1. GENERAL INFORMATION OF THE COMPANY
The Company was originally incorporated in the November 2006 as Bravil Powercore Private Limited with the principal objects of dealing in Transformer Lamination and Cores. Subsequently, before commencement of business, the Company changed its name to Vilas Transcore Private Limited on 15/03/2007. The Company then took over the running business of M/s. Vilas Transcore, a proprietory concern, of current Managing Director, Mr. Nilesh Patel, w.e.f. 01.04.2007.
Thereafter pursuant to shareholder resolution dated 22th Feb 2011 the Company was converted to a "Limited" Company with fresh Certificate of Incorporation received on 9th April 2011. Since then the Company has been functioning as a Limited Company.
The Company is at present mainly engaged in business of manufacturing of CRGO Laminations, Cores and Coils. The Company has been consistently grossing more than ' 100 Crores since past many years and has now broken the ' 300 Crores mark also. It has a healthy profitability record over the years.
The Company filed a Draft Red Herring Prospectus on 31st January, 2024 for its proposed Initial Public Offer (IPO) on the MSME Platform of NSE. The approval of the same was received from NSE in May, 2024 and subsequently the Company completed its Initial Public Offer (IPO) of 100% fresh issue of 64,80,000 equity shares of Face Value of ' 10 each at issued at a price of ' 147 per share aggregating to ' 9525.60 lacs. The IPO was fully subscribed in the IPO and the Equity Shares of the Company were listed on NSE Emerge Platform on 3rd June, 2024. The Company has completed its Initial Public Offer (IPO) and accordingly the Company's equity shares are listed on NSE Emerge Portal on 03rd June 2024.
2. SIGNIFICANT ACCOUNTING POLICIES
I. Method of Accounting:
The Financial Statements are prepared on accrual basis of accounting, following historical cost convention, in accordance with the provisions of the Companies Act, 2013 ('the Act'), accounting principles generally accepted in India and comply the accounting standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. The Accounting Policies have been consistently applied by the Company and are consistent with those used in the previous year.
II. Property, Plants and Equipment's:
• Property, Plants and Equipment's are stated at their cost of acquisition less accumulated depreciation. The cost of acquisition includes freight, installation cost, duties, taxes and other incidental expenses, identifiable with the asset, incurred during the installation/construction stage in order to bring the
assets to their working condition for intended use, including borrowing costs capitalized, if any, but are net of Input Tax Credits (CENVAT, GST ITC and VAT) availed for the relevant element in the Cost.
• Depreciation on assets is being provided on the Straight-Line Method on the basis of useful lives specified in Part C of Schedule II to the Companies Act, 2013.
• In case of those assets which were fully depreciated following the provisions of the Companies Act, 1956 and where such assets are in usable condition, the residual values of the said respective assets are considered at the maximum rate of 5%.
III. Inventories:
• Raw Materials are valued 'at Cost' or Net Realisable Value, whichever is lower on FIFO basis. 'Cost' includes all duties, taxes & other expenses incurred to bring the inventories to their present location and condition.
• Finished products are valued at lower of cost or net realizable value.
• Semi-Finished goods have been valued at Raw Material cost increased by a proportion of overheads in consonance with the stage of completion as certified by the management.
• Stock of Scrap is value at its net realizable value.
IV. Employee Benefits:
• Employee Benefits comprise short term as well as long term defined benefit as well as defined contribution plans.
• Contributions to Provident Fund and Employee State Insurance are defined contributions. The Company's Contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. There are no further obligations beyond the periodic contributions.
• Retirement Benefits in form are Gratuity are defined benefit obligations and are provided for on the basis of actuarial valuation using projected unit credit method as at the balance sheet date. Actuarial gain/losses are immediately taken to the Statement of Profit and Loss and are not deferred.
• Leave Encashment, though a defined benefit obligation, falls under short-term compensated absences in terms of the policy of the Company and is provided for based on the leave standing to the credit of the employees as at the end of the year.
V. Sales/Turnover and Income Recognition:
• Revenue is recognized on transfer of property in goods or on transfer of significant risks and rewards of ownership to the buyer, for a consideration, without the seller retaining any effective control over the goods.
• Sales are accounted on dispatch of goods (which generally coincides with the transfer of ownership) and are exclusive of GST.
• Other items of income including Interest, Discount etc. are accounted on accrual basis (depending on certainty of realization) and disclosed under the head "Other Income".
VI. GST and Input Tax Credit:
• Purchases and Sales are accounted exclusive of GST and net of recoveries, if any.
• GST is a destination-based tax and is levied at the point of supply. It is collected on sale of goods and services on behalf of Government and is remitted by way of payment or adjustment of credit on input goods or services.
• Accordingly, Purchases & Sales are accounted net of GST. Similarly, other items of expenditure on which credit for GST is available or items of revenue on which GST is chargeable are also accounted net of GST elements.
• GST Accounts are created under Balance Sheet Groupings for liability towards GST collected on Sales/Other Revenue and asset towards GST paid on purchases or other expenditure for which credit is available. For Each month/quarter, as applicable, the GST liability is worked out after offsetting the credit available against the GST collected.
• The Net GST Account appears in the Balance Sheet as a Liability under Current Liabilities - Statutory Liabilities, if any amount is payable as at the year-end after offsetting the available credit and as an Asset under Loans & Advances - Indirect Taxes Recoverable from Statutory Authorities if credits remain unutilized after adjusting the amount payable.
VII. Foreign Currency Transactions:
Transactions in foreign currency, to the extent not covered by forwards contracts, are recorded in Indian Rupees at the exchange rate prevailing on the date of the transactions. Exchange gains or losses on settlement, if any, are treated as income or expenditure respectively in the Statement of Profit and Loss. Liabilities in foreign currency as well as receivables in foreign currency as on the date of the Balance Sheet have been restated into Indian rupees at the rates of exchange prevailing as on the date of Balance Sheet.
VIII. Derivatives:
• The Company is exposed to foreign currency fluctuations on foreign currency assets and forecasted cash flows denominated in foreign currency. The Company tries to limit the effects of foreign exchange rate fluctuations by following risk management policies including use of derivatives. For this the Company enters into forward exchange contracts, where the counter-party is a Bank. Theses forward contracts are not used for trading or speculation purposes.
• In case of forward contracts the gain or loss arising on exercise of option or settlement or cancellation are recognized in the Statement of Profit and Loss for the period as Exchange Rate Difference. The forward contracts outstanding as at the balance sheet date, if any, are marked-to-market and corresponding exchange gain or loss recognized on the same as Exchange Rate Difference.
• In case of derivative transactions in currency futures, the net gain or loss is recognized in the Statement of Profit and Loss on settlement. In case of outstanding contracts as at the balance sheet date, the same are also marked-to-market and corresponding gain/loss recognized on the same as Exchange Rate Difference.
IX. Borrowing Costs:
According to AS-16, the borrowing costs directly attributable to the acquisition of qualifying assets are to be capitalized for the period until the asset is ready for its intended use. A qualifying asset being, an asset that necessarily takes a substantial period of time to get ready for its intended use. Other borrowing costs are to be recognized as an expense in the period in which they are incurred.
X. Impairment of Assets:
Assessment of Impairment of Assets (as covered under AS-28 Impairment of Assets) is done as at the Balance Sheet Date considering external and internal impairment indicators. If there is an indication that an asset may be impaired, its recoverable amount is estimated and the impairment loss duly provided for.
XI. Accounting for Taxes on Income:
• Provision for taxation for the year under report includes provision for current tax as well as deferred tax.
• Provision for Current tax is made, based on tax estimated to be payable as computed under the various provisions of the Income Tax Act, 1961.
• Deferred tax is recognized, subject to prudence, on timing differences between taxable income and accounting income that originate during the year and are capable of being reversed in one or more subsequent periods.
Deferred tax assets are recognized only to the extent that there is a reasonable certainty that future taxable income will be available against which such deferred tax assets can be realized. Deferred Tax Liabilities/Assets are quantified using the tax rates and tax laws enacted or substantively enacted as on the balance sheet date.
XII. Leases:
Leases are classified as operating leases where the lesser effectively retains substantially all the risks and benefits of the ownership of the leased assets. Operating lease payments are recognized as an expense in the Statement of Profit and Loss on accrual basis.
XIII. Contingencies/Provisions:
Provisions requiring a substantial degree of estimation in measurement are recognized, if in the opinion of the Management, there is a probability that a present obligation as a result of past events will result in an outflow for the Company in the future. Contingencies, the outcome of which is not certain, have been disclosed in these notes as Contingent Liabilities. Contingent Assets are neither recognized nor disclosed in the financial statements.
XIV. Prior Period and Extra Ordinary items and Changes in Accounting Policies, having a material bearing on the financial affairs of the Company are disclosed separately.
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