1.5 Provisions and contingencies
Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best
estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates.
A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot
be measured reliably. The company does not recognise a contingent liability but discloses its existence in the Notes.
1.6 Financial instrument
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
Equity investments (other than investments in subsidiaries and joint ventures):
All equity investments within the scope of Ind AS 109, 'Financial Instruments', are measured at fair value either through
Statement of Profit and Loss or other comprehensive income. The Company makes an irrevocable election to present in OCI
the subsequent changes in the fair value on an instrument-by-instrument basis. The classification is made on initial
recognition.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding
dividends, impairment gains or losses and foreign exchange gains and losses, are recognised in the OCI. Any gains or losses
on de-recognition is recognised in the OCI and are not recycled to the Statement of Profit or Loss. Equity instruments
included within the FVTPL category are measured at fair value with all changes recognised in the Statement of profit and
Loss.
1.7 Change / Amendment in Accounting Standards :
Several amendments and interpretation apply for the first time for the annual periods beginning on or after 1st April 2025.
These standards do not have impact on the financial statements of the Company.
(ii) Terms / rights attached to the Equity Shares:
The Company has issued only one class of equity share having a face value of Rs. 10/- per share. The holder of each equity share is
entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive
remaining assets of the Company, after distribution to all preferential creditors and other creditors, in the order of priority. The
distribution will be in proportion to the number of equity shares held by shareholders. The company declares and pays dividend in
Indian Rupees. Board of Directors have not recommended dividend during the year .
Dues to micro and small enterprises have been determined to the extent such parties have been identified on the basis of information
available with the Management.
The Company has disclosed the suppliers who have registered themselves under "Micro, Small and Medium Enterprises Development
Act, 2006" to the extent they have confirmed.
34. Employee benefit plans
34 (a) Defined contribution plans - provident fund and employee state insurance
The Company makes Provident Fund and Employee state insurance scheme contributions to defined contribution plans for qualifying
employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits.
The Company recognised the following contributions in the Statement of profit and loss.
34. b. Defined benefit plan - gratuity
In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (Gratuity plan).
The Gratuity plan provides a lump sum payment to vested employees, at retirement or termination of employment, an
amount based on the respective employee’s last drawn eligible salary and the years of employment with the Company. The
Company provides the gratuity benefit through annual contributions to a fund managed by the Insurer included as part of
'Contribution to provident and other funds’ in Note 28 Employee benefit expense. Under this plan, the settlement obligation
remains with the Company.
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 in providing the above gratuity
benefit which are as follows:
i. Interest Rate Risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates 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 (as
shown in financial statements).
ii. Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any particular
investment.
iii. Salary Escalation Risk: The present vaalue of the defined benefit plan is calculated with the assumption 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 determine the present value of obligation will have a bearing on the plan’s liabilty.
iv. 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 assumption.
v. Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to
non-availabilty of enough cash/cashequivalent to meet the liabilities or holding of illiquid assets not being sold in time.
In respect of the plan in India, the most recent actuarial valuation of the plan assets and the present value of the defined
benefit obligation were carried out as at March 31,2026 by actuary. The present value of the defined benefit obligation, and
the related current service cost and past service cost, were measured using the projected unit credit method.
Disclosures under Accounting Standards (contd...)
The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the
estimated term of the obligations.
Sensitivity Analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant,
would have affected the defined benefit obligation by the amounts shown below:
Asset Liability Matching Strategies
The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is
declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment
of all gratuity liability occurring during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity
risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the
Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in
liability without corresponding increase in the asset).
The management assessed that fair value of cash and short-term deposits, trade receivables, trade payables, and other current financial assets
and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial
assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties,
other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
i) Long-term fixed-rate receivables/borrowings are evaluated by the Company based on parameters such as interest rates, specific country
risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation,
allowances are taken into account for the expected losses of these receivables.
ii) Fair values of the Company’s interest-bearing borrowings and loans are determined by using DCF method using discount rate that reflects
the issuer’s borrowing rate as at the end of the reporting period. The own non- performance risk as at March 31,2026 was assessed to be
insignificant.
40. Fair value hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The following table presents the fair value measurement hierarchy of financial assets and liabilities measured at fair value on
recurring basis as at March 31,2026, March 31,2025
Valuation technique used to determine fair value
The fair value of the financial assets and liabilities are at the amount that would be received to sell an asset and paid to transfer a liability
in an orderly transaction between market participants at the measurement date.The carrying amounts of trade receivables, cash and
cash equivalents, other bank balances, loans, other financial assets, current borrowings and other current financial liabilities are a
reasonable approximation of their fair values.The estimated fair value amounts as at March 31,2026 have been measured as at that
date. As such, the fair values of these financial instruments subsequent to reporting date may be different than the amounts reported at
each year-end.The investments in Level-3 hierarchy has been valued at cost approach to arrive at the fair value as there is vide range of
possible fair value measurement and the cost represents the estimate of fair value within that range considering the purpose and
restriction on the transferability of the instruments.There were no transfers between Level 1, Level 2 and Level 3 during the year.
41 Financial risk management
The Company’s principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these
financial liabilities is to finance the company’s operations and to provide guarantees to support its operations. The Company’s
principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive directly from its
operations.
The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk, foreign currency risk and interest rate risk.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:
(i) 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, and arises principally from the Company’s receivables from customers and investment securities. Credit
risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding accounts
receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing
counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties,
taking into account their financial position, past experience and other factors.
Trade and other receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of
the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit
risk assessment.
4 Customers accounted for more than 5% of the revenue for the year ended March 31,2026 , One customer accounted for more
than 9% of the receivables for the year ended March 31,2025.
Investments
The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a
good credit rating. The company does not expect any losses from non- performance by these counter-parties, and does not have
any significant concentration of exposures to specific industry sectors.
(iii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s
debt obligations with floating interest rates and investments.
Interest rate sensitivity analysis
If interest rates had been 1% higher and all other variables were held constant, the company's profit for the year ended would have
impacted in the following manner:
Capital management
The Company's capital management strategy is to effectively determine, raise and deploy capital so as to create value for its
shareholders. The same is done through a mix of either equity and/or preference and/or convertible and/or combination of short
term /long term debt as may be appropriate.
The Company determines the amount of capital required on the basis of its product, capital expenditure, operations and strategic
investment plans. The same is funded through a combination of capital sources be it either equity and/or preference and/or
convertible and/or combination of short term/long term debt as may be appropriate.
The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost
and elongate the maturity of its debt portfolio, and closely monitors its judicious allocation amongst competing capital expansion
projects and strategic acquisitions, to capture market opportunities at minimum risk.
The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing
loans and borrowings less cash and cash equivalents, Bank balances other than cash and cash equivalents and current
investments.
42. CSR Expenditure:
The Company has incurred loss for immediately preceding financial year and hence no mandatory obligation to spend on CSR
during the financial year 2025-26
43. Power and Fuel is net of Wind Power of Rs.1339.85/- Lakhs ( Previous Year Rs.1165.09/-Lakhs ) representing units supplied to grid
against against which equivalent captively consumed)
46 On November 21,2025, the Government of India notified the four Labour Codes consolidating existing labour laws. The Company
has assessed the impact of these Codes on its employees and concluded that there is no material incremental liability. The
Company continues to monitor developments relating to the finalisation of Central and State Rules and will recognise the
accounting impact, if any, as required, as and when the rules are notified.
47 There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax
assessments under the Income Tax Act, 1961 (43 of 1961) during the year.
48 There are no proceedings initiated or pending against the company for holding any Benami Property under the Benami
Transactions (Prohibition) Act, 1988 and the rules made there under.
49 Company has not entered into any transactions with companies struck off under Companies Act, 2013
50 The Company has not been declared as a wilful defaulter by any bank or financial institution.
51 (i) The company has not advanced or loaned or invested any fund, which are material either individually or in aggregate (either
from borrowed funds or share premium or any other sources or kind of funds) to or in any other person or entity, including
foreign entities ("Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate
Beneficiaries”) by or on behalf of the Company
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The company has not received any fund, which are material either individually or in aggregate, from any person or entity,
including foreign entities ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the
Company shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate
Beneficiaries”) by or on behalf of the Funding Party.
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
52 All the figures are in lakhs unless otherwise stated. Previous year’s figures have been regrouped / reclassified wherever necessary
to correspond with the current year’s classification / disclosure
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