k) PROVISIONS AND CONTINGENT LIABILITIES:
i) A provision is recognized when the Company
has a present obligation as a result of past
event and it is probable that outflow of
resources will be required to settle the
obligation, in respect of which reliable
estimate can be made. Provisions (excluding
retirement benefits, decommissioning and
site restoration cost) are not discounted to
its present value and are determined based on
best estimate required to settle the obligation
at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to
reflect the current best estimates.
ii) Financial effect of contingent liabilities is
disclosed based on information available up
to the date on which financial statements
are approved. However, where a reasonable
estimate of financial effect cannot be made,
suitable disclosures are made with regard to
this fact and the existence and nature of the
contingent liability.
l) EARNINGS PER SHARE:
Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable
to equity share holders by the weighted average
number of equity shares during the period. For
the purpose of calculating the diluted earnings
per share, the net profit or loss for the period
attributable to the equity share holders and
weighted average number of shares outstanding
during the period are adjusted for the effects of all
potential dilutive equity shares.
m) FINANCIAL INSTRUMENTS:
Financial assets and liabilities are recognized when
the Company becomes a party to the contractual
provisions of the instrument. Financial assets
and liabilities are initially measured 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
or loss) are added to or deducted from the fair
value measured on initial recognition of financial
asset or financial liability.
(i) Cash and Cash Equivalents:
Cash and Cash Equivalents comprise cash and
deposit with banks. The company considers
all highly liquid investments including demand
deposits with bank with an original maturity
of three months or less and that are readily
convertible to known amounts of cash to be
cash equivalents.
(ii) Financial assets at amortized cost
Financial assets are subsequently measured
at amortized cost if these financial assets
are held within a business 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.
(iii) Financial assets at fair value through other
comprehensive income (FVTOCI):
All equity investments and unquoted
debentures are measured at fair values.
Investments which are not held for trading
purposes and where the Company has
exercised the option to classify the investment
as at fair value through other comprehensive
income, all fair value changes on the
investment are recognised in OCI. The
accumulated gains or losses recognised in OCI
are reclassified to retained earnings on sale of
such investments.
Financial assets at fair value through profit or
loss (FVTPL):
Financial assets which are not classified in any
of the categories above are fair value through
profit or loss.
(iv) Financial liabilities:
Financial liabilities are subsequently carried
at amortized cost using the effective interest
method. 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.
n) IMPAIRMENT:
(i) Financial Assets:
The Company assesses at each date of
balance sheet whether a financial asset
or a group of financial assets is impaired.
Ind AS 109 requires expected credit losses
to be measured through a loss allowance.
The Company recognizes lifetime expected
losses for all contract assets and / or all trade
receivables that do not constitute a financing
transaction. For all other financial assets,
expected credit losses are measured at an
amount equal to the 12-month expected credit
losses or at an amount equal to the life time
expected credit losses if the credit risk on
the financial asset has increased significantly
since initial recognition.
(ii) Non Financial Assets:
A non financial asset is treated as impaired
when the carrying cost of asset exceeds its
recoverable value. An impairment loss, if any,
is charged to statement of profit and loss,
in the year in which an asset is identified as
impaired.
o) LEASES:
(i) Operating leases
Where the Company is Lessee:
1) The Company’s lease asset classes primarily
consist of lease rentals for buildings. The
Company assesses whether a contract
contains a lease, at inception of a contract.
A contract is, or contains, a lease if the
contract conveys the right to control the use
of an identified asset for a period of time in
exchange for consideration. To assess whether
a contract conveys the right to control the use
of an identified asset, the Company assesses
whether:
(i) the contact involves the use of an identified
asset.
(ii) the Company has substantially all of the
economic benefits from use of the asset
through the period of the lease.
(iii) the Company has the right to direct the
use of the asset.
2) At the date of commencement of the lease,
the Company recognizes a right-of-use asset
(“ROU”) and a corresponding lease liability
for all lease arrangements in which it is a
lessee, except for leases with a term of twelve
months or less (short-term leases) and low
value leases. For these short-term and low
value leases, the Company recognizes the
lease payments as an operating expense on a
straight-line basis over the term of the lease.
3) Certain lease arrangements includes the
options to extend or terminate the lease
before the end of the lease term. ROU assets
and lease liabilities includes these options
when it is reasonably certain that they will be
exercised.
4) Right-of-use assets are depreciated from
the commencement date on a straight-line
basis over the shorter of the lease term and
useful life of the underlying asset. Right of
use assets are evaluated for recoverability
whenever events or changes in circumstances
indicate that their carrying amounts may not
be recoverable. For the purpose of impairment
testing, the recoverable amount (i.e. the higher
of the fair value less cost to sell and the value-
in-use) is determined on an individual asset
basis unless the asset does not generate cash
flows that are largely independent of those
from other assets.
5) The lease liability is initially measured at
amortized cost at the present value of the
future lease payments. The lease payments
are discounted using the interest rate implicit
in the lease or, if not readily determinable,
using the incremental borrowing rates in the
country of domicile of these leases. Lease
liabilities are remeasured with a corresponding
adjustment to the related right of use asset
if the Company changes its assessment if
whether it will exercise an extension or a
termination option.
Leases of property, plant and equipment where
the company, as lessee, has substantially
all the risks and rewards of ownership are
classified as finance leases. Finance leases
are capitalised at the lease’s inception at the
fair value of the leased property or, if lower, the
present value of the minimum lease payments.
The corresponding rental obligations, net of
finance charges, are included in other financial
liabilities. Each lease payment is apportioned
between the finance charge and the reduction
of the outstanding liability. The outstanding
liabilities included in Non-current liabilities. The
finance charge is charged to the Statement of
Profit and Loss over the lease period so as to
produce a constant periodic rate of interest on
the remaining balance of the liability for each
period.
(ii)Ind AS 116 requires lessees to determine the
lease term as the non-cancellable period of
a lease adjusted with any option to extend or
terminate the lease, if the use of such option
is reasonably certain. The Company makes an
assessment on the expected lease term on a
lease-by-lease basis and thereby assesses
whether it is reasonably certain that any
options to extend or terminate the contract
will be exercised. In evaluating the lease
term, the Company considers factors such
as any significant leasehold improvements
undertaken over the lease term, costs
relating to the termination of the lease and
the importance of the underlying asset to its
operations taking into account the location
of the underlying asset and the availability
of suitable alternatives. The lease term in
future periods is reassessed to ensure that
the lease term reflects the current economic
circumstances. After considering current and
future economic conditions, the Company
has concluded that no changes are required
to lease period relating to the existing lease
contracts.
p) SEGMENT REPORTING:
Segments are identified based on the manner
in which the Company’s Chief Operating
Decision Maker ('CODM’) decides about
resource allocation and reviews performance.
Segment results that are reported to the
CODM include items directly attributable to a
segment as well as those that can be allocated
on a reasonable basis. Segment capital
expenditure is the total cost incurred during
the period to acquire property, plant and
equipment and intangible assets other than
goodwill.
Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference
to market yields at the end of the reporting period on government bonds.
Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the
return on the plan assets.
Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's
liability.
Salary risk: The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an
increase in the salary of the plan participants will increase the plan's liability.
33. SEGMENT REPORTING:
Primary Segments
Based on the guiding principles in Indian Accounting Standard on "Segment Reporting" issued by the Institute of Chartered
Accountants of India, classification by geographic segment are the primary reportable segments, comprising of:
i) Export
ii) Domestic
Segmental Capital Employed:
Assets and Liabilities contracted have not been identified to any of the reportable segments, as the assets are used interchangeably between
segments and it is not practicable to reasonably allocate the liabilities to individual segments. Accordingly no disclosure relating to segments
assets and liabilities are made.
36. Financial risk management objectives and policies:
The entity's principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to
finance the entity's operations to support its operations. The entity's principal financial assets include trade and other receivables, rental
and bank deposits and cash and cash equivalents that are derived directly from its operations.
The entity is exposed to market risk/credit and liquidity risks. The entity's senior management oversee the management of these risks.
The board reviews their activities. No significant derivative activities have been undertaken so far.
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 risks: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk.
Financial instruments affected by market risk include deposits, FVTOCI investments and derivative financial instruments.
The sensitivity analysis in the following sections relate to the positions as at March 31, 2026 and March 31, 2025:
The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations;
provisions; and the non-financial assets and liabilities of foreign operations.
The following assumption has been made in calculating sensitivity analysis.
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the
financial assets and financial liabilities held at March 31, 2026 and March 31, 2025 including the effect of hedge accounting.
i. Foreign currency risk
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 some of the vendor payments and
customer receivables.
ii. Credit risk
Credit risk is the risk that counterparty will not meet its obligations leading to a financial loss. The Company is exposed to credit risk
arising from its operating (primarily trade receivables) and investing activities including deposits placed with banks, financial institutions
and other corporate deposits. The Company establishes an allowance for impairment that represents its estimate of expected losses
in respect of financial assets. Financial assets are classified into performing, under-performing and non performing. All financial assets
are initially considered performing and evaluated periodically for expected credit loss. A default on a financial asset is when there is a
significant increase in the credit risk which is evaluated based on the business environment. The assets are written off when the Company
is certain about the non-recovery.
37. Fair Value Measurement ( Ind AS 113):
The Financial Instruments of the Company are initially recorded at fair value and subsequently measured at amortized cost based on the
nature and timing of the cash flows.
The below table summarises particulars of Financial Instruments used:
38. Employee Stock-Option Scheme
The Company has issued ESOP scheme under which Stock Options (ESOP), have been granted to employees. The scheme provides for
equity / cash settled grants to employees whereby the employees can purchase equity shares by exercising options as vested at the
exercise price specified in the grant. The options granted till March 31,2024 have a vesting period of maximum 3 years from the date of
grant.
The above amounts do not include Gratuity and Leave encashment benefits as the provisions for these are determined for the Company
as a whole and therefore separate amounts for the Directors are not available. Also the above remuneration excludes certain perquisites
and allowances which are directly borne by Company.
Directors remuneration for the current year is sum of Rs.110.21 Lakhs paid to the managing director in accordance with the limits
approved by the shareholders at the EGM held on 25th June 2025.
45. There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period
46. The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560
of Companies Act, 1956.
47. The proceedings haven't been initiated or pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder as at the balance sheet date.
48. a) The company has neither advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind
of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) nor received with the understanding (whether
recorded in writing or otherwise) 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/
Funding party (Ultimate Beneficiaries).
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;
b) 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 on behalf of the Ultimate Beneficiaries;
49. The Company has used accounting software 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 accounting software and
payroll software, Further no instance of audit trail feature being tampered with was noted in respect of the accounting software and
payroll software.
50. The Company doesn't have any transaction 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), unless there is immunity for disclosure under any scheme as the balance sheet date.
51. The Company hasn't traded or invested in Crypto currency or Virtual Currency during the financial year.
52. Balances of Sundry Debtors, Loans & Advances are subject to reconciliation and confirmation.
53. The Government of India has implemented four new Labour Codes ("Labour Codes"), including the Code on Wages, 2019, with effect
from November 21, 2025. The Ministry Labour and Employment published draft Central Rules and FAQ's to enable assessment of the
financial impact due to changes in regulations. The Company is evaluating the impact of the new Labour Codes on employee benefits and
related obligations. Since the Codes are not yet implemented/notified at the State level where the Company operates, the consequential
financial impact, if any, is not presently ascertainable and has not been quantified in the financial statement.
54. All figures have been rounded-off to the nearest Rupees in lakhs. Previous Year's figures have been re-grouped/reclassified wherever
necessary to conform to the current year Presentation.
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