o. Provisions and contingent liabilities
The Company creates a provision when there is present obligation,
legal or constructive, as a result of past events that probably requires
an outflow of resources and a reliable estimate can be made of the
amount of obligation.
Disclosure of contingent liability is made 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 embodying economic benefits
will be required to settle or a reliable estimate of amount cannot be
made. Contingent assets are neither recognised nor disclosed in the
financial statements.
p. Impairment of non-financial assets
As at each reporting date, the Company assesses whether there
is an indication that a non-financial asset may be impaired and also
whether there is an indication of reversal of impairment loss recognised
in the previous periods. If any indication exists, or when annual
impairment testing for an asset is required, the Company determines
the recoverable amount and impairment loss is recognised when the
carrying amount of an asset exceeds its recoverable amount. If the
amount of impairment loss subsequently decreases and the decrease
can be related objectively to an event occurring after the impairment
was recognised, then the previously recognised impairment loss is
reversed through the statement of profit and loss.
q. Taxes on Income
Income tax expense comprises current tax expense and the deferred
tax during the year. Current and deferred taxes are recognised in the
statement of profit and loss, except when they relate to items that
are recognised in other comprehensive income or directly in equity, in
which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity, respectively.
Current income tax is recognised based on the estimated tax liability
computed after taking credit for allowances and exemptions in
accordance with the Income Tax Act, 1961. Current income tax assets
and liabilities are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively
enacted, at the reporting date.
Deferred tax is recognised on temporary differences between the
carrying amounts of assets and liabilities in the financial statements
and the corresponding tax bases used in the computation of taxable
profit.
Deferred tax liabilities are generally recognised for all taxable temporary
differences. Deferred tax assets are recognised for unused tax losses,
unused tax credits and deductible temporary differences to the extent
that it is probable that future taxable profits will be available against
which they can be used.
The carrying amount of deferred tax is reviewed at each reporting
date and measured at the tax rates that are expected to be applied
to temporary differences when they reverse, using tax rates enacted
or substantively enacted at the reporting date. The measurement of
deferred tax reflects the tax consequences that would follow from the
manner in which the Company expects, at the reporting date, to recover
or settle the carrying amount of its assets and liabilities.
r. Exceptional items
Exceptional items refer to items of income or expense within the
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.
s. Earnings per share
(i) Basic earnings per share is computed by dividing the net profit
or loss for the period attributable to the equity shareholders of
the Company by the weighted average number of equity shares
outstanding during 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.
(ii) For the purpose of calculating diluted earning per share, the net
profit or loss for the period attributable to the equity shareholders
and the weighted average number of equity shares outstanding
during the period is adjusted for the effects of all dilutive potential
equity shares.
t. Segment reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the operating decision makers. The
decision makers regularly monitor and review the operating result
of the whole Company. The activities of the Company primarily fall
under a single segment of "manufacturing and trading of kitchen sinks
and other appliances" in accordance with the Ind AS 108 "Operating
Segments".
u. Recent Accounting Pronouncements
Ministry of Corporate Affairs ("MCA") has notified amendments to the
existing standards Ind AS 1 - Presentation of financial statements
relating to classification of liabilities as current or non-current subject
to covenants, Ind AS 12 - Income Taxes relating to international tax
reforms - Pillar Two Model Rules, Ind AS 21 - the effect of changes
in foreign exchange rates and Ind AS 107 - Financial Instruments:
Disclosures and Ind AS 7 - Statement of Cashflows relating to disclosure
of supplier financing arrangements, applicable from April 01, 2025.
The Company has assessed that there is no significant impact on its
financial statements with respect to the amendments in Ind AS.
Note: Carrying amounts of current financial assets and liabilities as at the end of the each year presented approximate the fair value because of their current nature. Difference
between carrying amounts and fair values of other non current financial assets and liabilities subsequently measured at amortised cost is not significant in each of the year
presented.
The Board provides guiding principles for overall risk management as well as policies covering specific areas such as foreign exchange risk, credit risk and investment of surplus
liquidity.
A. Credit Risk
Credit risk refers to the risk of a counter party default on its contractual obligation resulting into a financial loss to the Company. The maximum exposure of the financial assets
represents trade receivables and receivables from group companies and others.
Customer credit risk is managed by the Company through established policy and procedures and control relating to customer credit risk management. Trade receivables are
non-interest bearing and are generally carrying upto 90 days credit terms. The Company has a detailed review mechanism of overdue customer receivables at various levels
within organisation to ensure proper attention and focus for realisation. Trade receivables are consisting of a large number of customers. Export receivables are backed by
forward contract in some cases. In respect of trade receivables, the Company uses a provision matrix to compute the expected credit loss allowances for trade receivables in
accordance with the expected credit loss (ECL) policy of the Company.
B. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet its commitments associated with financial instruments. Liquidity risk may result from
an inability to sell a financial assets quickly at close to its fair value.
The Company manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forcast and actual cash flows and by matching the
maturity profiles of financial assets and liabilities.
C. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial
instruments may result from changes in foreign currency exchange rates, interest rates, credit, liquidity and other market changes.
The Company has several balances in foreign currency and consequently, the Company is exposed to foreign exchange risk. The Company evaluates exchange rate exposure
arising from foreign currency transactions and follows established risk management policies.
a) Interest rate risk
Interest 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 the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates. The Company manages
its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.
b) Interest rate sensitivity:
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other
variables held constant, the Company's profit before tax is affected through the impact on floating rate borrowings, as follows:
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure
to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (trade receivables). The Company manages its foreign currency risk
by hedging transactions that are expected to realise in future. The Company also enters into various forward exchange contracts to mitigate the risk arising out of foreign
exchange rate movement on foreign currency trade receivables.
The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk
through its sales in overseas and purchases from overseas suppliers in various foreign currencies.
The Company is mainly exposed to changes in USD, GBP and EURO. The below table demonstrates the sensitivity to a 5% increase or decrease in the USD, GBP and
EURO against ', with all other variables held constant. The Sensitivity analysis is prepared on the the net unhedged exposure of the Company as at reporting date. 5%
represents management's assessment of reasonably possible change in foreign exchange rate.
NOTE 33 | CAPITAL MANAGEMENT
The Company's capital management objective is to maximise the total shareholder returns by optimising cost of capital through flexible capital structure that supports growth.
Further, the Company ensures optimal credit risk profile to maintain/enhance credit rating.
The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met through internal
accruals and long-term/short-term borrowings. The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio
of the Company.
NOTE 38 | ADDITIONAL REGULATORY INFORMATION
Additional Regulatory Information pursuant to clause 6L of General Instructions for preparation of Balance Sheet as given in Part I of Division II of Schedule III to the Companies
Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the financial Statement.
b. The title deeds of all immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee),
disclosed in the financial statements included under Property, Plant and Equipment are held in the name of the Company as at the balance sheet date.
c. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
d. The Company has not traded or invested in crypto currency or virtual currency during the financial year.
e. The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or
after the end of reporting period but before the date when the financial statements are approved.
f. The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013.
g. The Company has used the borrowings from banks for the specific purpose for which it was obtained.
h. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of
Layers) Rules, 2017.
i. The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities(intermediaries), with the understanding that the
intermediary shall;
i. 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
ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
j. The Company has not received any funds 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;
i. 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
ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
k. The Company does not have any transactions which is not recorded in the books of accounts but 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, 1961).
l. Quarterly returns or statements of current assets filed by the Company with banks are generally in agreement with the books of accounts.
m. The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period .
n. The Company is operating under SAP environment which is fully integrated financial accounting and reporting system. The management confirms that the accounting
software used by the Company for maintaining books of account has a feature of recording audit trail (edit log) facility which has been operated throughout the year for
all transactions recorded in the software and the audit trail feature is not being tampered with. The audit trail has been preserved by the Company as per the statutory
requirements for record retention.
NOTE 39~] Effective November 21, 2025, the Government of India has consolidated multiple existing labour legislation into a unified framework comprising four Labour Codes
(collectively referred to as the 'New Labour Codes'). These legislative changes have revised the definition of wages for the purpose of computation of employee benefits
and expanded the scope and eligibility of certain employees related social security benefits. Based on a detailed assessment carried out, the Company has evaluated
the incremental impact arising from the implementation of the New Labour Codes. Considering the materiality, regulatory-driven and non-recurring nature of this impact,
an incremental impact of ' 1.04 Crore have been recognised as an exceptional item in the financial statement respectively. The Company continues to monitor the
developments and clarifications from the Government pertaining to other aspects of the New Labour Codes and would provide appropriate accounting effect as needed
on the basis of such developments.
NOTE 40Balances for trade receivables, trade payables and loans and advances are subject to confirmations from the respective parties.
NOTE 41All the amounts are stated in Indian ' in Crore, unless otherwise stated.
NOTE 42Previous year's figures are regrouped and rearranged, wherever necessary.
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