5.12 Provisions, Contingent Liabilities and Contingent Assets
5.12.1 Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a
result of past events and it is probable that there will be an outflow of resources embodying economic benefits in respect of
which a reliable estimate can be made.
5.12.2 Provisions are discounted if the effect of the time value of money is material, using pre-tax rates that reflects the risks
specific to the liability. When discounting is used, an increase in the provisions due to the passage of time is recognised as
finance cost. These provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.
5.12.3 Insurance claims are accounted on the basis of claims admitted or expected to be admitted and to the extent that the
amount recoverable can be measured reliably and it is reasonable to expect ultimate collection. Any subsequent change in
the recoverability is provided for. Contingent Assets are not recognised.
5.12.4 Contingent liability is a possible obligation that may arise from past events and its existence will be confirmed only by
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or it is
not probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the same
are not recognised but disclosed in the financial statements.
5.13 Intangible Assets
5.13.1 The costs of computer software acquired and its subsequent improvements are capitalised. Internally generated software is
not capitalized and the expenditure is recognized in the Statement of Profit and Loss in the year in which the expenditure is
incurred.
5.13.2 Intangible Assets are amortised over their estimated useful life on straight line method. The estimated useful lives of
intangible assets are assessed by the internal technical team. Its accounting classification is given below:
5.13.3 The intangible assets that are under development phase are carried at cost including related expenses and attributable
interest, and are recognised as Intangible assets under development.
5.13.4 The residual values, useful lives and methods of depreciation of intangible asset are reviewed at each reporting date and
adjusted prospectively, if appropriate.
5.14 Investment Properties
5.14.1 An investment in land or buildings both furnished and unfurnished, which are held for earning rentals or capital appreciation
or both rather than for use in the production or supply of goods or services or for administrative purposes or sale in the
ordinary course of business, are classified as investment properties.
5.14.2 Investment properties are stated at cost, net of accumulated depreciation and impairment loss, if any except freehold land
which is carried at cost.
5.14.3 The company identifies the significant parts of investment properties separately which are required to be replaced at
intervals. Such parts are depreciated separately based on their specific useful lives determined on best estimate basis upon
technical advice. The cost of replacement of significant parts are capitalised and the carrying amount of replaced parts are
de-recognised. Other expenses including day-to-day repair and maintenance expenditure and cost of replacing parts that does
not meet the capitalisation criteria, are charged to the Statement of Profit and Loss for the period during which such expenses
are incurred.
5.14.4 Depreciation on investment properties are calculated on straight-line method based on useful life of the significant
components.
5.14.5 Investment properties are eliminated from the financial statements on disposal or when no further benefit is expected from
its use and disposal. Gains or losses arising from disposal, measured as the difference between the net disposal proceeds
and the carrying amount of such investment properties, are recognised in the Statement of Profit and Loss. Amount received
towards investment properties that are impaired and derecognized in the financial statements, are recognized in Statement
of Profit and Loss, when the recognition criteria are met.
5.14.6 The residual values, useful lives and methods of depreciation of investment properties are reviewed at each reporting date
and adjusted prospectively, if appropriate.
5.15 Operating Segments
Operating segment has been identified on the basis of nature of products and reported in a manner consistent with the
internal reporting provided to Chief Operating Decision Maker.
The Company has three operating/reportable segments viz. building products, textile and wind power generation.
The inter-segment transfers of units of power from windmills are recognized at the applicable tariff rates of the electricity
boards for the purpose of segment reporting as per the relevant accounting standard.
Costs are allocated to the respective segment based upon the actual incidence of respective cost. Unallocated items include
general other income and expenses which are not allocated to any business segment.
5.16 Financial Instruments
5.16.1 The Company initially determines the classification of financial assets and liabilities. After initial recognition, no re¬
classification is made for financial assets which are categorised as equity instruments at FVTOCI and financial assets /
liabilities that are specifically designated as FVTPL. However, other financial assets are re-classifiable when there is a change
in the business model of the Company.
Financial Assets
5.16.2 Financial assets comprise of investments in equity and mutual funds, trade receivables, cash and cash equivalents and other
financial assets.
Initial recognition and measurement
5.16.3 All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value
through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. However, Trade
receivables that do not contain a significant financing component are measured at transaction price.
5.16.4 Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between
the fair value and the transaction price is recognised as a gain or loss in the Statement of Profit and Loss at initial recognition
if the fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or
through a valuation technique that uses data from observable markets (i.e. level 2 input).
5.16.5 In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair
value and transaction price is deferred appropriately and recognised as a gain or loss in the Statement of Profit and Loss only
to the extent that such gain or loss arises due to a change in factor that market participants take into account when pricing
the financial asset.
Subsequent measurement
5.16.6 For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:
(a) The Company’s business model for managing the financial asset and,
(b) The contractual cash flow characteristics of the financial asset:
Financial Liabilities
5.16.10 Financial liabilities comprise of Borrowings from Banks, Trade payables, Derivative financial instruments, Financial guarantee
obligation and other financial liabilities.
Initial recognition and measurement:
5.16.11 All financial liabilities are recognised initially at fair value minus, in the case of financial liabilities not recorded at fair value
through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial liability.
5.16.12 Where the fair value of a financial liability at initial recognition is different from its transaction price, the difference between
the fair value and the transaction price is recognised as a gain or loss in the Statement of Profit and Loss at initial recognition
if the fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or
through a valuation technique that uses data from observable markets (i.e. level 2 input).
5.16.13 In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair
value and transaction price is deferred appropriately and recognised as a gain or loss in the Statement of Profit and Loss only
to the extent that such gain or loss arises due to a change in factor that market.
Subsequent measurement
5.16.14 All financial liabilities of the Company are subsequently measured at amortised cost using the effective interest method
except for certain items like foreign exchange forward contracts that do not qualify for hedge accounting are measured at
fair through profit or loss (FVTPL).
5.16.15 Transaction cost of financial guarantee contracts that are directly attributable to the issuance of the guarantee are recognised
initially as a liability at fair value. Subsequently, the liability is measured at the higher of the amount of loss allowance
determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortization.
5.17 Fair value measurement
5.17.1 The fair value of an asset or a liability is measured using the assumptions that the market participants would use when pricing
the asset or liability, assuming that the market participants act in the economic best interest.
5.17.2 All assets and liabilities for which fair value is measured are disclosed in the financial statements are categorised within fair
value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The fair value
hierarchy is described as below:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2: Valuation techniques for which the lowest level inputs that are significant to the fair value measurement are
directly or indirectly observable.
Level 3: Valuation techniques for which the lowest level inputs that are significant to the fair value measurement are
unobservable.
5.17.3 For assets and liabilities that are recognised in the Balance sheet on a recurring basis, the company determines whether
transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each reporting period (i.e)
based on the lowest level input that is significant to the fair value measurement as a whole.
5.17.4 For the purpose of fair value disclosures, the company has determined the classes of assets and liabilities based on the nature,
characteristics and risks of the assets or liabilities and the level of the fair value hierarchy as explained above.
6. SIGNIFICANT ESTIMATES AND JUDGEMENTS
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosures, and the disclosure of
contingent liabilities. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed
on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the
revision effects only that period or in the period of the revision or future periods, if the revision affects both current and
future years.
Accordingly, the management has applied the following estimates / assumptions / judgements in preparation and presentation
of financial statements:
Property, Plant and Equipment, Intangible Assets and Investment Properties
The residual values and estimated useful life of PPEs, Intangible Assets and Investment Properties are assessed by technical
team duly reviewed by the management at each reporting date. Wherever the management believes that the assigned useful
life and residual value are appropriate, such recommendations are accepted and adopted for computation of depreciation/
amortisation. Also, management judgement is exercised for classifying the asset as investment properties or vice versa.
Revenue Recognition
Significant management judgement is exercised in determining the transaction price and discounts to customer which is based
on market factors namely demand and supply. The Company offers credit period to customers for which there is no financing
component.
Current Taxes
Calculations of income taxes for the current period are done based on applicable tax laws and management’s judgement by
evaluating positions taken in tax returns and interpretations of relevant provisions of law.
Deferred Tax Asset
Significant management judgement is exercised by reviewing the deferred tax assets at each reporting date to determine the
amount of deferred tax assets that can be retained / recognised, based upon the likely timing and the level of future taxable
profits together with future tax planning strategies.
Contingent Liabilities
Management judgement is exercised for estimating the possible outflow of resources, if any, in respect of contingencies /
claims / litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.
Impairment of Trade receivables
The impairment for financial assets are done based on assumptions about risk of default and expected loss rates. The
assumptions, selection of inputs for calculation of impairment are based on management judgement considering the past
history, market conditions and forward looking estimates at the end of each reporting date.
Impairment of Non-financial assets
The impairment of non-financial assets is determined based on estimation of recoverable amount of such assets. The
assumptions used in computing the recoverable amount are based on management judgement considering the timing of future
cash flows, discount rates and the risks specific to the asset.
Provisions
The timing of recognition requires application of judgement to existing facts and circumstances that may be subject to
change. The litigations and claims to which the company is exposed are assessed by the management and in certain cases
with the support of external experts. The amounts are determined by discounting the expected future cash flows at a pre-tax
rate that reflects the current market assessments of the time value of money and the risks specific to the liability.
Defined Benefit Plans and Other long term benefits
The cost of the defined benefit plan and other long term benefits, and the present value of such obligation are determined
by the independent actuarial valuer. Management believes that the assumptions used by the actuary in determination of the
discount rate, future salary increases, mortality rates and attrition rates are reasonable. Due to the complexities involved in
the valuation and its long term nature, this obligation is highly sensitive to changes in these assumptions.
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities could not be measured based on quoted prices in active
markets, management uses valuation techniques including the Discounted Cash Flow (DCF) model, to determine its fair value
the inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of
judgement is exercised in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit
risk and volatility.
Impairment of Investments in Subsidiaries /Associates
Significant management judgement is exercised in determining whether the investment in subsidiaries / associates are
impaired or not is on the basis of its nature of long term strategic investments and business projections.
Interests in other entities
Significant management judgement is exercised in determining the interests in other entities. The management believes that
wherever there is significant influence over certain companies belong to its group, such companies are treated as Associate
companies even though it holds less than 20% of the voting rights.
(iii) As per Companies (Share capital and Debentures) Amendment Rules 2019 notified on 16-08-2019, Debenture redemption
Reserve is not required to be created for privately placed debentures issued by listed companies. Since the Company has
issued debentures by way of private placement, the debenture redemption reserve is not created.
(iv) The transaction cost on issue of NCD is adjusted against NCD upon initial recognition and the same is amortised based on
Effective Interest Rate method over the tenure of the Borrowing based on Amortized Cost model in accordance with Ind AS
109. The un-amortised transaction cost adjusted against NCD as at the reporting date is '0.13 Cr (PY: 0.86 Cr).
b. Long term Borrowings from Banks are secured by pari-passu first charge on all movable Fixed Assets of the Company.
pending. Above amount is fully provided in the books of accounts.
41.2.3 Entry tax demand amounting to ' 0.14 Crores (PY: ' 2.05 Crores) have been disputed by the company and the company has
preferred appeals before appellate authorities in respect of these disallowances and the appeal are pending. This demand
'0.14 Crores (PY: 2.05 Crores) is provided in books of accounts.
41.2.4 The Government of West Bengal enacted “The West Bengal Tax on Entry of goods into Local Areas Act, 2012” and writ petitions
was filed by RIL challenging the validity of the said Act.
Department has filed appeal with Hon’ble High Court and Order has been passed by Hon’ble High Court favouring to
Government during the month of Jan 2025. Hence Company has filed appeal with Supreme Court Challenging the validity of
Entry Tax of West Bengal.
Meanwhile, Govt of West Bengal has announced Settlement of Dispute Scheme (SOD Scheme). The Company opted for SOD
Scheme and paid 75% of tax amount as stipulated and Company had withdrawn the appeal filed with Supreme Court
Excess provision created in the books to the tune of ' 7.86 Crores is reversed and taken as Exceptional Income Refer Note No.
38
41.2.5 GST demands amounting to '1.93 Crores (Previous Year: '2.86 Crores) have been disputed by the Company. Appeals have
been filed before the Deputy Commissioner/ Assistant Commissioner/Superintendent against various disallowances during
assessment and audit proceedings. The entire disputed amount of '1.93 Crores (Previous Year: ' 2.86 Crores) has been
provided for in the books of accounts. The balance amount of NIL (Previous Year: NIL) has not been acknowledged as a liability
by the Company. In the opinion of the management, no further tax liability is expected to arise and accordingly, no additional
provision has been considered necessary.
41.2.6 The company received a notice from RBI on memorandum of compounding on contravention in respect of delayed receipt
of funds from a subsidiary -Sri Ramco Roofing Pvt Ltd. and the company submitted the online application for compounding
the contravention for FY 2021-22. The delay was due to the fact that Sri Lanka was going through severe economic crisis
after Covid 19 epidemic and was facing acute shortage of US Dollars, despite the fact that Ramco Roofing had sufficient Bank
balances to remit this amount. However the company has received the amount of delayed remittance of USD 18,25,225 with
maximum of 10 months delay
The company is confident that the Compounding authority may consider it favourably with a nominal compounding amount
bearing in mind the genuineness of the transaction
41.2.7 Company received 3 different notices from the Department of Revenue Intelligence (DRI), Nhava Seva and Customs Kolkata
[ for an amount of ' 0.41 Crores excluding interest and penalty pertaining to the year 2009-10] alleging short payment of
customs duty to the extent of utilization of DEPB Scrips purchased in the open market by RIL and which DEPB scrips were
alleged to be fraudulent. In these notices, Company is only co-notices. The Company had denied the allegations made in the
notice against it, and explained facts with attendant evidences in so far as they relate to Company’s role is concerned and
also denied its obligation to pay the duty demanded in the notices vide replies filed. Company also availed of the personal
hearing opportunity in the adjudication proceedings, through appointed legal counsel, before the authorities at Mumbai and
Kolkata. However, no orders have been passed in these matters.
The Management is confident of resolving the matter in favour of the Company and hence no provision is considered necessary.
41.2.8 In respect of electricity matters related to the Textile Division, the Company has filed appeals/writ petitions amounting
to ' 2.92 Crores (PY: ' 2.92 Crores) concerning various issues. These matters are currently pending before the Tamil Nadu
Electricity Regulatory Commission (TNERC), the Honourable High Court, and the Honourable Supreme Court. The Company is
confident of a favourable outcome and, therefore, no provision has been made in the books of accounts.
41.2.9 Under the Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligations) Regulations, 2010,
consumers operating grid-connected captive power generating plants and open access consumers with a sanctioned demand
of more than 2 MVA are required to source a minimum of 0.5% of their energy requirement from solar sources. Non-compliant
entities must either purchase Renewable Energy Certificates (RECs) from the market at the rate of 1 REC per 1,000 units of
shortfall or deposit an equivalent amount in a designated fund. Although the Company uses wind energy generated from its
own wind farms, it has been excluded from fulfilling this obligation due to its wheeling and banking arrangement with TNEB.
Aggrieved by this exclusion, the Company, along with other affected producers, has approached the Honourable High Court of
Madras and obtained an interim stay on the implementation of the said regulation
41.2.10 The Company has commissioned windmills with the Electricity Board (EB) under a banking arrangement. For four of the Wind
Energy Generators (WEGs), the banking period expired in March (Three Windmills) and September (One Windmill) 2023.
The Company filed a case before the Madras High Court, which directed the EB to adjust the wind energy generated from
the said WEGs from March 2023 onwards. Following receipt of the court order, the Company approached the EB, and the
lapsed banking units were accordingly adjusted. Further, the Company entered into addendum agreements with TNGECL in
compliance with the directions of the Hon’ble High Court.
41.2.11 The Company made a representation to the Chairman of the Electricity Board (EB) seeking a tariff concession for establishing
a new industry at Arakkonam prior to 14.02.1997, under the scheme outlined in GO Ms.17 Energy (A2), which was active at
that time. The EB denied the concession.
Consequently, the Company filed a writ petition before the Hon’ble Madras High Court, seeking a refund of ' 0.08 Crores
along with interest up to April 2008 (' 0.15 Crores), aggregating to ' 0.23 Crores, with further interest at 18% per annum
till the date of payment. On 01.02.2019, the High Court disposed of the case, allowing the writ petition by setting aside
the EB’s order dated 04.11.2009. The EB was directed to reconsider the Company’s claim for the tariff concession after
providing an opportunity to submit documentary evidence. Pursuant to the court’s direction, the Company has made several
representations to the EB.
Subsequently, an order was received from TNEB, Vellore stating that the Company is not eligible for tariff concession on
the additional demand. Accordingly, the concession amount has been withdrawn and adjusted against the pending amount
receivable from TNEB towards sale of power to the Board.
The Company has submitted its acceptance letter to TNEB in this regard.
41.2.12 The Company had challenged the validity of the Government Order issued by Andhra Pradesh Central Power Distribution
Corporation Limited (APCPDCL), Government of Andhra Pradesh, whereby the electricity duty on energy sales to Commercial
and Industrial consumers was increased from '0.06 per unit to '1.00 per unit.
The Hon’ble High Court of Andhra Pradesh, vide its final order dated 26th June 2025, allowed the Company’s writ petition
and struck down the aforesaid Government Order. Pursuant thereto, the Company has become entitled to seek refund of
the excess electricity duty paid under the said Government Order. The Company had, during the relevant periods, paid the
electricity duty as billed and charged the same to the Statement of Profit and Loss.
However, the State of Andhra Pradesh has filed an appeal before the Hon’ble Supreme Court of India against the aforesaid
order of the Hon’ble High Court, which is pending adjudication.
41.2.13 The Company is eligible for incentives under the “Bihar Industrial Incentive Policy 2006” in respect of its Fibre Cement Plant
at Bihiya in the State of Bihar. During the year under review,
• We have recognised a sum of ' 0.10 Crores (PY: ' 0.10 Crores) due to fair valuation of Govt. Grants as per Ind AS.
• Incentive Scheme under GST regime from 1st July, 2017 has been announced by the Govt. of Bihar. Company has applied
for the same and is awaiting for approval from Govt.
43. DISCLOSURES PERTAINING TO SHARE BASED PAYMENTS AS PER IND AS 102
Employee Stock Option Schemes (ESOS)
The Company instituted Employee Stock Option Schemes (ESOS 2021) approved by shareholders at the Annual General Meeting
held on 19.08.2021. The Board of Directors and Nomination & Remuneration Committee granted 1,46,000 options to its
eligible employees under various ESOS schemes at its meeting held on January 20, 2022 and 146000 shares have been fully
exercised by respective employees within the period.
The Board of Directors and Nomination & Remuneration Committee granted further 32,500 options to its eligible employees
under ESOS 2021 - Plan A scheme at its meeting held on May 28, 2024. Each option entitles the option holder thereof to apply
for one equity share of the company, upon satisfaction of performance condition during the vesting period and payment of
exercise price during the exercise period. Options are granted for no consideration and carries no dividend or voting rights.
There are no market conditions attached to the grant / vesting of options. There are no cash settlement options alternatives.
The Company has recognized ' 0.12 Crore [PY: 0.64 Crore] as Employee stock options expense towards equity-settled share-
based transactions. There are no cash settlement options alternatives.
Other terms and conditions of the plan are tabled below:47. DISCLOSURE OF FAIR VALUE MEASUREMENTS
The fair values of financial assets and liabilities are 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. Fair value of cash and short-term
deposits, trade and other short-term receivables, trade payables, other current liabilities, short term loans from banks
and other financial instruments approximate their carrying amounts largely due to their short term maturities of these
instruments.
Fair value hierarchy
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:
Level 1: Quoted (Unadjusted) prices in active markets for identical assets or liabilities
Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either
directly or indirectly.
Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
market data.
The Board of Directors (BOD) has overall responsibility for the establishment and oversight of the Company’s risk management
framework and thus established a risk management policy to identify and analyses the risk faced by the Company. Risk
Management systems are reviewed by the BOD periodically to reflect changes in market conditions and the Company’s
activities. The Company through its training and management standards and procedures develop a disciplined and constructive
control environment in which all employees understand their roles and obligations. The Audit Committee oversees how
management monitors compliance with the Company’s risk management policies and procedures, and reviews the risk
management framework. The Audit committee is assisted in the oversight role by Internal Audit. Internal Audit undertakes
reviews of the risk management controls and procedures, the results of which are reported to the Audit Committee.
The Board of Directors regularly reviews these risks and approves the risk management policies, which covers the management
of these risks:
Credit Risk
Credit Risk is the risk of financial loss to the Company if the customer or counterparty to the financial instruments fails
to meet its contractual obligations and arises principally from the Company’s receivables, treasury operations and other
operations that are in the nature of lease.
Receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristic of each customer. The Company
extends credit to its customers in the normal course of business by considering the factors such as financial reliability of
customers. The Company evaluates the concentration of the risk with respect to trade receivables as low, as its customers
are located in several jurisdictions and operate in largely independent markets. The Company maintains adequate security
deposits from its customers in case of wholesale and retail segment. The exposures with the Government are generally
unsecured but they are considered as good. However, unsecured credits are extended based on creditworthiness of the
customers on case-to-case basis.
Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy
or failing to engage in a repayment plan with the company and where there is a probability of default, the company creates
a provision based on Expected Credit Loss for trade receivables under simplified approach as below:
Financial Instruments and Cash deposits
Investments of surplus funds are made only with the approved counterparties. The Company is presently exposed to counter
party risk relating to short term and medium-term deposits placed with banks, and also investments made in mutual funds.
The Company places its cash equivalents based on the creditworthiness of the financial institutions.
Liquidity Risk
Liquidity Risks are those risk that the Company will not be able to settle or meet its obligations on time or at reasonable
price. In the management of liquidity risk, the Company monitors and maintains a level of cash and cash equivalents deemed
adequate by the management to finance the company’s operations and to mitigate the effects of fluctuations in cash flows.
Fund Management
Due to the dynamic nature of the underlying business, the Company aims at maintaining flexibility in funding by keeping both
committed and uncommitted credit lines available. The Company has laid well defined policies and procedures facilitated by
robust information system for timely and qualitative decision making by the management including its day-to-day operations
Foreign Currency Risk
The Company’s exposure in USD and other foreign currency denominated transactions in connection with import of raw
material, capital goods and spares, besides exports of finished goods and borrowings in foreign currency, gives rise to exchange
rate fluctuation risk. The Company has following policies to mitigate this risk:
Cash flow and fair value interest rate risk
Interest rate risk arises from long term borrowings with variable rates which exposed the company to cash flow interest rate
risk. The Company’s fixed rate borrowing are carried at amortized cost and therefore are not subject to interest rate risk
as defined in Ind AS 107 since neither the carrying amount nor the future cash flows will fluctuate because of the change in
market interest rates. The Company is exposed to the evolution of interest rates and credit markets for its future refinancing,
which may result in a lower or higher cost of financing, which is mainly addressed through the management of the fixed/
floating ratio of financial liabilities. The Company constantly monitors credit markets to strategize a well-balanced maturity
profile in order to reduce both the risk of refinancing and large fluctuations of its financing cost. The Company believes that it
can source funds for both short term and long term at a competitive rate considering its strong fundamentals on its financial
position. Sensitivity on interest rate fluctuation.
For the purpose of the Company’s capital management, capital includes issued equity share capital and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is
to maximize the shareholders’ wealth.
The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the
requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by
total capital plus Debt.
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
There have been no breaches in the financial covenants of any interest-bearing loans/borrowing. The Company has been
consistently focusing on reduction in long term borrowings. There are no significant changes in the objectives, policies or
processes for managing capital during the years ended 31-03-2026 and 31-03-2025.
50. PROJECT REVENUE RECOGNITION
Contract revenue from Project activity on fixed price contracts is recognized when the outcome of the contract is ascertained
reliably, contract revenue is recognized at cost of work performed on the contract plus proportionate margin, using percentage
of completion method. Percentage of completion is determined based on work certified by the customer.
Disclosure as per Indian Accounting Standard - 11 in respect of projects in progress
[a] Contract Revenue during the year '2.04 Crores [PY: '1.21 Crores]
[b] Aggregate amount of cost incurred '1.75 Crores [PY: ' 0.94 Crores] and recognised Profit ' 0.29 Crores [PY: ' 0.28 Crores]
[c] Advances received [Outstanding] '0.25 Crores [PY: Nil]
[d] Retention Money [Outstanding] '0.24 Crores [PY: ' 0.25 Crores] *
[e] Gross Amount due from Customers for Contract Work [including Retention at (d) above] ' 0.38 Crores [PY: ' 0.49 Crores]
[f] Gross Amount due to Customers for Contract Work [other than advances at (c) above] - Nil
[g] Unbilled revenue - Nil
* Retention Money [Outstanding] is after adjusting amounts released against furnishing of Bank Guarantees.
Unbilled Revenue represents revenue recognised based on percentage of completion method over and above the amount due
from the customers as per the agreed payment plans.
e. Unbilled Revenue Ageing Schedule
The Company do not have any such transaction.
f. Undisclosed Income
The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or
disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.
g. CSR Disclosure:
Disclosure has been given in Note no:36(b) and (c) of note on accounts.
h. Compliance with approved Scheme(s) of arrangements.
The Company do not have any such approved Scheme(s) of arrangements.
i. Relationship with Struck off Companies
The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section
560 of Companies Act, 1956 considering the information available with the Company.
j. Details of Crypto Currency or Virtual Currency
The Company did not trade or invest in Crypto Currency or virtual currency during the financial year.
k. Disclosure on loans / advance to directors / KMP / related parties:
Disclosure has given in note on accounts Note no:10 (a) and (b) as per the Schedule III.
l. Benami Property
The Company did not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.
m. The Company has neither advanced or loaned or invested, nor received any fund, to or from, any other persons or
entities including foreign entities (intermediaries) with the understanding 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 or
ii. Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
Formula adopted for above Ratios:
Current Ratio = Total Current Assets / Total Current Liabilities
(a) Debt-Equity Ratio = Total Debt / Total Equity
(b) Debt Service Coverage Ratio = (EBITDA - Current Tax) / (Principal Repayment Gross Interest)
(c) Return on Equity Ratio = Total Comprehensive Income / Average Total Equity
(d) Inventory Turnover Ratio = (Average Inventory days) = 365 / (Net Revenue / Average Inventories)
(e) Trade receivable Turnover Ratio = (Average Receivables days) = 365 (Net Revenue / Average Trade receivables)
(f) Trade payable Turnover Ratio = (Average Payables days) = 365 (Net Revenue / Average Trade payables)
(g) Net Capital Turnover Ratio = (Inventory Turnover Ratio Trade Receivable Turnover Ratio - Trade Payable Ratio)
(h) Net Profit Ratio = Net Profit / Total Income
(i) Return on Capital Employed = (Total Comprehensive Income Interest) / (Average of (Equity Total Debt))
(j) Return on Investment (Assets) = Total Comprehensive Income / Average Total Assets
Reasons for Variation if more than 25%
The Decrease in Debt-Equity Ratio by 35% from 0.20 times in previous year to 0.13 times in current year is mainly due to
decrease in borrowing.
The Decrease in Debt Service Coverage Ratio by 46% from 5.62 times in previous year to 3.03 times in current year is mainly
due to increase in loan repayment.
53. DISCLOSURES ON LEASES
COMPANY AS A LESSEE
Nature of leasing activities
The Company has entered into operating lease on certain assets i.e land and building. Lease rentals are determined based
on agreed terms. There is escalation clause in certain lease agreements after a specified period and no restriction imposed
by the lease arrangements.
Notes:-
a) Depreciation charge for Right-of-Use Asset include capitalized portion of ' 0.05 Crores (PY: ' 0.05 Crores) and Interest
on lease liabilities include capitalized portion of ' 0.18 Crores (PY: ' 0.19 Crores).
b) Expenses relating to Short-term lease include leases whose lease term ends within 12 months and leases whose non¬
cancellable period is less than 12 months, irrespective of the actual tenure agreed as per the arrangement
COMPANY AS A LESSOR
The Company has not entered into operating leases i.e., Land & Building and into any Finance leases
56. THE CODE ON SOCIAL SECURITY, 2020, THE INDUSTRIAL RELATIONS CODE, 2020, THE CODE ON WAGES, 2019 AND THE
OCCUPATIONAL SAFETY, HEALTH AND WORKING CONDITIONS CODE, 2020
On 21-11-2025, the Central Government notified the Code on Social Security, 2020, the Industrial Relations Code, 2020, the
Code on Wages 2019 and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the
“Labour Codes”), subsuming various existing labour and industrial laws governing employee benefits during employment
and post employment period. The Ministry of Labour & Employment has notified the Central Rules and FAQs to facilitate
assessment of the financial impact arising from these regulatory changes. Accordingly, the Company has assessed the financial
implications based on an actuarial valuation in accordance with Ind AS 19 Employee Benefits read with FAQ issued by Institute
of Chartered Accountants of India (ICAI). Based on such assessment, the Company is of the view that the financial impact
of these changes is not material and, therefore, has not been presented as an exceptional item, though the impact has
been recognised under Employee Benefits Expenses in the Statement of Profit and Loss for the year ended March 31, 2026.
The Company continue to monitor the finalisation of State Rules and any further clarifications issued by the Government in
relation to the Labour Codes and will appropriately give effect to such changes in the books, as and when required.
57. IMPACT OF GLOBAL GEOPOLITICAL CONFLICTS
The Company has considered the uncertainties arising from the ongoing geopolitical conflicts, including the conflict between
the US and Iran, the conflict in the Middle East involving Israel and Iran, and the military conflict between Russia and Ukraine,
in assessing the recoverability of receivables, inventories, intangible assets, investments, and other assets. The outcome of
these conflicts remains difficult to predict and may have an adverse impact on the macroeconomic environment, including
volatility in energy prices, disruptions to global supply chains, foreign exchange fluctuations, and other indirect macro-level
impacts on the industry. Management has considered all potential impacts of these conflicts, including adherence to global
sanctions and other restrictive measures, and any retaliatory actions that may follow. For this purpose, the Company has
considered internal and external sources of information up to the date of approval of these financial statements. Based on its
judgments, estimates, and assumptions, the Company expects to fully recover the carrying amount of receivables, inventories,
intangible assets, investments, and other assets. Accordingly, the impact of these conflicts on the Company’s operations and
financial condition for the year ended 31st March 2026, was not material. The Company will continue to closely monitor any
material changes to future economic conditions and assess their impact on its financial position on an ongoing basis.
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