On 1 April 2019, the Company purchased certain assets from Lumax Auto Technologies Limited at a consideration of ' 2,245.41 lakhs, pursuant to which, the Company has setup in-house Electronic facility at Manesar on 1 April 2019 for designing and manufacturing of Electronics Printed Circuit Boards Assembly (‘PCB’). The said acquisition was primarily done to optimize cost by indigenization of Printed Circuit Board (‘PCB’). The abovementioned purchase of assets had been accounted as Business Combination in accordance with Ind AS 103.
The fair values of assets (i.e. Property, plant and equipment and other intangible assets) acquired amounts to ' 1,267.83 lakhs. Further, Goodwill arising from the acquisition amounts to ' 977.58 lakhs which is attributable to synergies expected to be achieved from integrating PCB into the Company’s existing business.
For the purpose of impairment testing, Goodwill is allocated to the Company as a whole since the performance of the Company is monitored at that level for internal management purposes. The recoverable amount of the CGU was based on its value in use and was determined by discounting the future cash flows to be generated from the continuing use of the CGU. These calculations use cash flow projections over a period of five years, based on next year financial budgets estimated by management, with extrapolation for the remaining period, and an average of the range of assumptions as mentioned below.
The cash flow projections included specific estimates for five years and a terminal growth rate thereafter. The terminal growth rate and EBITDA margins were determined based on management’s estimate. Budgeted EBITDA margin was based on expectations of future outcomes taking into account past experience. The estimation of value in use reflects numerous assumptions that are subject to various risks and uncertainties, including key assumptions regarding expected growth rates and operating margin, expected length and the shape and timing of the subsequent recovery, as well as other key assumptions with respect to matters outside of the Company’s control. It requires significant judgments and estimates, and actual results could be materially different than the judgments and estimates used to estimate value in use.
The Company has used the discount rate which is based on the Weighted Average Cost of Capital (WACC) of comparable market participant, adjusted for specific risks. These estimates are likely to differ from future actual results of operations and cash flows. Based on the above, no impairment was identified as at March 31, 2026 and March 31, 2025 as the recoverable value of the CGU exceeded the carrying value. Management has performed a sensitivity analysis with respect to changes in assumptions for assessment of ‘value in use’ of respective CGUs. Based on this analysis, management believes that change in any of the above assumption would not cause any material possible change in carrying value of unit’s CGUs over and above its recoverable amount.
i) Contractual obligations
The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.
ii) Estimation of Fair Value
Fair value investment property is ascertained on the basis of market rates as determined by the independent registered valuer.
iv) Since it is the vacant land and building, therefore no income and expenditure is recognised in the statement of profit and loss account for the current and previous year.
v) The fair values of investment properties had been determined by independent registered valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017 during the current year. The main inputs used are the ongoing market prices, circle rate published by statutory authorities and discount rate based on comparable transactions and industry data. The Company had no restriction on the realisability of its investment properties and no contractual obligation to purchase, construct or develop investment properties or for repairs, maintenance and enhancement.
Terms/ rights attached to equity shares:
The Company has only one class of equity shares having a par value of ' 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.
I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
18.1 Nature and purpose of reserves
a) Securities premium
Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes in accordance with the provisions of the Companies Act,2013.
b) General reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.
c) Retained earnings
Retained earnings are the profits that the Company has earned 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.
d) Capital reserve
The reserve will be utilized in accordance with the provisions of the Companies Act, 2013.
Term Loan:
a) Term loan amounting to ' 443.93 lakhs (March 31, 2025'2,222.16 lakhs) from bank is secured by way of exclusive charge on Land of Bawal plant (Haryana) along with plant & machinery of Sanand plant (Gujurat), which is financed from the proceeds of Term Loan,This loan is repayable in 18 equal quarterly installment.The interest rate range between 7.00% to 8.00% (March 31, 2025: 8.00% to 8.25%).
b) Term loan amounting to ' 10,747.44 lakhs (March 31, 2025'13,959.41 lakhs) from bank is secured by way of exclusive charge on Land of Bawal plant (Haryana) along with plant & machinery of New Chakan plant (Maharashtra), and Bawal plant (Haryana), which is financed from the proceeds of Term Loan. This loan is repayable in 15 equal quarterly installment. The interest rate range between 6.59% to 8.42% (March 31, 2025 8.00% to 9.13%).
c) Term loan amounting to ' 11,607.27 lakhs (March 31, 2025'12,316.35 lakhs) from bank is secured by way of exclusive charge on secured by way of exclusive charge on Land and Building of Bawal plant (Haryana) along with all present and future plant & machinery of New Chakan plant (Maharastra), Sanand plant (Gujurat) and Bawal plant (Haryana). This loan is repayable in equated 5% quarterly installment, starting from second year.The interest rate range between 5.71% to 8.42% (March 31, 2025 7.41% to 8.25%).
c) Undrawn committed borrowing facility
The Company has availed fund based and non fund based limits amounting to ' 1,38,690.00 lakhs (March 31, 2025 : ' 1,18,110.00 lakhs) from banks and financial institutions. An amount of ' 27,727.15 lakhs remain undrawn as at March 31, 2026 (March 31, 2025 : ' 22,267.66 lakhs).
d) Loan covenants
The Company has satisfied all debt covenants prescribed in the terms of rupee term loans. The other loans do not carry any debt covenant. The Company has not defaulted on any loans payable and term loans were applied for the purpose for which the loans were obtained.
e) Wilful defaulter
The Company have not been declared wilful defaulter by any bank or financial institutions or government or any government authority.
f) The Company has been sanctioned working capital limits from banks and financial institution during the year on the basis of security of current assets of the Company. The quarterly returns/statements filed by the Company for each quarter with such banks and financial institution are in agreement with the books of accounts of the Company.
(b) Exceptional item
During the current year on November 21, 2025, the Government of India notified four new Labour Codes (the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020) consolidating 29 existing labour laws. The Ministry of Labour & Employment published Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has assessed and accounted for the incremental impact of these changes with the best information available and as per guidance provided by the Institute of Chartered Accountants of India. The impact of the above changes result in an increase in gratuity obligation and leave obligation of ' 984.74 and ' 799.93 lacs, respectively which has been disclosed as “Exceptional items” in the standalone financial statements for year ended March 31, 2026. The Company continues to monitor the finalization of Central/ State Rules and clarifications from the Government on other aspects of the Labour Codes and would provide appropriate accounting effect as and when such clarifications are issued.
Notes to the Standalone Financial Statements as at and for the year ended March 31, 2026 (Contd.)
(All amounts are presented in ' Lakhs, unless otherwise stated)
CIN: L74899DL1981PLC012804
41 Event after the reporting date
The Board of Directors of the Company have proposed dividend after the balance sheet date which is subject to approval by shareholders at the annual general meeting. Refer note 18 for details.
42 Significant accounting judgements, estimates and assumptions
The preparation of the Company’s standalone 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.
(i) 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 in the standalone financial statements:
a) Assessment of lease term
The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised
The Company has several 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 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).
b) Revenue from contracts with customers
I n determining the transaction price for the sale of products, the Company considers the effects of various factors such as price variation claim to be passed on and/or recovered to/from the customers based on various parameters like negotiations, ongoing discussion, rebates etc. At each reporting date, the Company evaluates the amounts of price adjustments due to or from its customers, based on ongoing negotiation /contract with customer. The Company exercises significant judgement /estimate calculation of price variations claim to be recorded and are adjusted to reflect the current best estimates.
(ii) 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 standalone 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.
a) Useful lives and estimated value of Property, plant and equipment and intangible assets
The useful lives and residual values of property, plant and equipment and intangible assets are determined by the management based on technical assessment by the management. The Company believes that the derived useful life best represents the period over which the Company expects to use these assets.
b) Taxes
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of business relationships and the longterm nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The
Company establishes provisions, based on reasonable estimates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority.
Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the companies.
c) Gratuity benefit
Defined benefit plans - gratuity 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, defined benefit obligation is highly sensitive to changes in these assumptions All assumptions are reviewed at each reporting date The parameter which is most subjected 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 in currencies consistent with the currencies of the post-employment benefit obligation The mortality rate is based on Indian Assured Lives Mortality (201214) Ultimate 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 Further details about the assumptions used, including a sensitivity analysis, are given in note 39
d) Fair value measurement of financial instrument
When the fair value 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 Discounted Cash Flow (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.
e) Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default, expected loss rates and timing of cash flows The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period As a practical expedient, the Company uses a provision matrix to determine ECL, impairment 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 a default rate of total revenue for trade receivables and contract revenue for contract assets. The Company follows provisioning norms based on ageing of receivables to estimate the impairment allowance under ECL.
f) Impairment of non-financial assets
I mpairment exists when the carrying value of an asset or cash generating unit (CGU) exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a Discounted Cash Flow (DCF) model. The cash flows are derived from the budget for the next five years as approved by the Management and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the terminal growth rate used. During the year the Company has done the impairment assessment of non-financial assets and have concluded that there is no impairment in value of non-financial assets as appearing in the standalone financial statements.
g) Lease incremental borrowing rate
The Company cannot readily determine the interest rate implicit in the lease, therefore its incremental borrowing rate (IBR) to measure lease liability. The IBR is the rate of interest that the Company would have to pay to borrow over similar term, and with a similar security, the fund necessary to obtain an asset of a similar value to the Right-to-use assets in as similar economic environments. The IBR therefore effects what the Company “would have to pay” which requires estimates when no observable rates are available or when they need to be adjusted to reflect the term and conditions of the lease. The Company estimates the IBR using observable inputs such as market interest rates when available.
43 Capital Management
For the purpose of the Company’s capital management, capital includes issued equity capital, all equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholders’ value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants, if any to maintain or adjust the capital structure, the Company reviews the fund management at regular intervals and take necessary actions to maintain the requisite capital structure The Company monitors capital using gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2026 and March 31, 2025.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
45 Fair value hierarchy
All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: Valuation techniques for which the lowest level input that has a significant effect on the fair value measurement are observable, either directly or indirectly.
Level 3: Valuation techniques for which the lowest level input which has a significant effect on the fair value measurement is not based on observable market data.
The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.
48 Financial risk management objectives and policies
The Company’s principal financial liabilities comprise of trade and other payables, borrowings, payables for property, plant and equipment and other financial liabilities. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include trade and other receivables, government grants, cash and cash equivalent, other bank balances, fixed deposits and security deposits that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by Finance department that advises on financial risks and the appropriate financial risk governance framework for the Company. The Finance department provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
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, currency risk, commodity risk and equity price risk. Financial instrument effected by market risk include loans, borrowings and deposits.
The sensitivity analyses in the following sections relate to the position as at March 31, 2026 and March 31, 2025.
The following assumptions have been made in calculating the 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.
i) Interest rate risk
I nterest 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 interest bearing financial liabilities includes borrowings with variable interest rates.
Foreign currency risk is the risk that the fair value or future cash flows of a foreign currency exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency).
The Company transacts business in local currency as well as in foreign currency. The Company has foreign currency trade payables, trade receivables, banks and is therefore, exposed to foreign exchange risk.
Foreign currency rate sensitivity
The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.
The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities.
iii) Equity Price Risk
The Company’s investment in listed securities susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company’s senior management on a regular basis. The Company’s Board of Directors reviews and approves all equity investment decisions.
At the reporting date, the exposure to listed equity securities at fair value was ' 25.95 lakhs. A decrease and increase of 10% on the NSE market index could have an impact of approximately ' 2.60 lakhs on the profit or loss.
iv) Commodity price risks
Fluctuation in commodity price in market affects directly or indirectly the price of raw material and components used by the Company. The Company sells its products mainly to Original Equipment Manufacturer (OEM’s) whereby there is a regular negotiation / adjustment of sale prices on the basis of changes in commodity prices. The Company is not significantly impacted by commodity price risk.
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. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.
Trade receivables
The Company is exposed to credit risk arising primarily from trade receivables. The Company’s customer base largely comprises Original Equipment Manufacturers (OEMs), large corporates, and Tier-1 vendors of OEMs, which are generally considered to have strong credit profiles. Based on historical collection experience, the Company has not incurred material credit losses or bad debts. Credit evaluations are performed for new and non-OEM customers before extending credit facilities. The Company continuously monitors outstanding receivables and customers’ adherence to agreed payment terms. Ongoing review of receivable aging and collection trends enables timely identification and management of potential credit risks.
The Company assesses impairment of trade receivables using the expected credit loss (ECL) model, considering historical default experience, customer-specific factors, and forward-looking information. Based on the quality of its customer portfolio and past recovery trends, management believes that the credit risk associated with trade receivables is low and that adequate provisions have been recognized in accordance with applicable accounting standards.
C. Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including loans from banks at an optimised cost.
The Company has net current liabilities as at Balance sheet date. Considering the projections of future cash flow from operations, and availability of undrawn borrowing limits, the management is confident that the Company shall be able to meet its financial obligations as and when due over the next 12 months and realize its assets in the normal course of business.
The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will be paid on those liabilities upto the maturity of the instruments.
49 As at March 31, 2026. the Company has net current liabilities of ' 50,625.82 lakhs. Considering the projections of future cash flow from operations and unutilized borrowing limits, the management is confident that the Company shall be able to meet its financial obligations, as and when due over the next 12 months for continuance of its business operations. Accordingly, these audited standalone financial statements have been prepared on going concern basis.
50 Information on details of loans, guarantees and investments under Section 186 of the of the Companies Act 2013.
a) There are no loans or guarantees which are required to be disclosed under Section 186 (4) of the Companies Act 2013.
b) Details of investments made are given in note 8.
51 The Company’s business activity falls within a single business segment i.e. manufacturing of automotive components and the chief operating decision maker (CODM) reviews the operations of the Company as a whole, accordingly there are no additional disclosures to be furnished in accordance with the requirement of Ind AS 108 “Operating Segments” with respect to single reportable segment. Further, the operations of the Company is domiciled in India and therefore there are no reportable geographical segment.
Revenue from operations includes ' 2,64,632.25 lakhs (March 31, 2025 ' 2,00,578.32 lakhs) arising from product suppled/ services provided to four customer (March 31, 2025 four customer) exceeding 10% from each customer.
52 The Company has used such 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 such accounting software except that audit trail feature is not enabled for application’s underlying database and the same is also not enabled for certain changes made using privileged/ administrative access rights. Further, there is no instance of audit trail feature being tampered with in respect of both accounting software. Additionally, in respect of the financial years March 31, 2025 and March 31, 2024, the Company has preserved the requirements of recording audit trail to the extent it was enabled and recorded in respect of those years as per the statutory requirements for record retention.
53 Other Statutory Information
(i) No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1998 and rules made thereunder.
(ii) The Company does not have transactions with struck off companies.
(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 have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vi) The Company have 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 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.
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