N. Provision, Contingent Liabilities and Contingent Assets
Provisions
A provision is recognized when the Company has a
present obligation as a result of past events and it is
probable that an outflow of resources will be required to
settle the obligation in respect of which a reliable estimate
can be made.
The amount recognised as a provision is the best estimate
of the consideration required to settle the present
obligation
at the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. When a
provision is measured using the cash flows estimated to
settle the present obligation, its carrying amount is the
present value of those cash flows (when the effect of the
time value of money is material).
Contingent liability
A possible obligation that arises from past events and
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
enterprise are disclosed as contingent liability and not
provided for. Such liability is not disclosed if the possibility
of outflow of resources is remote.
Contingent assets
A contingent asset is a possible asset that arises from past
events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the entity.
Contingent assets are not recognised but disclosed only
O. 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, which are
subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash and short-term deposits,
as defined above, net of outstanding bank overdrafts as
they are considered an integral part of the Company's
cash management.
P. Investments in subsidiaries and joint ventures
Investments in subsidiaries and joint ventures ore carried
at cost / deemed cost applied on transition to Ind AS, less
accumulated impairment losses, if any. Investment in
subsidiaries and joint ventures ore carried at cost and
are tested for Impairment in accordance with Ind AS 36,
'Impairment of assets'.
Q. Earnings per share
Basic Earnings per share is calculated by dividing the
net profit for the period attributable to the equity
shareholders by the weighted average number of equity
shares outstanding during the period. For the purpose of
calculating diluted earnings per share, the net profit for
the period attributable to the equity shareholders and the
weighted average number of equity shares outstanding
during the period is adjusted for the effects of all dilutive
potential equity shares.
R. Cash flows
Cash flows are reported using the indirect method,
whereby profit / (loss) before extraordinary items and tax is
adjusted for the effects of transactions of non-cash nature
and any deferrals or accruals of past or future cash receipts
or payments and item of income or expenses associated
with investing or financing cash flow. The cash flows
from operating, investing and financing activities of the
Company are segregated based on available information.
S. Current / non-current classification
An asset is classified as current if:
a) It is expected to be realized or sold or consumed in
the Company's normal operating cycle;
b) It is held primarily for the purpose of trading;
c) It is expected to be realized within twelve months
after the reporting period; or
d) It is cash or cash equivalents unless it is restricted
from being exchanged or used to settle a liability for
at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability assets is classified as current if;
a) It is expected to be settled in normal operating cycle;
b) It is held primarily for the purpose of trading;
c) It is expected to be settled with in the twelve months
after the reporting period;
d) It has no unconditional right to defer the settlement
of the liability for at least twelve months after the
reporting period.
All other assets are classified as non-current.
Deferred tax assets and liabilities are classified as
non-current assets and liabilities.
The operating cycle is the period between acquisition
of assets for processing/trading/assembling and their
realisation in cash and cash equivalents. The Company
has identified twelve months as its operating cycle.
T. Dividends
Final dividend on shares is recorded as a liability on the
date of approval by the shareholders and Interim dividend
is recorded as a liability on the date of declaration by the
Company's Board of Directors.
Under the EPCG Scheme, the Company has availed benefits in the nature of exemption from payment of customs duty on the
import of eligible capital goods, subject to fulfilment of the prescribed export obligations and other applicable conditions
within the stipulated period.
Since the plant and machinery were procured by availing exemption from payment of customs duty, the amount initially
capitalised under Property, Plant and Equipment (“PPE") was recorded net of the customs duty benefit availed.
In accordance with Ind AS 20 - “Accounting for Government Grants and Disclosure of Government Assistance", the customs
duty benefit availed under the EPCG Scheme has been considered a government grant related to assets. Accordingly, the value
of the eligie plant and machinery has been grossed up by the amount of customs duty benefit availed, with a corresponding
credit recognised as deferred government grant.
1) Investment in TG Advait India Private Limited comprises 1,08,13,450 equity shares of face value C10 each and is
carried at cost.
2) Investment in Advait Greenergy Private Limited comprises 28,856 equity shares of face value C10 each and is carried at
cost. This includes 4,000 partly paid-up equity shares of face value C10 each, against which C2.50 per share has been paid.
3) Investment in Yes Bank Limited comprises 13,125 equity shares of face value C10 each and is measured at fair value
through profit or loss at the reporting date, in accordance with Ind AS 109, Financial Instruments
4) Investments in mutual funds comprise units held in SBI Magnum Gilt Fund - Regular Growth, Franklin India Opportunities
Fund and Axis Liquid Fund. These investments are measured at fair value through profit or loss at the reporting date in
accordance with Ind AS 109
5) During the year, the Company incorporated Advait Energy Holding AS in Norway as a wholly owned subsidiary, with
an initial capital contribution of NOK 50,000, comprising 5,000 equity shares of NOK 10 each. The investment, being a
non-monetary item measured at historical cost, was translated using the exchange rate prevailing on the transaction
date in accordance with Ind AS 21, The Effects of Changes in Foreign Exchange Rates. The subsidiary was wound up on
27 March 2026, and the Company received NOK 7,305 towards the settlement of its equity investment. The resulting
gain or loss on liquidation has been recognised in statement of profit and loss account.
6) The investments in A&G Hydrogen Technologies Private Limited and Advait Transmission Tools Private Limited,
comprising 10,000 equity shares of C10 each in each company and representing 100% of their respective equity share
capital, were transferred during the year at their carrying amount (cost) to the Company's subsidiary.
Notes :
1 During the year ended March 31,2026, 1,16,700 convertible warrants were converted into an equal number of equity
shares of C10 each at a premium of C1,766 per share, upon receipt of the balance 75% consideration of C 15.54 crore.
of the 1,41,591 warrants originally allotted on September 5, 2024, 19,261 warrants were converted in the previous year
and the remaining 5,630 warrants were forfeited due to non-payment of the balance consideration within the stipulated
period. The upfront amount of C0.25 crore received against the forfeited warrants was transferred to Capital Reserve.
Accordingly, no warrants were outstanding as at March 31,2026.
2 During the year ended March 31,2026, employees exercised 6,457 stock options at an exercise price of C10 per option.
Consequently, the Company allotted 6,457 equity shares of C10 each under the Advait Infratech Limited ESOP Scheme
2022. The allotment was made in accordance with the terms of the Scheme and the applicable provisions of the SEBI
(Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
13.3 Terms & Rights attached to equity shares:
i) The company has only one class of equity shares having a par value of C10 each. Each holder of equity shares is entitled
to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board
of Directors is subject to approval of the shareholders in the ensuring Annual General Meeting.
13.4 Dividend Proposed:
i) The Board of Directors, in the meeting on 27th May, 2026, have proposed a final dividend of C2.00 per equity share
for the year ended 31st March, 2026. The proposed is subject to the approval of shareholders at the ensuing Annual
General Meeting.
# Refere to Note no. 21
# Terms loan of C638.38 lakh consists of C207.61 lakh as current maturities which are hypothecated and have an ROI as stated below; Term
loans from banks include vehicle loans aggregating to C301.05 lakh ( Previous year C 106.48 Lakh) as at March 31,2026. These loans are
secured by way of hypothecation of the respective vehicles financed and are repayable in equated monthly instalments over the tenure
specified in the respective loan agreements.
The current maturities of term loans from banks, aggregating to C 1,146.18 lakh as at March 31,2026, have been disclosed under current
borrowings (refer Note 22).
## The Company has availed a Working Capital Term Loan of C 1500.00 lakh from Tata Capital Limited at a floating interest rate of 11.50%,
sanctioned for a tenure of 36 months. loan is intended for utilization and strengthening of working capital and for general corporate
purposes, including the repayment of existing term loans. The facility is secured by hypothecation of plant and machinery, as per the
terms of the sanction letter.
## The Company has availed a working capital term loan of C700.00 lakh from Tata Capital Limited to meet temporary working capital
requirements and for general corporate purposes, including repayment of existing term loans. The loan carries interest at a floating rate
of 11.40% p.a. and is repayable over a tenure of 36 months. The facility is secured by liquid security in the form of fixed deposits, security
deposits and/or debt mutual funds, with the stipulated security cover, in accordance with the terms of the sanction letter.
Note:
1 Other Short term borrowings
Working facility from Banks amounting to C6,135.84 lakh (previous year C 1,308.59 lakh) are secured in favour of banks by
hypothecation and paripassu of current assets including stocks of raw materials, stock in process, semi-finished goods,
stores and spares, bill receivable, book debts and other current assets including fixed deposite. Secondarysecurities
consists Collateral comprise residential flats - 202, 203 and La Habitat thaltej & 403 Royal Homes Gota with industrial
properties - industrial area moraiya and Equitable mortgage with exclusive charges over commerical plot Survey add
547,548,549 and 550 in Borisana, Kadi and A-801/802/803, Sankalp iconic tower Ahmedabad including existing and
future constructions. Working capital Facilities interest in range 8% to 10% ( previous year 8% to 12% ). Working Capital
Facilities are payable.
2. During the year, the Company's sanctioned working-capital facility from State Bank of India was enhanced from
C10 crore to C25 crore. Additionally, the Company obtained a new working-capital facility of C10 crore from RBL
Bank Limited. These facilities are secured by the assets and collateral securities specified above and are repayable
on demand.
3 The Company has taken fresh loans during the year and have used the borrowings taken from banks and financial
institutions for the specific purpose for which they were taken.
4 During the year the Company has paid all the interest and instalments on time.
5 During the year, CRISIL Ratings Limited upgraded the Company's long-term credit rating from “CRISIL BBB /Stable" to
“CRISIL A-/Stable" and its short-term credit rating from “CRISIL A2" to “CRISIL A2 " in respect of the Company's bank
loan facilities. The upgrade reflects CRISIL's assessment of the Company's improved credit profile. The ratings were
outstanding as at 31 March 2026.
3 The ratio decreased due to an increase in finance costs and debt-servicing obligations during the year.
4 The ratio decreased because the increase in average shareholders' equity was proportionately higher than the increase
in profit after tax.
5 The ratio improved due to higher sales and material consumption during the year, reflecting faster movement and
utilisation of inventory in line with the increased scale of operations.
6 The ratio decreased because average trade receivables increased faster than revenue.
7 The ratio decreased because average trade payables increased substantially during the year.
8 The return on investment is droping because of ROI is decreased.
39 DISCLOSURES PURSUANT TO IND AS 19 EMPLOYEE BENEFITS(a) Define contribution plans:
The Company has certain defined contribution plans in which both employee and employer contribute monthly, at the rate
of 12% of basic salary, as per regulations to provident fund set up as trust and to the respective regional provident fund
commissioner.
The Company's contributions to provident fund, pension scheme and employee state insurance scheme are made to the
relevant government authorities as per the prescribed rules and regulations. The Company's contributions to the above
defined contribution plans are recognised as employee benefit expenses in the statement of profit and loss for the year in
which they are due
The Company's contribution to provident, pension, superannuation funds and to employees state insurance scheme
aggregating to C30.50 Lakhs (Previous year - C3.54 lakhs) has been recognised in the statement of profit and loss under the
head employee benefits expense [Refer note 30]
(b) Defined benefits plans:
(i) Gratuity
The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity
shall be payable to an employee on the termination of his employment after he has rendered continuous service for not
less than five years, or on their superannuation or resignation. However, in case of death of an employee, the minimum
period of five years shall not be required. The amount of gratuity payable on retirement is the employees last drawn basic
salary per month computed proportionately for 15 days salary multiplied by the number of years' service completed.
(ii) Risk exposure to defined benefit plans
The plans typically expose the Company to actuarial risks such as: Investment risk, Liquidity risk, Market risk and
Legislative risk.
Actuarial risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an
increase in Obligation at a rate that is higher than expected.
Variability in mortality rates: if actual mortality rates are higher than assumed mortality rate assumption than the Gratuity
Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration
of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and
discount rate.
Variability in withdrawal rates: if actual withdrawal rates are higher than assumed withdrawal rate assumption than the
Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested
as at the resignation date.
Investment risk:
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the
fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future
discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes
in the discount rate during the inter-valuation period.
Liquidity risk:
Employees with high salaries and long duration or those higher in hierarchy, accumulate significant level of benefits.
If some of such employees resign/retire from the company there can be strain on the cash flows.
Market risk:
Market risk Is a collective term for risks that are related to the changes and fluctuations of the financial markets One
actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time
The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried
out at 31st March, 2026 by M/s Trueval Consulting. 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.
(iii) Sensitivity analysis
Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary
increase. The sensitivity analysis given below have been determined based on reasonably possible changes of the
respective assumptions occurring at the end reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation
as it is unlikely that the changes in assumptions would occur in isolation of one another as some of the assumptions
may be correlated.
Furthermore, 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 the same as that applied
in calculating the defined benefit obligation liability recognized in the balance sheet.
(c) Employee Share based Payment Plan
The Company has the share option plan schemes for permanent employees of the Company in the identified grades of
employees for respective plans / schemes including any director except promoter or independent directors, nominee directors
and non-executive directors or a director who either himself or through relatives or through anybody directly or indirectly
holds more than 10% of the outstanding equity shares of the parent company.
[A] ADVAIT EMPLOYEE STOCK OPTION PLAN 2022 (ESOP 2022)
The award value shall be determined as percentage of Total Fixed Pay. The grant shall be at such price as may be
determined by the Committee and shall be specified in the Grant letter. The option shall not be transferable and can be
exercised only by the employees of the Company.
Note
1 Pricing Formula : Excerise Price is fixed by the committee at the time of granting option
2 Fair Value : The Fair value is calculated by using Black Scholes method ( Weighted Average Option Value)
3 Expected Volatility : Volatility was calculated using standard deviation of daily change in stock price.
4 Vesting Period: The vesting period for the granted options is determined by the Company and specified in the ESOP
grant letter. For certain grants, options vest in full after 1 year. For other grants, options vest annually over a period of 3
years, subjec
40 BUSINESS COMBINATION:
Changes In Group Structure And Ownership Interests
During the financial year 2025-26, the Company undertook the following changes in its group structure pursuant to strategic
business decisions:
A. Transfer of A&G Hydrogen Technologies Private Limited
On September 11,2025, the Company transferred its entire equity investment in A&G Hydrogen Technologies Private
Limited to its subsidiary, Advait Greenergy Private Limited (“AGPL"), for a total consideration of C 10. The transfer
was undertaken to consolidate the Group's green hydrogen and electrolyser manufacturing businesses under AGPL,
considering that AGPL had received an allocation under the Production Linked Incentive (“PLI") Scheme for the
manufacture of electrolysers. Following the transfer, A&G Hydrogen Technologies Private Limited became a wholly
owned subsidiary of AGPL and a step-down subsidiary of the Company. Since the transaction was undertaken between
entities under common control, there was no change in the ultimate control of the entity.
B. Increase in Equity Interest in Advait Greenergy Private Limited
During the year, AGPL made a fresh allotment of equity shares to the Company. Consequently, the Company's equity
interest in AGPL increased from 66.91% to approximately 69.00%. The Company continues to retain control over AGPL,
and accordingly, AGPL remains a subsidiary and continues to be consolidated in the financial statements of the Company.
In accordance with Ind AS 110, Consolidated Financial Statements, the change in ownership interest without any loss of
control has been accounted for as an equity transaction.
C. Voluntary Winding-up of Advait Energy Holding AS, Norway
Advait Energy Holding AS, Norway, a wholly owned foreign subsidiary of the Company, was voluntarily wound up and
completely dissolved on March 31,2026, as the entity was no longer required for the Group's business operations.
Against the Company's original equity investment of NOK 50,000, an amount of NOK 7,305 was received during the year
upon completion of the winding-up process. The resulting loss, including the impact of foreign-exchange translation
and other related adjustments, has been recognised in the financial statements in accordance with the applicable Ind
AS requirements. Consequently, Advait Energy Holding AS ceased to be a subsidiary of the Company with effect from
March 31, 2026.
D. Incorporation and Subsequent Transfer of Advaiteco Technologies Private Limited
On June 12, 2025, the Company incorporated Advaiteco Technologies Private Limited as its wholly owned subsidiary
to undertake and expand the Group's fuel-cell business within the green-energy sector. Subsequently, pursuant to a
strategic decision to consolidate the Group's green-energy businesses under AGPL, the Company transferred its entire
equity investment in Advaiteco Technologies Private Limited to AGPL on September 11,2025, for a total consideration
of C10. Following the transfer, Advaiteco Technologies Private Limited became a wholly owned subsidiary of AGPL and
a step-down subsidiary of the Company. Since the transaction was undertaken between entities under common control,
there was no change in the ultimate control of the entity.
41 CONTINGENT LIABILITIES AND COMMITMENTS
The Company's pending litigations comprise mainly claims against the Company, property disputes, proceedings pending
with Tax and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate
provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements.
2 Bank guarantees, letters of credit, bills and corporate guarantees amounting to C30,042 lakh comprise C 10,391 lakh
towards letters of credit and bills, C19,651 lakh towards bank guarantees and C2,000 lakh towards a corporate guarantee
issued in favour of ICICI Bank on behalf of a subsidiary company.
3 Surety bonds issued by insurance companies on behalf of the Company and outstanding as at 31 March 2026 amount
to C2,253.11 lakh (31 March 2025: Nil). These bonds have been issued in favour of customers/contracting authorities
in connection with contractual obligations of the Company. Based on the present status of the underlying contracts,
management does not expect any material cash outflow.
Note:
1 No amount in respect of related parties have been written off/ written back during the year, nor has any provision been
made for doubtful debts/ receivables during the year.
2 Related party relationships have been identified by the management and relied upon by the Auditors.
3 Terms and conditions of sales and purchase: the sales and purchase transactions among the related parties are in
the ordinary course of business based on normal commercial terms, conditions, market rates, and a memorandum of
understanding signed with the related parties.
4 Refer the notes no. 4 & note no. 40
44 SEGMENT REPORTING
The chief operating decision maker (CODM) has identified Power Transmissions Service and New and Renewable Energy
business as the reportable segments as per IND AS 108 “Operating segments". These have been disclosed as
(a) Power Transmission Service - It comprises of supply, Installation & Commissioning service related to the power
transmission sector.
(b) New and Renewable Energy - It Compreises of Supply and EPC of Solar, Green Hydrogne(GH2) and Carbon etc.
45 FINANCIAL INSTRUMENT AND RISK MANAGEMENT
(a) Capital management
The Company manages its capital structure in manner to ensure that it will be able to continue as going concerns while
maximizing the return to stakeholders through the optimization of the debt and equity balance.
The Company's capital structure is represented by equity (comprising issued capital, retained earnings and other reserves as
detailed in notes 14 and debt (borrowings as detailed in note 15, 21 & 23).
The Company's management reviews the capital structure of the Company on an annual basis. As part of this review, the
management considers the cost of capital and the risks associated with each class of capital. The Company's plan is to ensure
that the gearing ratio (debt equity ratio) is well within the limit of 2:1. The Company review dividend policy from time to time.
Notes
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable
or unobservable and consists of the following three levels:
Level 1: Inputs are Quoted (unadjusted) market prices in active markets for identical assets or liabilities. This includes quoted
equity instruments, investments in mutual funds that have quoted price.
Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable. This includes unquoted floating and fixed rate borrowing.
Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
This includes unquoted equity shares, loans, security deposits, investments in Debentures, floating rate borrowings.
(d) Fair value of financial assets and liabilities measured at amortized cost
The Management has assessed that fair value of loans, trade receivables. cash and cash equivalents, other bank balances, other
financial assets, trade payables and other financial liabilities approximate their carrying amounts largely due to their short-term
nature. Difference between carrying amount of Bank deposits, other financial assets, borrowings and other financial liabilities
subsequently measure significant in each of the years presented.
For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair.
(e) Financial risk management
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. The board has established the key management personnel, which is responsible for developing
and monitoring the Company's risk management policies. The key management personnel holds regular meetings and report
to board on its activities.
The Company's risk management policies are established to identify and analysis the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training
and management standards and procedures, aims to maintain a disciplined and constructive control environment in which
all employees understand their roles and obligations.
The board of directors oversees the following risk how key management personnel monitor compliance with the Company's
risk management polices and procedures;
(A) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected
by market risk include loans and borrowings, trade receivables and trade payables involving instruments affected by
market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure.
The sensitivity analyses in the following sections relate to the position as at March 31,2026 and March 31,2025.
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) Foreign currency exchange rate risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily
to the Company's operating activities (when revenue or expense and monetary assets & liabilities is denominated in a
foreign currency) .
Foreign currency exposure unhedged as at March 31, 2026 is C316.49 lakhs (PY C 133.79 lakhs) for trade and Other
receivables and C938.14 lakhs (PY C358.96 lakhs) for trade and other payables
(ii) Foreign Currency Sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in USD exchange rates, with all other
variables held constant. The impact on the Company's profit before tax is due to changes in the fair value of revenue or
expense and monetary assets & liabilities. The Company's exposure to foreign currency changes for all other currencies
is not material.
(iii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change
in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the
Company's debt obligations with floating interest rates. As the Company has certain debt obligations with floating
interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates.
Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such
rates by restructuring its financing arrangement.
Interest Rate Sensitivity
Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates.
The following table demonstrates the sensitivity of floating rate financial instruments to a reasonably possible change
in interest rates. The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves.
This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk
exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt
outstanding during the period.
(iv) Other Price Risk
The Company is exposed to price risks arising from its investments which are classified as fair value through P&L.
The exposure to price risks mainly includes Investments in mutual funds at the end of the reporting period.
(B) Credit Risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge
an obligation. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness.
Credit risk arises primarily from financial assets such as trade receivables, investments in mutual funds, cash and cash equivalent
and other balances with banks.
In respect of trade receivables, credit risk is being managed by the company through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal
course of business. All trade receivables are also reviewed and assessed for default on a regular basis. The concentration of
credit risk is limited due to the fact that the customer base is large.
(C) Liquidity risk
(i) Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of
the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.
(ii) Management monitors rolling forecasts of the Company liquidity position and cash and cash equivalents on the basis
of expected cash flows. The Company takes into account the liquidity of the market in which it operates. In addition, the
Company's liquidity management policy involves projecting cash flows in major currencies and considering the level of
liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory
requirements and maintaining debt financing plans
Maturities of financial liabilities:
The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their contractual
maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash
flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant
48 The estimated amount of capital contracts remaining to be executed and not provided for, net of capital advances, as at 31st
March, 2026 is Nil (31st March, 2025: Nil). Intangible Assets Under Development as at 31st March, 2026 amount to C236.64 lakhs,
representing USD 2,50,000 translated at C94.6543 per USD, being the RBI reference rate as at 31st March, 2026. There were no
such balances as at 31st March, 2025.
49 CODE ON SOCIAL SECURITY, 2020
The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post- employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on
which the Code will come into effect has not been notified. The company will assess the impact of the Code when it comes
into effect and will record any related impact after the code become effective.
50 The Ministry of Corporate Affairs (“MCA"), vide the Companies (Accounts) Amendment Rules, 2021, inserted a proviso to Rule
3(1) of the Companies (Accounts) Rules, 2014, requiring every company that uses accounting software for maintaining its
books of account to use software having a feature for recording an audit trail of each and every transaction, creating an edit
log of every change made in the books of account along with the date of such change, and ensuring that the audit trail facility
cannot be disabled.
Pursuant to the above requirement, the Company uses SAP Business One (“SAP B1") for maintaining its books of account.
SAP B1 has an audit trail/edit log facility for recording changes made to relevant transactions. During the year, the audit trail
facility operated throughout the year for all relevant transactions recorded in the application and was not disabled or tampered
with. The audit trail facility at the database level was enabled and operational with effect from [actual date]. Access to the
underlying database is restricted to authorised personnel through appropriate access controls, and no instance of tampering
with the audit trail was observed during the year.
51 OTHER DISCLOSURES
a) No proceedings have been initiated on or are pending against any of the entities in the Company for holding benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
b) None of the entities in the Company have been declared wilful defaulter by any bank or financial institution or government
or any government authority.
c) The Company has not traded or invested in cryptocurrency or virtual currency during the current or previous year.
d) The Company has complied with the number of layers prescribed under the Companies Act, 2013.
e) There is no income surrendered or disclosed as income during the current or pervious year in the tax assessments under
the Income Tax Act, 1961 that has not been recorded in the books of account.
f) The Company has not revalued its property, plant and equipment (including right-to-use assets) or intangible assets or
both during the current or pervious year.
g) The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for
which such loans were taken.
h) There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.
i) As a socially and environmentally responsible business, committed to the highest standards of corporate governance, the
Company is focused on growing sustainably to build long-term stakeholder value by embracing sustainable development.
The Company aims to deliver value to its employees, customers and stake holders.
52 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES:
There are certain charges which are historical in nature, and it involves practical challenges in obtaining no-objection certicates
(NOCs) and/or getting requisite formalities completed towards charge satisfaction from the charge holders of such charges,
despite repayment of the underlying loans. The Company is in the continuous process of getting the charge satisfaction e-form
filed and processed with MCA, within the timelines.
53 UTILISATION OF BORROWINGS AVAILED FROM BANKS AND FINANCIAL INSTITUTIONS
The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such
loans were taken.
54 The Company does not have any investments through more than two layer of investment companies as per section 2(87)
(d) and section 186 of Companies Act, 2013
55 The Board of Directors have recommended a dividend of C2.00 per equity share for the financial year 2025-26, subject to approval by
shareholders at the Annual General Meeting and if approved, would result in cash outflow of C219.01 Lakh, which has not
been included as liability in these standalone financial statements.
56 The financial statement were approved for issue by the Board of Directors on 27th May, 2026
57 The figures for the previous year have been regrouped and restated to make them comparable with the figures of the
current period.
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