m) Provisions and contingencies
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation. The
expense relating to a provision is presented in the statement of profit and loss net of any
reimbursement.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.
Provisions and contingent liabilities are reviewed at each Balance Sheet date.
n) Retirement and other employee benefits
Retirement benefit in the form of Provident Fund is a defined benefit contribution scheme. The Company
has no obligation other than the contribution payable to the Provident Fund. The Company recognizes
contribution payable to the Provident fund scheme as an expenditure, when an employee renders the
related service. If the contribution payable to the scheme for service received before the balance sheet
date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability.
The employee's gratuity fund scheme and post-retirement medical benefit schemes are Company's
defined benefit plans. The contributions under the plans are made to separately administered funds. The
cost of providing benefits under such defined benefit plans is determined based on the actuarial
valuation using the Projected Unit Credit Method as at the date of the Balance sheet. In case of funded
plans, the fair value of plan asset is reduced from the gross obligation under the defined benefit plans, to
recognize the obligation on the net basis.
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined benefit liability and the return on plan assets
(excluding amounts included in net interest on the net defined benefit liability), are recognized
immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in
the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent
periods.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The
Company recognizes the following changes in the net defined benefit obligation as an expense in the
statement of profit and loss:
- Service costs comprising current service costs, past-service costs, gains and losses on
curtailments and non-routine settlements; and
- Net interest expense or income
Accumulated leave, which is expected to be utilised within the next twelve months, is treated as short
term employee benefits. The Company measures the expected cost of such absence as the additional
amount that is expected to pay as a result of the unused entitlement that has accumulated at the
reporting date. The Company treats accumulated leave expected to be carried forward beyond twelve
months as long term compensated absences which are provided for based on actuarial valuation as at
the end of the period. The actuarial valuation is done as per Projected Unit Credit Method and all gains /
losses due to actuarial valuation are immediately recognised in profit or loss in the period in which they
arise.
o) Financial instruments
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.
Financial assets
Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in case of financial asset not recorded at fair
value through profit and loss, transaction cost that are attributable to the acquisition of the financial
assets.
The classification of financial assets at initial recognition depends on the financial asset's contractual
cash flow characteristics and the Company's business model for managing them. With the exception of
trade receivables that do not contain a significant financing component or for which the Company has
applied the practical expedient are measured at the transaction price determined under Ind AS 115.
Refer to the accounting policies in section (e) for Revenue from contracts with customers.
The Company's business model for managing financial assets refers to how it manages its financial
assets in order to generate cash flows. The business model determines whether cash flows will result
from collecting contractual cash flows, selling the financial assets or both. Financial assets classified
and measured at amortised cost are held within a business model with the objective to hold financial
assets in order to collect contractual cash flows while financial assets classified and measured at fair
value through OCI are held within a business model with the objective of both holding to collect
contractual cash flows and selling.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it
needs to give rise to cash flows that are solely payment of principal and interest (SPPI) on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument
level. Financial assets with cash flows that are not SPPI are classified and measured at fair value
through profit or loss, irrespective of the business model.
Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the trade date. i.e.
the date that the Company commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in three categories:
(i) Financial assets measured at amortized cost (debt instrument)
(ii) Financial assets designated at fair value through OCI with no recycling of cumulative gains and
losses upon derecognition (equity instruments)
(iii) Financial assets measured at fair value through profit or loss (FVTPL)
(i) Financial assets measured at amortized cost (debt instrument)
A 'financial asset' is measured at amortized cost if both the following conditions are met:
(a) the financial asset is held within a business model whose objective is to hold assets in order to
collect contractual cash flows, and
(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest (SPPI) on the principal amount outstanding.
This category generally applies to cash and bank balances, trade receivables, investments in
unquoted equity shares of subsidiary entity and associate entity, investment in G-sec, loans &
advances and other financial assets of the Company (Refer note 50 for further details).
This category is most relevant to the Company. After initial measurement, such financial assets are
subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized
cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortization is included in interest income in the profit or
loss.
(ii) Financial assets designated at fair value through OCI (equity instruments)
All equity investments in scope of Ind-AS 109 are measured at fair value. Equity instruments which
are held for trading are classified as at FVTPL. For all other equity instruments, the Company may
make an irrevocable election to present in other comprehensive income subsequent changes in the
fair value. The Company makes such election on an instrument-by-instrument basis. The
classification is made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on
the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts
from OCI to P&L, even on sale of investment / de- recognition of investment on restructuring by
investee. However, the Company may transfer the cumulative gain or loss into retained earnings
within equity. Equity instruments designated at fair value through OCI are not subject to impairment
assessment.
(iii) Financial assets at fair value through profit or loss (FVTPL)
Financial assets at fair value through profit or loss include financial assets held for trading, debt
securities and financial assets designated upon initial recognition at fair value through profit or loss.
Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with
net changes in fair value recognised in the statement of profit and loss.
FVTPL is a residual category for financial assets. Any financial asset, which does not meet the
criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.
In addition, the Company may elect to designate a financial asset, which otherwise meets amortized
cost or fair value through other comprehensive income criteria, as at fair value through profit or loss.
However, such election is allowed only if doing so reduces or eliminates a measurement or
recognition inconsistency (referred to as 'accounting mismatch'). The Company has designated
Loans to employees, investments in Government Securities, Debentures and State Development
Loans and other advances. (Refer note 50 for further details).
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the Company's balance sheet) when :
- The rights to receive cash flows from the asset have expired, or
- The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a 'pass¬
through' arrangement and either (a) the Company has transferred substantially all the risks and
rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the
risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a
pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the
asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to
the extent of the Company's continuing involvement. In that case, the Company also recognizes an
associated liability. The transferred asset and the associated liability are measured on a basis that
reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
Company could be required to repay.
On Derecognition of a financial asset, (except as mentioned in (ii) above for financial assets measured at
FVTOCI), the difference between the carrying amount and the consideration received is recognized in the
Statement of Profit and Loss.
Impairment of financial assets
The Company applies expected credit loss (ECL) model for measurement and recognition of impairment
loss on the following financial assets and credit risk exposure;
a) Financial assets that are debt instruments, and are measured at amortized cost e.g. loans, debt
securities, deposits and bank balances.
b) Financial assets that are equity instruments and are measured at fair value through other
comprehensive income (FVTOCI)
c) Trade receivables or any contractual right to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 115.
The Company follows 'simplified approach' for recognition of impairment loss allowance on trade
receivables or contract revenue receivables.
Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition. Lifetime ECL are the expected credit losses resulting from all possible default over the
expected life of a financial instrument.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines
that whether there has been a significant increase in the credit risk since initial recognition. If credit risk
has not increased significantly, 12 month ECL is used to provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is used.The Company uses the practical expedient in Ind AS
109 for measuring expected credit losses for trade receivables using a provision matrix based on ageing
of receivables. This amount is reflected under the head "Other Expense / Other Income" in the P&L.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss. Loans, borrowings and payables are subsequently measured at amortised cost whereas derivatives
are measured at fair value through profit and loss.
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Company's financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts and derivative financial instruments.
Subsequent measurement
For the purpose of subsequent measurement, financial liabilities are classified into two categories:
(i) Financial liabilities measured at fair value through profit or loss
(ii) Financial liabilities measured at amortised cost (loans and borrowings)
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial
liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near
term. This category also includes derivative financial instruments entered into by the Company that are
not designated as hedging instruments in hedge relationships as defined by Ind AS 109.
Gains or losses on liabilities held for trading are recognized in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated
as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities
designated as FVTPL, fair value gains / losses attributable to changes in own credit risk are recognized
in OCI. These gains / losses are not subsequently transferred to P&L. However, the Company may
transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are
recognized in the statement of profit or loss.
Financial liabilities measured at amortised cost (loans and borrowings)
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized
cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the
statement of profit and loss.
This category generally applies to borrowings.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognized in the statement of profit and loss.
Reclassification of financial assets and liabilities
The Company determines classification of financial assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for financial assets which are equity instruments and
financial liabilities. For financial assets which are debt instruments, a reclassification is made only if
there is a change in the business model for managing those assets. Changes to the business model are
expected to be infrequent. The Company's senior management determines change in the business
model as a result of external or internal changes which are significant to the Company's operations. Such
changes are evident to external parties. A change in the business model occurs when the Company
either begins or ceases to perform an activity that is significant to its operations. If the Company
reclassifies financial assets, it applies the reclassification prospectively from the reclassification date
which is the first day of the immediately next reporting period following the change in business model.
The Company does not restate any previously recognized gains, losses (including impairment gains or
losses) or interest.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the recognized amounts and there is an intention to
settle on a net basis, to realise the assets and settle the liabilities simultaneously.
p) Derivative financial instruments
Initial recognition and subsequent measurement
The Company uses derivative financial instruments, such as forward currency contracts to hedge its
foreign currency risks. Such derivative financial instruments are initially recognized at fair value through
profit or loss (FVTPL) on the date on which a derivative contract is entered into and are subsequently re¬
measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivative financial instrument or on
settlement of such derivative financial instruments are recognized in statement of profit and loss and are
classified as Foreign Exchange (Gain) / Loss except those relating to borrowings, which are separately
classified under Finance Cost.
q) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, that are readily convertible to a known amount
of cash and subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consists of cash and short¬
term deposits, as defined above, net of outstanding bank overdrafts and cash credit facilities as they are
considered an integral part of the Company's cash management.
r) Cash dividend to equity holders of the Company
The Company recognizes a liability to pay dividend to equity holders of the Company when the
distribution is authorized and the distribution is no longer at the discretion of the Company. As per the
corporate laws in India, a distribution is authorized when it is approved by the shareholders. A
corresponding amount is recognized directly in equity.
s) Earnings per share
Basic earnings per share are calculated by dividing the profit for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the profit for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.
t) Segment Accounting
The Chief Operational Decision Maker monitors the operating results of its business Segments
separately for the purpose of making decisions about resource allocation and performance assessment.
Segment performance is evaluated based on profit or loss and is measured consistently with profit or
loss in the financial statements. The Operating segments have been identified on the basis of the nature
of products/services.
The accounting policies adopted for segment reporting are in line with the accounting policies of the
Company. Segment revenue, segment expenses, segment assets and segment liabilities have been
identified to segments on the basis of their relationship to the operating activities of the segment. Inter
segment revenue, if any, are recognised at sales price. Profit or loss on inter segment transfer are
eliminated at the Company level. Revenue, expenses, assets and liabilities which relate to the Company
as a whole and are not allocated to segments on a reasonable basis have been included under
"unallocated revenue / expenses / assets / liabilities”.
The identified reportable segments are Fertilizers, Chemicals and Others in terms of the requirements of
Ind AS 108 "Operating Segments” as notified under section 133 of the Companies Act, 2013.
2.3 Recent accounting pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time.
Ind AS 21 - The Effects of Changes in Foreign Exchange Rates
In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates,
applicable w.e.f. April 1, 2025. The Company has reviewed the amendment and based on its evaluation has
determined that it does not have any significant impact in its financial statements.
Ind AS 1 - Presentation of Financial Statements
In August 2025, MCA notified amendments to Ind AS 1, applicable w.e.f. April 1, 2025. The amendment
relates to classification of liabilities as current or non-current and non-current liabilities with covenants. In
the context of classifying a liability as current, it removes the requirement of existence of a right to defer
settlement for at least 12 months after the reporting date and instead requires that the said right should exist
on the reporting date and have substance. The amendment also introduces guidance on classification of
liabilities with covenants. The Company has no impact of these amendments in its classification criteria of
current and non-current liabilities.
Ind AS 7- Statement of Cash Flows and Ind AS 107 - Financial Instruments: Disclosures
In August 2025, MCA notified amendments to Ind AS 7 & Ind AS 107, applicable w.e.f. April 1, 2025. The
amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier finance
arrangements and explain the nature of the arrangements, the carrying amount of liabilities and the range of
payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a factor that
may cause concentration of liquidity risk. The Company has reviewed the amendment and based on its
evaluation has determined that it does not have any impact in its financial statements.
Ind AS 12, Income Taxes
In August 2025, MCA notified amendments to Ind AS 12 with respect to International tax reform-Pillar Two
model rules. It does not have any impact on financial statements.
3 Significant accounting judgement, estimates and assumptions
The preparation of the Company's Financial Statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities,
and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.
Judgements
In the process of applying the Companies accounting policies, management has made the following
judgements which have the most significant effects on the amounts recognised in the financial statements.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below. The Company based its assumptions and
estimates on parameters available when the financial statements were prepared. Existing circumstances and
assumptions about future developments, however, may change due to market changes or circumstances
arising that are beyond the control of the Company. Such changes are reflected in the assumptions when
they occur.
Taxes
Deferred tax assets are recognized for unused tax credits to the extent that it is probable that taxable profit
will be available against which the credits can be utilised. Significant management judgment is required to
determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the
level of future taxable profits together with future tax planning strategies. Further details on taxes are
disclosed in Note 26.
Defined benefit plans (gratuity benefits and other post-employment medical benefits)
The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present
value of these obligations are determined using actuarial valuations. An actuarial valuation involves making
various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases, medical cost escalations and mortality rates etc.
Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for
plans operated in India, the management considers the interest rates of government bonds / securities in
currencies consistent with the currencies of the post- employment benefit obligation.
The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality
tables tend to change only at interval in response to demographic changes. Future salary increases and
gratuity increases are based on expected future inflation rates and Company's obligation under Long Term
Wage Settlement which is evaluated in block of four years. Medical cost escalations are based on expected
future medical expenditure.
Further details about gratuity and post-employment medical benefits obligations are given in Note 41.
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques
including the DCF model. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include
considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these
factors could affect the reported fair value of financial instruments. Refer Note 50 for further disclosures.
The Company has invested in the equity instruments of various companies. The valuation exercise of
unquoted equity instruments carried out by the Company with the help of an independent valuer, etc. has
estimated fair value at each reporting period based on available historical annual reports and other
information in the public domain.
Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less
costs of disposal calculation is based on available data for similar assets or observable market prices less
incremental costs for disposing of the asset. The value in use calculation is based on a Discounted Cash
Flow (DCF) model. The cash flows are derived from the budget for the future years and do not include
restructuring activities that the Company is not yet committed to or significant future investments that will
enhance the asset's performance being tested. The cash flow projections, beyond period covered by the
most recent budget / forecast, the Company extrapolates cash flow projections taking base of budget
working using a steady or declining growth rate for subsequent years unless an increasing trend can be
justified. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the
expected future cash-inflows and the growth rate used for extrapolation purposes.
Leases - Estimating the incremental borrowing rate
The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have
to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a
similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the
Company 'would have to pay', which requires estimation when no observable rates are available or when they
need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using
observable inputs (such as market interest rates) when available and is required to make certain entity-
specific estimates.
Evaluation of uncertain tax demand positions and other legal litigation
The Company has material uncertain tax demand positions including matters under dispute which involves
significant judgement to determine the possible outcome of these disputes and significant open legal
proceedings under arbitration and courts for various matters with its contractors / vendors and in
Government departments, continuing from earlier years which are part of Contingent Liability. The Company
has made estimates to recognize the provisions mainly for probable claims arising out of litigations /
disputes pending with authorities under various statutes and with other parties. The probability and the
timing of the outflow with regard to these matters depend on the outcome of the litigations/disputes. Hence,
the Company is not able to reasonably ascertain the timing of the outflow.
* Amount nullified on conversion to ? crores.
** During the current year, the Company has made investment of ? 35.71 crores by acquiring 7,34,369 equity
shares of GACL, having face value of ?10/- each at an average price of ? 486.29/- per equity share. The post
issue, shareholding of the Company has changed from 2.40% to 3.40% of the total paid up share capital of
GACL.
@ The Company is carrying physical share certificate in respect of this investment.
# M/s Ecophos GNFC India Private Limited (EGIPL) is the joint venture company formed by the Company and
M/s Ecophos S.A - a Belgium based company for manufacturing of Di-Calcium Phosphate (DCP) at Dahej
location. The Company holds 15% shareholding of EGIPL at issued value of ? 24.21 crores. During the FY
2019-20, M/s Eophos S.A. (shareholder) holding 85% shareholding of EGIPL had applied for bankruptcy.
Consequently all the nominee directors of EGIPL, Managing Director and Company Secretary of EGIPL
resigned. Plant installation for manufacturing of DCP didn't commenced. Accordingly, the Company valued
such investment as at March 31, 2026 and as at March 31, 2025 at the nominal consideration of ? 1.
$ The Company had acquired various securities from GNFC-EPFT which includes investments in various long
term secured/unsecured Non-Convertible Debentures (NCD) issued by IL&FS Group. Such investments have
been recorded at the nominal fair values of ? 4.94 only (i.e. ? 1 for each security reduced by the amount
received till date) as against total face value of ? 26.07 crores as on 31.03.2026.
Further, during the previous year, the Company has received ? 3.56 crores from Reliance Capital as full and
final settlement towards investments in its two non-convertible debentures series. The Company had already
made good the loss while transferring the PF corpus to the Employees' Provident Fund Organisation (EPFO)
by considering the fair value of securities at ? 1 each. Total face value of investments was ? 6 crores.
*** During the previous year, the Company had received 2,00,000 units of Roadstar Infra Investment Trust (RIIT)
having a face value of ? 100 per unit, aggregating to ? 2 crores, under Round 2 and Round 3 of interim
distribution from IL&FS. Although these units are listed on the stock exchange, there has been no active
trading and fair price discovery remains pending. Consequently, the Company has recognised the investment
at a nominal fair value of ? 0.22 as on 31.03.2026.
**** As per the stock exchange filing of Gujarat Gas Limited (GGL) on 17.04.2026, Hon'ble MCA, vide its order
dated 08.04.2026, has sanctioned the Composite Scheme of Arrangement wherein the Gujarat State
Petroleum Corporation Limited (GSPC), Gujarat State Petronet Limited (GSPL) will be amalgamated with the
GGL.
All the Companies involved in the Composite Scheme of Arrangement have filed certified copy of the
aforesaid Order, along with a copy of the Composite Scheme of Arrangement, in e-Form INC-28 with the
Registrar of Companies, Ahmedabad on 01.05.2026 and the Scheme has become effective.
Further, GGL has fixed 12.05.2026 as the Record Date for determining the shareholders of GSPC and GSPL
who shall be issued and allotted the shares of GGL under the Scheme.
Considering the above facts, the Company, has considered this event as an adjusting event under Ind AS 10.
Accordingly, the Company has de-recognised the investments in GSPC and GSPL as on 31.03.2026 and
recognised the shares to be received from GGL, as per the approved share exchange ratio, at market price of
GGL as on last trading day of financial year. The impacts of ? 11.31 crores is recognised in other
comprehensive income as per the option already selected by the company at the time of adoption of Ind AS.
(a) The fair value of the quoted equity investments are derived from quoted market prices in active market.
(b) Investments include investment in unquoted equity shares. Fair value of unquoted investment in equity
instrument have been carried out by independent valuer using Net Assets Value model and comparable
companies model following Market Approach and Asset Approach. The valuation requires management to
make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk,
volatility, net assets and market multiples. The probabilities of various estimates within the range can be
reasonably assessed and are used in management's estimates for fair value for these unquoted equity
instruments.
* includes gross interest accrued ? 2.91 crores (previous year ? 3.24 crores) in current loans to employees and
of ? 40.68 crores (previous year ? 35.96 crores) in non-current loans to employees.
# No loans are due from Promoters, Directors, KMPs and the related parties (as defined under Companies Act,
2013,) either severally or jointly with any other person, that are repayable on demand or without specifying
any terms or period of repayment.
@ includes secured Loans to employees having fair value of ? 13.45 crores (previous year ? 13.07 crores) in
current and ? 144.05 crores (previous year ? 138.38 crores) in non-current amount. Employees have
mortgaged / hypothecated their Buildings and Vehicles to the Company
Note:
a) Refer Note 44 for Ageing of Trade receivables as on March 31, 2026 and March 31,2025.
b) No trade or other receivables are due from Directors or other officers of the Company either severally or jointly with any other
person; nor any trade or other receivables are due from firms or private companies in which any Director is a partner, a
director or a member.
c) The fair value of trade receivables (including subsidy receivables) is not materially different from the carrying value
presented.
d) Trade receivables are non interest bearing and are generally on terms of 30 to 90 days. Trade receivables of (n)Code division
(IT) are of ? 31.66 crores (previous year ? 32.60 crores) are governed by the terms of respective contract agreement. Out of
the dues, the Company has provided impairment allowance of ? 4.36 crores as on March 31, 2026 (as on March 31, 2025:
? 1.63 crores) based on credit risk model followed by the Company.
e) Subsidy receivables represents amount receivable from government against sale of fertilizers.
17.2. Terms/rights attached to the equity shares
Rights, preferences and restrictions attached to equity shares:
The Company has only one class of equity shares having par value of ? 10 per share, i.e. equity shares which
rank pari passu in all respects. Each holder of equity share is entitled to one vote per share.
For the current financial year 2025-26, the Company has proposed dividend of ? 21/- per equity share to
equity shareholder (for the previous financial year dividend of ? 18/- per share declared). The dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting.
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 of all preferential amounts. The distribution will be in proportion to
the number of equity shares held by the shareholders.
17.4. Equity shares movement during five years preceding March 31, 2026
Equity shares extinguished on buy-back
During the FY 2023-24, the Company bought back 84,78,100 equity shares for an aggregate amount of
? 652.81 crores being 5.46% of pre-buy back fully paid up equity share capital at ? 770 per equity share. The
equity shares bought back were extinguished on December 21, 2023.
17.5. Disclosure of Shareholding of Promoters
Disclosure of shareholding of promoters as at March 31, 2026 is as follows :
Securities premium is used to record the premium on issue of shares. This reserve is utilized in accordance with
the provision of section 52 (2) (c) of the Companies Act, 2013.
Capital redemption reserve:
As per Companies Act, 2013, capital redemption reserve is created when company purchases its own shares out of
free reserves or securities premium. A sum equal to the nominal value of the shares so purchased is transferred to
capital redemption reserve. The reserve is utilised in accordance with the provisions of section 69 of the
Companies Act, 2013.
Short term borrowings from banks as cash credit and overdraft accounts of ? Nil (March 31, 2025: ? 99.16 crores)
are secured by first charge by way of hypothecation of inventories and trade receivables and all other movable
assets, both present and future and further secured by second charge by way of mortgage on all immovable
properties. These charges are ranking pari-passu among the working capital lenders.
Interest rate details for short term borrowings:
(i) Cash credit and overdrafts facilities carries interest rates ranging from 7.45% to 9.80% p.a. (Previous year
range is 8.00% to 10.10% p.a.)
14023/22/2007-FP dated 14.12.2009 has accrued to the Company since the conditions attached to the grant
have been fulfilled by the Company. Till date, the government had disbursed ? 1,146.43 crores towards
capital grant as against ? 1,213.06 crores and ? 348.45 crores towards grant as reimbursement of borrowing
cost as against total borrowing cost of ? 195.47 crores. Accordingly, the Company has, pending settlement,
recorded a net liability of ? 85.06 crores (net of adjustment of receivable against return on investment of
? 1.29 crores) towards capital grant.
@ Includes ? 6.66 crores (March 31, 2025 : ? 1.39 crores) payable to Micro and Small Enterprises which have
been determined to the extent such parties have been identified on the basis of information collected by the
Management.
$ Escrow account liability represents amount received as Earnest Money Deposit & Tender fees against
e-auction done on behalf of various local authorities of Government of Gujarat. Corresponding asset is
disclosed in Note 15 as "Bank balances in escrow accounts".
# Not due for credit to "Investors Education and Protection Fund".
The capital grant from Government of India, Ministry of Chemicals & Fertilizers, Department of Fertilizers for feed
stock conversion project from 'LSHS/FO' to 'Gas' vide sanction letter no 14023/22/2007-FP dated 14.12.2009 has
accrued to the Company since the conditions attached to the grant have been fulfilled by the Company.
Accordingly, the grant of ? 1,213.06 crores was recorded as deferred income as contemplated under Para 7 and 12
of Ind AS - 20 on 'Accounting for Government Grants and Disclosure of Government Assistance' and it is being
amortized over the useful life of the corresponding assets. The aforesaid grant has been disbursed by the
Government of India.
* Including ? 11.18 crores (previous year ? 11.70 crores) on FVTPL Financial Assets.
** Including ? 24.15 crores (previous year ? 23.25 crores) on FVTOCI Financial Assets.
*** Amount nullified on conversion to ? Crores.
# Miscellaneous income for the previous year includes ? 6 crores received towards maturity amount of non¬
convertible debentures of AP Power Fin Corp Ltd. The said investment was matured during the FY 2023-24
however the maturity amount was not received till the 31.03.2024 and accordingly it was fair valued to ? 1
during FY 2023-24. Therefore, the aforesaid receipt has been recorded as income of the Company.
$ Miscellaneous income for the previous year includes previous year ? 3.06 crores received from IL&FS
Financial Services Limited as interim distribution towards investments in its non-convertible debentures.
Further, it includes ? 3.56 crores received from Reliance Capital as full and final settlement towards
investments in its non-convertible debentures. The Company had already made good the loss while
transferring the PF corpus to the Employees' Provident Fund Organisation (EPFO) by considering the fair
value of securities at ? 1 each and therefore, the aforesaid receipt has been recorded as income of the
Company.
Note 39 : Leases:
Company as a lessee
The Company has taken various land, warehouses, godowns, guest houses, office premises and vehicles used in
its operations. These are generally cancellable having a term between one to three year extendable for further
period as per the terms of rental agreements.
The Company also has certain leases of warehouses, godowns, office premises and vehicles with lease terms of
12 months or less. The Company applies the 'short-term lease' recognition exemptions for these leases.
Company as a lessor
The Company has entered into operating leases on its investment property portfolio consisting of certain office.
Rent income also includes rentals received from lease of office premises. These leases is generally for a period of
three to four years. There are no restrictions imposed by lease arrangements.
Future minimum rentals receivable under non-cancellable operating leases as at March 31 are as follows:
Note (a) :
The shortfall in CSR expenditure for the financial year ended March 31, 2026 and March 31, 2025, has been
deposited into the designated 'Unspent CSR Account' by April 30, 2026 and April 30, 2025 respectively, in
accordance with Section 135(6) of the Companies Act, 2013
Note (b) :
The CSR expenditure has been incurred towards implementation of various developmental projects and
community-centric initiatives across multiple thematic areas including sectors like Women Empowerment, Rural
Development, Livelihood Enhancement, Preventive Healthcare, Promoting Education, Disaster Management,
Environmental Sustainability, Promoting Gender Equality.
All projects undertaken fall within the scope of Schedule VII of the Companies Act, 2013 and are aligned with the
Sustainable Development Goals (SDGs).
Note (c) :
Represents contribution to Narmadanagar Rural Development Society (NARDES), the CSR implementation arm of
the Company for execution of the CSR programs across operational geographies.
B. Defined benefit plans:
The Company has following post employment benefits which are in the nature of defined benefit plans:
(a) Gratuity
(b) Post retirement medical benefit
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of
service gets a gratuity as per payment of Gratuity Act, 1972. The Scheme is funded with Gratuity Trust, which
in turn makes contribution to Life Insurance Corporation of India (LIC) in the form of qualifying insurance
policy for future payment of gratuity to the employees.
Each year the management reviews the level of funding in the gratuity fund. Such review includes the asset -
liability matching strategy. The management decides its contributions based on the results of this review.
The management aims to keep annual contributions relatively stable at a level such that no plan deficit
(based on valuation performed) will arise.
The plan for the Post retirement medical benefit is unfunded.
The following table summarises the components of net benefit expense recognised in statement of profit
and loss and the funded status and amounts recognised in the balance sheet for the respective plans:
NOTE: 43 (A)
In earlier year, Hon'ble high Court of Gujarat sanctioned the Scheme of Arrangement and Demerger for transfer of
VSAT and ISP Gateway Business of the Company to ING Satcom Ltd., an unlisted Company against cash
consideration of ? 6 crores vide its Common Oral Order dated 15th June, 2012.
The "Appointed Date" of the Scheme is 1st April, 2010.
Pursuant to the Order of the Hon'ble High Court of Gujarat sanctioning the Scheme of Demerger, the Company
submitted two separate applications dated 31st January, 2013 to the Department of Telecommunications (DoT)
for transfer of VSAT and ISP License in the name of the Transferee Company viz. ING Satcom Limited.
However, the License Transfer Applications remained pending with DoT and as per the legal opinion and
assessment, though the Scheme of Demerger was sanctioned by the Hon'ble High Court, the Scheme of Demerger
is subject to and conditional upon the approval of DoT for transfer of Licenses from the Company to ING Satcom
Limited.
Therefore, vide an Agreement-Cum-Indemnity Bond dated 12.04.2014 executed between the Company and ING
Satcom Limited, the assets of demerged business (other than the licenses) were transferred to ING Satcom,
subject to certain terms and conditions, inter alia, including the terms for settling the Transaction in the eventuality
of non-transfer of Licenses.
Even though, both VSAT and ISP License have expired and the transfer of licenses to ING Satcom is now out of
question, settlement of Demerger Transaction with ING Satcom, as per the terms and conditions of the Agreement-
Cum- Indemnity Bond dated 12.04.2014, is still pending and therefore, no accounting treatment is given in the
books of the Company since 2014-15 till the financial year ended 31.03.2026.
Necessary accounting treatment will be given in the books of accounts of the Company either on disposal of
applications for transfer of Licences in the name of ING Satcom Limited by the competent authorities or on
finalization of settlement of transaction with ING Satcom Limited. The amount received is classified under other
current liabilities (refer Note 24).
NOTE: 43(B) - Demand Notice from Department of Telecommunication (DoT)
In the Financial Year (FY) 2014-15, the Company received a demand of ? 2,752 crores from the Department of
Telecommunications (DoT), Ministry of Telecommunications, Government of India, towards License Fee, including
interest and penalty, for the "Very Small Aperture Terminal (VSAT) License" and "Category A - Internet Service
Provider (ISP) - IT License." This demand pertained to the period from FY 2009-10 to FY 2013-14. The Company
challenged the demand before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), which
subsequently stayed the demand and restrained DoT from taking any coercive recovery action against the
Company.
Subsequently, in FY 2019-20, the Hon'ble Supreme Court of India, in the case of Union of India v. Association of
Unified Telecom Service Providers of India, (2020) 3 SCC 525 ("AGR Judgment"), upheld DoT's interpretation of
Adjusted Gross Revenue (AGR), affirmed that AGR includes revenue from both licensed as well as unlicensed
activities.
Pursuant to the Supreme Court ruling, DoT issued revised demand notices dated December 23, 2019, March 05,
2020 and July 15, 2022, amounting to ? 15,020 crores, ? 16,359 crores and ? 21,370 crores, respectively. The
demand period was retrospectively extended to encompass the period FY 2005-06 through FY 2019-20.
Aggrieved by these revised demands, the Company submitted representations to DoT on January 06, 2020,
February 21, 2020, April 03, 2020 and March 04, 2022, requesting reconsideration and withdrawal of the demands.
In its representations, the Company underscored that revenues from its Fertilizers & Chemicals business, which is
entirely unrelated to VSAT and ISP-IT Licenses, should not be included in computation of AGR and License Fees.
Subsequent legal & regulatory developments, such as distinction between non-Telecom PSUs and Core Telecom
Companies, duly recognized by both DoT and the Hon'ble Supreme Court; the TDSAT Judgment in the case of
Union of India Vs M/s Netmagic Solutions Pvt. Ltd, Civil Appeal 9012/2022 ("Netmagic Judgment") and; the 2021
Telecom Reforms, have carved out several exceptions to the interpretation of the term "AGR" and computation of
AGR and the License Fees.
These exceptions provide critical relief, particularly for the similar category of licensees and the non-telecom / non¬
licensed revenue streams.
Based on a detailed and meticulous legal assessment in consultation with eminent Senior Advocates, the
Company firmly believes that it has strong grounds to contest the demands raised by DoT. Consequently, the
Company has neither provided for this amount in its books of account nor recognized it under contingent liability.
Note 46 : Segment Information
Operating Segments
The identified reportable segments are Fertilizers, Chemicals and Others in terms of the requirements of Ind AS 108
Operating Segments as notified under section 133 of the Companies Act, 2013. Other Segment mainly includes
Information Technology division activities and neem product related activities.
Identification of Segments:
The chief operational decision maker monitors the operating results of its Business segment separately for the purpose
of making decision about resource allocation and performance assessment. Segment performance is evaluated based
on profit or loss and is measured consistently with profit or loss in the financial statements, Operating segment have
been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.
Segment revenue and results:
The expenses and income which are not directly attributable to any business segment are shown as unallocable
expenditure and unallocable income.
Segment assets and liabilities:
Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and
equipment, trade receivables, inventory and other operating assets. Segment liabilities primarily include trade payable
and other liabilities. Common assets and liabilities which cannot be allocated to any of the business segments are shown
as unallocable assets / liabilities.
Inter Segment transfer:
Inter Segment revenues are recognised at sales price. The same is based on market price and business risks. Profit or
loss on inter segment transfer are eliminated at the Company level.
Summary of segment information is given below:
* The SOTP approach is normally used for valuing a firm by separately assessing the value of each business
segment or subsidiary or associate companies or Investments and adding them up to get thetotal value of
the firm. The valuation approach used to value each Business/Investment Companies are Cost
Approach/Market Approach/Income Approach. The appropriate approach / method with appropriate
adjustment is used considering size, nature and complexities of business/investment.
c) Financial Instrument measured at amortised cost
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial
statements are a reasonable approximation of their fair values since the Company does not anticipate that
the carrying amounts would be significantly different from the values that would eventually be received or
settled.
50.3 : Financial Risk objective and policies:
The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other
payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's
principal financial assets include loans, deposits, investments, trade and other receivables, and cash and cash
equivalents that derive directly from its operations. The Company also holds FVTOCI & FVTPL investments and
enters into derivative transactions.
In the ordinary course of business, the Company is mainly exposed to risks resulting from exchange rate
fluctuation (currency risk), interest rate movements (interest rate risk) collectively referred as Market Risk, Credit
Risk, Liquidity Risk and other price risks such as equity price risk and commodity price risk. The Company's senior
management oversees the management of these risks. It manages its exposure to these risks through derivative
financial instruments by hedging transactions as required. It uses derivative instruments such as foreign currency
forward contract to manage currency risks. These derivative instruments reduce the impact of both favourable and
unfavourable fluctuations.
The Company's risk management activities are subject to the management, direction and control of the
management of the Company under the guideline of the Board of Directors of the Company. The management
ensures appropriate financial risk governance framework for the Company through appropriate policies and
procedures and that financial risks are identified, measured and managed in accordance with the Company's
policies and risk objectives. It is the Company's policy that no trading in derivatives for speculative purposes may
be undertaken.
The decision of whether and when to execute derivative financial instruments along with its tenure can vary from
period to period depending on market conditions and the relative costs of the instruments. The tenure is linked to
the timing of the underlying exposure, with the connection between the two being regularly monitored. The
Company is exposed to losses in the event of non-performance by the counterparties to the derivative contracts.
All derivative contracts are executed with counterparties that, in management's judgment, are creditworthy. The
outstanding derivatives are reviewed periodically to ensure that there is no inappropriate concentration of
outstanding to any particular counterparty.
Further, all currency and interest risk as identified above is measured on a daily basis by monitoring the mark to
market (MTM) of open and hedged position. For year ends, the MTM for each derivative instrument outstanding is
obtained from respective banks. All gain / loss arising from MTM for open derivative contracts and gain / loss on
settlement / cancellation / roll over of derivative contracts is recorded in statement of profit and loss.
a) 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 price risk. Financial instruments affected by market
risk include loans and borrowings, FVTOCI investments and derivative financial instruments. The sensitivity
analysis in the following sections relate to the position as at March 31,2026 and March 31, 2025.
The sensitivity analysis have been prepared on the basis that the amount of net debt, interest rates of the
debt and derivatives are all constant as at March 31, 2026. The analysis exclude the impact of movements in
market variables on the carrying values of gratuity and other post-retirement obligations and provisions.
The following assumptions have been made in calculating the sensitivity analysis:
- The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market
risks. This is based on the financial assets and financial liabilities held at March 31, 2026 and March 31,
2025.
(i) Interest rate risk
The Company is exposed to changes in market interest rates due to financing, investing and cash
management activities. The Company's exposure to the risk of changes in market interest rates relates
primarily to the Company's short-term debt obligations.
(ii) Foreign currency risk
Exchange rate movements, particularly the United States Dollar (USD) and Euro (EUR) against Indian
Rupee (INR), have an impact on the Company's operating results. The Company manages its foreign
currency risk by entering into various foreign exchange contracts to mitigate the risk arising out of
foreign exchange rate movement on trade payables. Further, to hedge foreign currency future
transactions in respect of which firm commitment are made or which are highly probable forecast
transactions (for instance, foreign exchange denominated income) the Company has entered into
foreign currency forward contracts as per the policy of the Company.
The details of exposures hedged using forward contracts and the details of unhedged exposures are
given as part of Note 49.
The Company is mainly exposed to changes in USD and EURO. The below table demonstrates the
sensitivity to a 5% increase or decrease in the respective foreign currency rates against INR, with all
other variables held constant. The sensitivity analysis is prepared on the net unhedged exposure of the
Company as at the reporting date. 5% represents management's assessment of reasonably possible
change in foreign exchange rate.
(iii) Commodity price risk
The Company's operating activities require the ongoing purchase of natural gas. Natural gas being an
international commodity is subject to price fluctuation on account of the change in the crude oil prices,
demand supply pattern of natural gas and exchange rate fluctuations. The Company is not affected by
the price volatility of the natural gas to the extent consumed for Urea as under the Urea pricing formula
the cost of natural gas is pass through if the consumption of natural gas is within the permissible norm
for manufacturing of Urea.
The Company also deals in purchase of other feed stock materials (i.e. Rock phosphate, Toluene and
Denatured Ethyl Alcohol) which are imported by the Company and used in the manufacturing of
Ammonium Nitro Phosphate, Toluene Di-isocyanate and Ethyl Acetate. The import prices of these
materials are governed by international demand and supply pattern. There is a price and material
availability risk, which is managed by senior management team through sensitivity analysis, commodity
price tracking.
(iv) Equity price risk
The Company's investment in listed and non-listed equity securities are susceptible to market price risk
arising from uncertainties about future values of the investment securities. The Company manages the
equity price risk through diversification and by placing limits on individual and total equity instruments.
Reports on the equity portfolio are submitted to the Company's senior management on a regular basis.
The Company's Board of Directors reviews and approves all equity investment decisions.
At the reporting date, the exposure to unlisted equity securities at fair value was ? 396.65 crores.
Sensitivity analyses of these investments have been provided in Note 50.2(b).
At the reporting date, the exposure to listed equity securities at fair value was ? 465.21 crores. A
decrease of 5% on the BSE market price could have an impact of approximately ? 23.26 crores on the
OCI or equity attributable to the Group. An increase of 5% in the value of the listed securities would also
impact OCI and equity. These changes would not have an effect on profit or loss.
b) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities
(primarily trade receivables and other financial assets) and from its financing activities, including deposits
with banks, foreign exchange transactions and other financial instruments.
Customer credit risk is managed by the Company's established policy, procedures and control relating to
customer credit risk management. Credit quality of a customer is assessed based on an extensive evaluation
and individual credit limits are defined in accordance with this assessment.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In
addition, a large number of minor receivables are grouped into homogenous groups and assessed for
impairment collectively. The calculation is based on exchange losses historical data.
Credit risk from balances with banks and non-banking finance companies is managed by the Company's
treasury department in accordance with the Company's policy. Investments of surplus funds are made only
with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit
limits are reviewed by the Company's Board of Directors on an annual basis, and may be updated throughout
the year subject to approval of the Company's management. The limits are set to minimize the concentration
of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
Trade receivables
The Company's receivables can be classified into two categories, one is from the customers/ dealers in the
market and second one is from the central and state Government in the form of subsidy. As far as
Government portion of receivables is concerned, credit risk is Nil except where there are uncertainties due to
non-acknowledgement of claims. In respect of market receivables from the customers/ dealers, the
Company extends credit to customers in normal course of business. The Company considers factors such
as credit track record in the market and past dealings for extensions of credit to customers. The Company
monitors the payment track record of the customers. Outstanding customer receivables are regularly
monitored. The Company evaluates the concentration of risk with respect to trade receivables as for certain
products it extends rolling credit to its customers, against the collateral.
Trade receivables, other than subsidy receivables are secured to the extent of interest free security deposits
and bank guarantees received from the customers amounting to ? 21.29 crores and ? 21.63 crores as at 31st
March, 2026 and 31st March, 2025, respectively. (Refer Note No. 11 for Trade Receivables outstanding).
The Company follows a 'simplified approach' (i.e. based on lifetime ECL) for recognition of impairment loss
allowance on Trade receivables, other than those receivables from the Government of India. For the purpose
of measuring lifetime ECL allowance for trade receivables, the company estimates irrecoverable amounts
based on the ageing of the receivable balances and historical experience in respect of certain categories of
the customers. Individual trade receivables are written off when management deems them not to be
collectible
c) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments
associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity
risk may result from an inability to sell a financial asset quickly at close to its fair value.
The Company has an established liquidity risk management framework for managing its short term, medium
term and long term funding and liquidity management requirements. The Company's exposure to liquidity
risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company
manages the liquidity risk by maintaining adequate funds in cash and bank balances. The Company also has
adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal
operating commitments in a timely and cost-effective manner.
The table below analyses derivative and non-derivative financial liabilities of the Company into relevant
maturity groupings based on the remaining period from the reporting date to the contractual maturity date.
The amounts disclosed in the table are the contractual undiscounted cash flows.
50.4 : Capital Management:
For the purposes of the Company's capital management, capital includes issued capital and all other equity. The
primary objective of the Company's capital management is to maximize shareholder value. The Company manages
its capital structure and makes adjustments in the light of changes in economic environment and the requirements
of the financial covenants.
The Company monitors capital using gearing ratio, which is net debt (total debt less cash and bank balance)
divided by total capital plus net debt.
Since net debt is negative, same is considered as zero.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and
borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in
the current period. No changes were made in the objectives, policies or processes for managing capital during the
years ended March 31,2026 and March 31, 2025.
50.5 : Audit Trail
The Company uses an accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in
the accounting software. The audit trail was operated at application level throughout the year and the same has
been enabled at the database level from May 17, 2025. The audit trail at the Oracle database level captures details
of executed Data Manipulation Language (DML) and Data Definition Language (DDL) statements and it does not
retain both old and new values in respect of data modifications. Further, there is no instance of audit trail feature
being tampered with in respect of the accounting software where such feature is enabled. Furthermore, the audit
trail has been preserved by the Company as per the statutory requirements for record retention.
Note 51 : Additional disclosures required as per Schedule III to the Companies Act, 2013;
(i) The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March
31,2026 and March 31, 2025.
(ii) No proceedings have been initiated or pending against the Company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder, as at March 31, 2026 and March
31,2025.
(iii) The Company is not a declared wilful defaulter by any bank or financial Institution or other lender, in
accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India, during the year
ended March 31, 2026 and March 31, 2025.
(iv) The Company did not have any material transactions with companies struck off under Section 248 of the
Companies Act, 2013 or Section 560 of Companies Act, 1956 during the year ended March 31, 2026 and
March 31, 2025.
(v) There have been no transactions which have not been recorded in the books of accounts, that have been
surrendered or disclosed as income during the year ended March 31, 2026 and March 31, 2025, in the tax
assessments under the Income Tax Act, 1961. There have been no previously unrecorded income and related
assets which were to be properly recorded in the books of account during the year ended March 31, 2026
and March 31, 2025.
(vi) The Company has taken borrowings from banks and financial institutions and utilised them for the specific
purpose for which they were taken as at the Balance sheet date. Quarterly statements of current assets filed
by the Company with Bank are in agreement with the books of accounts of the Company for the respective
periods, except for the following :
Notes:
Note-1 : Liability towards accrued expenses not considered in returns / statements submitted to bank.
Note-2 : Change in estimated subsidy receivables after submission of stock statement not considered in returns /
statements submitted to bank.
Note-3 : reclassification adjustments after submission of stock statement not considered in returns / statements
submitted to bank
(vii) Based on the Ministry of Corporate Affairs (MCA) portal, charges aggregating to ? 0.46 crore are appearing
as "Open" as of March 31, 2026 which were executed with Banks (the lender) in relation to securing
repayment of loan facility related to year 1990. The Company is in process to obtain the No Objection
Certificates from the Banks. Once the same is received, the Company will file the "Satisfaction of Charge"
with the Registrar of Companies (ROC).
(viii) Utilisation of borrowed funds and share premium:
I :- The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a) 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
b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
II :- The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) 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
by or on behalf of the Funding Party (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
Note 52 : Code on Social Security
On November 21, 2025, the Government of India notified the four Labour codes - The code on Wages, 2019, The
Industrial Relations code, 2020, The code on Social Security, 2020 and The Occupational Safety, Health and
Working Conditions Code, 2020 - consolidating 29 existing Labour Laws. The Company has assessed the impact of
these changes on the basis of internal assessment with guidance provided by the Institute of Chartered
Accountants of India. Accordingly, the Company has estimated and recognised past service cost towards
incremental obligation in gratuity and leave encashment aggregating to ? 3.12 crores based on the best available
information and review of the existing wage structure, which is included in Employee Benefits Expense for the year
ended March 31, 2026. The Company continues to monitor the finalisation of Central / State Rules and any
clarifications from the Government on other aspects of the New Labour Codes and would provide appropriate
accounting effect in the relevant period on the basis of such developments as needed.
Note 53 :
Balances of certain trade receivables, advances given and trade payables are subject to confirmation/
reconciliation, if any. The management does not expect any material difference affecting the financial statements
on such reconciliation / adjustments.
Note 54 : Event occurred after the Balance Sheet Date:
The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the
approval of the financial statements to determine the necessity for recognition and/or reporting of any of these
events and transactions in the financial statements. As of May 18, 2026, there were no material subsequent events
to be recognized or reported that are not already previously disclosed.
Note 55 :
The previous year's figures have been regrouped / reclassified, wherever necessary, to conform to the figures of the
current year presentation.
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