(b) Detail of the rights, preferences and restrictions attaching to each class of shares outstanding Equity shares of Rs. 10/- each:
The Company has only one class of equity shares, having a par value of Rs.10/-. The holder of equity shares is entitled to one vote per share. In the event the Company plans any dividend payments, the same will be declared and paid in Indian rupees. Any such dividend proposed by the Board of Directors will be subject to approval by the shareholders at the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the Company, after distribution to all other parties concerned. The distribution will be in proportion to number of equity shares held by the shareholders.
34. Earnings Per share
BasicEPS amounts are calculated by dividing the profit for the year attributableto equity holders by the weighted average number of equity shares outstanding during theyear.
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.
gjjlgm ployee benefit plans
37.1 Defined contribution plans
The employees of the Company are members of a state-managed retirement benefit plan o pera ted by the government. The Compa ny is requ ired to co ntribute a specifi ed percen tage of pay roll costs to the retirement benefit s cheme to fund the benefits. The only obligatio n of the Company with respect to the retirement benefit pla n is to make the specified contributions.
During the period, the Company has recognized the following amount in the Profit and Loss Account : 31.1 Defined benefit plans
The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service of 5 years are eligible for gratuity under this Act. The amount of gratuity payable on termination / retirement is the last drawn basic salary per month of the employee proportionate for a period of 15 days per completed year of service. During the
year 2017, the Company had constituted a Group Gratuity Trust and the above liability is funded through the Group Gratuity Trust with Life Insurance Corporation of India.
These plans typically expose the Group to actuarial risks such as: Actuarial Risk, Investment Risk, Liquidity Risk, Market Risk & Lesgislative Risk.
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It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected. Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate
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Actuarial Risk
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assumption than the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate. Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date
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For funded plans that rely on insurers for managing the assets, the value of assets certified
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Investment
Risk
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by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate dur-ing the inter valuation period
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Liquidity
Risk
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Employees with high salaries and long du-rations or those higher in hierarchy, accu-mulate significant level of benefits. If some of such employees resign/retire from the company there
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can be strain on the cash-flows
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Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount
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Market
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rate. The discount rate reflects the time value of money. An increase in discount rate leads
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Risk
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to decrease in Defined Benefit Obligation of the plan bene-fits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date
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Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of
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Legislative
Risk
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Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective
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Note 38: Financial risk management objectives and policies
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these fi-nancial liabilities is to finance and support Company's operations. The Company's principal financial assets include trade and other receivables, cash and cash equivalents and refundable deposits that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.
(i) 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 two types of risk: interest rate risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings and refundable deposits. The sensitivity analysis in the following sections relate to the position as at March 31, 2026 and March 31, 2025. The sensitivity analysis have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt.
The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post retirement obli-gations; provisions.
The below assumption has been made in calculating the sensitivity analysis:
(ii) 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 short-term debt obligations
with floating interest rates.
The Company manages its interest rate risk by having a balanced portfolio of variable rate borrowings. The Company does not enter into any interest rate swaps.
(iii) Credit Risk:
9nl!auM| sk is the risk that counterparty will not me gQHQgESro ligatfljJjS unddHImKi ncic||Gyi|r umen 3R|j customer contract, leading to a financial loss. The cre dit risk arises principally from its operating activities (primarily trade receivables) and from its investing activ ities, including deposits with banks and financial institutions and other financial instruments.
Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables are monitored on a continuous basis by the receivables team. The Company establishes an allowance for credit loss that represents its estimate of expected losses in respect of trade and other receivables based on the past and the recent collection trend.
Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.
(iv) Liquidity Risk:
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans.
Note39: Capital management
T^^SB^npany's policy is to maintain a stable cfflsfljS Hpse sBiBJI to mrn||]gQ| jnvesflffl|H]H|mS)r RBw market confidence and to sustain future development of the business. Management monitors capital on the basis of return on capital employed as well as the debt to tot al equity ratio.
For the purpose of debt to total equity ratio, debt considered is long-tern2! and short-term
comprise of issued share capital and all other ggmm|w reserves.
1. Decrease in Current ratio is on account of increase in Trade Receivables pursuant to revenue growth.
2. Reduction in Debt Equity Ratio is on account of repayment of loans on a monthly instalment basis.
3. Increase in Debt service coverage ratio is on account of increase in earnings.
4. Return on equity reduced due to increase in capital em-ployed.
5. Trade receivable turnover ratio is increased due increase in sales.
6. Trade Payable turnover ratio has increased due to reduction in trade payables balance at the year end as compared to the previous period.
7. Increase in Net capital turnover ratio is due to increase in Sales.
8. Decrease in net profit ratio is due to extra-ordinary items booked during the year.
41. Additional Regulatory Disclosures
1. The Company has not been declared as an wilful defaulter by any bank or financial institution or other lenders.
2. The Company has no transactions with Companies that has been struck off.
3. The Company has not traded or invested in crypto currency or virtual currency during the financial year or in the previous year.
4. There are no proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
5. There are no charges registration or satisfaction of charge not created with ROC beyond the time period.
6. There are no immovable properties held in the name of the company.
7. The Company has no transactions 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)
gl fr he company has not made any QUmgllhtion to thy! gmjSfflgrty, Plamjjg!j!!IEquipyjjMajjnj
9. The company has not entered into any Scheme of arrangement.
10. The company has not given any/ loans or advances to tines IDirectors/KMP/Related Parties other than reported in the related party/ transaction disclosure.
11. All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirements of Schedule III, unless otherwise stated.
43. The Board of Directors recommended a final dividend of Re.1 per equity share (l0%)of face value of 10 each at the meeting held on 5th May 2026 subject to shareholders approval at the ensuing Annual General Meeting.
44. The Company has used an accounting software for maintaining its books of accounts which has a feature of recording the audit trail (edit log) facility and the same has been operated throughout the year for all transactions recorded in the software. Further, the audit trail feature has not been tampered with and the audit trail has been preserved by the Company as per the statutory requirements for record retention.
45. Contingeny Liabilities: Nil.
46. Previous year's figures have been regrouped wherever necessary, to conform to the current year's classification.
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