For the purposes of impairment testing, goodwill is allocated to the Cash Generating Unit (CGU) which represents the lowest level at which the goodwill is monitored for internal management reporting purposes.
The recoverable amount of the cash generating unit was based on its value in use. The value in use of this unit was determined to be higher than the carrying amount and an analysis of the calculation's sensitivity towards change in key assumptions did not identify any probable scenarios where the CGU recoverable amount would fall below their carry amount. Value in use was determined by discounting the future cash flows generated from the continuing use of the CGU. The calculation as at March 31, 2025 and March 31, 2024 was based on the following key assumptions:
i. The anticipated annual revenue growth and margin included in the cash flow projections are based on past experience, actual operating results and the 5-year business plan in all periods presented.
ii. The terminal growth rate ranges from 4% to 5% (March 31,2024: 4% to 5%) representing management view on the future long-term growth rate.
iii. Discount rate 14% (March 31,2024: 14%) for all periods presented was applied in determining the recoverable amount of the CGU. The discount rate was estimated based on past experience and companies weighted average cost of capital.
The values assigned to the key assumptions represent the management's assessment of future trends in the industry and based on both internal and external sources.
(i) During the previous year, the Company had voluntarily closed one of its wholly owned subsidiary (Minda Europe B.V, Netherlands, a non-operative Company) on August 29, 2023.
(ii) Amount in absolute is Rs.100,000 (March 31,2024: Rs 100,000).
(iii) During the year, the Company has invested Rs. 150 million.
(iv) Amount in absolute is Rs. 901 (March 31,2024: Rs. 901).
(v) During the year, the Company has become shareholder of a joint venture company, Minda-HCMF Technologies Private Limited, incorporated on December 16, 2024 in which the Company shall hold 50% stake and remaining shares shall be held by HSIN CHONG Machinery Works Co Ltd.
(vi) Net of provision for impairment amounting to Rs. 250 million (March 31,2024: Rs 250 million).
(vii) During the year, the Company has acquired 49% stake in Flash Electronics (India) Private Limited on January 15, 2025.
(viii) 0.001% Cumulative Redeemable preference shares of Rs.100 each redeemable at par at the expiry of 20 years from the date of issue.
However, the board of the issuer company shall have an option to redeem the same at the expiry of 10 years from the date of allotment.
(ix) During the year, the Company has invested Rs. 22 million.
(x) The Company had subscribed to 0.01% unsecured Compulsorily Convertible Debentures (CCDs) of Rs. 1,000/- each. Each CCD is
compulsorily convertible into 100 equity shares on the completion period ending December 31,2044 ("Mandatory Conversion Date"). However, at any time prior to the mandatory conversion date, the issuer company and the holder of CCDs shall have the right to convert each CCD into 100 equity shares.
The Company has one class of equity shares having a par value of Rs. 2 per share (March 31,2024: Rs. 2 per share). Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
The Company had 240,000 cumulative redeemable preference shares of Rs. 800 each. The shares carry right of fixed preferential dividend at a rate of 0.001%. The holders of these shares do not have the right to vote and are compulsorily redeemable at par on or before the expiry of 20 years from the date of allotment. The dividend on the shares shall be cumulative and any unpaid dividend shall be added to the amount payable as dividend in the following year and no dividend can be paid on equity shares until the entire backlog of unpaid dividends on these shares is cleared. In the event of liquidation, these share holders are entitled to get their capital after satisfaction of dues for secured creditors, but they get preference over equity share capital.
2.17.7 Issue of shares to Minda Corporation Limited Employees' Stock Option Scheme
Pursuant to the Board of Director's approval in Board meeting held on September 29, 2011, the Company has constituted a trust under the name ''Minda Corporation Limited Employee Stock Option Scheme Trust'' (MCL ESOS Trust), with the objective of acquiring and holding of shares, warrants or other securities of the Company for the purpose of implementing the Company's ESOP Scheme. The Company has contributed a sum of Rs. 0.1 million towards initial trust fund and later on advanced a sum of Rs.134 million to fund the purchase of Company's equity shares by Minda Corporation limited - Employee stock option scheme trust. The Company had issued and allotted, 267,092 equity shares of the Face Value Rs. 10 each at the premium of Rs. 490 per equity share to the Minda Corporation limited - Employee stock option scheme trust, as approved in the Extra ordinary general meeting dated October 24, 2011. Further, the Company had issued bonus shares in proportion of one equity share for one share held on March 29, 2012, as decided in Extra ordinary general meeting held on March 16, 2012. During the financial year ended March 31, 2017, the members of the Company had approved 'Employee Stock Option Scheme, 2017' through Postal Ballot on February 10, 2017. The plan envisaged grant of stock options to eligible employees at an exercise price equal to the latest available closing price discounted by 50% or such other percentage as may be decided by the Nomination and Remuneration Committee (refer note 2.41).
2.17.8 During the year ended March 31,2025, the Board of Directors of the Company at its meeting held on March 28, 2025, approved the issuance of 76,50,000 share warrants, each convertible into or exchangeable for one fully paid-up equity share of the Company having a face value of Rs. 2 each, at an issue price of Rs. 550 per warrant to Minda Capital Private Limited, payable in cash. The total amount aggregating to Rs. 4,208 million is proposed to be raised through preferential allotment.
• Capital Reserve
Accumulated capital surplus not available for distribution of dividend.
Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
This represents the unutilised accumulated amount set aside at the time of redemption of preference share. This reserve is utilised in accordance with the provisions of the Companies Act, 2013.
The Company had issued compulsory redeemable preference shares @0.001% (below market rate). The same were recorded at cost under previous GAAP Under Ind AS, the preference shares is treated as compound financial instruments and accordingly, classified as financial liability and equity. The same is recognised at amortized cost and is discounted using market rate. The differential between Fair Value and Book Value is considered as equity portion of compound financial instrument.
The fair value of the equity settled share based payment transactions with employees is recognised in Statement of Profit and Loss with corresponding credit to ESOP outstanding. Further, equity settled share based payment transaction with employees of subsidiary is recognised in investment of subsidiaries with corresponding credit to ESOP outstanding. Corresponding balance of a ESOP outstanding is transferred to general reserve upon expiry of grants or upon exercise of stock options by an employee, as the Company is operating the Employee Stock Option scheme (refer note 2.41).
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.
The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the Equity instruments through Other Comprehensive Income. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.
Remeasurements of defined benefit obligation comprises actuarial gains and losses and return on plan assets.
Represents surplus/(deficit) in statement of Profit and Loss during the year, including retained earnings of Transferor Companies/ Demerged Company on account of merger.
In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity as a defined benefit plan. The gratuity plan provides for a lump sum payment to the employees at the time of separation from the service on completion of vested period of employment i.e. five years or part thereof in excess of six months. The liability of gratuity plan is provided based on actuarial valuation as at the end of each financial year based on which the Company contributes the ascertained liability to Life Insurance Corporation of India by whom the plan assets are maintained.
The estimates of future salary increases considered in the actuarial valuation take into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
The discount rate is estimated based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligation.
The weighted average duration of the defined benefit obligation is years 10.08 years (March 31, 2024: 10.13 years). The Company expects to make a contribution of Rs. 111 million (March 31,2024: Rs. 94 million) to the defined benefit plans during the next financial year.
c) Other benefit - Compensated absences
The Company operates compensated absences plan, where in every employee is entitled to the benefit as per the policy of the Company in this regard. The salary for calculation of earned leave is last drawn salary. The same is payable during the service, early retirement, withdrawal of scheme, resignation by employee and upon death of employee.
The other long- term benefit of compensated absence in respect of employees of the Company as at March 31,2025 amounts to Rs. 227 million (March 31, 2024: Rs. 195 million) and the expense recognised in the statement of profit and loss during the year for the same amounts to Rs. 75 million (March 31,2024: Rs. 76 million) [Gross payment of Rs. 41 million (March 31,2024: Rs. 44 million)].
Contract assets relates to revenue earned by the Company on account of rate difference agreed with the customer or services rendered but invoice not raised. Amount billed during the year Rs. 45 million (March 31,2024: 104 million) and the closing balance represents amount to be billed at the year end.
Contract liabilities relates to amount received from customers as an advance against future sale. Performance obligation satisfied from the amount included in contract liabilities during the current year Rs. 242 million (March 31, 2024: Rs. 218 million). Advance amount received during the year is Rs. 123 million (March 31,2024: Rs. 242 million) is outstanding at the year end.
including claim in respect of transferor companies merged into Minda Corporation Limited, pursuant to scheme of merger, though the litigations may be continuing in the name of transferor companies, however any liability arising in future relating to these disputes will be borne by the Company
Further on account of merger of Companies as mentioned in Corporate information under Note 1 to the financial statement, Minda Corporation Limited had filed one single return for Assessment Year 2019-2020 relevant to financial year 2018-19 onwards and the prepaid/ advance taxes which were seen in Merged Companies have been considered by the Company in Income Tax Return. At the time of processing of income tax return by the authorities, income tax payable had been assessed without giving the credit of prepaid/ advance taxes paid by those merged entities and accordingly demand amounting to Rs. 381 million had been raised. In a similar manner for Assessment Year 2020-21 demand of Rs. 42 million had been raised by the authorities. With respect to both the assessment years the Company had filed rectification to Assessing Officer to allow the credit of prepaid/advance taxes by the merged companies
During the previous year, rectification order had been passed by assessing officer and while passing the order the Assessing officer had considered the Prepaid / advance taxes of the merged companies in the year and refund order had been passed by the Assesing officer.
In relation to income tax matters disclosed in (a) above, majorly includes
1. With respect to assessment year 2012-2013 till assessment year 2018-2019, the income tax authorities have increased the taxable income of the Company by Rs. 479 million on account of transfer pricing adjustments pertaining to disallowance of deduction claimed under section 80IC of Income Tax Act, 1961 and other adjustments. Tax impact of the same is Rs. 209 million against which Company had deposit amounting to Rs. 10 million. The Company had preferred an appeal with Commissioner of Income Tax (Appeals).
During the previous year, the CIT (Appeals) had issued the order in favour of the Company pertaining to the assessment year 2012-2013 till assessment year 2018-2019, except the benefit of deduction under section 80IC of Income Tax Act, 1961 was not given in the assessment year 2016- 2017 till 2018-2019 for which the Company had preferred an appeal with Income Tax Appelleate Tribunal. The total amount of disallowance amounting to Rs. 43 millions and tax impact on the same is Rs. 14 millions. However, during the current year, the company has received a notice under section 148 of the Income Tax Act, 1961 from the Assessing officer who has re-opened the cases which were decided in favour of the company by the CIT(Appeals) from Assessment year 2012-13 till Assessment year 2017-18 in the last year with respect to the relief granted by CIT(Appeals) under section 80-IC of the Income Tax Act, 1961. Based on the discussion with the legal counsel the company is confident of favourable outcome and accordingly no provision has been made in the books of accounts at this stage.
2. During the current year, Penalty Order has been issued u/s 270A relating to Assesment year 2020-21, raising demand of Rs. 2 Million on account of disallowance of education cess as business expenditure and mismatch in Closing Stock against which company has filed an appeal with commissioner of Income Tax (Appeals).
In relation to Sales tax/ VAT /GST disclosed in (b) above, majorly includes
1. Matter pending with Joint Excise & Taxation Commissioner (Appeals) pertaining to financial year 2017-2018 for disallowance of Input Tax Credit (ITC). The Company has done an analysis and is of the opinion that it has a fair chance of favourable decision. The tax amount involved is Rs. 14 million (March 31,2024 : Rs. 14 million).
2. Matter pending with Appellate authority from financial year 2017-18 to financial year 2019-20 on account of excess availment of Input Tax Credit (ITC) in Form GSTR 3B as compared to ITC appearing in Form GSTR 2A. The company has prepared the reconciliation and has sufficient justification to defend the case and is of the opinion that it has fair chances of favourable Decision. The tax amount involved is Rs. 44 million (March 31,2024 : Rs. 44 million)
3. Matter pending with Assistant Commissioner of Central GST, Pune for FY 2017-18 to FY 2021-22 on account of Input Tax Credit (ITC) availment with respect to Block Credit u/s 17(5). Further Tax payment has been made for paymen of GST on foreign manpower services. The Company has done an analysis and is of the opinion that it has a fair chance of favourable decision. The tax amount involved is Rs. 7 million (March 31,2024 : Rs. 10 Million).
4. Matter pending with Appellate authority for FY 2020-21 pertaining to payment of tax under different GST heads. Based on the documents available and legal analysis, the company is of the opinion that this case will be dropped at appellate authority. The tax amount involved is Rs. 4 million (March 31,2024 : Nil).
5. During the year, matter pending with Appellate authority for the financial year 2017-18 pertaining to incorrect reporting of transition credit in the form TRAN-1 has been decided in favour of the company and accordingly demand of Rs. 8 million (March 31,2024) has been quashed by the authority.
2.39B
During the earlier years, one party raised a damage claim against the Company by filing a request with International Chamber of Commerce in Paris. The claim is based on Letter of Comfort ("LOC") signed between party and the Company. At the time of entering into the above mentioned LOC, the Company also obtained indemnity letter from promoter entity, indemnifying the Company against any loss arising from the LOC. The parties have entered into settlement agreement, pursuant to which, a Consent Award has been passed by International Chamber of Commerce, vide which the Company is required to pay Rs. 496 million {(March 31, 2024 Rs. 496 million) (Euro 5.5 million)}. As per Ind AS 37, the Company has accounted for payable against settlement amount under "other financial liabilities" and correspondingly recognised receivable under "other financial assets""
During the year ended March 31,2024, the Party had filed petition before the Hon'ble High Court for the payment of settlement amount and the Hon 'ble court passed an order and asked the company to deposit the settlement amount and accordingly the company had deposited the amount at the year end March 31,2024 which is disclosed under the "Other non-current assets".
Subsequent to the year ended March 31,2025, the amount deposited with the Hon'ble High Court has transferred to the Daimler AG and Minda Capital has returned the amount indemnified and the same has been received in the books of the Company.
2.41 Employee Share-Based Payment Plans
The members of the Company had approved 'Employee Stock Option Scheme, 2017' through Postal Ballot on February 10, 2017. The plan envisaged grant of stock options to eligible employees at an exercise price equal to the latest available closing price discounted by 50% or such other percentage as may be decided by the Nomination and Remuneration Committee.
Under the Plan, upto 5,341,840 stock options can be issued to eligible employees of the Company and its subsidiaries, whether working in India or out of India, including any Director of the Company and its subsidiaries, whether whole time or otherwise excluding the Independent Directors. Under the Plan, each option, upon vesting, shall entitle the holder to acquire one equity share of Rs. 2 each. The options granted will vest gradually over a period not earlier than one year and not later than five years from the date of Grant of such Options. Vesting of Options is a function of achievement of performance criteria or any other criteria, as specified by the Committee and communicated in the grant letter.
2.44 The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the transactions entered into with the associated enterprises during the financial year and expects such records to be in existence latest by due date as required under the law. The management is of the opinion that its transactions with the associated enterprises are at arm's length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.
2.45 As per Ind-AS 108, Operating segments have been defined based on the regular review by the Company's Chief Operating Decision Maker to assess the performance of each segment and to make decision about allocation of resources. The Company's business activities fall within single primary operating segment, viz, manufacturing of Automobile Components and Parts thereof. Accordingly, disclosures under Ind AS 108, Operating Segments are not required to be made.
2.46 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
2.47 During the previous year ended March 31,2024, the Company had sold its entire stake on January 17, 2024, comprising of 19,140,342 equity shares representing 15.7% of the paid-up share capital of Pricol Limited and also trued-up the tax impact of the same. As a result, an amount of Rs. 2,387 million had been considered under OCI for the year ended March 31, 2024, in accordance with Ind AS 109 "Financial Instruments".
2.48 Financial instruments - Fair values and risk management
a. Financial instruments - by category and fair values hierarchy
The following table shows the carrying amounts and fair value of financial assets and financial liabilities, including their levels in the fair value hierarchy.
The fair value of non-current financial assets and financial liabilities are determined by discounting future cash flows using current rates of instruments with similar terms and credit risk. The current rates used do not reflect significant changes from the discount rates used initially. Therefore, the carrying value of these instruments measured at amortised cost approximate their fair value.
There have been no transfers between Level 1, Level 2 and Level 3 for the years ended March 31,2025 and March 31,2024.
Specific valuation techniques used to value non current financial assets and liabilities for whom the fair values have been determined based on present values and the appropriate discount rates of the Company at each balance sheet date. The discount rate is based on the weighted average cost of borrowings of the Company at each balance sheet date.
The Company has an established control framework with respect to the measurements of the fair values. This includes a valuation team that has overall responsibility for overseeing all significant fair value measurements and reports to Senior Management. The valuation team regularly reviews significant unobservable inputs and valuation adjustments.
b. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
- Credit risk ;
- Liquidity risk ; and
- Market risk - Foreign exchange
- Market risk - Interest rate
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The board of directors have authorised senior management to establish the processes, who ensures that executive management controls risks through the mechanism of properly defined framework.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risks limits and controls, to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Company uses derivative financial instruments exclusively for hedging financial risks that arise from its foreign exchange related exposures.
The Company manages its credit risk through credit approvals, establishing credit limits and continuously monitoring credit worthiness of customers to which the Company grants credit terms in the normal course of business.
The Company has used discounted cash flow method (income approach) for equity instrument and compulsorily convertible debentures.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers, loans.
Credit risk on cash and cash equivalents and other bank balances is limited as the Company generally invests in deposits with banks with high credit ratings assigned by domestic credit rating agencies. Credit risk on investments is limited as the Company generally invests in entities after reviewing the liquidity position of the entities.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are unsecured and are derived from revenue earned from customers primarily located in India. The Company does monitor the economic environment in which it operates.
As per Ind AS 109, the Company uses expected credit loss (ECL) model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors such as Company's historical experience for customers.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
The Company believes that its liquidity position, including total cash and cash equivalent and bank balances of Rs 183 million as at March 31,2025 (March 31,2024 Rs. 1,159 million), anticipated future internally generated funds from operations, and its fully available revolving undrawn credit facility will enable it to meet its future known obligations in the ordinary course of business. However, if a liquidity needs were to arise, the Company believes it has access to financing arrangements, value of unencumbered assets, which should enable it to meet its ongoing capital, operating, and other liquidity requirements. The Company will continue to consider various borrowing or leasing options to maximize liquidity and supplement cash requirements as necessary.
The Company has satisfied all debt covenants, except few covenants which were duly regularized by the bank subsequent to the year end, prescribed in the terms of rupee term loans. The other loans do not carry any debt covenant. The Company has not defaulted on any loans payable and term loans were applied for the purpose for which the loans were obtained
The Company has net current liabilities as at Balance sheet date. Considering the projections of future cash flow from operations, and availability of available borrowing limits, the management is confident that the Company shall be able to meet its financial obligations as and when due over the next 12 months and realize its assets in the normal course of business.
The Company's liquidity management process as monitored by management, includes the following:
- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.
- Maintaining rolling forecasts of the Company's liquidity position on the basis of expected cash flows.
b. Financial risk management (continued)
(iii) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuations between the functional currency and other currencies from the Company's operating, investing and financing activities.
A reasonably possible strengthening (weakening) of the Indian Rupee against below currencies at March 31, 2025 (previous year ended as on March 31, 2024) would have affected the measurement of financial instruments denominated in foreign currency and affected equity and profit or loss by the amounts shown below. This analysis is performed on foreign currency denominated monetary financial assets and financial liabilities outstanding as at the year end. This analysis assumes that all other variables, in particular
The following table details the group's sensitivity to a 1% increase and decrease in the Rs. against the relevant foreign currency. The sensitivity analysis includes only outstanding forward exchange contracts as tabulated above and adjusts their translation at the period end for 1% change in foreign currency rates. A positive number below indicates an increase in profit before tax or vice-versa.
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk.
The Company's interest rate risk arises majorly from the term loans from banks carrying floating rate of interest. These obligations exposes the Company to cash flow interest rate risk. The exposure of the Company's borrowing to interest rate changes as reported to the management at the end of the reporting period are as follows:
2.49 Capital management
For the purpose of the Company's capital management, capital includes issued equity share capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the management of the Company's capital structure is to maintain an efficient mix of debt and equity in order to achieve a low cost of capital, while taking into account the desirability of retaining financial flexibility to pursue business opportunities and adequate access to liquidity to mitigate the effect of unforeseen events on cash flows.
The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may return capital to shareholders, raise new debt or issue new shares.
The Company monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debts divided by total capital (equity attributable to owners of the parent plus interest-bearing debts).
2.52 Other statutory information
1. The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
2. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,
3. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
4. The Company has 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
5. The Company has 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,
6. 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
2.53 Quarterly returns submitted with the bank
During the current year ended March 31, 2025 and previous year ended March 31, 2024 , the Company filed statement of current assets with the bank on quarterly basis. There were no discrepancies between the statement filed and the books of accounts. Further, details for the quarter ended shall be submitted to the banker's post finalization of accounts.
2.54 The Company has used two 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 these software, except that audit trail feature is not enabled in one of the accounting software due to technical limitations and for other software audit trail was not enabled at the database level and also for certain changes made using privileged/ administrative access rights in the said software. The Company is in the process of enabling the audit trail feature completely and also planning to migrate the one accounting software where the audit trail feature was not enabled to the other accounting software. Further, there were no instance observed of audit trail feature being tampered with in respect of other accounting software. Additionally, the audit trail has been preserved by the company as per the statutory requirement for record, retention wherever enabled.
2.55 During the year, the Company has reassessed presentation of outstanding employee salaries and wages, which were previously presented under 'Trade payables' within 'Current financial liabilities'. In line with the recent opinion issued by the Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India (ICAI) on the Classification and Presentation of Accrued Wages and Salaries to Employees, the Company has concluded that presenting such amounts under 'Other financial liabilities', within 'Current financial liabilities', results in improved presentation and better reflects the nature of these obligations. Accordingly, amounts aggregating to Rs 263 millions as at March 31,2025 (March 31,2024: Rs 420 million), previously classified under 'Trade payables', have been reclassified under the head 'Other financial liabilities. Both line items form part of the main heading 'Financial liabilities.
The above change does not impact recognition and measurement of items in the financial statements and consequentially, there is no impact on total equity and/ or profit (loss) for the current or any of the earlier periods. Nor there is any material impact on presentation of cash flow statement. Considering the nature of changes, the management believes that it does not have any material impact on the balance sheet at the beginning of the comparative period and, therefore, there is no need for separate presentation of third balance sheet.
2.56 The Company evaluates events and transactions that occur subsequent to the Balance sheet date but prior to the approval of the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in financial statements. There were no subsequent events to be recognised or reported that are not already disclosed elsewhere in these standalone financial statements.