3.11 Provisions, contingent liabilities and contingent assets
Provision
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount can
be reliably estimated. Provisions are not recognised for future operating losses. Provision are measured at
the present value of management's best estimate of the expenditure required to settle the present obligation
at the end of the reporting period. Provisions are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability. The
increase in the provision due to the passage of time is recognised as finance cost.
Contingent liabilities and contingent assets
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 or a reliable estimate of the amount cannot be
made. Information on contingent liability is disclosed in the notes to the standalone financial statements.
Contingent assets are not recognized in the standalone financial statements. However, it is disclosed only
when an inflow of economic benefits is probable.
3.12 Borrowing costs
Borrowing costs are interest and other costs (including exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with
the borrowing of funds.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to
the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.
3.13 Employee benefits
Short-term employee benefits:
All employee benefits payable wholly within twelve months of rendering the service are classified as short¬
term employee benefits. These benefits include salary, wages, short-term compensated absences,
performance incentives, etc. The undiscounted amount of short -term employee benefits expected to be paid
in exchange for the services rendered by employees is recognized during the period of rendering of service by
the employee.
Long-term employee benefits:
(i) Defined contribution plans:
The Company's contribution to provident fund, superannuation fund, employee state insurance scheme
and labour welfare fund are considered as defined contribution plans. The Company's contribution paid /
payable under the plans are recognised as an expense in the standalone statement of profit and loss
during the period in which the employee renders the related service.
(ii) Defined benefits plan:
Post-employment benefit:
The Company's gratuity scheme is a defined benefit plan. The Company's net obligation in respect of the
gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have
earned in return for their service in the current and prior periods; that benefit is discounted to determine
its present value. The present value of the obligation under such defined benefit plan is determined
based on independent actuarial valuation at the balance sheet date using the 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 obligation is
measured at the present value of the estimated future cash flows. The discount rates used for
determining the present value of the obligation under defined benefit plan are based on the market yields
on Government securities as at the balance sheet date. Actuarial gains and losses are recognized
immediately in the standalone statement of profit and loss.
Other long-term employment benefit:
The employees can carry-forward a portion of the unutilised accrued compensated absences and utilise
it in future service periods or receive encashment on termination of employment. Since the
compensated absences do not fall due wholly within twelve months after the end of the period in which
the employees render the related service and are also not expected to be utilized wholly within twelve
months after the end of such period, the benefit is classified as a long-term employee benefit. The
Company records an obligation for such compensated absences in the period in which the employee
renders the services that increase this entitlement. The obligation is measured on the basis of
independent actuarial valuation using the projected unit credit method.
3.14 Leases
At inception of contract, the Company assesses whether the Contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. At inception or on reassessment of a contract that contains a lease component,
the Company allocates consideration in the contract to each lease component on the basis of their relative
standalone price.
As a lessee:
Leases are recognised as a Right-of-Use (ROU) asset at cost with a corresponding lease liability, except for
leases with term of less than twelve months (short term) and low-value assets in accordance with Ind AS 116
‘Leases'.
The cost of the right-of-use assets comprises the amount of the initial measurement of the lease liability, any
lease payments made at or before the inception date of the lease plus any initial direct costs etc.
Subsequently, the right-of-use asset is measured at cost less any accumulated depreciation and
accumulated impairment losses, if any. The right-of-use asset is depreciated using the straight-line method
from the commencement date over the shorter of lease term or useful life of right-of-use assets.
For lease liabilities at the commencement date, the Company measures the lease liability at the present value
of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate
implicit in the lease, if that rate is readily determined, if that rate is not readily determined, the lease payments
are discounted using the incremental borrowing rate.
For short-term and low value leases, the Company recognizes the lease payments as an operating expense
in the Statement of Profit and Loss on a straight-line basis over the lease term.
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 on such operating leases are recognised in the
statement of profit and loss on an accrual basis in accordance with the lease agreement. 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.
3.15 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs)
and the redemption amount is recognised in the statement of profit and loss over the period of the borrowings
using the effective interest method.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in the statement of profit and loss as other gains/(losses).
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer
settlement of the liability for at least 12 months after the reporting period.
3.16 Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares.
3.17 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (“CODM”) of the Company.
Notes:
(i) Refer note 58 for capital work in progress ageing.
(ii) There is no project under capital work in progress which has exceeded its cost compared to its original plan.
(iii) There is a project under capital work in progress whose completion is overdue compared to its original plan - Refer Note 58.
(iv) The Company under a project with Pune Municipal Corporation built EV charging stations which were initially recognised
as capital work-in-progress. Under the arrangement, the Company has a right to charge users of the EV charging
infrastructure during the operation and maintenance period of 8 years from the date of handover, at the end of which the
infrastructure will be transferred to Pune Municipal Corporation. In the current year, the Company has capitalised the
amount aggregating to Rs. 501.94 lakhs in relation to EV charging stations handed over to Pune Municipal Corporation
from capital work-in-progress to Intangible Assets (Right to charge users - EV charging stations). This reflects the
substance of the asset as a right to operate and earn economic benefits over the period of 8 years.
(iii) The Company has neither raised loans during the year on the pledge of securities held in its subsidiaries and
associates (as defined under the act) nor has not taken any funds from any entity or persons on account of or
to meet the obligations of its subsidiaries and associates. The Company does not hold any investment in any
jointly controlled entity (as defined under the act) during the year ended 31 March 2026.
(iv) (a) During the year, unsecured loan of Rs. 476.57 lakhs to a subsidiary company, Evigo Charge Private Limited
(''Evigo''), was converted into equity shares on 18 February 2026 through allotment of47,65,681 equity shares
of Rs. 10 each at par on rights basis. Consequent to the conversion, equity stake of the Company in the
subsidiary increased from 91.74% to 96.52%.
In previous year, the holding of the Company in Evigo changed from 99.44% to 91.74% on account of various
events like allotment of 2,77,000 sweat equity shares by Evigo, allotment of 11,18,382 equity shares to the
Company pursuant to conversion of its loan (including interest) and acquisition of 2,500 equity shares by the
Company from other shareholders of Evigo.
(b) During the year, the Company on 11 October 2025 has completed acquisition of additional 26% equity shares
in MEL Shipyard Private Limited (formerly known as Xanatech Synergies Private Limited), a subsidiary
company, in which the Company already held 74% equity stake. The additional 2,600 equity shares of face
value of Rs. 10 each are acquired at a consideration of Rs 0.14 lakhs. Post this acquisition, MEL Shipyard
Private Limited has become a wholly owned subsidiary of the Company.
(c) During the year, the Company on 12 May 2025 completed acquisition of additional 10% equity shares of
Marks Marine Radio Private Limited ("MMRPL'') for a consideration of Rs 50 lakhs thereby increasing its stake
from 49.2% to 59.23%. Post this acquisition, MMRPL has became a subsidiary of the Company.
(d) During the year, the Company on 27 October 2025 incorporated a wholly owned subsidiary company under
Section 8 of the Companies Act, 2013, for undertaking activities relating to Corporate Social Responsibility
under the name Premalata Foundation. The initial issued share capital of Premalata Foundation is 10,000
equity shares of face value of Rs. 10 each. The contribution to initial share capital is made by the Company on
22 December 2025.
(e) During the year, the Company on 06 October 2025 has incorporated a wholly owned subsidiary in Singapore
named MEL Power Systems Pte Ltd ("MEL"). The initial share capital of MEL is 1 share of face value of 1 SGD
per share. The contribution to initial share capital is made at face value by the Company on 06 October 2025.
(i) During the year, 20,00,000 convertible warrants were converted into equivalent number of equity shares by
the Promoters and Non-Promoters. As per the terms of allotment, balance 75% subscription money payable
by the warrant holder at the time of allotment of equity shares pursuant to exercise of option was received by
the Company. Out of this, 16,50,000 equity shares issued on conversion of warrants were reflected in Benpos
report of the Company subsequent to year end.
(ii) During the previous year in accordance with the regulations for preferential issue contained in Chapter V of
the SEBI (ICDR) Regulations ("ICDR Regulations"). The Company approved allotment of 52,79,160 equity
shares on a preferential basis at a price of Rs. 205 each (including premium of Rs. 203 per share).
During the previous year, the Company also issued 20,00,000 convertible warrants carrying an entitlement to
subscribe to an equivalent number of equity shares to the Promoters and Non-Promoters allotees. As per the
terms of allotment of share warrants, the Company had received subscription money equivalent to 25% of the
issue price and the balance 75% shall be paid by the warrant holder at the time of allotment of equity shares
pursuant to exercise of option.
b) Rights, preference and restrictions attached to the equity shares:
The Company has single class of equity shares having a par value of Rs. 2 each. Each holder of equity shares is
entitled to one vote per share.
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 reserves:
Securities premium: Securities premium is used to record the premium on issue of shares. The reserve is utilized
in accordance with the provision of the Companies Act, 2013.
General reserve: General reserve is created from time to time by way of transfer of profits from retained earnings for
appropriation purposes. General reserve is created by a transfer of one component of equity to another.
Retained earnings: Retained earnings represents surplus / accumulated earnings of the Company and are
available for distribution to shareholders. Further, it also includes the impact of remeasurements of the defined
benefit obligations, net of tax.
Other component of equity: Other component of equity represents fair value of financial guarantee.
Money received against share warrants: Represents subscription money received by the Company as per the
terms of allotment equivalent to 25% of the issue price of share warrants.
Notes:
(a) Indian rupee vehicle loan from HDFC Bank Limited carrying value of Rs. 4.59 lakhs as at 31 March 2026 (31
March 2025: Rs. 8.45 lakhs) secured against hypothecation of vehicle is repayable in 39 monthly installments.
The loan carry an interest of 8.80% p.a. (31 March 2025: 8.80% p.a.).
(b) Indian rupee vehicle loan from HDFC Bank Limited carrying value of Rs. 13.41 lakhs as at 31 March 2026 (31
March 2025: Rs. 19.79 lakhs) secured against hypothecation of vehicle is repayable in 39 monthly installments.
The loan carry an interest of 9.60% p.a. (31 March 2025: 9.60% p.a.)
(c) Indian rupee vehicle loan from IndusInd Bank Limited carrying value of Rs. 1.45 lakhs as at 31 March 2026 (31
March 2025: Rs. 4.72 lakhs) secured against hypothecation of vehicle is repayable in 23 monthly installments.
The loan carry an interest of 10.56% p.a. (31 March 2025: 10.56% p.a.)
(d) Indian rupee vehicle loan from Union Bank of India carrying value of Rs. 54.93 lakhs as at 31 March 2026 (31
March 2025: Rs. Nil) secured against hypothecation of vehicle is repayable in 60 monthly installments. The loan
carry an interest of 8.10% p.a. (31 March 2025: N.A.)
(e) Indian rupee vehicle loan from Bank of Baroda carrying value of Rs. 12.37 lakhs as at 31 March 2026 (31 March
2025: Rs. Nil) secured against hypothecation of vehicle is repayable in 36 monthly installments. The loan carry
an interest of 8.25% p.a. (31 March 2025: N.A.).
(f) Indian rupee vehicle loan from HDFC Bank Limited carrying value of Rs. 18.65 lakhs as at 31 March 2026 (31
March 2025: Rs. Nil) secured against hypothecation of vehicle is repayable in 60 monthly installments. The loan
carry an interest of 9.00% p.a. (31 March 2025: N.A.).
(g) Indian rupee vehicle loan from Axis Bank Limited carrying value of Rs. 15.73 lakhs as at 31 March 2026 (31
March 2025: Rs. Nil) secured against hypothecation of vehicle is repayable in 39 monthly installments. The loan
carry an interest of 8.25% p.a. (31 March 2025: N.A.).
(h) Indian rupee term loan from The Karur Vysya Bank Limited carrying value of Rs. 685.34 lakhs as at 31 March
2026 (31 March 2025: Rs.1,112.06 lakhs) is primarily secured by mortgage of commercial land and building
situated at ground 2 upper floors, road no.9, MIDC Marol, Plot No.16, Village Mulgaon, Andheri East, Mumbai -
400093. The loan is repayable in 120 monthly installments. The loan carry an interest of 3 months MCL rate of the
bank Spread of 0.10% p.a. (31 March 2025: 3 months MCL rate of the bank Spread of 0.10% p.a.). The loan is
backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate guarantee of KDU
Enterprises Private Limited.
(i) Indian rupee vehicle loan from Kotak Mahindra Prime Limited carrying value of Rs Nil as at 31 March 2026 (31
March 2025: Rs 5.15 lakhs) secured against hypothecation of vehicle was repayable in 60 monthly installments.
The loan carry an interest of N.A. (31 March 2025: 7.72% p.a.).
(j) Indian rupee vehicle loan from Kotak Mahindra Prime Limited carrying value of Rs. 6.99 lakhs as at 31 March
2026 (31 March 2025: Rs 16.73 lakhs) secured against hypothecation of vehicle is repayable in 36 monthly
installments. The loan carry an interest of 8.97% p.a. (31 March 2025: 8.97% p.a).
(k) Indian rupee vehicle loan from Mercedes-Benz Financial Services India Private Limited carrying value of Rs.
16.57 lakhs as at 31 March 2026 (31 March 2025: 33.31 lakhs) secured against hypothecation of vehicle is
repayable in 36 monthly installments. The loan carry an interest of 8.02% p.a. (31 March 2025: 8.02% p.a).
(l) Indian rupee vehicle loan from Mercedes-Benz Financial Services India Private Limited carrying value of
Rs.91.11 lakhs as at 31 March 2026 (31 March 2025: Rs. 111.87 lakhs) secured against hypothecation of vehicle
is repayable in 60 monthly installments. The loan carry an interest of 8.72% p.a. (31 March 2025: 8.72% p.a.).
(a) Cash credit facility from State Bank of India outstanding of Rs.1,455.17 lakhs as at 31 March 2026. There was a
debit balance of Rs. 999.48 lakhs as at 31 March 2025 which was disclosed as balances with banks under cash
and cash equivalents in note 17. The facility carries interest of 1.30% above 6M MCLR (31 March 2025: 1.70%
above 6M MCLR) and is repayable on demand. The facility is secured by :
A) Primary security :
First pari passu charge by way of hypothecation over entire current assets viz. inventory, book debts and other
receivables etc. and all movable fixed assets, wherever situated, both present & future at Mumbai & Goa plants.
B) Collateral security :
i. Equitable / Registered Mortgage on Unit No B-1, Ground Floor, Industrial Computer and Software Premises
Co. Op. Soc. Ltd., Udyog Sadan-3, Plot no-F4, F5, F6, MIDC, Andheri (E), Mumbai owned by the Company.
ii. Equitable / Registered Mortgage on factory land & buildings bearing Survey No.30, plot no. 17 & 18, Verna
Industrial Estate, Phase-I, Verna Electronic City, Salcete, Goa owned by the Company.
iii. Hypothecation of all Plant & Machinery, present and future, at plants located in (a) B-1, Industrial Computer
and Software Premises Co. Op. Soc. Ltd., Udyog Sadan-3, Plot no-F4, F5, F6, MIDC, Andheri (E) and (b)
Survey No.30, plot no. 17 & 18, Verna Industrial Estate, Phase-I, Verna Electronic City, Salcete, Goa.
iv. Equitable / Registered Mortgage on Unit No A-2, Ground Floor, Industrial Computer and Software Premises
Co. Op. Soc. Ltd., Udyog Sadan No.3, Central Road, Near Seepz Bus Depot, Andheri (E), Mumbai owned
by M/s Philins Industrial Corporation.
v. Equitable / Registered Mortgage on Unit No B-2, D-1 & B-3 Ground Floor, Industrial Computer and Software
Premises Co. Op. Soc. Ltd., Udyog Sadan No.3, Central Road, Near Seepz Bus Depot, Andheri (E),
Mumbai owned by KDU Enterprises Private Limited.
vi. Equitable / Registered Mortgage on 502/A and 502/B, Fifth Floor, Heritage, Hiranandani gardens, Powai,
Mumbai - 400076 owned by Mr. Venkatesh Uchil.
The facility is backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate
guarantee of KDU Enterprises Private Limited and Philins Industrial Corporation.
(b) Cash credit facility from IndusInd Bank Limited outstanding of Rs 635.13 lakhs as at 31 March 2026 (31 March 2025: Rs
757.92 lakhs) carrying interest of MCLR Loan One year 0.00% p.a (31 March 2025: Repo rate 3.40% p.a.) is
repayable on demand. These are secured by first pari-passu charge on current assets and movable fixed assets
of the Company, both present and future. The facility is collaterally secured against fixed deposit of Rs. 2,034.31
lakhs (31 March 2025: Rs. 2,034.31 lakhs).
The facility is backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil & corporate guarantee of KDU
Enterprises Private Limited.
(c) Cash credit facility from Kotak Mahindra Bank Limited outstanding of Rs 890.98 lakhs as at 31 March 2026 (31 March
2025: Rs 611.53 lakhs) carrying interest of 3M Repo rate 3.10% (31 March 2025: 3M Repo rate 3.10%) is repayable
on demand. These are secured by first pari passu hypothecation charge on all existing and future current
assets/movable fixed assets of the Company. The facility is collaterally secured by exclusive charge on Land and
building at plot no N-51,52,59 and 60 Phase IV Verna Industrial Estate, Salcete, Goa owned by the Company.
The facility is backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate guarantee of KDU
Enterprises Private Limited.
(d) Cash credit facility from Yes Bank Limited outstanding of Rs 851.29 lakhs as at 31 March 2026 (31 March 2025: Rs.
201.35 lakhs) carrying interest of TBILL 3M 2.75% p.a. (31 March 2025 : TBILL 3M 2.68% p.a.) is repayable on
demand. These are secured by first pari passu hypothecation charge on current assets of the Company. The
facility is collaterally secured by exclusive charge on property located at plot no N-54,55,56 and 57 Phase IV
Verna Industrial Estate, Salcete, Goa.
The facility is backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate guarantee of KDU
Enterprises Private Limited.
(e) Working capital demand loan from Yes Bank Limited carrying value of Rs. 1,000.00 lakhs as at 31 March 2026 (31 March
2025: Rs. Nil) carrying interest of 1M T-Bill 3.47% p.a. (31 March 2025: N.A.) is repayable on demand. These are
secured by first pari passu hypothecation charge on current assets of the Company. The facility is collaterally
secured by exclusive charge on property located at plot no N-54,55,56 and 57 Phase IV Verna Industrial Estate,
Salcete, Goa.
The facility is backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate guarantee of
KDU Enterprises Private Limited.
(f) The quarterly returns/ statements read with subsequent revisions, if any, filed by the Company with the banks are in
agreement with the books of accounts.
Trade receivables and contract balances:
(i) The Company classifies the right to consideration in exchange for deliverables as either a receivable or as
contract asset.
(ii) A receivable is a right to consideration that is unconditional upon passage of time.
(iii) The contract assets primarily relate to the Company's right to consideration for work completed but not billed a
the reporting date. The contract assets are transferred to receivables when the right become unconditional.
(iv) The contract liabilities primarily relate to the advance consideration received from customers. Contract liabilities
are presented in note 32.
(v) Trade receivables are presented net off loss allowance in note 16.
*Amount is included in other payables under Other financial liabilities in note 31
#The Company has evaluated the impact of interest under Section 16 of the MSMED Act, 2006 and based on
management's assessment has not provided interest in respect of delayed payments to micro and small
enterprises during the year. In view of the management, the possibility of interest payable, if any, in accordance with
the provisions of the MSMED Act is remote.
46 Employee benefits
(i) Defined contribution plans:
The Company makes contributions, determined as a specified percentage of employees salaries, in respect of
qualifying employees towards provident fund, employees state insurance scheme and labour welfare scheme,
which are defined contribution plans. The obligation of the Company is limited to the amount contributed and it
has no further contractual nor any constructive obligation. The contributions are charged to the statement of
profit and loss as they accrue. The amount recognized as an expense towards contribution to provident and other
funds for the year aggregated to Rs. 199.43 lakhs (31 March 2025: Rs 161.31 lakhs).
(ii) Defined benefit plans:
The Company operates an unfunded post-employment defined benefit plan that provides for gratuity benefit.
The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive
gratuity at 15 days salary (salary last drawn) for each completed years of service at the time of retirement / exit.
The Company determines the gratuity liability based on the actuarial valuation using Projected Unit Credit
Method by an Independent firm of Actuaries that is registered with The Institute of Actuaries of India.
The following table summarizes the position of obligation relating to gratuity plan:
48 Leases
The Company assesses each lease contract and if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration, the Company recognised right to use assets and lease
liabilities for those lease contracts except for short-term lease and lease of low-value assets.
The Company has leases contracts for factory premises, office premises and land. These lease arrangements are
for period from 3 years to 30 years. The Company applies the ‘short-term lease' and ‘lease of low-value assets'
recognition exemptions for these leases.
49 Segment information
The Company is primarily engaged into the business of providing integrated electrical and automation solution. As
per Ind AS 108 - "Operating Segments", operating segments are those components of the business whose
operating results are reviewed by the Chief Operating Decision Maker ("CODM") to make decisions for performance
assessment and resource allocation. The main segments of the Company based on how CODM make decision
internally for performance assessment and resource allocation are:
a. Marine: Providing products and services of navigational equipment's etc in new ship building.
b. Industry: Providing products and services of power distribution and solutions for industries like data centre,
industrial and large buildings.
There are no financial instruments that have been classified as Fair Value through Profit and Loss (FVTPL) and Fair
Value through Other Comprehensive Income (FVTOCI).
A Fair values for these financial instruments have not been disclosed because their carrying amount are a
reasonable approximation of their fair values.
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).
Financial instruments - risk management
The Company has exposure to the following risks arising from financial instruments: credit risk (refer note (b) below);
liquidity risk (refer note (c) below) and market risk (refer note (d) below):
(a) Risk management framework
The Company's board of directors has overall responsibility for the establishment and oversight of the
Company's risk management framework. The Company's risk management policies are established to identify
and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and
adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market
conditions and the Company's activities.
The Company's board oversees how management monitors compliance with the Company's risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks
faced by the Company. The Company, through its training and management standards and procedures, aims to
maintain a disciplined and constructive control environment in which all employees understand their roles and
obligations.
(b) Credit risk
Credit risk is the risk that a counter party fails to discharge its obligation to the Company. The maximum credit risk
comprises the carrying amounts of the financial assets. The Company's exposure to credit risk arises mainly
from cash and cash equivalents, other bank balances, trade receivables, loans and other financial assets. The
Company continuously monitors defaults of customers and other counterparties and incorporates this
information into its credit risk controls.
(i) Credit risk management
Credit risk rating
The Company assesses and manages credit risk of financial assets based on following categories arrived on
the basis of assumptions, inputs and factors specific to the class of financial assets.
A: Low credit risk
B: Moderate credit risk
C: High credit risk
(ii) Credit risk exposure
Cash and cash equivalents and other bank balances
Credit risk related to cash and cash equivalents and other bank balances is managed by accepting highly
rated banks and diversifying bank deposits and accounts in different banks. Management does not expect
any losses from non-performance by these counterparties.
Loans and other financial assets measured at amortized cost
Loans and other financial assets measured at amortized cost includes deposits, staff advances, interest
accrued on loans/deposits, unbilled revenue, loans and other receivables. Credit risk related to these is
managed by monitoring the recoverability of such amounts continuously, while at the same time internal
control system in place ensures that amounts are within defined limits. The expected credit loss on these
financial instruments is expected to be insignificant.
Trade receivables
Credit risk arise from possibility that customer may default on its obligation to make timely payments, resulting
into financial loss. The maximum exposure to the credit risk is primarily from trade receivables. The expected
credit loss allowance is based on the ageing of the days for which the receivables are due and the expected
loss rates.
(c) Liquidity risk
Liquidity risk is the risk that the Company will not be able to settle or meet its obligations on time. The Company's
primary sources of liquidity are cash generated from operations. The cash flows from operating activities are
driven primarily by operating results and changes in the working capital requirements.
The Company believe that its liquidity position is adequate to fund the operating and investing needs and to
provide with flexibility to respond to further changes in the business environment.
(d) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, which will
affect the Company's income. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimising the return.
i) Foreign currency risk
The transactions of the Company are denominated in both Indian rupees and foreign currencies and
accordingly, the Company is exposed to foreign exchange risk in relation to operating activities (when
revenue or expense is denominated in a foreign currency) arising from foreign currency transactions.
The Company is contesting the demands and the management, including its tax advisors, believe that its position will
likely be upheld in the appellate process. No tax expense has been accrued in the standalone financial statements
for the tax demand raised. The management believes that the ultimate outcome of this proceedings will not have a
material adverse effect on the Company's financial position and results of operations.
(ii) The Company has received a demand order dated 31.08.2020 from the office of The Commissioner of Customs
raising a demand of Rs 120.62 lakhs on the Company u/s 28(8) of the Customs Act, 1962 read with section 5(1) of
IGST Act, 2017 with regards to classification under incorrect CTH of copper busbar imported by the Company during
the period from 13.08.2014 to 30.10.2018. The order also imposes a penalty of Rs 12 lakhs on the Company and
interest u/s 28AA of the Customs Act, 1962. The amount disclosed above is exclusive of interest as the same is not
currently quantifiable. The Company has filed an appeal against the said order on 23.10.2020. Based on the
legal opinion obtained by the Company from an independent firm of advocates, the management believes that
the ultimate outcome of the proceedings will not have an adverse effect on the Company's financial position.
(iii) The Company in the year 2017 was awarded a contract for setting up a 50 MW capacity solar power project (the
"Project") in Tamil Nadu. The Company subcontracted the EPC portion to a sub-contractor. The obligations of the
sub-contractor for the project were not completely fulfilled by the sub-contractor leading to dispute and arbitration
between the Company and the sub-contractor. The Company received final arbitration award on 1 August 2024,
directing payment of principal along with interest to a sub-contractor. The Company subsequently filed application
with Hon'ble Bombay High Court on 24 October 2024 to set aside the arbitration award. Considering the
uncertainty and potential outcome, the Company during the previous year made a prudent provision of Rs.
1,077.51 lakhs.
The arbitration award was upheld by Hon'ble Bombay High Court on 7 October 2025. The Company during the year
provided for balance principal amount of Rs. 216.91 lakhs and interest of Rs. 1,424.04 lakhs. The Company during
the year paid principal amount of Rs. 2,185.88 lakhs and interest amount of Rs. 949.54 lakhs. The balance interest
amount of Rs. 427.05 lakhs (net of TDS) is disclosed as other payables under other current financial liabilities in note
31.
(iv) During the F.Y.2021-22, pursuant to inspection by GST Department, the Company paid Rs. 120.14 lakhs towards
GST on bank guarantee invocation. The Company during F.Y. 2022-23 filed application for refund of the said amount
which was rejected by the Department vide its order dated 27 January 2023. The Company has filed an appeal
against the rejection order with the appellate authorities on 06 March 2023. Pending final outcome, the Company as
at the end of previous financial year continued to carry the amount paid as balance with government authorities.
61 Events after the reporting period
There are no subsequent events that have occurred after the reporting period till the date of this financial
statements.
62 Additional regulatory information required by Schedule III
i) Details of benami property held:
The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
ii) Wilful defaulter:
The Company is not declared wilful defaulter by any bank or financial institution or other lender during the year.
iii) Relationship with struck off companies:
The Company does not have any transactions with companies struck off.
iv) Registration of charges or satisfaction with Registrar of Companies (ROC):
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
v) Utilisation of borrowed funds and share premium:
A. The Company has 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.
B. 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 on behalf of the Ultimate Beneficiaries.
vi) Compliance with number of layers of companies:
The Company has complied with the requirements of the number of layers prescribed under clause (87) of
section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.
vii) Valuation of Property, Plant and Equipment (including Right-of-use assets) and Intangible assets:
The Company has not revalued its property, plant and equipment (including Right-of-use assets) or intangible
assets or both during the current or previous year.
viii) Compliance with approved Scheme of Arrangement:
The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.
63 Details of crypto currency or virtual currency:
The Company has not traded or invested in Crypto currency or Virtual currency during the financial year ended 31
March 2026. Further, the Company has also not received any deposits or advances from any person for the
purpose of trading or investing in crypto currency or virtual currency.
64 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).
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