial Relations Code, 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 accounted for the
incremental impact of these changes with the best information available and guidance provided by the Institute of Chartered
Accountants of India. The impact of the above change amounting to ' 6 million has been disclosed as "Exceptional items" for
the year ended March 31, 2026. The Company continues to monitor the finalization of Central/ State Rules and clarifications
from the Government on other aspects of the Labour Codes and would provide appropriate accounting effect as and when
such clarifications are issued/rules are notified.
The management assessed that the fair values of the quoted invesments are based on price quotations at the reporting date. The fair
values of current financial assets and liabilities significantly approximate their carrying amounts largely due to the current maturities of
these instruments. Accordingly, management has not disclosed fair values for financial instruments such as trade receivables, trade
payables, cash and cash equivalents, other current assets, interest accrued on fixed deposits and other current liabilities etc.
The fair value of non-current financial assets and financial liabilities are determined by discounting future cash flows using current
rates of instruments with similar terms and credit risk. The current rates used do not reflect significant changes from the discount rates
used initially. Therefore, the carrying value of these instruments measured at amortised cost approximate their fair value.
There have been no transfers between Level 1, Level 2 and Level 3 for the years ended March 31, 2026 and March 31, 2025.
Valuation technique used to determine fair value
Specific valuation techniques used to value non current financial assets and liabilities for whom the fair values have been determined
based on present values and the appropriate discount rates of the Company at each balance sheet date. The discount rate is based
on the weighted average cost of borrowings of the Company at each balance sheet date.
Valuation processes
The Company has an established control framework with respect to the measurements of the fair values. This includes a valuation
team that has overall responsibility for overseeing all significant fair value measurements and reports to Senior Management. The
valuation team regularly reviews significant unobservable inputs and valuation adjustments.
b. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
- Credit risk ;
- Liquidity risk ; and
- Market risk - Foreign exchange
- Market risk - Interest rate
Risk management framework
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management
framework. The board of directors have authorised senior management to establish the processes, who ensures that executive
management controls risks through the mechanism of properly defined framework.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate
risks limits and controls, to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes
in market conditions and the Company's activities. The Company, through its training and management standards and procedures,
aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Company uses derivative financial instruments exclusively for hedging financial risks that arise from its foreign exchange related
exposures.
The Company manages its credit risk through credit approvals, establishing credit limits and continuously monitoring credit worthiness
of customers to which the Company grants credit terms in the normal course of business. "
(iii) Valuation technique used to determine fair value
The Company has used discounted cash flow method (income approach) for equity instrument and compulsorily convertible
debentures.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company's receivables from customers, loans.
Credit risk on cash and cash equivalents and other bank balances is limited as the Company generally invests in deposits with
banks with high credit ratings assigned by domestic credit rating agencies. Credit risk on investments is limited as the Company
generally invests in entities after reviewing the liquidity position of the entities.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are
unsecured and are derived from revenue earned from customers primarily located in India. The Company does monitor the
economic environment in which it operates.
As per Ind AS 109, the Company uses expected credit loss (ECL) model to assess the impairment loss or gain. The Company
uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenues. The provision
matrix takes into account available external and internal credit risk factors such as Company's historical experience for customers.
b. Financial risk management (continued)
(ii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far
as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
The Company believes that its liquidity position, including total cash and cash equivalent and other bank balances of Rs 311
million as at March 31, 2026 (March 31, 2025: ' 183 million), anticipated future internally generated funds from operations, and
its fully available revolving undrawn credit facility will enable it to meet its future known obligations in the ordinary course of
business. However, if a liquidity needs were to arise, the Company believes it has access to financing arrangements, value
of unencumbered assets, which should enable it to meet its ongoing capital, operating, and other liquidity requirements. The
Company will continue to consider various borrowing or leasing options to maximize liquidity and supplement cash requirements
as necessary.
The Company has satisfied all debt covenants, except few covenants which were duly regularized by the bank during the year,
prescribed in the terms of rupee term loans. The other loans do not carry any debt covenant. The Company has not defaulted
on any loans payable and term loans were applied for the purpose for which the loans were obtained.
The Company has net current liabilities as at Balance sheet date. Considering the projections of future cash flow from operations,
and availability of available borrowing limits, the management is confident that the Company shall be able to meet its financial
obligations as and when due over the next 12 months and realize its assets in the normal course of business.
The Company's liquidity management process as monitored by management, includes the following:
- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.
- Maintaining rolling forecasts of the Company's liquidity position on the basis of expected cash flows.
- Maintaining diversified credit lines.
(iii) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises two types of risk: currency risk and interest rate risk. The objective of market risk management is
to manage and control market risk exposures within acceptable parameters, while optimising the return.
Currency risk
Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange
rates. The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial
position and cash flows. Exposure arises primarily due to exchange rate fluctuations between the functional currency and other
currencies from the Company's operating, investing and financing activities.
(i) Turnover ratios has been computed considering net average receivables / inventory at the year end
* Additional information pursuant to Regulation 52(4) of Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, as amended for the year ended March 31, 2026.
2.51 Other statutory information
1. The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
2. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period,
3. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
4. 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
5. 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,
6. The Company does not have any such 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
7. The Company is not declared as willful defaulter.
8. The Company does not have any investment property during the financial year.
9. The Company has complied with the number of layers prescribed under the Companies Act, 2013.
10. The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.
11. The Company has not entered into any transactions during the year with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956, and does not has any outstanding balances as on the balance
sheet date.
2.52 Quarterly returns submitted with the bank
During the current year ended March 31, 2026 and previous year ended March 31, 2025 , the Company filed statement of current
assets with the bank on quarterly basis. There were no discrepancies between the statement filed and the books of accounts.
Further, details for the quarter ended March 31, 2026 shall be submitted to the banker's post finalization of accounts.
2.53 The Company was using two accounting software till previous year and during the year, the Company has migrated one of its
legacy accounting software to another existing accounting software, which has a feature of recording audit trail (edit log) facility
and the same has operated throughout the year for all relevant transactions recorded, except that audit trail was not enabled
at the database level and also for certain changes made using privileged/ administrative access rights in the said accounting
software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with
in respect of the said accounting software wherever enabled. Additionally, the audit trail has been preserved by the Company
in compliance with the requirements of section 128(5) of the Companies Act, 2013, in respect of the financial year ended March
31, 2026. Further, in respect of the financial years March 31, 2025 and March 31, 2024, the Company has preserved the audit
trail to the extent it was enabled and recorded in respect of those years.
2.54 Events after Reporting period
The Company evaluates events and transactions that occur subsequent to the Balance sheet date but prior to the approval of
the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in
financial statements. There were no subsequent events to be recognised or reported that are not already disclosed elsewhere
in these standalone financial statements.
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