XI) 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.
XII) 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.
XIII) 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.
XIV) 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.
XV) Leases
The company determines whether an arrangement contains a lease by assessing whether the fulfillment of a transaction
is dependent on the use of a specific asset and whether the transaction conveys the right to control the use of that asset
to the Company in return for payment.
Company as a lessee
The company applies a single recognition and measurement approach for all leases, except for short-term leases and leases
of low-value assets. The company recognises lease liabilities to make lease payments and right-of-use assets representing
the right to use the underlying assets.
(i) Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount
of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement
date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter
of the lease term and the estimated useful lives of the assets, as follows:
Building 3 to 15 years
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the
exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use
assets are also subject to impairment.
(ii) Lease liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in substance
fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and
amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of
a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the
lease, if the lease term reflects the Company exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are
incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the
lease commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for
the lease payments made. In addition, the carrying amount of lease liabilities is re-measured if there is a modification,
a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change
in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase
the underlying asset. The Company's lease liabilities are included in Interest-bearing loans and borrowings.
(iii) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases of machinery and
equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not
contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office
equipment that are considered to be low value. Lease payments on short-term leases and leases of low value assets
are recognised as expense on a straight-line basis over the lease term.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an
asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease
terms and is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs
incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and
recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the
period in which they are earned.
XVI) Government Grants
The company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the
right to control the use of an identified asset for a period of time in exchange for consideration.
XVII) 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.
XVIII) 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.
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.
XXII) 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. During the year ended March 31, 2026, MCA notified
amendments to Ind AS 1 - Presentation of Financial Statements, Ind AS 7 - Statement of Cash Flows, Ind AS 107 -
Financial Instruments: Disclosures, Ind AS 12 - Income Taxes and Ind AS 21 - The Effects of Changes in Foreign Exchange
Rates, effective from April 1, 2025. The Company has assessed these amendments and concluded that they do not have a
material impact on its financial statements.
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 H2/-. 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 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.
Nature and Purpose of Other Equity:
A. Securities Premium Reserve: This reserve represents premium on issue of shares and can be utilized 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 general reserve can be utilised only in accordance with the
specific requirement of Companies Act, 2013.
C. Capital Redemption Reserve: This reserve represents surplus from buy-back of Equity Shares and redemption of preference
shares.
D. Amalgamation Reserve: This reserve represents difference between paid up value of Preference Shares allotted to
amalgamated companies and the paid up value of Share Capital of Manaksia Limited with amalgamated companies.
E. Investment Reserve: This reserve represents Subsidy received from various Government authorities.
F. Capital Reserve: This reserve represents Subsidy received from various Government authorities.
G. Surplus in the Statement of Profit and Loss generally represent the undistributed profits/amount of accumulated earnings of
the Company.
H. Other Comprehensive Income Reserves :
i) Gains/(Losses) from Investments in Equity Instruments designated at FVTOCI : This reserve represents effect of
remeasurements of fair valuation of Quoted Equity Instruments that will not be reclassified to Statement of Profit & Loss.
f) Sensitivity Analysis
Significant actuarial assumptions for the determination of the define benefit obligation are discount rate, expected
salary increase and mortality. The sensitivity analysis below have determind based on reasonably possible changes of
the assumptions occuring at the end of the reporting period, while holding all other assumptions constant. The result
of sensitivity analysis is given below :
36. Disclosures on Financial Instruments (contd.)
II) Fair Value Hierarchy
All Financial Assets & Financial Liabilites are carried at amortised cost except Investments in quoted Equity Instruments and
Units of Mutual Funds, which have been fair valued.
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 heierarchy of Financial Assets and Financial Liabilites measured at Fair Value on
a recurring basis :
III) Financial Risk Management
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 Dividend
receivable from foreign subsidiary in foreign currencies. The Company uses foreign exchange and forward contracts
primarily to hedge foreign exchange exposure.
36. Disclosures on Financial Instruments (contd.)
ii) Interest Rate Risk
Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. The Company
have interest bearing liabilities having MCLR based floating rate of interest. The Company's interest rate exposure
is mainly related to its debt obligations.
Based on the composition of debt as at March 31, 2026 and March 31, 2025 a 100 basis points increase in interest
rates would increase the Company's finance costs and thereby consequently reduce net profit and equity before
considering tax impacts by approximately H13.01 lacs for the year ended March 31, 2026 (2024-25: H23.35 lacs).
This calculation assumes that the change occurs at the balance sheet date and has been calculated based on risk
exposures outstanding as at that date. The period end balances are not necessarily representative of the average
debt outstanding during the period.
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 fair value of quoted investments held by the Company exposes the Company to equity price risks. In
general, these investments are held for trading purposes.
The fair value of quoted investments in equity, classified as Fair Value through Other Comprehensive Income as at
March 31, 2026 and March 31, 2025 was H2.87 lacs and H3.29 lacs respectively.
A 10% change in equity prices of such securities held as at March 31, 2026 and March 31, 2025 would result in an
impact of H0.29 lacs and H0.33 lacs respectively on equity before tax impact.
The fair value of unquoted investments in mutual fund, classified as Fair Value through Profit & Loss as at March 31,
2026 and March 31, 2025 was H9790.9033644 lacs and H5144.89 lacs respectively.
A 10% change in prices of such securities held as at March 31, 2026 and March 31, 2025 would result in an impact
of H979.09 lacs and H514.49 lacs respectively on equity before tax impact.
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 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, 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.
37. Leases
Company as a Lessee
The Company had entered into lease arrangements for office premises used in its operations with an original lease term
of 6 years. The lease expired during the financial year ended 31 March 2025 and the related Right-of-Use (""ROU"") Asset
was fully depreciated and the corresponding Lease Liability was fully settled as at 31 March 2025. Accordingly, there are no
outstanding lease-related assets or liabilities as at 31 March 2026 and 31 March 2025.
However, depreciation on the ROU Asset and interest on the Lease Liability amounting to H6.23 lacs and H0.31 lacs
respectively were recognized in the Statement of Profit and Loss during the financial year ended 31 March 2025.
38. Capital Management
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. The table below summarises the capital, net debt and net debt to equity ratio of the Company.
Total revenue from customers includes sales to two parties of H15,918.98 lacs (Previous year includes sales to single party
of H15606.50 lacs ) which represents more than 10% of the total revenue from single customers of the Company.
42.2.Proposed Demerger - Scheme of Arrangement of Manaksia Ltd and Manaksia Ferro Industries Ltd, 2025
The Board of Directors of the Company, at its meeting held on March 26, 2025, approved a Scheme of Arrangement under
Sections 230 to 232 of the Companies Act, 2013 (“"Demerger Scheme””), for the proposed demerger of the Metal Product
business undertaking (as defined in the Demerger Scheme) conducted through domestic entities of the Company into
Manaksia Ferro Industries Limited, a wholly owned subsidiary.
The proposed Scheme has been approved by BSE Limited, National Stock Exchange of India Limited, and the Securities
and Exchange Board of India (SEBI). The Scheme has been filed with the National Company Law Tribunal (NCLT) and
Shareholders have approved the same in the Extra Ordinary Meeting held on dated 10th January 2026, and is subject to
further approval by the NCLT.
Pending receipt of necessary approvals, no effect of the proposed demerger is warranted and accordingly has not been
given in the financial statements.”
i. The Company does not has any Benami Property, where any proceedings has been initiated or pending against the Company
for holding any Benami property.
ii. The Company does not has any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iii. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
iv. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies):
(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.
v. The Company has 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 to or on behalf of the Ultimate Beneficiaries.
vi. The Company does not has any 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.
vii. The Company does not has any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956.
viii. The Company has compiled 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.
ix. There are no events or transactions after the reporting period which is required to be disclosed under Ind AS 10.
x. The Company is not a Core Investment Company as defined in the regulations made by Reserve Bank of India. The Company
has no Core Investment Company as part of the Group.
45 . The Government of lndia has consolidated 29 existing labour laws into four Labour Codes: Code on Wages, 2019; Code
on Social Security, 2020; Industrial Relations Code, 2020; and Occupational Safety, Healtlh and Working Conditions Code,
2020. These Codes became effective from November 21, 2025. The Ministry of Labour & Employment has issued draft
Central Rules and FAQs to facilitate understanding of tile regulatory changes and to enable assessment of their financial
implications.
Based on the information presently available, the impact arising from the implementation of the Labour Codes in respect of
the Company's own employees has been considered in the standalone and consolidated financial results and is not material.
Management is in the process of assessing the impact in respect of contractual labour engaged by the Company and, based
on the assessment carried out to date, does not expect such impact to be material.
The Central and State Rules under the Labour Codes are yet to be notified and, upon such notification, the Company
will reassess and recognise the impact, if any, on employee benefit obligations in accordance with applicable accounting
standards.
46. Corresponding comparative figures for the previous years have been regrouped and readjusted wherever considered
necessary to confirm to the current year presentation.
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