1. Company overview
HBL Engineering Limited ("HBL" or "The Company") is a public
limited company incorporated and domiciled in India and
has its registered office at Hyderabad, Telangana State, India.
The Company has its primary listings on the BSE Limited
and National Stock Exchange of India Limited in India. The
financial statements were reviewed by the Audit Committee
in its meeting held on 23rd May 2026 and approved by the
Company's Board of Directors at the meeting held on 23rd
May 2026.
The principal activities of the Company comprise of
manufacturing of different types of products including
Batteries, Railway Electronics and other products. The
Company is also engaged in service activities related to the
above products.
2. Statement of compliance
These standalone financial statements have been prepared
in accordance with Indian Accounting Standards (referred to
as "Ind AS") as prescribed under section 133 of Companies
act 2013 read with companies (Indian accounting standards)
rules as amended from time to time.
3.1 Basis of preparation
The financial statements have been prepared on the
historical cost convention and on an accrual basis, except
for the following material items that have been measured
at fair value as required by relevant Ind AS:
i) Certain financial assets and liabilities (refer accounting
policy on financial instruments);
ii) Defined benefit and other long-term employee benefits
iii) Provision for warranties
iv) Extended Producer Responsibility (EPR)
iv) Lease liability on right of use assets
3.2 Functional and presentation currency
The financial statements are presented in Indian rupees,
which is the functional currency of the Company and the
currency of the primary economic environment in which the
Company operates. All financial information presented in
Indian rupees has been rounded off to the nearest crores of
rupees except data relating to shares.
3.3 Operating cycle:
Based on the nature of products / activities of the Company
and the normal time between acquisition of assets and their
realization in cash or cash equivalents, the Company has
determined its operating cycle as 12 months for the purpose
of classification of its assets and liabilities as current and non¬
current.
3.4 Use of judgments, estimates and assumptions
The preparation of standalone financial statements are
in confirmity with the recognition and measurement
principles of Ind As requires management of the company
make estimates and judgements that effect the reported
balances of Assets and Liabilities, disclosures of contingent
liabilities as at the date of standalone financial statements
and reported amounts of income and expenses for the
periods presented. Estimates and underlying assumptions
are reviewed on a perodic basis. Revisions to accounting
estimates are recognised in the period in which estimates
are revised and future periods are effected.
The company uses the following critical accounting
judgements, estimates and assumptions in the preparation
of its standalone financial statements.
3.4 a Revenue recognition
i) Revenue from contracts with customers that meet the
recognition criteria under paragraph 9 of Ind AS 115
are recognised when (or as) a performance obligation
is satisfied by transferring a promised good or service
to a customer, for the amount of the transaction price
that is allocated to that performance obligation.
ii) The company exercises judgement for identification of
performance obligations, determination of transation
price, allocation of transation price to each distinct
performance obligation and determining whether the
performance obligation is satisfied at a point in time
or over a period of time. These judgements have been
explained in detail under the note on revenue. (refer
note no. 32)
3.4 b Useful life, depreciation method and residualvalues of Property Plant and Equipment
The company reviews the useful life, depreciation
methods and residual values of property, plant and
equipment at the end of each reporting period. This
reassessment may result in change in depreciation
expense in future periods (refer note no.5).
3.4 c Employee benefits
The accounting of employee benefits in the nature
of defined benefit requires the company to use
assumptions. These assumptions have been explained
under employee benefit note (refer note no. 36)
3.4 d Leases
The company evaluates if an arrangement qualifies be
a lease as per requirements of Ind As 116. Identification
of lease requires significant judgement. The company
uses significant judgement in assessing the lease
term (including anticipated renewals) and applicable
discount rate. (refer note no. 9)
3.4 e Impairment of investments/intangible assets
The company reviews its carrying value of investments
and Intangible Assets carried at cost (net of impairment,
if any) annually or more frequently when there is
indication for impairment. If the recoverable amount
is less than its carrying amount the impairment loss is
accounted in the statement of profit and loss account.
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