I. General Corporate Information.
Sri KPR Industries Limited ('Sri KPR') is a Public Limited company incorporated and domiciled in
India, having its registered office at Secunderabad, Telangana, India. The equity shares of Sri KPR
are listed on the Bombay Stock Exchange (BSE) in India.
Sri KPR was engaged in the business of manufacture and sale of Asbestos Cement (AC) Pressure
Pipes and Couplings. The plant and machinery relating to this division has been disposed of and this
segment is now holding stocks which are in the process of being sold. Accordingly, the company has
primarily two segments viz., Pipes Division and Wind Power Division. The pipes segment will be
discontinued once the stocks are sold. Wind Power is generated through its own Windmills located in
the states of Andhra Pradesh and Madhya Pradesh.
Sri KPR has a wholly owned subsidiary viz., Sri KPR Infra & Projects Limited engaged in the
business of Civil Contracts. Sri KPR Infra & Projects Limited has a 100% subsidiary viz., Sri Pavan
Energy Private Limited, which is engaged in Wind Power generation.
II. Compliance with Indian Accounting Standards (Ind AS).
The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) as
notified under section 133 of the Companies Act 2013 (the Act), read with Companies (Indian
Accounting Standard) Rules 2015. The company has uniformly applied all the applicable accounting
policies during the periods presented.
III. Overall Considerations.
The financial statements have been prepared using significant accounting policies that are in effect as
at March 31, 2025 as presented in detail hereunder.
IV. SIGNIFICANT ACCOUNTING POLICIES
A. System of Accounting:
i. The company follows mercantile system of accounting and recognizes Income and Expenditure
on accrual basis.
ii. The Financial statements have been prepared in all material aspects with Indian Accounting
Standards (Ind AS) prescribed under the provisions of the Companies Act, 2013.
iii. Financial statements are prepared on historical cost basis and as a going concern.
B. Revenue Recognition:
i. Sales of goods are recognized at the point of dispatch of goods to customers and Gross Sales
are inclusive of duties and taxes. On commencement of GST, sales are net of GST.
ii. Income from Sale of Wind Power is recognized based on units measured and certified by the
concerned State Authorities.
iii. Dividends are recognized as income of the year in which the same are received.
C. Property, Plant & Equipment and Depreciation
i. Property, Plant & Equipment acquired by the company are reported at acquisition value,
with deductions for accumulated depreciation and impairment losses, if any.
ii. The acquisition cost includes the purchase price (excluding refundable taxes) and expenses
directly attributable to the asset to bring it to the place of intended use and working
condition.
iii. Depreciation is provided in accordance with Schedule II of the Companies Act, 2013 for the
remaining useful life of the asset as far as the existing assets are concerned. With respect to
additions, depreciation is provided on the basis of the useful life of the assets as prescribed
by the said Schedule II.
iv. A 2MW capacity Wind Electric Generator (Wind Mill) belonging to the company, situated at
Chandgarh Wind Park, Dewas District Madhya Pradesh was damaged during the year ended
March 31, 2024. The company claimed damages of Rs.25.98 Crores towards replacement of
the damaged machine and an additional Rs.6.91 Crores towards generation loss from the
Original Equipment Manufacturer who is also the O & M Contractor. The matter is presently
referred to Arbitrator by the Madras High Court. Pending outcome of the Arbitration
proceedings, no provision is made for the losses on account of the damaged equipment.
v. The depreciation charged to the statement of profit and loss in the year 2023-24 is reversed
during the current year. The adjustment column in Note 2 - Property, plant & Equipment,
represents this reversal.
D. Investments
Non-current investments are stated at cost. Traded shares are stated at cost or market value
whichever is lower. Mutual Fund investments are stated at lower of cost or fair value
E. Inventories
Stocks are valued at cost or realizable value whichever is lower. Cost of finished goods for this
purpose is arrived at on absorption costing.
F. Staff Benefits
Provident Fund Contributions and other staff benefits are accounted on accrual basis. The
company is in the process of ascertaining appropriate Group Gratuity Scheme for subscription
and the premium / contributions towards the same will be charged to revenue as and when paid.
Pending the finalization of the scheme gratuity payments if any, made to the employees is
charged to revenue as and when paid.
G. Borrowing Costs:
Costs in respect of borrowings for acquiring / constructing fixed investments, relating to the
period they are operational, are capitalized to such investments. Borrowing costs relating to
period after the commencement of operations of the project are charged to revenue.
H. Current and Deferred Tax
Accounting treatment in respect of current and deferred tax is in accordance with Indian
Accounting Standard 12 (Ind AS 12): "Income Taxes ".
I. Impairment of Assets:
The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication
of impairment based on internal / external factors. An impairment loss will be recognized
wherever the carrying amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the asset's net selling price and value in use. In assessing the
value in use, the estimated future cash flows are discounted to the present value using the
weighted average cost of capital. In carrying out such exercise, due effect is given to the
requirements of Schedule II of the Companies Act, 2013. Refer also note C (iv) and (v)
hereinabove.
J. Earnings Per Share (EPS):
This is calculated by dividing the net profit after tax (PAT) for the period attributable to equity
shareholders, by number of shares outstanding at the end of the year. In case there are any
changes in the equity during the year, EPS would be calculated on the weighted average number
of shares outstanding during the period including adjustments of bonus issue, if any.
K. Dividends
Dividends on equity shares are subject to approval at the annual general meeting and are not
recognized as a liability as at the year end. Dividends, as and when paid are deducted from
accumulated free reserves.
V. Foreign exchange earnings & outgo: Nil.
VI. The details with respect to the dues under MSME Act are being furnished to the extent details are
available with the company. The company has written to its creditors seeking details of their
status under the MSME Act. However, there are no dues to the creditors that are more than one
year old.
|