xiv) Provisions, Contingent Assets/ Contingent
LiabilitiesProvisions
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 economic benefits will be required to
settle the obligation and a reliable estimate can
be made of the amount of the obligation.
Contingent Liabilities
A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond
the control of the Company or a present obligation
that is not recognized because it is not probable
that an outflow of resources will be required to
settle the obligation.
A contingent liability also arises in extremely
rare cases where there is a liability that cannot
be recognized because it cannot be measured
reliably. The Company does not recognize a
contingent liability but discloses its existence in
the financial statements.
Contingent Assets
A contingent asset is a possible asset 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 entity.
The Company does not recognize a contingent
asset but discloses its existence in the financial
statements if the inflow of economic benefits is
probable
xv) Leases
The Company evaluates contracts at inception
to determine whether they contain a lease as
defined under Ind AS 116 - Leases.
A contract is, or contains, a lease if it conveys the
right to control the use of an identified asset for a
period of time in exchange for consideration.
Although the Company has been applying Ind
AS 116 since its mandatory adoption, this is the
first year in which the Company has recognised
a material lease arrangement in its financial
statements.
Accordingly, for contracts identified as leases, the
Company recognises a right-of-use (ROU) asset
and a corresponding lease liability at the lease
commencement date. The ROU asset is measured
at cost, comprising:
• The initial lease liability amount,
• Lease payments made at or before
commencement,
• Initial direct costs,
• An estimate of dismantling or restoration
costs,
• Less any lease incentives received.
The ROU asset is depreciated on a straight-line
basis over the lease term or the useful life of
the asset, whichever is shorter, and is subject to
impairment testing under Ind AS 36.
The lease liability is initially measured at the
present value of unpaid lease payments,
discounted using the Company's incremental
borrowing rate. Lease liabilities are remeasured
for changes in lease terms, indices, rates, or
estimates affecting residual value guarantees or
exercise of options. Any resulting adjustment is
made to the ROU asset or profit or loss if the
carrying amount of the ROU asset has been
reduced to zero.
The Company continues to apply the practical
expedients for:
• Short-term leases (lease term of 12 months
or less), and
• Leases of low-value assets,
by recognising the related lease payments as an
expense over the lease term.
xvi) Mine closure, site restoration and
decommissioning obligations:
An obligation for restoration, rehabilitation and
environmental costs arises when environmental
disturbance is caused by the development or
ongoing extraction from mines.
The company recognises unavoidable obligations,
legal or assumed, to restore the mines upon
exhaustion of reserves/end of lease period
whichever is earlier. The obligation is estimated
on the basis of cash flows expected to be incurred
as per applicable mining regulations.
The estimate of expenses are discounted at a
discount rate that reflects the current market
assessment of the time value of money and the
risks, such that the amount of provision reflects
the present value of the expenditures expected
to be required to be settle the obligation.
The company records the liability for final
reclamation and mine closure. The obligation is
recognised in the period in which the liability is
incurred.
The value of the provision is progressively
increased over time as the effect of discounting
unwinds creating an expense recognised as
financial expenses. Subsequent adjustments if
any to the obligation for changes in the estimated
cashflows/disbursement period/ discount rate is
modified prospectively.
xvii) Income Tax:
Income tax expense comprises current and
deferred income tax. Income tax expense is
recognized in the net profit in the statement of
profit or loss except to the extent that it relates
to items recognized in Other comprehensive
income.
Current income tax for current and prior periods
is recognized at the amount expected to be paid
to or recovered from the tax authorities, using the
tax rates and tax laws that have been enacted or
substantially enacted by the balance sheet date.
Deferred income tax assets and liabilities are
recognized for all temporary differences arising
between the tax bases of assets and liabilities and
their carrying amounts in the financial statements.
Deferred tax assets are generally recognized
for all deductable temporary differences to the
extent that it is probable that the taxable profits
will be available against which those deductable
temporary differences can be utilized. Deferred
tax assets are reviewed at each reporting date
and are reduced to the extent that is no longer
probable that related tax benefits will be realized.
Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantially
enacted by the end of the reporting period and
are expected to apply when the related deferred
income tax asset is realized, or the deferred
income tax liability is settled.
Current tax assets and tax liabilities are offset
where the entity has a legally enforceable right
to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability
simultaneously.
Where the Company is entitled to claim special
tax deductions for investments in qualifying
assets or in relation to qualifying expenditure,
the Company accounts for such allowances as tax
credits, which means that the allowance reduce
income tax payable and current tax expense.
Deferred tax relating to items recognised outside
statement of profit or loss is recognised outside
statement of profit or loss (either in other
comprehensive income or in equity). Deferred
tax items are recognised in correlation to the
underlying transaction either in OCI or directly in
equity.
A deferred tax asset is recognized for unclaimed
tax credits that are carried forward as deferred
tax assets.
Minimum Alternate Tax (MAT) Credit entitlement
Minimum Alternative Tax ('MAT') under the
provisions of the Income Tax Act, 1961 is
recognised as current tax in the statement of
profit and loss. The credit available under the Act
in respect of MAT paid is recognised as an asset
only when and to the extent there is convincing
evidence that the company will pay normal
income tax during the period for which the MAT
credit can be carried forward for set-off against
the normal tax liability. MAT credit recognised as
an asset is reviewed at each balance sheet date
and written down to the extent the aforesaid
convincing evidence no longer exists.
xviii) Employee Benefits:
Employee benefits includes short term employee
benefits, Post employment benefits, Other long¬
term benefits and Termination benefits.
Short term employee benefits:
The undiscounted amount of 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. These benefits include performance
incentive and compensated absences which are
expected to occur within twelve months after the
end of the period in which the employee renders
the related service.
Post employment benefits:
a) Defined contribution plans:
These benefits include Pension,
superannuation and Employee State
Insurance (ESI). Entity contributes at
statutorily prescribed minimum rates,
monthly to Provident fund, ESI and will have
no legal obligation to pay further contribution
if fund doesn't have sufficient assets to pay
all employee benefits relating to employee
service in current and prior periods. Whereas
yearly contribution is paid to Life Insurance
Corporation towards superannuation
Pension, monthly contributions are made in
the case of Provident Fund and ESI. Thus,
PF, Superannuation, ESI benefits are defined
contribution plans. These contributions are
recognized in statement of profit and loss by
way of charge against income.
b) Defined benefits plans:
Leave Absences and Gratuity Cost of
providing these benefits is determined using
projected unit credit method by actuary
at the end of each reporting period. Re¬
measurement, comprising actuarial gains
and losses, the effect of the changes to the
asset ceiling (if applicable) and the return
on plan assets (excluding net interest),
is reflected immediately in the balance
sheet with a charge or credit recognised in
other comprehensive income in the period
in which they occur. Re-measurement
recognised in other comprehensive income
is reflected immediately in retained earnings
and is not reclassified to profit and loss. Past
service cost is recognised in statement of
profit and loss when the plan amendment
or curtailment occurs. Gains or losses on
settlement of a defined benefit plan are
recognised when the settlement occurs.
Net interest is calculated by applying the
discount rate at the beginning of the period
to the net defined benefit liability or asset.
It has two components, one is service cost
and other is remeasurements.
Service cost comprises a) current service
cost including gains/ loss on curtailment or
settlements, b) past service cost in case of
plan amendment c) net Interest expense or
income. Remeasurements comprise actuarial
gains/losses, return on plan assets excluding
interest and effect of change in assets ceiling.
Service cost is recognized in statement of
profit or loss while remeasurements are in
other comprehensive income.
c) Compensated Absences:
The employees of the Company are entitled
to compensate absences. The employees
can carry-forward a portion of the unutilised
accrued compensated absence and utilise it
in
future periods or receive cash compensation
at retirement or termination of employment
for the unutilised accrued compensated
absence. The Company records an obligation
for compensated absences in the period in
which the employee renders the services
that increase this entitlement.
The Company measures the expected cost
of compensated absence based on actuarial
valuation made by an independent actuary
as at the balance sheet date on projected
unit credit method.
Compensated absences expected to be
maturing after 12 months from the date of
balance sheet are classified as non-current.
xix) Earnings per Share
The Company presents basic and diluted earnings
per share data for its ordinary shares.
Basic earnings per share is calculated by dividing
the profit or loss attributable to ordinary
shareholders of the Company by the weighted
average number of ordinary shares outstanding
during the year, adjusted for shares held. Diluted
earnings per share is determined by adjusting the
profit or loss attribute to ordinary shareholders
and the weighted average number of ordinary
shares outstanding, adjusted for shares held,
for the effects of all dilutive potential ordinary
shares.
xx) Financial Instruments:
Non-derivative financial instruments
Non-derivative financial instruments consist of:
Financial assets, which include cash and cash
equivalents, trade receivables, other advances
and eligible current and non-current assets;
Financial liabilities, which include long and short¬
term loans and borrowings, trade payables,
eligible current and non-current liabilities.
Non derivative financial instruments are
recognized initially at fair value including any
directly attributable transaction costs. Financial
assets are derecognized when substantial risks
and rewards of ownership of the financial asset
have been transferred. In cases where substantial
risks and rewards of ownership of the financial
assets are neither transferred nor retained,
financial assets are derecognized only when
the Company has not retained control over the
financial asset.
Subsequent to initial recognition, non-derivative
financial instruments are measured as described
below:
Cash and cash equivalents
Cash comprises cash on hand, in bank and
demand deposits with banks. Cash equivalents
are short term balances (with an original
maturity of three months or less from the date
of acquisition), highly liquid investments that are
readily convertible into known amounts of cash
and which are subject to insignificant risk of
changes in value
Loans and receivables
Loans and receivables are non-derivative financial
assets with fixed or determinable payments that
are not quoted in an active market. They are
presented as current assets, except for those
maturing later than 12 months after the reporting
date which are presented as non-current assets.
Loans and receivables are initially recognized at
fair value plus directly attributable transaction
costs and subsequently measured at amortized
cost, less any impairment losses. Loans and
receivables comprise trade receivables and other
assets.
The company estimates the un-collectability
of accounts receivable by analyzing historical
payment patterns, customer concentrations,
customer credit-worthiness and current
economic trends. If the financial condition of a
customer deteriorates, additional allowances may
be required.
Borrowings
Borrowings are initially recognized when a
Company becomes a party to the contractual
provisions subsequently measured at amortised
cost using the EIR method.
Trade and payable
Liabilities are recognized for amounts to be paid
in future for goods or services received, whether
billed by the supplier or not.
xxi) Cash Flow Statement:
Cash flows are reported using the indirect
method, whereby profit before tax 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.
xxii) Segment Information:
Identification of segments: An operating segment
is a component of the Company that engages
in business activities from which it may earn
revenues and incur expenses, whose operating
results are regularly reviewed by the company's
Chief Operating Decision Maker (“CODM”)
to make decisions for which discrete financial
information is available. The Company has
identified Managing Director and Executive
Director & Chief Financial Officer as CODM.
The Company's operating businesses are
organized and managed separately according to
the nature of products and services provided,
with each segment representing a strategic
business unit that offers different products and
serves different markets.
Allocation of common costs
Common allocable costs are allocated to each
segment according to the relative contribution of
each segment to the total common costs. Inter¬
segment transfers Inter-segment revenue has
been accounted for based on the transaction
price agreed to between segments which is based
on current market prices.
a) Segment Assets and Liabilities:
Segment assets include all operating assets
used by the segment and consist principally
of fixed assets, inventories, sundry debtors
and loans & advances less current liabilities.
Segment assets and liabilities do not include
investments, cash and bank balances, inter
corporate deposits, reserves and surplus,
borrowings, provision for contingencies and
income tax (both current and deferred).
b) Segment Revenue and Expenses:
Segment revenue and expenses are taken
directly as attributable to the segment.
It does not include interest income on
inter-corporate deposits, profit on sale of
investments, interest expense, provision for
contingencies and income tax.
Unallocated items
Revenue, expenses, assets and liabilities
which relate to the Company as a whole
and not allocable to segments on reasonable
basis have been included under ‘unallocated
revenue/expenses/assets/liabilities.
The Company prepares its segment
information in conformity with the
accounting policies adopted for preparing
and presenting the financial statements of
the Company as a whole.
Operating segment is reported in a manner
consistent with the internal reporting
provided to Chief Operating Decision Maker
(CODM)
xxiii) Events after the reporting period:
Adjusting events are events that provide further
evidence of condition that existed at the end of
the reporting period. The financial statements are
adjusted for such events before authorization for
issue.
xxiv) Prior Period Errors
Errors of material amount relating to prior
period(s) are disclosed by a note with nature of
prior period errors, amount of correction of each
such prior period presented retrospectively, to
the extent practicable along with change in basic
and diluted earnings per share. However, where
retrospective restatement is not practicable for
a particular period then the circumstances that
lead to the existence of that condition and the
description of how and from where the error is
corrected are disclosed in Notes to Accounts.
xxv) Dividend Distribution
Dividends paid (including income tax thereon)
is recognised in the period in which the interim
dividends are approved by the Board of Directors,
or in respect of the final dividend when approved
by shareholders.
2.1 Land includes compensatory afforestation land amounting to ^335.98 lakhs comprising 40.07 acres situated at Guledi
Village, Bheempur Mandal, Adilabad District, Telangana and 11.19 acres situated at Bember Village, Tanur Mandal,
Nirmal District, Telangana. These lands are proposed to be transferred to the Forest Department in lieu of the forest
land utilised for the Company's plant operations at Mattapalli Village, Mattampalli Mandal, Suryapet District, Telangana.
2.2 During the year, the Company recognised an impairment loss of Rs.1,467.86 lakhs on Plant and Machinery relating to
the Doors Division. Refer Note 47 on Discontinued Operations for further details.
2.3 The Company has constructed a grinding unit at Visakhapatnam on land leased from Tern Distilleries Private Limited,
a wholly owned subsidiary of the Company. The property, plant and equipment relating to the grinding unit were
capitalised during the year upon commencement of commercial operations.
2.4 Refer Note No.21.2 for details of Property, Plant and Equipment offered as security for the borrowing facilities availed
by the Company.
9.1. Includes unbilled revenue amounting to Rs.35.44 lakhs (Refer Note 27(e)).
9.2. The Company's trade receivables are pledged as security for the working capital facilities sanctioned by various banks.
Refer Note 21.2
9.3. There are no receivables due from Directors or other officers of the Company, or from firms or private companies in
which any Director is a partner, director, or member, as at the Balance Sheet date, except for balances arising in the
ordinary course of business and subject to the Company's normal credit terms. Refer Note 42 for details of receivables
outstanding from companies in which Directors are interested.
(a) Rights, preferences and restrictions attached to equity shares
The Company has one class of equity shares having a face value of Rs.10 each. Each holder of equity shares is entitled
to one vote per share. The equity shareholders are entitled to receive dividends as and when declared by the Company.
In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of
the Company after distribution of all preferential amounts, in proportion to their shareholding.
(i) 'Capital Reserve: Capital Reserve comprises capital subsidies received from the Government in earlier years.
(ii) 'Securities Premium: Securities premium represents the amount received by the Company in excess of the face value
of its equity shares. The utilisation of the securities premium account is governed by the provisions of Section 52 of the
Companies Act, 2013.
(iii) 'General Reserve: General reserve represents appropriations made out of retained earnings in earlier years in accordance
with the provisions of the Companies Act applicable at the relevant time. The reserve is available for utilisation in
accordance with the provisions of the Companies Act, 2013.
(iv) 'Retained Earnings: Retained earnings represent accumulated profits of the Company, net of distributions to
shareholders and transfers to reserves. Retained earnings are available for distribution to shareholders as dividend in
accordance with the provisions of the Companies Act, 2013.
(v) Other Comprehensive Income: 'This reserve represents cumulative remeasurement gains and losses arising on defined
benefit plans recognised through Other Comprehensive Income, net of related deferred tax. The balance in this reserve
is not reclassified subsequently to profit or loss.
21.2. Nature of Security, Terms of Repayment and Rate of Interest
Term Loans:
(i) Term loan from Axis Bank Limited amounting to Rs.198.08 lakhs (March 31, 2025: Rs.2,350.08 lakhs) was availed for
the Waste Heat Recovery (WHR) Project at Mattapally. The loan carries interest at MCLR-linked rates of 8.70% per
annum and is repayable in 20 structured quarterly instalments commencing from September 2021. The sanctioned loan
amount is Rs.6,725.00 lakhs and includes a moratorium period of two years.
(ii) Term loan from Axis Bank Limited amounting to Rs.975.00 lakhs (March 31, 2025: Rs.1,625.00 lakhs) was availed
for the modernisation of Line 1 at Mattapally. The loan carries interest at MCLR-linked rates of 8.70% per annum
and is repayable in 24 equal quarterly instalments of Rs.162.50 lakhs each commencing from December 2021. The
sanctioned loan amount is Rs.3,900.00 lakhs and includes a moratorium period of one year.
(iii) Term loan from Kotak Mahindra Bank Limited amounting to Rs.3,751.24 lakhs (March 31, 2025: Rs.4,798.10 lakhs) was
availed for Line 3 at Mattapally. The loan carries interest at MCLR-linked rates of 9.00% per annum and is repayable in
78 quarterly instalments commencing from May 2023. The sanctioned loan amount is Rs.7,500.00 lakhs and includes
a moratorium period of 1.5 years.
(iv) The Company had availed loans from Axis Bank Limited under the Emergency Credit Line Guarantee Scheme (ECLGS
2.0) notified by the Government of India in two tranches of Rs.2,500.00 lakhs and Rs.1,350.00 lakhs. The outstanding
balance as at March 31, 2026 is Nil (March 31, 2025: Rs.1,448.96 lakhs). The loans were repayable in 48 equated
monthly instalments after a moratorium period of 24 months from the date of disbursement and carried interest at
rates of 8.00% per annum and 7.85% per annum linked to the Repo Rate.
(v) The Company had availed a loan from HDFC Bank under the Emergency Credit Line Guarantee Scheme notified by
the Government of India. The outstanding balance as at March 31, 2026 is Nil (March 31, 2025: Rs.520.00 lakhs).
The loan was repayable in 48 equated monthly instalments after a moratorium period of 12 months from the date of
disbursement and carried interest at 9.00% per annum linked to the Repo Rate.
(vi) Term loan from HDFC Bank Limited amounting to Rs.9,000.00 lakhs (March 31, 2025: Rs.5,176.33 lakhs) was availed
for the Vizag Grinding Unit. The loan carries interest at 1M T-Bill linked rates of 7.00% per annum and is repayable in
28 quarterly instalments commencing from June 2026. The sanctioned loan amount is Rs.9,000.00 lakhs and includes
a moratorium period of two years.
(vii) The above loans are secured by a first charge on the fixed assets of the Company, ranking pari passu with other term
lenders, and further secured by a second charge on the current assets of the Company, except for the land referred to
in Note 2.1.
Loans repayable on demand from Banks:
(i) Cash credit facility from Axis Bank Limited amounting to Nil (March 31, 2025: Nil) carries interest at MCLR-linked rates
of 8.70% per annum. The sanctioned limit under the facility is Rs.2,000.00 lakhs.
(ii) Cash credit facility from HDFC Bank Limited amounting to Rs.3,258.04 lakhs (March 31, 2025: Rs.2,500.00 lakhs)
carries interest at MCLR-linked rates of 8.70% per annum. The sanctioned limit under the facility is Rs.7,500.00 lakhs.
(iii) Cash credit facility from State Bank of India carrying interest at MCLR-linked rates of 8.60% per annum. The sanctioned
limit under the facility is Rs.2,500.00 lakhs. The outstanding balance as at March 31, 2026 is Nil (March 31, 2025:
Rs.243.93 lakhs).
(iv) Cash credit facility from Kotak Mahindra Bank Limited carrying interest at MCLR-linked rates of 8.35% per annum. The
sanctioned limit under the facility is Rs.6,000.00 lakhs. The outstanding balance as at March 31, 2026 and March 31,
2025 is Nil.
(v) The above working capital facilities are secured by a first charge on the current assets of the Company, ranking pari
passu with other working capital lenders, and further secured by a second charge on the fixed assets of the Company,
except for the land referred to in Note 2.1.
Vehicle & Equipment Loans
Vehicle and equipment loans from various banks are secured by hypothecation of the respective assets financed, have
repayment tenures ranging from 35 to 47 months, and carry interest rates ranging from 8.25% to 9.00% per annum.
Deposits From Public
Public deposits represent unsecured deposits accepted from the public carrying interest rates ranging from 8.00% to 10.00%
per annum. The deposits are repayable on various maturity dates based on the respective dates of acceptance.
21.3. Statement Showing the differences of Book debts,stocks and creditors between the books of account and amount
reported in quarterly returns submitted to Banks
38. Employee Benefits
a) Provident Fund:
The Company contributes to the Employees' Provident Fund, a defined contribution plan administered by the Government.
Contributions are made at prescribed rates to the relevant authorities and are recognised as an expense in the Statement of
Profit and Loss in the period in which the related employee services are rendered. During the year, the Company recognised
provident fund contributions, including administrative charges, amounting to Rs.331.34 lakhs (Previous Year: Rs.381.85
lakhs).
b) Leave Encashment: The Company operates an unfunded leave encashment scheme for eligible employees in accordance
with its leave policy. The obligation towards compensated absences is actuarially valued at each reporting date using the
Projected Unit Credit Method in accordance with Ind AS 19, Employee Benefits. The liability recognised in the financial
statements represents the present value of the defined benefit obligation as determined by an independent actuary and is
classified into current and non-current portions based on the expected timing of settlement.
c) Gratuity:
The Company operates a funded gratuity scheme in accordance with the provisions of the Payment of Gratuity Act, 1972,
covering all eligible employees. Gratuity is a defined benefit plan payable to employees upon retirement, resignation, death,
disablement or termination of employment, subject to completion of the prescribed period of service. The Company's
obligation under the gratuity plan is determined based on an actuarial valuation carried out at the balance sheet date using
the Projected Unit Credit Method. The gratuity fund is administered through a group gratuity scheme with Life Insurance
Corporation of India (LIC), and the plan assets are held and managed by LIC."
The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and
the funded status and amounts recognised in the balance sheet for the plan.
40. Financial Instruments- Fair Values and Risk Management
a. Financial Instruments by Categories
The carrying amounts of financial assets and financial liabilities recognised in the financial statements and measured at
amortised cost are considered to be a reasonable approximation of their fair values due to their short-term nature or because
they bear interest rates that approximate current market rates.
The following tables show the carrying amounts and fair values of financial assets and financial liabilities by category. Fair
value information has not been disclosed for those financial assets and financial liabilities whose carrying amounts are a
reasonable approximation of their fair values.
The fair values of financial instruments measured at fair value are categorised into different levels in the fair value hierarchy
based on the inputs used in the valuation techniques, as follows:
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly.
Level 3: Inputs for the asset or liability that are not based on observable market data.
There were no financial assets or financial liabilities measured at fair value as at 31 March 2026 and 31 March 2025.
Accordingly, disclosure of fair value hierarchy levels is not applicable. Investments in subsidiaries are measured at cost in
accordance with Ind AS 27 and are therefore excluded from the fair value hierarchy disclosures.
b) Financial Risk Management:
The Company is exposed to various financial risks arising from its financial instruments. The key financial risks include market
risk, credit risk and liquidity risk. The Company's risk management framework seeks to identify, assess and mitigate these
risks in order to minimise their potential adverse impact on the Company's financial performance and financial position.
c) Management of Market Risk:
Market risk comprises foreign currency risk, interest rate risk and price risk. The Company's exposure to market risk is
primarily on account of foreign currency fluctuations arising from import transactions. The Company is not exposed to
significant interest rate risk as it does not hold material financial assets or financial liabilities subject to variable interest rates.
Further, the Company does not hold investments or financial instruments that are exposed to significant price risk.
d) Foreign Currency Risks:
The Company is exposed to foreign currency risk arising from various currency exposures, primarily with respect to United
States Dollars (USD) and Euro (EUR), relating to imports and other transactions denominated in foreign currencies. The
Company's exposure to foreign currency risk as at the end of the reporting period, expressed in Indian Rupees, is set out
in the table below. Management continuously monitors foreign currency exposures and takes appropriate measures to
minimise the impact of exchange rate fluctuations on the Company's financial performance.
e) Credit Risk:
Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations.
The Company's maximum exposure to credit risk arises principally from trade receivables, bank balances, deposits and other
financial assets.
The Company has established procedures to minimise credit risk arising from its business operations. The creditworthiness
of customers is evaluated based on their financial position, past payment experience and other relevant factors. Credit limits
are reviewed periodically and security deposits or other collateral are obtained from customers, where considered necessary.
The carrying amount of trade receivables represents the maximum exposure to credit risk in respect of such assets. The
Company places its bank balances and deposits only with reputable banks and financial institutions having high credit
ratings. Accordingly, no significant credit risk is considered to arise from such balances.
The Company assesses the expected credit loss associated with its financial assets at each reporting date. The management
considers all available information, including historical payment patterns, current financial conditions and forward-looking
factors that may affect the ability of customers to settle their obligations. Financial assets that are neither impaired nor past
due are considered to be of good credit quality.
The Company also holds security deposits from certain customers to mitigate credit risk. The maximum exposure to credit
risk at the reporting date is the carrying value of the respective financial assets recognised in the financial statements. Credit
risk on trade receivables and other financial assets is evaluated as follows:
f) Liquidity Risk
Liquidity risk is the risk that the Company may encounter difficulty in meeting its financial obligations as they fall due. The
Company's objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash
equivalents, cash flows generated from operations and available banking facilities.
The Company's liquidity requirements are monitored on a regular basis through cash flow projections and budgetary
processes. The principal sources of liquidity include cash and cash equivalents, cash generated from operations and available
working capital facilities, including cash credit and overdraft arrangements.
Short-term liquidity requirements primarily comprise trade payables, accrued expenses, employee benefit obligations and
other liabilities arising in the normal course of business. The Company maintains adequate cash balances and sanctioned
working capital facilities to meet its short-term operational requirements.
Long-term liquidity requirements are assessed periodically and are managed through internal accruals, long-term borrowings
and committed credit facilities. The table below summarises the maturity profile of the Company's financial liabilities based
on contractual undiscounted cash flows as at the reporting date.
41. Capital Management
The Company's objective while managing capital is to safeguard its ability to continue as a going concern, provide returns to
shareholders and benefits to other stakeholders, and maintain an optimal capital structure to minimise the cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and business
requirements. To maintain or adjust the capital structure, the Company may adjust dividend payments to shareholders,
return capital to shareholders, issue new equity instruments or dispose of assets to reduce borrowings.
The Company monitors its capital using a gearing ratio, which is calculated as net debt divided by total equity. Net debt
comprises total borrowings less cash and cash equivalents. Total equity includes equity attributable to the owners of the
Company as presented in the balance sheet.
In order to achieve the overall objective , the Company's capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
There are no changes in the objectives, policies or processes for managing capital during the years ended 31 March 2026
and 31 March 2025.
Managerial Remuneration
The remuneration paid and provided to the Executive Directors during the year is in accordance with the terms of their
respective appointments, as approved by the Board of Directors and the members of the Company, and complies with the
provisions of Sections 197 and 198 read with Schedule V and other applicable provisions of the Companies Act, 2013.
The Managing Director and the Executive Vice Chairman are eligible for commission in accordance with the terms of their
respective appointments. The commission provided to them and the commission provided to the Independent Directors for
the year are subject to the approval of the members at the ensuing Annual General Meeting.
The aggregate managerial remuneration, including the commission payable to the Managing Director, the Executive Vice
Chairman and the Independent Directors, is within the limits prescribed under Section 197 of the Companies Act, 2013,
computed in accordance with Section 198 thereof, and is in compliance with the provisions of Schedule V to the Companies
Act, 2013.
43. Indian Accounting Standard (Ind As-116): Disclosures On Leases are as Follows
a) Company as Lessee:
The Company has adopted lease accounting considering the lease agreements of certain leases. The Company recognises
right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The
cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease
liability. The right-of-use assets are depreciated using the straight-line method from the commencement date over the term
of useful life of right-of-use asset.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement
date of the lease. The Company has used a single discount rate to a portfolio of leases with similar characteristics.
The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have
a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated
with these leases are recognised as an expense on a straight-line basis over the lease term.
45: Other information as required under Scedule III of Companies Act, 2013:
i) 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.
ii) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property
iii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
iv) The Company has no Loans or Advances in the nature of Loans to specified persons that are Repayable on Demand or
without specifying any terms or period of repayment.
v) The Company had no transactions with Companies struck off under section 248 of the Companies Act, 2013 or section
560 of the Companies Act, 1956 during the year.
vi) The Company has 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)
vii) Based on the Company's assessment and evaluation, the impact of the Labour Codes as notified by the Government of
India on 21 November 2025 is not material. The Company continues to monitor the finalisation of the Central and State
Rules and other clarifications issued by the Government and will recognise the impact, if any, in the financial results in
the period in which the relevant provisions become effective.
viii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
ix) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
x) 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.
xi) The Company has not defaulted in the repayment of loans or borrowings or in the payment of interest thereon to any
bank or financial institution and has not been declared a wilful defaulter by any bank, financial institution, government
or government authority. Further, the Company has not taken any funds from any entity or person on account of or to
meet the obligations of its subsidiaries or joint venture. The term loans obtained by the Company during the year were
applied for the purposes for which such loans were obtained. Further, funds raised on a short-term basis have not been
used for long-term purposes by the Company.
46: Audit Trail
As per the requirements of Rule 3(1) of the Companies (Accounts) Rules 2014, the Company is required to use only such
accounting software for maintaining its books of accounts that have a feature of recording audit trail of each and every
transaction, creating an edit log of each change made in the books of account along with the date when such changes were
made and who made those changes within such accounting software. In respect of the accounting software used by the
Company, the audit trail was not enabled at certain master tables of database level to log any direct data changes. In respect
of such application and database, the Company has established and maintained an adequate internal control framework over
its financial reporting and based on its assessment, it has been concluded that the internal controls for the Year Ended 31
March 2026 were effective. The Company is in the process of system upgradation to meet the audit trail requirements for
the relevant masters at database level.
47: Discontinued Operations
The Company reviewed the operations of its Doors Division, including its capacity utilisation and financial performance.
In view of the continued losses incurred by the division and its sub-optimal capacity utilisation, the Board of Directors
approved the discontinuance of the Doors Division as part of its strategic business realignment and focus on the Company's
core operations.
Accordingly, the results of the said division have been presented as discontinued operations in accordance with Ind AS 105,
Non-current Assets Held for Sale and Discontinued Operations.
48: Exceptional Items
During the year ended March 31, 2026, the Company recognised the following exceptional items:
a) Provision for diminution in value of investment in Joint Venture
During the year, the Company reassessed the recoverability of its investment in the capital of its joint venture, a partnership
firm established for carrying on construction & allied activities business, in which the Company holds a 50% interest.
The joint venture has incurred continuous operating losses since commencement of operations and has not taken off as
envisaged at the time of investment. The partners after discussions and considering the level of operations, have initiated
the process for closure and dissolution of the partnership firm, which is currently in progress. During the year, considering the
losses and closure of operations, the management carried out an assessment of the recoverable amount of its investment.
Based on such assessment and applying the principles of prudence, the Company has recognised a provision for impairment
amounting to Rs.414.18 Lakhs (Previous Year: Rs. Nil), representing the entire carrying value of its capital investment in the
joint venture.
The provision has been recognised in the Statement of Profit and Loss under "Exceptional Items", and consequently the
carrying amount of the investment as at 31 March 2026 is Rs. Nil. The additional financial impact, if any, arising on dissolution
of the partnership firm will be recognised in the period in which the dissolution is completed and the Company's rights and
obligations are finally settled.
b) Provision towards Mineral Bearing Cess
Pursuant to the judgment of the Hon'ble Supreme Court relating to levy of Mineral Bearing Cess, the Company has recognised
a provision of Rs. 563.03 Lakhs towards Mineral Bearing Cess at Rs. 3 per metric tonne of limestone extracted, pertaining to
the period from FY 2018-19 to FY 2024-25. The said amount has been recognised as an exceptional item in the Statement
of Profit and Loss for the year ended March 31, 2026.
Accordingly, the total exceptional expense recognised during the year amounted to Rs. 977.21 Lakhs.
49 Segment Disclosures
The Company's operating segments are established in a manner consistent with the internal reporting provided to the
Chief Operating Decision Maker (CODM). The CODM monitors the operating results of the Company's business segments
separately for the purpose of making decisions regarding resource allocation and performance assessment.
Accordingly, segment information has been prepared in accordance with Ind AS 108 - Operating Segments. The accounting
policies adopted for segment reporting are consistent with those used in the preparation of the financial statements.
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