(l) Provisions, contingent liabilities & contingent assets
Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past event, it is
probable (more likely than not) that an outflow of economic resources will be required to settle the obligation, and the
amount can be reliably estimated. Provisions are only recognized for obligations arising from specific events and are not
used for future operating losses.
Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the reporting
date, taking into account the risks and uncertainties associated with the obligation. Where the effect of the time value of
money is material, the provision is discounted to its present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the obligation. The unwinding of the discount is
recognized as a finance cost in the Statement of Profit and Loss.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is no longer probable
that an outflow of resources will be required, the provision is reversed. Increases in provisions due to the passage of time
(unwinding of discount) are recognized as finance costs.
Contingent Liabilities
Contingent liabilities are possible obligations arising from past events whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the Company's control. They are
also present obligations that either do not meet the probability criterion for recognition or cannot be measured reliably.
Contingent liabilities are not recognized but are disclosed in the notes to the financial statements, unless the possibility of
an outflow of resources is remote.
Contingent Assets
Contingent assets are possible assets arising from past events whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the Company's control. Contingent assets are
not recognized in the financial statements but are disclosed when an inflow of economic benefits is probable.
Provisions are presented as current or non-current liabilities in the balance sheet based on the expected timing of
settlement. Contingent liabilities and contingent assets, where applicable, are disclosed in the notes to the financial
statements.
(m) Revenue from contract with customers
Revenue is recognized when (or as) the Company satisfies a performance obligation by transferring promised goods or
services to a customer ;i.e. when the customer is able to direct the use of the transferred goods or services and obtains
substantially all of the remaining benefits , for an amount that reflects the consideration to which the Company expects to
be entitled in exchange for those goods or services.
Revenue is the transaction price the company expects to be entitled to. In determining the transaction price, the company
considers the effects of variable consideration, the existence of significant financing contracts, noncash consideration and
consideration payable to customers, if any.
Variable Consideration
Variable consideration, such as discounts, volume rebates, or price concessions, is estimated based on historical
experience and current contract terms, using the expected value method. These amounts are included in the transaction
price only to the extent that it is highly probable that a significant reversal will not occur. Provisions for expected discounts
or rebates are recognized as a reduction of revenue
Sale of Goods
Revenue from the sale of goods is recognized at a point in time when control of the goods is transferred to the customer,
typically upon delivery as per agreed delivery terms (e.g., FOB, CIF, or Ex-Works). Control is transferred when the
customer has the ability to direct the use of and obtain substantially all the economic benefits from the goods, and no
significant unfulfilled obligations remain. Revenue from sales of goods is net of taxes.
No element of financing component is recognized as the credit terms for sales (typically 30-60 days) are consistent with
market practices and do not constitute a significant financing arrangement.
Rendering of Services
Revenue from services is recognized over time as the services are performed, provided the performance creates an asset
with no alternative use and the Company has an enforceable right to payment for services rendered.
Foreign Currency Transactions
Revenue from contracts denominated in foreign currencies is translated into the functional currency (INR) at the
exchange rate on the date of the transaction or an average rate if it approximates the actual rate. Exchange differences
arising from settlement or remeasurement are recognized in the Statement of Profit and Loss as other income or expense.
Dividend Income
Dividend income from investments is recognized in the Statement of Profit and Loss when the Company's right to receive
payment is established, provided it is probable that economic benefits will flow to the Company and the amount can be
reliably measured.
Revenue is presented as a separate line item in the Statement of Profit and Loss, net of discounts, rebates, and taxes.
(n) Contract Balances
- Trade Receivables: Recognized when the right to consideration becomes unconditional (i.e., only the passage of time
is required before payment is due), typically upon delivery of goods.
- Contract Assets: Recognized for conditional rights to consideration (e.g., unbilled revenue for customized products or
services where invoicing is contingent on milestones other than time), measured at the allocated transaction price
less any impairment losses.
- Contract Liabilities: Recognized when the Company receives consideration (e.g., advance payments) before satisfying
performance obligations. These are recognized as revenue when the related goods or services are transferred to the
customer.
Contract assets and contract liabilities are presented as current assets and liabilities, respectively, in the balance sheet,
unless they are expected to be settled beyond 12 months.
(o) Employee benefits
Short-Term Employee Benefits
Short-term employee benefits, such as wages, salaries, bonuses, and paid annual leave expected to be settled wholly
within 12 months after the period in which employees render the related services, are recognized as an expense at the
undiscounted amount in the Statement of Profit and Loss during the period the services are rendered.
Post-Employment Benefits
The Company operates defined benefit plans (e.g., gratuity) and defined contribution plans (e.g., provident fund,
superannuation fund, Employees' State Insurance, Employees' Pension Scheme).
Defined Benefit Plans
The liability or asset recognized in the balance sheet for defined benefit plans, such as gratuity, is the present value of the
defined benefit obligation (DBO) at the reporting date less the fair value of plan assets, if any. The DBO is calculated
annually by independent actuaries using the projected unit credit method. The present value of the DBO is determined by
discounting estimated future cash outflows using market yields on government bonds at the reporting date, with terms
approximating the duration of the obligation.
Net interest cost, calculated by applying the discount rate to the net balance of the DBO and fair value of plan assets, is
recognized as an employee benefit expense in the Statement of Profit and Loss. Remeasurements, including actuarial
gains/losses from experience adjustments and changes in actuarial assumptions, are recognized directly in other
comprehensive income (OCI) and included in retained earnings in the statement of changes in equity. These
remeasurements are not reclassified to profit or loss in subsequent periods.
Defined Contribution Plans
Contributions to defined contribution plans, such as provident fund, superannuation fund, and state plans (e.g.,
Employees' State Insurance, Employees' Pension Scheme), are recognized as an expense in the Statement of Profit and
Loss when employees render the related services. The Company has no further payment obligations beyond these
contributions.
Other employee benefits
The liabilities for earned leave is determined on the basis of accumulated leave to the credit of the employees as at the
year end charged to the statement of profit and loss as per the Company's rules .
(p) Share Based Payments
Equity-settled share based payments to employees and others providing similar services are measured at the fair value of
the equity instruments at the grant date. Details regarding the determination of the fair value of equity settled share
based payments transactions are set out in Note 32.
Measurement and disclosure of the Employee Share based payment plan is done in accordance with Securities and
Exchange Board of India (Share Based Employee Benefits) regulations, 2014 and the guidance note on accounting for
Employee Share based Payments, issued by ICAI.
(q) Foreign Currency translation
Functional and Presentation Currency
The financial statements are presented in Indian Rupee (INR), which is the Company's functional and presentation
currency.
Transactions and Balances
Foreign currency transactions are initially recorded in the functional currency (INR) using the exchange rate prevailing at
the date of the transaction.. Exchange differences arising on settlement or translation of monetary items are recognized in
the Statement of Profit and Loss, except for exchange differences on foreign currency borrowings directly attributable to
the acquisition or construction of qualifying assets, which are capitalized as part of the asset cost, per Ind AS 23.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rate at
the reporting date. Non-monetary items measured at historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction and are not retranslated. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rate at the date when the fair value is determined, with exchange
differences recognized in the same manner as the fair value gain or loss.
(r) Non current assets held for sale
Non-current assets or disposal groups comprising of assets and liabilities are classified as 'held for sale' when all of the
following criteria's are met:
i) decision has been made to sell.
ii) the assets are available for immediate sale in its present condition.
iii) the assets are being actively marketed and
iv) sale has been agreed or is expected to be concluded within 12 months of the Balance Sheet date.
A disposal group is classified as a discontinued operation if it represents a separate major line of business or geographical
area of operations or is part of a single coordinated plan to dispose of such a line or area.
Non-current assets and disposal groups classified as 'held for sale' are measured at the lower of its carrying value and fair
value less costs to sell. Non-current assets held for sale are not depreciated or amortized. Any impairment loss is
recognized in the Statement of Profit and Loss.
Non-current assets and disposal groups held for sale are presented in the balance sheet, separately from other assets and
liabilities. The results of discontinued operations, if any, are presented separately in the Statement of Profit and Loss.
(s) Tax Expenses
The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss,
except to the extent that it relates to items recognised in the other comprehensive income or directly in equity. In which
case, the tax is also recognised in other comprehensive income or equity respectively.
Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities, based on tax rates and laws that are enacted or substantively enacted at the reporting date.
Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and their corresponding tax bases used for taxation purposes. Deferred tax liabilities are recognized for all
taxable temporary differences. Deferred tax assets are recognized for deductible temporary differences, unused tax
losses, and tax credits to the extent it is probable that future taxable profits will be available to utilize them.
Deferred tax assets and liabilities are measured at the tax rates expected to apply in the period when the asset is realized
or the liability is settled, based on tax rates and laws enacted or substantively enacted at the reporting date. The carrying
amounts of deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profits will be available.
(t) Earning Per share
Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the Company
- by the weighted average number of equity shares outstanding during the financial year,
The weighted average number of shares is adjusted for events such as bonus issues, share splits, or consolidations that
change the number of shares without a corresponding change in resources.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
- The after-tax effect of interest and other financing costs associated with dilutive potential equity shares (e.g., share
options, convertible instruments); and
- The weighted average number of additional equity shares that would be outstanding assuming the conversion of all
dilutive potential equity shares.
(u) Cash Flow statement
The cash flow statement is prepared using the indirect method, whereby profit before tax is adjusted for:
- Non-cash transactions (e.g., depreciation, provisions, unrealized foreign exchange gains/losses);
- 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.
Cash flows are classified into operating, investing, and financing activities, reflecting the Company's principal revenue-
producing activities, asset acquisitions/disposals, and capital/debt transactions, respectively.
(v) Recent Accounting Pronouncements not yet effective
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
On August 13, 2025, Ministry of Corporate Affairs ("MCA") notified the amendments to the following standard:
Ind AS 7 - Cash flow statement and Ind AS 107 - Financial Instruments Disclosure - These amendments include additional
disclosure requirements for supplier financing arrangements relating to cash and non- cash changes (i.e. the effect of
business combinations, exchange differences or other transactions that do not require the use of cash or cash equivalents)
and disclosure relating to the terms and conditions related to the arrangement including disclosure of dissimilar terms
separately along with carrying amounts in line items disclosed for which suppliers have received payments from financial
institution and range of due dates. The liquidity risk disclosure will also include the disclosure for supplier financing
arrangement which includes maturity analysis for supplier financing arrangement and a description of how the entity
manages the liquidity risk inherent in Supplier Financing Arrangement. The amendment is applicable from April 1, 2025
with exemption to comparative period and interim periods in which entity first applies the amendments. The Company
has reviewed the amendment and based on its evaluation company does not require to any disclosures in the financial
statements.
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 no impact of these amendments in its classification criteria of current and non-current liabilities.
Recent Accounting Pronouncements not yet effective
Ind AS 1 - Presentation of Financial Statements - Distinction between current and non-current liability. These
amendments provide clearer guidance on classification of the liabilities as current and non-current liability by including
the additional definition and considerations for classification of the liability. The amendments also provide additional
disclosure requirements relating to material breach of long-term loan arrangement. The amendment relates to
classification of the non-current and current bifurcation of long-term loan arrangement due to breach of covenants on or
before the end of reporting period. Due to this, the loan is considered to be payable on demand and is classified as current
liability, unless the lender agrees, by the end of the reporting period to provide a period of grace of at least twelve months
after the reporting period within which the entity can rectify the breach and during which the lender cannot demand
immediate repayment. The amendment is applicable from April 1, 2026. The Company is currently assessing the probable
impact of amendments which are applicable in its annual financial statements.
Note
1) The Board of Directors at its meeting held on 11th August, 2025 approved and recommended issue of fully paid-up Bonus Equity Shares in the
ratio of 1:1 i.e. 1 (One) Bonus Equity Shares of Rs. 1/- each for every 1 (One) fully paid-up Equity Shares. The Shareholders approved the Bonus
Issue at the Annual General Meeting held on 11th September, 2025. Pursuant to the authority granted the Board of Directors at its meeting
held on 24th September, 2025 issued and allotted 22,69,29,066 fully paid-up equity shares of Rs. 1/- each increasing the total no. of Equity
Shares from 22,69,29,066 to 45,38,58,132 by capitalizing Rs. 2,269.29 lakh from the Securities Premium Account.
2) During the year ended March 31, 2026, the Committee of Directors on November 11, 2025 allotted 3,97,77,247 equity shares of face value Rs.
1/- each to eligible Qualified Institutional Buyers (CUB)a t an issue price of Rs. 201.12 per equity share (including a premium of Rs.2 00.12 per
equity share) aggregatingt o Rs. 800 Crore, pursuant to Qualified Institutions Placement( CIIP)in accordancew ith the provisions of Securities
and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations (the ''SEBI ICDR Regulations").
Securities Premium: Securities premium is created due to premium on issue of shares. This will be utilised in accordance with the provisions of the
Act.
Capital Reserve :Capital reserve represents the capital subsidy received by the Company. This will be utilised in accordance with the provisions of the
Act.
General Reserve : The General reserve is created by way of transfer of profits from retained earnings .It is a free reserve and will be utilised in
accordance with the provisions of the Act.
Share Based Payment Reserve : Share based payment reserve represents the cumulative expense recognised for equity settled transaction at each
reporting date until the employee share options are exercised/ expired.
Retained Earning : Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other
distributions paid to shareholders.
a) Scheme Details
The Company has instituted an Employee Stock Option Scheme titled "Time Technoplast Limited - Employees Stock Option Plan 2017"
("ESOP 2017" or "the Scheme"), under which the Company was authorised to grant up to 45,00,000 (Forty-Five Lakh) stock options to
eligible employees.
Under the Scheme, the Company had granted 29,88,375 stock options to eligible employees on 25th November, 2017, at an exercise
price of Rs. 93.58 per option. Of these, 7,82,316 options were exercised, resulting in the allotment of an equal number of equity shares
to eligible employees, while the remaining 22,06,059 options lapsed on account of non-exercise and the same is also available for future
grant.
34. Segment reporting
As per Ind AS 108- "Operating Segment", segment information has been provided under the Notes to Consolidated Financial Statements
35. Financial Risk Management
Financial risk management objectives and policies
The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company's financial risk
management policy is set by the Managing Board.
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial
instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity
prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial
instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.
Market Risk- Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market
interest rates. In order to optimize the Company's position with regards to interest income and interest expenses and to manage the interest
rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating
rate financial instruments in its total portfolio
Credit risk
Credit risk arises from the possibility that the counter party may not be able to settle their obligattons as agreed. To manage this, the Company
periodically assess financial reliability of customers, taking into account the financial conditton, current economic trends, and analysis of historical
bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.
The Company considers the probability of default upon inittal recognitton of asset and whether there has been a significant increase in credit risk on
an ongoing basis through each reporttng period. To assess whether there is a significant increase in credit risk the Company compares the risk of
default occurring on asset as at the reporttng date with the risk of default as at the date of inittal recognitton. It considers reasonable and supporttve
forward-looking informatton such as:
i) Actual or expected significant adverse changes in business
ii) Actual or expected significant changes in the operating results of the counterparty
iii) Financial or economic condittons that are expected to cause a significant change to the counterparty's ability to meet its obligattons
iv) Significant increase in credit risk on other financial instruments of the same counterparty
Provision for Expected Credit Loss
The company has recognized life ttme expected credit losses (simplified approach) for expected credit loss provision for its trade receivables.
a) Expected credit loss for trade receivables under simplified approach (Refer note 7 for ageing of trade receivables)
b) The following table summarizes in the change in the loss allowance using expected credit loss model on trade receivables
Liquidity Risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligattons on ttme, or at a reasonable price. The
Company's treasury department is responsible for liquidity, funding as well as settlement management. In additton, processes and policies
related such risk are overseen by senior management. Management monitors the Company's net liquidity positton through rolling forecasts on
the basis of expected cash flows.
The table below analyse the financial liability of the company into relevant maturity groupings based on the remaining period from reporttng
date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flow.
38. Fair Value Measurement
The fair values of the financial assets and liabilifies are included at the amount at which the instrument could be exchanged in a current
transacfion between willing parfies, other than in a forced or liquidafion sale.
The following methods and assumpfions were used to esfimate the fair values:
• Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilifies, short term
loans from banks and other financial insfitufions approximate their carrying amounts largely due to short term maturifies of these
instruments.
• Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates
and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of
these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: This level includes those financial instruments which are measured by reference to quoted (unadjusted) prices in acfive markets for
idenfical assets or liabilifies.
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.
39 - Leases
The company's lease asset class primarily consists of lease of buildings. These leases were classified as operating lease under Ind AS 17 .
Under Ind AS , the nature of expenses in respect of operating lease has changed from lease rent to depreciation cost and finance cost for the
right-to-us assets and for interest accrued on lease liability respectively.
41. The Government of India has consolidated 29 existing labour legislations into a united framework comprising four Labour Code viz Code on
wages 2019, Code on Social Security 2020. Industrial Relation Code 2020, and Occupational Safely, Health and Working Condition Code 2020
(collectively referred to as the New Labour Codes). These Codes have been made effective from 21st November, 2025. The corresponding all
supporting rules under these codes are yet to be notified.
Based on the provisions notified to date, company has accounted for incremental liability in accordance with Ind AS 19 - Employee Benefits
and relevant guidance issued by the Institute of Chartered Accountants of India (ICAI).
The final impact of the Labour Codes is contingent upon the notification of rules, corresponding State-specific regulations and further
clarifications. The Company will re-assess such impact and recognise any additional liability or adjustment as and when the applicable
provisions become effective.
42. (a) No proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions
(Prohibition) Act, 1988, as amended, and rules made thereunder.
(b) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(c) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(d) There were no transactions relating to previously unrecorded income that have been surrendered and disclosed as income during the
year in the tax assessments under the Income Tax Act, 1961.
(e) The Company has not advanced or loaned to or invested in funds to any other person(s) or entity(is), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(i) directly or indirectly lend to 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
(f) The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall
(i) directly or indirectly lend to 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
Debt equity ratio improves mainly due to infusion of cost free capital through QIP during the year.
Increase in Debt Service Coverage Ratio is primarily due to increase in profit
44. Event occurring after balance sheet date
The Board of Directors has recommended Equity dividend of ' 1.5 (Previous year ' 2.50 (on Pre Bonus issue of 1:1) on face value of ' 1.00 per
share, for the financial year 2025-26.
45. The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make the comparable
46. Approval of Financial Statements
The financial statements were approved for issue by the Board of Directors on May 27,2026
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