Click it and Unblock the Notifications
అకౌంట్స్ గమనికలుSteamhouse India Ltd.
14. Provisions, Contingent Liabilities and Contingent Assets -
Provisions are recognized for when the Company has at present, legal or contractual obligation as a result of past events, only
if it is probable that an outflow of resources embodying economic outgo or loss will be required and the amount involved can
be measured reliably. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to
the passage of time is recognized as a finance cost.
Contingent liabilities being a possible obligation as a result of past events, the existence of which will be confirmed only by
the occurrence or non- occurrence of one or more future events not wholly in control of the Company are not recognized in
the accounts. The nature of such liabilities and an estimate of its financial effect are disclosed in notes to the these financial
statements.
Contingent assets are not recognized in the financial information. However, the nature of such assets and an estimate of its
financial effect are disclosed in notes to these financial statements.
Employee benefits include gratuity, compensated absences, contribution to provident fund, employees'' state insurance and
superannuation fund.
Short Term Employee Benefits
Employee benefits payable wholly within twelve months of rendering the services are classified as short-term employee benefits
and recognized in the period in which the employee renders the related service. These are recognized at the undiscounted
amount of the benefits expected to be paid in exchange for that service.
Post-Employment Benefits
Retirement benefits in the form of provident fund, state insurance and superannuation fund are defined contribution schemes
where the Company''s legal or constructive obligation is limited to the amount that it contributes to a separate legal entity. The
Company recognizes contribution payable to the funds as an expense, when an employee renders the related service.
The Company operates a defined benefit gratuity plan. The cost of providing benefits under the defined benefit plan is
determined based on actuarial valuation, carried out by an independent actuary, using the projected unit credit method. When
the calculation results in a potential asset for the Company, the recognized asset is limited to the present value of economic
benefits available in the form of any future refunds from the plan or reductions in future contribution to the plan. The liability
for gratuity is funded annually to a gratuity funds maintained with the Life Insurance Company Limited.
Re-measurements gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognized immediately in the Standalone Balance Sheet with a corresponding debit or credit to retained earnings through
other comprehensive income in the period in which they occur. Re-measurements are not reclassified to Standalone statement
of profit or loss in subsequent periods. Net interest is calculated by applying the discount rate to the net balance of defined
benefit liability or asset.
The Company recognizes the following changes in the net defined benefit obligation as an expense in the Standalone statement
of profit and loss in the line item "Employee Benefits Expense":
- Service cost including current service cost, past service cost, gains and losses on curtailments and non-routine
settlements; and
- Net interest expense or income.
Compensated absences
The Company''s policy permits employees to accumulate and carry forward a portion of unutilized compensated absences and
utilize them in future periods or receive cash in lieu thereof in accordance with the terms of such policy. The expected cost
of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each
reporting period.
Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year.
Current and deferred taxes are recognized in Standalone Statement of Profit and Loss, except when they relate to items that are
recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized
in other comprehensive income or directly in equity, respectively.
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the
Income-Tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or
substantially enacted, at the reporting date.
Current income tax relating to items recognized outside the Standalone statement of profit and loss is recognized outside the
Standalone statement of profit and loss (either in other comprehensive income (OCI) or in equity).
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax is recognized using the Standalone Balance Sheet approach. Deferred tax assets and liabilities are recognized for
deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount,
except when the deferred tax arises from the initial recognition of an asset or liability in a transaction that is not a business
combination and affects neither accounting nor taxable profit or loss at the time of the transaction.
Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized. The
carrying amount of unrecognized deferred tax assets are reviewed at each reporting date to assess their recoverability and
corresponding adjustment is made to carrying values of deferred tax assets in these financial statements.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised
or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting
date.
Deferred tax assets and liabilities are offset where a legally enforceable right exists to offset current tax assets and liabilities
and the deferred taxes relate to the same taxable entity and the same taxation authority. Net outstanding balance in Deferred
Tax account is recognized as deferred tax liability/asset.
Revenue from contract with customer is recognized upon transfer of control of promised products or services to customers in
an amount that reflects the consideration which the Company expects to receive in exchange for those products or services.
Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts and other incentives,
if any, as per contracts with the customers.
The specific recognition criteria from various stream of revenue are described below:
Revenue from the sale of goods is recognized when the control of the goods has been passed to the customer, generally steam
passes through Steam Pipeline on continuous basis based on the requirements of the customer. Sales are billed fortnightly
for most of the consumers. However, for some of the consumers, it is billed at the end of each month. Price of the Steam is
variable, which is in line with the variability of Coal Prices. Revenue is booked at the price which mutually agreed with the
consumers.
Rendering of Services
Revenue from services rendered is recognized when the work is performed and as per the terms of agreement.
Revenue on account of construction services rendered in connection with Build-Operate-Transfer (BOT) projects undertaken
by the Company is recognised during the period of construction using percentage of completion method. After the completion
of construction period, revenue from steam is recognised based on price which mutually agreed with the consumers
Late Payment Charges
Revenue in respect of late payment charges on delayed realizations from customers and cheque bounce charges, if any, is
recognized on grounds of prudence and based on certainty of collection.
Interest Income
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that
asset''s net carrying amount on initial recognition.
Other Non-Operating Income
Donations received in kind are measured at fair value on the date of receipt and recognised as income only upon their utilisation.
Donation made with a specific direction that they shall form part of the corpus fund or endowment fund of the Company are
classified as such, and are directly reflected as Trust Fund receipts in the Standalone Balance Sheet.
Specific Project Grants are recognised as Income based on actual amount spent in a year on that project. Such income is
booked only where there is certainty of Grant being sanctioned / approved in future and necessary entries are passed in
accounts. Grants received for specific projects remaining unutilised at the year end are shown as Grant Unutilized and on
completion of Projects are returned back to donor, if the terms of grant indicate the same.
18. Foreign Currencies Transactions and Translation -
Functional and presentation currency
The financial information are presented in Indian Rupee (INR), which is entity''s functional and presentation currency.
Transactions and Balances
Foreign currency transactions are translated into the functional currency, for initial recognition, using the exchange rates at the
dates of the transactions.
All foreign currency denominated monetary assets and liabilities are translated at the exchange rates on the reporting date.
Exchange differences arising on settlement or translation of monetary items are recognized in Standalone Statement of Profit
and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign
currency borrowings that are directly attributable to the acquisition or construction of qualifying assets which are capitalized
as cost of assets. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
19. Share-based payments - Employee stock option Scheme (ESOP''s)
The fair value of equity instruments given in share options granted under Employee Stock Option Plan is recognized as an
employee benefits expense with a corresponding increase in the equity. The total amount to be expensed is determined by
reference to the fair value of the shares, derived using Discounted Cash Flows model. The total expense is recognized over
the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each
period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and
service conditions. It recognizes the impact of the revision to original estimates, if any, in the Standalone Statement of Profit
and Loss, with a corresponding adjustment to the equity. Upon exercise of share options, the proceeds received are allocated
to the share capital up to the par value of the shares issued with any excess being recorded as securities premium.
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily takes
a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. Borrowing
costs consist of interest and transaction costs that an entity incurs in connection with the borrowing of funds. Transaction
costs in respect of long-term borrowings are amortized over the tenor of respective loans using effective interest method.
All other borrowing costs are expensed in the period in which they are incurred. Borrowing costs also includes exchange
differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the borrowing costs.
Commencement of capitalization
Capitalization of borrowing cost as part of cost of a qualifying asset shall begin on the commencement date. The commencement
date for capitalization is the date when the entity first meets all of the following conditions:
i) it incurs expenditure for the asset;
ii) it incurs borrowing costs; and
iii) it undertakes activities that are necessary to prepare the asset for its intended use or sale.
Cessation of capitalization
Cessation of capitalization shall happen when substantially all the activities necessary to prepare the qualifying asset for its
intended use or sale are completed.
21. Non-Current Assets Held for Sale -
The Company classifies assets and operations as held for sale / distribution to owners or as discontinued operations if their
carrying amounts will be recovered principally through a sale / distribution rather than through continuing use. Classification
as a discontinued operations occurs upon disposal or when the operation meets the below criteria, whichever is earlier.
Non-Current Assets are classified as held for sale only when both the conditions are satisfied -
i. The sale is highly probable, and
ii. The asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual
and customary for sale of such assets.
Non-current assets which are subject to depreciation are not depreciated or amortized once those classified as held for sale.
A discontinued operation is a component of the Company''s business, the operations of which can be clearly distinguished
from those of the rest of the Group and
i. is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or
ii. is a subsidiary acquired exclusively with a view to resale.
Non-current assets held for sale / distribution to owners and discontinued operations are measured at the lower of their
carrying amount and the fair value less costs to sell / distribute. Assets and liabilities classified as held for sale / distribution
are presented separately in the Standalone Balance Sheet. The results of discontinued operations are excluded from the overall
results of the Company and are presented separately in the Standalone statement of profit and loss. Also, the comparative
Standalone statement of profit and loss is re-presented as if the operations had been discontinued from the start of the
comparative period.
Basic EPS is computed by dividing the profit or loss attributable to the equity shareholders of the Company by the weighted
average number of equity shares outstanding during the year. Diluted EPS is computed by dividing the profit or loss attributable
to the ordinary equity shareholders adjusted for dividend, interest and other charges to expense or income (net of any
attributable taxes) relating to dilutive potential equity shares, by the weighted average number of equity shares for deriving the
basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion
of all the dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity
would decrease the net profit per share from continuing ordinary operations.
23. Standalone Statement of Cash flows -
Standalone Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item
of income or expenses associated with investing or financing cash flows. The cash from operating, investing and financing
activities of the Company are segregated.
The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies,
which uses accounting software for maintaining its books of account, shall use only such accounting software which has a
feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account
along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company has used accounting software for maintaining its books of account which has a feature of audit trail (edit log)
facility and the same was enabled throughout the year for all relevant transactions recorded in the software.
25. Recent accounting pronouncements
A. Standards and amendments effective from 1 April 2025
The Ministry of Corporate Affairs (MCA) has notified certain amendments to Ind AS. Key amendments relevant to the
Company are summarised below:
⢠Ind AS 1 - Classification of Liabilities as Current or Non-current: The amendment clarifies the meaning of a right to
defer settlement, requires that such right must exist at the end of the reporting period, and confirms that classification
is not affected by the likelihood of exercising this right. It also clarifies that the terms of a convertible liability affect
classification only if the embedded derivative is equity classified.
The amendment is to be applied retrospectively in accordance with Ind AS 8. The Company has evaluated the
impact and determined that these amendments do not have a material effect on the classification or presentation of
liabilities for the year ended March 31, 2026.
⢠Ind AS 7 and Ind AS 107 - Disclosures: Supplier Finance Arrangements:
These amendments require enhanced disclosures to help users of financial statements understand the effects of
supplier finance arrangements on an entity''s liabilities, cash flows and exposure to liquidity risk.
The amendments are effective for annual periods beginning on or after April 01, 2025. Comparative information
for earlier periods and disclosures for interim periods ending on or before March 31, 2026 are not required. These
amendments do not have an impact on recognition or measurement in the current financial statements.
⢠Ind AS 12 - International Tax Reform: Pillar Two Model Rules:
The amendment introduces a mandatory temporary exception from recognising and disclosing deferred tax assets
and liabilities related to Pillar Two income taxes. This exception is applicable immediately and retrospectively, with
additional disclosure requirements effective from April 01, 2025 (but not for interim periods ending on or before
March 31, 2026). These amendments do not have an impact on recognition or measurement in the current financial
statements.
B. Standards and amendments issued but not yet effective
Further amendments to Ind AS 1 - Non-current Liabilities with Covenants specify that if a covenant breach existing at
the reporting date is rectified after the reporting date, such rectification shall be treated as a non-adjusting event under
Ind AS 10. These amendments are effective for annual reporting periods beginning on or after April 1,2026. The Company
will evaluate the implications of these amendments upon their applicability. Based on the preliminary assessment, no
material impact is expected on the recognition or measurement of liabilities.
The Company''s activities expose it to market risk, liquidity risk, credit risk and commodity risk.
A. Liquidity Risk -
Liquidity risk refers to insufficiency of funds to meet the financial obligations. Liquidity risk management implies maintenance
of sufficient cash and the availability of funding through an adequate amount of committed credit lines to meet obligations
when due.
Maturities of financial liabilities:
The Company''s remaining contractual maturity for its financial liabilities with agreed repayment periods is given below. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is
based on the earliest date on which the Company may be required to pay.
The inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to derivative
financial liabilities held for risk management purposes and which are not usually closed out before contractual maturity.
The concentration of credit risk is very limited due to the fact that the customer base is large and widely dispersed and
secured with security deposit. Credit risk is the risk of financial loss to the Company if a customer or counter-party to a
financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from
customers. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The Company is dependent on the domestic market for its business and revenues. However, management also considers
the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and
country in which customers operate. Exposures to credit risk the Company is exposed to the counterparty credit risk arising
from the possibility that counterparties might fail to comply with contractual obligations. This exposure may arise with
regard to unsettled amount. The Company''s credit policies and practices with respect to distribution areas are designed to
limit credit exposure by collecting security deposits prior to providing utility services or after utility service has commenced
according to applicable regulatory requirements.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness
of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind
AS 109, the Company uses expected credit loss model to assess impairment loss or gain. The Company uses a matrix to
compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external
and internal credit risk factors and Company''s historical experience for customers;
⢠The Company has made provision on expected credit loss on trade receivables and other financials assets, based on the
management estimates.
⢠Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and financial
institutions with high credit ratings assigned by domestic credit rating agencies.
With the entity having varied geographical spread of revenue, and with the price being determined, primarily by demand and
supply, the entity is not exposed to any market risk that require sensitivity analysis akin to any specific market such that profit
or loss or equity of the entity would get affected by changes in the relevant risk variable.
Currency Risk -
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the
EURO Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated
in a Company that is not the Company''s functional currency. The risk is measured through a forecast of highly probable
foreign currency cash flows. The objective of the hedges is to minimise the volatility of the cash flows of highly probable
forecast transactions by hedging the foreign exchange inflows on regular basis.
The commodity exposure is mainly on account of Coal, a substantial part of which is a pass through cost and hence the
commodity price exposure is not likely to have a material financial impact on the Company.
The Company have exposure to USD / INR exchange rate arising principally on account of import of coal. The Company
does not follow a policy of hedging for such exposures and actual rupee costs of import of coal are substantially passed on
to the consumers, because of which such commodity price exposure is not likely to have a material financial impact on the
Company.
The Company''s capital comprises equity share capital, surplus in the statement of profit and loss and other equity attributable
to equity holder.
The Company''s objectives when managing capital are to :
- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders, and
- maintain an optimal capital structure to reduce the cost of capital.
The Company monitors capital using debt-equity ratio, which is net debt divided by total equity. These ratios are illustrated
below :
Employee Gratuity fund scheme is for the purpose of the Defined Benefits. The Company is making annual contributions for
gratuities to funds administered by trustees and managed by insurer (LIC) for amounts notified by the insurer. The present
value of obligation under such defined benefit plan is determined based on actuarial valuation carried out by an independent
actuary.
The Company has paid premium under Staff Gratuity EGGS Scheme with the LIC. Accordingly, all the required disclosures are
provided in the standalone financial statements to the extent details available from actuarial valuation report and LIC gratuity
valuation report respectively.
These plans typically expose the Company to actuarial risks such as: Investment risk, interest rate risk, longevity risk and
salary risk.
Concentration risk:
Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all
the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting year on government bonds. If the return on plan asset is below this rate, it will create
a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and
other debt instruments.
The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an
increase in the salary of the members more than assumed level will increase the plan''s liability.
45 Employee''s share based payment plans
Steamhouse India Limited Employee Stock Option Plan 2024
During the year ended March 31, 2025, the Company implemented its Employee Stock Option Plan 2024 ("ESOP 2024" or
"ESOP Scheme" or "the Plant"). The plan was originally approved by the members of the Company on July 5th, 2024 and
subsequently options were granted on January 18th, 2025 which were approved by Nomination and Remuneration Committee
of the Board of Directors. The plan enables grant of stock options to the eligible employees of the Company not exceeding
11,29,884 options, which is 0.50% of the paid-up equity share capital of the Company as on March 31, 2026. Further, the stock
options to any single employee under the Plan shall not exceed 0.50% of the issued capital of the Company, at the time of
grant of options, during the tenure of the Plan, subject to prior specific approval from members of the Company through a
special resolution to this effect is obtained.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be
correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in
calculating the Defined Benefit Obligation.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
49 Additional regulatory information
(i) The Company has not revalued its property, plant and equipment and intangible assets during the current year.
(ii) The Company do not have any benami property, where any proceeding has been initiated or pending against the Company
for holding any benami property.
(iii) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lenders.
(iv) The Company do not have any transactions with companies struck off.
(v) The Company does not have any charge or satisfaction which is yet to be registered with Registrar of companies beyond
the statutory period.
(vi) The Company has not traded or invested in crypto currency or virtual currency during the current financial year or any of
the previous financial years.
(vii) The Company has not entered into any scheme of arrangement as per sections 230 to 237 of the Companies Act, 2013.
(viii) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (intermediaries) with the understanding that the intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company (ultimate beneficiaries) or
b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(ix) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the funding party (ultimate beneficiaries) or
b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
(x) The Company has borrowings from banks and financial institutions on the basis of security of current assets. However,
the Company is not required to file any quarterly returns or statements with such banks or financial institutions.
(xi) The Company has complied with clause (87) of section 2 of the Act read with Companies (Restriction on number of
Layers) Rules, 2017 with respect to layer of companies.
(xii) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961).
(xiii) Loans or advances in 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 persons are as follows:
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
Sign in with Google