1.19 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 an outflow of resources embodying
economic benefits will be required to settle
the obligation and a reliable estimate can
be made of the amount of the obligation.
When the Company expects some or all of a
provision to be reimbursed, for example, under
an insurance contract, the reimbursement
is recognised as a separate asset, but only
when the reimbursement is virtually certain.
The expense relating to a provision is presented
in the Statement of Profit and Loss net of any
reimbursement. Provisions are not recognised
for future operating losses.
Provisions are measured at the present value of
management’s best estimate of the expenditure
required to settle the present obligation at the
end of the reporting period. The discount rate
used to determine the present value is a pre-tax
rate that reflects current market assessments of
the time value of money and the risks specific
to the liability. The increase in the provision
due to the passage of time is recognised as
interest expense.
As a policy, the company is regularly accessing
the liability arising due to delay in fulfillment of
the obligation against advance licenses taken
for duty free import of the goods / various
investment related schemes and required
provisions are carried out in the books.
Contingent Liability is disclosed in the case of:
• A present obligation arising from the past
events, when it is not probable that an
outflow of resources will be required to
settle the obligation;
• A present obligation arising from the past
events, when no reliable estimate is possible;
• A possible obligation arising from the past
events, unless the probability of outflow of
resources is remote.
Contingent liabilities are not provided for and
if material, are disclosed by way of notes to
accounts. Contingent assets are not recognized
in financial statements. However, the same
is disclosed, where an inflow of economic
benefit is probable.
1.20 LEASES
The Company assesses whether a contract
contains a lease, at inception of a contract.
A contract is, or contains, a lease if the contract
conveys the right to control the use of an
identified asset for a define period of time in
exchange for consideration. To assess whether
a contract conveys the right to control the
use of an identified assets, the Company
assesses whether: (i) the contact involves the
use of an identified asset (ii) the Company has
substantially all of the economic benefits from
use of the asset through the period of the lease
and (iii) the Company has the right to direct the
use of the asset.
As a lessee, the Company recognises a right
of use asset and a lease liability at the lease
commencement date. The right of use asset
is initially measured at cost, which comprises
the initial amount of the lease liability adjusted
for any lease payments made at or before the
commencement date, plus any initial direct
costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to
restore the underlying asset or the site on which
it is located, less any lease incentives received.
The right of use asset is subsequently
depreciated using the straight-line method
from the commencement date to the earlier
of the end of the useful life of the right of use
asset or the end of the lease term. The estimated
useful lives of right of use assets are determined
on the same basis as those of property and
equipment. In addition, the right of use asset
is periodically reduced by impairment losses, if
any, and adjusted for certain re-measurements
of the lease liability.
The lease liability is initially measured at the
present value of the lease payments that are not
paid at the commencement date, discounted
using the interest rate implicit in the lease
or, if that rate cannot be readily determined,
the Company’s incremental borrowing rate.
For leases with reasonably similar characteristics,
the Company, on a lease-by-lease basis, may
adopt either the incremental borrowing
rate specific to the lease or the incremental
borrowing rate for the portfolio as a whole.
Lease payments included in the measurement
of the lease liability comprise the fixed payments,
including in-substance fixed payments and
lease payments in an optional renewal period
if the Company is reasonably certain to exercise
an extension option; The lease liability is
measured at amortised cost using the effective
interest method.
The Company has elected not to recognise right
of use assets and lease liabilities for short-term
leases that have a lease term of 12 months or
less and leases of low-value assets. The Company
recognises the lease payments associated with
these leases as an expense on a straight-line
basis over the lease term. The Company applied
a single discount rate to a portfolio of leases of
similar assets in similar economic environment
with a similar end date.
1.21 GOVERNMENT GRANTS
Government grants are recognised when there
is reasonable assurance that the grant will be
received and all attached conditions complied
in. When the grant relates to an expense item,
it Is recognised as Income on a systematic
basis over the years that the related costs,
for which it is intended to compensate, are
expensed. When the grant relates to an asset,
it is recognised as an income in equal amounts
over the expected useful life of the related asset.
1.22 SEGMENT REPORTING
An operating segment is a component of the
Company that engages in business activities
from which it may earn revenues and incur
expenses, whose operating results are regularly
reviewed by the company’s Chief Operating
Decision Maker (“CODM”) to make decisions for
which discrete financial information is available.
Based on the management approach as
defined in Ind AS 108-Operating Segments, the
CODM evaluates the Company’s performance
and allocates resources based on an analysis
of various performance indicators by business
segments and geographic segments.
1.23 EARNING PER SHARE
Basic Earnings Per Share
Basic earnings per share is calculated by dividing
the net profit or loss for the year attributable to
equity shareholders by the weighted average
number of equity shares outstanding during the
year. Earnings considered in ascertaining the
Company’s earnings per share is the net profit
or loss for the year after deducting preference
dividends and any attributable tax thereto for
the year. The weighted average number of
equity shares outstanding during the year and
for all the years presented is adjusted for events,
such as bonus shares, other than the conversion
of potential equity shares, that have changed the
number of equity shares outstanding, without a
corresponding change in resources.
Diluted Earnings Per Share
For the purpose of calculating diluted earnings
per share, the net profit or loss for the year
attributable to equity shareholders and the
weighted average number of shares outstanding
during the year is adjusted for the effects of all
dilutive potential equity shares.
1.24 DIVIDEND DISTRIBUTIONS
The Company recognizes a liability to make
the payment of dividend to owners of equity,
when the distribution is authorised and the
distribution is no longer at the discretion of the
Company. As per the corporate laws in India, a
distribution is authorised when it is approved
by the shareholders. A corresponding amount is
recognised directly in equity.
1.25 CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents comprise cash and
deposits with banks. The Company considers
all highly liquid investments with a remaining
maturity at the date of purchase of three months
or less and that are readily convertible to known
amounts of cash to be 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 and 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.
1.26 STATEMENT OF CASH FLOWS
Cash Flows are reported using the indirect
method, whereby profit before tax is adjusted
for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future
operating cash receipts or payments and item
of income or expenses associated with investing
or financing Cash Flows. The cash flows from
operating, investing and financing activities of
the Company are segregated.
1.27 EVENTS OCCURING AFTER THE REPORTING DATE
Adjusting events occurring after the balance
sheet date are recognized in the financial
statements. Material non adjusting events
occurring after the balance sheet date that
represents material change and commitment
affecting the financial position are disclosed in
the Director’s Report and Notes to Accounts.
1.28 EXCEPTIONS ITEMS
Certain occasions, the size, type or incidence
of an item of income or expense, pertaining to
the ordinary activities of the Company is such
that disclosure improves the understanding of
the performance of the Company, such income
or expense is classified as an exceptional
item and accordingly, disclosed in the notes
accompanying to the financial statements.
i) The Company had made assessment of investment in its Subsidiary SMS Chemicals Co. Ltd. and taken
into account the past business performances and prevailing condition. As a matter of prudence,
the Company has written off diminution in carrying value of investments of ' 339.53 Lakhs as on
April 01, 2016.
ii) The Company had made investment in its Subsidiary Synthesis International Limited (Wholly Owned
Subsidiary). The Company has already initiated the process for winidng up of the Comapny with
competent authority. As a matter of prudence, the Company has written off diminution in carrying
value of investments of ' 256.86 Lakhs as on April 01, 2016.
i) Capital advances include advances made to an intermediary for purchase of land for the company.
Advances also include capital advances given to a party for industrial land pending necessary
formalities for transfer.
ii) The company does not have any automated system to call for balance confirmations in respect
of debit/ credit balances of sundry debtors, sundry creditors, advances from customers,
security and earnest money deposit, outstanding liabilities, other payables and other advances.
Balance confirmations are requested by management out of which company has received
response from some of the parties. The management is confident that on confirmation/
reconciliation there will not be any material impact on the financial statements.
i) Trade Receivables includes ' 2,174.35 Lakhs as at March 31, 2026 (PY ' 792.51 Lakhs) due from
related parties.
ii) The company does not have any automated system to call for balance confirmations in respect of debit
/ credit balances of sundry debtors, sundry creditors, advances from customers, security and earnest
money deposit, outstanding liabilities, other payables and other advances. Balance confirmations
are requested by management out of which company has received response from some of the
parties. The management is confident that on confirmation/reconciliation there will not be any
material impact on the financial statements.
Rights and Restrictions:
i) The Company has only one class of Equity Shares having face value of ' 10/- per share. The Equity
Share holder is entitled to one vote per share. The Equity Shareholders have equal dividend rights in
proportion to their shareholding.
Nature and Purpose of Reserves
Securities Premium
Securities premium is used to record the premium on issue of shares. The reserve can be utilised
only for limited purposes such as issuance of bonus shares in accordance with the provisions of the
Companies Act, 2013
General Reserve
General reserve is created by the Company by appropriating the balance of Retained Earnings. It is a free
reserve which can be used for meeting the future contingencies, creating working capital for business
operations, strengthing the financial position of the Company etc.
Capital Redemption Reserve
Capital Redemption Reserve was created to transfer redemption reserve of Redeemable Preference
Shares. This is not free reserve and cannot be utilised for any purpose.
Retained Earnings
Retained Earings are the profits that the company has earned till date less any transfers to redemption
reserve, dividend or other distributions paid to shareholders.
i) The company does not have any automated system to call for balance confirmations in respect
of debit / credit balances of sundry debtors, sundry creditors, advances from customers,
security and earnest money deposit, outstanding liabilities, other payables and other advances.
Balance confirmations are requested by management out of which company has received
response from some of the parties. The management is confident that on confirmation/
reconciliation there will not be any material impact on the financial statements.
ii) Trade Payable includes amount due to Related Parties ' 3,029.79 Lakhs as at March 31,2026 (PY
' 1,608.49 Lakhs).
i) There is no amount outstanding in respect of Unpaid Dividend to be transferred to Investor Education
& Protection Fund under Section 125 of the Companies Act, 2013.
ii) In previsous financial year, Ind AS impact accounted as Deferred Guarantee Commission on account
of Corporate Guarantee provided by company to subsidiary.
39 MSME Disclosure
The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated August 26,
2008 which recommends that the Micro and Small Enterprises should mention in their correspondence
with its customers the Entrepreneurs Memorandum Number allocated after filing of the Memorandum
in accordance with ‘Micro, Small and Medium Enterprises Development Act, 2006 (‘the MSMED Act’).
Accordingly, the disclosure in respect of the amounts payable to such Enterprises as at March 31, 2025
has been made in the Financial Statements based on information received and available the Company.
40 Financial Instruments
A Capital Management
Capital includes equity attributable to the equity holders to ensure that it maintains an efficient capital
structure and healthy capital ratios in order to support its business and maximise shareholder value.
The Company manages its capital structure and makes adjustments to it, in light of changes in economic
conditions or its business requirements.
To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares.
The Company monitors capital using a ratio of ‘Adjusted Net Debt’ to ‘Adjusted Equity’. For this purpose,
adjusted net debt is defined as total Liabilities, comprising Interest-bearing Loans and Borrowings
and obligations under Finance Leases, less Cash and Cash Equivalents. Adjusted Equity Comprises all
components of Equity.
(ii) Measurement of Fair values and Sensitivity analysis
Fair Value Hierarchy
The fair value of the Financial Assets and Liabilities is included at the amount at which the instrument
could be exchanged in a current transaction between willing parties, other than in a forced or
liquidation sale. The Company uses the following hierarchy for determining and/or disclosing the
fair value of Financial Instruments by valuation techniques:
Financial assets and financial liabilities measured at fair value in the Balance Sheet are grouped
into three levels of a fair value hierarchy. The three levels are defined based on the observability of
significant inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the Assets or
Liabilities, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3: Inputs for the Assets or Liabilities that are not based on observable market data
(unobservable inputs)
The cost of unquoted investments included in Level 3 fair value hierarchy approximate their fair
value because there is a wide range of possible fair value measurements and the cost represents
estimate of fair value within that range
(a) Financial instrument measured at fair value
The Company uses the following hierarchy for determining and/or disclosing the fair value of
financial assets by valuation techniques:
(b) Financial Instrument measured at Amortised Cost
The carrying amount of financial assets and financial liabilities measured at amortised cost in
the financial statements are a reasonable approximation of their fair values since the Company
does not anticipate that the carrying amounts would be significantly different from the values
that would eventually be received or settled.
41 Financial Risk Management, Objective and Policies
The Company’s Board of Directors have overall responsibility for the establishment and oversight of
the Company’s risk management framework. The Company manages market risk through treasury
operations, which evaluates and exercises independent control over the entire process of market risk
management. The finance team recommends risk management objectives and policies. The activities
of this operations include management of cash resources, hedging of foreign currency exposure, credit
control and ensuring compliance with market risk limits and policies.The Company’s Management
reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
The Company has exposure to the following risks arising from financial instruments:
(a) Credit Risk
(b) Market Risk and
(c) Liquidity Risk
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. The Company is exposed to credit risk arising from its operating activities primarily
from trade receivables, from financing activities primarily relating to parking of surplus funds as Deposits
with Banks, investments, loans, and security deposits.
The carrying amounts of financial assets represent the maximum credit risk exposure. Credit risk
assessment on various components is described below:
(i) Trade receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of
each customer. The demographics of the customer, including the default risk of the industry and
country in which the customer operates, also has an influence on credit risk assessment. Credit risk
is managed 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. The Company has adopted a policy of only dealing with creditworthy counterparties
and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial
loss from defaults.
The Company has established a credit policy under which each new customer is analysed individually
for creditworthiness before the standard payment and delivery terms and conditions are offered.
The Company’s review includes external ratings, if they are available, financial statements, credit
agency information, industry information and in some cases bank references. Sale limits are
established for each customer and reviewed periodically.
The Company measures the expected credit loss of trade receivables from customers based on
historical trend, industry practices and the business environment in which the entity operates.
Loss rates are based on actual credit loss experience and past trends. Based on the historical data,
as per management perceptions, the provision for loss on collection is made on trade receivables
based on Expected Credit Loss Model (ECL) as below:
(ii) Cash and cash equivalents and bank deposits
Credit risk from balances with Banks and Financial Institutions is managed by the Company’s treasury
department. Investments of surplus funds are made only with approved counter parties and within
credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks
and therefore mitigate financial loss through counterparty’s potential failure to make payments.
(iii) Security Deposits and Loans
This consists of loans given to Employees and Security Deposits given to utility providers like
Electricity companies and others. These carries limited credit risk based on the financial position of
parties and Company’s historical experience of dealing with these parties.
(b) Market Risk:
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from
adverse changes in market rates and prices (such as interest rates and foreign currency exchange rates)
or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates
and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency
receivables and payables and all short-term and long-term debt. The Company is exposed to market risk
primarily related to foreign exchange rate risk and interest rate risk.
(i) Foreign currency risk
The Company operates internationally and is exposed to foreign exchange risk arising from foreign
currency transactions, primarily with respect to the USD and SGD. The Company has in place the
Risk management policy to manage the foreign exchange exposure
The Foreign currency exchange rate exposure is partly balanced through natural hedge. This provide
an economic hedge without derivatives being entered into and therefore hedge accounting not
applied in these circumstances.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Company’s
policy is to ensure that its net exposure is kept to an acceptable level by buying or selling foreign
currencies at spot rates when necessary to address short-term imbalances.
The company can enter into foreign currency forward contracts and other authorized derivative
contracts, which are not intended for trading or speculative purposes but for hedge purposes to
establish the amount of reporting currency required or available at the settlement date of certain
payables/receivables and borrowings.
(ii) 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 changes in market interest rates. The Company manages its interest rate risk
by having a balanced portfolio of fixed and variable rate loans and borrowings.
The Company’s risk management activities are subject to the management, direction and control of
Risk Management Policy for interest rate risk through appropriate policies and procedures identified,
measured and managed.
The Company’s fixed rate borrowing are carried at amortised cost. They are therefore not subject
to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash
flows will fluctuate because of a change in market interest rate.
For the Company’s floating rate borrowing, the analysis is prepared assuming a 100 basis point
increase or decrease is used, which represents management’s assessment of the reasonably
possible change in interest rate.
(c) Liquidity risk:
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s
approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to
meet its liabilities when they are due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company’s reputation.
The Company manages liquidity risk by maintaining adequate reserves, by continuously monitoring
forecast and actual cash flows and matching the maturity profiles of the financial assets and liabilities.
The table below summarises the remaining contractual maturities of financial liabilities at the reporting
date. The amounts are gross and undiscounted, and include estimated interest payments and exclude
the impact of netting agreements.
42 Detail of Employees Benefits
(a) Defined Contribution Plans
The Company has defined contribution plan in form of Provident Fund and Employee State Insurance
Scheme for qualifying employees. Under the Schemes, the Company is required to contribute a specified
rates to fund the schemes.
(b) Defined Benefits Plans
The Company provides for retirement benefits in the form of Gratuity. The Company’s gratuity scheme
(unfunded) provides for lump sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to 15 days salary payable for
each completed year of service subject to a ceiling of ' 20 Lakhs. Vesting occurs upon completion of 05
years of service.
The present value of the defined benefits plan was measured using the projected unit credit method.
The following tables set out the status of the gratuity plan and amounts recognised in the
financial statements:
Estimates of future salary increase takes into account: inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
The plan exposes the Group to significant actuarial risks such as interest rate risk and
inflation risk:
Inflation risk - A significant proportion of the defined benefit liability is linked to inflation. An increase
in the inflation rate will increase the Group’s liability.
Interest rate risk - The present value of the defined benefit liability is calculated using a discount rate
prevailing market yields of Indian government securities. A decrease in discount rate will increase
the Group’s defined benefit liability.
Sensitivities have been calculated to show the movement in Defined Benefit Obligation in isolation
and assuming there are no other changes in market conditions at the accounting date. In presenting
the above sensitivity analysis, the present value of the defined benefit obligations 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 recognised in the balance sheet.
This analysis may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the change in the assumptions would occur in isolation of one another as some of the
assumptions may be correlated.
(vii) The weighted average duration of the benefit obligation as at March 31, 2026 is 11 years (as at
March 31, 2025 is 12 years).
(c) Compensated absence:
Expenses recognised in the Statement of Profit and Loss amounts to ' 96.41 Lakhs for the year ended
March 31, 2026 (March 31, 2025 was ' 82.32 lakhs).
The current and non-current classification of obligations under defined benefit plans and other long¬
term benefits is done bases on the actuarial valuation reports.
45 Operating Segment
The Company determines Operating Segments as components of an entity for which discrete financial
information is available that is evaluated regularly by chief operating decision maker (CODM), in deciding
how to allocate resources and assessing performance. a) The Company operates mainly in manufacturing
of Dyes, Dyes Intermediates and Basic Chemicals. All other activities are incidental thereto and integrated,
which have similar risk and return.
Considering the nature of Company’s business, as well as based on reviews by CODM to make decisions
about resource allocation and performance measurement, accordingly, there are no separate reportable
Segment as far as primary Segment is concerned in accordance with the requirements of Ind AS-108 -
‘‘Operating Segments’’, prescribed under Companies (Indian Accounting Standards) Rules, 2015.
(b) Capital commitments and other commitments
Estimated amount of contracts pending execution on capital accounts and not provided for (net of
advances) is ' 10,728.46 Lakhs (PY ' 1,305.11 Lakhs).
The Company has given capital advances to various equipment suppliers and other parties towards
purchase of capital goods to be used as Plant & Machinery. The amount includes balances outstanding
for long against which capital goods have not been procured by the company. Third party confirmations,
reconciliations and other supportive audit evidences are being requested from vendors to determine
outstanding capital advance and its recoverability.
49 New Labour Code (2025)
On November 2025, The Government of India has consolidated 29 existing labour legislations into a
unified framework comprising four Labour Codes i.e. the Code on Wages 2019, the Industrial Relations
Code 2020, the Code on Social Security 2020, and the Occupational Safety, Health and Working
Conditions Code 2020 (collectively referred to as the “New Labour Codes”). The Ministry of Labour &
Employment had published draft Central Rules and FAQs to enable assessment of the financial impact
due to changes in regulations. The Company had assessed and disclosed the incremental impact of
these changes on the basis of internal management assessment and the best information available,
consistent with the guidance provided by the Institute of Chartered Accountants of India.
The Company has complied with the New Labour Codes to the extent applicable and evaluated that
there is no material impact in the Standalone Financial Statements.
The Government of India has notified the related rules under the New Labour Codes on 8th May,2026.
The Company has evaluated the impact of these rules and based on the current assessment,
Management does not expect any material additional liability or material impact on the Standalone
Financial Statements of the Company.
50 The company has few foreign currency balances (both receivables and payables) which have been
outstanding for a period which is beyond the prescribed period for settlement as per the guidelines of
Reserve Bank of India (RBI) and FEMA. As per management, the company will take necessary steps in
coordination with its bankers to regularise such receivables and payables.
51 The company, Kiri Industries Limited (“Issuer”) has realized 50.9485% upfront money amounting to
' 250,67,52,332/- on October 15, 2024 against the 13333789 entire warrants allotted for which pre¬
preferential approval was sought, made on October 15, 2024. Further, the Issuer has also realized
allotment monies amounting to ' 68,68,49,931/- from the respective allottee(s) on November 12, 2024
against allotment of 3794751 equity shares made on November 13, 2024 on conversion of 3794751
warrants from the applicants of the aforesaid shares And amounting to ' 79,52,40,152/- on August 8,
2025 against allotment of 4393592 equity shares made on August 11, 2025 on conversion of 4393592
warrants from the applicants against the balance 49.0515%
52 Other Additional Statutory Information
i) The Company do not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
ii) The Company do not have any transactions with companies struck off.
iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the
financial year.
iv) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
v) The Company have not received any fund from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that
the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
vi) The Company have no such transaction which is 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).
vii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of
the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
viii) As the company has not taken availed any WCL, overdraft, etc from any banks or financial institutions,
therefore, quarterly returns or statements of receivables, inventories and creditors for goods with
banks or financial institutions are not required to be filed by the company.
53 Events after the Reporting Period
The Company evaluates events and transactions that occur subsequent to the balance sheet date but
prior to the approval of the financial statements to determine the necessity for recognition and / or
reporting of any of these events or transactions in the financial statements. There are no subsequent
events to be recognized or reported.
54 Recent accounting pronouncement
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended
31st March, 2026, MCA has notified following Amendment to Ind AS, applicable to the Company w.e.f.
1st April, 2025.
- Ind AS - 21 The Effects of Changes in Foreign Exchange Rates Lack of Exchangeability
- Ind AS 12-Income Taxes relating to International Tax Reform - Pillar Two Model Rules - Exception to
recognition and disclosure of deferred tax.
- Amendments to Ind AS 7 - Cash flow statement and Ind AS 107 - Financial Instrument Disclosures
relating to supplier finance arrangements
- Ind AS 1-Presentation of Financial StatementsClassification of Liabilities as current or non- current
and non- current liabilities with covenants.
The Company has reviewed the new pronouncements and based on its evaluation has determined that
it does not have any significant impact in its Standalone financial statements.”
55 The previous year figures are regrouped or reclassified according to current year grouping and
classification.
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