2.18 Provisions, Contingent Liabilities and
Contingent Assets
A provision is recognised when the company has
present determined obligations as a result of past events
and an outflow of resources embodying economic
benefits will be required to settle the obligations.
Provisions are recognised at the best estimate of the
expenditure required to settle the present obligation at
the balance sheet date.
I f the effect of the time value of money is material,
provisions are discounted using a current pre tax rate
that reflects, where appropriate, the risks specific to the
liability. Where discounting is used, the increase in the
provision due to the passage of time is recognised as a
finance cost.
A Contingent liability is not recognised but disclosed in
the notes to the accounts, unless the probability of an
outflow of resources is remote.
A contingent asset is generally neither recognised
nor disclosed.
2.19 Earnings per share
The Basic earnings per share (EPS) is calculated by
dividing the net profit or loss for the year attributable
to the equity shareholders by the weighted average
number of equity shares outstanding during the year.
For the purpose of calculating Diluted earnings per
share, the net profit or loss for the year attributable
to the equity shareholders and the weighted average
number of equity shares outstanding during the year
are adjusted for the effects of all dilutive potential
equity shares.
2.20 Customs
Liability on account of Customs Duty on Imported
materials is accounted in the year in which the goods
are cleared from customs.
2.21 Dividends
Provision is made for the amount of any dividend
declared, being appropriately authorised and no longer
at the discretion of the company, on or before the end of
the reporting period but not distributed at the end of the
reporting period.
2.22 Exceptional items
Exceptional items refer to items of income or expense
within statement of profit and loss from ordinary
activities which are non-recurring and are of such size,
nature or incidence that their separate disclosure is
considered necessary to explain the performance of
the company.
2.23 Impairment of assets
The company assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing
for an asset is required, the company estimates the
asset's recoverable amount. An asset's recoverable
amount is the higher of an asset's or cash-generating
unit's (CGU) fair value less costs of disposal and its
value in use. Recoverable amount is determined for an
individual asset, unless the asset does not generate
cash inflows that are largely independent of those from
other assets or groups of assets. When the carrying
amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written
down to its recoverable amount.
I n assessing value in use, the estimated future cash
flows are discounted to their present value using a
pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs
of disposal, recent market transactions are taken into
account. If no such transactions can be identified, an
appropriate valuation model is used.
I mpairment losses of continuing operations, including
impairment on inventories, are recognised in the
statement of profit and loss.
2.24 Critical accounting estimates
Property, plant and equipment
Property, plant and equipment represent a significant
proportion of the asset base of the Company. The
charge in respect of periodic depreciation 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 management at the time the
asset is acquired and reviewed periodically, including at
each financial year end. 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 technology.
Intangible assets
The company tests whether intangible assets have
suffered any impairment on an annual basis. The
recoverable amount of a cash generating unit is
determined based on value in use calculations which
require the use of assumptions.
Recoverability of Trade Receivable and
provision for the same
Judgements are required in assessing the recoverability
of overdue trade receivables and determining whether a
provision against those receivables is required. Factors
considered include the credit rating of the counterparty,
the amount and timing of anticipated future payments
and any possible actions that can be taken to mitigate
the risk of non-payment. The provision for unsecured
debtors is done for those debtors which are outstanding
for more than three years.
e) The Board of Directors, in its meeting on 27th May, 2026 have proposed a final dividend of H 1/- per equity share for the
financial year ended 31st March 2026. The proposal is subject to the approval of the shareholders at the Annual General
Meeting to be held and if approved, would result in a cash outflow of approximately H 208 Lacs.
f) The above includes 15600000 Equity shares of H 5/- each issued as fully paid Bonus shares without payment being
received in cash.
d) Term /Rights attached to Equity Shares
The company has only one class of equity shares having a par value of H 5/- per share. Each holder of equity shares is
entitled to one vote per share. The company declares and pays dividends in Indian rupees.
I n the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the
company, after distribution of all preferential amounts.
The distribution will be in proportion to the number of equity shares held by the shareholders.
Nature of Reserves
Securities Premium
Security Premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the
provisions of the Companies Act, 2013.
General Reserve
The General reserve is used from time to time for transfer of profits from surplus in statement of Profit and Loss for
appropriation purposes.
Capital Reserve
This reserve represents the amount received upon reissue of forfeited shares and credit on forfeiture of share warrants.
Equity Investment Reserve
This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair
value through other comprehensive income, net off amounts reclassified to retained earnings when those assets have
been disposed off.
Retained Earning
This reserve represents undistributed accumulated earnings of the Company as on the balance sheet date.
c. Outstanding Performance Bank Guarantees issued to Banks K 4129.99 Lacs (P.Y K 3,291.89 Lacs)
26. On the basis of physical verification of assets, as specified in Indian Accounting Standard - 36 and cash generation
capacity of those assets, in the management perception, there is no impairment of such assets as appearing in the
balance sheet as on 31.03.2026.
27. Certain Balances under Advance from Customers, Trade Payables, Trade Receivables and Advance to suppliers are
subject to Confirmation.
Management estimations and assumptions
The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other
current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
28.2 Financial Risk Management
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose
of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include loans,
trade and other receivables, and cash and cash equivalents that derive directly from its operations.
The Company's activities expose it to various financial risks: market risk, credit risk and liquidity risk. The company tries
to foresee the unpredictable nature of financial markets and seek to minimise potential adverse impact on its financial
performance. The senior management of the company oversees the management of these risks. The Audit Committee
has additional oversight in the area of financial risks and controls. It is the Company's policy that no trading in derivatives
for speculative purposes may be undertaken.
Financial Market Risk
Financial Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprise two types of risk: foreign currency risk, Credit risk.
(i) Foreign currency risk
The company operates internationally and business is transacted in several currencies.
The export sales of company included in the total sales of the company, Further the company also imports certain
assets and material from outside India. The exchange rate between the Indian rupee and foreign currencies has
changed substantially in recent years and may fluctuate substantially in the future. Consequently the company
is exposed to foreign currency risk and the results of the company may be affected as the rupee appreciates/
depreciates against foreign currencies. Foreign exchange risk arises from the future probable transactions and
recognised assets and liabilities denominated in a currency other than company's functional currency.
(ii) Credit Risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum
exposure to the credit risk at the reporting date is primarily from trade receivables which are typically unsecured.
Credit risk on cash and bank balances is limited as the company generally invests in deposits with banks and
financial institutions with high credit ratings assigned by credit rating agencies. The Company's credit risk in case of
all other financial instruments is negligible.
The company assesses the credit risk based on external credit ratings assigned by credit rating agencies. The
company also assesses the creditworthiness of the customers internally to whom goods are sold on credit terms
in the normal course of business. The credit limit of each customer is defined in accordance with this assessment.
Outstanding customer receivables are regularly monitored and any shipments to overseas customers are generally
covered by letters of credit. Further the Company also has a Comprehensive Export Credit Guarantee Insurance
issued by the Export Credit Guarantee Corporation.
The impairment analysis is performed on client to client basis for the debtors that are past due at the end of each
reporting date. The company has not considered an allowance for doubtful debts in case of trade receivables that
are past due but there has not been a significant change in the credit quality and the amounts are still considered
recoverable. Normally the Company has policy to provide doubtful debtors, which has dues beyond three years from
the date of its booking in accounts.
Write off policy
The financials assets are written off incase there is no reasonable expectation of recovering from the financial asset.
29. Capital Management
The following are the objectives of Capital management policy of the company:
(i) Safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and
benefits for other stakeholders, and
(ii) Maintain an optimal capital structure to reduce the cost of capital
As a part of capital management strategy, the company may adjust the amount of dividends paid to shareholders, issue
new shares, raise debt capital or sell assets to reduce debt. The company monitors capital basis gearing ratio which
is calculated by dividing the total borrowings by total equity. The company's strategy is to maintain a gearing ratio as
possible as lower. In order to achieve this overall objective, the company ensures to meet its financial covenants attached
to the interest bearing loans and borrowings. There have never been any breaches in financial covenants of any interest
bearing loans and borrowings in the past and also in the current period.
30. Related Party Transactions
Related parties and transactions with them as specified in the Indian Accounting Standard-24 on “Related Party
Disclosures” issued by the ICAI has been identified and given below;
1. Enterprises where Control Exists: Bajaj Coneagle LLC (Wholly Owned Foreign Subsidiary)
Bajaj Steel Industries (U) Limited (Wholly Owned Foreign Subsidiary)
Bajaj Continental Ltda.(Wholly Owned Foreign Subsidiary)
Bajaj Services Ltda.(Wholly Owned Foreign Subsidiary)
2. Other Related parties with whom the Company had transactions:
(a) Key Management personnel and there relatives:-Sri Rohit Bajaj (Chairman cum Managing Director), Sri Sunil
Bajaj (Executive Director),Sri Mahendra Kumar Sharma (Whole time director and CEO of the Company),Sri
Lav Bajaj (Director), Mayank Bhandari (Non-Executive Director), Pankaj Agrawal (Non -Executive Director) Sri
Manish Sharma (Chief Financial Officer), Sri Rachit Jain (Company Secretary).
Relatives :- Smt Devika Bajaj, Shri Kush Bajaj, Shri Vedant Bajaj,Shri Varun Bajaj
(b) Enterprises over which Key Management personnel and their relatives are able to exercise Significant Influence-
Bajaj Chemoplast (I) Limited, Bajaj Trade Development Limited, Bajaj Exports Private Limited, Rohit Polytex
Limited, Prosperous Finance Services Limited, Bajaj Global Limited, Tashi India Ltd., Vidarbha Tradelinks Pvt.
Limited, Gangalaxmi Agrotech Limited, Gangalaxmi Industries Ltd, Luk Technical Services Pvt Limited ,Luk
Plastcon Limited, Luk Infrastructure Private Limited, Luk Bedrocks Private Limited, Nagpur Infotech Pvt.Ltd,
Bajaj Polymin Ltd., Bajaj Gintech Pvt. Ltd., Bajaj Reinforcement Pvt. Ltd., Daivik Moringa Pvt. Ltd., Rukmani
Metals & Gaseous Pvt. Ltd., KC Overseas Pvt. Ltd., MMP Industries Limited, MMP Electricals Private Limited,
MMP Cables Private Limited, Ridhi Vinimay Private Limited, Sidhi Vinimay Private Limited, Bajaj Cotgin Private
Limited, Luk Bricks Private Limited, Rohit Techserve Limited, Twinstar Plasticoats Private Limited.
Transactions with related parties:-
32. The Company has not received full information from vendors regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006 and hence disclosures relating to amount unpaid as at year end together with interest
paid /payable have been given based on the information so far available with the company/ identified by the company
management. As required by schedule III of companies Act, of the above said Act the following information is disclosed:-
33. Lease
(i) The Company's lease asset primarily consist of leases for land and buildings, Plant and Machinery and Vehicles for
factory and offices having the various lease terms. Effective from April 1, 2019, the Company adopted Ind AS 116
“Leases” and applied the standard to all lease contracts existing on April 1, 2019 using the modified retrospective
method. Consequently, the Company recorded the lease liability at the present value of the remaining lease payments
discounted at the incremental borrowing rate as on the date of transition and has measured right of use asset at an
amount equal to lease liability adjusted for any related prepaid and accrued lease payments previously recognised.
(ii) The following is the summary of practical expedients elected on initial application:
(a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a
similar end date,
(b) Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of
lease term and low value lease on the date of initial application,
(c) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application,
(d) Applied the practical expedient by not reassessing whether a contract is, or contains, a lease at the date of initial
application. Instead applied the standards only to contracts that were previously identified as leases under Ind AS 17.
(e ) Used hindsight in determining the lease term where the contract contained options to extend or terminate
the lease.
(iii) Following is carrying value of right of use assets recognised on 31st March, 2026 and the movements thereof during
the year ended March 31, 2026:
37. Other Information(A) Relationship with Struck off Companies:
No transaction has been made with the companies struck off under section 248 of The Companies Act, 2013 or
section 560 of Companies Act, 1956.
(B) Compliance with number of layers of companies:
Where the company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with Companies (Restriction on number of Layers) Rules, 2017, no layers of companies has been established beyond
the limit prescribed as per above said section / rules.
(F) Details of Benami Property held:
No proceeding has been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder as at 31 March 2026.
(G) Wilful Defaulter:
No bank or financial institution has declared the company as “Wilful defaulter”.
(H) Registration of charges or satisfaction with Registrar of Companies:
All applicable cases where registration of charges or satisfaction is required with Registrar of Companies have been
done. No registration or satisfaction is pending as at 31 March, 2026.
(I) The Company has borrowings from banks on the basis of security of current assets and the quarterly returns or
statements of current assets filed by the Company with banks are generally in agreement with the books of account.
38. I n accordance with the Accounting Standards (Ind AS-36) on “Impairment of Assets” during the year the company has
assessed useful life of fixed assets in use and is of the view that no impairment is considered to be necessary in view of its
expected realisable value/value in use.
41. The Company's business activities which are primarily Engaged in, Multiple Engineering products and allied services falls
within a single reportable segment as the management of the Company views the entire business activities as multiple
engineering products. Accordingly, there are no additional disclosures to be furnished in accordance with the requirement
of Ind AS 108 - Operating Segments with respect to single reportable segment. Further, the discrete financial information
in respect of geographical areas in which Company operates and also information about major customers are composite
on product basis and hence no additional disclosures to be furnished with the requirement of Ind AS 108.
42. a) Previous year figures above are indicated in brackets.
b) Previous year figure have been regrouped/rearranged, wherever found necessary.
40. The Government of India, vide Notification dated November 21, 2025, has notified the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions
Code, 2020 (collectively referred to as “the Labour Codes”), which consolidate and replace existing multiple labour
legislations. Based on the internal evaluation by the Company, consistent with the guidance provided by the Institute of
Chartered Accountants of India, there is no impact of the Labour Codes in these financial results. The Company continues
to monitor developments on the rules to be notified by regulatory authorities.
Once State Rules are notified by the Government on all aspects of the Codes, the Company will further evaluate impact, if
any, on the measurement of employee benefits and would provide appropriate accounting treatment impact in the period
in which the relevant provisions become effective.
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