P. Provisions & Contingencies
A provision arising from claims, litigation, assessment, fines, penalties, etc. is recognised when the Company has a present
obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These are
reviewed at each balance sheet date and adjusted to reflect current management estimates. Contingent liabilities are disclosed
in respect of possible obligations that have arisen from past events and the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise. When there
is a possible obligation or present obligation where the likelihood of an outflow is remote, no disclosure or provision is made.
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. A contingent asset is disclosed,
where an inflow of economic benefits is probable.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the
receivable is recognized as an asset, if it is virtually certain that reimbursement will be received and the amount of the receivable
can be measured reliably.
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.
Q. Income Taxes
Income tax comprises current tax and deferred tax. Income tax expense is recognized in the statement of profit and loss except
to the extent it relates to items directly recognized in equity or in other comprehensive income.
Current tax
Current tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation
authorities based on the taxable income for the period. The tax rates and tax laws used to compute the current tax amount are
those that are enacted or substantively enacted by the reporting date and applicable for the period. The Company offsets current
tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it
intends either to settle on a net basis or to realize the asset and liability simultaneously.
Deferred tax
Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for deductible
and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in standalone
financial statements, except when the deferred tax arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.
Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
Deferred tax liabilities are recognized for all taxable temporary differences.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized
or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
(ii) Contractual Obligations and restrictions
(a) In respect of property situated at Mandideep, Madhya Pradesh, The MP High Court vide its order dated 17th January, 2024
has awarded an order in favour of MP Industrial Development Corporation (MPIDC). Accordingly leasehold agreement
dated 26th May, 1982 for 99 years has been cancelled and the land has been handed over to MPIDC. The carrying amount
of ' 2.53 lakhs in leasehold land had been written off during the FY 2023-24. The same was kept as security against the
facility obtained by company in earlier years from Indian bank with which the legal dispute is going on as per Note No. 37.
(b) The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase,
construct or develop investment properties or for repairs, maintenance and enhancements.
(iii) Leasing arrangements
One of the investment property is leased under non-cancellable operating lease with rental payable yearly for a period of 29 years
and 11 months. Minimum future lease payments receivable under non-cancellable operating lease of investment property are as
follows-
Estimation of fair value
The company obtains independent valuations for its investment properties at least annually. The best evidence of fair value is
current prices in an active market for similar properties. Where such information is not available, the company considers information
from a variety of source including:
- Current prices in an active market for properties of different nature or recent prices of similar properties in less active
markets, adjusted to reflect those differences
- Capitalised income projections based upon a property’s estimated net market income and a capitalisation rate derived from
an analysis of market evidence
The fair values of investment properties have been determined by an accredited registered valuer as defined under rule 2 of
Companies (Registered Valuers and Valuation) Rules, 2017, holding the recognised and relevant professional qualification and
has recent experience in the location and category of the investment property being valued. The main inputs used are the local
enquiries and prevailing market trends adjusted for location, size, utility, condition and other factors having influence over the fair
value. All resulting fair value estimates for investment properties are included in level 3.
(c) Right, preference and restrictions attached to equity shares:
The Company has only one type of equity shares having par value of ' 10 each per share. All shares rank pari passu with respect
to dividend, voting rights and other terms. Each shareholder is entitled to one vote per share. The equity shareholders are entitled
to dividend rights according to their paid up portion of the share capital. The dividend proposed, if any, by the Board of Directors
is subject to approval of shareholders in the ensuing Annual General Meeting. The repayment of equity share capital in the event
of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity
shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion
to their shareholding.
I. Gratuity
The Company operates an unfunded gratuity plan. Every employee is entitled to a benefit equivalent to fifteen days salary
last drawn for each completed year of service in line with the Payment of Gratuity Act, 1972 or Company scheme whichever
is beneficial. The same is payable at the time of separation from the Company or retirement, whichever is earlier. The
benefits vest after five years of continuous service.
a. The liability is determined based on actuarial valuation using the Projected Unit Credit Method as at the balance sheet
date, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation.
b. The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining
the present value of the obligation under defined benefit plan, is based on market yields on Government securities as at
the balance sheet date
c. Actuarial gains and losses are recognised immediately in other comprehensive income in Statement of profit and loss.
Gains or losses on the curtailment or settlement of any defined benefit plan are recognised when the curtailment or
settlement occurs.
SEGMENT INFORMATION
39 For management purposes, the company is organised into business units based on its products and services and has three reportable
segments, as follows:
- Trading segment comprise of trading of goods/commodities
- The real estate segment which comprise of activities in the real estate sector including development of real estate, trading of real
estate assets etc.
- The investment segment comprise of extending in form of intercorporate deposits of the surplus funds, investment in equity
instruments and other securities
- Unallocable segment comprise of activities which can not be allocated to any of the above three segments and none of the
activities meet the quantitative thresholds to produce a reportable segment. The source of revenue comprise majorly of interest
income on fixed deposits and miscellaneous income not allocable to reportable segments.
No operating segments have been aggregated to form the above reportable operating segments
The fair value of the financial assets and liabilities is determined 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 management assessed that fair value of trade receivables, trade payables, cash and cash equivalents and other bank balances,
other financial assets and other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments and the transactions being entered into at arm’s length. In respect of loans, the fair value equals the carrying value as the
risk management mechanism established by the company indicates that no credit losses in the value of these loans. The fair value of
lease liabilities is also considered to be equal to its book value.
The fair value of investments in mutual fund is determined on the basis of NAV of mutual fund declared on the last day of the financial
year. The fair value of the equity instruments measured at FVTOCI is determined on the basis of the valuation report of an independent
valuer who determines the value as per the financials of the investee, use of available fair values of the investee’s assets, assumptions
suitable to the method of valuation adopted and key data from the management of the investor for valuation purposes as obtained
from the investee.
42 FAIR VALUE HIERARCHY
Level 1 - Quoted prices (unadjusted) 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 (i.e. as
prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The following table presents the fair value measurement hierarchy of financial assets and liabilities measured at fair value on recurring
basis as at 31st March, 2026 and 31st March, 2025
There have been no transfers among Level 1, Level 2 and Level 3 during the year ended on 31 st March, 2026 or on 31st March 2025.
A one percent change in the unobservable inputs used in fair valuations of level 3 assets does not have a significant impact in its
value.
The fair value of investments in mutual fund is determined on the basis of NAV of mutual fund declared on the last day of the financial
year. The fair value of investment property disclosed in financial statements is determined based on the valuation report from an
independent valuer. The determination of the valuation by the valuer is based on level 3 inputs like present market circle rates,
location of the property, local enquiries, information from the local property brokers, latest market transactions etc. The fair value of
the equity instruments measured at FVTOCI is determined on the basis of the valuation report of an independent valuer who determines
the value as per the financials of the investee, use of available fair values of the investee’s assets, assumptions suitable to the method
of valuation adopted and key data from the management of the investor for valuation purposes as obtained from the investee.
43 FINANCIAL RISK MANAGEMENT
The Company’s principal financial assets include investment in equity instruments and mutual funds, Inter-corporate deposits, trade
receivables, other receivables and cash & bank balances.
The Company’s principal financial liabilities comprise trade payables, creditor for expenses and other financial liabilities. These other
financial liabilities mainly comprise of creditors for expenses and employee benefits payable.
The Company’s activities expose it to credit risk and liquidity risk. The company is not exposed to any market risk, neither in form of
interest rate risk as the debt instruments issued by the company (i.e. intercorporate deposits) bear a fixed rate of interest as per the
inter-corporate deposit agreements nor any foreign exchange risk. The different types of risk the company is exposed to are as
follows:
(i) Credit risk
Credit risk is the risk that customer or counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company’s significant credit risk concentration is in its trade receivables and loans given [i.e.
intercorporate deposits (ICD)] and interest receivable thereon aggregating to ' 571.79 Lakhs as at March 31,2026 i.e. 2.33%
(' 524.95 Lakhs as at March 31, 2025 i.e. 2.15%). The objective of managing counter party credit risk is to prevent losses in
financial assets. The Company assesses the credit quality of the ICD parties on regular basis by analysing their default pattern,
reviewing annual financial performance and creditworthiness as evident from their financial statements. The company regularly
assesses the increase in risk of default since initial recognition. The company considers a default of more than 6 months as an
indicator for increased risk of default requiring the assessment of expected credit losses and resulting impairment, if any. The
company uses a provision matrix to compute the expected credit losses (ECL) for trade receivables. The provision matrix takes
into account internal and external credit risk factors and the company’s historical experience for customers.
However, as at the date of balance sheet all parties were regular in meeting their contractual obligations and none of the financial
assets are credit impaired. Credit risk on cash & cash equivalents and other bank balances is limited as the company holds these
deposits with scheduled banks with high credit ratings.
Investments are primarily in equity instruments of companies. The management regularly values the investments from independent
professional valuers to determine any impairment in the value of investments. Further, the company invests on short term basis
in mutual funds having high credit rating from domestic credit rating agencies.
(ii) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The company does
not have any significant financial liability as at March 31,2026 or March 31,2025 and Company has enough liquid funds in the
form of cash and cash equivalents to meet its financial obligations as and when they become due. The Company manages its
liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.
As at March 31 2026, the company had a working capital of ' 22827.66 lakh (Previous year ' 17851.92 lakh). Further, the
company has substantial pool of highly liquid financial assets like cash & cash equivalents, trade receivables and short term
investments in mutual funds aggregating to ' 267.48 lakh (Previous year ' 1709.53 lakh) as against the total current liabilities of
' 440.51 lakh (Previous year ' 1043.15 lakh) which clearly establishes very strong liquidity position of the company.
(Rupees Five crore seventy one lakhs seventy eight thousand six hundred forty one only). The Company has assessed the recoverability
of the aforesaid ICD. There is complete absence of any repayment of principal or interest, and there is overall uncertainty prevailing
as at the Balance Sheet date for repayment of principal and interest. Considering the aforesaid factors and consistent with the
principle of prudence, the management of the Company has decided to make a full provision of ' 5,71,78,641/- (Rupees Five crore
seventy one lakhs seventy eight thousand six hundred forty one only) towards the said ICD including the interest receivable thereon.
The provision has been disclosed as an Exceptional Item in the Statement of Profit and Loss for the year ended 31st March 2026, as
it is significant in size and non-recurring in nature. The Company continues to pursue all available remedies for recovery of the said
amount.
46 ADDITIONAL REGULATORY INFORMATION
(i) The company has not granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties
(as defined under Companies Act, 2013,) either severally or jointly with any other person.
(ii) The company has no borrowing from banks or financial institutions on the basis of security of current assets.
(iii) The company has not any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560
of Companies Act, 1956.
(iv) Registration of charges or satisfaction with Registrar of Companies (ROC)The company has following open charges with
Registrar of Companies(ROC) and there is no outstanding liability in respect of such charge.The company is taking all the
possible steps in satisfaction of the charge and has submitted the indemnity bond with ROC for removal of the charge.
(v) The Company has no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the
tax assessments under the Income Tax Act, 1961 (43, 1961) during the year.
(vi) CORPORATE SOCIAL RESPONSIBILITY:
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its
average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The
areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute
care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been
formed by the company as per the Act. The funds were allocated to a charitable institution for spending towards healthcare
promotion as covered under activites specified in Schedule VII of the Companies Act, 2013.
(vii) The company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(viii) No funds (which are material either individually or in the aggregate) 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, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ix) No funds (which are material either individually or in the aggregate) have been received by the company from any person(s) or
entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that
the company shall, whether, 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 provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
47 OTHER NOTES
(i) Capital management: The company has only equity capital as the only source of capital and has no funds raised in form of
borrowings. The company aims at utilising the capital in the most optimum manner. Hence the comprehensive disclosures
required by Ind AS 1, in respect of capital management are not required.
(ii) As per the internal assessment of the company, there is no non financial asset and investment in associate accounted for in
accordance with IND AS 27 requiring allowance for impairment in compliance of IND AS 36 on “Impairment of Assets” other than
already provided for, if any.
(iii) Based on the information available with the company, there are no dues as at March 31,2026 and March 31,2025 payable to
enterprises covered under “Micro, Small and Medium Enterprises Development Act, 2006”. No interest is paid/payable by the
company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006.
(iv) Previous year’s figures have been regrouped /reclassified wherever necessary to correspond with the current year’s classification
/ disclosure.
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