Provisions
A provision is recognised when the Company has apresent obligation (legal or constructive) as a result ofpast events and it is probable that an outflow of resourceswill be required to settle the obligation in respect ofwhich a reliable estimate can be made. Provisions aredetermined based on the best estimate required to settlethe obligation at the balance sheet date and measuredusing the present value of cash flows estimated tosettle the present obligations (when the effect of timevalue of money is material). These are reviewed at eachbalance sheet date and adjusted to reflect the currentbest estimates.
Onerous contracts
I f the Company has a contract that is onerous, thepresent obligation under the contract is recognised andmeasured as a provision. However, before a separateprovision for an onerous contract is established, theCompany recognises any impairment loss that hasoccurred on assets dedicated to that contract.
An onerous contract is a contract under which theunavoidable costs (i.e., the costs that the Companycannot avoid because it has the contract) of meetingthe obligations under the contract exceed the economicbenefits expected to be received under it. Theunavoidable costs under a contract reflect the least netcost of exiting from the contract, which is the lower ofthe cost of fulfilling it and any compensation or penaltiesarising from failure to fulfil it.
Contingent liabilities
A contingent liability is a possible obligation that arisesfrom past events and the existence of which will beconfirmed only by the occurrence or non-occurrence ofone or more uncertain future events not wholly withinthe control of the enterprise. Contingent liabilitiesare disclosed by way of note to the standalone Ind ASfinancial statements.
Contingent Assets
A contingent asset is a possible asset that arises frompast events the existence of which will be confirmed onlyby the occurrence or non-occurrence of one or moreuncertain future events not wholly within the control ofthe enterprise.
Contingent assets are neither recognised nor disclosedin the standalone Ind AS financial statements.
A financial instrument is any contract that gives rise toa financial asset of one entity and a financial liability orequity instrument of another entity.
(a) Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition,as subsequently measured at amortised cost, fairvalue through other comprehensive income (OCI),and fair value through profit or loss.
I n order for a financial asset to be classified andmeasured at amortised cost or fair value throughOCI, it needs to give rise to cash flows that are'solely payments of principal and interest (SPPI)' onthe principal amount outstanding. This assessmentis referred to as the SPPI test and is performedat an instrument level. Financial assets with cashflows that are not SPPI are classified and measuredat fair value through profit or loss, irrespective ofthe business model.
All financial assets are recognised initially at fairvalue plus, in the case of financial assets not recordedat fair value through profit or loss, transactioncosts that are attributable to the acquisition ofthe financial asset. Transaction costs of financialassets carried at fair value through profit or lossare expensed in the Statement of Profit and Loss.Purchases or sales of financial assets that requiredelivery of assets within a time frame establishedby regulation or convention in the marketplace(regular way trades) are recognised on the tradedate, i.e., the date that the Company commits topurchase or sell the asset. Trade receivables thatdo not contain a significant financing componentare measured transaction price.
Subsequent measurement
Subsequent measurement of financial assetsdepends on the Company's business modelfor managing the asset and the cash flowcharacteristics of the asset. For the purposes of
subsequent measurement, financial assets areclassified in four categories:
• Financial assets at amortised cost (debtinstruments)
• Financial assets at fair value through othercomprehensive income (FVTOCI) withrecycling of cumulative gains and losses (debtinstruments)
• Financial assets designated at fair valuethrough OCI with no recycling of cumulativegains and losses upon derecognition (equityinstruments); and
• Financial assets at fair value through profitor loss
Financial assets at amortised cost (debtinstruments)
A 'financial asset' is measured at the amortisedcost if both the following conditions are met:
a) The asset is held within a business modelwhose objective is to hold assets for collectingcontractual cash flows, and
b) Contractual terms of the asset give rise onspecified dates to cash flows that are solelypayments of principal and interest (SPPI) onthe principal amount outstanding.
After initial measurement, such financial assetsare subsequently measured at amortised costusing the effective interest rate (EIR) method.Amortised cost is calculated by taking into accountany discount or premium on acquisition and fees orcosts that are an integral part of the EIR. The EIRamortisation is included in finance income in theStatement of Profit and Loss. The losses arisingfrom impairment are recognised in the Statementof Profit and Loss.
Interest Income
For all debt instruments measured either atamortised cost or at fair value through othercomprehensive income, interest income isrecorded using the effective interest rate (EIR).EIR is the rate that exactly discounts the estimatedfuture cash payments or receipts over the expectedlife of the financial instrument or a shorter period,where appropriate, to the gross carrying amountof the financial asset or to the amortised cost ofa financial liability. When calculating the effectiveinterest rate, the Company estimates the expectedcash flows by considering all the contractualterms of the financial instrument (for example,
prepayment, extension, call and similar options)but does not consider the expected credit losses.Interest income is included in finance income in theStatement of Profit and Loss.
Financial assets at FVTOCI (debt instrument)
A 'financial asset' is classified as at the FVTOCI ifboth of the following criteria are met:
a) The objective of the business model is achievedboth by collecting contractual cash flows andselling the financial assets, and
b) The asset's contractual cash flowsrepresent SPPI.
Debt instruments included within the FVTOCIcategory are measured initially as well as at eachreporting date at fair value. Fair value movementsare recognised in the other comprehensive income(OCI). However, the Company recognises interestincome, impairment losses and reversals andforeign exchange gain or loss in the Statementof Profit and Loss. On derecognition of the asset,cumulative gain or loss previously recognised inOCI is reclassified from the equity to the Statementof Profit and Loss. Interest earned whilst holdingFVTOCI debt instrument is reported as interestincome using the EIR method.
Financial assets designated at fair valuethrough OCI (equity instruments)
I n the case of equity instruments which are notheld for trading and where the Company has takenirrevocable election to present the subsequentchanges in fair value in other comprehensiveincome, these elected investments are initiallymeasured at fair value plus transaction costs andsubsequently, they are measured at fair value withgains and losses arising from changes in fair valuerecognised in other comprehensive income andaccumulated in the 'Equity instruments throughother comprehensive income' under the head'Other Equity'. The cumulative gain or loss is notreclassified to profit or loss on disposal of theinvestments. The Company makes such electionon an instrument -by-instrument basis.
I f the Company decides to classify an equityinstrument as at FVTOCI, then all fair valuechanges on the instrument, excluding dividends,are recognised in OCI. There is no recycling of theamounts from OCI to the Statement of Profit andLoss, even on sale of investment. However, theCompany may transfer the cumulative gain or losswithin equity.
A financial asset is held for trading if:
• it has been acquired principally for the purposeof selling it in the near term; or
• on initial recognition it is part of a portfolioof identified financial instruments that theCompany manages together and has a recentactual pattern of short-term profit-taking; or
• it is a derivative that is not designated andeffective as a hedging instrument or afinancial guarantee.
Gains and losses on these financial assets arenever recycled to the Statement of Profit andLoss. Dividends are recognised as other incomein the Statement of Profit and Loss when the rightof payment has been established, except whenthe Company benefits from such proceeds as arecovery of part of the cost of the financial asset, inwhich case, such gains are recorded in OCI. Equityinstruments designated at fair value through OCIare not subject to impairment assessment.
Financial assets at FVTPL (equityinstruments)
Financial assets at fair value through profit orloss are carried in the Balance Sheet at fair valuewith net changes in fair value recognised in theStatement of Profit and Loss.
I n case of equity instruments which are held fortrading are initially measured at fair value plustransaction costs and subsequently, they aremeasured at fair value with gains and lossesarising from changes in fair value recognised inthe Statement of Profit and Loss.
This category includes derivative instruments andlisted equity investments which the Company hadnot irrevocably elected to classify at fair valuethrough OCI. Dividends on listed equity investmentsare recognised in the Statement of Profit and Losswhen the right of payment has been established.
Investment in Subsidiaries and Associates
I nvestment in Subsidiaries is carried at deemedcost in the standalone financial statements.
Derecognition
A financial asset (or, where applicable, a part of afinancial asset or part of a group of similar financialassets) is primarily derecognised when:
• The rights to receive cash flows from the assethave expired, or
• The Company has transferred its rights to receivecash flows from the asset or has assumed anobligation to pay the received cash flows in fullwithout material delay to a third party undera 'pass-through' arrangement; and either (a)the Company has transferred substantially allthe risks and rewards of the asset, or (b) theCompany has neither transferred nor retainedsubstantially all the risks and rewards of theasset, but has transferred control of the asset.
Impairment of financial assets
The Company applies the expected credit loss modelfor recognising impairment loss on financial assetsmeasured at amortised cost, debt instruments atFVTOCI and other contractual rights to receive cashor other financial asset.
Expected credit losses are the weighted averageof credit losses with the respective risks ofdefault occurring as the weights. Credit loss is thedifference between all contractual cash flows thatare due to the Company in accordance with thecontract and all the cash flows that the Companyexpects to receive (i.e. all cash shortfalls),discounted at the original effective interest rate(or credit-adjusted effective interest rate forpurchased or originated credit-impaired financialassets). The Company estimates cash flows byconsidering all contractual terms of the financialinstrument (for example, prepayment, extension,call and similar options) through the expected lifeof that financial instrument.
The Company measures the loss allowance fora financial instrument at an amount equal to thelifetime expected credit losses if the credit risk onthat financial instrument has increased significantlysince initial recognition. If the credit risk on afinancial instrument has not increased significantlysince initial recognition, the Company measures theloss allowance for that financial instrument at anamount equal to 12-month expected credit losses.12-month expected credit losses are portion of thelife-time expected credit losses and represent thelifetime cash shortfalls that will result if defaultoccurs within the 12 months after the reportingdate and thus, are not cash shortfalls that arepredicted over the next 12 months.
For trade receivables, the Company follows"simplified approach for recognition of impairmentloss. The application of simplified approach doesnot require the Company to track changes incredit risk.
Further, for the purpose of measuring lifetimeexpected credit loss allowance for tradereceivables, the Company has used a practicalexpedient as permitted under Ind AS 109. Thisexpected credit loss allowance is computed basedon a provision matrix which takes into accounthistorical credit loss experience and adjusted forforward-looking information.
(b) Financial liabilities
Financial liabilities are classified, at initialrecognition, as financial liabilities at fair valuethrough profit or loss, loans and borrowings,payables, or as derivatives as hedging instrumentsin an effective hedge, as appropriate. All financialliabilities are recognised initially at fair value and,in the case of loans and borrowings and payables,net of directly attributable transaction costs. TheCompany's financial liabilities include trade andother payables, loans and borrowings includingderivative financial instruments.
The measurement of financial liabilities depends ontheir classification, as described below:
Financial liabilities at fair value throughprofit or loss
Financial liabilities at fair value through profit orloss (FVTPL) include financial liabilities held fortrading and financial liabilities designated uponinitial recognition as at FVTPL. Financial liabilitiesare classified as held for trading if they are incurredfor the purpose of repurchasing in the near term.This category also includes derivative financialinstruments entered into by the Company that arenot designated as hedging instruments in hedgerelationships as defined by Ind AS 109 'Financialinstruments'.
Gains or losses on liabilities held for trading arerecognised in the Statement of Profit and Loss.
Financial liabilities at amortised cost
After initial recognition, financial liabilities aresubsequently measured at amortised cost usingthe EIR method. Gains and losses are recognisedin the Statement of Profit and Loss when theliabilities are derecognised as well as throughthe EIR amortisation process. Amortised cost iscalculated by taking into account any discount orpremium on acquisition and fees or costs that arean integral part of the EIR. The EIR amortisation is
included as finance costs in the Statement of Profitand Loss.
A financial liability is derecognised when theobligation under the liability is discharged orcancelled or expires. When an existing financialliability is replaced by another financial liability fromthe same lender on substantially different terms, orthe terms of an existing liability are substantiallymodified, such an exchange or modification istreated as the derecognition of the original liabilityand the recognition of a new liability. The differencein the respective carrying amounts is recognised inthe Statement of Profit and Loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offsetand the net amount is reported in the BalanceSheet if there is a currently enforceable legal rightto offset the recognised amounts and there is anintention to settle on a net basis, to realise theassets and settle the liabilities simultaneously.
Basic earnings per share are calculated by dividingthe net profit or loss for the year attributable to equityshareholders by the weighted average number of equityshares outstanding during the year.
For calculating diluted earnings per share, the net profitor loss for the year attributable to equity shareholdersand the weighted average number of shares outstandingduring the year are adjusted for the effects of all dilutivepotential equity shares.
Treasury shares are reduced while computing basic anddiluted earnings per share.
The Company presents assets and liabilities inthe balance sheet based on current/ non-currentclassification. An asset is treated as current when it is:
• Expected to be realised or intended to be sold orconsumed in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realised within twelve months afterthe reporting period, or
• Cash or cash equivalent unless restricted from beingexchanged or used to settle a liability for at leasttwelve months after the reporting period
All other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in normal operating cycle
• It is held primarily for the purpose of trading
• It is due to be settled within twelve months after thereporting period, or
• There is no unconditional right to defer the settlementof the liability for at least twelve months after thereporting period
The terms of the liability that could, at the option of thecounterparty, result in its settlement by the issue ofequity instruments do not affect its classification.
The Company classifies all other liabilities as non¬current.
Deferred tax assets and liabilities are classified as non¬current assets and liabilities.
Based on the nature of products/activities of theCompany and the normal time between acquisition ofassets and their realisation in cash or cash equivalents,the Company has determined its operating cycle as 12months for the purpose of classification of its assets andliabilities as current and non-current.
Derivative financial instruments and hedgeaccounting
The Company uses derivative financial instrumentssuch as foreign currency forward contracts and optioncurrency contracts to hedge its foreign currency risksarising from highly probable forecast transactions. Thecounterparty for these contracts is generally a bank.
Derivatives not designated as hedginginstruments
This category has derivative assets or liabilities whichare not designated as hedges.
Although the Company believes that these derivativesconstitute hedges from an economic perspective, theymay not qualify for hedge accounting under Ind AS 109.Any derivative that is either not designated a hedge, or isso designated but is ineffective, is recognised on BalanceSheet and measured initially at fair value. Subsequent toinitial recognition, derivatives are re-measured at fairvalue, with changes in fair value being recognised in theStatement of Profit and Loss. Derivatives are carried asfinancial assets when the fair value is positive and asfinancial liabilities when the fair value is negative.
Hedge Accounting
The derivatives that are designated as hedging instrumentunder Ind AS 109 to mitigate risk arising out of foreigncurrency transactions are accounted for as cash flowhedges. The Company enters into hedging instrumentsin accordance with policies as approved by the Board ofDirectors with written principles which is consistent withthe risk management strategy of the Company.
The hedge instruments are designated and documentedas hedges at the inception of the contract. Theeffectiveness of hedge instruments is assessed andmeasured at inception and on an ongoing basis.
When a derivative is designated as a cash flow hedginginstrument, the effective portion of changes in the fairvalue of the derivative is recognised in OCI, e.g., cashflow hedging reserve and accumulated in the cash flowhedging reserve. Any ineffective portion of changes inthe fair value of the derivative is recognised immediatelyin the Statement of Profit and Loss. The amountaccumulated is retained in cash flow hedge reserve andreclassified to profit or loss in the same period or periodsduring which the hedged item affects the Statement ofProfit and Loss. Under fair value hedge, the change inthe fair value of a hedging instrument is recognised inthe Statement of Profit and Loss. The change in the fairvalue of the hedged item attributable to the risk hedgedis recorded as part of the carrying value of the hedgeditem and is also recognised in the Statement of Profitand Loss.
If the hedging instrument no longer meets the criteria forhedge accounting, then hedge accounting is discontinuedprospectively. If the hedging instrument is terminatedor exercised prior to its maturity/ contractual term,the cumulative gain or loss on the hedging instrumentrecognised in cash flow hedging reserve till the periodthe hedge was effective remains in cash flow hedgingreserve until the forecasted transaction occurs. Thecumulative gain or loss previously recognised in the cashflow hedging reserve is reclassified to the Statementof Profit and Loss upon the occurrence of the relatedforecasted transaction. If the forecasted transaction is nolonger expected to occur, then the amount accumulatedin cash flow hedging reserve is reclassified immediatelyin the Statement of Profit and Loss.
The Company measures financial instruments, such as,derivatives at fair value at each reporting date. Fair valueis the price that would be received to sell an asset or paidto transfer a liability in an orderly transaction betweenmarket participants at the measurement date. The fairvalue measurement is based on the presumption that
the transaction to sell the asset or transfer the liabilitytakes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the mostadvantageous market for the asset or liability
The principal or the most advantageous market must beaccessible by the Company.
The fair value of an asset or a liability is measured usingthe assumptions that market participants would usewhen pricing the asset or liability, assuming that marketparticipants act in their economic best interest.
A fair value measurement of a non-financial asset takesinto account a market participant's ability to generateeconomic benefits by using the asset in its highest andbest use or by selling it to another market participantthat would use the asset in its highest and best use.
The Company uses valuation techniques that areappropriate in the circumstances and for which sufficientdata are available to measure fair value, maximising theuse of relevant observable inputs and minimising the useof unobservable inputs.
All assets and liabilities for which fair value is measuredor disclosed in the standalone Ind AS financial statementsare categorised within the fair value hierarchy, describedas follows, based on the lowest level input that issignificant to the fair value measurement as a whole:
• Level 1- Quoted (unadjusted) market prices in activemarkets for identical assets or liabilities
• Level 2-Valuation techniques for which the lowest levelinput that is significant to the fair value measurementis directly or indirectly observable
• Level 3-Valuation techniques for which the lowest levelinput that is significant to the fair value measurementis unobservable
For assets and liabilities that are recognised in thestandalone Ind AS financial statements on a recurringbasis, the Company determines whether transfershave occurred between levels in the hierarchy by re¬assessing categorisation (based on the lowest level inputthat is significant to the fair value measurement as awhole) at the end of each reporting period.
The Company's management determines the policies andprocedures for both recurring fair value measurement,such as derivative instruments and unquoted financialassets measured at fair value, and for non-recurringmeasurement, such as assets held for disposal indiscontinued operation.
External valuers are involved for valuation of significantassets, such as properties and unquoted financialassets, and significant liabilities, such as contingentconsideration, if any.
At each reporting date, the management analyses themovements in the values of assets and liabilities whichare required to be re-measured or re-assessed as perthe Company's accounting policies. For this analysis,the management verifies the major inputs appliedin the latest valuation by agreeing the informationin the valuation computation to contracts and otherrelevant documents.
The management, in conjunction with the Company'sexternal valuers, also compares the change in the fairvalue of each asset and liability with relevant externalsources to determine whether the change is reasonable.
For the purpose of fair value disclosures, the Companyhas determined classes of assets and liabilities on thebasis of the nature, characteristics and risks of the assetor liability and the level of the fair value hierarchy asexplained above.
This note summarises accounting policy for fair value.Other fair value related disclosures are given in therelevant notes.
Cash and cash equivalents in the Balance Sheet comprisecash at banks and on hand and short term depositswith an original maturity of three months or less, thatare readily convertible to a known amount of cash andsubject to an insignificant risk of change in value.
The Company recognises a liability to pay dividend toequity holders of the Company when the distributionis authorised and the distribution is no longer at thediscretion of the Company. As per the corporate lawsin India a distribution is authorised when it is approvedby the shareholders, However, Board of Directors ofa company may declare interim dividend during anyfinancial year out of the surplus in the Statement of Profitand Loss and out of the profits of the financial year inwhich such interim dividend is sought to be declared. Acorresponding amount is recognised directly in equity.
The Company's functional and reporting currency is INR.Exchange differences are dealt with as follows:
Foreign currency transactions are recorded at theexchange rate that approximates the actual rate at thedate of transaction. Monetary items denominated in aforeign currency are reported at the closing rate as at
the date of balance sheet. Non-monetary items, whichare carried at fair value denominated in foreign currency,are reported at the exchange rate that existed whensuch values were determined, otherwise on historicalexchange rate that existed on the date of transaction.
The exchange difference arising on the settlement ofmonetary items or on reporting these items at ratesdifferent from the rates at which these were initiallyrecorded/reported in previous financial statements arerecognised as income/expense in the period in whichthey arise. Further, where foreign currency liabilitieshave been incurred in connection with property, plantand equipment, the exchange differences arisingon reinstatement, settlement thereof during theconstruction period are adjusted in the cost of theconcerned property, plant and equipment to the extentof exchange differences arising from foreign currencyborrowings are regarded as an adjustment to interestcosts in accordance of para 6 (e) as per Ind AS 23.
The Company has created an Employee BenefitTrust (EBT) for providing share-based payment to itsemployees. The Company uses EBT as a vehicle fordistributing shares to employees under the EmployeeStock Purchase Scheme 2020. The EBT buys sharesof the Company from the market, for giving shares toemployees. The Company treats EBT as its extensionand shares held by EBT are treated as treasury shares.
Own equity instruments that are reacquired (treasuryshares) are recognised at cost and deducted fromother equity. No gain or loss is recognised in profit orloss on the purchase, sale, issue or cancellation of theCompany's own equity instruments. Treasury sharesare reduced while computing basic and diluted earningsper share.
The Company transfers the excess of exercise price overthe cost of acquisition of treasury shares, net of tax, byEBT to General Reserve. In the event of sale in openmarket, the company transfers the excess of sale priceover cost of acquisition of treasury shares, net of tax, toOther Equity.
Employees (including senior executives) of the Companyreceive remuneration in the form of share-basedpayments, whereby employees render services asconsideration for equity instruments (equity-settledtransactions).
The cost of equity-settled transactions is determined bythe fair value at the date when the grant is made using an
appropriate valuation model. Further details are given inNote 42.
That cost is recognised, together with a correspondingincrease in share-based payment (SBP) reserves inequity, over the period in which the performance and/or service conditions are fulfilled in employee benefitsexpense. The cumulative expense recognised for equity-settled transactions at each reporting date until thevesting date reflects the extent to which the vestingperiod has expired and the Company's best estimateof the number of equity instruments that will ultimatelyvest. The expense or credit in the Statement of Profit andLoss for a period represents the movement in cumulativeexpense recognised as at the beginning and end of thatperiod and is recognised in employee benefits expense.
Service and non-market performance conditions arenot taken into account when determining the grant datefair value of awards, but the likelihood of the conditionsbeing met is assessed as part of the Company's bestestimate of the number of equity instruments thatwill ultimately vest. Market performance conditionsare reflected within the grant date fair value. Anyother conditions attached to an award, but without anassociated service requirement, are considered to benon-vesting conditions. Non-vesting conditions arereflected in the fair value of an award and lead to animmediate expensing of an award unless there are alsoservice and/or performance conditions.
No expense is recognised for awards that do not ultimatelyvest because non-market performance and/or serviceconditions have not been met. Where awards include amarket or non-vesting condition, the transactions aretreated as vested irrespective of whether the market ornon-vesting condition is satisfied, provided that all otherperformance and/or service conditions are satisfied.
When the terms of an equity-settled award are modified,the minimum expense recognised is the grant date fairvalue of the unmodified award, provided the originalvesting terms of the award are met. An additionalexpense, measured as at the date of modification, isrecognised for any modification that increases the totalfair value of the share-based payment transaction,or is otherwise beneficial to the employee. Where anaward is cancelled by the entity or by the counterparty,any remaining element of the fair value of the award isexpensed immediately through profit or loss.
The Company considers climate-related matters inestimates and assumptions, where appropriate. Thisassessment includes a wide range of possible impactson the Company due to both physical and transition
risks. Even though the Company believes its businessmodel and products will still be viable after the transitionto a low-carbon economy, climate-related mattersincrease the uncertainty in estimates and assumptionsunderpinning several items in the financial statements.Even though climate-related risks might not currentlyhave a significant impact on measurement, theCompany is closely monitoring relevant changes anddevelopments, such as new climate-related legislation.
In the application of the Company's accounting policies, themanagement of the Company is required to make judgements,estimates and assumptions about the carrying amountsof assets and liabilities that are not readily apparent fromother sources. The estimates and associated assumptionsare based on historical experience and other factors thatare considered to be relevant. Actual results may differ fromthese estimates.
The estimates and underlying assumptions are reviewedon an ongoing basis. Revisions to accounting estimates arerecognised in the period in which the estimate is revised ifthe revision affects only that period or in the period of therevision and future periods if the revision affects both currentand future periods.
The following are the areas of estimation uncertainty andcritical judgements that the management has made in theprocess of applying the Company's accounting policiesand that have the most significant effect on the amountsrecognised in the standalone Ind AS financial statements: -
Management reviews the useful lives of depreciable assetsat each reporting date. As at March 31, 2025 managementassessed that the useful lives represent the expected utilityof the assets to the Company. Further, there is no significantchange in the useful lives as compared to previous year.
The intangible assets are amortised over the estimateduseful life. The estimated useful life and amortisation methodare reviewed at the end of each reporting period, with theeffect of any changes in estimate being accounted for on aprospective basis.
The cost of the defined benefit plan and other post¬employment benefits and the present value of such obligationare determined using actuarial valuations. An actuarialvaluation involves making various assumptions that may differfrom actual developments in the future. These include thedetermination of the discount rate, future salary increases,
mortality rates and future pension increases. Due to thecomplexities involved in the valuation and its long-termnature, a defined benefit obligation is highly sensitive tochanges in these assumptions. All assumptions are reviewedat each reporting date.
Fair value of the Company's land as at April 1, 2015 hasbeen arrived at on the basis of a valuation carried out as onthe respective date by an independent valuer not related tothe Company. The fair value was derived using the marketcomparable approach based on recent market prices withoutany significant adjustments being made to the marketobservable data. In estimating the fair value of the properties,the highest and best use of the properties is their current use.
Impairment exists when the carrying value of an asset or cashgenerating unit exceeds its recoverable amount, which is thehigher of its fair value less costs of disposal and its value inuse. The fair value less costs of disposal calculation is basedon available data from binding sales transactions, conductedat arm's length, for similar assets or observable marketprices less incremental costs for disposing of the asset. Thevalue in use calculation is based on a DCF model. The cashflows are derived from the budget for determined period anddo not include restructuring activities that the Company is notyet committed to or significant future investments that willenhance the asset's performance of the CGU being tested.The recoverable amount is sensitive to the discount rateused for the DCF model as well as the expected future cash-inflows, the growth rate used for extrapolation purposesand the impact of general economic environment (includingcompetitors).
The Company cannot readily determine the interest rateimplicit in the lease, therefore, it uses its incrementalborrowing rate (IBR) to measure lease liabilities. The IBRis the rate of interest that the Company would have to payto borrow over a similar term, and with a similar security,the funds necessary to obtain an asset of a similar value tothe right-of-use asset in a similar economic environment.The IBR therefore reflects what the Company 'would haveto pay', which requires estimation when no observable ratesare available or when they need to be adjusted to reflect theterms and conditions of the lease. The Company estimates theIBR using observable inputs (such as market interest rates)when available.
In case of lease contracts with related parties, there existeconomic incentive for the Company to continue using theleased premises for a period longer than the 11 months.The period of expected lease in these cases is a matter ofestimation by the management. The estimate of lease periodimpacts the recognition of ROU asset, lease liability and itsimpact in the Statement of Profit and Loss. The lease terms inthe arrangements with related parties have been determinedconsidering the period for which management has aneconomic incentive to use the leased asset (i.e. reasonablycertain to use the asset for the said period of economicincentive). Such assessment of incremental period is basedon management assessment of various factors including theremaining useful life of the asset as on the date of transition.The management has assessed period of arrangements withrelated parties as higher of lease period mentioned in theagreement or 10 years as at April 01, 2019.
The Company determines the lease term as the non¬cancellable term of the lease, together with any periodscovered by an option to extend the lease if it is reasonablycertain to be exercised, or any periods covered by an optionto terminate the lease, if it is reasonably certain not tobe exercised.
The Company has several lease contracts that includeextension and termination options. The Company appliesjudgement in evaluating whether it is reasonably certainwhether or not to exercise the option to renew or terminatethe lease. That is, it considers all relevant factors that createan economic incentive for it to exercise either the renewalor termination. After the commencement date, the Companyreassesses the lease term if there is a significant event orchange in circumstances that is within its control and affectsits ability to exercise or not to exercise the option to renew orto terminate.
At each reporting date, the management applies judgementin determining the appropriate valuation of raw materialsinventories(primarily for cotton), based on the consumptionanalysis of raw materials inventories, current markettrend and future expectation of consumption for these rawmaterials inventories. These judgements are reviewed andadjusted regularly in the light of market driven changes, pastexperience and internally generated information.
The Company has a defined gratuity plan (funded) and the gratuity plan is governed by The Payment of Gratuity Act 1972("Act"). Under the Act, employees who have completed five years of service are entitled for gratuity benefit of 15 days salaryfor each completed year of service or part thereof in excess of six months. The amount of benefit depends on respectiveemployee's salary, the years of employment and retirement age of the employee and the gratuity benefit is payable ontermination/retirement of the employee. There is no maximum limit for the payment of gratuity benefit. The present valueof obligation is determined based on an actuarial valuation as at the reporting date using the Projected Unit Credit Method.
The fund has the form of an irrevocable trust and it is governed by Board of Trustees. The Board of trustees is responsiblefor the administration of the plan assets and for the definition of investment strategy. The scheme is funded with qualifyinginsurance policies. The Company is contributing to trust towards the payment of premium of such gratuity schemes.
The following table sets out the details of defined benefit plan and the amounts recognised in the standalone Ind ASfinancial statements:
a. Product and Services from which reportable segment derive their revenues (Primary BusinessSegments)
Based on the nature and class of product and services, their customers and assessment of differential risks andreturns and financial reporting results reviewed by Chief Operating Decision Maker (CODM), the Company hasidentified the following business segments which comprises of.
• Yarn
• Towel
• Bedsheets
• Paper and Chemicals
b. Geographical segments (secondary business segments)
The geographical segments considered and reviewed by Chief Operating Decision Maker for disclosure are based onmarkets, broadly as under:
India
USA
Rest of the world
c. Segment accounting policies
Segment accounting policies: In addition to the significant accounting policies applicable to the business segment asset out in note 2, the accounting policies in relation to segment accounting are as under:
i. Segment assets and liabilities:
Segment assets include all operating assets used by a segment and consist principally of cash, debtors,inventories, right of use assets and property, plant and equipment including capital work in progress, net ofallowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities includeall operating liabilities and consist principally of creditors and accrued liabilities.
ii Segment revenue and expenses:
Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segmentrevenue and expenses are directly attributable to the segments.
iii Inter segment sales:
I nter segment sales are accounted for at cost plus appropriate margin (transfer price) and are eliminatedin consolidation.
iv Segment results:
Segment results represent the profit before tax earned by each segment without allocation of central administrationcosts, other non operating income as well as finance costs. Operating profit amounts are evaluated regularly bythe Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance.
The Board of Directors and the Shareholders of the Company had approved a Scheme called as "Trident Limited Employee StockOptions Scheme - 2020 (" ESOS Scheme") and "Trident Limited Employee Stock Purchase Scheme - 2020" (" ESPS Scheme") intheir meeting held on July 9, 2020 and May 16, 2020 respectively. Pursuant to the ESOS Scheme, the Company has constitutedTrident Limited Employees Welfare Trust ('Trust') to acquire, hold and allocate/transfer equity shares of the Company to eligibleemployees (as defined in the ESOS and ESPS scheme) from time to time on the terms and conditions specified under the ESOSScheme and ESPS Scheme.
The said trust had purchased, during the FY 2020-21, Company's equity shares aggregated to 100,000,000 equity shares fromthe secondary open market at cost of Rs. 7.50 per share for which the Company had given loan to trust amounting to Rs. 751.0Million. The financial statements of the Trust have been included in the standalone Ind AS financial statements of the Companyin accordance with the requirements of Ind AS and cost of such treasury shares has been presented as a deduction in otherequity. Such number of equity shares (which are lying with trust) have been reduced while computing basic and diluted earningsper share.
The Company had granted 66,00,000 stock options under the ESOS Scheme on November 12, 2022. Each option granted andvested under the Scheme shall entitle to the holder to acquire 1 equity share of Re. 1 each.
In respect of options granted under the Employees' Stock Option Scheme, 2020, the details of options outstanding are as under:
For the purpose of Company's capital management, capital includes issued equity capital and all reserves attributable to equityholders of the Company.
The Company's capital management objectives are:
- to ensure the Company's ability to continue as a going concern
- to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
The Company manages capital risk in order to maximise shareholders' profit by maintaining sound/optimal capital structurethrough monitoring of financial ratios, such as net debt-to-equity ratio on a monthly basis and implements capital structureimprovement plan when necessary. There is no change in the overall capital risk management strategy of the Companycompared to last year.
* Investment in note 4 (a) represents investments in equity shares of subsidiaries and associate which are carried at cost and hence are not requiredto be disclosed as per Ind AS 107 "Financial Instruments Disclosures". Hence, the same have been excluded from the above table.
The management assessed that fair value of trade receivables, cash and cash equivalents, other bank balances, othercurrent financial assets (except derivative financial assets), short term borrowings, trade payables and other current financialliabilities (except derivative financial liabilities) approximate their carrying amounts largely due to short-term maturities ofthese instruments.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in acurrent transaction between willing parties, other than in a forced or liquidation sale.
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fairvalue, grouped into Level 1 to Level 3, as described below:
Level 1: 'Quoted prices in an active market: This level of hierarchy includes financial instruments that are measured by referenceto quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: 'Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly orindirectly observable. This level of hierarchy include Company's over-the-counter (OTC) derivative contracts and mutual funds.
Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, lease liabilities, tradeand other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company'sprincipal financial assets include trade and other receivables, receivables from government authorities, security depositsand cash and cash equivalents that derive directly from its operations. The Company also holds investments and entersin to derivative transactions.
The Company's corporate treasury function provides services to the business, co-ordinates access to domestic andinternational financial markets, monitors and manages the financial risks relating to the operations of the Companythrough internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk(including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge riskexposures. The Company does not enter into or trade financial instruments, including derivative financial instruments,for speculative purposes.
The Chief financial officer reports quarterly to the Board of Directors of the Company for monitoring risks and reviewingpolicies implemented to mitigate risk exposures.
Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to theCompany. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficientcollateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company has alsotaken export credit insurance for mitigation of export credit risk for certain parties.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 2,995.0Million and Rs. 4,137.2 Million as of March 31, 2025 and March 31, 2024, respectively. Trade receivables consist of a largenumber of customers, spread across diverse industries and geographical areas. Credit risk has always been managedby the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthinessof customers to which the Company grants credit terms in the normal course of business and by way of taking letter ofcredit, credit insurance against export receivables.
lij uivfuiunj i ur\ iiiaiiavjcinciii
The Company's objective is to maintain optimum levels of liquidity to meet its cash and collatall times.
The Chief Financial Officer of the Company is responsible for liquidity risk management aestablished an appropriate liquidity risk management framework for the management of tmedium and long-term funding and liquidity management requirements. Liquidity risk is mreserves, banking facilities and reserve borrowing facilities, by continuously monitoring foreflows, and by matching the maturity profiles of financial assets and liabilities. The Chief Financsame to the Board of Directors on quarterly basis.
(ii) Maturities of financial liabilities
The following tables detail the Company's remaining contractual maturity for its non-derivatiwith agreed repayment periods. The amount disclosed in the tables have been drawn up baseccontractual cash flows of financial liabilities based on the earliest date on which the Company cThe tables include both interest and principal cash flows.
Less than 3 years to 5 years undi:
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inmarket prices. Market risk comprises two types of risk: currency risk and interest rate risk. Financial instruments affectedby market risk includes loan and borrowings, lease liabilities and derivative financial instruments. The objective of marketrisk management is to manage and control market risk exposures within acceptable parameters, while optimising thereturn. The Company uses derivatives to manage market risks. Derivatives are only used for economic hedging purposesand not as speculative investments. All such transactions are carried out within the guidelines set by the Board of Directorsand Risk Management Committee.
There has been no significant changes to the Company's exposure to market risk or the methods in which they are managedor measured.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changesin foreign exchange rates. The Company undertakes transactions denominated in foreign currencies; consequently,exposures to exchange rate fluctuations arise. The Company's exposure to currency risk relates primarily to the Company'soperating activities when transactions are denominated in a different currency from the Company's functional currency.
The Company manages its foreign currency risk by hedging transactions that are expected to occur within a maximum 12month period for hedges of forecasted sales.
“Represents GBP 2,23,675 and CHF 26,228 ( Previous year GBP 23,215 and CHF 9,278).
For the year ended March 31,2025, every 1 percent depreciation/appreciation in the exchange rate againstaffected the Company's incremental margins (profit as a percentage to revenue) approximately by 0.46%exposure to foreign currency changes for all other currencies is not material.
I nterest rate risk is the risk that the fair value or future cash flows of a financial instrument will flucchanges in market interest rates. The Company's exposure to the risk of changes in market interest ratesto the Company's debt obligations with floating interest rates. The borrowings as at March 31, 2025 is R(previous year Rs. 20,608. 2 Million) which are interest bearing and interest rates are variable.
For the year ended March 31, 2025, every 1 percentage increase/decrease in weighted average bank inhave affected the Company's incremental margins (profit as a percentage to revenue) approximately byyear 0.25%).
The Company's investments in other funds are susceptible to market price risk arising from uncertainvalues of the investment securities. The Company manages the price risk through diversification and byindividual and total equity instruments. Reports on the portfolio are submitted to the Company's seniora regular basis.
At the reporting date, the exposure in other funds is Rs. 2.6 Million (previous year Rs. 487.9 Million). A deciin NAV of 5% could have an impact of approximately of Rs. 0.12 Million (previous year Rs. 24.2 Million) on
52 Trident Limited
NUIt5U - The Company has used accounting software for maintaining its books of account which has a feature of recordingaudit trait (edit tog) 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 insofar as it relates to SAP accounting software. Furtherno instance of audit trail feature being tampered with was noted in respect of accounting software.Additionally, the audit trailin respect of the FY 2023-24 has not been preserved by the company as per the statutory requirements for record retention.
NUT t 51 - The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employmentbenefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. Certain sectionsof the Code came into effect on 3 May 2024. However, the final rules/interpretation have not yet been issued. The Company isstill in the process to assess impact of such notification.
NUTt 52 - Du ring the FY 2003-04 and 2004-05, the Company had granted loans to one of its overseas subsidiary companynamely Trident Global Inc ("TGI") for business purposes. Keeping in view the financial condition of TGI and as a matter ofprudence, the Company, during the FY 2005-06, had written-off these loans amounting to USD 1,83,000 (Rs. 8.1 Million) Duringthe previous financial year, with the improvement in performance of TGI, the Company has re-instated the earlier written-offloan amount along with accrued interest aggregating to USD 2,38,018 (Rs. 16.5 Million). The Company has further accrued theinterest on above loans till the year end and based on agreement the Company has realised the loan amount along with interestby June 30, 2024.
NUTt53 - I n the month of October 2023, the Income Tax Department ('the department') conducted a search under Section132 of the Income Tax Act, 1961 at certain locations of Company including its manufacturing and Indian subsidiaries andresidence of few of its employees/key managerial personnel. During the search proceedings, the Company provided necessaryinformation and responses to the department. Also, the department has taken certain documents, few laptops and data backupsfor further investigation. The business and operations of the Company continued without any disruptions. The department sincethen continued with its post search proceedings for various assessment years and the company has now received assessmentorders for two assessment years (AY 2021-22 and AY 2022-23) whereby certain additions have been made. The company hasfiled appeals against the said orders before learned Commissioner of Income Tax (Appeals) and the management is hopeful ofgetting favourable orders from appellate authorities. Management is of the view that no material adjustments are required tothese Standalone Ind AS Financial Statements.
NOTE 57 - The management has evaluated the likely impact of prevailing uncertainties relating to imposition or enhancementof reciprocal tariffs and believes that there are no material impacts on the financial statements of the Company for the yearended March 31,2025. However, the management will continue to monitor the situation from the perspective of potential impacton the operations of the Company.
NOTE 58 - Du ring the previous year, one of the erstwhile subsidiary of the Company, Trident Global Corp Limited (TGCL), hadconverted its 28,18,500 Compulsorily Convertible Debentures ('CCD') having face value of INR 60/- per CCD into equity sharesof INR 1/- at a premium of INR 59/- per equity share based on approval by the Board of Directors in the meeting held on June6, 2023 which had resulted in change of shareholding of the Company in TGCL from 100% to 63.95%. Further, the Companyhad sold its entire stake of 63.95% in TGCL on September 14, 2023. The Company had recognised gain of Rs 360.5 Million. TheCompany has presented above profit or loss on the sale of said investment, as an exceptional item in the Standalone Ind ASFinancial Statements.
There are no other material adjusting or non-adjusting subsequent events, except as already disclosed in these standalonefinancial statements.
NOTE 60 - The Company had constituted Trident Limited Employees Welfare Trust ('Trust') to acquire, hold and allocate/transfer equity shares of the Company to eligible employees of the employee share purchase scheme from time to time on theterms and conditions specified under the Scheme. During the year ended March 31, 2024, the Company had obtained approvalof shareholders of the Company for implementation of (i) Trident Limited General Employee Benefits Scheme - 2023 and (ii)utilisation of proceeds from sale of unappropriated 62,328,640 Equity Shares from Trident Limited Employee Stock PurchaseScheme - 2020, utilisation of excess funds lying with the Trust and funds which Trust may receive from various sources in futurefor Trident Limited General Employee Benefits Scheme - 2023. The Company has also obtained an expert opinion on compliancein this regard. During current year, the trust sold 4,79,73,426 shares in the open market and recorded a profit of INR 841.6 Million(net of tax Rs. 131.7 Million) which was recorded in other equity.
(i) The Company does not have any benami property, where any proceeding has been initiated or pending against the Companyfor holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
(ii) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 orsection 560 of the Companies Act, 1956.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
(v) 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 ofthe company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) withthe 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 ofthe Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company does not have any such transaction which is not recorded in the books of account that has been surrenderedor disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or surveyor any other relevant provisions of the Income Tax Act, 1961.
(viii) The Company has not been declared wilful defaulter by any bank or financial insitution or government or anygovernment authority.
As per our report of even date attached For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Chartered Accountants
(ICAI Firm's Registration No. 301003E/E300005)
Rajiv Dewan Deepak Nanda
Director Managing Director
DIN:00007988 DIN:00403335
Pravin Tulsyan Avneesh Barua Samir Prabodhchandra Joshipura
Partner Chief Financial Officer Chief Executive Officer
(Membership No. 108044)
Sushil Sharma
Place: New Delhi Place: New Delhi Company Secretary
Date: May 21, 2025 Date: May 21, 2025 Membership No. F6535