xi) Provisions and Contingent Liabilities
Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event,
it is probable that the Company will be required to settle the
obligation, and a reliable estimate can be made of the amount of
the obligation.
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).
When some or all of the economic benefits required to settle
a provision are expected to be recovered from a third party,
a receivable is recognised as an asset if it is virtually certain
that reimbursement will be received and the amount of the
receivable can be measured reliably.
Onerous Contracts
Present obligations arising under onerous contracts are
recognised and measured as provisions. An onerous contract is
considered to exist where the Company has a contract under
which the unavoidable costs of meeting the obligations under
the contract exceed the economic benefits expected to be
received from the contract.
Contingent liability is disclosed for (i) Possible obligations 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
Company or (ii) Present obligations arising from past events
where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the
amount of the obligation cannot be made, unless the possibility
of outflows of resources embodying economic benefits are
remote.
xii) Revenue recognition
Revenue towards satisfaction of a performance obligation is
measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation.
The Company applies the five-step approach for recognition of
revenue:-
• Identification of contract(s) with customers;
• Identification of the separate performance obligations in
the contract;
• Determination of transaction price;
• Allocation of transaction price to the separate performance
obligations; and
• Recognition of revenue when (or as) each performance
obligation is satisfied.
1 Sale of goods:
Further the amount of revenue can be measured reliably
and it is probable that the economic benefits associated
with the transaction will flow to the entity.
The transaction price of goods sold and services rendered
is net of variable consideration on account of various
discounts and schemes offered by the Company as part of
the contract.
A receivable is recognised when the goods are delivered
as this is the point in time that the consideration is
unconditional because only the passage of time is required
before the payment is due.
At contract inception, since for most of the contracts it
is expected that the period between the transfer of the
promised goods or services to a customer and payment
for these goods or services by the customer will be one
year or less, practical expedient in IND AS 115 have been
applied and accordingly:
a) The Company does not adjust the promised amount
of consideration for the effects of a significant
financing component
b) The Company recognises the incremental costs of
obtaining a contract as an expense when incurred
c) No information on remaining performance
obligations as of the year end that have an expected
original term of one year or less was reported.
A contract liability is the Company’s obligation to transfer
goods or services to a customer, for which the Company
has already received consideration from customers.
2 Interest and Dividend Income:
Interest income from a financial asset is recognised when
it is probable that the economic benefits will flow to the
Company and the amount of income can be measured
reliably. Interest income is accrued on a time basis, by
reference to the amortised cost and at the effective interest
rate applicable.
Dividend income from investments is recognised when
the shareholder’s right to receive payment has been
established (provided that it is probable that the economic
benefits will flow to the Company and the amount of
income can be measured reliably).
3 Export Incentives:
Income from export incentives is recognised on accrual
basis to the extent the ultimate realisation is reasonably
certain.
4 Revenue from real estate contracts:
In respect of real estate development projects undertaken
by the Company, the control of real estate units is said to
be satisfied over time, if any one of the following criteria
is met:
a) the customer simultaneously receives and consumes
the benefits provided by the entity’s performance as
the entity performs
b) the entity’s performance creates or enhances an asset
that the customer controls as the asset is created or
enhanced
c) the entity’s performance does not create an asset
with an alternative use to the entity and the entity
has an enforceable right to payment for performance
completed to date.
In all other cases, where the above criterias for satisfaction
of performance obligation and recognising revene over
time are not met, revenue would be recognised when
control of the real estate units has been transferred and
there is no unfulfilled obligation which could affect the
customer’s acceptance of the real estate units. Considering
the terms of the contract, revenue is recognised at a point
in time when:
• The Company has transferred to the customer all
significant risk and rewards of ownership and the
Company retains no effective control of the real
estate unit to a degree usually associated with
ownership;
• The Company has handed over possession of the
real estate unit to the customer or deemed possession
based on the contract with the customer;
• No significant uncertainty exists regarding the
amount of consideration that will be derived from
the sale of the real estate unit;
• It is not unreasonable to expect ultimate collection of
revenue from customer.
Revenue is measured as the fair value of consideration
which the Company expects to be entitled to in exchange
of transferring the property to the customer (excluding
amounts collected on behalf of third parties e.g. taxes).
Revenue is recognized with respect to executed sales
contracts on transfer of control of the real estate units to
the customers.
5 Revenue from Project Automation Contracts:
- Revenue from project automation contracts,
comprising design, engineering, supply, installation
and commissioning of automation systems, is
recognised as and when control of the goods or
services is transferred to the customer as per criteria
specified in Ind AS 115.
xiii) Foreign currency transactions and balances
In preparing the financial statements of the Company,
transactions in currencies other than the Company’s functional
currency viz. Indian Rupee are recognised at the rates of
exchange prevailing at the dates of the transactions. At the
end of each reporting period, monetary items denominated in
foreign currencies are retranslated at the rates prevailing at that
date.
Exchange differences on monetary items are recognised in the
Statement of Profit and Loss in the period in which they arise.
Non-monetary items that are measured in terms of historical
costs in a foreign currency are not retranslated.
xiv) Lease accounting
As a lessee:
From 1 April 2019, leases are recognized as a right-of-use asset
and a corresponding liability at the date at which the leased
asset is available for use by the Company. Contracts may
contain both lease and non lease components. The Company
allocates the consideration in the contracts to the lease and non¬
lease components based on their relative standalone prices.
However, the Company has elected not to separate lease and
non-lease components and instead account for these as a single
lease components.
Assets and liabilities arising from a lease are initially measured
on present value basis. Lease liabilities include the net present
value of the following lease payments:
- fixed payments (including in substances fixed payments),
less any lease incentive receivable
- variable lease payments that depend on an index or a
rate,initially measured using the index or rate as at the
commencement date;
- any residual value guarantees provided to the lessor by
the lessee, a party related to the lessee or a third party
unrelated to the lessor that is financially capable of
discharging the obligations under the guarantee;
- the exercise price of the purchase option if the Company
is reasonably certain to exercise that option, and
- payments of penalties for terminating the lease, if the
lease term reflects the Company exercising that option.
Lease payments to be made under reasonably certain extension
option are also included in the measurement of the liability. The
lease payments are discounted using the lessee’s incremental
borrowing rate, being the rate that lessee would have to pay to
borrow the fund necessary to obtain an asset of similar value to
the right-of-use asset in a similar economic environment with
similar term, security and conditions.
To determine the incremental borrowing rate, the Company:
- where possible, uses recent third party financing received
by the lessee as a starting point, adjusted to reflects
changes in financing condition since third party financing
received
- use a build-up approach that starts with the risk-free
interest rate adjusted for credit risk for leases, which does
not have recent third party financing, and
- make adjustments specific to the leases, e.g. term, security,
currency etc.
The Company is exposed to potential future increases in
variable lease payments based on index or rate, which are
not included in the lease liability until they take effect. When
adjustment to lease payments based on index or rate take effect,
the lease liability is reassessed and adjusted against the right-of-
use asset.
Lease payments are allocated between principal and finance
cost. Finance cost is charged to Statement of Profit and Loss
over the lease period so as to produce a constant periodical rate
of interest on the remaining balance of the liability for each
period.
Right-of-use assets are measured at cost comprising the
following:
- the amount of initial measurement of lease liability
- any lease payments made at or before the commencement
date less any lease incentives received
- any initial direct costs, and
- restoration costs
Right-of-use assets are generally depreciated over the shorter
of the asset’s useful life and the lease term on a straight line
basis. If the Company is reasonably certain to exercise purchase
option, the right-of-use asset is depreciated over the underlying
asset’s useful life.
Payments associated with short-term leases of equipment and
all leases of low-value assets are recognized on a straight-line
basis in the Statement of Profit and Loss. Short term leases are
leases with a lease term of 12 months or less.
As a lessor:
Lease income from operating leases where the Company is a
lessor is recognized in income on a straight line basis over the
lease term. Initial direct costs incurred in obtaining an operating
leases are added to the carrying amount of the underlying asset
and recognized as expense over the lease term on the same basis
as lease income. The respective leased assets are included in the
balance sheet based on their nature. The Company did not need
to make any adjustments to the accounting for assets held as a
lessor as a result of adopting the new leasing standard.
xv) Taxes on Income
Tax expense for the year, comprising current tax and deferred
tax, are included in the determination of the net profit or loss for
the year. Current tax is measured at the amount expected to be
paid to the tax authorities in accordance with the Income Tax
Act, 1961.
Deferred tax is recognised on temporary differences between
the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are
generally recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible
temporary differences can be utilised. Such deferred tax assets
and liabilities are not recognised if the temporary difference
arises from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit. In addition,
deferred tax liabilities are not recognised if the temporary
difference arises from the initial recognition of goodwill.
The carrying amount of deferred tax assets is reviewed at the
end of each reporting period and reduced to the extent that
it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates
that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws)
that have been enacted or substantively enacted by the end of
the reporting period.
Deferred tax assets and liabilities are offset when there is
a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same
taxation authority. Current tax assets and tax liabilities are offset
where the entity has a legally enforceable right to offset and
intends either to settle on a net basis, or to realise the asset and
settle the liability simultaneously.
Current and deferred tax are recognised in the Statment of Profit
and Loss, except when they relate to items that are recognised
in other comprehensive income or directly in equity, in which
case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively. The
Company recognises Minimum Alternate Tax credit under the
Income Tax Act, 1961 as an asset only when and to the extent
there is convincing evidence that the Company will be liable to
pay normal income tax during the specified period.
xvi) Government grants
Government grants are not recognised until there is reasonable
assurance that the Company will comply with the conditions
attaching to them and that the grants will be received. These are
recognised in the Statement of Profit and Loss on a systematic
basis over the period in line with the related costs.
xvii) Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets, which are assets that necessarily
takes a substantial period of time to get ready for its intended use
or sale, are added to the cost of those assets; until such time as the
assets are substantially ready for their intended use or sale.
Interest income earned on the temporary investment of specific
borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in the Statement of
Profit and Loss in the period in which they are incurred.
xviii) Segment Reporting
An operating segment is a component of the Company that
engages in business activities from which it may earn revenue
and incur expenses, whose operating results are regularly
reviewed by the Company’s chief operating decision maker in
order to effectively allocate the Company’s resources and assess
performance.
xix) Non-current assets held for sale
Non-current assets and disposal groups are classified as held
for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use.
This condition is regarded as met only when the asset (or
disposal group) is available for immediate sale in its present
condition subject only to terms that are usual and customary
for sales of such asset (or disposal group) and its sale is highly
probable. Management must be committed to the sale, which
should be expected to qualify for recognition as a completed
sale within one year from the date of classification.
Non-current assets (and disposal groups) classified as held for
sale are measured at the lower of their carrying amount and fair
value less costs to sell.
Non-current assets are not depreciated or amortised while they
are classified as held for sale.
xx) Cash and cash equivalents
For the purpose of presentation in the Statement of Cash Flows,
cash and cash equivalents includes cash on hand, deposits held
at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that
are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown within borrowings in
current liabilities in the Balance Sheet.
xxi) Exceptional Items
Exceptional items reflect items which individually or, if of a
similar type, in aggregate, are disclosed separately due to
their size or incidence in order to obtain clear and consistent
presentation of the Company’s performance.
3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY
SOURCES OF ESTIMATION UNCERTAINTY
In the application of the accounting policies, which are
described in note 2, the directors of the Company are required to
make judgements, estimates and assumptions about the carrying
amounts of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions
are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the
revision affects only that period, or in the period of the revision
and future periods if the revision affects both current and future
periods.
3.1 Critical judgements in applying accounting policies
The following are the critical judgements, apart from those
involving estimations (see note 3.2 below), that the directors
have made in the process of applying the accounting policies and
that have the most significant effect on the amounts recognised
in the financial statements.
3.1.1.In the matter of Svadeshi Mills Limited (Svadeshi), on 22nd
January 2025, the Division Bench of the Bombay High Court
set aside the earlier order, vacated the stay on winding up, and
directed the Official Liquidator to take control of Svadeshi’s
assets, which occurred on 23rd January 2025. Grand View Estate
Private Limited (GVEPL) and the Company filed a Special
Leave Petition (SLP) before the Hon’ble Supreme Court.
On 31st January 2025, the Supreme Court stated that a fresh
application may be filed before the Company Judge, Bombay
High Court, for a stay on winding up, directing the application
be heard expeditiously. Accordingly, the Company and GVEPL
had filed fresh application before the Hon’ble Bombay High
Court invoking powers u/s 466 of Companies Act, 1956 seeking
permanent stay on the winding up order against Svadeshi.
Arguments were made and Interim Application was heard at
length. Vide Order dt. 23rd February 2026, the Hon’ble High
Court dismissed the Interim Application. The Company and
GVEPL have filed on 24th March 2026, an Appeal challenging
the Order dt. 23rd February 2026. Appeal was argued and
the same is reserved for order. The Company does not have
significant influence over Svadeshi which is presently under the
control of Official Liquidator.
3.1.2.The NCLT, Mumbai Bench, by order dated March 24, 2025,
admitted Forbes Technosys Ltd.’s (FTL) petition under
Section 10 of the Insolvency and Bankruptcy Code, initiating
the Corporate Insolvency Resolution Process (CIRP) and
appointing an Interim Resolution Professional (IRP). The Board
of FTL stands suspended, with management now under the IRP.
IRP constituted the Committee of Creditors (CoC) on 19th
April, 2025, CoC meetings have been convened by IRP. The
resolutions placed before the CoC did not receive the requisite
percentage of voting share, hence the resolutions failed. IRP has
filed Interim Application before the NCLT, Mumbai Bench for
appointment of Liquidator to be heard in due course. As the
Company no longer has significant influence or control over
FTL, it is being reclassified from subsidiary to other entity from
the date of the order. Investments in FTL are fully provided for
in earlier years.
3.2 Key sources of estimation uncertainty3.2.1 Real Estate Development
The determination of the period over which revenue from real
estate development activities should be recognized, the timing
of transfer of control to the customer; and determination of
whether the Company has an enforceable right to payment as
per requirements of Ind AS 115 involves significant judgement.
3.2.2 Contingent Liabilities and Provisions
Contingent Liabilities and Provisions are liabilities of uncertain
timing or amount and therefore in making a reliable estimate of
the quantum and timing of liabilities judgement is applied and
re-evaluated at each reporting date.
3.2.3 Useful life and residual value of Property, Plant and
Equipment (including investment properties)
As described in Note 2(iv) and 2(vi), the Company reviews the
estimated useful life and residual values of property, plant and
equipment at each reporting date.
3.2.4 Fair value measurement and valuation process
Some of the Company’s assets and liabilities are measured at
fair value for financial reporting purposes. The management of
the Company determines the appropriate valuation techniques
and inputs for fair value measurements. In estimating the
fair value of an asset or a liability, the company uses market-
observable data to the extent it is available. Where such inputs
are not available, the Company engages third party qualified
valuers to perform the valuation.
3.2.5 Impairment
Determining whether an asset is impaired requires as estimation
of fair value/value in use. Such valuation requires the Company
to estimate the future cash flows expected to arise from the
cash-generating unit and a suitable discount rate in order to
calculate present value. Where the actual future cash flows are
less than expected, a material impairment loss may arise.
3.2.6 Impairment of Trade Receivables
The impairment provisions for trade receivables are based on
assumptions about risk of default and expected loss rates. The
Company uses judgement in making these assumptions and
selecting the inputs to the impairment calculation, based on the
Company’s past history, existing market conditions as well as
forward looking estimates at the end of each reporting period.
3.2.7 Defined Benefit Obligations
The present value of defined benefit obligations is determined
by discounting the estimated future cash outflows by reference
to market yields at the end of reporting period that have
terms approximating to the terms of the related obligation.
3.2.8 Deferred Tax Asset
Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible
temporary differences can be utilised. The carrying amount
of deferred tax assets is reviewed at the end of each reporting
period and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of
the asset to be recovered. The Company recognises Minimum
Alternate Tax credit under the Income Tax Act, 1961 as an asset
only when and to the extent there is convincing evidence that
the Company will be liable to pay normal income tax during the
specified period.
4. ADOPTION OF NEW AND AMENDED INDIAN
ACCOUNTING STANDARDS(i) New amendments issued but not effective
Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards under
the Companies (Indian Accounting Standards) Rules from
time to time. For the year commencing April 1,2025, MCA
has notified amendments to Ind AS 1 - Presentation of
Financial Statements (relating to classification of liabilities
and covenant conditions), Ind AS 7 - Statement of Cash
Flows, Ind AS 107 - Financial Instruments: Disclosures
(relating to supplier finance arrangements), Ind AS 12
- Income Taxes (relating to introduction of temporary
exception for recognition of deferred tax on top-up tax
under global minimum tax rules) and Ind AS 21 - The
Effects of Changes in Foreign Exchange Rates (relating
to situations where a currency cannot be exchanged into
another currency because of legal restrictions, government
controls, sanctions, or an inactive foreign exchange
market). The Company has reviewed these amendments
and based on its evaluation has determined that they do
not have any significant impact on its financial statements.
(i) Investment properties (Cost) include jointly owned Residential Premises including land with carrying amount ? 1,551.52 Lakhs
(Previousyear ? 1,551.52 Lakhs) and Shares in Co-operative Housing Societies, Association of apartment owners and in a Company
aggregating ? 0.17 Lakh (Previousyear ?0.17Lakh).
(ii) Investment properties includes the rights in respect of the land and building at Fort, Mumbai with net carrying value of ' 115.74
Lakhs (Previousyear ? 154.33 Lakhs) of which ? 18.06 Lakhs (Previousyear ? 24.09 Lakhs) has been disclosed under property,
plant and equipment (Refer Note 5A). The Company has received approval for lease for the period 25th September, 2006 to 24th
September, 2036 for 30 years U/s. 92(K) of BMC Act 1888.
6.1 Fair value measurement of the Company’s investment properties
The fair value of the Company’s investment properties as at 31st March, 2026 and 31st March, 2025 have been arrived at on the basis of a
valuation carried out as on the respective dates by V.S.Modi, independent valuer not related to the Company. V.S. Modi is registered with
the authority which governs the valuers in India, and has appropriate qualifications and recent experience in the valuation of properties
in the relevant locations. The fair value was determined based on the market comparable approach that reflects recent transaction prices
for similar properties as well as other lettings of similar properties in the neighbourhood. In estimating the fair value of the properties,
the highest and best use of the properties is their current use. Thus, the significant unobservable inputs are recent transaction price, taking
into account the differences in location, and individual factors, such as frontage and size, between the comparables and the properties.
Details of the Company’s investment properties and information about the fair value hierarchy as at 31st March, 2026 and 31st March,
2025 are as follows:
1. Forbes Container Line Pte, Ltd,, Singapore (“FCLPL”), a foreign subsidiary of the Company has been ordered to be wound by the
High Court of Republic of Singapore on 19th August, 2016. An official liquidator has been appointed by the court. The Company
has made full provision for investments made and loans given to FCLPL. Accordingly, this entity is no longer a related party for the
Company from the above date and not consolidated in the consolidated financial statements of the company.
2. Edumetry Inc., USA, a foreign joint venture of the Company has been dissolved vide Certificate of Dissolution dated 28th October,
2015 issued by the State of Delaware. Consequently, the Company does not have any significant influence or control over Edumetry
Inc. as on date. Accordingly, this entity is no longer a related party for the Company from the above date and not consolidated in the
consolidated financial statements of the company. The Company has made full provision for these investments in earlier years.
3. In respect of Forbes Technosys Limited (FTL), the National Company Law Tribunal, Mumbai Bench (NCLT), vide its order dated
24th March, 2025, has admitted the petition filed by FTL, under Section 10 of the Insolvency and Bankruptcy Code, 2016 (“IB
Code”), read with the Insolvency and Bankruptcy (Application to Adjudication Authority) Rules, 2016. As a result, the Corporate
Insolvency Resolution Process (CIRP) has been initiated, the Interim Resolution Professional (IRP) has been appointed with effect
from the date of the Order. Consequently, the management and powers of the Board of Directors of FTL are suspended and
exercised by the IRP for the duration of the CIRP.
IRP constituted the Committee of Creditors (CoC) on 19th April, 2025, CoC meetings have been convened by IRP. The resolutions
placed before the CoC did not receive the requisite percentage of voting share, hence the resolutions failed. IRP has filed Interim
Application before the NCLT, Mumbai Bench for appointment of Liquidator to be heard in due course.
The Company does not have any significant influence or control over FTL and therefore it is being reclassified from subsidiary to
other investment from order dated 24th March, 2025. Further, the Investments made in FTL are fully provided in the books of the
Company in earlier years.
Rights, preferences and restrictions attached to equity shares
The Company has only one class of shares referred to as equity shares having a par value of ' 10 per share. Each holder of equity shares
is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend, if any, 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.
6 Details of unclaimed/unpaid dividend amounts and shares transferred to the Investor Education and Protection Fund
(IEPF)
Pursuant to Sections 124 and 125 of the Act read with the Investor Education and Protection Fund Authority (Accounting, Audit,
Transfer and Refund) Rules, 2016 (“IEPF Rules”), dividends, if not claimed for a period of seven years from the date of transfer to
Unpaid Dividend Account of the Company, are liable to be transferred to IEPF. Further, all the shares in respect of which dividend
has remained unclaimed for seven consecutive years or more from the date of transfer to unpaid dividend account shall also be
transferred to IEPF Authority. The said requirement does not apply to shares in respect of which there is a specific order of Court,
Tribunal or Statutory Authority, restraining any transfer of the shares.
Description of Reserves :
Retained Earnings: Retained earnings represent the amount of accumulated earnings of the Company,
Securities premium reserve: The amount received in excess of the par value of equity shares has been classified as securities
premium,
General reserve: The Company created a General Reserve in earlier years pursuant to the provisions of the Companies Act,1956
where in certain percentage of profits was required to be transferred to General Reserve before declaring dividends. As per
Companies Act 2013, the requirements to transfer profits to General Reserve is not mandatory. General Reserve is a free reserve
available to the Company,
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,
Other Comprehensive income: This reserve represents the cumulative gains (net of losses) arising on the revaluation of Equity
Instruments measured at fair value through Other comprehensive Income, net of amounts reclassified, If any , to Retained Earnings
when those instruments are disposed off.
Capital Reserve: During merger, the excess of net assets acquired, over the cost of consideration paid is treated as capital reserve,
34. Employee Benefits :Brief description of the Plans:
The Company has various schemes for long term employees benefits such as Provident Fund, Gratuity, Superannuation, Employees State
Insurance Fund (ESIC) and Employees’ Pension Scheme, Compensated absences and Post Retirement Medical and Non Compete fees.
The Company’s defined contribution plans are Superannuation, Employees State Insurance Fund and Employees’ Pension Scheme (under
the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952). The Company has no further obligation
beyond making the contributions to such plans. The Company’s defined benefit plans include Provident Fund, Gratuity, Post Retirement
Medical and Non Compete fees,
Gratuity
The Company provides for gratuity payable to employees in India as per the Payment of Gratuity Act, 1972, Employees who are in
continuous service for a period of 5 years are eligible for gratuity, The amount of gratuity payable on retirement/termination is the
employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service,
till the Government of India notified four Labour Codes. With effect from 21st November, 2025, the Government of India notified four
Labour Codes, which consolidate multiple existing labour laws into a unified framework governing employment and post-employment
benefits. Based on the best information available, applicable legal interpretations and professional guidance, the Company has provided
the financial impact arising from changes in the definition of wages and employee benefit entitlements.
The gratuity plan is a funded plan and the Company had obtained insurance policies with Life Insurance Corporation of India (LIC) and
makes a contribution to LIC for amounts notified by LIC. The Company accounts for gratuity benefits payable in future based on an
independent external actuarial valuation carried out at the end of the year using the Projected Unit Credit method,
The Company’s Gratuity Plan is administered by an insurer and the Investments are made in various schemes of the trust, The Company
funds the plan on a periodical basis,
The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows
arising from the employee benefit obligations, with the objective that assets of the gratuity / provident fund obligations match the benefit
payments as they fall due,
Provident Fund
The eligible employees of the Company are entitled to receive post-employment benefits in respect of provident fund, in which both the
employees and the Company make monthly contributions at a specified percentage of the employees’ eligible salary. The contributions are
made to the provident fund managed by the trust set up by the Company which are charged to the Statement of Profit and Loss as incurred.
A large portion of provident fund trust assets consists of government and corporate bonds, although the Company also invests in equities,
cash and mutual funds, The plan asset mix is in compliance with the requirements of the regulations in case of Provident fund,
The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows
arising from the employee benefit obligations, with the objective that assets of the provident fund obligations match the benefit payments
as they fall due,
Post retirement medical and non-compete fees
Under the post-retirement medical and non-compete fees, eligible whole-time directors and on their demise, their spouses are entitled
to medical benefits subject to certain limits and fixed monthly payment as non-compete fee. The Company accounts for these benefits
payable in future based on an independent external actuarial valuation carried out at the end of the year using the Projected Unit Credit
method,
These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk,
Investment risk
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields
at the end of the reporting period on government bonds. Plan investment is a mix of investments in government securities, and other debt
instruments,
Interest risk
A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the
plan’s investments,
Longevity risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants
both during and after their employment, An increase in the life expectancy of the plan participants will increase the plan’s liability,
Salary risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an
increase in the salary of the plan participants will increase the plan’s liability,
The above sensitivity analysis are based on change in an assumption while holding all other assumptions constant. In practice, this is
unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit
obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the
projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised
in the balance sheet.
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
L. Provident Fund
The Company has established ‘Forbes & Company Ltd. Employees Provident Fund’ in respect of all the employees to which
both the employee and employer make contribution equal to 12% of the employees’ basic salary respectively. The Company’s
contribution to the provident fund for all employees, are charged to the Statement of Profit and Loss. In case of any liability arising
due to shortfall between the return from its investments and the administered interest rate, the same is required to be provided for
by the Company. In accordance with the recent actuarial valuation, there is no deficiency in the interest cost as the present value
of expected future earnings of the fund is greater than the expected amount to be credited to the individual members based on the
expected guaranteed rate of interest.
M. The liability for Compensated absences (Funded) as at year end is ' Nil (Previous year ZNil) (Refer Note 18B).
The Company provides for encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate
leave subject to certain limits for future encashment / availment. The Company makes provision for compensated absences based
on an actuarial valuation carried out at the end of the year using the Projected Unit Credit method. With effect from 21st November,
2025, the Government of India notified four Labour Codes, which consolidate multiple existing labour laws into a unified framework
governing employment and post-employment benefits. Based on the best information available, applicable legal interpretations and
professional guidance, the Company has provided the financial impact arising from changes in the definition of wages and employee
benefit entitlements. (Refer Note 53)
35. Financial Instruments35.1 Capital Management
The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders
through the optimisation of the debt and equity balance. The capital structure of the Company consists of net debt and total equity of the
Company.
The Company determines the amount of capital required on the basis of annual as well as long term operating plans and other strategic
investment plans. The funding requirements are met through non convertible debt securities or other long-term /short-term borrowings.
The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of
the Company.
35.3 Market Risk
The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates (Refer Note 35.6). The
Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk.
35.4 Credit risk management
Trade receivables
Trade receivables are generally unsecured and are derived from revenue earned from customers. On account of adoption of Ind AS 109,
the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix and forward¬
looking information and an assessment of the credit risk over the expected life of the financial asset to compute the expected credit loss
allowance for trade receivables. Historical experience of collecting receivables of the Company is supported by low level of past default
and hence the credit risk is perceived to be low.
Investments in subsidiaries, associates and joint ventures
The Company had invested in various subsidiaries, associates and joint ventures. The approved future business plans and cash flow
projections of these entities are evaluated by the management of the Company on an ongoing basis and based on this evaluation the
recoverability of the investments is considered to be good. (Also refer Note 8)
Other Financial assets
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are mutual funds and banks with
high credit-ratings assigned by credit-rating agencies.
35.5 Liquidity Risk
Liquidity Risk refers to insufficiency of funds to meet the financial obligations. Liquidity Risk Management implies maintenance of
sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit lines to meet
obligations when due.
The Company manages liquidity risk by banking facilities and by continuously monitoring forecast and actual cash flows, and by
assessing the maturity profiles of financial assets and liabilities. The below table sets out details of additional undrawn facilities that the
Company has at its disposal to further reduce liquidity risk.
35.6 Derivatives Instruments and unhedged Foreign Currency (FC) exposure
The Company is exposed to Currency Risk arising from its trade exposures and capital/Loan receipt/payments denominated, in other than the
Functional Currency. The Company has a Foreign Exchange Risk Management policy within which the treasury has to perform and also lays
down the checks and controls to ensure the continuing success of the treasury function. The Company has defined strategies for addressing
the risks for each category of exposures (e.g. for exports , for imports, for loans, etc.). The centralised treasury function aggregates the foreign
exchange exposure and takes prudent measures to hedge the exposure based on prevalent macro-economic conditions.
d) Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)
The Company consider that the carrying amounts of financial assets and financial liabilities recognised in Note (a) above approximate
their fair values,
36. Operating lease arrangements
36.1(i)The Company as lessor
The Company has entered into operating lease arrangements, consisting of surplus space in buildings to others, The normal tenure of the
arrangement is upto five years. The rental income from the assets given on lease of ' 2,269,75 Lakhs (Previousyear f2,034.73Lakhs) has been
disclosed as “Rent and amenities” under Revenue from operations in Note 24 to the Statement of Profit and Loss.
40. Segment reporting
The Chief Operating Decision maker of the Company examines Company’s performance both from a product and from a geographic
perspective. From a product perspective, the management has identified the reportable segments Engineering and Real Estate at standalone
level.
Segment revenue, segment results, segment assets and segment liabilities include the respective amounts identifiable to each of the
segments and amounts allocated on a reasonable basis.
Details of product categories included in each segment comprises:
Coding and Industrial Automation Segment includes manufacture/ trading in conventional and Automatic Marking Systems and Industrial
Automation Business. The Company caters to the needs of domestic and export markets.
Real Estate includes income from renting out investment properties and revenue from real estate development project.
Unallocable Corporate Assets mainly comprises of investments, tax receivables and other unallocable assets.
Unallocable Liabilities comprise borrowings, provisions and other unallocable liabilities not identifiable to any specific segment.
42. In the matter of Svadeshi Mills Company Limited (Svadeshi), the Hon’ble Bombay High Court vide its order dt, 9th October, 2023
allowed the Interim Application (IA) filed by Grand View Estate Private Limited (GVEPL) and the Company granting permanent stay on
the winding up of Svadeshi,
Subsequently, vide order dt, 22nd January, 2025 the Division Bench of the Hon’ble Bombay High Court vacated the stay on winding up
of Svadeshi by setting aside the above order dt. 9th October, 2023 reserving liberty to GVEPL and Company to file fresh application u/s
466 of Companies Act, 1956. GVEPL and the Company filed Special Leave Petition (SLP) before the Hon’ble Supreme Court against
the impugned order dt, 22nd January, 2025, The Hon’ble Supreme Court heard the SLP and vide its Order dt, 31st January, 2025 stated
that GVEPL and the Company may file fresh application before the Company Judge, Bombay High Court with a prayer that winding-up
of Svadeshi should not be proceeded with, Further, such fresh application to be expeditiously heard by the Company Judge,
The Company and GVEPL had filed fresh application before the Hon’ble Bombay High Court invoking powers u/s 466 of Companies
Act, 1956 seeking permanent stay on the winding up order against Svadeshi, Arguments were made and Interim Application was heard
at length, Vide Order dt, 23rd February 2026, the Hon’ble High Court dismissed the Interim Application, The Company and GVEPL
have filed on 24th March 2026, an Appeal challenging the Order dt. 23rd February 2026. Appeal was argued and the same is reserved for
order,
The total cash outflow for leases in year ended 31st March, 2025 was ' 116.26 Lakhs (Previousyear ' 53.89Lakhs).
(iv) Critical judgements in determining the lease term
In determining the lease term, management considers all facts and circumstances that creates an economic incentive to exercise an
extension option, or not to exercise a termination option. Extension option (or period after termination option) are only included in the
lease term if the lease is reasonably certain to be extended (or not terminated). The majority of extension and termination options held are
exercisable only by the Company and not by the respective lessor.
For the leases of offices premises, the following factors are normally the most relevant:
1. If there is significant penalties to terminate (or not extend), the Company is typically reasonably certain to extend (or not
terminate).
2. If any leasehold improvements are expected to have a significant remaining value, the Company is typically reasonably certain to
extend (or not terminate)
3. Otherwise, the Company considers the other factors including historical lease duration and the costs and business disruption
required to replace the leased asset.
The lease term is reassessed if an option is actually exercised (or not exercised) or the Company becomes obliged to exercise it.
The assessment of reasonably certainty is only revised if a significant event or a significant change in circumstances occurs, which
affects this assessment, and that is within control of lessee. During the current financial year, the financial effect of revising lease
terms to reflect the effect of exercising extension and termination options was a decrease in lease liabilities and right-of-use assets
by ' Nil and ' Nil respectively (Previous year LNil and ' Nil respectively).
48. The revenue from real estate project is recognized as per Ind
AS 115 ‘Revenue from Contracts with Customers’, after
considering the terms of the contract, receipt of Occupancy
Certificate, issuance of possession letters and transfer of
control of the real estate units to the customers, the Company
has recognized revenue of Rs. 118 Lakhs for the quarter ended
31st March, 2026 and Rs.1,468 Lakhs for the year ended 31st
March, 2026, and Rs.7,557 Lakhs and Rs.14,516 Lakhs for the
quarter and year ended 31st March, 2025 respectively.
49. In respect of Forbes Technosys Limited (FTL), the National
Company Law Tribunal, Mumbai Bench (NCLT), vide its
order dated 24th March, 2025, has admitted the petition filed by
FTL, under Section 10 of the Insolvency and Bankruptcy Code,
2016 (“IB Code”), read with the Insolvency and Bankruptcy
(Application to Adjudication Authority) Rules, 2016. As a result,
the Corporate Insolvency Resolution Process (CIRP) has been
initiated, the Interim Resolution Professional (IRP) has been
appointed with effect from the date of the Order. Consequently,
the management and powers of the Board of Directors of FTL are
suspended and exercised by the IRP for the duration of the CIRP.
IRP constituted the Committee of Creditors (CoC) on 19th
April, 2025, CoC meetings have been convened by IRP. The
resolutions placed before the CoC did not receive the requisite
percentage of voting share, hence the resolutions failed. IRP has
filed Interim Application before the NCLT, Mumbai Bench for
appointment of Liquidator to be heard in due course.
The Company does not have any significant influence or control
over FTL and therefore it is being reclassified from subsidiary
to other investment from order dated 24th March, 2025. Further,
the Investments made in FTL are fully provided in the books of
the Company in earlier years.
The Company has received Rs. 60 Lakhs against the receivable
of earlier ICD granted to Forbes Technosys Limited during the
year ended 31st March, 2025, Subsequently, the Company has
granted loans and advances of Rs.12 Lakhs for the year ended
31st March, 2025 and the same has been provided during year
ended 31st March, 2025. Accordingly, net amount of Rs.48
Lakhs reversed during the previous year ended 31st March, 2025.
50. EFL Mauritius Limited (EFLM), a wholly owned subsidiary of
the Company, had filed an application for removal of its name
from Register of Registrar of Companies (ROC), Mauritius
which was subsequently withdrawn pending conversion of
Preference shares into equity shares which was completed
during the financial year ended 31st March, 2026. Accordingly,
2,87,05,230 Preference Shares of Euro 1 each were converted
into equal amount of Equity shares of Euro 1 each. EFLM is in
the process of filing for removal of its name from the Register
of ROC, Mauritius. The Company has considered the financial
statements on realizable basis. The Company has not yet
relinquished control over EFLM.
51. The Joint Venture Agreement between the Company and
MACSA ID S.A. was terminated, and the Company acquired
the entire shareholding of MACSA ID S.A. in Forbes Bradma
Optimark Private Limited (FBOPL) (formerly known as Forbes
Macsa Private Limited) as on 31st March 2025. Accordingly,
FBOPL became a wholly owned subsidiary of the Company
with effect from 31st March 2025.
Further, the Company has also impaired the investment made in
Forbes Bradma Optimark Private Limited (Formerly known as
Forbes Macsa Private Limited) for an amount of Rs.250 Lakhs
during the year ended 31st March, 2025.
52. As per the Ministry of Corporate Affairs (MCA) notification,
proviso to Rule 3(1) of the Companies (Accounts) Rules,
2014, for the financial year commencing April 1, 2023, every
company which uses accounting software for maintaining its
books of account, shall use only such accounting software
which has a feature of recording audit trail of each and every
transaction, creating an edit log of each change made in the
books of account along with the date when such changes were
made and ensuring that the audit trail cannot be disabled. The
interpretation and guidance on what level edit log and audit trail
needs to be maintained evolved during the year and continues to
evolve. The Company has used accounting software (viz. SAP)
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
software. Further, there are no instances of audit trail feature
being disabled at any time during the year. The audit trail has
been preserved as per the statutory requirements for record
retention.
53. On November 21, 2025, the Government of India notified four
Labour Codes, which consolidate multiple existing labour laws
into a unified framework governing employment and post¬
employment benefits. Based on the best information available,
applicable legal interpretations and professional guidance, the
Company has assessed the financial impact arising primarily
from changes in the definition of wages and employee benefit
entitlements. In accordance with IND AS 19, these changes
constitute a plan amendment requiring immediate recognition
of past service cost, resulting in an incremental impact of Rs.
164 Lakhs (comprising gratuity and compensated absences)
which has been recognised as an employee benefit expense
in the current reporting period. The Company continues to
monitor the finalisation of Central and State Rules and related
clarifications and will account for any further impact in
accordance with applicable accounting standards in the period
in which such developments occur.
54. Additional Regulatory Information as per Schedule III of the
Division II of the Companies Act, 2013
i. Details of benami property held
There are not any proceedings that have been initiated
or pending against the company for holding any benami
property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and the rules made thereunder as at 31st
March, 2026.
ii. Wilful defaulter
The Company has not been declared wilful defaulter by
any bank or financial Institution or other lender who has
powers to declare a company as a wilful defaulter at any
time during the financial year or after the end of reporting
period but before the date when financial statements
are approved or in an earlier period and the default has
continued for the whole or part of the current year.
iii. Relationship with struck off companies
The Company has no transactions with the companies
struck off under Companies Act, 2013 or Companies Act,
1956.
iv. The Company is in compliance with the number of layers
prescribed under clause (87) of section 2 of the Companies
Act 2013 read with Companies (Restriction on number of
Layers) Rules, 2017.
v. (a) The Company has not advanced or loaned or
invested any funds (either borrowed funds or share
premium or any other sources or kind of funds)
during the year to any other person(s) or entity(ies),
including foreign entities (intermediaries) with
the understanding (whether recorded in writing or
otherwise) that the intermediary shall:
i) 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,
ii) provide any guarantee, security or the like to or
on behalf of the ultimate beneficiaries.
(b) The Company has not received any fund from
any person(s) or entity(ies), including foreign
entities (funding party) during the year with the
understanding (whether recorded in writing or
otherwise) that the company shall:
i) 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
ii) provide any guarantee, security or the like to or
on behalf of the ultimate beneficiaries.
vi. Undisclosed income
The company does not have any transaction that are
not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the
tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the
Income Tax Act, 1961), during the year.
vii. Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency
or virtual currency during the current or previous year.
viii. Valuation ofPP&E, intangible asset and investmentproperty
The Company has not revalued its property, plant and
equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.
55. Other regulatory information
i. Registration of charges or satisfaction with Registrar of
Companies
There are no charges or satisfaction which are yet to be
registered with the Registrar of Companies beyond the
statutory period.
ii. 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 was taken.
iii. The Company is not a Core Investment Company (CIC)
as defined in the regulations made by the Reserve Bank of
India.
The Group has eight unregistered CICs which are part of
the Group
- SP Finance Private Limited,
- SC Finance and Investments Private Limited,
- Hermes Commerce Private Limited,
- Renaissance Commerce Private Limited
- Shapooiji Pallonji Energy Private Limited (formarly
known as Shapoorji Pallonji Oil and Gas Private
Limited).
- SMCM Holdings Private Limited (SMCM) and
- Shayrus Ventures Private Limited (Shayrus).
- Forbes Campbell Finance Limited.
56. Previous year figures have been regrouped/ reclassified,
wherever necessary to conform to current year classification.
57. The financial statements were approved by the Board of
Directors of the Company at their respective meetings held on
14th May, 2026.
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