1. COMPANY OVERVIEW
Talbros Engineering Limited (the ‘Company') is a public company in India and incorporated under the provisions of the
Companies Act, 1956. The company is engaged in manufacturing of Rear Axle Shafts. The company caters to both
international and domestic market. The company has its manufacturing plants at Plot No 74-75-76 and Plot no 70,
Sector-6, Faridabad-121006, Plot No 35-38 & 57, Industrial Area, Hathin, Palwal, Plot No. 3, Sector 5, Faridabad, Plot
No. 2, 20/4, Nepco Compound, Faridabad, Plot no 27, Sector 4, Faridabad and Plot No. 77 and Plot no 80, Sector 68,
IMT Faridabad.
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
2.1 Statement of Compliance
(i) These standalone financial statements are prepared on going concern basis following accrual system of
accounting and comply with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian
Accounting Standards) Rules, 2015 and subsequent amendments thereto, the Companies Act, 2013 (to the
extent notified and applicable).
(ii) These Financial Statements were approved for issue by the Board of Directors on 20.05.2025
2.2 Basis of measurement
The Ind AS Financial Statements have been prepared on a going concern basis using historical cost convention
and on an accrual method of accounting, except defined benefit plans which have been measured at actuarial
valuation as required by relevant Ind ASs.
2.3 Functional and presentation currency
These Ind AS Financial Statements are prepared in Indian Rupee which is the Company's functional currency.
All financial information presented in Rupees rounded off to Lakhs with two decimals
3. SIGNIFICANT ACCOUNTING POLICIES
These Financial Statements have been prepared in accordance with the Accounting policies, set out below and were
consistently applied to all the periods presented unless otherwise stated.
3.1 Revenue Recognition
a) Revenue is measured at the fair value of the consideration received or receivable, net of discounts, volume
rebates, outgoing sales taxes and other indirect taxes excluding excise duty. Revenue from sales is recognised
when all significant risks and rewards of ownership of the commodity sold are transferred to the customer which
generally coincides with delivery.
b) Export benefits are accounted on recognition of export sales. Dividend income is recognised when the right to
receive payment is established. Interest income is recognised using effective rate of interest method.
c) Interest income is recognised on accrual basis determined by the amount outstanding and the rate applicable
and when there is no significant uncertainty as to measurability or collectability exists.
3.2.1 Property, plant and equipment
Property, plant and equipment are stated at the cost of acquisition or construction less accumulated depreciation
and write down for impairment if any. Initial cost of property, plant and equipment comprises of its purchase
price, including import duties and non-refundable purchase taxes, attributable borrowing cost and any other
directly attributable costs of bringing an asset to working condition and location for its intended use. Expenditure
incurred after the property, plant and equipment have been put into operation, such as repairs and maintenance,
are normally charged to the statements of profit and loss in the period in which the costs are incurred.
3.2.2 Capital work in progress
Assets in the course of construction are capitalized in capital work in progress account. At the point when an
asset is capable of operating in the manner intended by management, the cost of construction is transferred to
the appropriate category of property plant and equipment
3.2.3 Depreciation
a) Depreciation on all fixed assets is charged on straight line method (SLM) over the estimated useful life of the
assets. Useful life of the assets is determined in accordance with schedule II to the Companies Act, 2013.
b) During the current year, depreciation has been charged on double and triple shift basis, as per actual running of
plants.
c) Depreciation is not recorded on capital work in progress until construction and installation are complete and
asset is ready for its intended use.
d) When a revalued asset is depreciated, difference between depreciation charged on the revalued amount and
the depreciation that would have been charged on the assets' original cost is transferred from Revaluation
Surplus Reserve.
3.2.4 Intangible assets
Intangible assets are recognized as per the criteria specified in Ind Accounting Standard 38 “ Intangible Assets”
and recorded at the consideration paid for acquisition, whenever acquired.
3.2.5 Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of
the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist
of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also
includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
3.2.6 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
having original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and such short-term
deposits.
3.2.7 Impairment of Non-financial assets
At the end of each year the company determines whether a provision should be made for impairment loss on
fixed assets by considering the indications that on impairment loss may have occurred in accordance with the
Ind AS 36 on impairment of assets issued by the Institute of Chartered Accountants of India. An impairment loss
is charged to statement of profit and loss in the year in which asset is identified as impaired when the carrying
value of the asset exceeds its recoverable value. The impairment loss recognized in prior accounting periods is
reversed if there has been a change in the estimate of recoverable amount.
3.2.8 Inventories
Cost of inventory comprise of cost of purchase, of conversion and other manufacturing overheads incurred in
bringing them to their respective present location and condition. Closing inventories have been valued as follows:
• Raw materials, Stores, Spares & Packing Material are valued at lower of cost or net realisable value. Cost
is determined on First in First Out (FIFO) basis.
• Finished goods and work in progress are valued at cost. Cost includes variable and fixed overheads
allocated to work in progress and finished goods
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