b) Terms / rights attached to Equity Shares:
The Equity shares of the Company having par value of ' 2 per share rank pari passu in all respects including voting rights, dividend entitlement and repayment of capital.
e) Capital Management
The Company follows conservative capital management with the objective of maximising shareholders' value. For the purpose of Company's capital management, capital includes issued capital and all other equity reserves attributable to the shareholders of the Company. The Company has been funding its growth and working capital requirements through a balanced approach of internal accruals and external debt from the Banks. The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt component of the Company.
Proposed Dividend
The Board of Directors at its meeting held on 12-May-2026 has recommended payment of dividend of ' 3 (Rupees Three only) per Equity Share of face value of ' 2 each for the Financial Year ended 31st March 2026. The same amounts to ' 268.92 Lakhs (Previous year: ' 3 per Equity Share amounting to ' 268.92 Lakhs).
Description of nature and purpose of each reserve:
Capital Redemption Reserve:
This represents the Reserves created on redemption of Preference Shares and can be utilized for issue of Bonus Shares.
Securities Premium:
This represents the premium collected on issue of Equity Shares and can be utilized for the purposes stated under Section 52 of the Companies Act, 2013.
General Reserve:
This Reserve is created from time to time by transferring profits from the retained earnings and this being a free reserve enhances the net worth of the Company and is available for distribution as Bonus Share/dividend.
Working Capital Borrowings from Banks are secured by :
a) Pari passu first charge on the entire current assets of the company, namely stocks of Raw Materials, semi finished goods, and Finished Goods, Stores and Spares not relating to Plant and Machinery (Consumable stores and spares) including book debts and Equitable Mortgage by way of deposit of title deeds and hypothecation over the land and building, Plant and machinery and other immovable fixed assets of the Company.
1. The fair value of quoted investment in quoted equity shares measured at quoted price on the reporting date.
2. In case of trade receivables, cash and cash equivalents, trade payables, short term borrowings and other financial assets and liabilities it is assessed that the fair values approximate their carrying amounts largely due to the shortterm maturities of these instruments.
3. The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.
4. Investment in equity shares are held as promoter and not held for disposal and are therefore classified as Fair value through Other Comprehensive Income.
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
The Company's financial liabilities comprise mainly of working capital borrowings from banks, trade payables and other payables. The Company's financial asset comprises mainly cash equivalents, other balances with banks, trade receivables, other receivables and investments.
The Company has financial risk exposure in the form of market risk, credit risk and liquidity risk. The risk management policies of the Company are monitored by the Board of Directors. The present disclosure made by the Company summarizes the exposure to the financial risks.
1) 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. Market price comprises two types of risks viz., Currency risk and other price risk. The financial instruments affected by market risk include rupee term loan and loans & advance.
a) Interest Rate Risk exposure
The Company is having Working Capital facility limit of ' 3000 lakhs with Banks which includes Bill discounting also. The present interest rate is @ 7.75% per annum for both UCO Bank and Punjab National Bank, depending upon the change in the Banks' MCLR.
Interest Rate Sensitivity analysis
The Company, considering the economic environment in which it operates, has determined the interest rate sensitivity analysis (interest exposure at the end of the reporting period). The Company has only working capital limits which carry floating interest rate. Sensitivity analysis is prepared assuming that the working capital limit was outstanding for the whole year. A 50 basis points /- 0.50% fluctuation in interest rate is used for disclosing the sensitivity analysis.
The interest rate sensitivity analysis is done holding on the assumption that all other variables remain constant.
The increase/ decrease in interest expense is chiefly attributable to the Company's exposure to interest rates on its variable rate of borrowings.
The Company is also exposed to the risk of interest rate fluctuations on the rate of return on fixed deposits of ' 1070.55 Lakhs as at 31st March 2026, maintained with the Bankers.
The Company's investment in fixed deposit with Banks is only on fixed interest rate terms and hence, there is no exposure to future interest rate movement.
b) Foreign currency risk exposure
The Company imports Silver Bullion, Silver Foil, Magnesium Sheets, other Raw materials and Stores and spares for which payables are denominated in foreign currency. The Company is exposed to foreign currency risk on these transactions. Since the Company imports materials mostly on advance payment basis, the Company does not perceive major risk and accordingly they are not hedged. As at 31st March 2026, the Company had a payable of EUR 30,600 (' 33.36 Lakhs) [Previous year: USD 156,580 (' 129.74 Lakhs)].
In respect of batteries, exports are made against advances received or against confirmed LCs of usance period not exceeding 90 days. As at 31st March 2026, the Company had a receivable of USD 15,960 ('15.11 Lakhs) [Previous year: USD 155,750 ('132.81 Lakhs) and EUR 454,700 (' 417.87 Lakhs)].
1) Credit Risk
The credit risk refers to risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, bank balances, other balances with banks and other receivables.
The credit risk arising from the exposure of investing in other balances with banks and bank balances is limited and there is no collateral held against these because the counterparties are public sector banks.
The Company sells its products of Aerospace, Naval and Power System Batteries to Defence Customers where the payment terms are definite. From the Defence Organisations and Government of India, payments are all received as per the terms of the contracts. The risk is restricted to the Liquidated damages clause for delayed supplies as per the contract terms and there is no irrevocable credit loss risk.
3) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or other financial asset. Liquidity risk may result from an inability to sell a financial asset quickly to meet obligations when due. The Company's exposure to liquidity risk arises primarily from mismatches of maturities of financial assets and liabilities.
The Company manages the liquidity risk by -
(i) maintaining adequate and sufficient cash and cash equivalents including and
(ii) Making available the funds from realizing timely maturities of financial assets to meet the obligations when due.
The management monitors rolling forecast of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. Also, the Company manages the liquidity risk by projecting cash flows considering the level of liquid assets necessary to meet the obligations by matching the maturity profiles of financial assets and financial liabilities and monitoring balance sheet liquidity ratios. Further, liquidity risk management involves matching the maturity profiles of financial assets and financial liabilities.
34. (D) Additional Regulatory Information Contd...
(i) Utilisation of borrowed funds and share Premium through intermediaries or for benefit of third party beneficiaries:
a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company, its subsidiary, associate to or in any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company, its subsidiariary, associate (Ultimate Beneficiaries).
b) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company , its subsidiary, associate, shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company , its subsidiary, associate (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) Borrowings secured against current assets
The Quarterly returns or statements of current assets filed by the Company with Banks are in agreement with the book of account.
39 Employee Benefits
(i) Defined Contribution Plans:
The Company makes Provident Fund and Superannuation Fund contributions which are defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised ' 61.83 Lakhs (Year ended March 31,2025 ' 53.32 Lakhs) for Provident Fund contributions and ' 5.40 Lakhs (Year ended March 31,2025 ' 5.40 Lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.
(ii) Defined Benefit Plans:
Gratuity (Funded)
In respect of Gratuity, Actuarial valuation of Plan Assets and the defined benefit obligation as on the reporting date is carried out by an Actuary. The present value of the defined benefit obligation and the related current service cost and past service cost, were measured using the Projected Unit Credit method. The following table sets forth the status of the Gratuity Plan and the benefit Scheme of the Company and the amount recognised in the Balance Sheet and Statement of Profit and Loss. The Company provides the gratuity benefit through annual contributions to the funds managed by the Life Insurance Corporation of India.
The Company is exposed to various risks in providing the above gratuity benefit which are as follows: Interest Rate risk:
The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).
Investment Risk:
The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.
Salary Escalation Risk:
The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future, based on past experience. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.
Demographic Risk:
The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out adverse compared to the assumptions.
The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in an increase in liability without corresponding increase in the asset).
Sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the Projected Unit Credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
The Company's best estimate of the contribution expected to be paid to the plan during the next year is ' 157.66 Lakhs ( Previous year ' 20.00 Lakh).
F Revenue from External Customers:
Three customers contribute to more than 10% of the revenue of Aerospace, Naval and Power Systems Segment.
Lead Acid Batteries Division operation continued to remain suspended due to unremunerative prices.
41 Exceptional item
The Government of India, in November 2025, notified four Labour Codes that replaced the existing 29 labour laws. Additional liability of ' 124.66 Lakhs arising therefrom towards gratuity and leave benefits has been recognised under “Exceptional item” in these financial statements.
42 Authorisation for issue of Financials
The financial statements have been authorised for issue by the Board of Directors at the Board Meeting held on 12-May-2026.
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