The Board of Directors of the Company decided to sell an office space, which was originally acquired for administrative purpose. An active programme to identify potential buyers has been initiated after carrying out the valuation of the property from registered valuer and the sale is expected to be completed before the end of March 2027.
Non-recurring fair value measurements
Building classified as held for sale during the reporting period was measured at the lower of its carrying amount and fair value less costs to sell at the time of the reclassification. The fair value of the building was determined using the sales comparison approach. The key inputs under this approach are price per square ft of comparable lots of building in the area of similar location, shape and size.
The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is entitled for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by the shareholders.
The Company has one class of 12.50% 25,00,00,000 Non-Convertible Redeemable Preference Share('NCRPS') having a par value of Rs. 10 per share. Each Preference shareholder is eligible for one vote per share as per the terms of Section 47(2) of the Companies Act 2013 and dividend as and when declared by the Company. As per terms of Preference shares, NCRPS issued for a period not exceeding 20 years from the date of allotment shall be redeemable at par upon the maturity or redeemed early at the option of the Company in full or in part at 3 monthly intervals from the date of allotment. In the event of winding up of Company, NCRPS shall be non- participating in surplus assets and profit which may remain after the entire capital has been repaid, on winding up of the Company.
The Company has one class of 12.17% 23,90,00,000 Non-Convertible Redeemable Preference Share ('NCRPS') having a par value of Rs. 10 per share. NCRPS carry a dividend @ 1%p.a for first three years and 18.30% p.a thereafter for the remaining term (effective yield 12.17%). Each Preference shareholder is eligible for one vote per share as per the terms of Section 47(2) of the Companies Act 2013 and dividend as and when declared by the Company. As per terms of Preference shares, NCRPS issued for a period not exceeding 15 years from the date of allotment and shall be redeemable at par upon maturity or optional early redemption with accrued interest thereon computed on the basis of the effective yield of the instrument, at the option of the Company on a quarterly basis at 3-month intervals from the date of allotment. In the event of winding up of Company, NCRPS shall be non-participating in surplus assets and profit which may remain after the entire capital has been repaid, on winding up of the Company.
The Company has one class of 11.25% 2,50,00,000 Non-Cumulative Non-Participating Redeemable Preference Share ('NCRPS') having a par value of Rs. 10 per share. Each Preference shareholder is eligible for one vote per share as per the terms of Section 47(2) of the Companies Act, 2013 and dividend as and when declared by the Company. As per terms of Preference shares, NCRPS issued for a period not exceeding 10 years from the date of allotment shall be redeemable at par upon the maturity or redeemed early at the option of the Company in full or in part at 3 monthly intervals from the date of allotment. In the event of winding up of Company, NCRPS shall be non- participating in surplus assets and profit which may remain after the entire capital has been repaid, on winding up of the Company.
Nature and Purpose:
(a) Equity Component of 12.50% Non Convertible Redeemable Preference Shares:
The Company has issued 12.50% Non Convertible Redeemable Preference Shares (‘NCRPS’) of Rs. 25,000 lakhs, divided in to 25,00,00,000 preference shares of Rs. 10 each to Tata Steel Limited, on private placement basis on March 25, 2019. NCRPS are in nature of compound financial instrument, accordingly the liability portion disclosed under long term borrowings and residual portion is disclosed under other equity.
The proceeds of the issue to be primarily utilized towards repayment of the whole or a part of the existing indebtedness of the Company and/ or for general corporate purposes.
(b) Equity Component of 12.17% Non Convertible Redeemable Preference Shares:
The Company has issued 12.17% Non Convertible Redeemable Preference Shares (‘NCRPS’) of Rs. 16,500 lakhs on June 8, 2022 and Rs. 7,400 lakhs on March 1,2023 aggregating to Rs. 23,900 lakhs, divided in to 23,90,00,000 preference shares of Rs 10. each to Tata Steel Limited, on private placement basis. NCRPS are in nature of compound financial instrument, accordingly the liability portion disclosed under long term borrowings and residual portion is disclosed under other equity .
The proceeds of the issue to be primarily utilized inter-alia, for repayment of the existing indebtedness of the Company, payment against long-outstanding vendor dues, for completing legacy projects and delivering other committed orders and/or for other general corporate purposes.
(c) Equity Component of 11.25% Non Convertible Redeemable Preference Shares:
The Company has issued 11.25% Non-Cumulative Non-Participating Redeemable Preference Shares (‘NCRPS’) of Rs. 2,500 lakhs, divided into 2,50,00,000 preference shares of Rs. 10 each to Tata Steel Limited, on July 15, 2024. NCRPS are in nature of compound financial instrument, accordingly the liability portion disclosed under long term borrowings and residual portion is disclosed under other equity.
The said issue of NCRPS has been made pursuant to NCLT order and in accordance with section 55(3) of the companies Act, 2013 for redemption of existing OCRPS issued earlier to Tata Steel Limited.
(d) General reserve :
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
(e) Foreign exchange fluctuation reserve :
The exchange differences on restatement of long-term receivables from non-integral foreign operations that are considered as net investment in such operations in earlier years and carried on transition to Ind AS until disposal of such net investment, in which case the accumulated balance in foreign exchange fluctuation reserve will be recognised as income / expense in the same period in which the gain or loss on disposal will be recognised.
(f) Amalgamation reserve :
Pursuant to the Scheme of Amalgamation of the erstwhile Tata Material Handling System Ltd (TMHS) and Tata Technodyne Ltd (TTDL) with the Company as approved by the Shareholders in the Court convened meeting and subsequently sanctioned by the Hon’ble High Court at Calcutta and the Hon’ble High Court at Patna (Ranchi Bench); the assets and liabilities of erstwhile TMHS and TTDL have transferred to and vested in the Company with effect from the appointed date of April 01,1999 as provided in the Scheme of Amalgamation.
Accordingly, the assets, liabilities, reserves and debit balance in the Statement of Profit and Loss of erstwhile TMHS and TTDL as at April 01, 1999 have been taken over at their book values resulting to the amalgamation reserve after adjusting values of shares issued to the shareholders of TMHS and TTDL. The reserve is utilised in accordance with the relevant provisions of the Companies Act, 2013.
Tax losses includes long term capital losses of Rs. 5,043.23 lakhs (March 31, 2025: Rs 3,898.84 lakhs) whose expiry period ranges between March 31,2027 and March 31,2034 ; brought forward business losses of Rs. 6,199.51 lakhs (March 31,2025: Rs. 2,931.95 lakhs) whose expiry period ranges between March 31,2027 and March 31,2034. There is no expiry for unabsorbed tax depreciation of Rs. 88.38 lakhs (March 31,2025 : Rs. 105.46 lakhs), it can be carried forward for indefinite period.
34. Income tax
The Company opted for the new reduced tax regime under Section 115BAA of the Act, which provides a domestic Company with an option to pay tax @ 22% (effective rate of 25.168%). The lower rate shall be applicable subject to certain conditions, including that the total income should be computed without claiming specific deductions and exemptions. Section 115BAA also provides that the provisions of section 115JB of the Act (MAT) shall not apply to a company opting for such reduced rate.
35. Segment information
35.01 Products and services from which reportable segment derives their revenues
Information reported to the Chief operating decision maker (CODM) for the purpose of resource allocation and assessment of segment performance focuses based on products and services. Accordingly, directors of the Company have chosen to organise the segment based on its product and services as follows:
• Products & services
• Projects & services
The Company’s chief operating decision maker is the Managing Director.
Revenue and expenses directly attributable to segment are reported under each reportable segment. Expenses which are not directly identifiable to each reporting segment have been allocated on the basis of associated revenue of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as Unallocable expenses.
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 Unallocable.
The Company’s financing and income taxes are managed on a company level and are not allocated to operating segment.
In the Company’s operations within India there is no significant difference in the economic conditions prevailing in the various states of India. Revenue from sales to customers outside India is nil in the current and previous year and all of the Company’s non-current assets are domiciled in India. Hence disclosures on geographical segment are not applicable.
35.06 Information about major customers
Revenue from operations amounting to Rs. 8,503.22 lakhs (March 31, 2025: Rs. 12,073.48 lakhs) includes revenue relating to products and services segment of Rs. 7,408.49 lakhs (March 31, 2025: Rs. 10,351.65 lakhs) pertaining to sales to the company’s top most customer (March 31,2025: top most customer). No other single customer contributed 10% or more of the Company’s revenue in year ended March 31,2026 and March 31,2025.
37. Employee benefit plans
37.01 Defined contribution plans
The Company’s employee benefit plans include a number of defined contribution plans on behalf of covered employee. Any expense recognised in relation to these schemes represents the value of contributions payable during the period by the Company at rates specified by the rules of those plans. The Company provides Provident Fund facility to all employees. The Company provides superannuation benefits to selected employees. The contributions are expensed as they are incurred in line with the treatment of wages and salaries. The Company’s Provident Fund is exempted under section 17 of Employees’ Provident Fund and Miscellaneous Provision Act, 1952. Conditions for exemption stipulate that the Company shall make good deficiency, if any, in the interest rate declared by the trust vis-a-vis interest rate declared by the Employees’ Provident Fund Organisation. The liability as on the balance sheet date is ascertained by an independent actuarial valuation.
Provident Fund
The Company provides provident fund benefits to all employees as per applicable regulations. Contributions towards provident fund are recognised as expense for the year. The Company has set up an irrevocable Provident Fund Trust which is administered by the Trustees. The assets of the plans are held separately under the control of the trustees in case of trust. Both the employees and the Company make monthly contributions to the Fund at specified percentage of the employee’s salary and aggregate contributions along with interest thereon are paid to the employees/ nominees at retirement, death or cessation of employment.
National Pension Scheme & Superannuation Fund
Certain employees of the Company are participants in a defined contribution plan. The Company has no further obligations to the Plan beyond its monthly contributions, which are being contributed to the Tata Robin Fraser Superannuation Fund @ 15% of basic salary of certain employees and such contribution are recognised as an expense when incurred. While the Company transfers the corpus to the Life Insurance Corporation of India on superannuation of the relevant employee. Total amount charged to the Statement of Profit and Loss during the year on account of the above defined contribution plans amounted to Rs. 8.76 lakhs (March 31,2025: Rs. 7.24 lakhs).
The company has moved from Superannuation Fund to National Pension Scheme from April 1,2020. The company contributes 10% of basic salary of the eligible employees to NPS. The Company has no further obligation beyond this Contribution. Total amount charged to the Statement o1 Profit & loss for the year Rs. 110.01 lakhs (March 31,2025: Rs. 114.46 lakhs)
37.02 Defined benefit plans
The Company provides Provident fund and Gratuity benefit to all employees. The assets of the provident and gratuity plans are held separately under the control of the trustees of the independent trusts or with the life insurance companies. The board of trustees of the the fund composed of an equal number of representatives from both employees and employers. The board of the Fund is required by law and by the trust deed to act in the interest of the Fund and of all relevant stakeholders in the scheme. The board of trustee of the fund and management of life insurance company is responsible for the investment policy with regard to the assets of the Fund.
Provident fund benefits provided under plans wherein contributions are made to an irrevocable trust set up by the Company to manage the investments and distribute the amounts entitled to eligible employees are treated as a defined benefit plan as the Company is obligated to provide the members a rate of return which should, at the minimum, meet the interest rate declared by Government administered provident fund. A part o1 the Company’s contribution is transferred to Government administered pension fund.
The Trust invests funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trust is not lower than the rate of interest declared annually by the Government under The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.
The Actuary has carried out actuarial valuation of plan’s liabilities and interest rate guarantee obligations as at the Balance Sheet date using Projected Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, an amount of Rs. 386.79 lakhs (March 31,2025 : Rs. 254.94 lakhs) has been provided towards future anticipated shortfall with regard to interest rate obligation of the Company as at the Balance Sheet date. Disclosures given hereunder are restricted to the information available as per the Actuary’s Report.
37. Employee benefit plans (Contd.)
The Company provides for gratuity, a defined benefit retirement plan (“the Gratuity Plan”) covering eligible employees (Fixed term employees: one years and for others employees with minimum five years of continuous service). The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s last drawn salary/wage and the tenure of employment with the Company. The Company contributes gratuity liabilities to the Tata Robin Fraser Gratuity Fund Trust (“the Trust”).
The Company provides post retirement pension for retired whole-time directors. Under the said scheme, the Company pays monthly pension to retired whole-time directors based on the terms of the agreement executed with them. The same is subject to revision at periodic interval requiring approval from the board of directors. Post retirement pension plan is not funded.
The Company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans. Within this framework, the Company’s ALM objective is to match assets to the benefit obligations by investing in fixed interest securities with maturities that match the benefit payments as they fall due.
The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risk from previous periods. Investments are well diversified such that the failure of any single investment would not have a material impact on the overall level of assets.
These plans expose the Company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.
Investment Risk: The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate
which is determined by reference to market yields at the end of the reporting period on government bonds. Currently, it has relatively balanced mix of investments in government securities and other debt instruments.
Interest risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined
benefit obligation will tend to increase. However, this will be partially offset by an increase in the value of plan’s debt investments.
Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.
Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the defined benefit obligation.
Actuarial valuation of the plan assets and the present value of defined benefit obligation were carried out as at March 31,2026 by an independent actuary, Fellow of the Institute of Actuaries of India. 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.
During the year ended March 31,2026 and March 31,2025 there was no amendment, curtailments and settlements in the gratuity plan and post retirement pension plans except disclosed below for new labour code.
The fair value of the above equity and securities issued by government are determined based on quoted market prices in active markets. The fair value of other debt instruments are also determined based on quoted price in active market. The fair value of balance in special deposit scheme is determined based on its carrying value. The fair value of balance with Life Insurance Corporation is determined based on the funds statement received from the Life Insurance Corporation(LIC).
The actual return on plan assets greater/(lesser) than discount rate Rs. (30.27) lakhs (March 31,2025: Rs. 25.52 lakhs).
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase, attrition and mortality. The sensitivity analysis given below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
• If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 82.46 lakhs (increase by Rs. 93.57 lakhs) [March 31,2025: decrease by Rs. 104.12 lakhs (increase by Rs. 120.93 lakhs)]
• If the expected salary increase growth increases (decreases) by 1%, the defined benefit obligation would increase by Rs. 94.66 lakhs (decrease by Rs. 85.24 lakhs) [March 31,2025: increase by Rs. 119.79 lakhs (decrease by Rs. 105.09 lakhs)]
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is likely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
In presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is same as applied in calculating the defined benefit obligation liability recognised in the balance sheet. There was no change in the method and assumptions used in preparing the sensitivity analysis from prior years.
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected pension increase and mortality. The sensitivity analysis given below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
• If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 71.04 lakhs (increase by Rs. 79.44 lakhs) [March 31,2025: decrease by Rs. 76.98 lakhs (increase by Rs. 86.49 lakhs)]
• If the expected pension increase growth increases (decreases) by 1%, the defined benefit obligation would increase by Rs. 23.99 lakhs (decrease by Rs. 23.41 lakhs) [March 31,2025: increase by Rs. 83.23 lakhs (decrease by Rs. 75.36 lakhs)]
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is likely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
In presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is same as applied in calculating the defined benefit obligation liability recognised in the balance sheet. There was no change in the method and assumptions used in preparing the sensitivity analysis from prior years.
(C) Compensated absence
The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature.The Leave encashment benefit scheme is a salary Defined Benefit Plan that provides for a lump sum payment made on exit or encashable either by way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of Last Drawn Monthly Basic Salary plus Dearness Allowances and the accumulated leave balances and paid as lump sum at exit. The expected cost of accumulating compensated absences is determined by actuarial valuation. Expense on non-accumulating compensated absences is recognised in the period in which the absences occur.
This benefit includes Cash equivalent of Unutilized leave balances at the time of exit subject to Annual entitlement and ceiling of maximum encashable leave accumulation. The Company recognised a provision for compensated absence in the balance sheet amounting to Rs. 411.01 lakhs (March 31,2025: Rs. 524.11 lakhs)
37.03 Other Contributions
Employee State Insurance [Total Amount charged to the Statement of Profit & Loss for the year Rs. 10.50 lakhs (March 31,2025: Rs. 13.59 lakhs)] Contribution to these scheme are made by the company and Employee as required as per the statute.
38. Financial instruments
38.01 Capital management
The Company manages its capital to ensure that entities will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Capital structure of the Company consists of net debt and the total equity of the Company.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions.To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, long term liability component of NCRPS and lease liability, less cash and short-term deposits.
The Net debt to equity ratio for the current year has decreased mainly due to increased borrowing and significant cash utlisation for investments and operational funding needs.
38.02 Financial risk management objectives and policies
The Company’s principal financial liabilities, comprise borrowings, trade and other payables. The Company’s principal financial assets include trade and other receivables, investments, cash and short-term deposits that derive directly from its operations. The Company is exposed to market risk (including interest rate risk and other price risk), credit risk and liquidity risk.
For instance, the delay in collection of trade receivables may put stress on the short term liquidity which is mitigated by continuous monitoring, churning and liquidating the short term investments and to minimise loss of income from short term investments.
The Company seeks to minimise the effects of these risks by exploring the possibility of investing the surplus funds in the short term portfolios.
The corporate treasury management reports on quarterly basis to the board of directors that monitors risks and policies implemented to mitigate risk exposures.
38.03 Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include investment in mutual fund and other investment.
The Company’s investment in mutual funds are basically in Liquid Funds with a shorter duration less than 1 year subject to continuous churning of the investments.
38.04 Foreign currency risk management
The Company enter into sale and purchase transactions; consequently, exposures to exchange rate fluctuations arise. The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period were nil.
38.05 Interest rate risk management
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market interest rates. The company’s exposure to the risk of changes in market interest rates relates primarily to the company’s long -term debt obligations with floating interest rates.
The Company does not have any borrowings from Banks or Financial Institutions. Therefore changes in market interest rate does not have any bearing on the company’s profit before tax.
38.06 Credit risk management
Credit risks refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company’s Board approved financial risk policies comprise liquidity, currency, interest rate and counterparty risk. Financial instruments that are subject to concentrations of credit risk, principally consist of trade receivables and contract assets, security deposits, etc. None of the financial instruments of the Company result in material concentrations of credit risks. The Company does not engage in speculative treasury activity but seeks to manage risk and optimise interest and commodity pricing through proven financial instruments.
The credit risk on bank balances, bank deposits and investments in mutual funds is limited because the counterparties are banks or fund houses with high credit ratings.
Trade receivables and Contract assets consist of a large number of customers, spread across diverse industries. Ongoing credit evaluation is performed on the financial condition of accounts receivable. The Company’s as part of verification of the customer credentials, ensures the compliance with the following criterion:
• Customer’s financial health by examining the latest available financial information.
• The rating of the customer by a reputed agency.
• Brand and market reputation of the customer.
• Ageing analysis.
A default on a financial asset is when the counterparty fails to make contractual payments when they fall due or when the extended credit period expires. This definition of default is determined by considering the business environment in which the Company operates and other macro-economic factors.
Trade receivables and Contract assets are written off or impaired where there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a repayment plan with the Company. Where receivables have been written off or impaired, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised against the same line item.
In determining allowance for credit losses of trade receivables and contract assets, the Company has used the practical expedient by computing the expected credit loss allowance based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on ageing of receivables and the rates used in provision matrix.
To measure the expected credit losses, trade receivables and contract assets have been grouped based on the credit risk characteristics. The Contract assets relates to retention money receivables and unbilled work in progress having amount due from customer for contract in progress and have substantially the same credit risk characteristics as the trade receivables for the same type of contract. The Company has therefore concluded that the expected credit loss rate for trade receivable are reasonable approximation of the loss rate for the contract assets.
Loss allowance as at March 31,2026 and March 31, 2025 was determined as follows for trade receivables and contract assets under the simplified approach:
1) The Company has made necessary fillings with the Registrar of Companies(ROC) with respect to registration of charges within the statutory timelines.
2) The quarterly returns/statement of current assets filed by the Company during the current year, as applicable and previous year with the respective banks are in agreement with the books of accounts.
3) As on March 31,2026, the Company does not have any working capital facility sanctioned, thus no assets have been pledged as security. 38.10 Fair value measurements
The material accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2.09 to 2.11.
Financial assets and liabilities
The following table summarises financial assets and liabilities measured at fair value on a recurring basis and financial assets and financial liabilities that are not measured at fair value on a recurring basis (but fair value disclosure are required):
The above information have been disclosed to the extent such suppliers could be identified by the management on the basis of information available with the Company and the same has been relied upon by the auditors.
45.02 Revenue from construction contracts are recognised on percentage completion method. The estimated cost to complete the contracts is arrived at based on technical data, forecast, assumptions and contingencies and are based on the current market price or firm commitments, as applicable. Such estimates/assumptions are subject to variations and completion of the projects within the estimated time. The management has necessary internal control in place around the estimation process and variation is not expected to be significant.
45.03 The Board of Directors of the Company had approved Employee Separation Scheme (‘ESS’) for its employees on May 2, 2025. This scheme was launched on July 18, 2025 and closed on August 18, 2025. The Management has accepted application of 52 employees under this voluntary scheme and accordingly got separated from the Company effective September 1, 2025. The Company has taken a one-time cost of Rs.1,130.95 Lakhs under this scheme and the same has been disclosed as exceptional item.
45.04 During the year, TRF Singapore Pte. Ltd. has exercised a scheme of reduction of its share capital and repatriated the proceeds to the Company. This has resulted in the reduction in the carrying value of the subsidiary’s investment and net loss of Rs. 7.67 Lakhs including the effects of exchange fluctuation and change in fair value of share. Further the Company has also recognised an impairment reversal of Rs. 583.14 Lakhs in the carrying value of investments in its subsidiary. The net impact of aforesaid items amounting to Rs. 575.47 Lakhs has been disclosed as exceptional item.
45.05 The Company has used an accounting software for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and that has operated throughout the year for all relevant transactions recorded in the software, except that at database level the audit trail of modification does not capture the pre-modified values throughout the year. Further, the audit trail feature has not been tampered with during the year and to the extent maintained in the prior year, has been preserved by the Company as per the statutory requirements for record retention.
45.06 The Board of Directors of TRF Singapore Pte Ltd. (TRFS) and TRF Holdings Pte. Ltd (TRFH) at their respective meetings dated May 12, 2026, have approved a proposal for voluntary liquidation of TRFS and TRFH, subject to approval of respective shareholders and regulators, in view of the absence of viable business prospects and the recurring compliance costs.
45.07 The provisions relating to Corporate Social Responsibility under Section 135 of the Act are not applicable to the Company.
45.08 The Government of India, with effect from November 21, 2025, notified the Code on Social Security, 2020; the Occupational Safety, Health and Working Conditions Code, 2020; the Industrial Relations Code, 2020; and the Code on Wages, 2019 (collectively, the “Labour Codes”), which replace existing central labour legislations. This has resulted in an increase in gratuity expenses in respect of services rendered in prior years. The impact, as assessed by the Company for the past service cost is Rs. 83.69 Lakhs. In accordance with Ind AS 19, the past service cost has been recognised in the current year in which the plan amendment became effective. The gratuity and leave encashment obligation has been actuarially valued by an independent actuary using the projected unit credit method, considering the revised definition of wages. The Company continues to closely monitor the finalisation of the Central and State Rules, as well as government clarifications on other aspects of the Labour Codes, and will apply the appropriate accounting treatment based on these developments as necessary.
45.09 The Hon’ble Supreme Court of India in its judgment in the matter of Vivekananda Vidyamandir & Others Vs The Regional Provident Fund Commissioner (II) West Bengal laid principles in relation to non-exclusion of certain allowances from the definition of “basic wages” for the purposes of determining contribution to provident fund under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. Based on initial assessment performed by the Company, the order did not result in any impact on these standalone financial statements. The management will continue to assess the impact of further developments in this regard and deal with it accordingly.
54. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
55. No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
56. The Company has made investments in thirteen mutual fund schemes during the year. The Company has not granted any loans/advances in nature of loans or stood guarantee, or provided security to any other parties during the year.
57. No proceeding have been initiated on or are pending against the company for holding of benami property under benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
58. The Company has done an assessment to identify Core Investment Company (CIC) [including CIC’s in the Group] as per the necessary guidelines of Reserve Bank of India ( including Core Investment Companies (Reserve Bank) Directions, 2016). The Companies identified as CIC’s at Group level are Tata Sons Private Limited, Tata Industries Limited, Panatone Finvest Limited, TMF Holdings Limited, Protraviny Private Limited and T S Investments.
59. Approval of financial statements
The financial statements were approved for issue by the Board of Directors on May 12, 2026.
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