o. Provision and contingencies
Provisions are recognized when the Company has a present
obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the
obligation. The expense relating to a provision is presented
in the standalone statement of Profit and Loss.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision due
to the passage of time is recognized as a finance cost.
Provisions for onerous contracts, i.e. contracts where the
expected unavoidable costs of meeting obligations under
a contract exceed the economic benefits expected to be
received, 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.
Provisions are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.
A contingent liability is a possible obligation that arises from
past events and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company;
or a present obligation that arises from past events but is
not recognized because it is not probable that an outflow
of resources embodying economic benefits will be required
to settle the obligation; or the amount of the obligation
cannot be measured with sufficient reliability. The Company
does not recognize a contingent liability but discloses its
existence in the Standalone Financial Statements.
A contingent asset is disclosed, where an inflow of economic
benefits is probable.
p. Earnings per share
Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period.
For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.
q. Employee stock compensation cost
Employees (including senior executives) of the Company
receive remuneration in the form of share-based payments
in form of employee stock options, whereby employees
render services as consideration for equity instruments
(equity-settled transactions).
The Company measures compensation cost relating to
employee stock options plans using the fair valuation
method in accordance with Ind AS 102, Share-Based
Payment.
The cost of equity-settled transactions is determined by the
fair value at the date when the grant is made using the Black
Scholes valuation model. That cost is recognized in employee
benefits expense, together with a corresponding increase in
Stock Option Outstanding reserves in equity, over the vesting
period of the option in which the performance and/or service
conditions are fulfilled in a graded manner. The cumulative
expense recognized for equity-settled transactions at each
reporting date until the vesting date reflects the extent to
which the vesting period has expired (net of forfeitures)
and the Company's best estimate of the number of equity
instruments that will ultimately vest. The expense or credit
for a period represents the movement in cumulative expense
recognized as at the beginning and end of that period and is
recognized in employee benefits expense.
Service and non-market performance conditions are not
taken into account when determining the grant date fair
value of awards, but the likelihood of the conditions being
met is assessed as part of the Company's best estimate
of the number of equity instruments that will ultimately
vest. The dilutive effect of outstanding options is reflected
as additional share dilution in the computation of diluted
earnings per share.
No expense is recognized for awards that do not ultimately
vest because non-market performance and/or service
conditions have not been met.
The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.
r. Segment reporting
In accordance with Ind AS 108 - Operating segments,
segment information has been provided in the Consolidated
Financial Statements of the Company and therefore no
separate disclosure on segment information is given in
these Standalone Financial Statements.
s. Retirement and other employee benefits
Employee benefits include contribution to provident and
other funds, gratuity and compensated absences.
Defined contribution plans:
Contributions payable to recognized provident and other
funds, which are defined contribution schemes, are charged
to the standalone statement of profit and loss..
Defined benefit plans:
Gratuity, which is a defined benefit plan, is accrued based on
an independent actuarial valuation, which is done based on
project unit credit method as at the balance sheet date. The
Company recognizes the net obligation of a defined benefit
plan in its balance sheet as an asset or liability. Gains and
losses through re-measurements of the net defined benefit
liability/ (asset) are recognized in Other Comprehensive
Income. In accordance with Ind AS, re-measurement gains
and losses on defined benefit plans recognized in OCI are not
to be subsequently reclassified to the standalone statement
of Profit and Loss. As required under Ind AS compliant
Schedule III, the Company transfers it immediately to
"surplus/ (deficit) in the statement of Profit and Loss".
The Company has an employees' gratuity fund partly
managed by the Life Insurance Corporation of India (LIC).
Provision for gratuity liabilities, pending remittance to the
fund, is carried in the balance sheet.
Short-term employee benefits:
Short-term employee benefits expected to be paid in
exchange for the services rendered by employees are
recognized during the year when the employees render
the service. Compensated absences, which are expected
to be utilized within the next 12 months, are treated as
short-term employee benefits. The Company measures the
expected cost of such absences as the additional amount
that it expects to pay as a result of the unused entitlement
that has accumulated at the reporting date.
Long-term employee benefits:
Compensated absences which are not expected to occur
within twelve months after the end of the period in which
the employees render the related services are treated as
long-term employee benefits for measurement purpose.
Such long-term compensated absences are provided for
based on the actuarial valuation using the projected unit
credit method at the year end, less the fair value of the
plan assets out of which the obligations are expected to
be settled. Actuarial gains/losses are immediately taken
to the standalone statement of Profit and Loss and are
not deferred.
The Company presents the entire compensated absences
balance as a current liability in the balance sheet since it
does not have an unconditional right to defer its settlement
for twelve months after the reporting date.
t. Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise
cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject
to an insignificant risk of changes in value are unrestricted
for withdrawal and usage.
For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash and short-term deposits,
as defined above, net of outstanding bank overdrafts as
they are considered an integral part of the Company's cash
management.
Standalone statement of cash flow:
Cash flows are reported using the indirect method, whereby
profit/(loss) for the period is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals
of past or future operating cash receipts or payments and
item of income or expenses associated with investing
or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are
segregated.
u. Cash dividend
The Company recognizes a liability to make cash
distributions to equity holders of the Company when the
distribution is authorized, and the distribution is no longer
at the discretion of the Company. Final dividends on
shares is recorded as a liability on the date of approval by
the shareholders and interim dividends are recorded as a
liability on the date of declaration by the Company's Board
of Directors.
v. Corporate Social Responsibility (CSR) expenditure
CSR expense is recognized as it is incurred by the Company
or when the Company has entered into any legal or
constructive obligation for incurring such an expense.
2.3. Standards issued but not yet effective
Recent pronouncements Ministry of Corporate Affairs ("MCA")
notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards)
Rules as issued from time to time.
In May 2025, MCA notified amendments to Ind AS 21 - The
Effects of Changes in Foreign Exchange Rates, applicable w.e.f.
April 1, 2025. The Company has reviewed the amendment and
based on its evaluation has determined that it does not have
any significant impact in its financial statements. In August
2025, MCA notified the following amendments to:
1. Ind AS 1, Presentation of Financial Statements,
applicable w.e.f. April 1, 2025 - The amendment relates
to classification of liabilities as current or non-current and
non-current liabilities with covenants. In the context of
classifying a liability as current, it removes the requirement
of existence of a right to defer settlement for at least 12
months after the reporting date and instead requires that
the said right should exist on the reporting date and have
substance. The amendment also introduces guidance on
classification of liabilities with covenants. The Company
has no impact of these amendments in its classification
criteria of current and non-current liabilities.
2. Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments: Disclosures, applicable w.e.f.
April 1, 2025 - The amendment in Ind AS 7 requires to
inform users of financial statements of the existence of
supplier finance arrangements and explain the nature of
the arrangements, the carrying amount of liabilities and
the range of payment due dates. Ind AS 107 has been
amended to add supplier finance arrangements as a
factor that may cause concentration of liquidity risk. The
Company has reviewed the amendment and based on
its evaluation has determined that it does not have any
significant impact in its financial statements.
3. Ind AS 12, International Tax Reform - Pillar Two Model
Rules applicable immediately - The amendments
provide a temporary mandatory relief from deferred tax
accounting for top-up tax and disclose that they have
applied the relief.
4. Ind AS 118 - Presentation and Disclosure in Financial
Statements has been issued, introducing revised
requirements for presentation and enhanced disclosures
in financial statements. The standard is applicable for
annual reporting periods beginning on or after April 1,
2027, and will be applicable to the Company from financial
year 2027-28. The Company is currently evaluating the
impact of this standard and expects it to primarily affect
presentation and disclosures without a material impact
on recognition and measurement.
The fair value of investment property has been determined by registered
valuer as defined under rule 2 of Companies (Registered Valuers
and Valuation) Rules, 2017. The registered valuers have appropriate
recognised professional qualifications and recent experience in the
location and category of the properties being valued.
The registered valuers have considered valuation techniques including
direct comparison method and discounted cash flows in arriving at the
fair value as at the reporting date. These valuation methods involve
certain estimates. The management has exercised its judgement and is
satisfied that the valuation methods and estimates are reflective of the
current market conditions.
The direct comparison method involves the analysis of comparable sales
of similar properties and adjusting the sale prices to that reflective of
the investment properties. The discounted cash flows method involves
the estimation of an income stream over a period and discounting the
income stream with an expected internal rate of return and terminal
yield. The valuation model considers the present value of net cash flows
to be generated from the property, taking into account the expected
rental growth rate, vacant periods, occupancy rate, lease incentive
costs such as rent-free periods and other costs not paid by tenants. The
expected cash flows are discounted using risk-adjusted discount rates.
Among other factors, the discount rate estimation considers the quality
of a building and its location (prime vs secondary), tenant credit quality
and lease terms.
Significant increases/(decreases) in estimated rental value and rent
growth per annum in isolation would result in a significantly higher/
(lower) fair value of the properties. Significant increases/(decreases)
in long-term vacancy rate and discount rate (and exit yield) in isolation
would result in a significantly lower/ (higher) fair value..
All resulting fair value estimates for investment properties are included
in level 3. Refer note 39.
Notes:
a. Mindteck Employees Welfare Trust (‘Trust’)
Mindteck Employee Welfare Trust (the Trust) held 416,000
equity shares of the Company. The Trust acquired the shares,
with funds provided by the Company by way of loan to the Trust.
The Trust was set up with the objective of supporting employees
share-based compensation plan (ESOP). During the year ended
March 31, 2024, the existing ESOP Scheme was woundup
and shares held by the Trust were sold as permitted by SEBI
Regulation. The funds generated from sale during the FY 24 and
FY 25 were used to repay the loan to the Company.
During the year ended March 31, 2026 Rs. Nil (March 31, 2025
224,449) shares were sold and the proceeds were used for
repayment of loan Rs. Nil ( March 31, 2025 Rs. 30 lakhs).
The Company amended the objectives of the Mindteck
Employees Welfare Trust ('Trust') to include employee welfare
activities, following the winding-up of the ESOP Scheme 2020
administered by the Trust, effective from November 12, 2024.
As a result of this amendment, the Company has merged the
financials of the Trust with its Standalone Financial Statements,
effective November 12, 2024. Consequently, during the year
ended March 31, 2026 Rs. 37 lakhs (March 31, 2025 Rs. 18
lakhs) interest income earned on a fixed deposit held by the Trust,
is included in the Other Income of the Company's Standalone
Financial Statements. Total reserves as on March 31, 2026 of Rs.
635 lakhs (March 31, 2025 of Rs. 618 lakhs) are now part of the
MEWT Reserves in the Standalone Financial Statements and are
designated for the benefit of the Company's employees.
b. On April 01, 2008, the Company acquired 100% equity
in its fellow subsidiary ChendLe Holdings Limited, BVI
('ChendLe Holdings') including its wholly owned subsidiary
Primetech Solutions Inc., USA at an agreed valuation of USD
6,600,000 (approximately Rs 264,664,741) and the purchase
consideration was agreed to be settled by a fresh issue of the
equity shares of the Company to the shareholders of ChendLe
Holdings. The issue of equity shares to discharge the purchase
consideration has been recorded at a price of Rs 73.54 per
equity share, being the fair value of the equity shares issued as
per the valuation carried out by the independent valuer.
Of the total purchase consideration payable, 38,579 equity
shares (March 31, 2025: 38,579 equity shares) have been
reserved for allotment to certain shareholders of Chendle
Holdings, subject to the furnishing of Permanent Account
Number ('PAN') and other requirements by these shareholders.
The submission of PAN is a pre-requisite to complete the
allotment of shares. The Company is in the process of following
up with the shareholders of ChendLe Holdings to obtain the
PAN and upon receiving the PAN, the Company would allot the
remaining shares to these shareholders.
d. Terms/rights attached to equity and preference shares
The Company has two class of shares referred to as
equity shares having a par value of Rs 10 and cumulative,
non-convertible, redeemable preference shares having a par
value of Rs 100. Each holder of the equity share, as reflected in
the records of the Company as of the date of the shareholders
meeting, is entitled to one vote in respect of each share held
for aLt matters submitted to vote in the shareholders meeting.
The Company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual
General Meeting.
In the event of Liquidation of the Company, the hoLders of equity
shares wiLL be entitLed to receive the remaining assets of the
Company after distribution of aLL preferential amounts. However,
no such preferential amounts exists currently. The distribution
wiLL be in proportion to the number of equity shares heLd by the
sharehoLders.
Notes:
i. Capital reserve
The Company has created capital reserve in the earlier years.
ii. Securities premium
Securities premium is used to record the premium received on issue of shares. It is utilized in accordance with the provisions of the Companies Act,
2013.
iii. MEWT reserves
MEWT reserves includes accumulated reserves of the Trust,accuLmu[ated upto the amendment of the objectives of the Trust to include employee
welfare activities, following the winding-up of the ESOP Scheme 2020 administered by the Trust, effective from November 12, 2024 and
earnings on surplus in the trust.The funds are reserved for distribution to the employees in accordance with the terms of winding up and SEBI
regulations.
iv. Employee stock option reserve account
The Company has established various equity settled share based payment plans for certain categories of employees of the Company and
subsidiaries. Refer note 38 for further details on these plans.
On November 21, 2025, the Government of India notified provisions of the Code on Wages, 2019, the Industrial Relations Code, 2020, the
Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the "Labour
Codes"). These Labour Codes consolidate twenty-nine existing labour laws into a unified framework governing employee benefits during and
after employment.Among other changes, the Labour Codes introduce a uniform definition of wages and enhanced employee benefits, including
those relating to leave. The Company has assessed the financial implications of these changes, which have resulted in an increase in gratuity
liability arising from past service cost and an increase in leave liability, aggregating to Rs. 530 lakhs.Considering that the impact arising from
the enactment of the new legislation is non-recurring in nature, the Company has presented this incremental amount as "Impact of New Labour
Codes" under "Exceptional Item" in the Statement of Profit and Loss for the year ended March 31, 2026. The Company continues to monitor
developments related to the Labour Codes and will evaluate any further impact on the measurement of liabilities pertaining to employee benefits,
if applicable.
(B) The Compnay had accrued provision for material foreseable losses for a long term contract with respect to a customer. As at March 31, 2026,
the Company had assessed the balance revenue amounting to Rs. Nil (March 31, 2025: Rs. Nil) and balance costs to be accrued amounting to
Rs. Nil (March 31, 2025: Rs. 4 lakhs) for the commitment period, thereby recording provision amounting to Rs. 64 lakhs (March 31, 2025: Rs.
64 lakhs).
31. Earnings per share
Basic earnings/ (loss) per share (EPS) amounts are calculated by dividing the profit/ (loss) for the year attributable to equity holders of the Company
by the weighted average number of equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit/ (loss) attributable to equity holders of the Company by the weighted average number of
equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive
potential equity shares into equity shares.
On September 20, 2024, the Company has alloted 6,369,611 bonus shares of Rupee one each (fully paid up) in the proportion of 1 bonus shares
for every 4 fully paid up equity shares to eligible shareholders whose names appeared in the Register of Members as on September 20,2024, being
the record date fixed for this purpose, in accordance with approval received from the Members by way of e-voting, result of which was declared on
September 09,2024. The said bonus shares shall rank pari passu in all respects with the existing equity shares of the Company, including dividend.
As a result of the bonus issue, the paid up capital of the Company stands increased to Rs. 3,185 lakhs from Rs. 2,548 lakhs. Consequent to the above
increase in paid up capital, the earnings per share (Basic and Diluted) have been adjusted for all periods presented.
35. Employee benefits
A. Gratuity
The Company offers gratuity benefits to employees, a defined
benefit plan, gratuity plan is governed by the Payment of Gratuity
Act, 1972. Under gratuity plan, every employee who has completed
at least five years of service gets a gratuity on departure @15
days of last drawn salary for each completed year of service. The
scheme is partly funded with an insurance company in the form of
qualifying insurance policy.
The following tables set out the funded status of the gratuity plan
and the amount recognized in the Company's financial statements
as at and for the year ended March 31, 2026 and March 31, 2025:
(iv) Terms and conditions of transactions with related parties:
The sales to and purchases from related parties are made on
terms equivalent to those that prevail in arm's length transactions.
Outstanding balances at the year-end are unsecured and interest
free and settlement occurs in cash. There have been no guarantees
provided or received for any related party receivables or payables.
For the year ended March 31, 2026, the Group has not recorded
any impairment of receivables relating to amounts owed by related
parties (March 31, 2025: Rs. 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.
37. Segment information
In accordance with Ind AS 108, Operating segments, segment
information has been provided in the Consolidated Financial
Statements of the Company and therefore no separate disclosure
on segment information is given in these Standalone Financial
Statements.
38. Employee stock options
As at March 31, 2026, the Company has the following share-based
payment arrangements:
a. Mindteck Employee Stock Option Scheme 2005 (ESOP 2005)
During the year ended March 31, 2006, the Company
introduced the 'Mindteck Employees Option Scheme 2005'
('the Option Scheme 2005') for the benefit of the employees
of the Company and its subsidiaries, as approved by the
Board of Directors in its meeting held on July 04, 2005 and
the shareholders meeting held on July 29, 2005. The Option
Scheme 2005 provides for the creation and issue of 500,000
options that would eventually convert into equity shares of Rs
10 each in the hands of the employees. The options are to be
granted to the eligible employees at the discretion of and at the
exercise price determined by the Compensation Committee of
the Board of Directors. The options vest annually in a graded
manner over a three year period and are exercisable during a
maximum period of 5 years from the date of vesting.
During the year ended March 31, 2026 and March 31, 2025, the
Company has not granted any options. During the year ended
March 31, 2026 addition due to bonus issue Nil (March 31,
2025: 800 options).
b. Mindteck Employee Stock Option Scheme 2008 (ESOP 2008)
During the year ended March 31, 2009, the Company introduced
'Mindteck Employees Stock Option Scheme 2008' ('the Option
Scheme 2008') for the benefit of the employees of the Company
and its subsidiaries, as approved by the Board of Directors in its
meeting held on May 27, 2008 and the shareholders meeting
held on July 30, 2008. The Option Scheme 2008 provides
for the creation and issue of 1,200,000 options that would
eventually convert into equity shares of Rs. 10 each in the
hands of the employees. The options are to be granted to the
eligible employees at the discretion of and at the exercise price
determined by the Nomination & Remuneration Committee of
the Board of Directors. The options will vest after the expiry of
a period of twelve months from the date on which the options
are granted. The vesting term and the period over which the
options are exercisable is to be decided by the Nomination &
Remuneration Committee.
During the year ended March 31, 2026, the Company has
granted 70,000 options (March 31, 2025: 95,000). During the
year ended March 31, 2026 addition due to bonus issue Nil
(March 31, 2025: 62,049 options).
c. Mindteck Employee Stock Option Scheme 2014 (ESOP 2014)
During the year ended March 31, 2015, the Company introduced
'Mindteck Employees Stock Option Scheme 2014' ('the Option
Scheme 2014') for the benefit of the employees of the Company
and its subsidiaries, as approved by the Board of Directors in its
meeting held on May 29, 2014 and the shareholders meeting
held on August 14, 2014. The Option Scheme 2014 provides
for the creation and issue of 2,500,000 options that would
eventually convert into equity shares of Rs. 10 each in the
hands of the employees. The options are to be granted to the
eligible employees at the discretion of and at the exercise price
determined by the Nomination and Remuneration Committee
of the Board of Directors. The options will vest after the expiry
of a period of twelve months from the date on which the options
are granted. The vesting term and the period over which the
options are exercisable is to be decided by the Nomination and
Remuneration Committee.
During the year ended March 31, 2026 and March 31, 2025, the
Company has not granted any options. During the year ended
March 31, 2026 addition due to bonus issue Nil (March 31,
2025: 41,667 options).
40. Financial risk management
The Company has exposure to following risks arising from financial
instruments-
Ý credit risk
Ý market risk
Ý interest risk
Ý liquidity risk
a. 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 Company's risk management policies are
established to identify and analyse the risks faced by the Company,
to set appropriate risk limits and controls and to monitor risks and
adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the
Company's activities.
The Company's audit committee oversees how management
monitors compliance with the Company's risk management policies
and procedures and reviews the adequacy of the risk management
framework in relations to the risks faced by the Company. The
audit committee is assisted in its oversight role by internal audit.
Internal audit undertakes both regular and adhoc reviews of risk
management controls and procedures, the results of which are
reported to the audit committee.
b. Credit risk
Credit risk is the risk that counter party will not meet its obligations
under a financial instruments or customer contract leading to
a financial loss. The Company is exposed to credit risk from its
operating activities (primarily trade receivables and unbilled
revenue) from its financing activities including deposits with banks
and financial institutions.
(i) Trade and other receivables:
Credit risk is managed by each business unit subject to the
Company's established policy, procedures and control relating
to customer credit risk management. Outstanding customer
receivables are regularly monitored.
The impairment analysis is performed at each reporting date
on an individual basis for major customers. In addition, a large
number of minor receivables are grouped into homogeneous
groups and assessed for impairment collectively. The maximum
exposure to credit risk at the reporting date is the carrying value
of each class of financial assets. The Company does not hold
collateral as security.
(ii) Other financial assets and deposits with banks:
Credit risk on cash and cash equivalent (including bank
balances, fixed deposits and margin money with banks) is
limited as the Company generally transacts with banks and
financial institutions with high credit ratings assigned by
international and domestic credit rating agencies.
c. Market risk
Market risk is the risk that changes in market prices, such as interest
rates and foreign exchange rates, will affect the Company's income
and its holdings of financial instruments. The objective of market
risk management is to manage and control market risk exposures
within acceptable parameters.
Currency risk
Foreign currency risk is the risk that the fair value or future cash flows
of an exposure will fluctuate because of changes in foreign exchange
rates. The Company's exchange risk arises from its foreign operations,
foreign currency revenues and expenses, primarily in United States
Dollars ('USD'). The Company's exposure to the risk of changes in
foreign exchange rates relates primarily to the Company's operating
activities. The Company also has exposures to Great Britain Pound
('GBP'), Euro ('EUR), Malaysian Ringgit ('MYR') and Singapore Dollar
('SGD').
Sensitivity analysis
Every 1% increase or decrease of the respective foreign
currencies compared to functional currency of the Company
would cause the profit before tax in proportion to revenue to
increase or decrease respectively by 0.17% (profit before tax for
the year ended March 31, 2025 by 0.10%).
c. Interest rate risk
Interest rate risk is the risk that the future cash flows of a
financial instrument will fluctuate because of changes in market
interest rates. The Company's investments are primarily in fixed
rate interest bearing investments. Hence the Company is not
significantly exposed to interest rate risk.
d. Liquidity risk
Liquidity 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 the liquidity is to ensure, as far
as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the
Company's reputation.
The Company's principal sources of liquidity are cash and cash
equivalents and the cash flow that is generated from operations.
The Company believes that the cash and cash equivalents is
sufficient to meet its current requirements. Accordingly no liquidity
risk is perceived.
Exposure to liquidity risk
The table below details the Company's remaining contractual maturity
for its financial liabilities. The contractual cash flows reflect the cash
flows of financial liabilities based on the earliest date on which the
Company can be required to pay.
41. Capital management
For the purpose of the Company's capital management, capital
includes issued equity capital, securities premium and all other
equity reserves. The primary objective of the Company's capital
management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments
in light of changes in economic conditions, annual operating plans
and long-term and other strategic investment plans. In order to
maintain or adjust the capital structure, the Company may adjust
the amount of dividends paid to shareholders, return capital to
shareholders or issue new shares. The current capital structure
of the Company is equity based with no financing through
borrowings. The Company is not subject to any externally imposed
capital requirements.
No changes were made in the objectives, policies or processes
for managing capital during the years ended March 31, 2026 and
March 31, 2025.
43. Other Statutory Information
(i) The Company do not have any Benami Property
(ii) The Company do not have any charges or satisfaction which is
yet to be registered with ROC beyond the statutory period,
(iii) The Company do not have any transactions with companies
struck off
(iv) The Company have not traded or invested in Crypto currency
or Virtual Currency during the financial year
(v) The Company have 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 Group 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,
(vii) The Company have not 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.
44. The Company has entered into 'International transactions' with
'Associated Enterprises' which are subject to Transfer Pricing
regulations in India. The Company is in the process of carrying
out transfer pricing study for the year ended March 31, 2026 in
this regard, to comply with the requirements of the Income Tax
Act, 1961. The management of the Company is of the opinion
that such transactions with Associated Enterprises are at arm's
length and hence in compliance with the aforesaid legislation.
Consequently, this will not have any impact on the Standalone
Financial Statements, particularly on account of tax expense and
that of provision for taxation.
45. Events after reporting date
There are no significant events after the reporting period.
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