15 Provisions and Contingent Liabilities
Provisions : Provisions are recognized when
there is a present obligation as result of a
past event, it is probable that an outflow of
resources embodying economic benefits will
be required to settle the obligation and there
is a reliable estimate of the amount of the
obligation. Provisions are measured at the
best estimate of the expenditure required to
settle the present obligation at the Balance
sheet date and are not discounted to its
present value unless the effect of time value
of money is material. When discounting is
used, the increase in the provision due to the
passage of time is recognized as a finance
cost.
Contingent Liabilities : Contingent liabilities
are disclosed when there is a possible
obligation arising from past events, the
existence of which will be confirmed only
by the occurrence or non occurrence of
one or more uncertain future events not
wholly within the control of the Company or
a present obligation that arises from past
events where it is either not probable that an
outflow of resources will be required to settle
or a reliable estimate of the amount cannot
be made. When there is a possible obligation
or a present obligation in respect of which
likelihood of outflow of resources embodying
economic benefits is remote, no provision or
disclosure is made.
16 Segment Reporting
The Company is engaged in providing
Electronics Manufacturing Services (EMS) with
capabilities in printed circuit board assembly,
custom cable and wire harnesses, etc. Since
the Chief Operating Decision Maker (Board of
Directors) review the operating results as a
whole for purposes of making decisions about
resources to be allocated and to assess its
performance, the entire operations are to
be classified as a single business segment,
namely EMS.
17 Earnings Per Share
Basic earnings per share is calculated by
dividing the net profit or loss for the period
attributable to equity shareholders by the
weighted average number of equity shares
outstanding during the period. Earnings
considered in ascertaining the Company's
earnings per share is the net profit for the
period after deducting equity dividends and
any attributable tax thereto for the period. The
weighted average number of equity shares
outstanding during the period and for all
periods presented is adjusted for events, such
as bonus shares, other than the conversion of
potential equity shares, that have changed
the number of equity shares outstanding,
without a corresponding change in resources.
For the purpose of calculating diluted
earnings per share, the net profit or loss for
the period attributable to equity shareholders
and the weighted average number of shares
outstanding during the period is adjusted
for the effects of all dilutive potential equity
shares.
18 Share issue expense
The transaction costs of an equity transaction
are accounted for as a deduction from equity
to the extent they are incremental costs
directly attributable to the equity transaction.
19 Investment in subsidiaries
I nvestment in subsidiaries are measured at
cost less accumulated impairment as per Ind
AS 27.
20 Cash & Cash Equivalents
Cash and cash equivalents comprises
cash on hand and at banks and short-term
deposits with an original maturity of three
months or less that are readily convertible
to known amounts of cash and which are
subject to an insignificant risk of changes in
value.
21 Exceptional items
Exceptional items are those items that
management considers, by virtue of their size
or incidence, should be disclosed separately
to ensure that the financial information
allows an understanding of the underlying
performance of the business in the year, so
as to facilitate comparison with prior periods.
Such items are material by nature or amount
to the year's result and require separate
disclosure in accordance with Ind AS.
3 Critical accounting judgements,
assumptions and key sources of estimation
uncertainty
The following are the critical judgements,
assumptions concerning the future, and key
sources of estimation uncertainty at the end of the
reporting period that may have a significant risk
of causing a material adjustment to the carrying
amounts of assets and liabilities within the next
Financial year.
3.1 Useful lives of property, plant and equipment
As described above, the charge in respect of
periodic depreciation for the year is derived
after determining an estimate of an asset's
expected useful life and the expected residual
value at the end of its life. The useful lives and
residual values of Company's assets are
determined by the management at the time
the asset is acquired and reviewed annually.
The lives are based on historical experience
with similar assets as well as anticipation of
future events, which may impact their life,
such as changes in technical or commercial
obsolescence arising from changes or
improvements in production or from a
change in market demand of the product or
service output of the asset.
3.2 Employee Benefits
The cost of defined benefit plans are
determined using actuarial valuation, which
involves making assumptions about discount
rates, expected rates of return on assets,
future salary increases, and mortality rates.
Due to the long-term nature of these plans,
such estimates are subject to significant
uncertainty.
3.3 Taxation
Significant assumptions and judgements are
involved in determining the provision for tax
based on tax enactments, relevant judicial
pronouncements and tax expert opinions,
including an estimation of the likely outcome
of any open tax assessments / litigations.
Deferred income tax assets are recognized to
the extent that it is probable that future taxable
income will be available, based on estimates
thereof. Significant assumptions are also
involved in evaluating the recoverability of
deferred tax assets recognised on unused tax
losses.
3.4 Provisions and contingencies
Critical judgements are involved in
measurement of provisions and contingencies
and estimation of the likelihood of occurrence
thereof based on factors such as expert
opinion, past experience etc.
3.5 I mpairment of Trade receivable - Expected
Credit loss
The impairment provisions for trade
receivables are based on assumptions about
risk of default. The Company uses judgement
in making these assumptions and selecting
the inputs for the impairment calculation,
based on Company's past history at the end
of each reporting period
3.6 Impairment of Investment in Subsidiaries
The company carries out an assessment
of impairment in respect of investments
in subsidiaries where any indications of
impairment exist as at the balance sheet
date. The determination of recoverable
amount for this purpose requires the use of
critical assumpations and judgements.
4 Adoption of new and revised standards:
Below are list of new standards and amendments
that are effective for the first time for periods
commencing on or after April 1, 2025 (i.e. year
ending March 31, 2026).
(i) I nd AS 7 Statement of Cash Flows and Ind
AS 107 Financial Instruments : Disclosure -
Supplier Finance Arrangements
(ii) I nd AS 1 Presentation of Financial Statements
- Classification of Liabilities as Current or
Non-current and Non-current Liabilities with
Covenants
(iii) I nd AS 12 Income Taxes - International Tax
Reform - Pillar Two model rules
(iv) I nd AS 21 The Effect of Changes in Foreign
Exchange Rates - Lack of Exchangeability
These amendments did not have any material
impact on the amounts recognized in prior periods
and are not expected to significantly affect the
current or future periods.
New amendments issued but not effective:
Ind AS 1 Presentation of Financial Statements:
For accounting periods beginning on or after 1
April 2026, when an entity breaches any covenant
of a long-term loan arrangement on or before
the end of the reporting period with the effect
that the liability becomes payable on demand, it
classifies the liability as current, even if the lender
agreed, after the reporting period and before the
approval of the financial statements for issue, not
to demand payment as a consequence of the
breach. An entity classifies the liability as current
because, at the end of the reporting period, it does
not have the right to defer its settlement for at
least 12 months after that date.
However, an entity classifies the liability as non¬
current if the lender agreed by the end of the
reporting period to provide a period of grace
ending atleast 12 months after the reporting period,
within which the entity can rectify the breach
and during which the lender cannot demand
immediate repayment.
This amendment is to be applied for annual
reporting periods beginning on or after 1 April 2026,
in accordance with Ind AS 8, Accounting Policies,
Accounting Estimates and Errors.
f) Critical judgements in determining the lease term
In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not to exercise a termination option. Extension options (or periods
after termination options) are only included in the lease term if the lease is reasonably certain to be extended
(or not terminated).
For leases of buildings, the following factors are normally the most relevant:
(a) If there are significant penalties to terminate (or not extend), the Company is typically reasonably certain
not terminate (or to extend).
(b) If any lease hold improvements are expected to have a significant remaining value the Company is
typically reasonably certain to extend (or not terminate).
(c) Otherwise, the Company considers other factors including historical lease durations and the costs and
business disruption required to replace the leased asset
The lease term is reassessed if an option is actually exercised (or not exercised) or the Company becomes
obliged to exercise (or not exercise it). The assessment of reasonable certainty is only revised if a significant
event or a significant change in circumstances occurs, which affects the assessment, and that is within the
control of the lessee. During the current financial year, there was no revision in the lease terms.
g) Extension and termination options
Extension and termination options are included in a number of property leases. These are used to maximise
operational flexibility in terms of managing the assets used in the Company's operations. The majority of
extension and termination options held are exercisable only by the Company and not with the respective
lessor.
8.1 TRADE RECEIVABLES
The Company has used a practical expedient by computing the expected credit loss allowance for trade
receivables based on a provision matrix.
The provision matrix takes into account historical credit loss experience based on past trend of outstanding
receivables over a rolling period of past 30 months (As at March 31, 2025 - 36 Months). The change in expected
credit loss allowance on account of change in accounting estimates is not material.
8.4 Factoring of Receivables
(i) During the year, the Company has entered into factoring agreement with Standard Chartered Bank, India
("the Bank") for factoring of the trade receivables on a non-recourse basis. Under this agreement, the
late payment and/or credit risk is transferred to the bank without recourse to the Company. Therefore,
the Company derecognises the transferred trade receivables at the point when the amount is received
from the bank on such sale/transfer.
As at March 31, 2026 the trade receivables do not include receivables amounting to ' 396.34 million which
have been derecognised (though the actual credit period allowed to such customers is not expired) in
accordance with Ind AS 109 - Financial Instruments, pursuant to such factoring agreement. As at the end
of the year, there are no trade receivables which are classified as "trade receivables at fair value through
profit and loss".
(ii) During the year, the Company has recognized total factoring cost amounting to ' 14.51 million (2024-25
- Nil) relating to trade receivables which were transferred/sold through the factoring arrangement with
the Bank.
# For the year ended 31st March 2026
Number of employee stock options granted (including Series E granted on August 5, 2025 - 50,000) for the
company's employees - 6,52,871 and for the subsidiaries' employees - 13,50,450 and outstanding as at March
31, 2026 of the company - 1,76,986 and for the subsidiaries' employees - 2,12,940. During the year ended March
31, 2026, the company has allotted 6,09,047 shares out of which 1,24,109 Equity shares are for the company's
employees and balance for the subsidiaries' employees.
# For the year ended 31st March 2025
Number of employee stock options granted (including Series C granted on September 24, 2024 - 88,919
and Series D granted on December 27, 2024 - 84,652) for the company's employees - 6,18,621 and for the
subsidiaries' employees - 13,34,700 and outstanding as at March 31, 2025 of the company - 2,77,700 and
for the subsidiaries' employees - 6,91,214. During the year ended March 31, 2025, the company has allotted
4,44,424 shares out of which 1,75,575 Equity shares are for the company's employees and balance for the
subsidiaries' employees.
10.2 Rights, preferences and restrictions attached to shares
The Company has only one class of equity shares having par value of '2/ each. Each holder of the Equity
Share is entitled to one vote per share. The dividend proposed by the Board of Directors, if any, is subject to
the approval of the shareholders at the ensuing Annual General Meeting. Repayment of Capital on liquidation
will be in proportion to the number of equity shares held.
10.5 Equity shares movement during 5 years preceding the reporting date
(i) Shares allotted as fully paid-up pursuant to contract(s) without payment being received in cash: Nil
(ii) Sub-division of equity shares:
The Shareholders in their extra-ordinary general meeting dated 27.06.2022 had approved sub-division
of each fully paid up equity share of nominal value of E 100 (Rupees One Hundred Only), into fifty equity
shares having a face value of E2/- (Rupees Two only) each. As a result of the same, the issued share
capital has changed from 1,59,667 Equity Shares of '100/- each to 79,83,350 Equity Shares of '2/- each.
Consequently, the Authorised Share Capital of the Company changed to ' 220 millions divided into
8,50,00,000 Equity Shares of '2 each and 5,00,000 Preference Shares of '100/-each.
(iii) Issue of Bonus shares
As per recommendation of the Board of Directors in their meeting held on 24.06.2022 and approval of
the shareholders dated 27.06.2022 the Company had issued 4,79,00,100 bonus equity shares of face
value of ' 2/- each in ratio of 6:1 (i.e. 6 Bonus Shares for every 1 Equity Share), which were allotted to
the shareholders on 27.06.2022. Consequently, the issued, subscribed and paid-up share capital had
increased to ' 111.76 Millions comprising of 5,58,83,450 equity shares of face value of ' 2/- each.
(iv) There are no shares bought back during the period of 5 years immediately preceding the reporting
date.
Nature and Purpose of Other Reserves
(a) Reserves and Surplus
Securities Premium
Securities Premium Reserve comprises the premium received on issuance of securities. The utilisation of this
reserve is governed by the provisions of the Act.
ESOP Reserve
Employee stock option reserve relates to the share options granted by the Company to the Company's and
subsidiary's employees under its stock option plan. (Refer No. 29)
Retained Earnings
Retained Earnings represents Company's cumulative earnings since its formation less the dividends /
Capitalisation, if any. These reserves are free reserves which can be utilised for any purpose as may be
required. All adjustments arising on account of transition to Ind AS are recorded here.
(b) Share application money pending allotment
Share application money pending allotment represents amounts received towards issue of shares for
which shares are pending to be allotted as at the balance sheet date.
Note 16(a) :
The Company manufactures products in compliance with customer specifications. Though it does not provide
warranty covering design defects, it warrants that it will without charge, repair, replace or credit, as it may elect,
any products which are proved to be defective as a result of failure in it's workmanship for a certain period from
the date of delivery, as per the terms of its contract with customers. Since the Company has not experienced
material warranty costs in the past, the management has determined that no provision for estimated future
warranty obligations is required to be recognised in the books.
18.1 Disaggregation of revenue information
The company is engaged in Electronics Manufacturing Services (EMS) with capabilities in Printed Circuit Assembly
Boards (PCBA's), custom cable, wire harness, metal, plastic, magnetics components and assemblies with
enhanced capabilities in engineering design and development. As per the management, the disaggregation of
revenue based on geography are depicted in Note 28.2
18.2 Contract Balances
The following table provides information about receivables, contract assets and contract liabilities from contracts
with customers:
(i) Basic EPS amounts are calculated by dividing the profit/(loss) for the year attributable to equity holders of
the company by the weighted average number of Equity shares outstanding during the year. Diluted EPS
amounts are calculated by dividing the profit/(loss) attributable to equity holders of the company by the
weighted average number of Equity shares outstanding during the year, respectively adjusted for effect of
dilution.
(ii) Impact of dilution on weighted average number of shares is computed after factoring the impact of ESOP.
(Refer note 10)
(iii) Share transactions that have occurred during 2024-25:
(a) The Company has issued 4,44,424 Equity Shares at a face value of 2/- each for cash, at a premium of
18/- per share upon exercise of Employee stock options by the eligible employees.
(iv) Share transactions that have occurred during 2025-26:
(a) The Company has issued 600,147 equity shares of face value 52 each for cash at a premium of 518 per
share. Additionally, 8,900 equity shares of face value 52 each were issued for cash at a premium of 5498
per share upon exercise of employee stock options by eligible employees.
NOTE 28: SEGMENT REPORTING
28.1 The Company is engaged in providing Electronics Manufacturing Services (EMS) with capabilities in printed
circuit board assembly, custom cable and wire harnesses, etc. Since the Chief Operating Decision Maker
(Board of Directors) review the operating results as a whole for purposes of making decisions about resources
to be allocated and to assess its performance, the entire operations are to be classified as a single business
segment, namely EMS. The geographical segments considered for disclosure are - India and Rest of the
World. All the manufacturing facilities are located in India.
28.3 Information about major customers
Revenue from three external customer having more than 10% each of the Company's total revenue amounting
to 2932.19 Million for March 31, 2026 (Revenue from one external customer having more than 10% each of the
Company's total revenue amounting to 994.24 million for March 31, 2025).
NOTE 29: SHARE BASED PAYMENTS
During the financial year 2022 - 23, in pursuant to resolutions adopted by the Board of Directors and Shareholders
both dated July 7, 2022, the Company has instituted the ESOP Scheme, which is an equity settled share based
payment scheme. The ESOP Scheme has been instituted to grant stock options exercisable into Equity Shares to
eligible employees of the Company. In terms of the ESOP Scheme, grants to eligible employees will be made by
the Nomination and Remuneration Committee or the Board, based on the determination of a criteria described
under ESOP Scheme.
The ESOP Scheme has been instituted in compliance with the Securities and Exchange Board of India (Share
Based Employee Benefits and Sweat Equity) Regulations, 2021.
The Shareholders, through their resolution dated July 7, 2022, have approved a maximum of 3,000,000 options,
exercisable into 3,000,000 Equity Shares under the ESOP Scheme. The vesting period under the ESOP Scheme shall
be a minimum of one and a maximum of seven years, and the specific vesting schedule applicable to each
employee will be as mentioned in the letter of grant issued to such employee. Employees covered by the plan
are granted an option to purchase shares subject to certain vesting conditions. Each employee share option
converts into one equity share of the Company on exercise of option.
The Board of the Company at its meeting held on July 19, 2022 have granted 17,79,750 options under the ESOP
Scheme. Subsequently, the Board at its meetings held on September 24, 2024 , December 27, 2024 & August 5,
2025 have granted 88,919 options , 84,652 options & 50,000 options respectively.
NOTE 30: EMPLOYEE BENEFIT PLANSA. Defined contribution plans
The Company participates in a number of defined contribution plans on behalf of relevant personnel. Any
expense recognised in relation to these schemes represents the value of contributions payable during the
period by the Company at rates specified by the rules of those plans. The only amounts included in the
balance sheet are those relating to the prior months contributions that were not due to be paid until after the
end of the reporting period.
The major defined contribution plans operated by the Company are as below:
Provident fund
In accordance with the Employee's Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees
of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan,
in which both employees and the Company make monthly contributions at a specified percentage of the
covered employees' salary.
The contributions, as specified under the law, are made to Employee Provident Fund Organisation.
B. Defined benefit plans
The defined benefit plans operated by the Company are as below:
The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible
employees, which is funded with HDFC Life Group UL Future Secure Plan. Every employee who has completed
five years or more of service receives gratuity on leaving the Company as per the Code on social security,
2020. The plan provides for a lump-sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to 15 days salary payable for each
completed year of service. Vesting occurs upon completion of five years of service. The Company accounts
for the liability for gratuity benefits payable in the future based on an actuarial valuation.
The current service cost and the net interest expense for the year are included in the 'Employee benefits
expense' line item in the statement of profit and loss.
The remeasurement of the net defined benefit liability is included in other comprehensive income.
(v) Risk Exposure
The estimates of future salary increases, considered in actuarial valuation, taking account of inflation,
seniority, promotion and other relevant factors, such as supply and demand in the employment market.
The sensitivity analysis presented above may not be representative of the actual change in the defined
benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as
some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation
has been calculated using the projected unit credit method at the end of the reporting period, which is the
same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior
years.
(vii) The Government of India has notified new Labour Codes effective from November 21, 2025. The incremental
impact due to changes in regulations, as estimated by the company has been recognised in the financial
statements for the year ended March 31, 2026, which is not material. The financial impact will be further
evaluated on notification of the relevant rules by the respective Central/ State Governments.
D. Leave obligations
The leave obligations cover the Company's liability for earned leave.
NOTE 31: FINANCIAL INSTRUMENTS
31.1 Capital management
For the purpose of the Company's capital management, capital includes issued capital and all other equity
reserves attributable to the equity shareholders of the Company. The primary objective of the Company when
managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital
structure so as to maximize shareholder value. As at the year end, the Company has only one class of equity
shares.
31.3 Financial risk management
The Company is exposed to Market risk, Credit risk and Liquidity risk.The Company monitors and manages the
financial risks relating to the operations of the Company through internal risk reports which analyse exposures by
degree and magnitude of risks.
The following disclosures summarize the Company's exposure to financial risks. Quantitative sensitivity analysis
have been provided to reflect the impact of reasonably possible changes in market rates on the financial results,
cash flows and financial position of the Company.
31.3.1 Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market conditions. Market risk mainly comprises of interest rate risk and currency risk. Financial
instruments affected by market risk includes borrowings, non-current investments, trade payables, trade
receivables and current investments. The Company's activities expose it primarily to the financial risks of changes
in foreign currency exchange rates, interest rates and other price risk.
There has been no change to the Company's exposure to market risks or the manner in which these risks are
being managed and measured.
(a) Interest rate risk
I nterest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The company's exposure to changes in interest rates primarily
relates to outstanding floating rate debt and investments in fixed deposits. These exposures are subject to
periodic interest rate resets. Based on the past experience the variability of interest investments and working
capital loan are not expected to be material. Further there are only short term debt in the form of packing
credit which are subject to minimal changes in interest rate during it's term.
Fair value sensitivity analysis for floating-rate instruments:
The sensitivity analysis below have been determined based on exposure to the interest rates for financial
instruments at the end of the reporting period and the stipulated change taking place at the beginning of the
financial year and held constant throughout the reporting period in case of instruments that have floating
rates. The sensitivity analysis have been carried out based on the exposure to interest rates for term loans
from banks, debt securities and borrowings carried at variable rate. If interest rates had been 25 basis points
higher and all other variables were constant, the Company's profit after tax would have changed by the
following:
(b) Foreign Currency risk
The company undertakes transactions denominated in foreign currencies; consequently, exposures to
exchange rate fluctuations arise. Significant portion of the companies purchases and sales are denominated
in foreign currency and hence, a natural hedge exists as a result of which, major foreign exchange fluctuations
in import payables gets offset against export receivables. Apart from the above, exchange rate exposures
are also managed within approved policy parameters by constant monitoring.
Foreign Currency sensitivity analysis
Impact on profit /(loss) and Equity (net of tax) for an increase of 5%
The below table demonstrates the sensitivity to a 5% increase or decrease in the relevant foreign currency
against INR, with all other variables held constant. The sensitivity analysis is prepared on the net unhedged
exposure of the Company as at the reporting date. 5% represents management's assessment of reasonable
possible change in foreign exchange rate.
A 5% decrease in the rupee against the above currencies as at 31 March 2026 and 31 March 2025 would have
had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that
all other variables remain constant.
I n management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk
because the exposure at the end of the reporting period does not reflect the exposure during the year.
(c) Price risk Exposure
The Company exposure to price risk arises from investments held and classified in the balance sheet either
as fair value through other comprehensive income or at fair value through profit or loss. To manage the price
risk arising from investments, the Company diversifies its portfolio of assets. There are investments in mutual
funds which are measured at fair value through profit and loss
31.3.2 Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. The company has adopted a policy of only dealing with creditworthy counterparties as
a means of mitigating the risk of financial loss from defaults. The company's exposure of its counterparties are
continuously monitored and the aggregate value of transactions concluded is spread amongst counterparties.
Credit exposure is controlled by counterparty limits that are reviewed and approved by the management.
Credit risk arises from cash and cash equivalents, loans, investments, deposits with banks and other parties ,
trade receivables and other financial assets.
Trade receivables consist of a large number of customers. Ongoing credit evaluation is performed on the financial
condition of accounts receivable. The maximum exposure to credit risk at the reporting date is the carrying value
of each class of financial assets disclosed in Note 8. The company does not hold collateral as security. The
Company has evaluated the concentration of risk with respect to trade receivables as low, as its customers are
located in several jurisdictions and industries and operate in largely independent markets.
Credit risk arising from other balances with banks is limited and there is no collateral held against these because
the counterparties are banks with high credit ratings assigned by the international credit rating agencies. Similarly,
credit risk arising from investment in Mutual Funds are held without any collateral but credit risk is limited as the
company deals with counterparties of repute and excellent track record.
The estimated gross carrying amount at default is ' Nil (March 31, 2025: ' Nil ) for loans, investments in CCPS
and security deposits with other parties. Consequently, there are no expected credit loss recognised for these
financial assets.
Expected credit loss for trade receivables under simplified approach
The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109,
which permits the use of the lifetime expected loss provision for all trade receivables. It has computed expected
credit losses based on a provision matrix which takes into account historical credit loss experience based on
: a) Past trend of outstanding receivables over a rolling period of past 30 months and b) actual amount of
outstanding receivables as on the reporting date. (also refer Note 8.3.1)
31.3.3 Liquidity risk
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an
appropriate liquidity risk management framework for the management of the company's short-term, medium-
term and long-term funding and liquidity management requirements. The company manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring
forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Further, the Company is exposed to liquidity risk in relation to Corporate guarantees given to banks provided
by the Company. The Company's maximum exposure in this respect is the maximum amount the Company
would have to pay if the guarantee is invoked. These Corporate guarantees have been issued to banks under
the financing facilities agreements entered into its subsidiaries companies. Based on the expectation at the end
of the reporting period, the Company considers that it is more likely than not that such an amount will not be
payable under the guarantees provided.
Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on
the basis of information collected by the company. This has been relied upon by the auditors. According to the
records available with the Company certain amount have been identified as dues to suppliers registerd under
Micro, Small and Medium Enterprises Development Act, 2006 ('MSMED Act'). The disclosure pursuant to the said
MSMED Act are as follows:
NOTE 36: DETAILS OF TRANSACTIONS WITH STRUCK OFF COMPANIES
The Company does not have any transactions with struck off companies during the year or any balance
outstanding as at the year end.
a) Future cash outflows, if any, in respect of above are determinable only on receipt of judgement/decisions
pending at various forums/ authorities or final outcome of matter.
b) The Company has reviewed all its pending litigations and proceedings and has adequately provided for
where provisions are required. In respect of matters where it is only possible, but not probable that outflow of
economic resources would be required to settle the matter, the same are disclosed as contingent liability.
c) The Company does not expect any reimbursements from third parties in respect of the above contingent
liabilities.
NOTE 38:
The Company does not have any Benami property and no proceedings have been initiated or are pending
against the company for holding any Benami property.
(a) The company does not have any long term contracts for which there were any material foreseeable losses.
(b) There are no amounts required to be transferred to the Investor Education and Protection Fund by the
Company as on the reporting date.
(c) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or
any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including
foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
(d) There are no funds which have been received by the company from any person(s) or entity(ies), including
foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that
the Company shall directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or provide any guarantee, security
or the like from or on behalf of the Ultimate Beneficiaries.
(e) The Company is not declared as a wilful defaulter by any bank or financial institution or other lender or
Government or Government authorities. Accordingly, no disclosures are made in this regard.
(f) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.
(g) The Company does not have any such transaction which is not recorded in the books of account that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 (such as, search or survey or any other relevant provisions of the Income Tax Act,196l).
Explanation for Variance in ratios by more than 25%
(i) Increase in Return on equity ratio is due to strong profit growth and operational efficiency improvements.
(ii) Increase in Net profit ratio is typically due to increase in revenue ie.better pricing and strategic sales mix,
lower production, operational and financial costs and thereby improved efficiency.
(iii) I ncrease in Return on Capital Employed is due to higher operating profits, better efficiency in asset
utilization, and thereby reduction in capital employed.
NOTE 42:
Particulars of loans given, investment made, guarantees given, security provided together with purpose in terms
of section 186 (4) of the Companies Act, 2013
Previous years figures have been regrouped / reclassified wherever necessary to conform to current year's
classification / presentation.
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