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Regaal Resources Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ
3.14 Provisions, Contingent Liabilities and
Contingent Assets
3.14.1 Provisions
Provisions are recognized when there is a present
obligation (legal or constructive) as a result of a past
event and it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation. Provisions
are determined by discounting the expected future
cash flows (representing the best estimate of the
expenditure required to settle the present obligation
at the balance sheet date) at a pre-tax rate that reflects
current market assessments of the time value of money
and the risks specific to the liability. The unwinding of
the discount is recognized as finance cost.
3.14.2 Contingent Liabilities
Contingent liability is a possible obligation arising
from past events and the existence of which will be
confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within
the control of the Company or a present obligation
that arises from past events but is not recognized
because it is not possible that an outflow of resources
embodying economic benefit will be required to settle
the obligations or reliable estimate of the amount of the
obligations cannot be made. The Company discloses
the existence of contingent liabilities in Other Notes to
Financial Statements.
3.14.3 Contingent Assets
Contingent assets usually arise from unplanned or
other unexpected events that give rise to the possibility
of an inflow of economic benefits. Contingent Assets
are not recognized though are disclosed, where an
inflow of economic benefits is probable.
3.15 Intangible Assets
3.15.1 Recognition and Measurement
Intangible asset is stated at cost on initial recognition
and subsequently measured at cost less accumulated
amortization and accumulated impairment loss, if any.
3.15.2 Amortization
⢠Software''s are amortized over a period of
three years.
⢠The amortization period and the amortization
method are reviewed at least at the end of
each financial year. If the expected useful life
of the assets is significantly different from
previous estimates, the amortization period is
changed accordingly.
3.16 Operating Segment
Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker. The chief operating
decision maker of the Company is responsible for
allocating resources and assessing performance of
the operating segments and accordingly is identified
as the chief operating decision maker.
The Company has identified one reportable segment
i.e., Manufacturing of Starch and its derivatives and
trading of maize based on the information reviewed
by the CODM.
3.17 A. Recent accounting pronouncement
In May 2025, MCA notified amendments to Ind AS
21-The Effects of Changes in Foreign Exchange
Rates (effective date April 1, 2025). Guidance on
assessing when a currency is exchangeable and
determining the exchange rate when it is not.
In August 2025, MCA notified the following
amendments to:
Ind AS 1: Presentation of Financial Statements -
(Effective Date: April 1, 2025.)-Classification
Criteria: Liabilities are classified as current if the
entity lacks a substantive right to defer settlement
for at least 12 months, existing as of the reporting
date and clarifies that only covenants complied
with on or before the reporting date affect
current/non-current classification. Basis Carve-
out applies, the liability Can be classified as non¬
current if waiver is obtained before approval of
financial statements
Ind AS 7 & Ind AS 107: Supplier Finance
Arrangements (Effective Date: April 1, 2025)
Ind AS 7 (Cash Flows): Mandatory disclosure
of the existence, nature, and carrying
amounts of supplier finance (reverse
factoring) arrangements, including payment due
date ranges.
Ind AS 107 (Financial Instruments): Adds these
arrangements as a specific factor to consider
when evaluating concentration of liquidity risk.
Ind AS 12: International Tax Reform - Pillar Two
Model Rules (immediate and retrospective)-
Mandatory Relief: Provides a temporary exception
from recognizing and disclosing information
about deferred tax assets and liabilities related
to OECD Pillar Two income taxes (top-up tax).
Entities must explicitly disclose that they have
applied this mandatory relief
The Company has reviewed the amendment
and based on its evaluation has determined that
it does not have any significant impact in its
financial statements.
b. New and amended standards issued but
not effective
In exercise of the powers conferred by section
133 read with section 469 of the Companies Act,
2013 (18 of 2013), the Central Government in
consultation with the National Financial Reporting
Authority have issued certain amendments to the
Indian Accounting Standards (Ind AS) that have not
yet become effective for the Company''s reporting
periods at the date of these interim financial
statements. The Companies (Indian Accounting
Standards) Second Amendment Rules, 2025,
notified on 13 August 2025, include amendments
that are effective for annual reporting periods
beginning on or after 1 April 2026:
Ind AS 1 â Presentation of Financial Statements:
Further amendments on classification of
liabilities as current or non-current, including
requirements relating to breaches of loan
covenants, grace periods, and disclosure of
related risks (paragraphs 74, 75, 75A and 76).
Ind AS 10 â Events after the Reporting Period:
Consequential amendments aligning terminology
and treatment with Ind AS 1
Ind AS 12 â Income Taxes: Certain disclosure
requirements relating to international tax reform
(Pillar Two model rules), including qualitative
and quantitative information on exposure
to Pillar Two income taxes are mandatory
for interim reporting''s.
The Company is in the process of evaluating the
requirements of these amendments and their
impact on the Company''s financial statements.
The impact, if any, will be given effect to in the
period of initial application.
Further, during the year ended March 31, 2026,
A new Standard on Accounting, Ind AS 118
(equivalent to IFRS 18)-Presentation and
Disclosure in Financial Statements has been
introduced which will be applicable from April 1,
2027 and will replace Ind AS 1 once notified by
the Ministry of Corporate Affairs (MCA). Ind AS
118 sets out general and specific requirements
for the presentation of financial statements and
for disclosures in the notes. These do not have a
material impact on the financial statements.
SOURCES OF ESTIMATION IN APPLYING
ACCOUNTING POLICIES
Estimates and judgments are continually evaluated.
They are based on historical experience and other
factors, including expectations of future events that
may have a financial impact on the Company and that
are believed to be reasonable under the circumstances.
Information about Significant judgements and Key
sources of estimation made in applying accounting
policies that have the most significant effects on the
amounts recognized in the special purpose financial
statements is included in the following notes:
⢠Recognition of Deferred Tax Assets: The extent
to which deferred tax assets can be recognized is
based on an assessment of the probability of the
Company''s future taxable income against which
the deferred tax assets can be utilized. In addition,
significant judgement is required in assessing the
impact of any legal or economic limits.
⢠Right-of-use assets and lease liability: The
Company has exercised judgement in determining
the lease term as the noncancellable term of the
lease, together with the impact of options to
extend or terminate the lease if it is reasonably
certain to be exercised. Where the rate implicit in
the lease is not readily available, an incremental
borrowing rate is applied. This incremental
borrowing rate reflects the rate of interest that the
lessee would have to pay to borrow over a similar
term, with a similar security, the funds necessary
to obtain an asset of a similar nature and value
to the right of-use asset in a similar economic
environment. Determination of the incremental
borrowing rate requires estimation.
⢠Defined Benefit Obligation (DBO):Employee
benefit obligations are measured on the basis of
actuarial assumptions which include mortality
and withdrawal rates as well as assumptions
concerning future developments in discount
rates, medical cost trends, anticipation of future
salary increases and the inflation rate. The
Company considers that the assumptions used to
measure its obligations are appropriate. However,
any changes in these assumptions may have a
material impact on the resulting calculations.
⢠Provisions and Contingencies:The assessments
undertaken in recognising provisions and
contingencies have been made in accordance
with Indian Accounting Standards (Ind AS) 37,
''Provisions, Contingent Liabilities and Contingent
Assets''. The evaluation of the likelihood of the
contingent events is applied best judgement
by management regarding the probability of
exposure to potential loss.
Impairment of Financial Assets:The Company
reviews it carrying value of investments carried at
amortized cost annually, or more frequently when
there is indication of impairment. If recoverable
amount is less than it carrying amount, the
impairment loss is accounted for.
Allowances for Doubtful Debts: The Company
makes allowances for doubtful debts through
appropriate estimations of irrecoverable amount.
The identification of doubtful debts requires use of
judgment and estimates. Where the expectation
is different from the original estimate, such
difference will impact the carrying value of the
trade and other receivables and doubtful debts
expenses in the period in which such estimate
has been changed.
Fair value measurement of financial Instruments:
When the fair values of financial assets and
financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices
in active markets, their fair value is measured
using valuation techniques. The input to these
models is taken from observable markets where
possible, but where this not feasible, a degree of
judgement is required in establishing fair values.
Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility.
a) During the year ended 31st March, 2026, the Company has completed its Initial Public Offer (IPO) of 29,999,520 equity
shares of face value '' 5 each at an issue price of '' 102 per share (including a share premium of '' 97 per share) and
the equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) and Bombay Stock
Exchange Limited (BSE) on 20th August, 2025. The issue comprised of a fresh issue of 20,587,520 equity shares
aggregating to '' 2,099.93 millions and offer for sale of 9,412,000 equity shares by selling shareholders aggregating
to '' 960.02 millions.
The total estimated IPO expenses of '' 324.41 millions (net of taxes) have been proportionately allocated between the
selling shareholders and the Company in the proportion of equity shares sold by the selling shareholders and issued
by the Company. The utilization of IPO proceeds (net of IPO expenses) is summarized below :
b) Pursuant to a resolution passed by the Board of Directors and a resolution passed by the Company''s equity shareholders
at the Extra-Ordinary General Meeting held on 6th November, 2024, the Company has sub-divided its equity shares
from face value of '' 10 per equity share to face value of '' 5 per equity share. The impact of sub- division of shares
has been retrospectively considered for the computation of Earnings Per Share as per the requirement of Ind AS 33.
c) Pursuant to a resolution passed by the Company''s equity shareholders at the Extra-Ordinary General Meeting held
on 6th November, 2024, the Company has allotted 5,75,11,050 bonus equity shares of '' 5 each in the ratio of 3 (three)
fully paid up bonus shares of the face value of '' 5 each for every existing 1 (one) fully paid up equity shares of the face
value of '' 5 each held by the shareholders as on 5th November, 2024, the record date as approved by the shareholders
at the aforesaid Extra-Ordinary General Meeting, by capitalising '' 287. 56 millions from free reserves of the company.
The impact of bonus issue of shares has been retrospectively considered for the computation of Earnings Per Share
as per the requirement of Ind AS 33.
d) Pursuant to a resolution passed by the Company''s equity shareholders at the Extra-Ordinary General Meeting
held on 4th November, 2024, the Company has increased the authorized share capital from '' 102.50 millions to
'' 700.00 millions.
e) Pursuant to a resolution passed by the Company''s equity shareholders at the Extra-Ordinary General Meeting held on
15th November, 2024, the Company has allotted 54,54,540 equity shares of '' 5 each at an issue price of '' 110 each
(including securities premium of '' 105 each) for an amount aggregating to '' 600 millions by conversion of existing
unsecured loan into equity shares to certain entities .
17.4 Terms/ Rights attached to Equity Shares :
The company has one class of equity shares having a par value of '' 5/- per share. Each equity shareholder is eligible
for one vote per share held. The company declares and pays dividend in Indian Rupees. The dividend proposed by
the Board of Directors is subject to the approval of the shareholders in the ensuing Annual general Meeting, except
in case of interim dividend. In the event of liquidation of the company, the equity shareholders are eligible to receive
the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.
17.8 8,64,000 equity shares have been reserved for issue under Employee Stock Options Plan as at the Balance Sheet
date.
17.9 The Company has not allotted any shares as fully paid up pursuant to contract(s) without payment being received
in cash or has bought back any shares during the period of five years immediately preceding the date at which the
Balance Sheet is prepared. Further, the company has issued bonus shares during the year ended 31st March, 2025
as stated in Note 17(c) above.
17.10 Employee Stock Option Plan (ESOP)
Share based long term incentive scheme (SLTI)
On 4th November, 2024, pursuant to approval by shareholders in Extra Ordinary General Meeting, the board has been
authorised to introduce, offer, issue and provide share based incentives to eligible employees of the company under Share
based long term incentive scheme.The maximum number of shares under the plan shall not exceed 8,64,000 shares. The
option would vest on achievement of defined performance parameters as determined by Nomination and Remuneration
committee. The performance parameters are based on operating performance metrics of the company as decided by
Nomination and Remuneration Committee. The Instruments generally vests within three years from grant date. Each
option carries with a right to purchase one equity share of the company at exercise price determined by Nomination and
Remuneration Committee at the time of grant.
17.7 Rights, preferences and restrictions attached to Equity shares
a) The Company has only one class of equity shares having par value of '' 5 each. Each holder of equity shares is
entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The above shareholding
represents legal ownership of shares.
b) In the event of liquidation of the Company, the equity shareholders shall be entitled to receive remaining assets
of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number
of equity shares held by the shareholders.
Nature/ Purpose of each reserve
a) Retained Earnings: Retained earnings are the profits that the company has earned till date, less any transfers to general
reserve, dividends or other distributions paid to shareholders. Retained earnings includes re-measurement (loss)/gain
on defined benefit plans, net of taxes that will not be reclassified to Statement of Profits and Losses and also includes
fair value adjustments on transition to Ind AS.
b) Securities Premium Account: The amount received in excess of face value of the equity shares is recognised in
Securities Premium as per the provision of Companies Act, 2013 (''the Act''). This reserve is utilised in accordance
with the provisions of the Act.
c) General Reserves: General Reserve is created from time to time by way of transfer profits from retained earnings for
appropriation purposes. General Reserve is created by a transfer from one component of equity to another and is not
an item of other Comprehensive income.
d) Other Comprehensive Income (OCI) : Other Comprehensive Income (OCI) represent the balance in equity for items to
be accounted under OCI and comprises of the following:
i) Remeasurement of defined benefit plans: The actuarial gains and losses arising on defined benefit obligations
have been recognised in OCI and thereafter transferred to Retained Earnings.
e) Share Based Payment Reserve (ESOP) : This Reserve relates to stock options granted by the Company to employees
under Employee Stock Option Schemes. This Reserve is transferred to Securities Premium or Retained Earnings on
exercise or lapse of vested options.
50.2 The management assessed that the fair values of cash and cash equivalents, trade receivables, trade payables,
current borrowings, current loans and other financial assets & liabilities approximates their carrying amounts
largely due to the short-term maturities of these instruments.
50.3 The management considers that the carrying amounts of Financial assets and Financial liabilities recognised at
nominal cost/amortised cost in the Financial statements approximate their fair values.
50.4 Non current borrowings has been contracted at floating rates of interest, which are reset at short intervals. Fair value
of floating interest rate borrowings approximates their carrying value subject to adjustments made for transaction
cost.
The following are the judgements and estimates made in determining the fair values of the financial instruments that
are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed
in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value,
the company has classified its financial instruments into the three levels of fair value measurement as prescribed
under the Ind AS 113 "Fair Value Measurement".
51.3 Explanation to the Fair Value hierarchy
The Company measures Financial instruments, such as, unquoted investments at fair value at each reporting date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. All assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorised within the fair value hierarchy based on the lowest level input
that is significant to the fair value measurement as a whole. The valuation of unquoted shares and preference shares
have been made based on level 3 inputs as per the hierarchy mentioned in the Accounting Policies.
Financial management of the Company has been receiving attention of the top management of the Company. The
management considers finance as the lifeline of the business and therefore, financial management is carried out
meticulously on the basis of detailed management information systems and reports at periodical intervals extending
from daily reports to long-term plans. Importance is laid on liquidity and working capital management with a view
to reduce over-dependence on borrowings and reduction in interest cost. Various kinds of financial risks and their
mitigation plans are as follows:
52.1 Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade
receivables). On account of adoption of Ind AS 109, the Company uses an expected credit loss model to assess the
impairment loss.
a Trade Receivables
Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer
credit risk management. Outstanding customer receivables are regularly monitored and reconciled. Based on
historical trend, industry practice and the business environment in which the company operates, an impairment
analysis is performed at each reporting date for trade receivables. Based on above, the company has made
provision/(reversal) for doubtful debts of '' 1.26 Millions, '' (9.72) Millions for the year ended 31st March, 2026
and for the year ended 31st March, 2025 respectively.
b Other Financial Assets
Credit Risk on cash and cash equivalent, deposits with the banks/financial institutions is generally low as the
said deposits have been made with the banks/financial institutions who have been assigned high credit rating
by international and domestic rating agencies.
52.2 Liquidity Risk
The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all
times. The Company relies on a mix of borrowings and excess operating cash flows to meet its needs for funds. The
current committed lines of credit are sufficient to meet its short to medium/ long term expansion needs. The Company
monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs.
52.3.2 Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market rates. The company''s exposure to the risk of changes in market interest rate relates primarily to
company''s borrowing with floating interest rates. The Company do not have any significant interest rate risk on its
current borrowing due to their short tenure.
b It is not expected that cash flows included in the maturity analysis could occur significantly earlier, or at significantly
different amounts. When the amount payable is not fixed, the amount disclosed has been determined with reference
to conditions existing at the reporting date.
52.3 Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises of Foreign Exchange Risk and Interest Rate Risk.
52.3.1 Foreign Exchange Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily
to the Company''s operating activities. The Company has a treasury department which monitors the foreign exchange
fluctuations on the continuous basis and advises the management of any material adverse effect on the Company.
a Unhedged Foreign Currency Exposure
The Company''s exposure to foreign currency in USD at the end of the reporting year expressed in '' is as follows :
The Company objective to manage its capital is to ensure continuity of business while at the same time provide
reasonable returns to its various stakeholders but keep associated costs under control. In order to achieve this,
requirement of capital is reviewed periodically with reference to operating and business plans that take into account
capital expenditure and strategic investments. Sourcing of capital is done through judicious combination of equity/
internal accruals and borrowings, both short term and long term. Net debt to equity ratio is used to monitor capital.
55.3 The Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from a bank on
the basis of security of current assets of the Company. The quarterly returns / statements filed by the Company with
such bank are in agreement with the books of accounts of the Company, except for the differences as stated below.
The Quarterly statements submitted to banks were prepared and filed before the completion of all financial
statement closure activities including accounting standard related adjustments / reclassifications & regrouping
as applicable, which led to these differences between the final books of accounts and the quarterly statements
submitted to banks based on provisional books of accounts.
55.1 Based on the registered sale deed/ conveyance deed (other than properties where the company is the lessee and the
lease agreements are duly executed in favour of the lessee), the title deeds,comprising the immovable properties of
land and buildings which are freehold, are held in the name of the Company.
55.2 The Company does not have any benami property, where any proceedings have been initiated or pending against
the company for holding any benami property under Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and
the rules made there under.
The Quarterly statements submitted to banks were prepared and filed before the completion of all financial statement
closure activities including accounting standard related adjustments / reclassifications & regrouping as applicable, which
led to these differences between the final books of accounts and the quarterly statements submitted to banks based on
provisional books of accounts.
55.4 The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
55.5 There has no any transaction with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.
55.6 As at 31st March, 2026, the register of charges of the Company as available in records of the Ministry of Corporate
Affairs (MCA) includes charges that were created/modified since the inception of the Company. There are certain
charges which are historic in nature and it involves practical challenges in obtaining no-objection certificates
(''NOCs'') from the charge holders of such charges, despite repayment of the underlying loans. The Company is
in the continuous process of filing the charge satisfaction e-form with MCA, within the timelines, as and when it
receives NOCs from the respective charge holders.
55.7 The Company does not have any undisclosed income which is not recorded in the books of account that has
been surrendered or disclosed as income during the previous year in the tax assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)
55.8 The company has not advanced or loaned or invested funds to any other person(s) or entity(ies),including foreign
entities(intermediaries) with the understanding that the intermediary shall :
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company(Ultimate beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
55.9 The company has not received any fund from any person(s) or entity(ies),including foreign entities(Funding
Party) with the understanding (whether recorded in writing or otherwise) that the company shall :
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiary.
55.10 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
55.11 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with the Companies (Restriction on number of layers) Rules 2017.
55.12 The Company has not made any Loans or Advances in the nature of loans are granted to promoters, directors,
KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other
person.
56 During the financial year ended 31st March, 2026, the Company has imported assets amounting to '' 170.24 Millions
under Export Promotion Capital Goods Scheme (EPCG) (5 No. of License) without paying any import duty amounting
to '' 47.23 Millions due to which the Company has the export obligation of '' 283.41 Millions which is required to be
fulfilled within 6 years from the date of EPCG License granted by the authorities.
58 The Government of India implemented the New Labour Codes with effect from 21st November, 2025 and subsequently
issued draft Rules and FAQs to facilitate assessment of the related financial impact. The Company has assessed the
impact of the New Labour Codes and recognised total expenses of '' 4.22 Millions as per actuarial valuation reports for
the year ended 31st March, 2026. The Management will continue to track and evaluate the impact of the rules notified
by the Central/State Government post 31st March, 2026 and consider the appropriate accounting effect in the relevant
period, as needed.
59 The Board of Directors has proposed a dividend of '' 0.25 per equity share (5%) for the financial year ended 31st March,
2026, which is subject to the approval of shareholders at the ensuing Annual General Meeting. This dividend was
declared after the reporting date and does not constitute a liability as at 31st March, 2026 (reporting date). Accordingly,
no adjustment has been made in the financial statements. The proposed dividend, if approved, will result in an outflow
of approximately '' 2,56,80,865.
60 The Company has used accounting software systems for maintaining its books of account for the financial year ended
31st March, 2026 which have a feature of recording audit trail (edit log) facility and the same has operated throughout
the year for all relevant transactions recorded in the software systems. There is no instances of the audit trail feature
being tampered with was noted in respect of the above accounting softwares. Additionally, the audit trail has been
preserved by the Company as per the statutory requirements for record retention where such feature was enabled.
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