a) Refer note 46 for related party transactions and balances.
b) As per the order of Hon’ble High Courts of Calcutta and Delhi in accordance with the Scheme of arrangement under Section 391-394 of the Companies Act, 1956 between Shalimar Paints Limited, its subsidiary company, Shalimar Adhunik Nirman Private Limited (SANL), and their respective shareholders and creditors, the Company transferred its Real Estate Division, consisting fixed assets and current assets valued at Rs. 5.77 crore (inclusive of stamp duty on land) to SANL. Out of the said consideration money, SANL has issued preference shares amounting to Rs. 0.50 crore. The balance consideration of Rs. 5.27 crore shall be discharged by payment in cash. Further, as per the above-mentioned arrangement, all debts, duties, undertakings, liabilities and obligations (hereinafter referred to as ‘obligations’) incurred by the Company in connection with the Real Estate Division on or after the appointed date shall be deemed to have been raised, used, incurred for and on behalf of SANL. This has resulted in the additional loan of Rs. 3.08 crore (31 March 2025: Rs. 3.01 crore), including interest, to SANL. During the year, SANL repaid Rs. 2 crore against the outstanding balance. Both the balance consideration and obligations have been included and presented in the investments.
Transferred trade receivables
The carrying amounts of the trade receivables include receivables which are subject to a factoring arrangement by the Company where it has retained significant risks and rewards of receivables. Under this arrangement, the Company has sold trade receivables to the financial institution in exchange for cash proceeds. The Company therefore continues to recognise the transferred assets in their entirety in its balance sheet. Consequently, the proceeds received from transfer are recorded as loans from financial institutions and classified under short-term borrowings. The Company considers that the receivables continues to be held as part of ‘held to collect business model’ and hence continues measuring them at amortised cost. The carrying amount of the associated liabilities as at the reporting date amounts to Rs. 17.81 crore (31 March 2025: 14.86 crore).
i. Securities premium
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.
ii. Share options outstanding account
The above reserve relates to the share options granted by the Company to its employees under its employee share option plan. Further information about share-based payments to employees is set out in note 47
iii. General reserve
The above reserve relates to annual transfer of net income at a specified percentage in accordance with the Companies (T ransfer of Profits to Reserve) Rules, 1975. Consequent to introduction of the Companies Act, 2013, there is no such requirement to mandatorily transfer a specified percentage of the net profit to general reserve.
iv. Retained earnings
Retained earnings are created from the profit/ loss of the Company, as adjusted for distributions to owners, transfers to other reserves, etc.
v. Revaluation reserve
Revaluation reserve is on account of revaluation of land at various locations and other assets at the time of Ind AS transition.
vi. Capital reserve
The capital reserve has been created through transfer of the equity portion of the optionally convertible debentures, on their repayment. It is not available for distribution to shareholders as dividend.
Nature of security:(a) IDFC Term loanTerm loan of Rs. Nil crore (31 March 2025: Rs. 17.19 crore) availed from IDFC First Bank is secured by:
1. Exclusive charge on commercial plot in Gurugram valued at Rs 51 crore,
2. First pari - passu charge on assets created out of this term loan;
3. Subservient charge on current assets and movable fixed assets;
4. DSRA equivalent to 2 quarter’s principal and interest payment; and
5. Corporate guarantee of Shalimar Adhunik Nirman Limited.
(b) SBI - GECL 2Working Capital Term loan (WCTL) of Rs. Nil crore (31 March 2025: Rs. 1.19 crore) availed from State Bank of India is secured by:
Primary - extension of Hypothecation 2nd charge on entire current assets of the Company on pari-passu basis with other banks under consortium banking arrangements.
Collateral
Extension of second charge on fixed assets of the company on pari- passu basis with other consortium members (by way of EM on Land & Bldg. and hypothecation charge on other fixed assets and plant and machinery situated at the Company’s factory at Gat No.121 (1,850 sq mt), 126 (3,300 sq mt), 127 (16,500 sq mt), 132 (4,500 sq mt), 133 (20,500 sq mt), 134 (8,000 sq mt) & 141 (7,550 sq mt) situated at Village Gonde Dumala, Taluka Igatpuri, District Nashik, in the Registration District and Sub District of Igatpuri, standing in the name of the Company. (Total Land area: 62,200 sq mt).
Extension of EM pari passu 2nd charge with consortium members on the entire fixed assets and Land & Building at Survey Nos.1AIB (3.49 acres), 3/2 (3.32 acres), 3/1 (1.50 acres), 15/1A(0.28 acre), 1511B (0.16 acre), 15/1C (0.14 acre), No.19, Chinnapuliyur Village, Gummidipoondi Taluka, Thiruvallur District, Tamilnadu Chinnapuliyur, Thiruvallur, Tamil Nadu, 600040, (Semi Urban), Admeasuring Total Area : 8.89 acres,
Extension of pari passu 2nd charge with consortium on the Plant & Machinery of the Company at Howrah Factory.
Extension of Mortgage and Pari-passu 2nd charge with the consortium members (1 st charge is with Religare Finvest) on the entire fixed assets at A1 & A2, UPSIDC Industrial Area, District Bulandsahar, Sikandarabad Land Admeasuring : 41,242 sq mt
(c) UBI GECL 2Term loan of Rs. 0.29 crore (31 March 2025: Rs. 1.09 crore) availed from Union Bank of India and Union Bank of India (GECL) is secured by:
(i) 2nd charge on the immovable properties of the Company situated at A1, A2 UPSIDC Industrial area, Sikandrabad, Bulandsahar, UP.
(ii) 2nd charge on entire movable fixed assets of the Company situated at A1, A2 UPSIDC Industrial area, Sikandrabad, Bulandsahar, UP.
(d) PNB GECL 2Working Capital Term loan (WCTL) of Rs. Nil crore (31 March 2025: Rs. 0.57 crore) availed from Punjab National Bank is secured by:
Primary - Hypothecation 2nd charge on the security of raw materials, SIP, finished goods stores, spares, receivables and all other current assets. Our charge would rank pari-passu first charge with other members of the consortium.
Collateral
(i) Pari passu 2nd hypothecation charge on factory land and building of the Company with other consortium members, situated at the Company’s factory at Gat No.121 (1850 sq mt), 126 (3,300 sq mt), 127 (16,500 sq mt), 132 (4,500 sq mt), 133 (20,500 sq mt), 134 (8,000 sq mt) & 141 (7,550 sq mt) situated at Village Gonde Dumala, Taluka Igatpuri, District Nashik, in the Registration District and Sub District of Igatpuri, standing in the name of the Company. (total land area: 62,200 sq mt)
(ii) Pari passu 2nd charge with other consortium member banks over plant & machinery at the Nashik Plant.
(iii) Pari passu 2nd hypothecation charge with consortium on the plant and machinery of the Company at Howrah factory.
(iv) Pari passu second hypothecation charge with consortium members on the entire fixed assets and land and building at Survey Nos.1 A1B (3.49 acres), 3/2 (3.32 acres), 3/1(1.50 acres), 15/1A(0.28 acre), 15/1B (0.16 acre), 15/1C (0.14 acre), No.19, Chinnapuliyur Village, Gummidipoondi Taluka, Thiruvallur District, Tamilnadu, Chinnapuliyur, Thiruvallur, Tamil Nadu, 600040, (Semi Urban), admeasuring total area: 8.89 acres.
(v) Pari passu second hypothecation charge with the consortium members on the entire fixed assets at A1 & A2, UPSIDC Industrial Area, District Bulandsahar, Sikandrabad Admeasuring: 41,242 sq mt land.
These cash credit and working capital demand loan facilities are secured by:
(1) Primary security
Hypothecation 1st charge on the security of raw materials, SIP, finished goods stores, spares, receivables and all other
current assets. Our charge would rank pari-passu first charge with other members of the consortium.
(2) Collateral security:
(i) Pari Passu 1 st Charge with other consortium member Banks on factory land and building of the company situated at at Gat No.121 (1850 sq mt), 126 (3300 sq mt), 127 (16500 sq mt), 132 (4500 sq mt), 133 (20500 sq mt), 134 (8000 sq rot) & 141 (7550 sq mt) situated at Village Gonde Dumala, Taluka Igatpuri, District Nashik, in the Registration District and Sub District of Igatpuri, standing in the name of the Company. (Total Land area: 62200 s .mt
(ii) Pari Passu 1 st Charge with other consortium member Banks over lant & machine at the Nashik Plant.
(iii) Hypothecation & Pari passu 1 st Charge other consortium member Banks on Plant & Machinery of the Company at Howrah Factory
(iv) Pari passu 1 st charge with consortium members on the entire fixed assets and Land & Building at Survey Nos. IA 1B (3.49 acres), 3/2 (3.32 acres), 3/1 (1.50 acres), 15/1A(O.28 acre), 15/1B (0.16 acre), 15/1C (0.14 acre), No. 19, Chinnapuliyur Village, Gummidipoondi Taluka, Thiruvallur District, Tamilnadu , Chinnapuliyur, Thiruvallur, Tamil Nadu, 600040, (Semi Urban), Admeasurin Total Area : 8.89 Acres.
(v) Pari-passu 1 st charge with the consortium members on the entire fixed assets at Al & A2, UPSIDC Industrial Area, District Bulandsahar, Sikandarabad Land Admeasurin : 41242 s mt.
Factored receivables are secured by:
Corporate guarantee given by Holding Company.
Bill discounting:
The Company has availed letter of credit (‘LCs’) facility from State Bank of India Limited and Punjab National Bank Limited for
payment to its vendors, against which the monies were yet to be paid by the banks as at 31 March 2026 and 31 March 2025.
Amount of facilities availed as at 31 March 2026 and 31 March 2025 are:
(e) Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract liabilities are on account of the advance payment received from customer for which performance obligation has not yet been completed. The performance obligation is satisfied when control of the goods or services are transferred to the customers based on the contractual terms. The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter duration. Further, there are no contracts for sale of services wherein, performance obligation is unsatisfied to which transaction price has been allocated.
Payment terms with customers vary depending upon the contractual terms of each contract and generally falls in the range of 0 to 120 days from the completion of performance obligation.
The Company has reviewed all its pending litigations and proceedings and has adequately considered provision made and disclosed as contingent liabilities as applicable, in these standalone financial statements. The management believes that with respect to litigation disclosed as contingent liability will not require outflow of resources embodying economic benefits and will not have a material adverse effect upon the results of the operations, cash flows or financial condition of the Company.
41 Gratuity and other post employment benefit plans :a) Defined contribution plans
Contribution to defined contribution plans, recognised as expense for the year is as under:Employer’s contribution to provident and other funds Rs. 2.78 crore (31 March 2025: Rs. 3.47 crore)
b) Defined benefit plan (Gratuity)
The Company operates a defined benefit gratuity plan for its employees in India in accordance with the Payment of Gratuity Act, 1972.
c) Other benefits (Compensated absences)
The employees of the Company are entitled to leaves as per the leave policy of the Company. Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised based on actuarial valuation. The expense related to compensated absences are recognised in standalone statement of profit and loss as employee benefits expense. As the Company does not have an unconditional right to defer settlement for any of the leave obligations, it has disclosed the amount as current liabilities.
The Government of India, on 21 November 2025, notified implementation of four new labour codes — Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health and Working Conditions Code (2020) (hereinafter referred to as “the New Labour Codes”).
The New Labour Codes prescribe an uniform definition of the term ‘wages’, which is also relevant for determination of postemployment benefits including gratuity to all employees. In accordance with the definition, wages means all remuneration including basic pay, dearness allowance and retaining allowance but does not include certain specified items forming part of remuneration and in the event the quantum of those specified items exceed 50% of total remuneration, such excess is deemed to be considered as wages.
The revised definition of wages has resulted in an increase in gratuity obligation of Rs. 4.29 crore and Rs. 0.31 crore in respect of compensated absences in respect of services rendered in prior periods, and the Company has treated such incremental impact as past service cost and recognised under ‘Exceptional Items’ immediately in the statement of profit and loss in the current year in accordance with Ind AS 19, Employee Benefits.
The Company will continue to monitor finalisation of rules and clarifications from government and would provide appropriate accounting effect on the basis of such developments as needed.
IX Description of risk exposures:
Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over
time. Thus, the Company is exposed to various risks as follows -
A) Salary Escalation Risk- The present value of the defined benefit plans calculated with the assumptions of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determined the present value of obligation will have a bearing on the plan’s liability.
B) Interest Rate Risk - The plan exposes the Company to the risk of decrease in interest rates. A decrease in interest rate will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.
C) Liquidity Risk - This is the risk that the Company is not able to meet the short term benefit payout. This may arise due to nonavailability of enough cash and cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time.
D) Demographic Risk - The Company has used certain mortality and attrition assumptions in valuation of the liability. The company is exposed to the risk of actual experience turning out to be worse compared to the assumptions.
E) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to Government Bonds Yield. If plan liability is funded and return on plan assets is below this rate, it will create a plan deficit.
42 Lease related disclosures as lessee
The Company’s lease asset class primarily consists of leases for land, corporate office, warehouses and equipments. With the exception of short-term leases, leases of low-value and cancellable long-term leases underlying assets, each lease is reflected on the balance sheet as a right of use asset and a lease liability.
Lease liabilities are measured at the present value of the remaining lease payments, discounted using the weighted average borrowing rate ranging 10.70-12.16% (31 March 2025: 10.70-12.16%).
Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to another party, the right-of-use asset can only be used by the Company. Leases are either non-cancellable or may only be cancelled by incurring a substantive termination fee. Some leases contain an option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets as security against the Company’s other debts and liabilities.
(iv) Lease payments not recognised as a liability
The Company has elected not to recognise a lease liability for short-term leases (leases with an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. The Company does not have any liability to make variable lease payments for the right-to-use the underlying asset recognised in the standalone financial statements.
Fair value hierarchy
Fair value of cash and cash equivalent, bank balances other than cash and cash equivalent, trade receivables, other financial assets, trade payables, borrowings, other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. 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 of liquidation sale.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 which maximise the use of observable market data and rely on as little as possible on the entity specific estimates for the asset or liability, either directly or indirectly
Level 3: unobservable inputs for the asset or liability
44 Financial risk management
The Company’s principle financial liabilities comprise of borrowings, lease liabilities, trade payables and other payables. The Company’s principal financial assets include trade and other receivables, loans, investments and cash and bank balances that it derives directly from its operations.
The Company has exposure to the following risks arising from financial instruments:
- credit risk;
- liquidity risk; and
- market risk
This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies and processes for measuring and managing risk.
A Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from trade receivables, loans and advances, cash and cash equivalents and deposits with banks.
Trade receivables
The Company primarily sells paints and coatings to customers operating in India and outside India. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate. Considering the nature of trade receivables, and entity’s history of credit with those receivables, entity has rebutted the presumption of having significant increases in credit risk since initial recognition for financial assets which are more than 30 days past due.
Cash and cash equivalents and deposits with banks
Cash and cash equivalents of the Company are held with banks which have high external rating. The Company considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.
Loans and securities deposits
The Company provides loans to its employees/subsidiaries and furnish security deposit to various parties for electricity, communication, etc. The Company considers that its loans have low credit risk or negligible risk of default as the parties are well established entities and have strong capacity to meet the obligations.
Investments
The Company has invested in unquoted equity instruments and preference shares of its subsidiaries, and other company. The management actively monitors the operation of subsidiaries and other company which affect investments. The Company does not expect the counterparty to fail in meeting its obligations other than those specifically considered as impairment allowance as per the management’s assessment.
Provision for expected credit loss(i) Financial assets for which loss allowance is measured using 12 months expected credit loss
The Company has assets where the counter-parties have sufficient capacity to meet the obligations and where the risk of default is very low. Hence, no impairment loss has been recognised during the reporting period in respect of these assets.
(ii) Financial assets for which loss allowance is measured using life time expected credit loss
For trade receivables, the Company follows the approach of a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.
The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company believes that the working capital is sufficient to meet its capital requirements. Accordingly, no liquidity risk is perceived.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. The Company is exposed to market risk through its use of financial instruments and specifically to foreign currency risk, interest risk and commodity price risk which results from its operating, investing and financing activities.
(a) Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Any changes in the interest rates environment may impact future rates of borrowing. The Company mitigates this risk by regularly assessing the market scenario, finding appropriate financial instruments, interest rate negotiations with the lenders for ensuring the cost effective method of financing.
(c) Commodity price risk
Commodity price risk is the risk that future cash flow of the Company will fluctuate on account of changes in market price of key raw materials. The Company is exposed to the movement in price of key raw materials in domestic and international markets.
(d) Other price sensitivity
The Company is not exposed to any listed equity or listed debt price risk as it does not hold any investments in listed entities.
Notes:
1 Related party relationship is as identified by the management and relied upon by the auditors.
2 The transactions with related parties are made in the ordinary course of business and on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash.
3 The remuneration to the KMP’s does not include the provision made for gratuity and leave benefit as these are determined for the Company as a whole.
4 Refer note 19 and 23 for guarantees and securities given by the related parties in respect of borrowings of the Company.
5 Refer note 40B for uncalled liability on partly paid-up shares for investment in subsidiary.
6 Transaction with Key management personnel does not include post-employment benefits based on actuarial valuation as it is done for the Company as a whole .
47 Share based payments (Equity settled)
A The ESOP 2022 scheme was approved by the Board of Directors and the shareholders on 10 August 2022 and 29 September
2022 respectively. As per the ESOP 2022 scheme, options have been granted to the eligible employees of the Company which will
vest over the period of four years at the end of 1 year from the grant date. The relevant details of the scheme are as follows:
51 Segment information
The business activities of the Company predominantly fall within a single reportable business segment, i.e. manufacturing of paints within India and sale of paints within India and outside India. There are no separately reportable business or geographical segments that meet the criteria prescribed in Ind AS 108 ‘Operating Segments’. The aforesaid is in line with review of operating results by the chief operating decision maker.
52 The Company’s manufacturing plant situated at Nashik got a massive fire on 19 November 2016, which caused extortionate damage to the Company, both on account of loss of assets i.e. building, plant and machinery, inventory etc. vis-a-vis loss of the profit during the period.
The Company had taken two insurance policies from United India Insurance Company Limited viz. Loss of Profit Policy and Reinstatement Policy and had filed the claims against those policies with the insurance company. The status of those claims is as under:
(i) The Company had claimed Rs. 32.90 crore in respect of Nashik Plant Fire under Loss of Profit Policy, and the surveyor appointed by the insurer has assessed the claim vide their survey report at Rs. 22.14 crore (loss of production method) and at Rs. 22.63 crore (turnover method) and thereafter further reduced the amount to Rs. 18.32 crore, which has been received as an interim payment during earlier financial years. Aggrieved with the assessment being not fully indemnified, the Company invoked arbitration and has filed its claim of Rs. 12.57 crore before the Arbitral T ribunal, which is currently pending for adjudication.
(ii) The Company had claimed Rs. 59.35 crore in respect of Nashik Plant fire under Reinstatement Policy, and the surveyor appointed by the insurer had assessed the claim vide their survey report at Rs. 21.89 crore. Against the aforesaid claim, the Company had received total Rs. 20.91 crore in earlier financial years. Aggrieved with the assessment being not fully indemnified, the Company invoked arbitration and had filed its claim of Rs. 37.93 crore before the Arbitral T ribunal. On 5 January 2024, the arbitrator awarded Rs. 22.01 crore to the Company against the claim under the Reinstatement Policy. The insurers are appealing this favourable order at the Delhi High Court, and the entire award was deposited as a money decree. By order dated 22 October 2024, the Company received the right to release the entire award in favor of the decree-holder, subject to furnishing security to the satisfaction of the Registrar General, Delhi High Court. The Company has realised the entire award by providing the necessary security. The Company has not recognized this as income and has shown it as payable under Other Financial Liabilities until the case is finalized.
53 The Division Bench of Hon’ble High Court of Calcutta passed an order on 07 May 2009 requiring the Company to give immovable property to the extent of Rs. 4.50 crore as security in favour of Tara Properties Private Limited (the landlord of property at 13, Camac Street, Kolkata). The Company has given portion of its land at Goaberia (adjacent to Howrah plant), as security. Refer note 5.1(e).
54 Additional regulatory information not disclosed elsewhere in the financial information
a The Company has used the borrowings from banks and financial institutions for the specific purposes for which it were taken at the balance sheet date (refer note 19 and 23).
b The Company has not revalued its property, plant and equipment (including right of use assets) or intangible assets during the current or previous year (refer notes 5 and 6).
c The Company has not traded or invested in crypto currency or virtual currency during the current and previous year (refer note 8).
d The Company has not granted loans or advances in the nature of loans to its promoters, directors, KMPs and other related parties
(as defined under Companies Act, 2013), either severally or jointly with any other person other than referred in note 46.
e No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
g The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender.
h The Company did not have any material transactions with Companies struck off under section 249 of Companies Act,2013 or
section 560 of Companies Act,1956 during the financial year.
i The Company has registered with Ministry of Corporate Affairs/ Registrar of Companies, all charges or satisfaction within the statutory time period.
j The Company is compliant in respect of number of layers prescribed under Clause (87) of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
k The Company has not entered into any scheme of arrangement in the current and previous year.
l The Company has not advanced or provided loan to or invested funds in entity including foreign entity or to any other person 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 (ultimate beneficiaries) or(ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
m The Company has not received any funds from any person or entity including foreign entity with the understanding that the company shall(i) 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(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
n In view of continued losses, the Company is not covered by Section 135 of the Companies Act, 2013 dealing with CSR activities.
o The Company has not undertaken any 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).
55 During the year, the Company incurred a net loss after tax of Rs. 63.34 crore and has accumulated losses aggregating to Rs. 543.73 crore as at 31 March 2026. Further, the Company’s current liabilities exceed its current assets by Rs. 65.48 crore as at that date. However, considering management’s plans for monetisation of certain assets, availability of additional credit facilities under the ECLGS 5.0 scheme, expected growth opportunities under future business plans, and financial support committed by the Holding Company to meet foreseeable obligations, these standalone financials statements have been prepared on a going concern basis.
56 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the provision to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of accounts, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company has used another accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the period for all relevant transactions recorded in the accounting software at the application level. However, the database of the said accounting software is operated by a third-party software provider. The ‘Independent Service Auditor’s Assurance Report on the Description of Controls, their Design and Operating Effectiveness’ (‘Type 2 report’ issued in accordance with ISAE 3402, Assurance Reports on Controls at a Service Organization) does not provide any information for any direct changes made at the database level of the said software for the aforesaid period. Further, the audit trail at application level has been preserved by the Company as per the statutory requirements of record retention.
57 Amounts below the rounding off norms adopted by the Company are presented as “0”.
58 Previous year figures have been regrouped/reclassified, wherever considered necessary in order to comply with financial reporting requirements. The impact of such regrouping/reclassification is not material to these standalone financial statements.
The accompanying notes are an integral part of standalone financial statements.
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