m) Provisions and contingencies
Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events andit is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.Provisions are not recognized for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determinedby considering the class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respectto any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle thepresent obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax ratethat reflects current market assessments of the time value of money and the risks specific to the liability. The increase in theprovision due to the passage of time is recognized as interest expense.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of whichwill be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within thecontrol of the company or a present obligation that arises from past events where it is either not probable that an outflow ofresources will be required to settle the obligation or a reliable estimate of the amount cannot be made. A Contingent assetis disclosed, where an inflow of economic benefits is probable.
n) Investment in subsidiaries and joint ventures
Investments in subsidiary companies and joint venture companies are carried at cost less accumulated impairment losses, ifany. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediatelyto its recoverable amount. On disposal of investments in subsidiary companies and joint venture companies, the differencebetween net disposal proceeds and the carrying amounts are recognised in the Standalone Statement of Profit and Loss.
o) Investment and other financial assets
(i) Classification
The Company classifies its financial assets in the following measurement categories:
those to be measured subsequently at fair value (either through other comprehensive income, or throughStandalone Statement of Profit and Loss), and
those measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the contractual termsof the cash flows.
For assets measured at fair value, gains and losses will either be recorded in the Standalone Statement of Profit andLoss or other comprehensive income.
(ii) Recognition and derecognition
Regular way purchases and sales of financial assets are recognized on trade-date, being the date on which theCompany commits to purchase or sale the financial asset. Financial assets are derecognized when the rights to receivecash flows from the financial assets have expired or have been transferred and the group has transferred substantiallyall the risks and rewards of ownership.
(iii) Measurement
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset notat fair value through the Standalone Statement of Profit and Loss, transaction costs that are directly attributable to theacquisition of the financial asset. Transaction costs of financial assets carried at fair value through the Profit or Loss areexpensed in the Statement of Standalone Profit and Loss.
(a) Debt Instruments:
Subsequent measurement of debt instruments depends on the Company business model for managing theassets and cash flows characteristic. There are three measurement categories into which the Company classifiesits debt instruments.
Amortised Cost: Assets that are held for the collection of contractual cash flow where those cash flowsrepresent solely payments of principal and interest are measured at amortised cost. Interest income fromthese financial assets is included in finance income using the effective interest rate method. Any gain orloss arising on derecognition is recognized directly in the Standalone Statement of Profit and Loss andpresented as separate line item in other expenses. Impairment losses are presented as separate line item inthe Standalone Statement of Profit and Loss.
Fair value through other comprehensive Income (FVOCI): Assets that are held for collection of contractual cashflows and for selling the financial assets, where the assets' cash flows represent solely payments of principal
and interest, are measured at fair value through other comprehensive income (FVOCI). The Company does nothave debt instrument measured under this category.
Fair Value through profit and loss: Assets that do not meet the criteria for amortised cost or FVOCI are measuredas fair value through profit and loss. A gain or loss on a debt investment that is subsequently measured at fairvalue through profit and loss is recognized in the Standalone Statement of Profit and Loss. Interest incomefrom these financial assets is included in other income. Debt instrument under this category comprises ofinvestments in mutual funds that do not qualify for measurement at either at amortised cost or FVOCI.
(b) Equity instruments
The Company subsequently measures all equity investments other than investment in subsidiary companies andjoint venture at fair value. Where the Company's management has elected to present fair value gains and losseson equity investments in other comprehensive income, there is no subsequent reclassification of fair value gainsand losses to profit or loss following the derecognition of the investment. Dividends from such investments arerecognized in Standalone Statement of Profit and Loss as other income when the Company's right to receivepayments is established.
Changes in the fair value of financial assets at fair value through profit or loss are recognized in the Statementof Standalone Profit and Loss. Impairment losses (and reversal of impairment losses) on equity investmentsmeasured at FVOCI are not reported separately from other changes in fair value.
(iv) Impairment of financial assets
The Company assesses on a forward looking basis the expected credit losses associated with its assets carried atamortised cost. The impairment methodology applied depends on whether there has been a significant increase incredit risk. Note 43 details how the Company determines whether there has been a significant increase in credit risk.
(v) Income recognition
Interest income:
Interest income from financial assets at fair value through profit or loss is disclosed as interest income within otherincome. Interest income on financial assets at amortised cost is calculated using the effective interest method isrecognized in the Standalone Statement of Profit and Loss as part of other income.
I nterest income is calculated by applying the effective interest rate to the gross carrying amount of a financialasset except for financial assets that subsequently become credit-impaired. For credit-impaired financial assetsthe effective interest rate is applied to the net carrying amount of the financial asset (after deduction of theloss allowance).
Dividend:
Dividends are recognized in the Standalone Statement of Profit and Loss only when the right to receive payment isestablished, it is probable that the economic benefits associated with the dividend will flow to the Company, and theamount of the dividend can be measured reliably.
p) Exceptional items
If the management believes that losses are material and is relevant to an understanding of the entity’s financial performance,it discloses the same as an exceptional item.
3. CRITICAL ESTIMATES AND JUDGEMENTS
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actualresults. Management also needs to exercise judgement in applying the company’s accounting policies.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which aremore likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.Detailed information about each of these estimates and judgements is included in relevant notes together with information about
the basis of calculation for each affected line item in the financial statements. In addition, this note also explains where there havebeen actual adjustments this year as a result of changes to previous estimates.
The areas involving critical estimates or judgements are:
Estimation of current tax expense and current tax payable [Refer note:38]
Estimated fair value of unlisted equity securities. [Refer note:43.2]
Useful lives of property, plant and equipment and intangible assets. [Refer note:5A & 7]
Estimation of Defined benefits plan [Refer note:42]
Estimation of contingent liabilities [Refer note:47]
Impairment of trade receivables [Refer note:43.5]
Impairment assessment of CRAMS [ Refer note: 53]
Estimates and judgements are continually evaluated. They are based on historical experience and other factors, includingexpectations of future events that may have a financial impact on the Company and that are believed to be reasonable underthe circumstances.
All amounts disclosed in the financial statements and notes have been rounded off to the nearest Crores as per the requirementof Schedule III, unless otherwise stated.
The company obtains independent valuations for its investment properties at least annually. The best evidence of fair valueis current prices in an active market for similar properties. Where such information is not available, the company considersinformation from a variety of sources including:
• current prices in an active market for properties of different nature or recent prices of similar properties in less activemarkets, adjusted to reflect those differences.
• discounted cash flow projections based on reliable estimates of future cash flows.
• capitalised income projections based upon a property’s estimated net market income, and a capitalisation rate derivedfrom an analysis of market evidence.
The fair values of investment properties have been determined by independent valuer. The valuation is based on marketresearch, market trend and comparable values as considered appropriate. All resulting fair value estimates for investmentproperties are included in level 3.
(b) Terms / rights attached to equity shares:
The Company has only one class of equity shares having a par value of ' 2.00 per share. Each equity shareholder is entitledto one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Boardof Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting, except in case of interimdividend. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the company inproportion to the number of and amounts paid on the shares held.
(c) I nformation relating to Employee Stock Option Plan, including details of options issued, exercised and lapsed during thefinancial year and options outstanding at the end of the reporting period, is set out in note 44.
(iii) Risk exposure to defined benefit plans
The plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity riskand salary risk.
Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which isdetermined by reference to market yields at the end of the reporting period on Indian government securities; if thereturn on plan asset is below this rate, it will create a plan deficit.
Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset byan increase in the return on the plan’s debt investments.
Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate ofthe mortality of plan participants both during and after their employment. An increase in the life expectancy of the planparticipants will increase the plan’s liability.
Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of planparticipants. As such, an increase in the salary of the plan participants will increase the plan’s liability.
The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation werecarried out at March 31, 2025. The present value of the defined benefit obligation, and the related current service costand past service cost, were measured using the projected unit credit method.
42.3 Other Long term Employee Benefits:
The liability for Compensated absences as determined by Independent actuary as at the balance sheet date is ' 19.22crores (March 31, 2024: ' 21.48 crores).
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equityinstruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded onthe stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued usingthe closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuationtechniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on the observable market data, the instrument isincluded in Level 3.
(iii) Valuation technique used to determine fair value
1. The fair value of the quoted investments is determined using quoted bid prices in an active market.
2. The fair value of the unquoted investments is determined using the inputs other than quoted prices included in level1 that are observable for assets and liabilities.
3. Company has made investments in 'Ask Real Estate Special Situation Fund'. The Fund invests primarily in specialpurpose vehicles and holding companies of special purpose vehicles that undertake residential and mixed use realestate developments with a significant residential component. The Valuation methodology used shall depend on thetype of property and market conditions and stage of development reached in the invested project. The suitability ofa particular method of valuation is decided based on the below criteria:
43.2 Fair value measurements (contd.)
- For undeveloped properties: Sales/Market Comparison Method benchmarked by Discounted Cash Flow Method
- For semi developed properties / properties under development: Weighted average of Discounted Cash FlowMethod and Replacement Cost Method
- For completed properties, leased property or ready for sale properties: Capitalization of Rental Method or MarketComparison Method
(iv) Fair value of Financial assets and liabilities measured at amortised cost
The carrying amounts of cash and cash equivalents, trade receivables, receivables from related parties, trade payablesand other financial liabilitites are considered to be the same as their fair values due to their short-term nature. Fair valueof security deposits approximates the carrying value.
43.3 Financial risk management objectives
The Company’s activities exposes it to a variety of financial risks including market risk, credit risk and liquidity risk. TheCompany’s primary risk management focus is to minimize potential adverse effects of financial risks on its financialperformance. The Company’s risk management assessment and policies and processes are established to identify andanalyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliancewith the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes inmarket conditions and the Company’s activities. The Company does not enter into or trade financial instruments, includingderivative financial instruments, for speculative purposes.
43.4 Market Risks
The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and otherprice risk. The Company enters into derivative financial instruments to manage its exposure to foreign currency risk includingforward foreign exchange contracts.
a. Foreign exchange risk
(i) Exposure to foreign exchange risk:
The Company has international operations and is exposed to foreign exchange risk arising from foreign currencytransactions. Foreign exchange risk arises from future commercial transactions and recognised financial assetsand liabilities denominated in a currency that is not the functional currency of the entity in the Company. The riskalso includes highly probable foreign currency cash flows.
The Company has exposure arising out of export, import and other transactions other than functional risks. TheCompany hedges its foreign exchange risk using foreign exchange forward contracts. The same is within theguidelines laid down by Risk Management Policy of the Company.
(ii) Foreign exchange risk management:
To manage the foreign exchange risk arising from recognized assets and liabilities, Company use spottransactions, foreign exchange forward contracts, according to the Company's foreign exchange risk policy.Company's treasury is responsible for managing the net position in each foreign currency and for putting inplace the appropriate hedging actions. The Company’s foreign exchange risk management policy is to selectivelyhedge net transaction exposures in major foreign currencies.
c. Other price risks
The Company is mainly exposed to the price risk due to its investments in equity instruments. The price risk arises dueto uncertainties about the future market values of these investments. Equity price risk is related to the change in marketreference price of the investments in equity securities. In general, these securities are not held for trading purposes.These investments are subject to changes in the market price of securities.
In order to manage its price risk arising from investments in equity instruments, the Company maintains its portfolio inaccordance with the framework set by the Investment policy. Any new investment or divestment must be approved bythe Board of Directors, Chief Financial Officer and Management Committee.
43.4 Market Risks (contd.)
Price Risk Sensitivity Analysis:
As an estimation of the approximate impact of price risk, with respect to investments in equity instruments, the Companyhas calculated the impact as follows:
For equity instruments, a 10% increase in equity prices would have led to approximately an additional ' 0.19 crores gainin Standalone Statement of Profit and Loss (March 31, 2024: ' 0.27 crores). A 10% decrease in equity prices would haveled to an equal but opposite effect.
43.5 Credit risk
(i) Exposures to credit risk
The Company is exposed to credit risk, which is the risk that counterparty will default on its contractual obligation resultingin a financial loss to the Company. The credit risk arises from its operating activities (i.e. primarily trade receivables),from its investing activities including deposits with banks and financial institutions and other financial instruments.
(ii) Credit risk management
a) Trade receivable
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to' 442.28 crores (March 31, 2024 : ' 320.09 crores).
Trade receivables are typically unsecured and are derived from revenue earned from customer. Credit risk hasalways been managed by the Company through credit approvals, establishing credit limits and continuouslymonitoring the creditworthiness of customers to which the Company grants credit terms in the normalcourse of business.
The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. Theprovision matrix takes into account a continuing credit evaluation of the Company customers’ financial condition;ageing of trade accounts receivable and the Company's historical loss experience.
Trade receivables are written off when there is no reasonable expectation of recovery. The allowance for lifetimeexpected credit loss on customer balances as at March 31, 2025 was ' 7.62 crores (March 31, 2024'4.95 crores).
b) Cash and Cash Equivalents
Credit risk on cash and cash equivalents is limited as Company generally invest in deposits with banks andfinancial institutions with high credit ratings assigned by international and domestic credit rating agencies.
c) Investment in Mutual Funds
Credit risk on investments in mutual fund is limited as Company invested in mutual funds issued by the financialinstitutions with high credit ratings assigned by credit rating agencies.
43.6 Liquidity risk
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. TheCompany’s approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when duewithout incurring unacceptable losses.
(i) Liquidity risk tables
The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended March31, 2025 and March 31, 2024. Cash flow from operating activities provides the funds to service the financial liabilitieson a day-to-day basis.
The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meetoperational needs. Any short term surplus cash generated, over and above the amount required for working capitalmanagement and other operational requirements, is retained as cash and cash equivalents (to the extent required) andany excess is invested in interest bearing term deposits and other highly marketable liquid investments with appropriatematurities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.
Details of the employee share based plan of the Company
Employee stock option scheme 2007 (“ESOS 2007”) - The Shareholders of the Company at their Annual General Meeting heldon July 20, 2007 had approved the issue of Stock Options to eligible employees and directors, including the Managing Director(s)and the Whole Time Director(s) but excluding the promoters or persons belonging to the promoter group of the Company to theextent maximum of 5% of issued and paid up share capital of the Company from time to time. Each option is exercisable into onefully paid-up Equity Shares of ' 2.00 each of the Company. These options are to be issued in one or more tranches and on suchterms and conditions (including exercise price, vesting period, exercise period etc.) as may be determined by the Nomination andRemuneration Committee (NRC) in accordance with the provisions of the ESOS 2007, SEBI Regulations and in compliance withother applicable laws and regulations. The stock options granted under ESOS 2007 shall be capable of being exercisable onvesting within 10 years from grant date.
Employee stock option scheme 2017 (“ESOS 2017”) - The Shareholders of the Company at their Annual General Meetingheld on June 29, 2017 had approved the issue of Stock Options to eligible employees and directors, including the ManagingDirector(s) and the Whole Time Director(s) but excluding the promoters or persons belonging to the promoter group of theCompany and its subsidiary companies to the extent maximum of 5% of issued and paid up share capital of the Company fromtime to time. Each option is exercisable into one fully paid-up Equity Shares of ' 2.00 each of the Company. These options areto be issued in one or more tranches and on such terms and conditions (including exercise price, vesting period, exercise periodetc.) as may be determined by the Nomination and Remuneration Committee (NRC) in accordance with the provisions of the ESOS2017, SEBI Regulations and in compliance with other applicable laws and regulations. The stock options granted under ESOS2017 shall be capable of being exercisable on vesting within 10 years from grant date.
The expected life of the stock is based on historical data and current expectations and is not necessarily indicative ofexercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a periodsimilar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.
(v) Expenses arising from employee share based payment transaction recognised in the Standalone Statement of Profit andLoss as part of employee benefit expense for the year ended March 31, 2025 is ' 11.51 crores (March 31, 2024: ' 1.47crores). Also refer note 34.
Terms and Conditions:
1. Sales
The sales to related parties are in the ordinary course of business. Sales transactions are based on prevailing pricelists. For the year ended March 31, 2025, the Company has not recorded any loss allowances for trade receivables fromrelated parties.
2. Purchases
The purchases from related parties are in the ordinary course of business. Purchase transactions are based on normalcommercial terms and conditions and at market rates.
3. Loan / Security deposit to wholly owned subsidiary
Company had given interest free loan to Sulakshna Securities Limited (SSL) pursuant to the sanctioned scheme ofrehabilitation. Amount lying as at March 31, 2025 is Nil (March 31, 2024:Nil). Under Ind AS 109 ' Financial Instruments'the same has been fair valued. Accordingly, ' 8.16 crores (March 31, 2024: ' 8.16 crores) has been disclosed asInvestment in equity of SSL and ' Nil (March 31, 2024: Nil) as loans to SSL as at March 31, 2025.
view of the continuing uncertain circumstances, the receipts and payments under the contracts, transferred to the Companypursuant to the sanctioned scheme of Mafatlal Industries Limited, continue to be carried forward and necessary adjustmentswould be made on the status of the project becoming clearer. (Refer note 12 and note 25)
Exceptional item for the year ended March 31, 2025 : Nil, (March 31, 2024 : ' 52.13 crores) comprises gain on account of saleof surplus unused colony land situated at Surat (Gujarat).
51. The Board of Directors has recommended final dividend of ' 7.00 per share on the face value of ' 2.00 each (350%), subjectto approval by the Members at the forthcoming Annual General Meeting of the Company.
53. The Company had made a strategic investment in its wholly owned subsidiary Manchester Organics Limited (MOL), in theU.K. MOL has been an integral part of the overall Contract Research and Manufacturing Services (CRAMS) operations andstrategy of the Company. Based on management assessment, the investments in MOL and identified property, plant andequipment located at Dewas Unit has been considered as one Cash Generating Unit (CGU).
The Company tests impairment on the aforesaid assets on an annual basis. The recoverable amount of the CGU is determinedbased on value-in-use calculations which require the use of assumptions. The Management has assessed the impairmentof its CGU by reviewing the business forecasts and assumptions and believes that any reasonable possible change in thekey assumptions would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash- generating unit.
ii Borrowing secured against current assets
The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statementsof current assets filed by the company with banks are in agreement with the books of accounts.
iii Wilful defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or any lender.
iv Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
v Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
vi Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previousfinancial year.
vii Utilisation of borrowed funds and share premium
The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreignentities (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 behalfof the Company (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
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 behalfof the Funding Party (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries
viii Undisclosed Income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessmentsunder the Income Tax Act, 1961, that has not been recorded in the books of account.
ix Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
x Valuation of PP&E, intangible asset and investment property
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets orboth during the current or previous year.
xi Title deeds of immovable properties not held in name of the company
The title deeds of all the immovable properties (other than properties where the Company is the lessee and the leaseagreements are duly executed in favour of the lessee), as disclosed in notes 5A and 6 to the financial statements, areheld in the name of the Company.
xii Registration of charges or satisfaction with Registrar of Companies
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond thestatutory period.
xiii Utilisation of borrowings availed from banks and financial institutions
The company has used the borrowings from banks and financial institutions for the purpose for which it was taken atthe balance sheet date.
57 SUMMARY OF OTHER ACCOUNTING POLICES:
This note provides a list of other accounting policies adopted in the preparation of these standalone financial statements to theextent they have not already been disclosed in Note 2. These policies have been consistently applied to all the years presented,unless otherwise stated.
Basis of Preparation:
a) Current and non-current classification
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle andother criteria set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and thetime between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company hasascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities
b) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief OperatingDecision Maker (CODM) which consists of Chairman and Managing Director. The CODM assess the financial performanceand position of the Company and makes strategic decisions. See Note 39 for segment information presented.
c) Government Grants
Government grants are recognized at their fair value where there is a reasonable assurance that the grant will be receivedand the Company will comply with all attached conditions.
Government grants relating to the purchase of property, plant and equipment are included in liabilities as deferred incomeand are credited to the Standalone Statement of Profit and Loss in a systematic basis over the expected life of the relatedassets and presented within other income.
Government grants relating to income are deferred and recognized in the Standalone Statement of Profit and Loss over theperiod necessary to match them with the costs that they are intended to compensate and presented within other income.
d) Leases
Company’s material accounting policies about Leases as a lessee are explained in Note 2(c).
As a lessor
Lease income from operating leases where the Company is a lessor is recognized in income on a straight-line basis over thelease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlyingasset and recognized as expense over the lease term on the same basis as lease income. The respective leased assets areincluded in the balance sheet based on their nature.
e) Property, Plant and Equipment
Company’s material accounting policies about Property, Plant and Equipment are explained in Note 2(g).
All other repairs and maintenance expenses (Subsequent costs) of which it is not probable that future economic benefitsassociated with the item will flow to the Company are charged to the Standalone Statement of Profit and Loss duringthe period in which they are incurred. Gains or losses arising on retirement or disposal of assets are recognized in theStandalone Statement of Profit and Loss.
f) Intangible assets
Computer Software are stated at cost, less accumulated amortization and impairments, if any.
They are amortised over a period of 3 years on straight-line basis.
The estimated amortisation method, useful life and residual value are reviewed at the end of each reporting period, witheffect of any changes in the estimate being accounted for on a prospective basis.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in theStandalone Statement of Profit and Loss.
g) Investment Properties
Company’s material accounting policies about Investment Properties are explained in Note 2(h).
Subsequent expenditure is capitalised to the asset’s carrying amount only when it is probable that future economic benefitsassociated with the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairsand maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amountof the replaced part is derecognized.
h) Impairment of assets
The carrying amount of assets are reviewed at each Balance Sheet date to assess if there is any indication of impairmentbased on internal/external factors. For the purposes of assessing impairment, the smallest identifiable group of assets thatgenerates cash inflows from continuing use that are largely independent of the cash inflows from other assets or group ofassets, is considered as a cash generating unit. An impairment loss on such assessment will be recognised wherever thecarrying amount of an asset/cash generating unit exceeds its recoverable amount. The recoverable amount of the assets/cash generating unit is fair value less costs of disposal or value in use, whichever is higher.
Investment in subsidiaries, property, plant and equipment, intangible assets and other assets are tested for impairment atleast annually and when event occur or changes in circumstances indicate that the recoverable amount of the asset or cashgenerating units to which these pertain is less than its carrying value.
i) Foreign currency transactions
(i) Functional and presentation currency
I tems included in the financial statements of the Company are measured using the currency of the primary economicenvironment in which the Company operates (‘the functional currency’). The financial statements of the Company arepresented in Indian Rupees (T), which is the functional and presentation currency of the Company.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of thetransactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translationof monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized inthe Standalone Statement of Profit and Loss. Non-monetary items that are measured at fair value in a foreign currency aretranslated using the exchange rates at the date when the fair value was determined. Translation differences on assets andliabilities carried at fair value are reported as part of the fair value gain or loss.
j) Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured atamortised cost.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,cancelled or expired.
k) Borrowing Cost
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of aqualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intendeduse or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended useor sale. All other borrowing costs are expensed in the period in which they are incurred.
l) Contributed equity
Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equityas a deduction, net of tax, from the proceeds.
m) Earnings per share
i. Basic earnings per share
Basic earnings per share is calculated by dividing:
the profit attributable to owners of the Company
by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements inequity shares issued during the year.
ii. Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
the weighted average number of additional equity shares that would have been outstanding assuming the conversion ofall dilutive potential equity shares.
n) Research and development expenses
Revenue expenditure pertaining to research is charged to the Standalone Statement of Profit and Loss. Development costsof products are also charged to the Standalone Statement of Profit and Loss unless a product’s technical feasibility hasbeen established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that canbe directly attributed or allocated on a reasonable and consistent basis for creating, producing and making the asset readyfor its intended use. Property, plant & equipments utilised for research and development are capitalised and depreciated inaccordance with the policies stated for property, plant & equipment.
As per our report of even date
For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors
Firm Registration No. 012754N/N500016
Nitin Khatri Vishad P. Mafatlal Nitin G. Kulkarni
Partner Chairman Managing Director
Membership No. 110282 DIN:00011350 DIN:03042587
Niraj B. Mankad Anish P. Ganatra
Company Secretary Chief Financial Officer
Mumbai Mumbai
Date : May 09, 2025 Date : May 09, 2025