A. Carrying value of Plant & Equipment includes equipment offered to customers for trials on No Cost No Commitment (NCNC) basis ^ 170.64 Lakhs (Previous Year ^244.46 Lakhs).
B. Property, Plant and Equipment
i) Buildings include carrying value of building at Ranchi pending registration / khatha transfer at ^9.74 Lakhs (Previous Year^ 10.12 Lakhs).
ii) The Company has taken land measuring 1109 acres and two workshops on lease for a period of 10 years vide Lease Agreement dated 5th May 2004, w.e.f. 28.04.2004 from M/s Bharat Gold Mines Limited (BGML) (A Company under orders of winding up by BIFR), and a sum of ^100 Lakhs was paid as non-refundable deposit, (included under Other non-current current assets (Note no.ll). As per the terms
of the Lease agreement, this deposit shall be adjusted against the outright sale/transfer of ownership that may be fixed for the property and lessee shall be free to construct new building/alter the existing building/lay roads/fence the land in the interest of furthering its business to suit its use and on expiry of the lease the said building shall vest with the lessor on payment of consideration based on value prevailing on the date of handing over of the property. The Company had incurred on the above land a sum of ^1452.95 Lakhs (with carrying value - R 679.91 Lakhs) on Buildings (Previous Year - ^ 724.70 Lakhs) included in Property, Plant and Equipment as at year end.
Vide order dated 09.07.2013, the Hon'ble Supreme Court of India upheld the decision of the Union Government to float a global tender of BGML assets with an observation about the existence of sub-lease of a portion of the land to BEML Ltd expiring on 28.04.2014 to be included in the tender documents. The Company filed an Interlocutory application before the Hon'ble Supreme Court of India, praying for exclusion of land leased to BEML from the purview of global tender, which was dismissed. Since the lease agreement provides for the continuation of the lease even after the expiry of lease period on 28.04.2014 till the final decision of the Company/ Government in this regard, the operations of the company on the above land is continued. Appropriate accounting action will be considered based on the outcome of the tender process.
Meanwhile, BEML has proposed to surrender 1080.65 Acres out of 1109 Acres of land to
BGML and to enter into a fresh lease agreement for the balance operational area of 28.35 Acres. However, BGML has offered BEML to outrightly purchase the land of 28.35 acres at mutually agreed price. The matter is under discussion between BGMLand BEML. Based on the communication from BGML, BEML has filed application before High Court of Karnataka on
08.08.2024 seeking permission to purchase the said land. Matter is pending before the High Court fordisposal.
iii) Lease Hold Land includes land measuring 101175.92 Sq. Mtrs taken on perpetual lease from KIADB (Bangalore Aerospace, SEZ Park) at a cost of ^5126.00 Lakhs (Previous Year -^5126.00 Lakhs).
iv) No Provision considered necessary for impairment of assets as the realizable value of assets technically assessed is more than the carrying cost of these assets.
v) Free Hold Land measuring 3.647 acres of land, surrendered to BBMP against TDR (at cost) is ^4.58 Lakhs. Free Hold Land measuring 1.937 acres of land surrendered to BBMP for which TDR yet to be received (at cost) is ^2.43 Lakhs.
Above TDR will be utilised for further construction.
vi) For information on estimated capital contracts pertaining to the acquisition of property, plant and equipment, refer Note no. 39 DII a.
vii) Free hold at KGF does not include 114 Acres which is under reconciliation with DC, Kolar.
viii) BEML holds the title of 302.26 acres of land which was transferred to BEML Land Assets Limited on demerger. The title transfer to BLAL
is under progress. 85.905 acres of Mysore township land has been surrendered to KIADB
C. Amount of borrowing cost capitalised on addition of assets duringthe year is as under:
- Plant & Machinery ^NIL Lakhs
D. Since there is no investment property in the compnay as on 31.03.2025, fair value of investment property is Nil (Previous Year - Nil)
a. BEMLalongwith Midwest Granite Private Limited formed a joint venture company in 2007 to conduct excavation and extraction of mineral resources. The agreement was signed in September 2005 whereby BEML has a 45%
share in the operations of the joint venture and the remaining 55% is held by Midwest Granite Private Limited. The Joint Venture Company - BEML Mid West Ltd is under liquidation vide order dated 20.10.2023 of the Honourable Hyderabad bench of NCLT.As such consolidation with Company accounts / disclosure requirements under IND AS-28(lnvestments in Associates and Joint Ventures) could not be complied with.
b. As per CCEA approval dtd 8th September 2021, M/s Vignyan Industries Ltd, a subsidiary of BEML is under Voluntary Liquidation and Official Liquidator has been appointed on 11.10.2021. Movable assets have been disposed off and disposal of immovable assets is in progress. Dues of employees of VIL have been settled. As on
31.03.2025 there are no employees on the rolls of M/s VIL.
c. A Section 8 Company has been formed (Under Companies Act 2013) in the name of "Communication (Defence) Testing Foundation (CDTF)". The total project cost is ^4181 Lakhs comprising of Govt. Grant-in-Aid of ?3138 Lakhs and SPV partners contribution of ?1045 Lakhs. M/s BEL will bethe lead with equity contribution of 40%, HAL-25%, BEML-25%, & AWEIL -10%. CDTF was incorporated for Development, Operation and Management of DTI for communication domain. CDTF was incorporated on 31st May 2024. BEML has made an investment of ^261.31 Lakhs (25% stake) towards subscription of 26131 shares of ^1000 each on 26th June 2024.
d. A Section 8 Company has been formed (Under Companies Act 2013) in the name of "UAS Testing Foundation (UASTF)". The total project cost is ?6000 Lakhs comprising of Govt. Grant-in-Aid of ^4500 Lakhs and SPV partners contribution of ^1500 Lakhs. M/s HAL will be the lead with equity contribution of 33.33%, BEL-20%, BEML-20%, YIL-10%, GIL-10% & Endure Air-6.67%. UASTF was incorporated for Development, Operation and Management of DTI for Unmanned Aerial System (UAS). UASTF was incorporated on 21st June 2024. BEML has made an investment of ^300 Lakhs (30% stake) towards subscription of 30000 shares of ^1000 each on 17th July 2024.
e. A Section 8 Company has been formed (Under Companies Act 2013) in the name of "System Testing and Research for Advancd Materials Foundation (STREAM)". The total project cost ^4968 Lakhs comprising of Govt. Grant-inAid of ^3686.40 Lakhs and SPV partners contribution of ^1281.60 Lakhs. M/s Microlab will be the lead with equity contribution of 20%, BEML-20%, HAL-20%, Vaidheswaran lndustries-10%, & TIDCO-30%. STREAM was incorporated with a vision of creating easy access and addressing the testing needs of domestic defence industry. STREAM was incorporated on 18th September 2024. BEML has made an investment of ^20 Lakhs (20% stake) towards subscription of 20000 shares of ^100 each on 18th November 2024. Further, BEML made an investment of ?41.25 Lakhs towards subscription of 41250 Equity shares of ?100 each, pending allotment, the amount of investment shown under share application money under non-current financial assets.
a. The Company has entered into a Consortium Agreement (MAMC Consortium) with M/s. Coal India Limited (CIL) and M/s. Damodar Valley Corporation (DVC) on 08.06.2010 for acquiring specified assets (the assets) of M/s. Mining and Allied Machinery Corporation Limited (under liquidation - MAMC Ltd). The Consortium members agreed upon a holding pettern of48:26:26for BEML,CILand DVC respectively.
The Consortium paid the bid amount of ^10,000 Lakhs as per the Order of the Honourable Kolkata High Court for the assets including ^4800 Lakhs contributed by BEML. The assets are in possession of the Consortium. The Honourable Kolkata High Court by its order dated 05.03.2025 has directed the Official Liquidator to execute the respective conveyance deeds in respect of immovable properties and to issue independent sale certificate in repect of the other assets of MAMC Ltd.
The Company has incorporated a wholly owned subsidiary in the name of "MAMC Industries Limited"(MIL) for the puspose of JV formation. Shareholder's agreement, as duly approved by the Boards of all the three members of the consortium, has been submitted to Ministry of Defence for necessary approval. After obtaining the said approval, MIL would be converted into a JV Company.
a. Inventories include items with sub contractors/service providers of ^ 3748.68 Lakhs (Previous year ^ 3059.01 Lakhs). Out of these, confirmation from the parties is awaited for ^ 1037.71 Lakhs (Previous year ^ 735.07 Lakhs)
b. Raw materials in transit include ^1061.98 Lakhs (Previous year ^299.10 Lakhs) of materials received in the factory/depotforwhich quality clearance is pending.
c. The closing stock of work-in-progress and finished goods are stated at lower of standard cost, which approximates to actuals, and net realisable value. The difference between the actual cost of production and the standard cost is not material.
d. Variances arising on account of difference between standard cost and the actual cost, on account of change in the nature of inputs from bought-out to internally manufactured or vice versa, timing difference between standard cost and actual occurrence during the financial period and fluctuations in the material prices, is adjusted in the cost of production in order not to carry forward the period variances to subsequent financial period.
e. Allowance towards Raw material & components obsolescence is made as per the Board approved provisioning norms and is based on ageing of inventory.
f. The additional obsolescence provision impact due to change in accounting estimate during the year for SFG, WIP, Hand Tools and Maintenance spares is ^ 873.06 Lakhs.
a. The Company earns no interest on balances with banks in current accounts.
b. Balances with banks include the following on which there were restrictions placed on use and/or held on behalf of third parties: ESCROW account balance to be distributed among consortium members ^ 107.65 Lakhs (PreviousYear- ^526.61 Lakhs)
c. Out of the Cash Credit Limit of ^120000 Lakhs sanctioned to the company by Consortium Bankers as a part of Secured working capital facilities, the amount drawn by the company as on 31st March 2025 is ^21846.85 Lakhs (Previous Year ^ 6056.10 Lakhs).
Rights and restrictions attached to equity shares
The company has only one class of share, i.e., equity shares having the face value of ^ 10 per share. Each holder of equity share is entitled to one vote per share. Dividend is paid in Indian Rupees. The dividend recommended by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting. In the event of liquidation of the Company, equity shareholders will be entitled to receive remaining assets of the Company after distribution of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.
No shares of the Company is held by its subsidiaries. The Company does not have any holding company.
No shares of the Company is reserved for issue under options and contracts/commitments for the sale of shares / disinvestment.
The Board of Directors have approved an Interim Dividend of ^5.00 and ^15.00 per equity share i.e., 50% and 150% on equity shares of ^10 each on 06.02.2025 and 09.05.2025 respectively which is paid to Government of India on
25.02.2025 and 21.05.2025 and other eligible shareholders.
1. For movement in the provisions during the year refer Note no. 28.
2. The provision for employee benefits represents annual leave and vested long service entitlements accrued.
3. Warranty provisions are recognised on a contract-by-contract basis for goods sold over the warranty period. The provision is based on estimates of probable likelihood of product failure and returns based on current sales level and past experience.
4. Provision for unexpired obligations is towards supply of Backup Spares against guaranteed availability contracts.
Advances from Customers include ^280.17 Crores received from the Ministry of Defence (Customer) against a contract dated 31-10-2011 for supply of 204 Nos ARV WZT-3. The execution of the project is delayed due to nonsupply of aggregates by the vendor. The Customer and BEML have agreed to short-close the project by reducing the quantities to be delivered. The process of refixing the sale price and ascertaining the current cost of production is underway. BEML does not have any liability towards this project other than the advance received from the customer.
The company has utilised the borrowings from banks and financial institutions for the purpose for which it was been taken.
Quarterly statements/Results of assets filed by the Company with banks or financial institutions are in agreement with the books of accounts and hence the need for reconciliation of differences if any does not arise.
1. Revenue from operations does not include GST on sale of products and services up to March 2025 amounting to ^ 78405.01 Lakhs (Previous Year ^ 72209.60 Lakhs).
2. Revenue from sale of products include R 118.31 Lakhs (Previous year ^ 4098.61 Lakhs) on account of Sale of 1 No. of equipment on Bill and Hold basis recognised in accordance with IND AS -115. This does not bear any custodian charges.
3. Revenue is recognized "over the period of time" on the contracts wherever transfer of control on goods/services and performance obligation satisfied overtime. All other revenue is recognized "at a point in time" when control transfers. In Metro rail contracts where both train sets and spares are included in respect of train sets revenue is recognised "over the period of time" basis wherever performance obligation is satisfied overtime and in respect of spares revenue is recognised "at a point in time" basis.
4. Revenue from sale of products and services include revenue recognized "over the period of time" in respect of:
a) Contracts entered with Metro rail Corporations for design, manufacture, supply, testing & commissioning of metro cars, ^43963.87 Lakhs (Previous year ^ 105066.90 Lakhs)
b) Contracts with M/s LORAM for supply of Rail Grinding Machines ^ Nil Lakhs (Previous year ^ 14678.83 Lakhs)
5. In case of Metro rail supply contracts for determination of transaction price for the purpose of recognizing revenue overthe period of time, Input cost method has been considered.
6. Following are the closing and opening balances of Receivables, Contract Assets and Contract Liabilities (which are measured under Input Cost Method):
7. Payments under the Metro Supply Contracts are released by customers upon completion of milestones of Cost centres identified in the contracts.
8. Payments are released by customers under Equipment Rehabilitation and Aggregates Repairs Contracts upon completion of Repair/Rehabilitation, delivery and acceptance of the items at Customer site as indicated in the Contract.
9. Warranties: In respect of Metro rail Contracts, Defect Liability periods are applicable from the date of taking over of Train sets by the Costumers. Comprehensive warranty is provided for a period of 24 Months from the date of acceptance for Defence Equipment.
10. Standard Warranty is provided for a period of 12 months or 4000 hours of satisfactory performance of Equipment (Mining & Construction) after delivery and commissioning. However, warranty for Electrical items is for 12 months or 3000 hours from the date of commissioning whichever is earlier.
11. The aggregate amount of transaction price allocated to the performance obligation that are unsatisfied as of end of the reporting period are ^ 4471.33 Lakhs (previous year ^ 33338.67 Lakhs for Metro rail Contracts). The Company expects to recognize this revenue in subsequent years.
The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.
2. Officers
For officers, from the year 2015-16 a new Post-Retirement Medical Scheme was introduced where a percentage of Basic salary and DA of officers is contributed to a separate fund and the fund arranges to provide medical insurance to retired officers. Company has contributed 3% of the Basic and DA of officers amounting to ^ 831.87 Lakhs during FY 2024-25 (Previous year ^ 783.32 Lakhs) for the scheme. Company has no further liability other than the contribution to the fund. Hence the scheme is a defined contribution plan and no actuarial valuation is done.
c. Interest Rate Guarantee on Provident Fund
Provident Fund Trust of the Company has to declare interest on Provident Fund at a rate not less than that declared by the Employees' Provident Fund Organisation. In case the Trust is not able to meet the interest liability, Company has to make good the shortfall. This is a defined benefit plan and the Company has got the same actuariallv valued and there is no additional liabilitvthat needs to be provided forthe vear.
d. Officers Pension Scheme
Based on the guidelines of Ministry of Defence, Company has implemented "BEML Executive Superannuation (Pension) Scheme" for Officers of the Company. The Scheme is a defined contribution plan and the contribution made is being charged off in the year of contribution. Being a defined contribution plan no actuarial valuation is done.
e. Gratuity
(i) The employees' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation usingthe Projected Unit Credit Method.
(ii) The results of the actuarial study for the obligation for employee benefits as computed by the actuary are shown below:
(iii) Sensitivity analysis of significant assumptions
The following table presents a sensitivity analysis to one of the relevant actuarial assumption, holding other assumptions constant, showing how the defined benefit obligation would have been affected by changes in the relevant actuarial assumptions that were reasonably possible at the reporting date.
B. In terms of Notification No. S.O.802(E) dated 23-02-2018 of the Ministry of Corporate Affairs, the Board at its meeting held on 27.05.2016 has given consent with regard to non-disclosure of information as required under paragraphs 5(ii) (a) (1), 5(ii) (a) (2), 5(iii) and Para 5(viii) (a), (b), (c) and (e) of Part II to Schedule III of the Companies Act, 2013, in the Annual accounts for the Financial Year 2015-16 onwards.
C. Indian accounting standards (Ind AS) 24- Related Party Disclosures
In accordance with the requirements of Ind AS 24, following are the details of the transactions during the year with related parties.
3. Considering the wide scope of the definition of Related Party under section 2(76), Relative under section 2(77) and Key Managerial Personnel under section 2(51) of Companies Act, 2013 and the requirement under Ind AS 24 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the disclosure with respect to Related Party transactions has been restricted to Subsidiary/Joint Venture/Associate companies and to any other Related Party as declared by Directors and Key Managerial Personnel. Accordingly, the compliance with Related Party Transactions under section 188, Ind AS 24 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been made to the extent data is available with the Company.
D. Indian accounting standard (IND AS) 37-Provisions, Contingent liabilities and Contingent Assets
I. Contingent liabilities
a. Claims against the Company not acknowledged as debts
i Disputed statutory demands (Customs Duty, Central Excise, Service Tax, Sales Tax/VAT etc.,) -^28377.93 Lakhs (Previous Year ^20176.22 Lakhs)
ii Other claims- legal cases etc. ^13814.04 Lakhs (Previous Year ^15784.82 Lakhs)
b. Other money for which the company is contingently liable - ?Nil (Previous Year - ? Nil).
II. Commitments
a. Estimated amount of contracts remaining to be executed on capital accounts and not provided for ^8902.49 Lakhs (Previous Year ^3904.90 Lakhs).
b. Uncalled liability on shares and other investments partly paid - ?Nil (Previous Year - ? Nil).
c. Other commitments (specify nature) - ^Nil (Previous Year - ^Nil).
NOTES
1. The company does not expect any cash outflow in respect of above contingent Liabilities.
2. It is not practicable to estimate the timing of cash flows, if any, in respect of matters referred in 1(a) above pending resolutions of the arbitration / appellate proceedings.
F. Indian Accounting standard (Ind AS) 108 - Operating Segments
Vide Notification No. S.O.802(E) dated 23-02-2018 issued by Ministry of Corporate Affairs, exempted companies engaged in Defence Production from segmental disclosure as required under Ind AS 108 (Operating Segments), accordingly the disclosure requirements under Ind AS 108 has not been made.
G. Advances, Balances with government departments, Trade Payables and receivables, Other loans and advances and deposits classified under non current and current are subject to confirmation. There are certain old balances pending review/ adjustment. The management does not expect any significant impact upon such reconciliation.
H. Figures of previous year have been regrouped/ reclassified/ recast wherever necessary to conform to current year's presentation.
d) Transfers between the fair value hierarchy
There were no transfers in either direction in the fair value hierarchy during the year 2024-25.
L. Financial risk management
The Company is broadly exposed to credit risk, liquidity risk and market risk as a result of financial instruments.
The Company's Board of Directors has the overall responsibility for the establishment, monitoring and supervision of the Company's risk management framework. Treasury Management Team in the company takes appropriate steps to mitigate financial risks within the framework set by the top management. Derivative transactions are undertaken by a specialist team with appropriate skills and experience. Company do not trade in derivatives for speculation.
(I) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises from credit exposures from customers, cash and cash equivalents held with banks and current and non-current debt investments.
The Company regularly follow up the receivable to minimise losses arising from credit exposure from credit customers. Credit control assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. Deposits and cash balances are placed with reputable scheduled banks. The carrying amount of financial assets represents the Company's maximum exposure to credit risk. No other financial assets carry a significant exposure to credit risk.
Trade Receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, the management also considers the factors that may influence the credit risk of its customer base. Major Customers of the company are from Government Sector and Public Sector Companies, where credit risk is relatively low.
The management has established a system under which each new customer is analysed individually for creditworthiness before the Company's standard payment and delivery terms and conditions are offered. The Company's review includes external ratings, if they are available, and in some cases bank references.
The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade receivables based on factual information as on the Balance sheet date.
At 31 March 2025, the Company's most significant customer, accounted for ^40913.39 Lakhs of the trade receivables carrying amount (31st March 2024: ^44891.00 Lakhs).
The movement in the loss allowance for impairment of trade receivables are disclosed in Note No. 14
Any past due from Government Customers and those fully covered by guarantees or collaterals received are not tested for impairment.
The credit quality of the financial assets is satisfactory, taking into account the allowance for doubtful trade receivables.
The Company has not received any collateralsfor receivables as at reporting date.
The impairment loss allowance at 31 March 2025 related to several customers that have indication that they may not pay their outstanding balances. The Company believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on the fact that major customers are Government department, PSUs and historical payment behaviour and extensive analysis of customer credit risk, including underlying customers' credit ratings if they are available.
(ii) 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, or the risk that the Company will face difficulty in raising financial resources required to fulfill its commitments. 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.
Liquidity risk is maintained at low levels through effective cash flow management, low borrowings and availability of adequate cash. Cash flow forecasting is performed internally by forecasts of the Company's liquidity requirements to ensure that it has sufficient cash to meet operational needs, to fund scheduled investments and to comply with loan covenants.
To ensure continuity of funding, the Company primarily uses short-term bank facilities in the nature of bank overdraft facility, cash credit facility and short-term borrowings to fund its ongoing working capital requirements needs. The Company has also availed various non-current facilities in the form of secured redeemable debentures, secured term loans, inter-corporate loans against the Company's guarantee and soft loans from the Government for expansion projects and construction and development of capital assets.
Exposure to liquidity risk
The table below details the Company's remaining contractual maturity for its financial liabilities and derivative financial liabilities. The contractual cash flows reflect the undiscounted cash flows of financial liabilities and derivative financial liabilities based on the earliest date on which the Company can be required to pay.
(iii) Market risk
Market risk is the risk that changes in market prices-such as foreign exchange rates, interest rates and equity/ commodity prices - will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company uses derivatives to manage market risks. All such transactions are carried out within the guidelines set by the management.
The Company's activities expose it primarily to the financial risks of changes in foreign exchange rates and interest rate movements (refer to notes below on currency risk and interest risk). The Company enters into forward derivative contracts to manage risks of loss arising due to foreign exchange exposure. During the year ended 31 March 2025, there was no change to the manner in which the Company managed or measured market risk.
(iv) Currency risk
Foreign currency risk is the risk arising from exposure to foreign currency movement that will impact the Company's future cash flows and profitability in the ordinary course of business. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities from procuring or selling in foreign currencies and obtaining finance in foreign currencies.
The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee. The Company uses forward exchange contracts to hedge its currency risk, mostly with a maturity of less than one yearfrom the reporting date.
(v) Interest rate risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing instruments will fluctuate because of fluctuations in market interest rates.
Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss, and the Company does not designate derivatives as hedging instruments under a fair value hedge accounting model. Therefore, a change in interest rates at the reporting date would not affect profit or loss.
Cash flow sensitivity analysis for variable-rate instruments
A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased / (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particularforeign currency exchange rates, remain constant.
(vi) Equity and commodity price risk
Price risk is the risk of fluctuations in the value of assets and liabilities as a result of changes in market prices of investments. The Company has no exposure to changes in the quoted equity securities price risk as it has investments in unquoted equity instruments only. The Company does not invest in commodities and is not exposed to commodity price risk.
M. Capital Management
The Company strives to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders. The Board of Directors seek to maintain a balance between the higher returns and levels of borrowings and the advantages and security afforded by a sound capital position.
1Total borrowings comprises of long-term borrowings, short-term borrowing and bank overdraft facilities. 2 Cash and bank balances comprises of cash in hand, cash at bank and term deposits with banks excluding consortium member balances in ESCROW account, as disclosed under Note 15 (b) and balances with bankas unclaimed dividend.
N. Derivatives
Derivatives not designated as hedging instruments
The Company uses foreign currency forward contracts to manage its exposure to foreign currency fluctuations. These forward contracts are used to hedge foreign currency payables and other future transactions. However, these foreign exchange forward contracts are not designated as qualifying hedge instruments and are entered into for periods consistent with foreign currency exposure of the underlying transactions, and are generally for
a term nf 3 mnnthc tn 1 ? mnnthc
The Company has unhedged foreign currency exposure of ^3440.70 Lakhs (31 March 2024: ^23753.33 Lakhs) for payables as at reporting date.
The Company has applied the principles of Ind AS 109 for the measurement of derivative financial instruments and has classified such derivative contracts as at fair value through profit or loss.
O. Additional Disclosures:
i. The Company does not hold any benami property held under the Benami Transaction (prohibition ) Act, 1988 (clause 45), hence the reporting clause on benami property in not applicable.
ii. The Company does not fall under the willful defaulter category, hence the reporting clause on willful defaulter in not applicable.
iii. The Company has nottransacted with struck off companies in MCA during the year.
iv. The Company has complied with creation of charge and satisfaction of charge within the due dates and hence there are no non compliances to report.
vi. There are no charges or satisfaction pendingto be registered with ROC beyond statutory period.
vii. Company has complied with the number of layers as prescribed under section 2(87) of Companies Act read with the companies (Restriction on number of layers).
viii. During the current year as well as previous year, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) bytheCompanytoorinanyother persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security orthe like on behalf of the Ultimate Beneficiaries.
During the current year as well as previous year, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security orthe like on behalf of the Ultimate Beneficiaries.
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