IX) Provisions and Contingent Liabilities
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the Company or a present obligation that arises from past events where it is either not probable that
an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
X) Foreign Currency Transactions & Translations
The functional currency of the Company is Indian Rupee. These Financial Statements are presented in Indian Rupee
(rounded off to the nearest Lacs).
Transactions in foreign currencies entered into by the company are accounted at the exchange rates prevailing on
the date of the transaction. Gains & losses arising on account of realization are accounted for in the Statement
of Profit & Loss.
Monetary Assets & Liabilities in foreign currency that are outstanding at the yearend are translated at the yearend
exchange rates and the resultant gain/loss is accounted for in the Statement of Profit & Loss.
XI) Cash and Cash Equivalents
Cash and Cash Equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value.
XII) Employee Benefits
Defined Contribution Plan
The Company makes contributions towards provident fund to the regulatory authorities to a defined contribution
retirement benefit plan for qualifying employees, where the Company has no further obligations. Both the employees
and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the
covered employee's salary.
Defined Benefit Plan
Gratuity is paid to employees under the Payment of Gratuity Act 1972 through unfunded scheme. The Company's
liability is actuarially determined using the Projected Unit Credit method at the end of the year in accordance with
the provision of Ind AS 19 - Employee Benefits.
The Company recognizes the net obligation of the defined benefit plan in its balance sheet as an asset or liability.
Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other
comprehensive income and are not reclassified to profit or loss in subsequent periods.
The Company recognises the changes in the net defined benefit obligation like service costs comprising current
service costs, past-service costs, gains and losses on curtailments and non-routine settlements and net interest
expense or income, as an expense in the Statement of Profit and Loss.
Short term employee benefits are charged off at the undiscounted amount in the year in which the related
services are rendered
XIII) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes
a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset.
All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange
differences to the extent regarded as an adjustment to the borrowing costs.
XIV) Leases
Leases under which the company assumes substantially all the risks and rewards of ownership are classified as finance
leases. When acquired, such assets are capitalized at fair value or present value of the minimum lease payments at the
inception of the lease, whichever is lower. Lease payments under operating leases are recognized as an expense on a
straight line basis in net profit in the Statement of Profit & Loss over the lease term.
XV) Government Grants
The Company recognizes government grants only when there is reasonable assurance that the conditions attached to
them shall be complied with and the grants will be received. Grants related to assets are treated as deferred income
and are recognized as other income in the Statement of profit & loss on a systematic and rational basis over the
useful life of the asset. Grants related to income are recognized on a systematic basis over the periods necessary to
match them with the related costs which they are intended to compensate and are deducted from the expense in the
statement of profit & loss.
XVI) Income Taxes
Income tax expense is recognized in the Statement of Profit & Loss except to the extent that it relates to items
recognized directly in equity, in which case it is recognized in other comprehensive income. Provision for current tax is
made at the current tax rates based on assessable income.
Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the Financial Statements except when the deferred income tax
arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination
and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax
benefit will be realized.
Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or
substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which
those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred
income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the
substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future
taxable profit will be available against which the deductible temporary differences and tax losses can be utilized.
Deferred income taxes are not provided on the undistributed earnings of subsidiaries and branches where it is expected
that the earnings of the subsidiary or branch will not be distributed in the foreseeable future. The company offsets
current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts
and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
XVII) Earnings per Share
Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of
the Company by the weighted average number of equity shares outstanding during the period. The weighted average
number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in
a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity
shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of
all dilutive potential equity shares.
XVIII) Current and Non-current classification
The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.
An asset is classified as current when it is:
i) expected to be realised or intended to be sold or consumed in the normal operating cycle,
ii) held primarily for the purpose of trading,
iii) expected to be realised within twelve months after the reporting period, or
iv) cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.
A liability is classified as current when it is:
i) it is expected to be settled in the normal operating cycle,
ii) it is due to be settled within twelve months after the reporting period, or
iii) there is no unconditional right to defer settlement of the liability for at least twelve months after the
reporting period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as noncurrent.
XIX) Dividend
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
XX) Rounding of Amounts
All amounts disclosed in the standalone Financial Statements and notes have been rounded off to the nearest Lacs
(with two places of decimal) as per the requirement of Schedule III, unless otherwise stated.
XXI) Statement of Cash flows
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and
item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing
and financing activities of the Company are segregated.
e) Terms/rights attached to each class of shares
Equity Shares:
The Company has only one class of equity shares having a par value of Rs.1/-. Each holder of equity share 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 the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the 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.
f) Shares Warrants / Shares issued
1. The Company has issued and allotted 2,24,00,000 Equity Share Warrants of Rs. 18 each to Beacon Stone
Capital VCC, Silver Stallion Ltd., Karan Agrawal, Shailaja Agrawal and Tushar Agrawal on 11th October, 2023. The
Company has received 25% upfront money amounting to Rs. 1008 lakhs against the allotment of 2,24,00,000
Equity Share Warrants, convertible into One (1) Equity Share and the conversion can be exercised at any time
during the period of Eighteen months from the date of allotment of Equity Share Warrants, as the case maybe,
on such terms and conditions as applicable.
Out of the above, Equity Share Warrants, the company has allotted 87,35,000 equity shares to Beacon Stone
Capital VCC - Beacon Stone I, Karan Agrawal, Shailaja Agrawal and Tushar Agrawal after receiving 75% of
balance on 15/01/2024, 1,09,00,000 equity shares to Silver Stallion Ltd., Karan Agrawal, Shailaja Agrawal and
Tushar Agrawal after receiving 75% of balance on 10/04/2025 and 27,65,000 equity shares to Beacon Stone
Capital VCC - Beacon Stone I after receiving 75% of balance on 11/04/2025 respectively through conversion of
share warrants on preferential basis in terms of chapter V of SEBI (ICDR) Regulation 2018.
2. The Company has issued and allotted 2,07,00,000 Equity Share Warrants of Rs. 65 each to Promoters and
Public group on 30th January, 2025. The Company has received 25% upfront money amounting to Rs. 3363.75
lakhs against the allotment of 2,07,00,000 Equity Share Warrants, convertible into One (1) Equity Share and the
conversion can be exercised at any time during the period of six/Eighteen months from the date of allotment of
Equity Share Warrants, as the case maybe, on such terms and conditions as applicable.
Out of the above, Equity Share Warrants, the company has allotted 52,00,000, 57,90,000, 7,55,000, 49,72,500
and 1182500 equity shares to Promoters and Public Group after receiving 75% of balance on 27/03/2025,
19/05/2025, 06/06/2025, 25/06/2025 & 04/07/2025 respectively through conversion of share warrants on
preferential basis in terms of chapter V of SEBI (ICDR) Regulation 2018.
II) Defined Benefit Plan
Gratuity is paid to employees under the Payment of Gratuity Act 1972 through unfunded scheme. The present value
of obligation is determined based on actuarial valuation using Projected Unit Credit Method, which recognizes each
period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately
to build up the final obligation.
The Company's capital management is intended to create value for shareholders by facilitating the meeting of long term
and short term goals of the Company.
The Company determines the amount of capital required on the basis of annual business plan coupled with long term and
short term strategic investment and expansion plans. The funding needs are met through cash generated from operations
and short term bank borrowings.
The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall
debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents, other bank
balances and current investments.
II) Fair Value Hierarchy
All Financial Assets & Financial Liabilities are carried at amortised cost.
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable
The following table represents the fair value hierarchy of Financial Assets and Financial Liabilities measured at Fair
Value on a recurring basis :
In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates,
interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial
instruments. The Company's focus is on foreseeing the unpredictability of financial markets and seek to minimize
potential adverse effects on its financial performance.
a) Market Risk -
Market Risk Comprises of Foreign Currency Exchange Rate Risk, Interest Rate Risk & Equity Price Risk
i) Exchange Rate Risk
The fluctuation in foreign currency exchange rates may have a potential impact on the Statement of Profit
and Loss and Equity, where any transactions are denominated in a currency other than the functional
currency of the Company.
The Company's Exchange Rate Risk exposure is primarily due to Trade Payables, Trade Receivables and
Borrowings in the form of Buyers' Credit denominated in foreign currencies. The Company uses foreign
exchange and forward contracts primarily to hedge foreign exchange exposure.
An appreciation/depreciation of the foreign currencies with respect to functional currency of the Company
by 1% would result in an decrease/increase in the Company's Net Profit before Tax by approximately Rs 5.85
lakhs for the year ended March 31, 2026 (March 31, 2025 : - Rs 4.26 lakhs)
ii) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company constantly monitors the credit markets and
rebalances its financing strategies to achieve an optimal maturity profile and financing cost.
iii) Equity Price Risk
Equity price risk is related to change in market reference price of investments in equity securities held by
the Company. The Company has made investments in its subsidiaries, hence the Company is not primarily
exposed to equity price risk.
b) Liquidity Risk -
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity
risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company has obtained fund and non-fund based working capital facilities from various banks. The Company
invests its surplus funds in bank fixed deposit and in mutual funds, which carry no or low market risk.
The following table shows a maturity analysis of the Company's Financial Liabilities on the basis of undiscounted
contractual payments :
c) Credit Risk -
Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according to
the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of
deterioration of creditworthiness.
Financial instruments that are subject to credit risk principally consist of Trade Receivables, Loans Receivables,
Investments, Cash and Cash Equivalents and Financial Guarantees provided by the Company. None of the
financial instruments of the Company result in material concentration of credit risk.
The Company has a policy of dealing only with credit worthy counter parties as a means of mitigating the risk
of financial loss from defaults. The Company manages risks through credit approvals, establishing credit limits
and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the
normal course of business.
44 Balances of some parties (including of Trade receivables and Trade payables) and loans and advances are subject to
reconciliation/confirmations from the respective parties. The management does not expect any material differences
affecting the financial statement for the year.
45 The Company has presented segment information in the consolidated financial statements which are presented in the
same financial report. Accordingly, in terms of Paragraph 4 of Ind AS 108 ‘Operating Segments', no disclosures related
to segments are presented in this standalone financial statements.
46 Corresponding comparative figures for the previous year have been regrouped and readjusted wherever considered
necessary to conform to the current year presentation.
47 The company does not have any property whose title deeds are not held in the name of the company.
48 Company has not revalued its Investment Property during the financial year 2025-26
49 Company has not revalued its Property, Plant and Equipment during the financial year 2025-26
50 Company does not have any intangible asset so there cannot be any revaluation of the same. The Company has no
Intangible Assets under development during the financial year 2025-26
51 The company is not holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and the rules made thereunder.
52 The Company has borrowings from banks or financial institutions on the basis of security of current assets. The
quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in
agreement with the books of accounts.
53 The company has not been declared as a wilful defaulter by any bank or financial Institution or other lender till the
Financial Year 2025-26
54 As per the information available with the management, the company has not entered into any transactions with the
companies who have been struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956,
55 Company has filed necessary forms with ROC for Creation and satisfaction of Charges within stipulated time period
during the financial year 2025-26
56 Compliance with number of layers of companies
The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017
58 Compliance with approved Scheme(s) of Arrangements
The above clause is not applicable
59 During the course of preparation of the financial statements for the year ended 31 March 2026, the management
identified that an amount of H 489.70 lacs representing Secured Borrowings (Current) from Bank had inadvertently
been presented under "Trade Payables" in the financial result published for Quarter-4 of financial year 2025-26.
Accordingly, the said amount has been regrouped and reclassified from "Trade Payables" to "Borrowings (Current-
Secured" in the financial statements to appropriately reflect the nature of the liability in accordance with the
requirements of Schedule III to the Companies Act, 2013 and the applicable Indian Accounting Standards.
The above regrouping represents a presentation/classification adjustment only and has no impact on the total
liabilities, total equity, total assets, profit after tax, earnings per share, cash flows, or net worth of the Company.
|