C. Terms/ rights attached to equity shares
The company has one class of equity shares issued having a par value of INR 10 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 the shareholding.
As per records ofthe Company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
G. Equity shares movement during the 5 years preceding March 31, 2026 Equity shares extinguished on buy-back
The Company bought back 5,288 equity shares for an aggregate amount of Rs. 84.61 lakhs being 0.84% of the total paid up equity share capital at Rs. 1,600 per equity share. The equity shares bought back were extinguished on March 19, 2021. Otherwise there are no bonus issues, no shares issued for consideration other than cash.
Nature and Purpose of other reserves
1. Capital Redemption Reserves - Capital Redemption Reserve was created for buy - back of shares and can be utilised for issuance of fully paid up bonus shares.
2. General Reserve - General Reserve is created out of profits earned by the company by way of transfer from surplus in the statement of profit and loss. The company can use the reserve for payment of dividend and issue of fully paid-up and not paid up bonus shares.
3. Retained Earnings: Retained earnings are the profits that the company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.
4. Equity investments through other comprehensive income: The fair value change of the equity instruments measured at fair value through other comprehensive income is recognised in Equity instruments through other comprehensive income. Upon derecognition, the cumulative fair value changes on the said instruments are not reclassified to statement of profit and loss.
5. Remeasurement of defined benefit obligations: Represents actuarial gains and losses arising on remeasurement of defined benefit plans recognised in Other Comprehensive Income in accordance with Ind AS 19. The balance in the reserve is transferred to retained earnings and is not reclassified to profit or loss.
The estimate of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotions and other relevant factors.
Exposure to Risks:
These plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.
Interest risk: A decrease in the Government Securities (G-Sec Bonds) interest rate will increase the plan liability.
Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants during their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.
Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.
B. 2 Valuation inputs and relationship to fair value
'The fair value is determined based on valuation reports / recent transactions including potential transactions within a reasonable period to the balance sheet date.
C. Fair value of Financial Instruments measured at amortised cost :
Due to the short-term nature of cash and cash equivalents and the short-term maturities of trade receivables, loans, other financial liabilities and assets the management considers that the carrying amount of assets and liabilities recognised at amortised cost in financial statements is approximate to their fair value.
The fair value of financial instruments as referred to in note (A) and (B) above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].
NOTE 40
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive directly from its operations. The Company also enters into derivative transactions.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed by the senior management in accordance with the Company’s policies and risk objectives. All derivative activities for risk management purposes are carried out by professionals who have the appropriate skills, experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken.
(A) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types ofrisk: interest rate risk, foreign currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings and derivative financial instruments.
The sensitivity analyses in the following sections relate to the position as at 31 March 2026 and 31 March 2025.
The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of hedge designations in place at 31 March 2026. The sensitivity analysis for equity price risk has been prepared on the basis of the fair value of the equity investments carried as FVTPL (under current investments) and basis change in equity price.
The analyses exclude the impact ofmovements in market variables on the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets.
The following assumptions have been made in calculating the sensitivity analyses:
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2026 and 31 March 2025.
(a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s does not have any material exposure to changes in market interest rates.
(b) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue is denominated in a foreign currency).
(2) Foreign currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency derivatives. The impact on the Company’s pre-tax equity is due to changes in the fair value of forward exchange contracts designated as cash flow hedges and net investment hedges. The Company’s exposure to foreign currency changes for all other currencies is not material.
(c) Equity price risk
The company carries a significant amount of investments held as FVTPL (under current investments) which are affected by swings in the equity price and yield in bonds in the market. The risk of equity price changes are managed by the company by closely monitoring the market position and accordingly determining the entry and exit into the markets from time to time and also by having a diversified portfolio of investments.
The prices ofagricultural commodities are subject to fluctuations due to various factors. In the ordinary course ofbusiness, the company is exposed to commodity price risk to the extent its open sales are not balanced by inventory. The company has in place in a risk management policy to manage such risk by having conscious limits on the sales committed for future periods for which production is yet to be completed and inventory is in place.
(B) Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.
(a) Trade receivables
Customer credit risk is managed as per the Company’s established policy, procedures and control relating to customer credit risk management. Credit limits are set with approvals on the basis of the defined policies. Outstanding customer receivables are regularly monitored and exposures are kept within the credit limits fixed for each customer.
Excessive risk concentration
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments affecting a particular industry.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on exchange losses historical data. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.
(b) Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty.
The Company’s maximum exposure to credit risk for the components of the balance sheet at 31 March 2026 and 31 March 2025 is the carrying amounts as mentioned in Notes.
The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to current investments which are highly liquid to meet any liquidity needs and also has adequate undrawn credit facility from its bankers.
NOTE 41
CAPITAL MANAGEMENT
For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves. The primary objective of the Company’s capital management is to maximize the shareholder value.
The Company manages its capital structure and makes adjustments in light ofchanges in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by fund attributable to Equity Shares Holders. The company includes within net debt, interest bearing loans and borrowings less cash and short-term deposits, excluding discontinued operations.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2026 and 31 March 2025.
NOTE 42
SOCIAL SECURITY CODE 2020
The Government of India notified on November 21, 2025, four Labour Codes - the Code of Wages 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating existing labour laws. Based on management’s assessment, the Company’s existing employee compensation structures and benefit practices are largely aligned with the requirements of the Labour Codes and hence not expected to have material impact on the financial results for the period under review. The Company will continue to monitor developments relating to implementation of the Labour Codes and evaluate any impact, if any, in future periods.
NOTE 44
AUDIT TRAIL NOTE
The Company has used accounting software to maintain its books of account for the financial year ended March 31,2026 which
has feature of recording audit trail (edit log) facility at application level, however, the audit trail (edit log) feature at the database level
has not been enabled. The audit trail at application level were not tampered with during the period and have been duly preserved.
NOTE 45
OTHER STATUTORY INFORMATION
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the company to holding any benami property.
(ii) The company has searched transactions with Struck-off companies by comparing company’s counter parties with publicly available database of struck of companies through a manual name search. Based on such a manual search, no party identified to be reported in the financial statements.
(iii) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
(iv) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(v) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered, disclosed as income during the year in the tax assessments under the income tax act, 1961 (such as, search or survey or any of the relevant provisions of the Income Tax Act, 1961.
(vi) The Company has in respect of the investments made, complied with no of layers as defined under section 2(87) of the Companies Act, 2013.
(vii) The Company has nothing to report on compliance with approved Scheme(s) ofArrangements.
(viii) The Company has not borrowed funds from banks or financial institutions for any specific purpose other than as disclosed in the financial statements and accordingly the disclosure on utilization is not applicable.
(ix) The company has done registration of charges or satisfaction, if any with ROC within the statutory period during the year.
NOTE 47 DIVIDENDS
Dividends paid during the year 2025-26 represent final dividend of300% declared for the financial year 2024-25 amounting to Rs.186.62 lakhs.
The dividends declared by the Company are in Indian Rupees and are based on the profits available for distribution as reported in the statutory financial statements of the Company. Subsequent to March 31, 2026, the Board of Directors of Company have proposed a final dividend of Rs. 20 per share (200%) in respect of financial year 2025-26. The proposal is subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of approximately Rs. 124.41 Lakhs.
NOTE 48
EXCEPTIONAL ITEM
There is no exceptional item in the current year ended 31st March 2026. During the year ended 31st March 2025, Rs.95 lakhs of provision towards employee benefits for past periods has been recognised based on regulatory decisions and disclosed as exceptional item.
NOTE 49
Figures for the previous periods have been regrouped / reclassified to conform to the classification of the current period.
|