l. Provisions and contingent liabilities
Provisions are 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, for example, under
an insurance contract, 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.
If the Company has a contract that is onerous,
the present obligation under the contract
is recognised and measured as a provision.
However, before a separate provision for an
onerous contract is established, the Company
recognises any impairment loss that has
occurred on assets dedicated to that contract.
An onerous contract is a contract under which
the unavoidable costs (i.e., the costs that the
Company cannot avoid because it has the
contract) of meeting the obligations under the
contract exceed the economic benefits expected
to be received under it. The unavoidable costs
under a contract reflect the least net cost of
exiting from the contract, which is the lower
of the cost of fulfilling it and any compensation
or penalties arising from failure to fulfil it. The
cost of fulfilling a contract comprises the costs
that relate directly to the contract (i.e., both
incremental costs and an allocation of costs
directly related to contract activities).
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 in extremely rare
cases 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 standalone Ind AS financial statements.
Provisions and contingent liability are reviewed
at each balance sheet.
m. Retirement and other employee benefits
Retirement benefit in the form of provident
fund and pension fund are defined contribution
scheme. The Company has no obligation, other
than the contribution payable. The Company
recognizes contribution payable to provident
fund and pension fund as expenditure, when
an employee renders the related service. If the
contribution payable to the scheme for service
received before the balance sheet date exceeds
the contribution already paid, the deficit payable
to the scheme is recognized as a liability after
deducting the contribution already paid. If
the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then excess is recognized
as an asset to the extent that the pre-payment
will lead to, for example, a reduction in future
payment or a cash refund.
Accumulated leave, which is expected to be
utilized within the next twelve months, is treated
as short-term employee benefit. The Company
measures the expected cost of such absences
as the additional amount that it expects to
pay as a result of the unused entitlement that
has accumulated at the reporting date. The
Company recognizes expected cost of short¬
term employee benefit as an expense, when an
employee renders the related service.
The Company treats accumulated leave
expected to be carried forward beyond twelve
months, as long-term employee benefit for
measurement purposes. Such long-term
compensated absences are provided for based
on the actuarial valuation using the projected
unit credit method at the reporting date.
Actuarial gains/losses are immediately taken
to the statement of profit and loss and are
not deferred. The obligations are presented
as current liabilities in the balance sheet if the
entity does not have an unconditional right to
defer the settlement for at least twelve months
after the reporting date.
The Company presents the leave as a current
liability in the standalone Ind AS balance sheet,
to the extent it does not have an unconditional
right to defer its settlement for twelve months
after the reporting date.
The cost of providing benefits under the defined
benefit plan is determined using the projected
unit credit method using actuarial valuation to
be carried out at each balance sheet date.
Re-measurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return
on plan assets (excluding amounts included in
net interest on the net defined benefit liability),
are recognised immediately in the standalone
Ind AS balance sheet with a corresponding
debit or credit to retained earnings through
OCI in the period in which they occur. Re¬
measurements are not reclassified to profit or
loss in subsequent periods.
Past service costs are recognised in profit or loss
on the earlier of:
a) The date of the plan amendment or
curtailment, and
b) The date that the Company recognises
related restructuring costs
Net interest is calculated by applying the
discount rate to the net defined benefit liability
or asset. The Company recognises the following
changes in the net defined benefit obligation as
an expense in the statement of profit and loss:
a) Service costs comprising current service
costs, past-service costs, gains and
losses on curtailments and non-routine
settlements; and
b) Net interest expense or income.
n. Financial instruments
Financial assets and financial liabilities are
recognised when the Company becomes a party
to the contract embodying the related financial
instruments. All financial assets, financial
liabilities and financial guarantee contracts
are initially measured at transaction cost and
where such values are different from the fair
value, at fair value. Transaction costs that are
directly attributable to the acquisition or issue
of financial assets and financial liabilities (other
than financial assets and financial liabilities at
fair value through profit and loss) are added to
or deducted from the fair value measured on
initial recognition of financial asset or financial
liability. Transaction costs directly attributable to
the acquisition of financial assets and financial
liabilities at fair value through profit and loss
are immediately recognised in the statement of
profit and loss.
Financial assets are classified, at initial
recognition, as subsequently measured at
amortised cost and fair value through profit
or loss. The classification of financial assets
at initial recognition depends on the financial
asset's contractual cash flow characteristics and
the Company's business model for managing
them. With the exception of trade receivables
that do not contain a significant financing
component or for which the Company has
applied the practical expedient, the Company
initially measures a financial asset at its fair
value plus, in the case of a financial asset not
at fair value through profit or loss, transaction
costs. Trade receivables that do not contain a
significant financing component or for which the
Company has applied the practical expedient are
measured at the transaction price as disclosed
in section 2.3.(c) Revenue recognition.
In order for a financial asset to be classified and
measured at amortised cost, it needs to give
rise to cash flows that are 'solely payments of
principal and interest (SPPI)' on the principal
amount outstanding. This assessment is
referred to as the SPPI test and is performed
at an instrument level. Financial assets with
cash flows that are not SPPI are classified and
measured at fair value through profit or loss,
irrespective of the business model.
Investment in equity instruments issued by
subsidiaries, associates are measured at cost
less impairment.
Effective interest method
The effective interest method is a method of
calculating the amortised cost of a financial
instrument and of allocating interest income or
expense over the relevant period. The effective
interest rate is the rate that exactly discounts
future cash receipts or payments through the
expected life of the financial instrument, or
where appropriate, a shorter period.
(i) Financial assets
Financial assets at amortised cost
Financial assets are subsequently
measured at amortised cost if these
financial assets are held within a business
model whose objective is to hold these
assets in order to collect contractual cash
flows and the contractual terms of the
financial asset give rise on specified dates
to cash flows that are solely payments
of principal and interest on the principal
amount outstanding.
Financial assets measured at fair
value
Financial assets are measured at fair value
through other comprehensive income if
these financial assets are held within a
business model whose objective is to hold
these assets in order to collect contractual
cash flows and to sell these financial
assets and the contractual terms of the
financial asset give rise on specified dates
to cash flows that are solely payments
of principal and interest on the principal
amount outstanding.
Financial asset not measured at amortised
cost or at fair value through other
comprehensive income is carried at fair
value through the statement of profit and
loss.
For financial assets maturing within
one year from the balance sheet date,
the carrying amounts approximate fair
value due to the short maturity of these
instruments.
Impairment of financial assets
excluding investments in subsidiaries
and associates
Loss allowance for expected credit losses
is recognised for financial assets measured
at amortised cost and fair value through
the statement of profit and loss.
The Company recognises impairment
loss on trade receivables using expected
credit loss model, which involves use of
provision matrix constructed on the basis
of historical credit loss experience as
permitted under Ind AS 109 - Financial
Instruments.
For financial assets whose credit risk
has not significantly increased since
initial recognition, loss allowance equal
to twelve months expected credit losses
is recognised. Loss allowance equal to
the lifetime expected credit losses is
recognised if the credit risk on the financial
instruments has significantly increased
since initial recognition.
For financial assets maturing within one
year from the balance sheet date, the
carrying amounts approximates fair
value due to the short maturity of these
instruments.
De-recognition of financial assets
The Company de-recognises a financial
asset only when the contractual rights
to the cash flows from the financial
asset expire, or it transfers the financial
asset and the transfer qualifies for de¬
recognition under Ind AS 109.
If the Company neither transfers nor
retains substantially all the risks and
rewards of ownership and continues
to control the transferred asset, the
Company recognises its retained interest
in the assets and an associated liability for
amounts it may have to pay.
If the Company retains substantially all
the risks and rewards of ownership of a
transferred financial asset, the Company
continues to recognise the financial
asset and also recognises a collateralised
borrowing for the proceeds received.
On de-recognition of a financial asset in
its entirety, the difference between the
carrying amount measured at the date
of de-recognition and the consideration
received is recognised in statement of
profit or loss.
(ii) Financial liabilities and equity
instruments
Classification as debt or equity
Financial liabilities and equity instruments
issued by the Company are classified
according to the substance of the
contractual arrangements entered into
and the definitions of a financial liability
and an equity instrument.
Equity Instruments
An equity instrument is any contract that
evidences a residual interest in the assets
of the Company after deducting all of its
liabilities. Equity instruments are recorded
at the proceeds received, net of direct
issue costs.
Financial Liabilities
Financial liabilities are initially measured
at fair value, net of transaction costs, and
are subsequently measured at amortised
cost, using the effective interest rate
method where the time value of money
is significant. Interest bearing bank
loans, overdrafts and issued debt are
initially measured at fair value and are
subsequently measured at amortised cost
using the effective interest rate method.
Any difference between the proceeds (net
of transaction costs) and the settlement
or redemption of borrowings is recognised
over the term of the borrowings in the
statement of profit and loss.
For trade and other payables maturing
within one year from the balance sheet
date, the carrying amounts approximate
fair value due to the short maturity of
these instruments.
a) Supplier finance arrangements
The Company has established
supplier finance arrangements
[Refer Note 22(2)]. The Company
evaluates whether financial liabilities
covered such arrangements
continue to be classified within
trade payables, or they need to
be classified as a borrowing or as
part of other financial liabilities/ as
a separate line item on the face of
the balance sheet. Such evaluation
requires exercise of judgment basis
specific terms of the arrangement.
The Company classifies financial
liabilities covered under supplier
finance arrangement within trade
payables in the balance sheet only
if (i) the obligation represents
a liability to pay for goods and
services, (ii) is invoiced and formally
agreed with the supplier, (iii) is
part of the working capital used in
its normal operating cycle, (iv) the
company is not legally released
from its original obligation to the
supplier, and has not assumed a
new obligation toward the bank,
and another party (iv) there is no
substantial modification to the terms
of the liability.
If one or more of the above criteria
are met, the Company derecognises
its original liability toward the
supplier and recognise a new liability
toward the bank which is classified
as bank borrowing or other financial
liability, depending on factors such
as whether the Company (i) has
obligation toward bank, (ii) is getting
extended credit period such that
obligation is no longer part of its
working capital cycle, (iii) is paying
interest directly or indirectly, (iv) has
provided guarantee or security, and/
or (v) is recognized as borrower in
the bank books.
Cash flows related to liabilities
arising from supplier finance
arrangements that continue to
be classified in trade payables in
the standalone balance sheet are
included in operating activities in the
standalone statement of cash flows,
when the Company finally settles
the liability.
In cases, where the Company has
derecognised its original liability
toward the supplier and recognise
a new liability toward the bank, the
Company has assessed that the
bank is acting as its agent in making
payment to the supplier. Accordingly,
the Company presents operating
cash outflow and financing cash
inflow, when bank made payment
to the supplier. The payment
made by the Company to the bank
toward interest, if any, as well as on
settlement is presented as financing
cash outflow.
b) Financial guarantee contracts
Financial guarantee contracts issued
by the Company are those contracts
that require a payment to be made
to reimburse the holder for a loss it
incurs because the specified debtor
fails to make a payment when due in
accordance with the terms of a debt
instrument. Financial guarantee
contracts are recognised initially as
a liability at fair value, adjusted for
transaction costs that are directly
attributable to the issuance of
the guarantee. Subsequently, the
liability is measured at the higher
of the amount of loss allowance
determined as per impairment
requirements of Ind AS 109 and the
amount recognised less cumulative
amortisation.
c) De-recognition
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 de¬
recognition 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.
Off-setting of financial
instruments
Financial assets and financial
liabilities are offset and the net
amount is reported in the standalone
Ind AS balance sheet if there is a
currently enforceable legal right to
offset the recognised amounts and
there is an intention to settle on a
net basis, to realise the assets and
settle the liabilities simultaneously.
o. Derivative financial instruments
The Company uses derivative financial
instruments, such as interest rate swaps to
hedge its interest fluctuation risks, etc. 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 through
statement of profit and loss. 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 taken directly to
profit or loss, except for the effective portion
of cash flow hedges, which is recognised in OCI
and later reclassified to profit or loss when the
hedge item affects profit or loss or treated as
basis adjustment if a hedged forecast transaction
subsequently results in the recognition of a non¬
financial asset or non-financial liability.
p. Cash and cash equivalents
Cash and cash equivalent in the standalone
Ind AS balance sheet comprise cash at banks
and on hand and short-term deposits with an
original maturity of three months or less that
are readily convertible to a known amount of
cash and which are subject to an insignificant
risk of changes in value.
For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash and
short-term deposits, as defined above, as they
are considered an integral part of the Company's
cash management.
q. Share-based payments
Certain employees of the Company and
its subsidiaries are entitled to share-based
payments, whereby employees render services
as consideration for equity instruments (equity-
settled transactions).
Equity-settled transactions
The cost of equity-settled transactions is
determined by the fair value at the date when
the grant is made using an appropriate valuation
model.
That cost is recognised, together with a
corresponding increase in share-based payment
(SBP) reserves in equity, over the period
in which the performance and/or service
conditions are fulfilled in employee benefits
expense. The cumulative expense recognised
for equity-settled transactions at each reporting
date until the vesting date reflects the extent
to which the vesting period has expired and
the Company's best estimate of the number
of equity instruments that will ultimately vest.
The expense or credit in statement of profit
and loss for a period represents the movement
in cumulative expense recognised as at the
beginning and end of that period and is
recognised in employee benefits expense.
Service and non-market performance conditions
are not taken into account when determining the
grant date fair value of awards, but the likelihood
of the conditions being met is assessed as part
of the Company's best estimate of the number
of equity instruments that will ultimately vest.
Market performance conditions are reflected
within the grant date fair value. No expense is
recognised for awards that do not ultimately
vest because non-market performance and/or
service conditions have not been met.
The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.
r. Dividend
The Company recognises a liability to pay
dividend to equity holders of the parent
when the distribution is authorised, and the
distribution is no longer at the discretion of the
Company. As per the corporate laws in India, a
distribution is authorised when it is approved
by the shareholders. A corresponding amount
is recognised directly in equity. Final dividends
on shares are recorded as a liability on the date
of approval by the shareholders and interim
dividends are recorded as a liability on the
date of declaration by the Company's Board of
Directors.
s. Foreign currencies
The standalone Ind AS financial statements are
presented in INR, which is also the Company's
functional currency.
Transactions in foreign currencies are initially
recorded at functional currency spot rates
at the date the transaction first qualifies for
recognition. However, for practical reasons,
the Company uses average rate if the average
approximates the actual rate at the date of the
transaction.
Monetary assets and liabilities denominated
in foreign currencies are translated at the
functional currency spot rates of exchange at
the reporting date.
Exchange differences arising on settlement or
translation of monetary items are recognised in
profit or loss.
Non-monetary items that are measured in
terms of historical cost in a foreign currency are
translated using the exchange rates at the dates
of the initial transactions. Non-monetary items
measured at fair value in a foreign currency are
translated using the exchange rates at the date
when the fair value is determined. The gain
or loss arising on translation of non-monetary
items measured at fair value is treated in line
with the recognition of the gain or loss on the
change in fair value of the item (i.e., translation
differences on items whose fair value gain or
loss is recognised in OCI or profit or loss are also
recognised in OCI or profit or loss, respectively).
Exchange differences arising on the retranslation
or settlement of other monetary items are
included in the statement of profit and loss for
the period.
t. Research and development expenditure
Research costs are expensed as incurred.
Development expenditure incurred on an
individual project is recognized as an intangible
asset when the Company can demonstrate all
the following:
i. The technical feasibility of completing the
intangible asset so that it will be available
for use or sale
ii. Its intention to complete the asset
iii. Its ability to use or sell the asset
iv. How the asset will generate future
economic benefits
v. The availability of adequate resources to
complete the development and to use or
sell the asset
vi. The ability to measure reliably the
expenditure attributable to the intangible
asset during development.
Following the initial recognition of the
development expenditure as an asset, the cost
model is applied requiring the asset to be carried
at cost less any accumulated amortization and
accumulated impairment losses. Amortization
of the asset begins when development is
complete, and the asset is available for use.
It is amortized on a straight-line basis over
the period of expected future benefit from the
related project. Amortization is recognized in
the standalone statement of profit and loss.
During the period of development, the asset is
tested for impairment annually.
u. Earnings per share
Basic earnings per share is calculated by
dividing the net profit or loss attributable to
equity holder of the Company by the weighted
average number of equity shares outstanding
during the period. Partly paid equity shares are
treated as a fraction of an equity share to the
extent that they are entitled to participate in
dividends relative to a fully paid equity share
during the reporting period.
For the purpose of calculating diluted earnings
per share, the net profit or loss for the period
attributable to equity shareholders of the parent
company and the weighted average number
of shares outstanding during the period are
adjusted for the effects of all dilutive potential
equity shares.
2.4. Standard notified but not yet effective
(i) Amendments to Ind AS 21-Lack of exchangeability
The MCA notified amendments to Ind AS 21
The effects of changes in foreign exchange
rates to specify how an entity should assess
whether a currency is exchangeable and how
it should determine a spot exchange rate when
exchangeability is lacking. The amendments
also require disclosure of information that
enables users of its Ind AS financial statements
to understand how the currency not being
exchangeable into the other currency affects,
or is expected to affect, the entity's financial
performance, financial position and cash flows.
The amendments are effective for annual
reporting periods beginning on or after 1 April
2025. When applying the amendments, an
entity cannot restate comparative information.
The amendments are not expected to have
a material impact on the Company's Ind AS
financial statements.
2.5. Climate - related matters
The Company considers climate-related matters
in estimates and assumptions, where appropriate.
This assessment includes a wide range of possible
impacts on the Company due to both physical and
transition risks. Even though the Company believes
its business model and products will still be viable
after the transition to a low-carbon economy, climate-
related matters increase the uncertainty in estimates
and assumptions underpinning several items in
the standalone Ind AS financial statements. Even
though climate-related risks might not currently
have a significant impact on measurement, the
Company is closely monitoring relevant changes
and developments, such as new climate-related
legislation.
a. The Company has investments in Centum Electronics UK Limited, which in turn has made investment in Centum
T&S Group (CTSG) Societe Anonyme (S.A.). CTSG and its underlying subsidiaries have incurred losses leading
to erosion of networth and the carrying value of the investment of ^ 1,537.83 million continues to be higher
than the net worth of CTSG.
As at March 31, 2025, the management has carried out the annual impairment exercise in respect of its carrying
value of investment in its subsidiaries and, basis valuation carried out by an external expert, has concluded that
carrying value of investment in subsidiaries is appropriate considering their recoverable amounts which, inter-
alia, includes estimation of their value-in-use based on management projections. These projections have been
made for a period of five years and consider various factors, such as market scenario, growth trends, growth
and margin projections, and terminal growth rates specific to the business. For such projections, discount rate
of 11.50% (March 31, 2024 - 11%) and terminal growth rate of 1.00% (March 31, 2024 - 0.90%) have been
considered. Discount rate has been determined considering the Weighted Average Cost of Capital (WACC) of
market benchmarks. The Company has also performed sensitivity analysis around the base assumptions.
Based on the above assessment, no impairment has been recognised during the year.
b. The Company has investments in Qulsar Inc. Based on internal assessment performed with regard to future
operations, the management of the Company created provision for impairment amounting to ^13.26 million
during the year ended March 31, 2024.
c. The Company has filed an application for the scheme of amalgamation of Centum T&S Private Limited (Transferor
Company) with Centum Electronics Limited (Transferee Company) under section 230 and 232 of the Companies
Act, 2013, with National Company Law Tribunal ("NCLT"), Bengaluru, on March 20, 2025.
Nature and purpose of reserves
Securities premium
Securities premium reserve is used to record the premium on issue of shares and is utilised in accordance with the
provisions of the Companies Act, 2013.
General reserve
The Company created a general reserve in earlier years pursuant to the provisions of the Companies Act, 1956 where
in certain percentage of profits was required to be transferred to General reserve before declaring dividends. As per
Companies Act 2013, the requirements to transfer profits to general reserve is not mandatory. However, the amount
previously transferred to the general reserve can be utilised only in accordance with the specific requirements of
Companies Act, 2013.
Retained earnings
Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general
reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss /
(gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.
Effective portion of cash flow hedge
The Company uses hedging instruments as part of its management of foreign currency risk. For hedging foreign
currency, the Company uses foreign currency forward contracts. To the extent these hedges are effective, the change
in fair value of the hedging instrument is recognised in the effective portion of cash flow hedges.
Share based payments reserve
The share-based payment reserve is used to recognise the value of equity-settled share-based options provided to
employees, including key management personnel, as part of their remuneration. Refer to note 45 for further details
of these plans.
Capital reserve
The Company recognises the forfeiture or cancellation of vested options of the Company's equity-settled share-based
payments to capital reserve.
Indian Rupee term loan from bank
a) Indian rupee term loan from a bank of ^102.62 million (March 31, 2024: 154.32 million) carries interest rate
of 2.00% above 6 month Marginal Cost of Funds based Lending Rate ("MCLR") of the bank i.e @ 10.55% to
10.99% p.a. (March 31, 2024: 10.55% p.a) payable on a monthly basis. The loan is repayable in 57 monthly
instalments.
Foreign currency term loan from bank
b) Foreign currency term loan from a bank of ^43.29 million (March 31, 2024: Nil) carries interest rate @ 7.93%
p.a (March 31, 2024: Nil) payable on a monthly basis. The loan is repayable in 16 quarterly instalments.
c) Borrowings are secured by way of :
(i) Exclusive charge on plant & machinery and other assets financed by the bank.
(ii) Hypothecation of present and future fixed assets pari passu first charge with other banks.
(iii) Equitable mortgage of factory land and building at No. 44, KHB Industrial Area, Yelahanka, Bangalore -
560 106 belonging to the Company, on pari passu first charge with other banks; and
(iv) Equitable mortgage on leasehold rights of factory land and equitable mortgage of building at Plot No.
58-P, Bengaluru Aerospace Park Industrial Area, Sy. No. 8 - Part of Unachur Village & Sy.No. 8 - Part of
Dummanahalli Village, Jala Hobli, Bengaluru North, Yelahanka Taluk, Bengaluru Urban District, belonging
to the Company on pari passu first charge with other banks.
(a) Cash credit and overdraft from banks and packing credit from banks are payable on demand and are secured by way
of :
(i) Hypothecation of entire current assets viz. stock of raw materials/stores and spares/work-in-progress/
finished goods, receivables / book debts and other current assets / moveable fixed assets on pari passu
first charge with other banks;
(ii) Hypothecation of present and future fixed assets pari passu first charge with other banks, other than
exclusively charged for the term loan availed;
(iii) Equitable mortgage of factory land and building at No. 44, KHB Industrial Area, Yelahanka, Bangalore -
560 106 belonging to the Company, on pari passu first charge with other banks; and
(iv) Equitable mortgage on leasehold rights of factory land and equitable mortgage of building at Plot No.
58-P, Bengaluru Aerospace Park Industrial Area, Sy. No. 8 - Part of Unachur Village & Sy.No. 8 - Part of
Dummanahalli Village, Jala Hobli, Bengaluru North, Yelahanka Taluk, Bengaluru Urban District, belonging
to the Company on pari passu first charge with other banks.
The rate of interest of Cash credit and overdraft from banks ranges from 10.55% to 11.70% p.a. (March
31, 2024: 10.55% to 18% p.a.).
The rate of interest of Packing credit loan from banks ranges from 5.99% to 9.50% p.a. (March 31, 2024:
5.00% to 6.65% p.a.).
The interest is payable on monthly basis.
(b) The Company has established a vendor finance arrangement. Participation in the arrangement is at the
suppliers' own discretion. Suppliers that participate in the supplier finance arrangement will receive payment on
due date on invoices sent by the Company to the Company's external finance provider. In order for the finance
provider to pay the invoices, the goods must have been received or supplied and the invoices approved by the
Company. As per the arrangement the bank agrees to pay amounts which Company owes to it's suppliers and
the Company agrees to pay the bank at a date later than suppliers are paid. Consequently, the vendor financing
liabilities which are funded through bank are classified as borrowings on the balance sheet. The Company
accounts for all payments made under the program in cash flow statement as part of financing activities. The
Company has paid interest @ 8.94% p.a. to 9.81% p.a. (March 31, 2024: 9.05% p.a. to 9.81% p.a.) on the
amounts paid by the bank to the vendor for a period starting from the date of disbursement by the bank to the
date of payment by the Company to the bank which does not exceed 90 days.
During the year ended March 31, 2024, the Company had classified payables subject to the vendor finance
arrangement under trade payables. However, Institute of Chartered Accountants of India ("ICAI") has issued
exposure draft on amendments to Ind AS 7 and Ind AS 107 to increase the level of disclosure and transparency
about entities' vendor finance arrangements. The Company has reclassified the payables subject to the vendor
finance arrangement for year ended March 31, 2024 from trade payables to borrowings based on the conditions
specified in the exposure draft released by ICAI.
(c) Includes bank overdraft amounting to ^ 23.08 million (March 31, 2024 ^ 20.10 million)
(d) The quarterly returns or statements filed by the Company with banks or financial institutions towards sanction
of working capital limits are in agreement with the books of account of the Company.
(e) The Company has not been declared as a wilful defaulter by any banks or financial institutions.
(f) The Company has not defaulted in repayment of borrowings or in the payment of interest thereon to banks or
financial institutions.
38. Income tax
The Company is subject to income tax in India on the basis of standalone Ind AS financial statements.
Pursuant to the Taxation Law (Amendment) Ordinance, 2019 COrdinance') issued by Ministry of Law and Justice
(Legislative Department) on September 20, 2019 which is effective from April 1, 2019, domestic companies have the
option to pay income tax at 22% plus applicable surcharge and cess ('new tax regime') subject to certain conditions.
The Company based on the current projections has chosen to adopt the reduced rates of tax as per the Income Tax
Act, 1961 from the financial year 2020-21 and accordingly the Company has accounted deferred tax asset based on
the reduced applicable tax rates.
The preparation of the Company's financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. The estimates and assumptions are based on historical
experience and other factors including expectations of future events that are considered to be relevant. The estimates
and underlying assumptions are continually evaluated and any revisions thereto are recognised in the period of
revision and future periods if the revision affects both the current and future periods. Uncertainties about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of
assets or liabilities affected in future periods.
Key Sources of estimation uncertainty :
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. Existing circumstances and assumptions about future developments may
change due to market changes or circumstances arising that are beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.
Impairment of non current asset including goodwill and investments
Determining whether investment and goodwill are impaired requires an estimation of the value in use of the respective
asset or the relevant cash generating units. The value in use calculation is based on DCF model. Further, the cash
flow projections are based on estimates and assumptions which are considered as reasonable by the management.
Refer note 3, 4 and 5.
Taxes
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
available against which the same can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable
profits together with future tax planning strategies. Refer note 8 and 38 for further disclosures.
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF
model. The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as
liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value
of financial instruments. Refer note 48 for further disclosures.
Contingencies
Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including
legal and contractual claims. By their nature, contingencies will be resolved only when one or more uncertain future
events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently
involves the exercise of significant judgement and the use of estimates regarding the outcome of future events. Refer
note 44 (c) for further disclosures.
Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined
using actuarial valuations. 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 and mortality
rates. 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 for plans
operated in India, the management considers the interest rates of government bonds where remaining maturity of
such bond correspond to expected term of defined benefit obligation.
The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to change only
at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected
future inflation rates for India.
Further details about gratuity obligations are given in note 42.
Provision for inventory obsolescence
Inventory obsolescence provision are determined using policies framed by the Company and in accordance with
the methodologies that the Company deems appropriate to the business. There is a significant level of judgment
involved in assessing whether provision for obsolescence for slow moving, excess or obsolete inventory items should
be recognized considering orders in hand, expected orders, alternative usage, etc.
Leases - Estimating the incremental borrowing rate
The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay
to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value
to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company 'would
have to pay', which requires estimation when no observable rates are available or when they need to be adjusted
to reflect the terms and conditions of the lease. The Company estimates the IBR using observable inputs (such as
market interest rates) when available and is required to make certain entity-specific estimates.
No share options have been granted to the non-executive members of the Board of Directors under the share
based payments plans of the Company. Refer note 45 for further details on the scheme.
Notes:
(i) As the liability for gratuity and leave encashment is provided on actuarial basis for the Company, as a
whole the amount pertaining to the key managerial personnel's' are not disclosed above.
(ii) For investments in related parties, refer note 5.
Terms and conditions of transactions with related parties
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's
length transactions. Outstanding balances at the year-end are unsecured and normally interest free except
loan. There have been no guarantees provided to or received from any related party for payables or receivables.
For the year ended March 31, 2025 and March 31, 2024, the Company has not recorded any impairment
of receivables relating to amounts owed by related parties. This assessment is undertaken each financial
year through examining the financial position of the related party and the market in which the related party
operates.
42. Gratuity and other post-employment benefits plans
a) Defined contribution plan
The Company's contribution to provident fund, Employees' State Insurance and other funds are considered as
defined contribution plans. The contributions are charged to the standalone Ind AS statement of profit and loss
as they accrue. Contributions to provident and other funds included in employee benefits expense (refer note
34) are as under:
b) Defined benefit plans
The Company has a defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity
Act, 1972. Under the act, every employee who has completed five years or more of service gets gratuity
on departure at 15 days salary (last drawn salary) for each completed year of service. The level of benefits
provided depends on the member's length of service and salary at retirement age. The Gratuity plan is funded
partially through contributions made to SBI Life Insurance Company Limited.
The following tables summarise the components of net benefit expense recognised in the standalone Ind AS
statement of profit or loss and amounts recognised in the standalone balance sheet for gratuity benefit:
Notes:
i) The estimate of future salary increases, considered in actuarial valuation, take account of inflation,
seniority, promotion and other relevant factors such as supply and demand factors in the employment
market.
ii) Plan Characteristics and Associated Risks:
The Gratuity scheme is a Defined Benefit Plan that provides for a lump sum payment made on exit
either by way of retirement, death or disability. The benefits are defined on the basis of final salary
and the period of service and paid as lump sum at exit. The Plan design means the risks commonly
affecting the liabilities and the financial results are expected to be:
a. Discount rate risk : The defined benefit obligation calculated uses a discount rate based on
government bonds. If bond yields fall, the defined benefit obligation will tend to increase.
b. Salary inflation risk : Higher than expected increases in salary will increase the defined benefit
obligation
43. Segment information - Disclosure pursuant to Ind AS 108 'Operating Segments'
(a) Information about reportable segments
Basis of identifying operating segments / reportable segments:
(i) Basis of identifying operating segments:
Operating segments are identified as those components of the Company (a) that engage in business
activities to earn revenues and incur expenses (including transactions with any of the Company's other
components); (b) whose operating results are regularly reviewed by the Company's Chief Operating
Decision Maker (CODM) to make decisions about resource allocation and performance assessment and
(c) for which discrete financial information is available. The accounting policies consistently used in the
preparation of financial statements are also applied to record revenue and expenditure in individual
segments. Assets, liabilities, revenues and direct expenses in relation to segments are categorised
based on items that are individually identifiable to that segment, while other items, wherever allocable,
are apportioned to the segment on an appropriate basis. Certain items are not specifically allocable to
individual segments as the underlying services are used interchangeably. The Company therefore believes
that it is not practical to provide segment disclosures relating to such items and accordingly such items
are separately disclosed as 'unallocated'
(ii) Reportable segments:
An operating segment is classified as reportable segment if reported revenue (including inter-segment
revenue) or absolute amount of result or assets exceed 10% or more of the combined total of all the
operating segments.
CODM evaluates the performance of the Company based on the single operative segment as Electronics
System Design and Manufacturing ("ESDM"). Therefore, there is only one reportable segment called
ESDM in accordance with the requirement of Ind AS 108 "Operating Segments".
(c) Combined revenue from one external customer group having more than 10% each of the Company's total
revenue amounting to ^ 2,946.46 million (March 31, 2024: ^ 1,889.09 million). Further, the top 5 customer
group of the Company contribute to more than 60% of the revenue for the year ended March 31, 2025 and
more than 62% of the revenue during the year ended March 31, 2024.
44. Leases, commitments and contingencies
(a) Leases
I. Company as a lessee
The Company has lease contracts for office facilities and equipment. The lease term of the office facilities
is generally 2 - 4 years .The Company's obligations under its leases are secured by the lessor's title to the
leased assets. The lease term for equipments is 8 years and the assets are transferred to the Company
at the end of lease term.
The Company also has certain leases of computer and computer equipments with low value. The Company
applies the 'lease of low-value assets' recognition exemptions for these leases.
The Company has lease contracts that include extension and termination options. The Company applies
judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew
or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to
exercise either the renewal or termination. After the commencement date, the Company reassesses the
lease term if there is a significant event or change in circumstances that is within its control and affects its
ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant
leasehold improvements or significant customisation to the leased asset).
(ii) Power purchase agreement
The Company has commitment in nature of variable lease payment towards purchase of solar and
wind power with various parties whereby the Company has committed to purchase and supplier has
committed to sell contracted quantity of solar and wind power for period as defined in the power purchase
agreements.
(c) Contingent liabilities
The following is a description of claims and assertions where a potential loss is possible, but not probable. The
Company believes that none of the contingencies described below would have a material adverse effect on the
Company's financial condition, results of operations or cash flows.
* Excludes performance bank guarantees given to various customers as the management is of the view
that the same is not required to be disclosed here.
(ii) The Hon'ble Supreme Court of India in the month of February 2019 had passed a judgement relating to
definition of wages under the Provident Fund Act, 1952. The Management is of the view that there are
interpretative challenges on the application of the judgement retrospectively. Based on the legal advice
and in the absence of reliable measurement of the provision for earlier periods, the Company has made a
provision for provident fund contribution pursuant to the judgement only from the date of Supreme Court
Order. The Company will evaluate its position and update its provision, if required, on receiving further
clarity on the subject. The Company does not expect any material impact of the same.
(iii) The Code on Social Security, 2020 CCode') relating to employee benefits during employment and post
employment benefits received Presidential assent in September 2020. The Code has been published
in the Gazette of India. Certain sections of the Code came into effect on May 03, 2023, the final rules/
interpretation have not yet been issued. Based on a preliminary assessment, the entity believes the
impact of the change will not be significant.
45. Share-based payments
A Description of the share based payment arrangements
(i) Share option plans (equity settled)
The Centum Employee Stock Option Plan ('ESOP') - 2013 plan.
(a) The Centum ESOP - 2013 plan was approved by the directors of the Company in May 2013 and by the
shareholders in August 2013. Centum ESOP - 2013 plan provides for the issue of 250,000 shares to the
employees of the Company and its subsidiaries (whether in India or outside India), who are in whole time
employment with the Company and/or it's subsidiaries.
The plan is administered by the Nomination and Remuneration committee. Options will be issued to
employees of the Company and/or it's subsidiaries at an exercise price, which shall not be less than the
market price immediately preceding the date of grant. The equity shares covered under these options
vest over a period ranging from twelve to forty eight months from the date of grant. The exercise period
is ten years from the date of vesting.
The Centum Electronics Limited Restricted Stock Unit Plan 2021.
(a) The Centum Electronics Limited Restricted Stock Unit Plan 2021 was approved by the shareholders of
the Company in October 2021. Centum RSU - 2021 plan provides for the issue of 1,75,000 shares to the
employees of the Company and its subsidiaries (whether in India or outside India), who are in whole time
employment with the Company and/or it's subsidiaries.
The plan is administered by a Nomination and Remuneration committee. Options will be issued to
employees of the Company and/or it's subsidiaries at an exercise price, which shall be equal to the face
value of the shares. RSUs granted under this Plan would vest not earlier than minimum vesting period of 1
(one) year or such other period as may be prescribed under applicable laws and not later than maximum
vesting period of 8 (eight) years from the date of grant of such RSUs. The exercise period is 5 years from
the date of last vesting of RSU.
B Measurement of fair values
The fair value of employee share options has been measured using Black Scholes model. The fair value of the
options and the input used in the measurement of the grant- date fair values of both the plans are as follows:
46. Issue of equity shares through QIP
During the year ended March 31, 2025, the Fund Raising Committee of the Board of Directors of the Company at its
meeting held on March 10, 2025 and March 13, 2025 approved the issue and allotment of 1,810,345 equity shares
having face value of ^ 10 each through Qualified Institutional Placement ("QIP") under the provisions of Chapter VI
of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulation, 2018, as
amended ("SEBI ICDR Regulation") and Section 42 and 62 of the Companies Act, 2013, including the rules made
thereunder (as amended) to the eligible Qualified Institutional Buyers (QIB), at the issue price of ^ 1,160 per equity
share (including a premium of ^ 1,150 per equity share), aggregating to approximately ^ 2,100.00 million which
took into account a discount of ^ 59.65 per equity share (i.e. within 5% of the floor price), as permitted in terms of
Regulation 176 (1) of Chapter VI of the SEBI ICDR Regulations.
47. Capital Management
The Company's capital management is intended to create value for the shareholders by facilitating the meeting of
long term and short term goals of the Company.
The Company determines the amount of capital required on the basis of annual business plan coupled with long term
and short term strategic investment and expansion plans. The funding needs are met through equity, cash generated
from operations and long term and short term bank borrowings.
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all
other equity reserves attributable to the equity shareholders of the Company.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital
using a gearing ratio, which is net debt divided by total capital plus net debt. The Company's policy is to keep the
gearing ratio at an optimum level to ensure that the debt related covenants are complied with.
(b) Fair value hierarchy
Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are
measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This
category consists of investment in quoted equity shares and mutual fund investments.
Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets
and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes
financial assets and liabilities measured using inputs that are not based on observable market data (unobservable
inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are
neither supported by prices from observable current market transactions in the same instrument nor are they
based on available market data.
The following table provides the fair value measurement hierarchy of the Company's assets and liabilities.
There have been no transfers between Level 1, Level 2 and Level 3 for the year ended March 31, 2024 and
March 31, 2025.
(c) Financial risk management objectives and policies
The Company's risk management activities are subject to the management direction and control under the
framework of Risk Management Policy as approved by the Board of Directors of the Company. The Management
ensures appropriate risk governance framework for the Company through appropriate policies and procedures
and the risks are identified, measured and managed in accordance with the Company's policies and risk
objectives. All derivative activities for risk management purposes are carried out by specialist teams that
have appropriate skills, experience and supervision. It is the company policy that no trading in derivatives for
speculative purposes may be undertaken.
The Company's financial liabilities (other than derivatives) comprises mainly of borrowings including interest
accrual, leases, trade, capital and other payables. The Company's financial assets (other than derivatives)
comprise mainly of cash and cash equivalents, other balances with banks, loans, trade and other receivables.
In the ordinary course of business, the Company is exposed to Market risk, Credit risk and Liquidity risk.
(a) 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 prices. Market risk comprises three types of risk: interest rate risk, foreign
currency risk and equity price risk.
(i) Market risk- 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 debt obligations with floating
interest rates.
(b) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. Financial instruments that are subject to credit risk and
concentration thereof principally consist of trade receivables, investments, cash and cash equivalents.
The carrying value of financial assets represents the maximum credit risk. The maximum exposure to
credit risk is carrying value of trade receivables, balances with bank, bank deposits, investments (other
than investments in subsidiaries) and other financial assets.
Customer credit risk is managed by each business unit based on the Company's established policy,
procedures and control relating to customer credit risk management. An impairment analysis is performed
at each reporting date on an individual basis for major aged receivables. The Company does not hold
collateral as security. Further, the top 5 customer group of the Company contribute to more than 64%
of the trade receivables for the year ended March 31, 2025 and more than 59% of the trade receivables
during the year ended March 31, 2024.
With respect to trade receivables (other than dues from subsidiary companies) the Company has
constituted the terms to review the receivables on periodic basis and to take necessary mitigations,
wherever required. The Company creates allowance for all unsecured receivables based on lifetime
expected credit loss based on a provision matrix. The provision matrix takes into account historical credit
loss experience and is adjusted for forward looking information. The expected credit loss allowance is
based on the ageing of the receivables that are due and rates used in the provision matrix.
Credit risk from balances with bank and financial institutions and in respect to loans and security deposits
is managed by the Company's treasury department in accordance with the Company's policy. Investments
of surplus funds are made only with approved counterparties and within credit limits assigned to each
counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss
through counterparty's potential failure to make payments.
(c) Liquidity risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of
liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use
as per requirements. The Company has obtained fund and non-fund based working capital limits from
various banks. The Company invests its surplus funds in bank fixed deposit, which carry no or low market
risk.
The Company monitors its risk of shortage of funds on a regular basis. The Company's objective is to
maintain a balance between continuity of funding and flexibility through the use of bank overdrafts,
bank loans, etc. The Company assessed the concentration of risk with respect to refinancing its debt and
concluded it to be medium.
Maturity profile of financial liabilities :
The table below has been drawn up based on the undiscounted contractual maturities of the financial
liabilities excluding interest that will be paid on those liabilities upto the maturity of the instruments.
54. Unhedged foreign currency exposure: (Contd...)
****March 31, 2025: ILS 60
Foreign currencies
USD = United States Dollar
EUR = Euro
GBP = British pound sterling
CHF = Swiss Franc
JOD = Jordanian dinar
ILS = Israeli new shekel
55. As at March 31, 2025, trade payables amounting
to ^ 69.77 million (March 31, 2024: ^ 96.40
million), advance from customers amounting
to ^ 984.55 million (March 31, 2024: ^ 335.13
million) and trade receivables amounting to
^ 671.44 million (March 31, 2024: ^ 75.28 million)
towards purchase and sale of goods and services
respectively, which are outstanding beyond
permissible time period stipulated under the Master
Circular on Import of Goods and Services and Master
Circular on Export of Goods and Services issued by
Reserve Bank of India (The RBI'). Considering that
the balances are outstanding for more than the
stipulated time, the Company is in the process of
intimating the appropriate regulatory authorities and
seeking requisite approvals for extensions. During
the year ended March 31, 2025, the Company has
netted off receivables and payables amounting to
^ 673.84 million for a foreign customer cum vendor.
The management is in the process of regularising
the same with the appropriate regulatory authorities
for approval to net off the same.The management is
confident that required approvals would be received
and penalties, if any that may be imposed on the
Company would not be material. Accordingly, no
adjustments have been made by the management to
these standalone Ind AS financial statements in this
regard.
56. MCA has amended the Rule 3 of the Companies
(Accounts) Rules, 2014 (the "Accounts Rules") vide
notification dated August 05, 2022, relating to the
mode of keeping books of account and other books
and papers in electronic mode. Back-ups of the
books of account and other books and papers of
the company maintained in electronic mode are now
required to be retained on a server located in India
on daily basis (instead of back-ups on a periodic basis
as provided earlier) as prescribed under Rule 3(5) of
the Accounts Rules. With respect to the above, the
Company has complied with the requirement for all
the IT applications.
57. The Company has used certain accounting softwares
for maintaining its books of account which has a
feature of recording audit trail (edit log) facility and
the same has operated throughout the year for all
relevant transactions recorded in the software, except
that, audit trail feature is not enabled for certain
changes made, if any, to data using privileged/
administrative access rights in so far it relates to the
aforesaid applications. Further, no instances of audit
trail feature being tampered with respect to the above
accounting software has been noted where audit trail
has been enabled. Further, the Company has also used
certain accounting softwares which are operated by a
third-party software service providers, for maintaining
its books of account which has complied with all the
requirments for audit trail based on SOC 2- Type 2
report issued by an external expert.
Additionally, the audit trail of prior year(s) has been
preserved by the Company as per the statutory
requirements for record retention to the extent it was
enabled and recorded in the respective years.
58. Other Statutory Information
(i) The Company does not have any Benami
property, where any 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.
(ii) The Company does not have any transactions
with struck off company under section 248 of
Companies Act, 2013.
(iii) The Company does not have any charges or
satisfaction which is yet to be registered with
ROC beyond the statutory period.
(iv) The Company has not traded or invested in
Crypto currency or Virtual Currency during the
financial year.
(vi) 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
(vii) The Company has no such transaction which is not recorded in the books of accounts 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, 1961.
59. Events after reporting period
The Board of Directors have proposed dividend after the balance sheet date which are subject to approval by the
shareholders at the annual general meeting. Refer note 18 for details.
As per our report of even date.
For S.R. Batliboi & Associates LLP For and on behalf of Board of Directors of
Chartered Accountants Centum Electronics Limited
ICAI Firm Registration Number: 101049W/E300004
per Navin Agrawal Apparao V Mallavarapu Nikhil Mallavarapu
Partner Chairman and Managing Director Joint Managing Director
Membership number: 056102 DIN: 00286308 DIN: 00288551
Indu H S K.S. Desikan
Company Secretary Chief Financial Officer
Membership number: F12285
Place : Bengaluru, India Place : Bengaluru, India
Date : May 22, 2025 Date : May 22, 2025
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