q) Provisions and contingencies
A provision is recognised when the company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation.
When the company expects some or all of a
provision to be reimbursed, the reimbursement
is recognised as a separate asset, but only when
the reimbursement is virtually certain. The
expense relating to a provision is presented
in the statement of profit and loss net of any
reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting
is used, the increase in the provision due to the
passage of time is recognised as a finance cost
in the statement of profit and loss.
A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond
the control of the Company or a present
obligation that is not recognized because it is
not probable that an outflow of resources will
be required to settle the obligation. A contingent
liability also arises where there is a liability
that cannot be recognized because it cannot
be measured reliably. The Company does not
recognize a contingent liability but discloses its
existence in the financial statements.
Contingent assets are not recognised in financial
statements, unless they are virtually certain.
However, contingent assets are disclosed where
inflow of economic benefits are probable.
Provisions, contingent liabilities and contingent
assets are reviewed at each balance sheet date.
r) Fair value measurement
Fair value is the price that would be received to
sell an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date. The fair value
measurement is based on the presumption that
the transaction to sell the asset or transfer the
liability takes place either:
• In the principal market for the asset or
liability, or
• I n the absence of a principal market, in the
most advantageous market for the asset or
liability
The company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair
value, maximising the use of relevant observable
inputs and minimising the use of unobservable
inputs.
• Level 1 — Quoted (unadjusted) market
prices in active markets for identical assets
or liabilities
• Level 2 — Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is directly or
indirectly observable
• Level 3 — Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is unobservable
For assets and liabilities that are recognised in
the financial statements on a recurring basis,
the company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest
level input that is significant to the fair value
measurement as a whole) at the end of each
reporting period.
For the purpose of fair value disclosures, the
company has determined classes of assets and
liabilities based on the nature, characteristics
and risks of the asset or liability and the level of
the fair value hierarchy.
s) Investment in subsidiaries
The Company has elected to recognize its
investments in subsidiaries at cost in accordance
with the option available in Ind AS 27, 'Separate
Financial Statements.
t) Financial instruments
A financial instrument is any contract that gives
rise to a financial asset of one entity and a
financial liability or equity instrument of another
entity.
Initial recognition and measurement
Financial instruments are initially recognised
when the entity becomes party to the contract.
Financial instruments are measured initially
at fair value adjusted for transaction costs that
are directly attributable to the origination of the
financial instrument where financial instruments
not classified at fair value through profit or loss.
Transaction costs of financial instruments which
are classified as fair value through profit or loss
are expensed in the statement of profit and loss.
However, trade receivables that do not contain
a significant financing component are measured
at transaction price.
Subsequent measurement of financial assets
For the purposes of subsequent measurement,
the financial assets are classified in the following
categories based on the company's business
model for managing the financial assets and the
contractual terms of cash flows:
• those to be measured subsequently at fair
value; either through OCI or through profit
or loss
• those measured at amortised cost
For assets measured at fair value, changes in fair
value will either be recorded in the statement
of profit and loss or OCI. For investments
in debt instruments, this will depend on the
business model in which investment is held.
For investments in equity instruments, this will
depend on whether the company has made
an irrevocable election at the time of initial
recognition to account for equity investment at
fair value through OCI.
The company reclassifies debt investments when
and only when its business model for managing
those assets changes.
Debt instruments at amortised cost
A 'debt instrument' is measured at the amortised
cost if both the following conditions are satisfied:
• The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and
• The contractual terms of the asset give rise
on specified dates to cash flows that are
solely payments of principal and interest
(SPPI) on the principal amount outstanding.
A gain or loss on a debt investment that is
subsequently measured at amortised cost and is
not part of hedging relationship is recognised in
the statement of profit and loss when the asset
is derecognised or impaired. Interest income
from these financial assets is included in finance
income using effective interest rate (EIR) method.
Debt instruments at fair value through other
comprehensive income (FVTOCI)
Assets that are held for collection of contractual
cash flows and for selling the financial assets,
where the assets' cash flows represent SPPI,
are measured at FVTOCI. The movements in
the carrying amount are recognised through
OCI, except for the recognition of impairment
gains and losses, interest revenue and foreign
exchange gain or losses which are recognised
in the statement of profit and loss. When the
financial asset is derecognised, the cumulative
gain or loss previously recognised in OCI is
reclassified from equity to the statement of profit
and loss and recognised in other gains/ losses.
Interest income from these financial assets is
included in other income using EIR method.
Debt instruments at fair value through profit or
loss (FVTPL)
Assets that do not meet the criteria for amortised
cost or FVTOCI are measured at FVTPL. A gain
or loss on debt instrument that is subsequently
measured at FVTPL and is not a part of hedging
relationship is recognised in the statement
of profit and loss within other gains/ losses in
the period in which it arises. Interest income
from these financial assets is included in other
income.
Equity investments
All equity investments in the scope of Ind AS
109 Financial Instruments are measured at fair
value. Equity instruments which are held for
trading are classified as at FVTPL. For all other
equity instruments, the company may make an
irrevocable election to recognise subsequent
changes in the fair value in OCI. The company
makes such election on an instrument-by¬
instrument basis. The classification is made on
initial recognition and is irrevocable.
If the company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends,
are recognized in OCI. There is no recycling of
the amounts from OCI to the statement of profit
and loss, even on sale of equity instrument.
Equity instruments included within the FVTPL
category are measured at fair value with all
changes recognised in the statement of profit
and loss.
Subsequent measurement of financial liabilities
For the purposes of subsequent measurement,
the financial liabilities are classified in the
following categories:
• those to be measured subsequently at fair
value through profit or loss (FVTPL)
• those measured at amortised cost
Following financial liabilities will be classified
under FVTPL:
• Financial liabilities held for trading
• Derivative financial liabilities
• Liability designated to be measured under
FVTPL
All other financial liabilities are classified at
amortised cost.
For financial liabilities measured at fair value,
changes in fair value will recorded in the
statement of profit and loss except for the fair
value changes on account of own credit risk are
recognised in Other Comprehensive Income
(OCI).
Interest expense on financial liabilities classified
under amortised cost category are measured
using effective interest rate (EIR) method and are
recognised in statement of profit or loss.
Derecognition of financial instruments
The company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers the
rights to receive the contractual cash flows in a
transaction in which substantially all of the risks
and rewards of ownership of the financial asset
are transferred or in which the company neither
transfers nor retain substantially all of the risks
and rewards of ownership and it does not retain
control of the financial asset.
A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the derecognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognised in the statement of profit and loss.
Impairment of financial assets
The company applies Expected Credit Loss
(ECL) model for measurement and recognition
of impairment loss on the financial assets
mentioned below:
• Financial assets that are debt instrument
and are measured at amortised cost
• Financial assets that are debt instruments
and are measured as at FVOCI
• Trade receivables
The impairment methodology applied depends
on whether there has been a significant increase in
credit risk. Details how the company determines
whether there has been a significant increase in
credit risk is explained in the respective notes.
For impairment of trade receivables, the
company chooses to apply practical expedient of
providing expected credit loss based on provision
matrix and does not require the Company to
track changes in credit risk. Percentage of ECL
under provision matrix is determined based on
historical data as well as futuristic information.
Derivative financial instruments
Initial measurement and subsequent
measurement
The company uses derivative financial
instruments, such as forward currency contracts
to hedge foreign currency risks. Such derivative
financial instruments are initially recognised
at fair value on the date on which a derivative
contract is entered into and are subsequently re¬
measured at fair value. Derivatives are carried as
financial assets when the fair value is positive
and as financial liabilities when the fair value
is negative. Any gains or losses arising from
changes in the fair value of derivatives are
recognised in the statement of profit or loss.
u) Cash dividend
The company recognises a liability to make
cash distributions to equity holders when the
distribution is authorised and approved by
the shareholders. A corresponding amount is
recognised directly in equity.
v) Earnings per share (EPS)
Basic EPS is calculated by dividing the profit
for the year attributable to equity holders of the
company by the weighted average number of
equity shares outstanding during the financial
year, adjusted for bonus elements in equity
shares issued during the year and excluding
treasury shares.
Diluted EPS adjust the figures used in the
determination of basic EPS to consider
• The after-income tax effect of interest
and other financing costs associated with
dilutive potential equity shares, and
• The weighted average number of additional
equity shares that would have been
outstanding assuming the conversion of all
dilutive potential equity shares.
w) Operating segments
Operating segments are reported in a manner
consistent with the internal reporting provided
to the Chief Operating Decision Maker (CODM)
of the Company. The CODM is responsible for
allocating resources and assessing performance
of the operating segments of the Company.
x) Use of accounting judgments, estimates and
assumptions
The preparation of the financial statements
in conformity with Ind AS, requires the
management to make judgments, estimates
and assumptions that affect the amounts of
revenue, expenses, current assets, non-current
assets, current liabilities, non-current liabilities,
disclosure of the contingent liabilities and notes
to accounts at the end of each reporting period.
Actuals may differ from these estimates.
Judgements
In the process of applying the Company's
accounting policies, management have made
the following judgements, which have the most
significant effect on the amounts recognised in
the financial statements:
Operating segment
Ind AS 108 Operating Segments requires
Management to determine the reportable
segments for the purpose of disclosure in
financial statements based on the internal
reporting reviewed by Chief Operating Decision
Maker (CODM) to assess performance and
allocate resources. The standard also requires
Management to make judgments with respect to
aggregation of certain operating segments into
one or more reportable segment.
The Company has determined that the Chief
Operating Decision Maker (CODM) is the Board
of Directors (BoD). Operating segments used
to present segment information are identified
based on the internal reports used and reviewed
by the BoD to assess performance and allocate
resources.
Contingent liability
The Company has received various orders and
notices from tax authorities in respect of direct
taxes and indirect taxes. The outcome of these
matters may have a material effect on the
financial position, results of operations or cash
flows. Management regularly analyses current
information about these matters and discloses
the information of related contingent liability.
In making the decision regarding the need for
creating loss provision, management considers
the degree of probability of an unfavourable
outcome and the ability to make a sufficiently
reliable estimate of the amount of loss. The filing
of a suit or formal assertion of a claim against
the Company or the disclosure of any such suit
or assertions, does not automatically indicate
that a provision of a loss may be appropriate.
Estimates and assumptions.
The key assumptions concerning the future and
other key sources of estimation uncertainty at
the reporting date, that have a significant risk
of causing a material adjustment to the carrying
amounts of assets and liabilities within the
next financial year, are described below. The
Company based its estimates and assumptions
on parameters available when the financial
statements are prepared. Existing circumstances
and assumptions about future developments,
however, may change due to market conditions
or circumstances arising that are beyond the
control of the Company. Such changes are
reflected in the assumptions when they occur.
Defined benefit obligation
The cost of the defined benefit plans and other
post-employment benefits and the present
value of the obligations are determined using
actuarial valuation. An actuarial valuation
involves making various assumptions that may
differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases, mortality rates and
future post-retirement medical benefit increase.
Due to the complexities involved in the valuation
and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at
each reporting date.
The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate, management considers
the interest rates of government bonds in
currencies consistent with the currencies of
the post-employment benefit obligations and
extrapolated as needed along the yield curve
to correspond with the expected term of the
defined benefit obligation.
The mortality rate is based on publicly available
mortality tables. Those mortality tables tend
to change only at intervals in response to
demographic changes. Future salary increases
are based on the expected future inflation rates
for the country.
Further details about defined benefit obligations
are provided in the respective note prepared
elsewhere in the financial statements.
Deferred Tax
Deferred tax assets are recognised for all
deductible temporary differences including
the carry forward of unused tax credits and
any unused tax losses. Deferred tax assets are
recognised to the extent that it is probable that
taxable profit will be available against which the
deductible temporary differences, and the carry
forward of unused tax credits are unused tax
losses can be utilized.
Estimation and underlying assumptions are
reviewed on ongoing basis. Revisions to
estimates are recognised prospectively.
y) Recent accounting pronouncements
Newly adopted standards:
Ministry of Corporate Affairs ("MCA") notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.
For the year ended 31st March, 2025, MCA has
notified Ind AS - 117 Insurance Contracts and
amendments to Ind AS 116 - Leases, relating to
sale and leaseback transactions, applicable to the
Group w.e.f. 01st April, 2024. The Company has
reviewed the new pronouncements and based
on its evaluation has determined that it does
not have any significant impact in its financial
statements.
Standard issued but not effective:
On 07th May, 2025, MCA has notified the
amendments to Ind AS 21 - Effects of Changes
in Foreign Exchange Rates. These amendments
aim to provide clearer guidance on assessing
currency exchangeability and estimating
exchange rates when currencies are not readily
exchangeable. The amendments are effective
for annual periods beginning on or after
01st April, 2025. The Company is currently
assessing the probable impact of these
amendments on its financial statements.
(i) Long-term borrowings include secured term loans at floating interest rates from State Bank of India, Bank
of Maharashtra, Bajaj Finance Ltd and IDFC Bank Ltd, Kotak Mahindra Bank and HDFC Bank Ltd. which are
repayable through monthly / Quarterly instalments.
(ii) We have sanctioned a new Term loan facility of ' 5000 Lakhs from Bank of Maharashtra, 1 year Moratorium.
We have sanctioned a new Term loan facility of ' 5000 Lakhs from IDFC Bank, 1 year Moratorium The above-
mentioned term loan are towards our capex expenditure in FY 2025-26 and New Capex for a period of 6 years
including 1 year moratorium period.
Bajaj Finance Ltd New Term Loan - 3, has sanctioned ' 2000 Lakhs Term loan. The same is secured by first parri-
passu on charge by way of registered mortgage on the existing fixed assets except Land at Khed city.
(iii) Loans availed from State Bank of India, Bank of Maharashtra, Kotak Mahindra Bank , Bajaj Finance Ltd ,HDFC
Bank and IDFC Bank Ltd are secured by a first parri-passu charge by way of registered mortgage on the existing
fixed assets except Land at Khed city. Loan availed from Bajaj Finance Ltd. is secured by exclusive charge on
lease land at Khed city. Of these, ' 6499.91 Lakhs (PY ' 5817.80 Lakhs) are classified as current liabilities being
repayable before March 31,2025.
(iv) Emergency Credit Line Guarantee Scheme 2.0 (ECLGS)-2 was launched by Government to provide additional
liquidity to meet operational liabilities and support the business after unprecedented situation emerging out
of COVID - 19 .There was 100% Credit Guarantee from National Credit Guarantee Trustee Company Limited
(NCGTC) on the additional credit facility and secondary charge on existing primary and collateral securities of
the company with the bankers. Under this scheme we have availed a total loan of ' 6503 Lakhs in FY 2020-21
and disbursement completed by 2021-22 from Existing bank & financial institution which is payable in 5 years
period including 12 months moratorium and the current balance for the same is 3516 Lakhs.
(v) There is no default, continuing or otherwise in repayment of instalment, loan, balance outstanding as the case
may be and interest as on the balance sheet date.
(vi) Borrowings are measured at amortised cost.
(i) Short-term borrowings includes cash credit facilities availed from State Bank of India, Kotak Mahindra Bank ,
Bank of Maharashtra,HDFC Bank, IDFC Bank and Bajaj Finance Ltd. These borrowings are secured in favour of
all the aforementioned banks by a first parri-passu charge by way of hypothecation of all stocks and receivables
and a second parri-passu charge by joint deed of hypothecation on all fixed assets of the Company.
(ii) There is no default, continuing or otherwise in repayment of instalment, loan, balance outstanding as the case
may be and interest as on the balance sheet date.
(iii) Borrowings are measured at amortised cost.
Notes:
(i) Above trade payable include amount due to related parties of ' 986.05 lakhs and same has been disclosed in
note no. 44.
(ii) Trade payables are measured at amortised cost.
(iii) Above balances are subject to confirmation & reconciliation if any .
(iv) Dues to Micro and Small Enterprises
The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development
Act, 2006 ('MSMED Act').
The Company has sent MSME confirmation to all the supplier & below disclosed dues to suppliers registered under
Micro, Small and Medium Enterprises Development Act, 2006 ('MSMED Act') to the extent confirmation received
from supplier. The disclosure pursuant to the said MSMED Act are as follows.
Fair value of financial assets and financial liabilities measured at amortised cost :
The management believes that the fair values of non-current financial assets (e.g. loans and others), current financial
assets (e.g., cash and cash equivalents, trade receivables, loans and others excluding other derivative assets) and
current financial liabilities (e.g. trade payables and other payables excluding derivative liabilities) approximate their
carrying amounts.
The Company has not performed fair valuation of its investment in unquoted equity shares as mentioned in note no.
4 which are classified as FVTPL or FVTOCI, as the Company believes that impact of change on account of fair value
is insignificant.
34.3 Financial risk management
The Company's activities exposes it to market risks, credit risks and liquidity risks. The Company's management
have overall responsibility for the establishment and oversight of the Company's risk management framework.
The Company's risks are reviewed regularly to reflect changes in market conditions and the company's activities.
Derivatives are used for hedging of foreign currency loan and not as a trading or speculative purposes.
The Company has exposure to the following risks arising from financial instruments :
a. Credit risk
Credit risk is the risk of financial losses to the Company if a customer or counterparty to financial instruments
fails to discharge its contractual obligations. It arises primarily from the Company's receivables from customers.
To manage this, the Company periodically assesses the key accounts receivable balances. As per Ind-AS 109 :
Financial Instruments, the Company uses expected credit loss model to assess the impairment loss or gain.
The carrying amount of trade and other receivables and other financial assets represents the maximum credit
exposure.
i. Trade receivables
The management has established accounts receivable policy under which customer accounts are regularly
monitored. The Company has a dedicated sales team which is responsible for collecting dues from the
customer within stipulated period. The management reviews status of critical accounts on a regular basis.
ii. Financial instruments and Cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company's treasury
department in accordance with Company's policy. Company monitors rating, credit spreads and financial
strength of its counter parties. Based on ongoing assessment Company adjust it's exposure to various
counterparties.
b. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when
they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company's reputation.
The Company has a view of maintaining liquidity and to take minimum possible risk for which company monitors
its cash and bank balances periodically in view of its short term obligations associated with its financial liabilities.
c. Market risk
Market risk is a risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimizing the return. Market risk comprises three types of risk
interest rate risk, currency risk and other price risk such as equity price risk. Financial instruments affected by
market risk include borrowings, trade and other payables, foreign exchange forward contracts, security deposit,
trade and other receivables and deposits with banks.
i. Foreign currency risk
Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rate. Company transacts business in its functional currency (INR)
and in other foreign currencies. The Company's exposure to the risk of changes in foreign exchange rates
relates primarily to the Company's operating activities, where revenue or expense is denominated in a
foreign currency.The Company manages its foreign currency risk by hedging foreign currency denominated
loan using foreign currency forward contracts .The Company negotiates the terms of those foreign currency
forward contracts to match the terms of the hedged exposure.
39 OTHER STATUTORY INFORMATION
Details of Benami Property held
The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
Details of Loans and advances
(i) The Company has not advanced to or loaned to or invested funds in any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that such Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
Wilful Defaulter
The company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of Balance
Sheet.
Relationship with Struck off Companies
The Company do not have any transactions with companies struck off.
Registration of charges or satisfaction with Registrar of Companies (ROC)
The company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory
period.
Stock statements
There is variance in Quarterly returns or statements of current assets filed by the Company with banks and the
books of accounts as company is following the terms & conditions as mentioned in sanction letter, further reason for
material variance are mentioned below:
46 STOCK OPTION PLANS
A. Employee Stock Option Plan- 2022
This Scheme shall be called the "Alicon Castalloy Limited - Employee Stock Option Scheme 2022 ("ESOS 2022" or
"Scheme").
The objective of the ESOS 2022 is to reward the Employees of the Company for their performance and to motivate
them to contribute to the growth and profitability of the Company. The Company also intends to use this Scheme
to retain talent in the organization. The Company views Employee Stock Options as instruments that would enable
the Employees to share the value they create for the Company and align individual objectives of employees with
objectives of the Company in the years to come.
The Shareholders by way of special resolution dated 27th September, 2022 have authorized the Board of Directors to
grant not exceeding 3,00,000 (three Lakhs) Options to the Employees under ESOS - 2022, in one or more tranches,
exercisable into not more than 3,00,000 (three Lakhs only) Equity shares of face value ' 5/- (Rupees five only) each
fully paid up with each such Option conferring a right upon the employee to apply for one Share of the Company, in
accordance with the terms and conditions as may be decided under the ESOS 2022.
Vesting period and exercise period of the options granted under ESOS 2022 shall be as mentioned in the scheme.
The options not exercised within the exercise period shall lapse and the employee shall have no right over such
lapsed or cancelled options.
51 Figures have been regrouped wherever necessary to make them comparable.
As per our report of even date attached On behalf of the Board of Directors of Alicon Castalloy Ltd.
For Kirtane & Pandit LLP
Chartered Accountants
Firm Regn No: 105215W/W100057
Milind Limaye S. Rai Rajeev Sikand
Partner Managing Director Chief Executive Officer
Membership No. 105366 DIN : 00050950
Place: Pune Vimal Gupta
Date: 12th May, 2025 Chief Financial Officer
|