1.13 Provisions, Contingent liabilities and Contingent Assets
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, 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. Provisions are not recognised for future operating losses, if any.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate used to determine the present value is a current pre-tax rate.
The increase in the provision due to the passage of time is recognised as interest expense.
Contingent liabilities are disclosed in the case of :
• a present obligation arising from the past events, when it is not probable that an outflow of resources will be required to
settle the obligation;
• a present obligation arising from the past events, when no reliable estimate is possible;
• a possible obligation arising from past events, unless the probability of outflow of resources is remote.
Contingent Asset is disclosed when inflow of economic benefits is probable.
1.14 Gratuity and other post-employment benefitsa) Short-term obligations
Short term employee benefits are recognised as an expense at an undiscounted amount in the Statement of Profit and
Loss of the year in which the related services are rendered.
The Company recognises a liability and an expense for bonuses. The Company recognises a provision where contractually
obliged or where there is a past practice that has created a constructive obligation.
b) Post-employment obligations
The Company operates the following post-employment schemes :
• defined benefit plans such as gratuity; and
• defined contribution plans such as provident fund, superannuation fund and national pension scheme.
Gratuity obligations
The liability or asset recognised in the Balance Sheet in respect of defined benefit gratuity plans is the present value of
the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by
reference to market yields at the end of the reporting period on government bonds that have terms approximating to the
terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised at amount net of taxes in the period in which they occur, directly in Other Comprehensive Income. They are
included in Retained Earnings in the Statement of Changes in Equity and in the Balance Sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are
recognised immediately in the Statement Profit and Loss as past service cost.
Defined contribution plans
The Company contributes to Superannuation, Employee's State Insurance Corporation, Provident Fund and subscribes to
the National Pension Scheme which are considered as defined contribution plans.
c) Other long-term employee benefit obligations
The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee
benefit for measurement purposes. They are therefore measured as the present value of expected future payments to
be made in respect of services provided by employees up to the end of the reporting period using the projected unit
credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms
approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes
in actuarial assumptions are recognised in the Statement of Profit and Loss.
The obligations are presented as current liabilities in the Balance Sheet if the entity does not have an unconditional right to
defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected
to occur.
.15 Revenue Recognitiona) Revenue from Contracts with Customers
The Company derives revenues primarily from sale of products and services. Revenue from sale of goods is recognised
net of returns and discounts.
Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects
the consideration the Company expect to receive in exchange for those products or services.
To recognise revenues, the Company applies the following five step approach :
1. Identify the contract with a customer;
2. Identify the performance obligations in the contract;
3. Determine the transaction price;
4. Allocate the transaction price to the performance obligations in the contract; and
5. Recognise revenues when a performance obligation is satisfied.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected
on behalf of third parties.
The Company presents revenues net of indirect taxes in its Statement of Profit and Loss.
Performance obligation may be satisfied over time or at a point in time. Performance obligations satisfied over time if any
one of the following criteria is met. In such cases, revenue is recognised over time.
1. The customer simultaneously receives and consumes the benefits provided by the Company's performance; or
2. The Company's performance creates or enhances an asset that the customer controls as the asset is created or
enhanced; or
3. The Company's performance does not create an asset with an alternative use to the Company and the Company has
an enforceable right to payment for performance completed to date.
For performance obligations where one of the above conditions are not met, revenue is recognised at the point in time at
which the performance obligation is satisfied.
b) Interest Income
Interest income from debt instruments is recognised using the effective interest rate method.
c) Dividend Income
Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established, it
is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the
dividend can be measured reliably.
1.16 Taxes on Income
Current Tax
Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in
accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments / appeals.
Current income tax relating to items recognised directly in equity is recognised in equity.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations
are subject to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the Balance Sheet approach on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, carry forward of unused tax credits and unused tax losses can be utilised.
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 utilised. Unrecognised
deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that
future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised
or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside the Statement of Profit and Loss is recognised outside the Statement of Profit
and Loss. Deferred tax items are recognised in correlation to the underlying transaction either in Other Comprehensive Income
or directly in equity.
The break-up of the major components of the deferred tax assets and liabilities as at Balance Sheet date has been arrived at
after setting off deferred tax assets and liabilities where the Company have a legally enforceable right to set-off assets against
liabilities and where such assets and liabilities relate to taxes on income levied by the same governing taxation laws.
1.17 Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after
deducting preference dividends, if any, and attributable taxes) by the weighted average number of equity shares outstanding
during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders
is adjusted for after income tax effect of interest and other financing costs associated with dilutive potential equity shares and
the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity
shares.
1.18 Leases
Company as a lessee
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the
right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset, the Company assesses whether : (i) the contract involves the use of
an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of
the lease and (iii) the Company has the right to direct the use of the asset.
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases
of low-value assets. For these short-term leases, the Company recognises the lease payments as an operating expense on a
straight-line basis over the term of the lease. The Company recognises lease liabilities to make lease payments and right of use
assets representing the right to use the underlying assets as below.
Right of Use (ROU) assets
The Company recognises Right of Use assets at the commencement date of the lease (i.e. the date the underlying asset is
available for use). Right of Use assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities. The cost of Right of Use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease
incentives received. Right of Use assets are depreciated on a straight-line basis over the shorter of the lease term and the
estimated useful lives of the assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a
purchase option, depreciation is calculated using the estimated useful life of the asset.
Lease Liabilities
The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments
are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rate.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for
the lease payments made. Lease liabilities are remeasured with a corresponding adjustment to the related ROU asset.
Lease liabilities and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified
as financing cash flows.
1.19 Foreign currency translation
a) Functional and presentation currency
The Company's Standalone Financial Statements are prepared in INR, which is also the Company's functional and
presentation currency.
b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised
in the Statement of Profit and Loss.
I n case of advance payment for purchase of assets / goods / services and advance receipt against sales of products /
services, all such purchase / sales transaction are recorded at the rate at which such advances are paid / received.
Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the Statement of Profit and
Loss, within finance costs. All other foreign exchange gains and losses are presented in the Statement of Profit and Loss
on a net basis within other gains / (losses).
Non-monetary items :
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rates at the dates of the initial transactions.
1.20 Mine Restoration Provision
An obligation for restoration, rehabilitation and environmental costs arises when environmental disturbance is caused by the
development or ongoing extraction from mines. Costs arising from restoration at closure of the mines and other site preparation
work are provided for based on their discounted net present value, with a corresponding amount being capitalised at the
start of each project. The amount provided for is recognised, as soon as the obligation to incur such costs arises. These costs
are charged to the Statement of Profit and Loss over the life of the operation through the depreciation of the asset and the
unwinding of the discount on the provision.
The costs are reviewed periodically and are adjusted to reflect known developments which may have an impact on the cost
or life of operations. The cost of the related asset is adjusted for changes in the provision due to factors such as updated cost
estimates, new disturbance and revisions to discount rates. The adjusted cost of the asset is depreciated prospectively over
the lives of the assets to which they relate.
1.21 Government Grants
Government grants are recognised when there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an expense item, it is deducted from the related expense. When the
grant relates to an asset, it is recognised as deferred income and amortised over the useful life of such assets.
The above criteria is also used for recognition of incentives under various schemes notified by the Government.
1.22 Events after the reporting period
I f 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.
1.23 Non-current assets held for sale
The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale
transaction rather than through continuing use.
Non-current assets classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell.
Costs to sell are the incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax
expense.
The criteria for classification as held for sale are considered to be met only when :
a) the asset is available for immediate sale in its present condition, subject only to terms that are usual and customary for
sales of such assets;
b) its sale is highly probable; and
c) management is committed to a plan to sell the asset.
For the purpose of assessing whether the sale is highly probable :
a) an active programme to locate a buyer and complete the plan has been initiated;
b) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value;
c) the sale is expected to be completed within one year from the date of classification; and
d) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the
plan will be withdrawn.
Property, plant and equipment and intangible assets, once classified as held for sale, are not depreciated or amortised.
Assets classified as held for sale are presented separately as current assets in the Balance Sheet.
1.24 New and amended standardsAmendments to Ind AS 1 - Presentation of Financial Statements - Classification of Liabilities as Current or Non-current
and Non-current Liabilities with Covenants and Ind AS 10 - Events after the Reporting Period
I nd 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 1, 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 1, 2026 retrospectively in accordance
with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors.
Notes:
(i) The Board of Directors of the Company in its meeting held on March 2, 2026, considered and approved, inter alia, subject to
shareholders, regulatory and other approvals, sale of the Company's entire shareholding in Raheja QBE General Insurance
Company Limited (“RQBE”), to QBE Holdings (AAP) Pty Limited (the “Purchaser”), the existing shareholder of RQBE, for a
consideration in accordance with the terms of the share purchase agreement between the Company, RQBE and the Purchaser.
Subsequently, the Shareholders' approval was obtained on April 17, 2026. Insurance Regulatory and Development Authority of
India (IRDAI) approval was also received on May 7, 2026.
During the year, the Company has subscribed to the right issue of equity shares of RQBE and invested ' 63.77 Crores. After this
subscription the total investment value in RQBE stood at ' 403.03 Crores. Basis the consideration agreed for sale of investment,
the Company recognised an impairment loss of ' 79.03 Crores in accordance with Ind AS 36 - Impairment of Assets, and the
same has been disclosed as an “exceptional item” in the Statement of Profit and Loss. Consequently, the carrying amount of the
said investment stood at ' 324.00 Crores.
However, since as on March 31, 2026, the transaction is not concluded, the carrying value of investment of ' 324.00 Crores in
RQBE has been classified as “Assets held for sale” in the Balance Sheet in accordance with Ind AS 105 - Non-current Assets
Held for Sale and Discontinued Operations.
(ii) Company has given Non-Disposal Undertaking to certain banks for its investment in subsidiary company.
(iii) Investment in subsidiary Sanskar Ceramics Private Limited includes equity component recognised from 0.01% and 0.02% Non¬
convertible Non-Participating Non-cumulative Redeemable Preference shares. The carrying value of such equity component in
investment value is ' 4.87 Crores (Previous year : ' 4.87 Crores).
(iv) I nvestment in subsidiary Small Luxetile Private Limited (formerly known as Small Johnson Floor Tiles Private Limited) includes
equity component recognised from 0.01% Non-cumulative Optionally Convertible Preference Shares. The carrying value of
such equity component in investment value is ' 0.78 Crore (Previous year : ' 0.78 Crore).
(v) The Company had subscribed to 45% equity share capital of ReNew Green (MPR Two) Private Limited (“ReNew”) amounting to
' 7.28 Crores, resulting in ReNew becoming an associate of the Company. The investment was made with the objective of
setting up a captive wind power project aggregating 23.1 MW for supply of power to the Company's cement plant at Satna,
Madhya Pradesh.
During the year ended March 31, 2025, disputes arose between the Company and ReNew in relation to implementation of
the project and fulfilment of obligations under the Power Consumption Agreement (“PCA”) entered into between the parties.
ReNew communicated its alleged termination of the PCA, contending existence of Force Majeure conditions since inception of
the agreement. The Company, through formal communication, rejected the purported termination of the PCA and disputed the
validity of the Force Majeure claims raised by ReNew. The Company also issued a Captive Generator Event of Default Notice
to ReNew for failure to fulfil its obligations under the PCA and for its failure to construct and commission the project within the
Scheduled Commercial Operation Date (SCoD) and even the stipulated Long Stop Date. Subsequently, the Company invoked
and encashed ReNew's Performance Bank Guarantee (“PBG”) amounting to ' 7.28 Crores and terminated the PCA on May 30,
2025 in accordance with the terms of the PCA.
Pursuant to the disputes between the parties, arbitration proceedings were initiated and an Arbitral Tribunal was constituted on
September 15, 2025 in accordance with terms of the PCA and the applicable law in force. The Company has filed its Statement
of Claim. ReNew has filed its Statement of Defence and Counter-Claim. Pleadings in the matter are complete and the matter is
currently pending adjudication before the Arbitral Tribunal.
Based on the management's current assessment and the legal advice obtained, the Company believes it has strong grounds to
substantiate its claims in the Arbitration. As per the Company's assessment it is unlikely that there will be an impact of the above
on the standalone financial statements of the Company for the year ended March 31, 2026.
(vi) Divestment of Equity Investments :
During the year ended March 31, 2026, the Company divested its entire equity stake in the following entities for an aggregate
consideration of ' 0.11 Crore :
- Venkataramiah Tile Bath Kitchen Private Limited (formerly known as TBK Venkataramiah Tile Bath Kitchen Private Limited)
- Samiyaz Tile Bath Kitchen Private Limited (formerly known as TBK Samiyaz Tile Bath Kitchen Private Limited)
- Tescon Buildcon Private Limited (formerly known as TBK Rangoli Tile Bath Kitchen Private Limited)
The cost of investments in these entities aggregating ' 0.90 Crore was fully provided for / impaired in earlier years. Consequently,
a net income of ' 0.11 Crore has been recognised in the Statement of Profit and Loss for the year ended March 31, 2026.
(vii) Investments classified as Fair Value Through Other Comprehensive Income (FVTOCI) represent unquoted equity shares held
for strategic, long-term purposes. These are neither held for trading nor in the Company's core line of business. The Company
has made an irrevocable election under Ind AS 109 - Financial Instruments to recognize fair value changes in OCI, since routing
them through the Statement of Profit and Loss would not reflect the underlying purpose of holding these investments.
Description of the nature and purpose of each reserve within equity is as follows :a. Capital Redemption Reserve :
The Company had created Capital Redemption Reserve on account of redemption of preference shares due to past
amalgamation.
b. General Reserve :
The Company had earlier transferred a portion of the net profit of the Company before declaring dividend to the general
reserve pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to general reserve before declaration
of dividend is not required under the Companies Act, 2013. This reserve can be utilised in accordance with the requirements of
Companies Act, 2013.
c. Retained Earnings :
Retained earnings are the profit / (loss) that the Company has earned / incurred till date less any transfer to general reserve,
dividends or other distributions paid to Shareholders. Retained earnings include remeasurement gains / (losses) on defined
benefit plans (net of taxes) that will not be reclassified to Statement of Profit and Loss.
d. Capital Reserve :
The Company had created capital reserve pursuant to past demerger of business and amalgamation.
(a) Supplier's credit represents the extended interest bearing credit offered by the funding bank to the supplier which is secured
against the Usance Letter of Credit (LC). Under this arrangement, the supplier's negotiating bank is eligible to receive payment
from the funding bank prior to the expiry of the extended credit period. The interest for the extended credit period is payable
to the funding bank on maturity of LC.
(b) Supplier's credit also includes the Under Invoice Discounting Facility program for Vendor undertaken by the Bank, the eligible
supplier can assign invoices to the Bank and receive payment prior to the extended credit period. The Company submits an
undertaking or a debit authority to the Bank as part of security for the transaction.
(c) The Company has tied up with Trade Receivables Discounting System (“TReDS”) Platform approved by RBI to facilitate early
payments to its MSME Suppliers whereby the invoices approved by the Company is factored / discounted by the financiers
registered with the TReDS Platform. Under this arrangement, the Suppliers will receive early payment against their invoices
from the financier on the basis of the undertaking / debit mandate issued by the Company to the TReDS platform, basis this
debit mandate, the Company will make payment to the relevant financier on the due date of the invoice.
(d) Supplier's credit is availed at an interest rate ranging from 3.03% - 5.04% (Previous year : 3.03% - 6.73%) per annum. These trade
credits are largely repayable within 180-360 days from the date of draw down. These facilities are secured by first pari passu
charge over the material procured under these credit facilities.
The charges / interest under all the above arrangements is borne by the Company and classified under finance costs.
Notes :
1. During the year ended March 31, 2026, the Company concluded the sale of its office premises located in Mumbai for a total
consideration of ' 165.91 Crores.
2. On November 21, 2025, the Government of India notified the four new Labour Codes, the Code on Wages, 2019, the Code on
Social Security, 2020, the Industrial Relations Code, 2020 and the Occupational Safety, Health and Working Conditions Code,
2020 (collectively referred to as the “New Labour Codes”). The Company has carried out an assessment of these changes and
accordingly accounted for additional expense of ' 39.05 Crores towards gratuity and leave provisions. The Company continues
to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the New Labour
Codes and finalise the impact on the financial statements as and when such clarifications are issued / rules are notified.
3. During the year ended March 31, 2025, the Company concluded the part sale of its industrial premises located at Company's
tile plant at Pen, Maharashtra for a total consideration of ' 164.63 Crores.
003 LEASES (Contd...)
6. The effective interest rate for lease liabilities is 10%.
7. The maturity analysis of lease liabilities are disclosed in note 4.09. The Company does not face a significant liquidity risk with
regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when
they fall due.
8. Future lease payments in respect of Leases not yet commenced for which the Company is committed is Nil (Previous year : Nil).
OQQ EMPLOYEE BENEFIT PLANS1. Defined Contribution Plans
The Company operated defined benefits contribution retirement benefits plans for all qualifying employees.
The total expenses recognised in the Statement of Profit and Loss of ' 18.56 Crores (Previous year : ' 18.91 Crores) represents
contributions payable to these plans by the Company at rates specified in rules of the plans.
2. Defined Benefits Plans
The Company sponsors funded defined benefit plans for qualifying employees. The defined benefits plan are administered by
separate funds that are legally independent entities. The governing body of the fund is responsible for the investment policy
with regard to assets of the funds.
These plans typically expose the Company to Actuarial risks such as : investment risk, interest rate risk, longetivity risk and
salary risk. No other post-retirement benefit are provided to the employees.
Investment risk : The present value of the defined benefit plan liability is calculated using a discount rate which is determined
by reference to market yields at the end of the reporting period on government bonds.
Interest risk : A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an
increase in the return on the plan debt investments.
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 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.
Future cash flows in respect of contingent liabilities matters depend on the final outcome of judgement / decisions
pending at various forums / authorities.
(b) Capital and other Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)
' 185.78 Crores (Previous year : ' 201.33 Crores) and other commitments includes outstanding letters of credit ' 41.13
Crores (Previous year : ' 42.22 Crores).
(c) In terms of long-term Gas Supply Agreement (‘GSA’) for Re-Liquefied Natural Gas (‘RLNG') with GAIL (India) Limited (‘GAIL')
having validity till April, 2028, the Company is committed to draw minimum quantity of RLNG specified therein. In case of
underdrawn quantities, determined on calendar year basis, the Company is liable to deposit purchase price under Take
or Pay Obligation clause (‘TOP') of the GSA and is allowed to draw such underdrawn quantities in the balance term of the
GSA at then prevailing price.
I n earlier years, the Company has not been able to draw committed quantity of RLNG and GAIL has waived the TOP
obligations under the GSA. For the Calendar Year (CY) 2025 also, GAIL has waived of TOP obligations.
The Company has Gas supply agreements / contracts for three manufacturing locations i.e. at Dewas, Kunigal and Pen.
At Dewas and Kunigal, the Company has been able to renegotiate Minimum Guaranteed Obligation (‘MGO'), thereby
reducing (limiting) the TOP obligation on the Company for the undrawn quantities of MGO. The Company is pursuing its
efforts with GAIL for similar reduction for its plant at Pen.
Due to the detrimental effect on the energy supplies arising out of the ongoing war in the Middle East and blockade in
the Strait of Hormuz, GAIL has been unable to supply committed RLNG to its customers, and has therefore issued a force
majeure notice under the GSA. These force majeure conditions continue to be in place with no clear sign of end thereof.
I n light of the above, until the force majeure conditions remain in place and supplies are not normalised, the undrawn
quantities under the GSA for the calendar year 2026 cannot be calculated and therefore no amount can be estimated
under the TOP obligations for the period January 2026 to March 2026, which could be due in December 2026. In
addition, in case any quantities under the GSA are to be determined and calculated in future, and if any amount of TOP
becomes payable, the same will only be in the nature of an advance payment for RLNG which can be drawn anytime
thereafter up to the end of term of the GSA i.e. April 2028. Accordingly, this contract is not considered as in the nature of
onerous contract and no effect of the same is required to be given in the Standalone Financial Statements for the year
ended March 31, 2026.
Note : As on March 31, 2026 and March 31, 2025, the Company does not have any intangible asset under development which
is overdue or has exceeded its cost compared to its original plan and hence intangible assets completion schedule is not
applicable.
8 CAPITAL MANAGEMENT
The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors',
creditors' and market confidence and to sustain future development and growth of its business and at the same time, optimise
returns to the shareholders. The Company takes appropriate and corrective steps in order to maintain, or if necessary adjust, its
capital structure.
The capital structure of the Company is based on management's judgement of the appropriate balance of key elements in order to
meet its strategic and day-to-day needs. The Company considers the amount of capital in proportion to risk and manage the capital
structure in light of changes in economic conditions and the risk characteristics of the underlying assets.
Consistent with others in the industry, the Company monitors capital on the basis of the Net Debt to Equity ratio computed as under :
Net debt (total Borrowings net of unrestricted Cash and Bank balance) divided by Total Equity.
The Company's strategy is to maintain a Net Debt to Equity ratio within 2 times. The comparative ratios are tabulated as hereunder :
(i) Methods and assumptions used to estimate the fair values
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 :
a) The carrying amounts of receivables and payables which are short term in nature such as trade receivables, other bank
balances, deposits, loans to employees, trade payables, payables for acquisition of non-current assets, demand loans
from banks and cash and cash equivalents are considered to be the same as their fair values.
b) The fair values for long term loans, long term security deposits given and remaining non-current financial assets were
calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair
value hierarchy due to the inclusion of unobservable inputs.
c) The fair values of long term security deposits taken, non-current borrowings and remaining non-current financial liabilities
are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair
value hierarchy due to the use of unobservable inputs.
d) For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
(ii) Categories of financial instruments
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique :
Level 1 : unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2 : directly or indirectly observable market inputs, other than Level 1 inputs; and
Level 3 : inputs which are not based on observable market data.
The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company's
financial risk management policy is set by the Board. The details of different types of risk and management policy to address
these risks are listed below :
The Company's activities are exposed to various risks viz. Credit risk, Liquidity risk and Market risk. In order to minimise any
adverse effects on the financial performance of the Company, it uses various instruments and follows polices set up by the
Board of Directors / Management.
a. Credit Risk :
Credit risk arises from the possibility that counter party will cause financial loss to the Company by failing to discharge its
obligation as agreed.
Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy. For
financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions
having high credit-ratings assigned by credit-rating agencies.
Each division of the Company has specific policies for managing customer credit risk; these policies factor in the customers'
financial position, past experience and other customer specific factors. The Company uses the allowance matrix to measure the
expected credit loss of trade receivables from customers.
Based on the industry practices and business environment in which the Company operates, management considers that the
trade receivables are in default if the payment are more than 2 years past due.
Trade receivables consists of large number of customers spread across diverse industries and geographical areas with no
significant concentration of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is
taken for collection of overdue receivables.
b. Liquidity Risk :
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that
are settled by delivering cash or another financial asset. The Company's approach for 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 Company's reputation. In addition, processes and policies related
to such risks are overseen by the senior management. The Management monitors the Company's net liquidity position through
rolling forecasts on the basis of expected cash flows.
The Company has sufficient sanctioned line of credit from its bankers / financiers; commensurate to its business requirements.
The Company reviews its line of credit available with bankers and lenders from time to time to ensure that at any point of time
there is sufficient availability of line of credit to handle peak business cycle.
The Company pays special attention to the net operating working capital invested in the business. In this regard, as in previous
years, considerable work has been performed to control and reduce collection periods for trade and other receivables, as well
as to optimise accounts payable with the support of banking arrangements to mobilise funds and minimise inventories.
c. Market Risk :
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises two types of risk : currency risk and interest rate risk.
i Market Risk - Foreign Exchange
Foreign currency risk is that risk in which the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates. The Company operates internationally and a portion of its business is transacted
in several currencies and therefore the Company is exposed to foreign exchange risk through its overseas sales and
purchases in various foreign currencies. The Company hedges the receivables as well as payables as per policies set by
the Management.
The Company is also exposed to the foreign currency loans availed from various banks to reduce the overall interest cost.
ii. Market Risk - Interest Rate
The 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 borrows at variable as well as fixed interest rates and the same is managed by the Company by constantly
monitoring the trends and expectations. In order to reduce the overall interest cost, the Company has borrowed in a mix
of short term and long term loans.
Interest rate sensitivity analysis
The sensitivity analysis below have been determined based on the exposure to interest rates on the borrowings at the end
of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at
the end of the reporting period was outstanding for whole of the year. A 100 basis point increase or decrease is used for
internal review by the key managerial personnel.
Terms and conditions of transactions with related parties:i) Sales to related parties and concerned balances
For terms of transaction
Sales are made to related parties on the same terms as applicable to third parties in an arm's length transaction and in the
ordinary course of business. The Company mutually negotiates and agrees sales price, discount and payment terms with the
related parties by benchmarking the same to transactions with non-related parties, who purchase goods and services of the
Company in similar quantities. Such sales generally include payment terms requiring related party to make payment within 30
to 120 days from the date of invoice.
For terms of balance
Trade receivables outstanding balances are unsecured, interest free and require settlement in cash. No guarantee or other
security has been received against these receivables. The amounts are recoverable within 30 to 120 days from the reporting
date (Previous year : 30 to 120 days from the reporting date). For the year ended March 31, 2026, the Company has not
recorded any impairment on receivables due from related parties (Previous year : Nil).
ii) Purchases of goods and related balances
For terms of transaction
Purchases are made from related parties on the same terms as applicable to third parties in an arm's length transaction and
in the ordinary course of business. The Company mutually negotiates and agrees purchase price and payment terms with the
related parties by benchmarking the same to sale transactions with non-related parties entered into by the counter-party. Such
purchases generally include payment terms requiring the Company to make payment within 30 to 121 days from the date of
invoice.
For terms of balance
Trade payables outstanding balances are unsecured, interest free and require settlement in cash. No guarantee or other
security has been given against these payables. The amounts are payable within 30 to 121 days from the reporting date
(Previous year : 30 to 121 days from the reporting date).
iii) Loans and advances given to related parties
The Company has given loans and advances to its subsidiary companies for meeting the working capital requirements and
business expansion purposes. The loans and advances have been utilized by the subsidiary companies for the purpose for
which these loans and advances were obtained. The loans and advances are unsecured, repayable as per the terms of the
agreement and carries interest rates at the rate of 10.00% to 10.75% per annum. For the year ended March 31, 2026, the
Company is carrying impairment provision on loans due from the subsidiary amounting to ' 2.80 Crores (Previous year: ' 2.80
Crores).
EB3 RELATED PARTY DISCLOSURES (Contd...)iv) Investment in subsidiary companies
The Company has acquired equity shares in subsidiary companies on arm's length basis.
v) Services rendered to related parties
For terms of transaction
The Company has entered into contract with related party for rendering services. The services so rendered are on the same
terms as applicable to third parties in an arm's length transaction and in the ordinary course of business. The Company mutually
negotiates and agrees the price and payment terms with the related parties by benchmarking similar services rendered by the
Company to other non-related parties.
For terms of balance
Outstanding balances are unsecured, interest free and require settlement in cash. No guarantee or other security has been
received against these assets. The amounts are recoverable within 30 to 67 days from the invoice date. For the year ended
March 31, 2026, the Company has not recorded any impairment on the amounts due from related parties (Previous year: Nil).
vi) Services received from related parties
For terms of transaction
The Company receives services from its related parties on the same terms as applicable to third parties in an arm's length
transaction and in the ordinary course of business. The Company mutually negotiates and agrees the price and payment terms
with the related parties by benchmarking the same to the services to non-related parties entered into by the counter-party.
For terms of balance
Outstanding balances are unsecured, interest free and require settlement in cash. No guarantee or other security has been
given against these payables. The amounts are payable within 30 to 67 days from the reporting date.
vii) Compensation to Key Managerial Personnel of the Company
The amounts disclosed in the table above are the amounts recognised as an expense during the financial year related to
Key Managerial Personnel. The amounts do not include expense, if any, recognised toward post-employment benefits and
other long-term benefits of key managerial personnel. Such expenses are measured based on an actuarial valuation done for
Company as a whole. Hence, amounts attributable to Key Managerial Personnel's are not separately determinable.
viii) Sitting Fees to Independent Directors
Sitting fees is paid to directors including non-executive and independent directors for attending meetings of the Board and
various Committees constituted by the Board at rates approved by the Board and Shareholders of the Company. The sitting
fees is payable to each Director shortly after conclusion of each meeting.
ix) Others
a) The value of related party transaction and balances reported are based on actual transaction and without giving effect to
notional Ind AS adjustment entries.
b) Transactions disclosed against “Others” in the above table are those transactions with related party which are of the
amount not in excess of 10% of the total related party transactions of the same nature.
QQ SEGMENT INFORMATION
In accordance with Ind AS 108 on ''Operating segments" information has been given in the Consolidated Financial Statements
of the Company and therefore no separate disclosure on segment information is given in the Standalone Financial Statements.
E0 GOVERNMENT GRANTS BY WAY OF TAX SUBSIDY / EXEMPTION SCHEMES
As per the Industrial Promotion Policy, 2014 of the Government of Madhya Pradesh, the Company is eligible to receive a
subsidy amounting to 40% of the total project investment over a period of seven years. During the year, based on the sanction
received for FY 2024-25, the Company has recognised subsidy income of ' 1.62 Crores upon receipt. Further, considering
that the subsidy is unconditional, receivable on an annual basis, and in view of the Company's consistent receipt of such
subsidy over the preceding three years, the Company has also recognised and accrued subsidy income of ' 1.62 Crores for
FY 2025-26. Accordingly, the total subsidy recognised during the year amounts to ' 3.24 Crores (Previous year: ' 1.62 Crores),
which has been credited to "Other Operating Income" in the Statement of Profit and Loss.
4.17 Pursuant to Order of the Hon'ble Supreme Court dated September 24, 2014, Sial Ghogri Coal mine of the Company was de¬
allocated and put to auction by the Ministry of Coal through Nominated Authority. The Nominated Authority had determined
compensation of ' 32.49 Crores for the said Coal Block as against expenses and book value of assets amounting to ' 47.58 Crores.
Till date, a sum of ' 32.34 Crores has been disbursed by the Nominated Authority. The Company had inter-alia disputed the
quantum of compensation before the Hon'ble High Court of Judicature, Delhi. As per the directions of the said High Court, the
Company had filed its claim for an additional compensation of ' 53.03 Crores before the Coal Tribunal at Singrauli, duly appointed
under Coal Bearing Areas (Acquisition and Development) Act, 1957.
The Coal Tribunal however, has declined to entertain claim of the Company being of the view that the same has to be heard by
the Nominated Authority. Aggrieved by the decision of the Coal Tribunal, the Company has filed an appeal before the High Court
of Madhya Pradesh to restore the claim before the Coal Tribunal.
Pending final disposal of the matter, the Company has not recognised excess of compensation claimed over the book value as
income as well as loss that may have to be incurred in the event compensation is denied. Accordingly, the balance amount appears
under the head Other Financial Assets (note 2.05) and Freehold Land (note 2.01) ' 13.93 Crores and ' 1.31 Crores respectively. The
Freehold Land continues to be in possession of the Company as it was not part of the vesting order. Based on the legal opinion,
the Company has more than reasonable chances of succeeding in the matter.
4.18 Insurance claim of the year 2012 relating to collapse of blending silo [‘Silo'] at cement plant and consequential damages was
rejected by the insurance company. Against the rejection of the claim, the Company had filed a money suit against the insurance
company for recovery of ' 150.27 Crores. The matter is before the Commercial Court at Rewa, Madhya Pradesh. In the previous
years, the Company had recognised a sum of ' 58.94 Crores as receivable. As a matter of prudence, in the FY 2023-24 the
Company had made provision of the said receivable of ' 58.94 Crores.
In addition, the Company is pursuing arbitration proceedings for recovery of damages against Gannon Dunkerley & Co. Limited
(GDCL), the party responsible for construction of the said Silo. In the FY 2024-25, an exhaustive and detailed interim (final) award
[‘Order'] had been passed by the Arbitral Tribunal finding GDCL responsible for deficiencies in construction, which had contributed
to the collapse of the Silo and holding that GDCL is liable to bear and pay 80% of the loss sustained by the Company.
During the FY 2025-26 under review, GDCL has challenged the above-mentioned Order in the Hon'ble Bombay High Court. The
Bombay High Court has declined to stay the arbitration proceedings for determining the quantum of damages and the Arbitral
Tribunal has commenced the separate quantum tranche hearing for deciding the quantum of damages, including interest and
costs payable to the Company. The Company is hopeful of succeeding in the matter.
4.19 According to the information available with the management, on the basis of intimation received from its suppliers regarding
their status under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has amounts due to micro
and small enterprises under the said Act are as follows :
023 RELATIONSHIP WITH STRUCK OFF COMPANIES
The Company does not have any transaction with companies struck off under section 248 of the Companies Act, 2013 for the year
ended March 31, 2026 and March 31, 2025.
033 DETAILS OF PROPERTIES IN WHICH TITLE DEEDS ARE NOT IN THE NAME OF THE COMPANY :
The title deeds of all immovable properties (other than properties where the Company is the lessee and the lease agreements
are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the Company. However,
there are certain immovable properties which continue to appear in the records of the relevant authorities in the erstwhile name
of the Company viz. Karan Cement Limited or Prism Cement Limited. The name change process of these properties in the current
name of the Company i.e. Prism Johnson Limited is under progress. In addition, certain immovable properties were vested in the
Company on amalgamation of RMC Readymix (India) Private Limited and H. & R. Johnson (India) Limited as of April 1, 2009 and also
on amalgamation of Silica Ceramica Private Limited and Milano Bathroom Fittings Private Limited as of April 1, 2018. Some of these
immovable properties owned or taken on long-term non-cancellable lease arrangements by these amalgamating entities are yet
to be transferred in the name of the Company. The Company is pursuing the matter to get the same registered with the relevant
authorities in the name of the Company. The details of the same are as under :
023 NON-CURRENT ASSETS HELD FOR SALE
a) During the year ended March 31, 2026, the Company has classified investment in Raheja QBE General Insurance Company
Limited (“RQBE”) as non-current assets held for sale following Board of Directors approval in its meeting held on March 2, 2026,
inter alia, subject to shareholders, regulatory and other approvals, for the sale of the Company's entire shareholding in RQBE
to QBE Holdings (AAP) Pty Limited, the existing shareholder of RQBE {refer footnote (i) of note 2.03}. The details are as given
below :
b) During the year ended March 31, 2026, the Board of Directors of the Company has approved to sell the Industrial Land &
structures located at Nacharam, Hyderabad having written down value of ' 0.86 Crore. Consequently, these assets have
been classified as "Assets held for sale" in accordance with Ind AS 105 - Non-current Assets Held for Sale and Discontinued
Operations. These assets are reported under the RMC reportable segment.
023 OTHER STATUTORY INFORMATION :
(i) As on March 31, 2026, the Company does not have any charge or satisfaction which are yet to be registered with the Registrar
of Companies beyond the statutory period.
(ii) The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement
with the books of accounts.
(iii) (a) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other source
or kind of funds) to any other person(s) or entity(ies), including foreign entities ('Intermediaries') with the understanding
(whether recorded in writing or otherwise) that the Intermediary shall: (i) 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 (ii) provide any
guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(b) The Company has not received any funds 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, 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.
(iv) No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder.
(v) The Company has not revalued its Property, plant and equipment and intangible assets, thus valuation by a registered valuer
as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 is not applicable.
(vi) The Company has not been declared wilful defaulter by any bank or financial institution or other lender.
(vii) The Company has not entered into any scheme of arrangements as approved by the competent authority in terms of section
230 to 237 of the Companies Act, 2013.
(viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017.
(ix) 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).
(x) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
EE3 AUDIT TRAIL FEATURE IN ACCOUNTING SOFTWARE :
The Company has used accounting softwares for maintaining its books of account which has a feature of recording audit trail (edit
log) facility for all relevant transactions recorded in the softwares, except that audit trail feature was not enabled for changes at
database level in respect of one of its accounting softwares for the period April 1, 2025 to March 14, 2026. Further, there are no
instance of audit trail feature being tampered with.
Additionally, the audit trail of prior years has been preserved by the Company as per the statutory requirements for record retention
to the extent it was enabled and recorded in those respective years.
|