p Provisions, contingent liabilities and contingent assets
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. If the effect of the time
value of money is material, provisions are discounted using equivalent period government securities interest
rate. Unwinding of the discount is recognised in the statement of profit and loss as a finance cost. Provisions
are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, 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 a present obligation that arises from past events where it is
either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount
cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements.
Contingent assets are not recognised. However, when the realisation of income is virtually certain, then the
related asset is no longer a contingent asset, but it is recognised as an asset.
q Employee benefits
Short-term employee benefits are recognized as an expense at the undiscounted amount in the statement of
Profit and Loss for the year in which the related service is rendered.
Post-employment and other long term employee benefits are recognized as an expense in the Statement of
Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the
present value of the amount payable determined using actuarial valuation techniques.
Re-measurement gains and losses pertaining to defined benefit obligations arising from experience
adjustments and changes in actuarial assumptions are recognised in other comprehensive income in the
period in which they occur Compensated absences are accounted similar to the short term employee benefits.
Retirement benefits in the form of Provident Fund and other Funds are defined contribution scheme and
the contributions are charged to the Statement of Profit and Loss of the year when the contribution to the
respective funds are due. There are no other obligations other than the contribution payable to the fund.
r Discontinued operation and non-current assets (or disposal groups) held for sale
Discontinued operation:
A discontinued operation is a component of the Company that has been disposed off or is classified as held
for sale and that represents a separate major line of business or geographical area of operations, is part
of a single coordinated plan to dispose off such a line of business or area of operations, or is a subsidiary
acquired exclusively with a view to resale. The results of discontinued operations are presented separately in
the statement of profit or loss.
Non-current assets (or disposal groups) held for sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through
a sale transaction rather than through continuing use. This condition is regarded as met only when a sale
is highly probable from the date of classification, management are committed to the sale and the asset is
available for immediate sale in its present condition. Non-current assets are classified as held for sale from
the date these conditions are met and are measured at the lower of carrying amount and fair value less cost
to sell. Any resulting impairment loss is recognised in the Statements of Profit and Loss as a separate line
item. On classification as held for sale, the assets are no longer depreciated. Assets and liabilities classified
as held for sale are presented separately as current items in the Balance Sheet.
s Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss (excluding other comprehensive
income) for the year attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year. The weighted average number of equity shares outstanding during the year
is adjusted for events such as bonus issue, bonus element in a right issue, shares split and reserve share
splits (consolidation of shares) that have changed the number of equity shares outstanding, without a
corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit
or loss (excluding other comprehensive income) for the year attributable to equity share holders and the
weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive
potential equity shares.
t Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at
the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the
reporting period.
u Contributed equity
Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
v Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings
in current liabilities in the balance sheet.
w Current and non-current classification:
The Company presents assets and liabilities in statement of financial position based on current/non-current
classification. The Company has presented non-current assets and current assets before equity, non-current
liabilities and current liabilities in accordance with Schedule III, Division II of Companies Act, 2013 notified by
MCA.
An asset is classified as current when it is:
a) Expected to be realised or intended to be sold or consumed in normal operating cycle,
b) Held primarily for the purpose of trading,
c) Expected to be realised within twelve months after the reporting period, or
d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.
All other assets are classified as non-current.
A liability is classified as current when it is:
a) Expected to be settled in normal operating cycle,
b) Held primarily for the purpose of trading,
c) Due to be settled within twelve months after the reporting period, or
d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.
All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash
or cash equivalents. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The
Company has identified twelve months as its normal operating cycle.
x Fair value measurement:
The Company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on
the presumption that the transaction to sell the asset or transfer the liability takes place either:
a) In the principal market for the asset or liability, or
b) In the absence of a principal market, in the most advantageous market for the asset or liability.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the use of relevant observable inputs and minimising
the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the
financial statements are categorised within the fair value hierarchy.
y Off-setting financial Instrument:
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there
is a legally enforceable rights to offset the recognised amounts and there is an intention to settle on a net
basis or realise the asset and settle the liability simultaneously. The legally enforceable rights must not be
contingent on future events and must be enforceable in the normal course of business and in the event of
default, insolvency or bankruptcy of the Company or counterparty.
z SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS:
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions
and estimates could result in outcomes that require a material adjustment to the carrying amount of assets
or liabilities affected in future periods. The key assumptions concerning the future and other key sources
of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the next financial year, are described below. The
Company based on its assumptions and estimates on parameters available when the financial statements
were prepared. However, existing circumstances and assumptions about future developments may change
due to market changes or circumstances arising that are beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.
i) Property, plant and equipment, Investment Properties and Intangible Assets:
Management reviews the estimated useful lives and residual values of the assets annually in order to
determine the amount of depreciation to be recorded during any reporting period. The useful lives and
residual values as per schedule II of the Companies Act, 2013 or are based on the Company’s historical
experience with similar assets and taking into account anticipated technological changes, whichever is
more appropriate.
ii) Income Tax:
The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The
factors used in estimates may differ from actual outcome which could lead to an adjustment to the
amounts reported in the financial statements.
iii) Contingencies:
Management has estimated the possible outflow of resources at the end of each annual reporting financial
year, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to
predict the outcome of pending matters with accuracy.
iv) Impairment of financial assets:
The impairment provisions for financial assets are based on assumptions about risk of default and
expected cash loss. The Company uses judgement in making these assumptions and selecting the
inputs to the impairment calculation, based on Company’s past history, existing market conditions as well
as forward looking estimates at the end of each reporting period.
v) Impairment of non-financial assets:
The Company assesses at each reporting date whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company
estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or
Cash Generating Units (CGU) fair value less costs of disposal and its value in use. It is determined for
an individual asset, unless the asset does not generate cash inflows that are largely independent to
those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. In determining fair value less cost of disposal, recent market transactions are taken
into account. If no such transactions can be identified, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples or other available fair value indicators.
vi) Defined benefits plans:
The Cost of the defined benefit plan and other post-employment benefits and the present value of such
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, mortality rates and attrition rate. 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 reporting date.
vii) Recoverability of trade receivable:
Judgements are required in assessing the recoverability of overdue trade receivables and determining
whether a provision against those receivables is required. Factors considered include the credit rating
of the counterparty, the amount and timing of anticipated future payments and any possible actions that
can be taken to mitigate the risk of non-payment.
viii) Provisions:
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future
outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification of the liability require the application of judgement
to existing facts and circumstances, which can be subject to change. Since the cash outflows can take
place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly
and adjusted to take account of changing facts and circumstances.
ix) Fair value measurement of financial instruments :
When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of judgement is required
in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk
and volatility. Changes in assumptions about these factors could affect the reported fair value of financial
instruments.
aa Recent Accounting Pronouncement
The Ministry of Corporate Affairs (MCA) has notified on August 13, 2025 amendments to the existing
standards under Companies (Indian Accounting Standards) Amendment Rules, 2025.
Ind AS 1 - Presentation of Financial Statements - Distinction between current and non-current liability. These
amendments provide clearer guidance on classification of the liabilities as current and non-current liability by
including the additional definition and considerations for classification of the liability. The amendments also
provide additional disclosure requirements relating to material breach of long-term loan arrangement. The
amendment relates to classification of the non-current and current bifurcation of long-term loan arrangement
due to breach of covenants on or before the end of reporting period. Due to this, the loan is considered to be
payable on demand and is classified as current liability, unless the lender agrees, by the end of the reporting
period to provide a period of grace of at least twelve months after the reporting period within which the entity
can rectify the breach and during which the lender cannot demand immediate repayment. The amendment is
applicable from April 1,2026. The Company is currently assessing the probable impact of amendments which
are applicable in its annual financial statements.
Ind AS 7 - Cash flow statement - Supplier Financing Arrangement. These amendments include additional
disclosure requirements for supplier financing arrangements relating to cash and non-cash changes (i.e.
the effect of business combinations, exchange differences or other transactions that do not require the use
of cash or cash equivalents) and disclosure relating to the terms and conditions related to the arrangement
including disclosure of dissimilar terms separately along with carrying amounts in line items disclosed for
which suppliers have received payments from financial institution and range of due dates. The amendment
is applicable from April 1,2025 with exemption to comparative period and interim periods in which entity first
applies the amendments.
Ind AS 107 - Financial Instruments Disclosure-Additional disclosure relating to Supplier Financing Arrangement
- The liquidity risk disclosure will also include the disclosure for supplier financing arrangement which includes
maturity analysis for supplier financing arrangement and a description of how the entity manages the liquidity
risk inherent in Supplier Financing Arrangement.
Ind AS 12 - Income Taxes -Pillar Two - The amendment includes in the scope of the Ind AS 12 the income
tax paid on pillar two model rules and disclosure for application of the exception additional disclosure relating
to current income taxes related to Pillar Two income taxes and disclosure of known or reasonably estimable
information that helps users of financial statements understand the entity’s exposure to Pillar Two income
taxes arising from that legislation when Pillar two legislation is enacted but not yet effective. These disclosure
shall be supported by qualitative and quantitative information. These amendments are effective from April 01,
2025 but to be disclosed in annual financial statements.
3.3. Estimation of fair value of investment properties:
The fair values of the properties are based on valuations performed by an accredited independent valuer,
who is a specialist in valuing these types of properties. The Fair value of the properties have been worked
out keeping in mind the various data and information and a study of the micro market in the discussion with
industry experts, local brokers and regional developers. The fair value measurement for all of the investment
property has been categoried as a level 3 fair value based on the inputs to the valuation techniques used.
5.2 Original Equity shares of Nirmal Infrastructure Private Ltd. have been kept in Escrow Account and proposed
transaction for disposal of investment is being executed.
5.3 The Board of Directors at its meeting held on 13th August, 2018 has decided to initiate closure of the above
subsidiary by adopting suitable procedure under the Companies Act, 2013 and the rules made thereunder.
During the year, the name of Company struck-off from Registrar of the Company.
5.4 One of the Associate of the Company named Urban Infrastructure Holdings Pvt. Ltd. (UIHPL) conveyed its
extra ordinary general meeting on 2 January 2025 and approved the capital reduction by 99.76% of share
capital ( (i.e. equity shares and fully compulsorily convertible preference shares (“CCPS”) ) proportionately.
which was subject to the NCLT and other requisite regulatory approvals. After obtaining NCLT and other
approvals, UIHPL called the board meeting and fixed the record date 16 April, 2025.
During the year, the Company received ' 37,197.37 Lakh from Urban Infrastructure Holdings Pvt. Ltd.
(UIHPL). Out of ' 37,197.37 Lakh, ' 9,255.95 Lakh towards Dividend income and balance ' 27,941.42 Lakh
towards capital reduction.
5.5 The details of the provision for diminution in the value of non-current investments is as under
33.1 The Government of India has consolidated 29 existing labour legislations into a unified framework comprising
4 labour codes (the New Labour Codes), effective from 21st November, 2025. The Ministry of Labour &
Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to
changes in regulations.
Accordingly, the Company has recognised incremental estimated obligations aggregating to ' 141.33 Lakh
for the current year as “Impact of New Labour Codes” under the Exceptional item, on account of employee
past services, based on actuarial valuation and best estimate in accordance with Ind AS 19- ‘Employee
Benefits’ and consistent with guidance provided by the Institute of Chartered Accountants of India.
Fair value hierarchy
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
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. An explanation of each level follows underneath the table.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments that have quoted price and financial instrumnents like Mutual Funds for which NAV is published by Mutual
Fund Operator. The fair value of all equity instruments which are traded in the stock exchanges is valued using the
closing price as at the reporting period and Mutual Fund are valued using the Closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level. Instruments in level 3 category for the company include unquoted equity shares and FCCDs and unquoted units
of venture capital funds
The carrying amounts of trade receivables, cash and cash equivalents, and other bank balances, current loans,
other current financial assets, current borrowings, trade payables and other financial liabilities are considered to
be approximately equal to the fair value.
The fair values disclosed above are based on discounted cash flows using a current borrowing rate. They are
classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.
Valuation process
The Company evaluates the fair value of financial assets and financial liabilities on periodic basis using the best
and most relevant data available. Also, the Company internally evaluates the valuation process and obtains
independent price validation for certain instruments wherever necessary.
Valuation techniques used to determine fair value and significant estimates and judgements made in:
Significant valuation techniques used to value financial instruments include:
• Investment in units, equity instruments and FCCDs are fair valued using the discounted cash flow method or
market comparison method or cost approach as appropriate.
Valuation inputs for fair values of items in level 3 and their relationships to fair value
Fair valuation of Investments in unquoted equity shares, NCDs and FCCD’s are classified as level 3 in the
fair value hierarchy because of the unobservable inputs / significant adjustments to observable inputs used
to determine the fair value. These investments in form of unquoted equity shares and FCCD’s are mainly
into the real estate sector. The valuation methodologies include discounted cash flow method, comparable
market price method, as appropriate. The significant unobservable inputs / significantly adjusted observable
inputs used in the valuation include prevailing discount rates, market value of land parcels, cost of projects,
expected sales consideration etc. A change upto /- 10% in these inputs will impact the profit before tax by
' (552.50)/552.50 Lakh for the year ended 31st March, 2026 and Other comprehensive income before tax
by ' (10.94)/0.33 Lakh for the year ended 31st March, 2026. The profit for the year would be impacted as
a result of gains / losses on investments classified as at fair value through profit or loss, i.e. NCDs. Other
comprehensive income would be impacted as a result of gain / losses on investments classified as at fair
value through other comprehensive income, i.e. unquoted equity shares and FCCD’s.
37 Financial risk management
The Company is exposed to credit risk, liquidity risk and Market risk.
A Credit risk
Credit risk arises from cash and bank balances, current and non-current loans, trade receivables and
other financial assets measured at amortised cost.
Credit risk management
Credit risk arises from the possibility that counter party may not be able to settle their obligations as
agreed. The company is exposed to credit risk from bank balances, security deposits, investments
measured at amortised cost, trade receivables, Loan to Employees and other current financial assets.
The Company periodically assesses the financial reliability of the counter party, taking into account the
financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts
receivable. Investments at Amortised Cost are strategic investments in associated lines of business
activity, the company closely monitors the performance of these Companies. Bank deposits are placed
with reputed banks / financial institutions. Hence, there is no significant credit risk on such fixed deposits.
Other Deposits as place with Government authorities hence the risk of credit loss is negligible.
Trade Receivable: The Company trades with recognized and credit worthy third parties. It is the Company’s
policy that all customers who wish to trade on credit terms are subject to credit verification procedures.
In addition, receivable balances are monitored on an on-going basis with the result that the Company’s
exposure to bad debts is not significant. Also the company does not enter into sales transaction with
customers having credit loss history. There are no significant credit risks with related parties of the
Company. The Company is exposed to credit risk in the event of non-payment by customers. Also credit
risk in some of cases are mitigated by letter of credit/Advances from the customer.
The history of trade receivables shows a negligible allowance for bad and doubtful debts.
Credit risk arising from loans to employees are mitigated by structuring the repayment of loans.
B Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations
on time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of
financial liabilities - borrowings, trade payables and other financial liabilities.
Liquidity risk management
The company manages its liquidity risk by regularly monitoring its rolling cash flow forecasts. The
company’s operations provide a natural liquidity of receivables against payments due to creditors.
Receipts exceeding the amount of payables to creditors are invested in liquid assets like mutual funds.
Borrowings are managed through credit facilities agreed with the Banks, internal accruals and realisation
of liquid assets. In the event of cash shortfalls, the company approaches the lenders for a suitable term
extension.
Price risk management
The company evaluates the performance of its investments on a periodic basis. Also, the investments
have been placed for a long term objective and any deterioration for a temporary period is not taken into
account while evaluating the performance of its investments. Majority of the investments are placed for
strategic management purposes.
38 Capital Management
38.1 Risk management :-
For the purpose of Company’s capital management, capital includes issued capital, all other equity reserves
and debts. The primary objective of the Company’s capital management is to maximise shareholders value.
The Company manages its capital structure and makes adjustments in the light of changes in economic
environment and the requirements of the financial covenants.
The Company monitors capital using gearing ratio, which is net debt divided by total capital (equity plus net
debt). Net debt are non-current and current debts as reduced by cash and cash equivalents, other bank
balances. Equity comprises all components including other comprehensive income.
40.2.2 The transactions with related parties are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at year-end are unsecured, unless specified and settlement occurs
in cash. This assessment is undertaken each financial year through examining the financial position of
the related party and the market in which the related party operates.
Terms & Conditions:
40.2.3 Outstanding loans and advances are unsecured and repayable on demand.
41.1 Management is of the view that above litigations will not have any material impact on the financial positions
of the Company.
42 Events occurring after the reporting date
Refer to note 38.2 for the dividend recommended by the directors which is subject to the approval of
shareholders in the ensuing annual general meeting.
43 Employee benefits
As per Indian Accounting Standard-19 ‘Employee Benefits’, the disclosure of Employee benefits as defined
in the Accounting Standard are given below:
(a) Defined Benefit Plan :
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of
gratuity payable on retirement/termination is the employees last drawn basic salary per month computed
proportionately for 15 days salary multiplied for the number of years of service. The Fund is managed
by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the
administration of the plan assets and for the definition of the investment strategy. The present value
of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation.
The sensitivity analysis have been determined based on reasonably possible changes of the respective
assumptions occuring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the projected
benefit obligation as it is unlikely that the cange in assumptions would occur in isolation of one another
as some of the assumptions may be correlate.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit
obligation has been calculated using the projected unit credit method at the end of the reporting period,
which is the same method as applied in calculating the projected benefit obligation as recognised in the
balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from
prior years.
These plans typically expose the Company to actuarial risks such as: investment risk, interest risk,
longevity risk and salary risk.
Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate
which is determined by reference to market yields at the end of the reporting period on government bonds.
If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it
has a relatively balanced mix of investments in government securities, and other debt instruments.
Interest risk: A fall in the discount rate which is linked to G.Sec. Rate will increase the present value of
the liability requiting higher provision. A fall in the discount rate generally increases the mark to market
value of the assets depending on the duration of asset.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement
age only, plan does not have any longevity risk.
Salary risk: The present value of the defined plan liability is calculated by reference to the future salaries
of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s
liability.
Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan
is invested in lines of Rule 101 of the Income Tax Rules, 1962, this generally reduces ALM risk.
Concentration Risk: Plan is having a concentration risk as all the asseets are invested with the insurance
company.
(b) Defined Contribution Plan:
The Company also has certain defined contribution plans. Contributions are made to provident fund in
India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to
registered provident fund administered by the government. The obligation of the Company is limited to
the amount contributed and it has no further contractual nor any constructive obligation. The expense
recognised during the period towards defined contribution plan is ' 258.56 Lakh (31st March 2025 -
' 245.67 Lakh).
Note 47
The Board of Directors at its meeting held on 29th June, 2020 has approved discontinuation of the operations
of the Spinning Division of the Company in a phased manner. Management does not envisage any material
financial impact on the Company’s operations due to discontinuation of the Spinning division. The same has been
considered as discontinuing operations, as prescribed under Indian Accounting Standards (Ind As) 105 “Non¬
current Assets Held for Sale and Discontinued Operations”.
(iv) Lease liabilities carry an effective interest rates of 9.50% p.a. The lease term is 3 years.
Note 49 Other Statutory Information
i) As per section 248 of the Companies Act, 2013, there are no transactions with struck off companies.
ii) 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.
iii) 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
iv) The Company does not have any 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.
v) There are no charges or satisfaction thereof which are yet to be registered with ROC beyond the statutory
period.
vi) The Company has not been declared a willful defaulter by any bank or financial institution or other lender (as
defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful
defaulters issued by the Reserve Bank of India.
vii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
viii) The Company has not revalued any of its property, plant and equipment (including Right of Use assets) and
intangible assets during the year.
ix) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the
Companies Act read with the Companies ( Restriction on number of Layers) Rules, 2017.
x) The comapny has used accounting software for maintaining its books of account which has a feature of
recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software, except that audit trail feature is not enabled at the database level in relation to SAP
accounting software. Further no instance of audit trail feature being tampered with was noted in respect of the
accounting software.
Note 50
Previous period figures have been regrouped / rearranged / reclassify wherever necessary to make them
comparable.
|