2.15 Provisions, Contingent Liabilities and Contingent Assets
Contingent liability :
A possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non
occurrence of one or more uncertain future events not wholly within the control of the Company or; present obligation that
arises from past events where it is not probable that an outflow of resources embodying economic benefits will be required
to settle the obligation; or the amount of the obligation cannot be measured with sufficient reliability are disclosed as
contingent liability and not provided for. .
Contingent assets :
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are
not recognised and disclosed only when an inflow of economic benefits is probable.
Provisions :
A provision is recognized when as a result of a past event, the Company has a present obligation whether legal or constructive
that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation.
If the obligation is expected to be settled more than 12 months after the end of reporting date or has no definite settlement
date, the provision is recorded as non-current liabilities after giving effect for time value of money, if material. Where
discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.
2.16 Earnings per share
(a) Basic earnings per share are computed by dividing the net profit/(loss) after tax by the weighted average number of
equity shares outstanding during the year.
(b) Diluted earnings per share are computed by dividing the net profit/(loss) after tax by the weighted average number of
equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares
which could be issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are
determined as at the end of each period presented. Dilutive potential equity shares are determined independently for
each period presented.
2.17 Operating Segment
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker (CODM).
The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the Managing Director who makes strategic decisions.
The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparing and
presenting the Financial Statements of the Company as a whole. In addition, the following specific accounting policies have
been followed for segment reporting:
a) Segment revenue includes sales and other income directly identifiable with/allocable to the segment including inter
segment transfers.
Inter segment transfers are accounted for based on the transaction price agreed to between the segments which is
at cost in case of transfer of Company's intermediate and final products and estimated realizable value in case of by¬
products.
b) Revenue, expenses, assets and liabilities are identified to segments on the basis of their relationship to the operating
activities of the segment. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not
allocable to segments on direct and/or on a reasonable basis, have been disclosed as "Unallocable".
2.18 Leases
Assets taken on lease are accounted as right-of-use assets and the corresponding lease liability is recognised at the lease
commencement date.
The Company's lease asset classes primarily consist of land. Initially the right-of-use asset is 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, as reduced by any lease incentives received.
The lease liability is initially measured at the present value of the lease payments, discounted using the Company's incremental
borrowing rate. It is remeasured when there is a change in future lease payments arising from a change in an index or a rate, or
a change in the estimate of the guaranteed residual value, or a change in the assessment of purchase, extension or termination
option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the
right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The right-of-use asset is measured by applying cost model i.e. right-of-use asset at cost less accumulated depreciation and
cumulative impairment, if any. The right-of-use asset is depreciated using the straight-line method from the commencement
date to the end of the lease term or useful life of the underlying asset whichever is earlier. Carrying amount of lease liability is
increased by interest on lease liability and reduced by lease payments made.
Lease payments associated with following leases are recognised as expense on straight-line basis:
(i) Low value leases; and
(ii) Leases which are short-term.
Assets given on lease are classified either as operating lease or as finance lease. A lease is classified as a finance lease if it
transfers substantially all the risks and rewards incidental to ownership of an underlying asset. Asset held under finance
lease is initially recognised in balance sheet and presented as a receivable at an amount equal to the net investment in the
lease. Finance income is recognised over the lease term, based on a pattern reflecting a constant periodic rate of return on
Company's net investment in the lease. A lease which is not classified as a finance lease is an operating lease.
The Company recognises lease payments in case of assets given on operating leases as income on a straight-line basis. The
Company presents underlying assets subject to operating lease in its balance sheet under the respective class of asset.
Leasehold land classified as Right-of-use assets is depreciated from the commencement date on a straight-line basis over
the lease term (being lower than its useful life). Lease liability and ROU asset have been separately presented in the Balance
Sheet and lease payments have been classified as financing cash flows.
2.19 Cash and cash equivalents
Cash and cash equivalents in the Balance sheet comprise cash on hand, cheques on hand, balance with banks on current
accounts and short term, highly liquid investments with an original maturity of three months or less and which carry
insignificant risk of changes in value.
For the purpose of the Cash Flow Statement, Cash and cash equivalents consist of Cash and cash equivalents, as defined above
and net of outstanding book overdrafts as they are considered an integral part of the Company's cash management.
2.20 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit/loss 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 flows. The cash flows from operating, investing and financing activities of the
Company are segregated.
2.21 Exceptional items
Exceptional items include income or expenses that are part of ordinary activities. However, they are of such significance and
nature that separate disclosure enables the user of financial statements to understand the impact more clearly. These items
are identified by their size or nature to facilitate comparison with prior periods and assess underlying trends in the Company's
financial performance.
2B. Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements in conformity with the measurement principle of Ind AS requires management
to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of
accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at
the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates
could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are
made as management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual
results and estimates are recognized in the year in which the results are known / materialized and, if material, their effects are
disclosed in the notes to the financial statements.
Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use
of assumptions in the financial statements have been disclosed below. The key assumptions concerning the future and other
key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment
to the carrying amount of assets and liabilities within the next financial year are discussed below:
The Company provides for tax considering the applicable tax regulations and based on reasonable estimates. Management
periodically evaluates positions taken in the tax returns giving due considerations to tax laws and establishes provisions in
the event if required as a result of differing interpretation or due to retrospective amendments, if any.
(a) Income taxes
Deferred income tax expense is calculated based on the differences between the carrying value of assets and liabilities
for financial reporting purposes and their respective tax bases that are considered temporary in nature. Valuation of
deferred tax assets is dependent on management's assessment of future recoverability of the deferred benefit. Expected
recoverability may result from expected taxable income in the future, planned transactions or planned optimising
measures. Economic conditions may change and lead to a different conclusion regarding recoverability.
(b) Fair value measurements and valuation processes:
Investments are measured at fair value for financial reporting purposes. Fair value measurements are categorised
into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the
significance of the inputs to the fair value measurement in its entirety.
Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities
are disclosed in the notes to the financial statements.
(c) Estimation of Defined benefit obligations
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in
the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to
the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each financial year end.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans, the
actuary considers the interest rates of government bonds.
The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in
response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation
rates.
(d) Provisions and contingent liabilities
The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds
is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management's
assessment of specific circumstances of each dispute and relevant external advice, management provides for its best
estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve
estimation uncertainty. Information about such litigations is provided in notes to the financial statements.
2C. Recent Pronouncements
(a) New and revised standards adopted by the Company
During the year ended March 31, 2025, the Company considered the amendments notified by the Ministry of Corporate
Affairs (MCA) through the 1st Amendment dated August 12, 2024, the 2nd Amendment dated September 9, 2024, and
the 3rd Amendment dated September 28, 2024 to the Companies (Indian Accounting Standards) Rules, 2015.
These amendments primarily relate to the introduction of Ind AS 117 - Insurance Contracts and consequential changes
to standards including Ind AS 101, 103, 104, 105, 107, 109, 115, and 116, which address accounting and disclosure
requirements for insurance contracts, financial guarantee contracts, and sale and leaseback arrangements, among
others.
The adoption of these amendments did not have impact on the profit or loss and earnings per share of the Company for
the year.
(b) Standards issued but not yet effective
The Ministry of Corporate Affairs (MCA), vide notification dated May 7, 2025, has amended Indian Accounting Standard
(Ind AS) 21 - The Effects of Changes in Foreign Exchange Rates and Ind AS 101 - First time Adoption of Indian Accounting
Standards. These amendments are applicable for annual reporting periods beginning on or after April 1, 2025.
The key amendment relates to providing guidance for assessing lack of exchangeability between currencies and
estimating the spot exchange rate when a currency is not exchangeable. Additional disclosure requirements have also
been introduced in such scenarios, including the nature and financial effect of the currency in exchangeability, the
estimation methodology used, and risks arising therefrom.
The Company is currently evaluating the impact of these amendments and expects that their application will not have a
material effect on the financial statements.
(i) No shares were allotted as fully paid up by way of bonus shares or pursuant to contract without payment being received in cash
during the last five years ended on March 31, 2025 (Previous year Nil). Further, 41,21,000 equity shares were bought back by the
Company during the last five years ended on March 31, 2025 (Previous year 41,21,000 equity shares).
(j) Dividend:
The final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are
recorded as a liability on the date of declaration by the Company's Board of Directors.
During the year ended March 31, 2025, the Company paid the final dividend of '1.10 ( Previous year '1.10) per equity share
(110%) for the year ended March 31, 2024.
The Board of Directors, at their meeting held on May 14, 2025 recommended a final dividend of '0.75 per equity share (75%) for
the year ended March 31, 2025, subject to approval of shareholders. On approval, the dividend outgo is expected to be '475.34
lakhs based on number of shares outstanding.
Notes:
i) General Reserve - General reserve is a free reserve and can be utilised for any general purpose like issue of bonus shares,
payment of dividend, buy back of shares etc.
ii) Securities Premium - The amount received in excess of the par value has been classified as Securities premium.
iii) Retained earnings - Retained earnings represents the amount of accumulated earnings of the Company. This includes net
cumulative losses related to the re-measurement of the defined benefit plan resulting from experience adjustments and changes
in actuarial assumptions, recognised in other comprehensive income.
iv) Capital Reserve - The amount represents capital subsidy received from Government of Maharashtra.
v) Employee share options - This reserve relates to stock options granted by the Company to sepcified employees under ICL
Employee Stock Option Plan 2020. This reserves is transferred to secutiries premium or retained earnings on exercise or lapsed
of vested option.
vi) Capital Redemption Reserve - This reserve is created for an amount equal to the nominal value of shares bought back. This
reserve shall be utilised in accordance with the provision of the Act.
Sensitivity analysis indicates the influence of a reasonable change in certain significant assumptions on the outcome of the
Present value of obligation (PVO) and aids in understanding the uncertainty of reported amounts. Sensitivity analysis is done
by varying one parameter at a time and studying its impact.
*Included in "Salaries, Wages and Bonus" under "Employee benefits expense" in Note 33.
The expected return on Plan Assets is based on the actuarial expectation of the average long-term rate of return expected. The
discount rate is based on the prevailing market yields on Government bonds as at the balance sheet date.
H. Risk Exposure:
Provision for a defined benefit scheme poses certain risks, some of which are detailed hereunder, as the company take on
uncertain long term obligations to make future benefit payments:
i) Liability Risks
a) Asset-Liability Mismatch Risk
Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching
duration with the defined benefit liabilities, the company is successfully able to neutralize valuation swings
caused by interest rate movements.
Hence, companies are encouraged to adopt asset-liability management.
b) Discount Rate Risk
Variations in the discount rate used to compute the present value of the liabilities may seem small, but in
practise can have a significant impact on the defined benefit liabilities.
c) Future Salary Escalation and Inflation Risk
Since price inflation and salary growth are linked economically, they are combined for disclosure purposes.
Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of
liabilities especially unexpected salary increases provided at management's discretion may lead to uncertainities
in estimating this increasing risk.
ii) Assets Risks
All plan assets are maintained in a trust fund managed by a public sector insurer viz; LIC of India. LIC has a sovereign
guarantee and has been providing consistent and competitive returns over the years.
The company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The
company has no control over the management of funds but this option provides a high level of safety for the total
corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is
ensured. Also interest rate and inflation risk are taken care of.
7 Segment Reporting disclosures as per Ind AS-108 "Operating Segments":
Operating Segments:
(a) Conveyor Belting (b) Wind Energy (c) Trading Goods and (d) Investment
Identification of Segments:
The chief operating decision maker monitor the operating results of its business segments separately for the purpose of making
decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and
is measured consistently with profit or loss in the financial statements. Operating segments have been identified on the basis
of the nature of products/services and have been identified as per the quantitative criteria specified in the Ind AS.
During the previous year, the Company had identified 'Investments' as a separate business segment. It was based on internal
reorganization of its business segments, increased focus and business review carried out by the Managing Director (Chief
Operating Decision Maker CODM) of the Company. The Investment segment comprises of Investments in equity instruments,
mutual funds and inter corporate deposits given by the Company etc.
Segment Revenue and Results:
The expenses and incomes which are not attributable to any business segment are shown as unallocated expenditure (net of
unallocated income).
Segment Assets and Liabilities:
Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipments,
investments, loans, trade and other recievables, cash and cash equivalents, bank balance other than cash and cash equivalents etc.
Segment liabilities primarily includes trade payables, borrowings and other liabilities.
Common assets and liabilities which cannot be allocated to any of the segments are shown as a part of unallocated Corporate assets/
liabilities.
B. Fair value hierarchy
The fair value of the financial assets and financial liabilities are 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. This section explains
the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and
measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To
provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial
instruments into the three levels prescribed under the accounting standard.
The following methods and assumptions were used to estimate the fair values:
Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, other financial
assets, short term loans, borrowings from banks and others, trade payables and other financial liabilities approximate their
carrying amounts due to the short-term maturities of these instruments.
The Company uses the following fair value hierarchy for determining and disclosing the fair value of financial instruments:
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 asset or liability, either directly or
indirectly.
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
risk management purposes are carried out by specialist team that have the appropriate skills, experience and supervision. It is
the Company's policy that derivatives are used exclusively for hedging purposes and not for trading or speculative purposes.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below :
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other risks, such as regulatory
risk and commodity price risk.
(i) 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's exposure to the risk of changes in market interest rates relates
primarily to the Company's short-term debt obligations with floating interest rates. The Company is exposed to
fluctuations in interest rates in respect of rupee borrowings which is disclosed in Note 20 and 23.
A change of 100 basis points in interest rate at the reporting date would have increased / (decreased) profit by
'86.28 Lakh. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate
borrowings.
The Company carries borrowings at amortised cost and hence, change in the interest rate at reporting date does not
affect statement of profit or loss.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates
primarily to the Company's foreign currency transactions. This foreign currency risk is covered by using foreign
exchange forward contracts.
Foreign currency sensitivity
1% increase or decrease in foreign exchange rates will have no material impact on Profit.
Derivative Instruments and unhedged foreign currency exposure.
(a) Derivative contracts outstanding : Nil (Previous year Nil)
(b) Unhedged foreign currency exposure
(iii) Other price risk
The Board of Directors reviews and approves equity investment decisions. Company's equity risk exposure is limited
to cost and these are subject to impairment testing as per the policies followed in this respect. Accordingly, other
price risk is not expected to be material.
(b) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss.
The impairment for financial assets 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 balance sheet
date.
Financial assets are written off when there is no reasonable expectation of recovery, however, the Company continues to
attempt to recover the receivables. Where recoveries are made, these are recoginsed in the Statement of Profit and Loss.
(i) Trade receivables
Customer credit risk is managed based on Company's established policy, procedures and control relating to customer
credit risk management.
Trade receivables are non-interest bearing and are generally on credit terms of 3 to 60 days.
An impairment analysis is performed at each balance sheet date on an individual basis for major clients. In addition,
a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.
The maximum exposure to credit risk at the balance sheet date is the carrying value of each class of financial assets
disclosed in note no. 12.
The ageing analysis of the receivables (gross) has been disclosed in Note 12.
(ii) Financial instruments and deposits
Credit risk from balances with banks is managed in accordance with the Company's policy. Investments of surplus
funds are made only with approved counterparties. None of the Company's cash and bank balances, including fixed
deposits with banks, are past due or impaired. Regarding loans and other financial assets (both current and non¬
current), there were no indications as at March 31, 2025 and March 31, 2024 that defaults in payment obligations
will occur.
The Company's maximum exposure to credit risk for the components of the balance sheet as at March 31, 2025 and
March 31, 2024 is the carrying amounts as stated in note no. 7 and 13 to 16.
(c) Liquidity risk
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of cash
credit facilities and short term loans.
The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted
payment :
(d) Capital Management
(i) Risk Management
For the purpose of the Company's capital management, capital includes issued equity capital, securities premium
and all other equity reserves attributable to the equity shareholders of the Company. The Company's objective when
managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns
to shareholders and other stake holders and maintain an optimal capital structure to reduce the cost of Capital.
The Company manages its capital structure and makes adjustments in light of changes in the financial condition and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements. The Company has complied with these covenants.
No changes were made in the objectives, policies or processes for managing capital during the year ended March 31,
2025 and March 31, 2024.
13 Employees share based payment
The Board of the Company approved an ESOP scheme called 'ICL Employee Stock Option Plan 2020' and the scheme became
effective from December 24, 2020. The objectives of the scheme are to reward key and senior employees for their association
with the Company, their performance as well as to attract, retain and reward employees to contribute to the growth and
profitability of the Company.
The options granted under this scheme to eligible employees vest over a period of one year to four years. The options have to be
exercised by the employees within the stipulated exercise period.
In the event of resignation, all unvested options shall lapse and options vested can be exercised before the last working day.
The fair value at the grant date is determined using the Black Scholes Model which takes into account the exercise price, the
term of the options, the share price at grant date and expected price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the option.
v) Disclosure required under Additional regulatory information as prescribed under paragraph 6L to general instructions for
preparation of Balance Sheet under Schedule III to the Companies Act, 2013 are not applicable to the Company except as
disclosed in Para 14(i) to (iii) above.
15 The previous year's figures have been rearranged wherever necessary to make them comparable with those of the current years'
figures. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial
statements and are to be read in relation to the amounts and other disclosures relating to the current year.
As per our report of even date attached. For and on behalf of the Board of Directors
For G. P. Agrawal & Co.
Chartered Accountants Udit Sethia Yogesh Kajaria
Firm's Registration No. - 302082E Director Chairman & Managing Director
DIN: 08722143 DIN: 01832931
(CA. Sunita Kedia) Kolkata Kolkata
Partner
Membership N°. 60162 Dipti Sharma A. K. Gulgulia
Place of Signature: Kolkata Company Secretary Chief Financial Officer
Date: May 14, 2025 Kolkata Kolkata
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