3.11 Provisions
A provision is recognized when the Company has a
present obligation as a result of past event and it is
probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation and a reliable estimate can be made of
the amount of the obligation.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects current market assessments of
the time value of money and the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as
a finance cost.
Provisions are not discounted to their present value
and are determined based on the best estimate
required to settle the obligation at the reporting date.
These estimates are reviewed at each reporting date
and adjusted to reflect the current best estimates.
3.12 Contingent Liability
The Company uses significant judgements to
assess contingent liabilities. Contingent liabilities
are disclosed when there is a possible obligation
arising from past events, the existence of which
will be confirmed only on the occurrence or non¬
occurrence of one or more uncertain future events
not wholly within the control of the Company or a
present obligation that arises from past events where
it is either not probable that an outflow of resources
will be required to settle the obligation or a reliable
estimate of the amount cannot be made.
3.13 Contingent Asset
A contingent asset is a possible asset that arises
from past events and whose existence will be
confirmed only on occurrence or non-occurrence
of one or more uncertain future events not wholly
within the control of the Company. The Company
does not recognize a contingent asset but discloses
its existence in the financial statements.
3.14 Foreign Currencya Initial recognition
Foreign currency transactions are recorded
in the functional currency, by applying to the
foreign currency amount to the exchange rate
between the functional currency and the foreign
currency at the date of the transaction.
b Conversion
Foreign currency monetary items are
retranslated using the exchange rate prevailing
at the reporting date. Non-monetary items,
which are measured in terms of historical
cost denominated in a foreign currency, are
reported using the exchange rate at the date of
the transaction.
c Exchange difference
All exchange differences are recognized as
income or as expenses in the year in which
they arise.
3.15 Cash and cash equivalent
The Company considers all highly liquid investments,
which are readily convertible into known amounts
of cash that are subject to an insignificant risk of
change in value, to be cash equivalents. Cash and
cash equivalents consist of balances with banks and
which are unrestricted for withdrawal and usage.
3.16 Earnings per share
Basic earnings per share is calculated by dividing the
net profit or loss for the year attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year.
The Company did not have any potentially dilutive
securities in any of the periods presented.
3.17 Segment Reporting
An operating segment is component of the Company
that engages in the business activity from which the
Company earns revenues and incurs expenses, for
which discrete financial information is available and
whose operating results are regularly reviewed by
the chief operating decision maker, in deciding about
resources to be allocated to the segment and assess
its performance. The Company's chief operating
decision maker is the Managing Director.
Assets and liabilities that are directly attributable
or allocable to segments are disclosed under each
reportable segment. All other assets and liabilities
are disclosed as un-allocable.
Revenue and expenses directly attributable to
segments are reported under each reportable
segment. All other expenses which are not
attributable or allocable to segments have been
disclosed as un-allocable expenses.
The Company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the financial statements of
the Company as a whole.
3.18 Cash Flow Statement
The statement of cash flows has been prepared under
indirect method, whereby profit or loss is adjusted
for the effects of transactions of a non-cash nature,
any deferrals or accruals of past or future operating
cash receipts or payments and items of income or
expense associated with investing or financing cash
flows. The cash flows from operating, investing and
financing activities of the Company are segregated.
The Company considers all highly liquid investments
that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of
changes in value to be cash equivalents.
3.19 Exceptional items
Exceptional items include income or expenses that
are considered to be part of ordinary activities,
however, are of such significance and nature that
separate disclosure enables the user of the financial
statements to understand the impact in a more
meaningful manner. Exceptional items are identified
by virtue of either their size or nature so as to
facilitate comparison with prior periods and to assess
underlying trends in the financial performance of
the Company.
3.20 Events after reporting date
Where events occurring after the Balance Sheet
date provide evidence of conditions that existed at
the end of the reporting period, the impact of such
events is adjusted within the financial statements.
Otherwise, events after the Balance Sheet date of
material size or nature are only disclosed.
4 Recent accounting pronouncements:
Recent pronouncements Ministry of Corporate Affairs
(“MCA") notifies new standards or amendments to
the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time
to time.
In May 2025, MCA notified amendments to Ind AS
21 - The Effects of Changes in Foreign Exchange
Rates, applicable w.e.f. April 1, 2025. The Company
has reviewed the amendment and based on its
evaluation has determined that it does not have any
significant impact in its financial statements.
In August 2025, MCA notified the following
amendments to:
1. Ind AS 1, Presentation of Financial Statements,
applicable w.e.f. April 1, 2025 - The amendment
relates to classification of liabilities as current
or non-current and non-current liabilities
with covenants. In the context of classifying a
liability as current, it removes the requirement
of existence of a right to defer settlement for
at least 12 months after the reporting date and
instead requires that the said right should exist
on the reporting date and have substance.
The amendment also introduces guidance on
classification of liabilities with covenants. The
Company has no impact of these amendments
in its classification criteria of current and non¬
current liabilities.
2. Ind AS 7, Statement of Cash Flows and Ind
AS 107, Financial Instruments: Disclosures,
applicable w.e.f. April 1, 2025 - The amendment
in Ind AS 7 requires to inform users of financial
statements of the existence of supplier finance
arrangements and explain the nature of the
arrangements, the carrying amount of liabilities
and the range of payment due dates. Ind AS
107 has been amended to add supplier finance
arrangements as a factor that may cause
concentration of liquidity risk. The Company
has reviewed the amendment and based on its
evaluation has determined that it does not have
any significant impact in its financial statements.
3. Ind AS 12, International Tax Reform - Pillar Two
Model Rules applicable immediately - The
amendments provide a temporary mandatory
relief from deferred tax accounting for top-up
tax and disclose that they have applied the relief.
The Company has reviewed the amendment
and based on its evaluation has determined
that it does not have any significant impact in
its financial statements.
d Rights, preferences and restrictions :
i The Company has only one class of equity shares referred to as equity shares having a par value of ' 10.
Each holder of equity share is entitled to one vote per share.
ii Dividends, if any, is declared and paid in Indian Rupees. The dividend, if any, proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
iii In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any
of the remaining assets of the Company, after distribution of all preferential amounts. However, no such
preferential amounts exist currently. The distribution will be in proportion to the number of equity shares
held by the shareholders.
Nature and purpose of reserves
a Capital reserve
The Company recognises capital reserves on cancellation of partly paid up own equity shares.
b Securities premium
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance
with the provisions of section 52 of the Companies Act, 2013.
c General reserve
The general reserve is a free reserve which is used from time to time to transfer profits from retained earnings
for appropriation purposes.
d Retained Earnings
Retained Earnings are the profits that the Company has earned net of amount distributed as dividend and
including adjustments on account of transition to IND AS.
e Equity Instrument through Other Comprehensive Income
The Company has elected to recognise changes in the fair value of investments in equity shares of the
Company, wherein KMP having control, in other comprehensive income. These changes are accumulated
through Other Comprehensive reserve within the equity. The Company transfers amounts from this reserve
to retained earnings when the relevant equity securities are derecognised.
19 Dividends
The Board of Directors at the meeting held on May 29, 2026 has recommended Final Dividend of ' 5.00/- per
equity share of ' 10 each, and Final Dividend (F.Y 2024-25) of ' 2.50/- per equity share of Rs.10 each paid during
FY 2025-26.
Disclosure in respect of Micro and Small Enterprises:
i The principal amount and the interest due thereon remaining unpaid to any supplier at the end of each
accounting year
ii The amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises
Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed
day during each accounting year
iii The amount of interest due and payable for the period of delay in making payment (which have been paid
but beyond the appointed day during the year) but without adding the interest specified under the Micro,
Small and Medium Enterprises Development Act, 2006;
iv The amount of interest accrued and remaining unpaid at the end of each accounting year
v The amount of further interest remaining due and payable even in the succeeding years, until such date
when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a
deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006.
The above information has been determined in respect of parties to the extent to which they could be
identified as Micro and Small Enterprise on the basis of information available with the Company.
* Benefit ceiling is applied only for employees other than Managing Director & Chairman & Managing Director
**In case of employees with age above the retirement age mentioned in Plan features, the retirement is assumed
to happen immediately and valuation is done accordingly.
In accordance with Indian law, the Company operate a scheme of gratuity which is a defined benefit plan. The
gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment
or on termination of employment in accordance with the provisions under the Code on Social Security, 2020 or
as per the Company Scheme, as applicable. Vesting occurs upon completion of contractual period of continuous
years of service as defined in the Code on Social Security, 2020. The Company manages the plan through a trust.
Trustees administer contributions made to the trust.
28.4 The trust is responsible for the governance of the plan.
28.5 Risk to the Plan
Following are the risk to which the plan exposes the entity :
A Actuarial Risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will
result into an increase in Obligation at a rate that is higher than expected.
Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption
then the Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the
death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative
values of the assumed salary growth and discount rate.
Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption
then the Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the
benefits are vested as at the resignation date.
B Investment Risk:
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer
may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is
independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded
status if there are significant changes in the discount rate during the inter-valuation period.
C Liquidity Risk:
Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of
benefits. If some of such employees resign / retire from the Company there can be strain on the cash flows.
D Market Risk:
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects
the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the
plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and
hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.
E Legislative Risk:
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the
legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies
to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit
Obligation and the same will have to be recognized immediately in the year when any such amendment
is effective.
Limitation of method used for sensitivity analysis :
Sensitivity analysis produces the results by varying a single parameter & keeping all the other parameters
unchanged. Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence,
the results may vary if two or more variables are changed. There are no changes from the previous period in the
methods and assumptions used in preparing the sensitivity analysis. The Method used does not indicate anything
about the likelihood of the change in any parameter and the extent of the change if any.
28.14 Details of Asset- Liability Matching Strategy
There are no minimum funding requirements for a Gratuity benefits plan in India and there is no compulsion on
the part of the Company to fully or partially pre-fund the liabilities under the Plan.
35.2 The Fair value of current financial assets and current trade payables measured at amortized cost, are considered
to be the same as their carrying amount as they are of short term nature. Hence fair value hierarchy is not given
for the same.
35.3 The carrying amount of non - current financial assets and non - current financial liabilities measured at amortized
cost in the financial statements are a reasonable approximation of their fair values since the Company does not
anticipate that the carrying amounts would be significantly different from the values that would eventually be
received or settled. Hence, fair value hierarchy is not given for the same.
35.4 There are no transfer between level 1, level 2 and level 3 during the year.
35.5 Valuation technique and observable inputs used to determine fair value in level 2
The fair values of investments in Mutual Fund units is based on the net asset value ('NAV') as stated by the issuers
of these Mutual Fund units in the published statements as at Balance Sheet date. NAV represents the price at
which the issuer will issue further units of Mutual Fund and the price at which issuers will redeem such units from
the investors.
The fair value of investment in investment property are based on valuation report.
35.6 The fair value of investment in Equity Shares of Applewoods Estate private Limited is based on cost approach.
Fair value of net assets used as unobservable input to determine the fair value. 1% change in the unobservable
input used in fair valuation has insignificant impact.
Reconciliation of level 3 fair value measurement is as follows:
36 Financial Risk Management
The Company's activities expose it to variety of financial risks : market risk, credit risk and liquidity risk. The
Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse
effects on its financial performance. The Board of Directors has overall responsibility for the establishment
and oversight of the Company's risk management framework. The Board of Directors has established a risk
management policy to identify and analyse the risks faced by the Company, to set appropriate risk limits and
controls, and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to
reflect changes in market conditions and the Company's activities. The Board of Directors oversee compliance
with the Company's risk management policies and procedures, and reviews the risk management framework.
A Market risk
The 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 currency risk, interest risk and other price risk.
i Foreign Currency Risk
Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rate. The Company is exposed to foreign currency risk due to import
of materials. The Company measures risk through sensitivity analysis. As on March 31, 2026 no material
outstanding amount is payable for purchase of imported material.
ii Interest rate risk
The Company's investments are primarily in fixed rate interest bearing investments. Hence, the Company is
not significantly exposed to interest rate risk.
ii Other Price risk
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices (other than those arising from interest rate risk or currency risk). The Company
is exposed to price risk mainly because of investments in mutual funds and equity share classified as fair
value through profit and loss. The Company measures risk through sensitivity analysis. The Company's risk
management policy is to mitigate the risk by investments in diversified mutual funds.
The Company's exposure to price risk due to investments in mutual fund and Equity instruments are as follows:
B Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial assets.
The Company's principal source of liquidity are cash and cash equivalents and the cash flow that is generated
from operations. The Company consistently generated sufficient cash flows from operations to meet its financial
obligations as and when they fall due. Hence no liquidity risk is perceived.
C Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing
to discharge an obligation. Credit risk encompasses both, the direct risk of default and the risk of deterioration
of credit worthiness.
Credit risk arises primarily from financial assets such as trade receivables, investments in mutual funds, equity
share, cash and cash equivalent and other balances with banks.
In respect of trade receivables, credit risk is being managed by the Company through credit approvals, establishing
credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit
terms in the normal course of business. All trade receivables are also reviewed and assessed for default on a
regular basis. The concentration of credit risk is limited due to the fact that the customer base is large. There is
no customer representing more that 10% of total balance of trade receivables.
Credit risk arising from investment in mutual funds, equity share, cash and cash equivalent and other balances
with bank is limited as the counterparties are banks and recognised financial institution with high credit ratings.
The maximum exposure to the credit risk at the reporting date from trade receivables amounting to '4331.45
lakhs as on March 31, 2026 and ' 4563.45 lakhs as on March 31, 2025.
D Derivative financial instruments
The Company uses derivative instruments as part of its management of exposure to fluctuations in commodity
prices. The Company does not acquire or issue derivative financial instruments for speculative purposes. The
Company does not enter into complex derivative transactions to manage commodity risks.
The fair values of all derivatives are separately recorded in the Standalone balance sheet within current and
noncurrent assets and liabilities.
Derivatives that are designated as hedges are classified as current or non-current depending on the maturity of
the derivative.
The use of derivatives can give rise to credit and market risk. The Company tries to control credit risk as far as
possible by only entering into contracts. The use of derivative instruments is subject to limits, authorities and regular
monitoring by appropriate levels of management. The limits, authorities and monitoring systems are periodically
reviewed by management and the Board. The market risk on derivatives is mitigated by changes in the valuation
of the underlying assets, liabilities or transactions, as derivatives are used only for risk management purposes.
E Capital Management
For the purpose of the Company's capital management, capital includes issued equity capital, share premium
and all other reserves attributable to the equity holders of the Company. The Company's objective for capital
management is to maximize shareholder value and safeguard business continuity. The Company determines
the capital requirement based on annual operating plans and other strategic plans. The funding requirements
are met through equity and operating cash flows. The Company is not subject to any externally imposed
Capital requirments.
38 Details of Loan given, Investment made and Guarantee given covered under section 186 (4) of the
Companies Act, 2013
Loans given and investments made are shown under the respective heads.
Loans have been utilised by the recipient for their business purpose.
There are no corporate guarantees given by the Company in respect of loans as at March 31, 2026.
40 CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE
As per Section 135 of the Companies Act, 2013, a Company needs to spend at least 2% of its average net profit
for the immediately preceding three financial years on corporate social responsibility (CSR) activities. A CSR
committee has been formed by the Company as per the Act. CSR expenditure includes the following:
43 ADDITIONAL REGULATORY INFORMATION DISCLOSURES43.1 Loans and advances granted to specified person:
The Company has not given any loans and advances in nature of loan to promoters, directors, KMPs and
related parties.
43.2 Relationship with struck off companies:
The Company does not have any transaction and balance outstanding with struck off companies.
43.3 Wilful Defaulter
The Company is not declared as wilful defaulter by any bank or financial institution or other lender.
43.4 Utilisation of borrowed funds
The Company has not taken any borrowings from Banks / Financial Institutions during the period.
43.5 Registration of charges or satisfaction with Registrar of Companies (ROC)
During the year, no charge or satisfaction is to be registered with ROC beyond statutory period.
43.6 Details of Benami Property held
The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and rules made thereunder, hence no proceedings initiated or pending against the Company under the said
Act and Rules.
43.7 Utilisation of borrowed funds, share premium and other funds
The Company has not given any advance or loan or invested funds from borrowed funds or share premium or
any other sources with the understanding that intermediary would directly or indirectly lend or invest in other
person or equity identified in any manner whatsoever by or on behalf of the Company as ultimate beneficiaries
or provide any guarantee or security or the like to on behalf of ultimate beneficiaries.
The Company has not received any fund from any person or entity with the understanding that the Company
would directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on
behalf of the funding party (ultimate beneficiary) or provided any guarantee or security or the like on behalf of
the ultimate beneficiary.
43.8 Compliance with number of layers of companies
In respect of Investment in subsidiary, the Company has complied with the number of layers prescribed under
clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restrictions on number of Layers)
Rules, 2017.
44 ADDITIONAL DISCLOSURES44.1 Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
44.2 Undisclosed Income
There is no transaction, which has not been recorded in books of accounts, that has been surrendered or disclosed
as income during the year in tax assessments under the Income Tax Act, 1961.
|