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
22nd 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 broken the ' 300
Crores mark also. It has a healthy profitability record over
the years.
The Company made an Initial Public Offer (IPO) of 64,80,000
Equity Shares of face value of ' 10 each at an issue price of
' 147/- per share (Including share premium of ' 137/- per
share) amounting to ' 9,525.60 Lakhs which was completed
in May 2024. The Equity Shares of the Company were listed
on NSE Emerge Platform on 03rd June 2024.
The Company has now broken the ' 350 Crores mark
in terms of topline and also achieved its highest ever
profitability for FY 2024-25. The deployment of funds of IPO
for a major expansion had been initiated and the same is
expected to be completed in coming year. The Company
expects even higher revenues and profits as the expanded
capacity starts getting utilized from the coming year.
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. Use of Estimates:
The preparation of financial statements in conformity with
Indian GAAP requires the management to make estimates
and assumptions that affects the reported amount of
assets and liabilities on the date of the financial statements
and the reported amount of revenues and expenses during
the reporting period. Differences between the actual results
and estimates are recognized in the period in which the
results are known/materialized.
III. 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%.
IV. 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.
V. 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.
VI. 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, Rent, Discount
etc. are accounted on accrual basis (depending on
certainty of realization) and disclosed under the head
"Other Income".
VII. 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 ore items or 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.
VIII. 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 forwards
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. 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 and/or receipts are recognized as an expense
and/or income in the Statement of Profit and Loss on
accrual basis.
XII. 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.
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