x) Provisions
All the provision are recognized as per Ind AS 37. Provisions are recognized when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation,
and a reliable estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of
the reporting period, taking into account the risks and uncertainties surrounding the obligation.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the
receivable is recognized as an asset, if it is virtually certain that reimbursement will be received and the amount of the receivable can
be measured reliably.
Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower
than the unavoidable costs of meeting the future obligations under the contract. Provisions for onerous contracts are measured at
the present value of lower of the expected net cost of fulfilling the contract and the expected cost of terminating the contract.
xi) Research & Development (R&D)
Revenue expenditure on R & D is charged to revenue in the year in which it is incurred. Capital expenditure, if any, on R & D is added
to fixed assets.
xii) Revenue recognition:
Accounting Policies, change in Accounting estimates and errors (As per Ind-As 8):
1. Review of accounting policies
a. Revenue recognition :
Ind As 115 recognises revenue of transfer of the control of goods or services, either over a period of time or a point of
time, at an amount that the entity expects to be entitles in exchange for those goods or services. In order to align with
Ind As 115, the Accounting policy on revenue recognition was reviewed and revised.
The said revision has nil impact on the financials of the company as the company was recognising and accounting
revenue in line with the Ind As 115.
b. Lease :
a. Lease liability is initially recognised and measured at an amount equal to the present value of minimum lease
payments during the lease term that are not yet paid.
b. Right of use asset is recognised and measured at cost, consisting of initial measurement of lease liability plus any
lease payments made to the lessor at or before the commencement date less any lease incentives received, initial
estimate of the restoration costs and any initial direct costs incurred by the lseess.
c. the lease liability is measured in subsequent periods using the effective interest rate method. The right-of-use
asset is depreciated over the lease term.
d. Low value leases upto Rs.6 lakhs p.a. per lease and short term leases of 12 months or less are fully charged to
expense.
xiii) Finance income and expense
Finance income consists of interest income. Interest income is recognized as it accrues in the statement of profit and loss, using the
effective interest method.
Finance expenses consist of interest expense on loans and borrowings. Borrowing costs are recognized in the statement of profit and
loss using the effective interest method.
Foreign currency gains and losses are reported on a net basis.
xiv) Income tax
Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the
extent it relates to items directly recognized in equity or in other comprehensive income.
a) Current income tax
Current income tax for the current and prior periods are measured at the amount expected to be recovered from or paid to
the taxation authorities based on the taxable income for the period. The tax rates and tax laws used to compute the current tax
amount are those that are enacted or substantively enacted by the reporting date and applicable for the period. 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 liability simultaneously.
b) Deferred income tax
Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and liabilities are recognized
for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying
amount in 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 profits or
loss at the time of the transaction. Deferred income tax asset are recognized to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and
unused tax losses can be utilized. Deferred income tax liabilities are recognized for all taxable temporary differences. The
carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset
is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date.
xv) Earnings per share
Basic earnings per share is computed using the weighted average number of equity shares outstanding during the year.
Diluted EPS is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving
basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential
equity shares
xvi) Borrowing costs
Borrowings costs directly attributable to acquisition or construction 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 it occur. Borrowing costs consists of interest and other costs that an entity incurs in connection with the borrowing of
funds.
xvii) Prepaid Expenses
Expenses are accounted under prepaid expenses by only when the amount relating to the unexpired period.
xviii) Restatement of earliest prior period financials on material error/ommissions
The value of error and ommissions is construed to be material for restating the opening balances of assets and liabilities and equity
for the earliest prior period presented if the amount in each case of earlier period income / expenses exceeds 1.00% of the previous
year turnover of the company.
xix) 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 . On March 23, 2022, MCA amended the companies (Indian Accounting
Standards) Amendment Rules, 2022, as below.
Ind AS 16-Property Plant and Equipment - The amendment clarifies that excess of net sale proceeds of items produced over
the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered
as part of cost of an item of property, plant and equipment. The effective date for adoption of this amendment is annual periods
beginning or or after April 1, 2022. The company has evaluated the amendment and there is no impact on its consolidated financial
statements.
Ind AS 37- Provisions, Contingent Liabilities and Contingent Assets - The amendment specifies that the 'cost of fulfilling' a
contract comprises the 'costs that relate directly to the contract'. Costs that relate directly to a contract can either be incremental costs
of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling
contracts (an example would be allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling
the contract). The effective date for adoption of this amendment is annual periods beginning on or after April 1,2022, although early
adoption is permitted. The company has evaluated the amendment and the impact is not expected to be material.
NOTE- 2.41
Provisions, Contingent Liabilities and Contingent Assets (Ind AS-37) : Necessary details in regard to provisions have been disclosed in notes
2.31
NOTE- 2.42
Disclosure as required under Regulation 34(3) and 53(f) of SEBI (LODR)
2.42.1 Loans and advances in the nature of loans to Subsidiary companies where there is no repayment schedule or no interest : NIL
2.42.2 There are no Investments by the loanees as mentioned in 2.41.1 in the shares of MIC Electronics Ltd.
2.42.3 The company does not have any associate companies as on 31st March, 2026
2.42.4 There are no loans and advances in the nature of loans to firms/companies in which directors are interested.
1 Assets that are not financial assets (such as receivables from statutory authorities, prepaid expenses, advances paid and certain
other receivables) as of 31 March 2026, and 31st March 2025, respectively, are not included.
2. Other liabilities that are not financial liabilities (such as statutory dues payable, advances from customers and certain other accruals)
as of 31 March 2026, and 31st March 2025, respectively, are not included.
The carrying amounts of above financial assets and liabilities are considered to be same as their fair values, due to their short-term nature.
2.43.2 Financial Risk Management
a) Risk Management Framework
The Company's management has overall responsibility for the establishment and oversight of the Company's risk management framework.
The management has established the Risk Management Committee, which is responsible for developing and monitoring the Company's
risk management policies. The committee reports regularly to the management on its activities.
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, 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.
The management monitors the 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.
A. 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).
Trade receivables
The Company sales are generally based on advance payments and credit sales. The trade receivables in the books are mainly on
account of credit sales to different parties, government undertakings like Railways, EESL etc.
The management has made analysis of the Trade receivables and made necessary provisions for bad and doubtful debts in the
books of accounts as on 31st March 2025 and the same has been reflected at Note No.2.08. The provision for loss allowance based
on historic losses has been considered and necessary provision has been made in the books.
B. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as
possible, that it will have sufficient liquidity to meet its liabilities when they are due.
Maturities of financial liabilities
The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments.
C. Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company's
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimising the return.
Foreign currency risk
Since majority of the Company's operations are being carried out in India and since all the material balances are denominated in
its functional currency, the company does not carry any material exposure to currency fluctuation risk.
The Company's exposure to foreign currencies in minimal and hence no sensitivity analysis is presented.
2.44 Other Statutory Information
i) 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) The Company does not have any transactions with companies struck off.
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 has not traded or invested in Crypto currency or Virtual Currency during the financial year.
v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
vi) 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
vii) 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
viii) The Company doesn't 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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