(m) Provisions & contingent liabilities
Provisions
A provision is recognised when the Company has
a present obligation (legal or constructive) as a
result of past event, it is probable that an outflow
of resources embodying economic benefits will be
required to settle the obligation and the amount can
be reliably estimated. These estimates are reviewed
at each reporting date and adjusted to reflect the
current best estimates.
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 recognised as a finance cost.
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 recognised because it is not probable that
an outflow of resources will be required to settle
the obligation or a reliable estimate of the amount
cannot be made. The Company does not recognize
a contingent liability but discloses its existence in the
financial statements unless the probability of outflow
of resources is remote.
(n) Leases
Company as a lessor
At inception of contract, the Company assesses
whether the Contract is, or contains, a lease. A
contract is, or contains, a lease if the contract
conveys the right to control the use of an
identified asset for a period of time in exchange
for consideration. At inception or on reassessment
of a contract that contains a lease component, the
Company allocates consideration in the contract to
each lease component on the basis of their relative
standalone price.
Leases in which the Company does not transfer
substantially all the risks and rewards of ownership
of an asset are classified as operating leases.
Rental income from operating lease is recognised
on a straight-line basis over the term of the relevant
lease.
Initial direct costs incurred in negotiating and
arranging an operating lease are added to the
carrying amount of the leased asset and recognised
over the lease term on the same basis as rental
income. Contingent rents are recognised as revenue
in the period in which they are earned.
Leases are classified as finance leases when
substantially all of the risks and rewards of
ownership transfer from the Company to the lessee.
Amounts due from lessees under finance leases
are recorded as receivables at the Company's net
investment in the leases. Finance lease income is
allocated to accounting periods so as to reflect a
constant periodic rate of return on the net investment
outstanding in respect of the lease.
(o) Segment Reporting
Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker.
(p) Revenue recognition
Revenue from contract with customers
Revenue from contracts with customers is
recognised when control of the goods or services
are transferred to the customer at an amount that
reflects the consideration to which the Company
expects to be entitled in exchange for those goods
or services.
Revenue from operations also consist of the revenue
received/ receivable from tenants for the Common
Area Maintenance (CAM) services provided as per
the terms of agreement with the tenants and third
parties, if any.
Contract assets are transferred to receivables when
the rights become unconditional. Contract asset is
the right to consideration in exchange for goods
or services transferred to the customer. Contract
liabilities are recognised as revenue as and when the
performance obligation is satisfied. Contract liability
is the entity's obligation to transfer goods or services
to a customer for which the entity has received
consideration from the customer in advance.
Leasing Income
License fee / lease income and income incidental
to it, arising from operating leases on investment
properties is accounted for on a straight-line basis
over the lease terms, unless there is another
systematic basis which is more representative of the
time pattern of the lease.
Other operating revenue comprises of car parking
charges which are recognised as income as per the
terms and conditions of the agreement with lessees.
Interest income
Interest income from debt instruments is
recognised using the effective interest rate
method.
Insurance claims and scrap sales are accounted
for in the books on an accrual basis.
(q) Dividend distribution to equity shareholders
The Company recognises a liability to pay
dividend to equity holders when the distribution
is authorised, and the distribution is no longer at
the discretion of the Company. A corresponding
amount is recognised directly in equity.
(r) Critical estimates and judgements
In the application of the Company's accounting
policies, management of the Company is
required to make judgements, estimates and
assumptions about the carrying amounts
of assets and liabilities that are not readily
apparent from other sources. The estimates
and associated assumptions are based on
historical experience and other factors that are
considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the
period in which the estimate is revised if the
revision affects only that period, or in the period
of the revision and future periods if the revision
affects both current and future periods. Detailed
information about each of these estimates
and judgements is included in relevant notes
together with information about the basis of
calculation for each affected line item in the
financial statements..
The areas involving critical estimates or
judgments are:
- Estimation of Useful life of Property, plant
and equipment and Investment property
(Note 2 and 3)
- Estimation of defined benefit obligation -
(Note 32)
- Estimates related to accrual of revenue
recognition - (Note 19)
- Estimation of current tax and deferred tax
expenses (Note 16 and 26)
- Estimation of provision and assessment of
the likely outcome of contingent liabilities
(Note 28)
- Estimation of fair value measurement of
financial assets and liabilities (Note 33)
Estimates and judgments are continually
evaluated. They are based on historical
experience and other factors, including
expectations of future events that may have
a financial impact on the Company and that
are believed to be reasonable under the
circumstances.
(s) Events after the reporting period
If the Company receives information after
the reporting period, but prior to the date of
approved for issue, about conditions that
existed at the end of the reporting period, it
will assess whether the information affects
the amounts that it recognises in its separate
financial statements. The Company will
adjust the amounts recognised in its financial
statements to reflect any adjusting events after
the reporting period and update the disclosures
that relate to those conditions in light of the
new information. For non-adjusting events
after the reporting period, the Company will not
change the amounts recognised in its separate
financial statements but will disclose the nature
of the non-adjusting event and an estimate of
its financial effect, or a statement that such an
estimate cannot be made, if applicable.
(t) Recent Pronouncement
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. For the year ended March 31, 2026, the
amendments to the standards that are notified
by the MCA, but not yet effective, up to the
date of issuance of the Company's financial
statements are disclosed below. The Company
will adopt these amendments to the standards,
when they become effective.
Standards notified but not yet effective
The new and amended standards that are
notified by the MCA, but not yet effective, up to
the date of issuance the Company's financial
statements are disclosed below. The Company
will adopt these new and amended standards ,
when they become effective.
Amendments to Ind AS 1- Classification of
Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants and Ind AS
10 Events after the Reporting Period
Ind AS 10 has been amended to remove the
previous treatment under which a lender's
post reporting date waiver—granted before the
financial statements were approved for issue—
of a breach of a material covenant in a long term
loan arrangement that occurred on or before the
end of the reporting period, resulting in the liability
becoming payable on demand at the reporting
date, was regarded as an adjusting event.
For annual reporting periods beginning on or after
April 01,2026, any breach of a covenant—whether
material or immaterial—occurring on or before the
reporting date will, in accordance with Ind AS 1,
require the related liability to be classified as
current, unless the lender has granted a waiver of
the breach on or before the reporting date and has
agreed not to demand repayment for at least 12
months after the reporting date as a consequence
of the breach. Such a waiver shall be treated as
an adjusting event.
The amendments are effective for annual
reporting periods beginning on or after April 01,
2026 retrospectively in accordance with Ind AS 8.
(iv) Contractual Obligations
Refer to note 29 for disclosure of contractual commitments for the purchase, construction or development of investment
property or its enhancements.
(v) Investment properties pledged as security
Refer to note 13 for information on investment properties and property, plant and equipment pledged as security by the
Company.
(vi) Fair value
As at March 31,2026 and March 31,2025, the fair values of the investment properties excluding capital work in progress
is INR 6,64,967.34 lakhs and INR 6,56,958.50 lakhs respectively. These valuations are based on valuations performed by
an independent valuer who is a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation)
Rules, 2017. The main inputs used are the lease rentals, rent escalations, benchmark lease rentals, running costs and
lease management charges. Fair valuation is based on discounted cash flow method. The fair value measurement is
categorised within level 3 fair value hierarchy.
(iii) Terms and rights attached to equity shares
The Company has only one class of equity shares having par value of INR 10/- per share. Each holder of equity shares is
entitled to one vote per share. 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 remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
(iv) The Company has not issued any equity shares as bonus or for consideration other than cash and has not bought back
any shares during the period of five years immediately preceding March 31, 2026.
(ii) The term loan has been secured by way of first and exclusive charge over immovable properties (including land and
buildings), lease receivable, escrow account and debt service reserve account of Nirlon Knowledge Park (NKP).
(iii) The rate of floating interest rate applicable to the term loan is 7.34% as at March 31, 2026 (March 31, 2025: 8.35%). The
interest is to be paid at the end of each month.
(iv) Bank loans contain certain debt covenants relating to loan to value ratio and debt service coverage ratio. The Company
has complied with all the required covenants attached to the bank loans as at March 31, 2026 and March 31, 2025. The
Company has also satisfied all other debt covenants prescribed in the terms of bank loan. Further, the Company has not
defaulted on any loans payable.
Notes:
(i) The Company recognizes revenue over time based on satisfaction of its performance obligation pertaining to common
area maintenance of properties given on lease and recovery of administrative costs. Customers are billed on a monthly
basis.
(ii) Revenue pertaining to maintenance of common area of properties given on lease and recovery of administrative costs has
been separately disclosed above. There are no other sources of revenue from contracts with customers and accordingly,
no further disaggregation of revenue is disclosed.
(iii) Transaction Price - Remaining Performance Obligation:
The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be
recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize
these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the
remaining performance obligation related disclosures for contracts as the revenue recognized corresponds directly with
the value to the customer of the entity's performance completed to date.
27. Earnings Per Share
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average
number of equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders 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.
Note:
The Central Excise and Service Tax Appellate Tribunal (CESTAT) has decided the matter in favour of the Company. However,
the service tax authorities has preferred appeals in High Court which is pending for disposal. Future cash flow in respect of the
above, if any, is determinable only on receipt of judgements / decisions pending with the relevant authorities.
* including penalty of '539.15 lakhs and excluding interest as payable
29. Commitments
Capital Commitments
Capital expenditure (net of advances) contracted for at the end of the reporting period but not recognised as liabilities is as
follows -
30. Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
Decision Maker (“CODM”) of the Company. Executive Director and Chief Executive Officer of the Company has been
identified as CODM who is responsible for allocating resources and assessing performance of the operating segments.
The Company has determined ""licensing of investment properties"" as a reportable segment as evaluated by the CODM
for allocation of resources and assessing the performance. There are no other reportable segment as per Ind AS 108 -
Operating Segments. All the assets of the Company and source of revenue of the Company is within India and hence,
no separate geographical segment is identified. Revenue from four customers, for the year ended March 31, 2026
amounting to ' 45,426.10 lakhs (March 31, 2025: ' 42,366.26 lakhs) with whom the Company has entered into leasing
arrangements accounts for more than 10% of the total revenue for the year then ended.
D. Terms and conditions of transactions with related parties:
The transactions with 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. Transactions relating to dividends were
on the same terms and conditions as applied to other shareholders. For the year ended March 31, 2026, the Company
has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2025: INR 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.
32. Employee benefits
The Company contributes to the following post-employment plans:
I) Defined contribution plans
The expense recognised during the year towards defined contribution plan -
II) Defined benefit plans
Gratuity
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination
is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of
years of service. The gratuity plan is an unfunded plan.
Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit
obligation and the plan assets as at balance sheet date:
Risk exposure
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed
below:
- Interest rate risk : A decrease in the bond 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 both during and after 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.
(iv) The weighted average duration of the defined benefit obligation is 4.16 years (March 31, 2025 - 5.84 years).
III) Other employee benefits
The liability for compensated absences as at March 31,2026 is ' 25.38 lakhs (March 31,2024'23.82 lakhs).
33. Fair Value Measurements
A. Accounting classification and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels
in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at
fair value if the carrying amount is a reasonable approximation of fair value.
B. Measurement of fair value
*The fair values of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1. Fair value of cash and cash equivalents, other bank balances, trade receivables, other current financial assets,
trade payables, security deposits from licensees and other current financial liabilities approximate their carrying
amounts largely due to short term maturities of these instruments.
2. The fair values of the Company's interest-bearing borrowings are determined by using discounted cash flow method
using discount rate that reflects the borrowing rate as at the end of the reporting period. The own non-performance
risk as at March 31, 2026 and March 31, 2025 was assessed to be insignificant
. C. Fair value hierarchy
The fair value of financial instruments as referred to 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).
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
During the year there were no transfer between level 1 & level 2 and no transfer into & out of level 3 fair value
measurements.
34. Financial risk management
The Company's Board of Directors have overall responsibility for the establishment and oversight of the Company's risk
management framework. The Board of Directors have established the Risk Management Committee, which is responsible
for developing and monitoring the Company's risk management policies. The Committee reports regularly to the Board
of Directors on its activities. The Company's financial risk management is an integral part of how to plan and execute its
business strategies.
The Company has exposure to the following risks arising from financial instruments:
• Credit risk
• Liquidity risk and
• Market risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Company's trade and other receivables. The
carrying amounts of financial assets represent the maximum credit risk exposure.
i. Trade receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However
credit risk with regards to trade receivable is not significant for the Company as the Company has 3 to 12 months of
rentals as deposit from the licensees.
ii. Cash and bank balances
The Company held cash and cash equivalent and other bank balance of ' 29,777.99 lakhs as at March 31,2026 (March
31, 2025: ' 17,393.60 lakhs). The same are held with banks and financial institutions with good credit rating. Also, the
Company invests its short term surplus funds in bank fixed deposit which carry no mark to market risks for short duration,
therefore does not expose the Company to credit risk.
iii. Other financial assets
The Company has held other financial assets which majorly comprise of the security deposits, margin money held with
banks and recoverable from related parties. The margin money held is with the banks and and financial institution with
good credit rating. The security deposits are held with reputed power distribution company and municipal corporation for
water supply, therefore does not expose the Company to credit risk.
(B) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity
is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis
of expected cash flows.
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross
and undiscounted, and include contractual interest payments.
Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate
risk), will affect the Company's income. The objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return.
(i) 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 is very minimal. There are no foreign
currency payables or receivable as at the end of each reporting period for which Company is exposed to foreign currency risk.
The Company closely tracks and observes the movement of foreign currency with regards to INR and also forward cover rate. The
Company decides to cover or keep the foreign currency exposure open based on the above.
(ii) Cash flow and fair value 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 exposure to the risk of changes in market interest rates relates primarily to the Company's long term debt
obligation at floating interest rates.
35. Capital management
a. Risk Management
For the purpose of Company's capital management, capital includes issued equity share capital, securities premium, all
other equity reserves attributable to the equity shareholders of the Company and borrowings. The primary objective of
the Company's capital management is to ensure that it maintains an efficient capital structure and maximises 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 or issue new shares. No changes were made
in the objectives, policies or processes for managing capital during the year ended March 31, 2026 and March 31,
2025.
The Company monitors capital using a ratio of 'adjusted net debt' to 'equity'. For this purpose, adjusted net debt is defined
as interest-bearing loans and accrued interest thereon less cash and bank balances. Equity comprises all components
of equity including share premium and all other equity reserves attributable to the equity share holders.
37. Other statutory information
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
(ii) The Company did not have any transactions with struck off companies.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other persons or entities, 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 has not received any fund from any persons or entities, including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961, such
as, search or survey or any other relevant provisions of the Income Tax Act, 1961
(viii) The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and/ or
related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are
repayable on demand, or without specifying any terms or period of repayment.
(ix) The Company is not required to file quarterly returns or statements of current assets with banks.
(x) The Company has used the borrowings for the purpose for which it was taken.
38. Maintenance of audit trail and back-up of books of accounts
The Company has used Microsoft SQL, an accounting software, for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software, except that audit trail feature is not enabled at the database level, viz. fa_current, which is a
non SaaS application hosted inhouse, insofar as it relates to the said accounting software. Further no instance of audit
trail feature being tampered with was noted in respect of the said software. Additionally, the Company has recorded and
preserved the audit trail to the extent it was enabled and recorded for respective years.
The Company is maintaining proper books of accounts as required by the law and the back-up of books of accounts is
performed on a daily basis on server located in India.
39. On November 21, 2025, the Government of India notified four new Labour Codes replacing 29 existing labour laws. The
Company has assessed the incremental financial impact arising from these regulatory changes and has recognized
an amount of INR 6.08 Lakhs towards past service cost for gratuity and leave encashment due to the changes in the
definition of the wages under “Employee Benefits Expense” in the financial statements.
40. As per the applicable Information Technology and Information Technology Enabled Services (IT/ITES) Policy-2003, the
Company is required to lease out 2% of the total Gross Leasable Area (GLA) for new leasable area constructed after FY
2022-23, to eligible start-ups at a concessional rental rate. The Company is under the process to fulfil this obligation.
41. Significant events after the reporting period
There were no significant adjusting events that occurred subsequent to the reporting period.
42. Approval of financial statements
The financial statements were approved for issue by the Board of Directors on May 25, 2026.
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