1.3.15 Provisions and contingent liabilities
A provision is recognized when the company has a present obligation resulting from past events
and it is probable that an outflow of resources will be required to settle the obligation for which a
reliable estimate can be made. Provisions are based on management’s best estimate of the
amount required to settle the obligation at the balance sheet date. Provisions are reviewed at
each balance sheet date and adjusted to reflect revision in estimates.
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 financial statements. Contingent assets are neither recognized nor disclosed
in the financial statements.
1.3.16 Exceptional Items
Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the
ordinary activities of the company is such that its disclosure improves the understanding of the
performance of the company, such income or expense is classified as an exceptional item and
accordingly, disclosed in the notes accompanying to the financial statement.
1.3.17 Non-current assets held for sale/ distribution to owners and discontinued operations
The Company classifies non-current assets and disposal of group of assets as held for sale/
distribution to owners if their carrying amounts will be recovered principally through a sale/
distribution rather than through continuing use. Actions required to complete the sale/ distribution
should indicate that it is unlikely that significant changes to the sale/ distribution will be made or
that the decision to sell/ distribute will be withdrawn. Management must be committed to the
sale/distribution expected within one year from the date of classification.
Non-current assets held for sale/for distribution to owners and disposal of group of assets are
measured at the lower of their carrying amount and the fair value less costs to sell/ distribute.
Assets and liabilities classified as held for sale/distribution are presented separately in the balance
sheet.
Property, plant and equipment and intangible assets once classified as held for sale/ distribution
to owners are not depreciated or amortised.
A disposal of group of assets qualifies as discontinued operation if it is a component of an entity
that either has been disposed of, or is classified as held for sale, and:
• Represents a separate major line of business or geographical area of operations,
• Is part of a single co-ordinated plan to dispose of a separate major line of business or
geographical area of operations
Or
• Is a subsidiary acquired exclusively with a view to resale
Discontinued operations are excluded from the results of continuing operations and are presented
as a single amount as profit or loss after tax from discontinued operations in the statement of
profit and loss.
1.3.18 Financial Instrument
Financial assets and financial liabilities are recognized when the Company becomes a party to
the contractual provisions of the instruments.
Financial assetsA) Initial recognition and measurement
On initial recognition, financial assets are recognised at fair value except trade receivables
which are recognized at transaction price as they do not contain a significant financing
component. In case of financial assets which are recognised at fair value through profit and
loss (FVTPL), its transaction costs are recognised in the statement of profit and loss. In other
cases, the transaction costs are attributed to the acquisition value of the financial asset.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognized immediately in profit or loss.
Financial assets are classified, at initial recognition, as financial assets measured at fair value
or as financial assets measured at amortised cost.
B) Subsequent Measurement
For purposes of subsequent measurement, financial assets are classified in the below
categories:
a) Financial Assets measured at Amortised Cost (AC)
A Financial Asset is measured at Amortised Cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the
contractual terms of the Financial Asset give rise to cash flows on specified dates that
represent solely payments of principal and interest on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised
cost using the Effective Interest Rate (EIR) method
b) Financial Assets measured at Fair Value Through Other Comprehensive Income
(FVTOCI)
A Financial Asset is measured at FVTOCI if it is held within a business model whose
objective is achieved by both collecting contractual cash flows and selling Financial
Assets and the contractual terms of the Financial Asset give rise on specified dates
to cash flows that represents solely payments of principal and interest on the
principal amount outstanding.
C) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)
A Financial asset is measured at fair value through profit and loss unless it is measured at
amortised cost or at fair value through other comprehensive income on initial recognition.
The transaction costs directly attributable to the acquisition of financial assets at fair value
through profit and loss are immediately recognised in the Statement of Profit and Loss.
Financial assets are reclassified subsequent to their recognition, if the Company changes its
business model for managing those financial assets. Changes in business model are made
and applied prospectively from the reclassification date which is the first day of immediately
next reporting period following the changes in business model in accordance with principles
laid down under Ind AS 109 - Financial Instruments.
D) Other Equity Investments
All other equity investments are measured at fair value, with value changes recognised in
Statement of Profit and Loss, except for those equity investments for which the Company
has elected to present the value changes in ‘Other Comprehensive Income’. However, dividend
on such equity investments are recognised in Statement of Profit and loss when the Company’s
right to receive payment is established.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the Company’s balance sheet) when:
• The rights to receive cash flows from the asset have expired, or
• The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a
‘pass-through’ arrangement; and either (a) The Company has transferred substantially all the
risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially
all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and
rewards of ownership. When it has neither transferred nor retained substantially all of the risks
and rewards of the asset, nor transferred control of the asset, the Company continues to recognise
the transferred asset to the extent of the Company’s continuing involvement. In that case, the
Company also recognises an associated liability. The transferred asset and the associated liability
are measured on a basis that reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured
at the lower of the original carrying amount of the asset and the maximum amount of consideration
that the Company could be required to repay.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement
and recognition of impairment loss on the following financial assets and credit risk exposure:
a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt
securities, deposits, trade receivables and bank balance
b) Financial assets that are debt instruments and are measured as at FVTOCI
c) Lease receivables under Ind AS 116
d) Trade receivables or any contractual right to receive cash or another financial asset that result
from transactions that are within the scope of Ind AS 115
e) Loan commitments which are not measured as at FVTPL
f) Financial guarantee contracts which are not measured as at FVTPL
The Company follows ‘simplified approach’ for recognition of impairment loss allowance on:
• Trade receivables or contract revenue receivables; and
• All lease receivables resulting from transactions within the scope of Ind AS 116
The application of simplified approach does not require the Company to track changes in credit risk.
Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right
from its initial recognition.
As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance
on portfolio of its trade receivables. The provision matrix is based on its historically observed default
rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At
every reporting date, the historical observed default rates are updated and changes in the forward¬
looking estimates are analysed. On that basis, the company estimates the following provision matrix at
the reporting date:
ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/
expense in the statement of profit and loss (P&L). This amount is reflected under the head ‘other expenses’
in the P&L.
The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e.,
financial assets which are credit impaired on purchase/ origination.
The fair value of financial assets denominated in a foreign currency is determined in that foreign currency
and translated at the spot rate at the end of each reporting period.
Financial liabilities
Classification as debt or equity
Debt and equity instruments issued by a company are classified as either financial liabilities or as equity
in accordance with the substance of the contractual arrangements 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 an entity after
deducting all of its liabilities. Equity instruments issued by a Company entity are recognised at the proceeds
received, net of direct issue costs. Repurchase of the Company’s own equity instruments is recognised
and deducted directly in equity. No gain or loss is recognised in profit or loss on the purchase, sale,
issue or cancellation of the Company’s own equity instruments.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective
hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Company’s financial liabilities include trade and other payables, loans and borrowings including
bank overdrafts, financial guarantee contracts and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
a) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes derivative financial instruments entered
into by the Company that are not designated as hedging instruments in hedge relationships as
defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading
unless they are designated as effective hedging instruments.
b) Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are
designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are
satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in
own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L.
However, the Company may transfer the cumulative gain or loss within equity. All other changes
in fair value of such liability are recognised in the statement of profit or loss. The Company has not
designated any financial liability as at fair value through profit and loss.
Loans and borrowings
This is the category most relevant to the Company. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation
process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement
of profit and loss.
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.
Derecognition
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 derecognition 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 or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the 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.
Derivative financial instruments and hedge accounting
Initial recognition and subsequent measurement
The Company uses derivative financial instruments, such as forward currency contracts, interest rate
swaps and forward commodity contracts, to hedge its foreign currency risks, interest rate risks and
commodity price risks, respectively.
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. Derivatives are carried as financial
assets when the fair value is positive and as financial liabilities when the fair value is negative.
The purchase contracts that meet the definition of a derivative under Ind AS 109 are recognised in the
statement of profit and loss. Commodity contracts that are entered into and continue to be held for the
purpose of the receipt or delivery of a non-financial item in accordance with the Company’s expected
purchase, sale or usage requirements are held at cost.
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.
1.3.19 Recent Accounting pronouncements
‘Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time. As
on the date of approval of these financial statements, there are no new or amended Indian
Accounting Standards notified by the MCA that are applicable to the Company or that have a
material impact on these financial statements.
1.4 Significant accounting judgements, estimates and assumptions
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. Uncertainty
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.
Judgements
In the process of applying the Company’s accounting policies, management has made the following
judgements, which have the most significant effect on the amounts recognised in the financial statements.
Estimates and assumptions
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.
The Company based its assumptions and estimates on parameters available when the financial statements
were prepared.
Existing circumstances and assumptions about future developments, however, 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.
The key sources of estimation uncertainty at the end of the reporting period, that may have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year are given below:-
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.
Impairment of non-Financial Assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company
estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or
cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount
is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or group of assets.
When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs of disposal, recent market transactions are
taken into account. If no such transactions can be identified, an appropriate valuation model is used.
These calculations are corroborated by valuation multiples, quoted share prices for publicly traded
companies or other available fair value indicators.
The Company bases its impairment calculation on detailed budgets and forecast calculations, which are
prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These
budgets and forecast calculations generally cover a period of five years. For longer periods, a long-term
growth rate is calculated and applied to project future cash flows after the fifth year. To estimate cash flow
projections beyond periods covered by the most recent budgets/forecasts, the Company extrapolates
cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless
an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average
growth rate for the products, industries, or country or countries in which the entity operates, or for the
market in which the asset is used.
Impairment losses of continuing operations, including impairment on inventories, are recognised in the
statement of profit and loss, except for properties previously revalued with the revaluation surplus taken
to OCI. For such properties, the impairment is recognised in OCI up to the amount of any previous
revaluation surplus.
The preparation of financial statements involves estimates and assumptions that affect the reported
amount of assets, liabilities, disclosure of contingent liabilities at the date of financial statements and the
reported amount of revenues and expenses for the reporting period.
Employee benefit plans
Defined contribution plans
Contribution paid/ payable to defined contribution plans comprises provident fund for certain employees
governed under the scheme are recognised in the profit or loss each year when employees have rendered
services entitling them to the contributions. Under this plan, the Company makes Provident Fund
contributions to 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
has recognised Rs.22.42 lakhs (Year ended 31 March, 2025 Rs.20.73 lakhs) for Provident Fund
contributions (including Pension fund / EDLI 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.
Defined benefit plans
The Company offers the following employee benefit schemes to its employees:
i. Gratuity
The Company’s gratuity scheme is a defined benefit plan. The cost of providing benefits is
determined using the Projected Unit Credit Method, with actuarial valuations carried out at the
end of each reporting period.
Defined benefit costs are categorised as follows:
1. Service cost (including current service cost and past service cost, as well as gains and losses on
curtailments and settlements);
2. Net interest expense or income; and
3. Remeasurements.
The Company presents the first two components of defined benefit costs in the Statement of
Profit and Loss under Note No. 28, “Employee Benefits Expense”. Gains and losses on curtailments
and settlements are recognised as part of past service cost.
Net interest is calculated by applying the discount rate at the beginning of the period to the net
defined benefit liability or asset.
Remeasurements, comprising actuarial gains and losses, the effect of changes in the asset ceiling
(if applicable), and the return on plan assets (excluding amounts included in net interest), are
recognised immediately in the Balance Sheet with a corresponding debit or credit to Other
Comprehensive Income (OCI) in the period in which they occur. Remeasurements recognised in
OCI are not reclassified to profit or loss and are transferred directly to retained earnings.
ii. Leave encashment
Employee benefits in the nature of leave encashment are classified as short-term and long-term
employee benefits, based on the expected timing of settlement.
Short-term employee benefits:
The undiscounted amount of short-term employee benefits expected to be paid in exchange for
services rendered by employees is recognised during the year in which the employees render the
related service. These benefits include performance incentives and compensated absences
expected to be settled within twelve months after the end of the reporting period.
The cost of compensated absences is accounted as follows:
i) In the case of accumulating compensated absences, when employees render services that
increase their entitlement to future compensated absences; and
ii) In the case of non-accumulating compensated absences, when the absences occur.
Long-term employee benefits:
Compensated absences that are not expected to be settled within twelve months after the end of
the reporting period are recognised as a liability at the present value of the defined benefit obligation,
determined using actuarial valuation techniques at the balance sheet date.
jj Leave Encashment
The valuation is done as per the parameters and measurements suggested under Ind AS 19 (Ind
AS 19) As per Para 158 of Ind AS 19, disclosure for other long term employee benefits are not
mandatory and hence the same has not been disclosed.
Leave encashment liability which are not expected to occur within 12 months after the end of the
period in which employee renders the related services are recognised as a liability at the present
value of the defined benefit obligation as at the balance sheet date based on actuarial valuation
by an independent actuary using the Projected Unit Credit Method. Obligation is measured at
the present value of estimated future cash flows using a discounted rate that is determined by
reference to market yields at the Balance Sheet date on Government Bonds where the currency
and terms of the Government bonds are consistent with the currency and estimated terms.
Notes:
a) Related party relationship is as identified by the management and relied upon by the auditors.
b) No amounts in respect of related parties have been written off/ written back during the year or has
not made any provision for doubtful debts/ receivable.
c) Related party transactions have been disclosed on basis of value of transactions in terms of the
respective contracts.
d) Terms and conditions of sales and purchases: the sales and purchases transactions among the
related parties are in the ordinary course of business based on normal commercial terms, conditions,
market rates and memorandum of understanding signed with the related parties. For the year
ended 31st March, 2025 and 31st March 2026, the Company has not recorded any loss allowances
for transactions between the related parties.
Note No.33
Listing status
The equity shares of the company are listed in Bombay Stock Exchange (BSE) and company has paid
annual listing fees to the stock exchange for the year 2025-26.
Note No.34
Segment Reporting
Business Segments: The Company is engaged in manufacture of Electrical Installation Products. Two
segments viz Manufactured products and Trading products are the reportable business segments,
identified as per Ind AS 108, ‘Segment Reporting’, Segment assets and liabilities. These segments are
the basis for management control and hence, form the basis for reporting. The business of each segment
comprises of :
Manufacturing segment: - The Company manufactures high-end electrical equipment, indigenously
designed through extensive research and development in the vital fields, offering them across the country
to its clients. The products are:
Trading segment: - The Company engages in trading of electrical installation products including
switches, wires, cables etc. sourced from its Parent company viz. Salzer Electronics Limited and
sells them to its customers.
Other Disclosure
1. Current taxes, deferred taxes are not allocated to individual segments as they are also managed
on a company basis.
2. The allocation of interest income, other income (net of expenses), and finance costs is not attributed
to specific segments, as these instruments are managed on a comprehensive company-wide basis.
3. Unallocated Assets and Liabilities: Most of the assets, liabilities of the aforesaid reportable segments
are interchangeable or not practically allocable and any forced allocation would not result in any
meaningful segregation. Accordingly, segment assets & liabilities have not been presented. This
segment information is provided to and reviewed by Chief Operating Decision Maker (CODM).
Note No.35LeasesAs a lesseeEffect of adoption of new accounting standard on Leases: Ind AS 116
The company has adopted IND AS 116 ‘’Leases’’ from the date of incorporation of the company.
Existing lease-hold building:-
1) Earlier Factory premises:- The existing lease contract entered by the Company pertains to buildings
taken on lease for the company’s factory at Ambernath - F25 which is currently on a long term
lease, expiring on 11/10/2099. The Right of Use Asset has been capitalised as a Lease hold building
and depreciation is charged on a straight-line basis over the estimated useful lives of the assets
(i.e. 30 years). Since there are no incremental payments, in the form of lease rentals to be made to
the lessor in future, corresponding lease liability has not been disclosed. The Company does not
have any lease restrictions or commitment towards variable rent as per the contract.
During FY25-26, the company has given on lease the above premises for a period of 5 years based
on Leave and License basis for which the lease rental has been recognized in the books. The lease
is treated as an Operating Lease according to Ind AS 116.
2) Current Factory premises :- To consolidated its operations, during FY23-24, the company shifted
its manufacturing plant and therefore entered into a lease agreement for a period of 7 years for
another premises at Ambernath and the company’s existing machinery and employees were
transferred from the existing plant to the above factory premises. As per Ind AS 116, company has
recognized Lease assets (as Right of Use asset) and a corresponding lease liability reflecting
future lease payments, after discounting the future rentals.
3) Corporate officeIn addition to the above, the company pays monthly rentals for its corporate
office at Mumbai in the form of a pagadi which is a legalized form of tenancy under the provisions
of the Maharashtra Rent Control Act, 1999. Since the company can continue to occupy the premises
as long as it desires, the tenancy does not carry a specific lease term as the non-cancellable
period of a lease. Consequently, the lease liability under IND AS 116 has not been accounted or
disclosed with respect to the above.
Note No. 36Borrowings:
The Company has availed Cash Credit facility (BG - sub limit) with HDFC Bank (Outstanding NIL as on
31.03.2026) with additional limits for Working Capital term loan. The monthly statements of Stock, debtors
and creditors which have been submitted to the Bank are in agreement with the books of accounts.
Fair values of Financial Instruments
Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial
instruments, other than those with carrying amounts that are reasonable approximations of fair values:
Measured at amortised cost
The carrying amount reflected above represents the company’s maximum exposure to credit risk for
such financial assets. There have been no transfers among Level 1, Level 2 and Level 3 during the
period. All the financial instruments are valued using Level 3 valuation techniques except Investments
which are valued using Level 1 valuation technique.
Fair value hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - 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).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable
inputs).
The Company has not disclosed the fair value of financial instruments measured at amortised cost as
their carrying amounts are a reasonable approximation of fair value.
Note No. 39Financial Risk management
The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, market
risks and credit risk. The Company’s senior management has the overall responsibility for establishing
and governing the Company’s risk management framework. The Company has constituted a core
Management Committee, which is responsible for developing and monitoring the Company’s risk
management policies. The Company’s risk management policies are established to identify and analyse
the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically
review the changes in market conditions and reflect the changes in the policy accordingly.
A. Liquidity risk
The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the
year ended 31st March, 2026 and 31st March, 2025. Cash flow from operating activities provides
the funds to service the financial liabilities on a day-to-day basis. The Company regularly monitors
the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational
needs. Any short term surplus cash generated, over and above the amount required for working
capital management and other operational requirements, is retained as cash and cash equivalents
(to the extent required) and any excess is invested in interest bearing term deposits and other
highly marketable debt investments with appropriate maturities to optimise the cash returns on
investments while ensuring sufficient liquidity to meet its liabilities.
B. 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,
currency risk and other price risk. Financial instruments affected by market risk include loans and
borrowings and deposits.
i) 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. This risk exist mainly on account of
borrowings of the Company. However, all these borrowings are at fixed interest rate and
hence the exposure to change in interest rate is insignificant.
The Company availed issued working capital facility in INR based on HDFC Bank rates as a
benchmark of Repo Rate 4% and Spread rate 3.25% (which is a variable interest rate debt).
However, since there were no borrowings outstanding as of 31 /3/2026, the impact of sensitivity
to interest rates would not apply.
ii) 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 is not exposed to
significant foreign currency risk as at the respective reporting dates.
iii) Price Risk
The Company is mainly exposed to the price risk due to its investment in mutual funds. The
price risk arises due to uncertainties about the future market values of these investments.
C. 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. The Company is exposed to credit risk from its
operating activities (primarily trade receivables) and other financial assets.
The maximum exposure to credit risk was Rs. 2897.17/- Lakhs as at March 31,2026 (Previous year
: Rs. 2879.32 lakhs) primarily in the form of Investment, Receivables, Bank balances and FDs
placed being the carrying amount of Financial assets. The financial assets are measured at amortised
cost and are considered to have low credit risk.
i) Trade Receivables
The major exposure to credit risk at the reporting date is primarily from receivables comprising
of trade receivables. Customer credit risk is managed by each business unit subject to 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 trade receivables. For receivables, as a practical expedient, the company
computes expected credit loss allowance based on a provision matrix. The provision matrix
is prepared based on historically observed default rates over the expected life of trade
receivables and is adjusted for forward-looking estimates.
ii) Other Financial Assets
Credit risk from balances with banks and financial institutions is managed by the Company
in accordance with the Company’s policy. Investments of surplus funds are made only in
highly marketable debt instruments with appropriate maturities to optimise the cash return
on instruments while ensuring sufficient liquidity to meet its liabilities.
D) Excessive risk concentration
Concentrations arise when a number of counterparties are engaged in similar business activities,
or activities in the same geographical region, or have economic features that would cause their
ability to meet contractual obligations to be similarly affected by changes in economic, political or
other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to
developments affecting a particular industry.
In order to avoid excessive concentrations of risk, the Company’s policies and procedures include
specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations
of credit risks are controlled and managed accordingly.
E) Capital management
The Company’s objectives when managing capital are to
• safeguard their ability to continue as a going concern, so that they can continue to provide
returns for shareholders and benefits for other stakeholders, and
• manage its capital structure and makes adjustments in light of changes in economic condition
and the requirements of the financial covenants
• diversify sources of financing and spread the maturity across tenure buckets in order to
manage liquidity risk.
For the purpose of capital management, capital includes issued equity capital, securities premium
and all other reserves attributable to the equity shareholders of the Company. Net debt includes all
long and short-term borrowings (including current maturities of long-term borrowings and interest
accrued) as reduced by cash and cash equivalents.
Details of unhedged foreign currency exposure
There were no unhedged foreign currency exposures as of 31/3/2026 (Previous Year : NIL)
Note No. 43Details of loans given, investments made and guarantee given covered u/s 186(4) of the Companies
Act 2013
The Company has not granted any loans or provided any guarantees or securities covered under Section
186(4) of the Companies Act, 2013 during the year.
The details of investments as at 31 March 2026 are as follows:
1. Investment in Equity Shares of Associate Company
• Particulars: Investment in 5,86,061 equity shares of UltraFast Chargers Private Limited,
representing 27.47% of its paid-up share capital, resulting in UltraFast Chargers Private Limited
being classified as an associate of the Company in accordance with Section 2(6) of the
Companies Act, 2013.
• Amount: Rs 700.00 lakhs
• Purpose: Strategic investment to expand into the business of high-end DC fast chargers
2. Investment in Optionally Convertible Debentures of Associate Company
• Particulars: Subscription to 77,024 optionally convertible debentures of UltraFast Chargers
Private Limited of face value Rs 10 each.
• Amount: Rs 100.00 lakhs
• Purpose: Strategic investment to expand into the business of high-end DC fast chargers
3. Other Investments
Investment in equity shares of Saraswat Co-operative Bank Limited amounting to Rs 0.10 lakhs
The investments in other bodies corporate are well within the limit as prescribed under Section 186 of the
Companies 2013.
Note No. 44Corporate Social Responsibility (CSR)
CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII
thereof by the Company during the year was Rs. 12.41 lakhs for FY 2025-26.
Impact of New Labour Code 2025
On 21 November 2025, the Government of India notified the four Labour Codes, namely the Code on
Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational
Safety, Health and Working Conditions Code, 2020, subsuming the existing labour laws. Pursuant to the
above, the Ministry of Labour and Employment has issued draft Central Rules and related guidance to
facilitate assessment of the impact arising from the implementation of these Codes.
Based on an actuarial valuation carried out during the year, the Company has recognised an additional
provision of Rs 27 lakhs towards incremental employee benefit liability pertaining to past periods in the
financial statements for the year ended 31 March 2026. The same has been recognised in accordance
with the applicable Indian Accounting Standards on Employee Benefits and relevant guidance issued by
the Institute of Chartered Accountants of India (ICAI).
Note No. 48Dues to Small / Micro enterprises
The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August
2008 which recommends that the Micro and Small Enterprises should mention in their correspondence
with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum.
Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31,2026
has been made in the financial statements based on information received and available with the Company.
The Company has not received any claim for interest from any supplier.
Note No. 49
Corporate Actions
Proposed Dividend :-
The Board of Directors of the company has recommended a final dividend at the rate of 20% i.e. Rs. 2/-
per equity share on 31,73,500 equity shares of Rs. 10/- each for the year ended March 31,2026 (Previous
year Rs. 2 per equity share). Total outflow for dividend shall be a sum of Rs. 63.47 lakhs (as against
Rs.63.47 lakhs in the previous year). This is subject to approval by shareholders of the Company at the
ensuring Annual General Meeting.
Note No. 51
Other disclosures51.1 Title deeds of Immovable Property not held in the name of the company
The company does not possess any immovable property whose title deeds are not held in the
name of the company during the financial year ended 31/03/2025 and 31/03/2026.
51.2 Details of Benami Property Held
No proceedings have been initiated or pending against the company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988(45 of 1988) and rules made
there under during the financial years ended 31/3/2025 and 31/3/2026.
51.3 Details of Crypto Currency or Virtual Currency
The company has not traded or invested in crypto currency or virtual currency during the financial
years ended 31/3/2025 and 31/3/2026.
51.4 Undisclosed Income
The Company does not have any 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).
51.5 Transactions with Struck off companies
The company has not undertaken any transactions with any company whose name is struck off
under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 in the financial
years ended March 31,2025 and March 31,2026.
51.6 Utilisation of Borrowed funds and share premium
- 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 to or in any other person(s)
or entity(ies), ont1">- 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 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 (Ultimate Beneficiaries).
- The Company has not received any fund from any party(s) with the understanding that the
Company shall whether, directly or indirectly lend or invest in other persons or entities identified
by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries.
51.7 Charges registered with ROC
All charges or satisfaction are registered with ROC within the statutory period for the financial
years ended March 31, 2025 and March 31, 2026. No charges or satisfactions are yet to be
registered with ROC beyond the statutory period.
51.8 Compliance with Companies (Restriction on number of Layers) Rules, 2017
The company has complied with the number of layers prescribed under clause (87) of section 2
of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial
years ended March 31,2025 and March 31,2026.
51.9 No scheme of arrangements
There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237 as
per Companies Act 2013.
51.10 Bank borrowings
The company is not declared as a wilful defaulter by any bank or financial institutions or other
lenders in the Financial years ended 31/03/2025 and 31/03/2026.
51.11 Revaluation of Property, Plant and Equipment (including Right-of-Use Assets) or intangible
assets
The company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets)
or intangible assets during the financials year ended 31/03/2025 and 31/03/2026.
51.12 Previous Period Figures
Previous period figures have been regrouped / reclassified wherever necessary, to conform to
current period classification.
51.13 Maintenance of books of accounts
The company is maintaining its books of account in electronic mode and these books of account
are accessible in India at all times and the back-up of books of account has been kept in servers
physically located in India on a daily basis from the applicability date of the Companies (Accounts)
Rules, 2014.
51.14 Audit trail
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 recorde
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