(d) Provisions and contingencies
The assessments undertaken in recognizing provisions and
contingencies have been made in accordance with Ind AS 37,
‘Provisions, Contingent Liabilities and Contingent Assets’. The
evaluation of the likelihood of the contingent events requires best
judgment by the management regarding the probability of exposure
to potential loss. If circumstances change following unforeseeable
developments, this likelihood could alter.
(e) Impairment of non-financial assets
The company has used certain judgments and estimation to estimate
future projection and discount rate to compute value in used of
assets/cash generating units and to assess impairment.
(f) Revenue recognition
The company recognised the revenue from contract with customers
based on 5 steps model as per Ind AS- 115 which involve judgments
relating to identification of contracts with customers, identification
of distinct performance obligation, determination of transaction
price with respect to identified performance obligation,
appropriateness of the basis used to recognise revenue and when
the control of goods and services are being transferred.
iv) a) Provision for taxation including interest to the extent of estimated at ? 1915.17 lacs for the year ended 31st March, 2025 (31st March, 2024¬
? 2209.77 Lacs; upto the year ? 11844.19lacs) has not been made in accounts in view of the proposed amalgamation under the provisions of
Companies Act, 2013.
b) Company has claimed the losses pertaining to Modern Denim Limited in its income tax return from AY 2017-18, with which the company has
proposed amalgamation. Income Tax Department has completed assessment for Assessment Year 2017-18 and 2018-19 and has disallowed
such losses claimed pursuant to proposed amalgamation pending approval from concerned authorities. However, the Company has filed appeal
against the said order before CIT (Appeals).CIT(A) in his order has held that effect of the scheme of amalgamation will be allowed by the AO
as and when the scheme is approved by the competent authority.
- Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the
last valuation date can affect the liability.
- Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan’s liability.
- Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can affect the liabilities.
- Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can
affect liability.
iv) Long term employee benefit
Leave encashment
The company has a policy to pay leave encashment. Every employee is entitled to claim leave encashment after his/her retirement/termination which is
calculated based upon no. of leaves earned. The company has a total provision for leave encashment as on 31st March, 2025- ? 412.45 Lacs and as on
31st March, 2024- ? 400.09 Lacs. Total expenses provided during the year 2024-25 is ? 122.98 Lacs and for the year 2023-24 ? 103.05 Lacs. Current
Service Cost of? 56.07 Lacs for the year 2024-25 and ? 53.49 Lacs for the year 2023-24 based on actuarial valuation.
Note No. 37 : OPERATIVE SEGMENT INFORMATION AS PER INDAS-108
A. Primary segment reporting (by business segment)
The two identified segments are:
(i) Insulators
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Note No. 40 : CAPITAL COMMITMENTS
Estimated amount of contracts remaining to be executed on capital account and not provided for ? 27.69 Lacs (net of advances ? 19.44 Lacs) 31st
March, 2024- ? 923.23 Lacs. (net of advances ? 645.29 Lacs)
Note No. 41 : CAPITAL MANAGEMENT
For the purpose of Company’s Capital Management, capital includes issued equity share capital and other equity reserves attributable to equity holders.
The primary objective of Company’s Capital Management is to maximize shareholder’s wealth. The company manages its capital structure and makes
adjustments in the light of changes in economic environment and the requirements of financial covenants.
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholder. The capital
structure of the Company is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain
investors, creditors and market confidence. The management and the Board of Directors monitors the return on capital. The Company may take
appropriate steps in order to maintain, or if necessary adjust, its capital structure.
Note No. 42 : FINANCIAL RISK MANAGEMENT
The Company’s Financial Risk Management is an integral part of how to plan and execute its business strategies. The Company’s financial risk
management is set by the Managing Board. The Company’s principal financial liabilities comprise loans and borrowings, trade payables and other
payables. The main purpose of these financial liabilities is to finance the company’s operations. The company’s principal financial assets include trade
& other receivables, investments, cash and short term deposits.
i) Credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically
assesses the financial reliability of customers and other counter parties, taking into account financial conditions, current economic trends and analysis
of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed based on such information.
Financial assets are written off when there are no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the
Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the
receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.
The Company measures the expected credit loss of trade receivables based on historical trend and the business environment in which the entity operates.
Loss rates are based on actual credit loss experience and past trends. The Company provides loss allowance on trade receivables using life time expected
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iii) Market Risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The
value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market
changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments
and deposits, foreign currency receivables, payables and loans and borrowings.
a) Foreign currency risk
The company operates internationally and portion of the business is transacted in several currencies and consequently the company is exposed to foreign
exchange risk through its sales in overseas and purchase from overseas suppliers in various foreign currencies.
The company evaluate exchange rate exposure arising from foreign currency transaction and the company follow established risk management policies,
including the use of derivative like foreign exchange forward contracts to hedge exposure to foreign risk.
Note No 43. DISCLOSURE AS PER IND AS-27, SEPARATE FINANCIAL STATEMENT
The company had entered into Joint Venture Agreement with Shriji Designs by incorporating new JV firm M/s Shriji Designs -MIL (JV) to participate
in railways EPC tenders. The JV had been awarded tender for design, supply, erection, testing and commissioning of 25 KV OHE between sanwad-
nimarkhedi NTPC siding of western railway. As per the joint venture working agreement entered with Shriji Designs, execution is entirely in the scope
of MIL and company has to pay 2% fees to JV partner. Accordingly 100% profit/loss of JV is part of the company.
The company had entered into Joint Venture Agreement with Sikka Engineering Company by incorporating new JV firm M/s SEC-MIL (JV) to
participate in railways EPC tenders. As per the joint venture working agreement entered with Sikka Engineering execution of contract , if any awarded
to JV firm will be entirely in the scope of MIL and company will pay 2.25% commission of contract value to JV partner.
The company had also entered into Joint Venture Agreement with Akhandalamani Electricals & Construction by incorporating JV firm M/s Modern
Insulators JV Akhandalamani Electrical & Construction to participate in discom tenders. As per the joint venture working agreement entered with
Akhandalamani Electricals & Construction execution of contract , if any awarded to JV firm will be entirely in the scope of MIL and company will pay
1.50% commission of contract value to JV partner.
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
(vi) The company has not received any fund from any other 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 to or invest in other persons or entities identified in any manner whatsoever by or on behalf of funding party (Ultimate
beneficiaries) or
b. provide any guarantee ,security or the like on behalf of the ultimate beneficiaries.
(vii) The company has no 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.
(viii) The Company has not been declared as willful defaulter by any bank or financial institution or other lenders in accordance with the guidelines issued by
Reserve Bank of India.
Note No. 52: The Company has a process whereby periodically all long term contracts (including derivative contract) are assessed for material foreseeable
losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/accounting standards for material foreseeable
losses on such long term contracts (including derivative contracts) has been made in the books of accounts.
Note No. 53: The Company has used such accounting software for maintaining its books of accounts for the year ended 31 March 2025, which has a feature of
recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software and has not been
tampered with at any time during the year and the audit trail have been preserved by the company as the statutory requirements, except one unit (separate
segment) of the company where accounting software used for maintaining books of accounts for the year ended 31st March 2025 does not have a feature of
recording audit trail (edit log) facility.
Note No 54: The Financials Statements were approved for issue by the directors on 28th May, 2025.
Note No 55: Figures for previous years have been regrouped/rearranged/restated wherever considered necessary to make them comparable with the figures for
the current year.
As per our report of even date attached For and on behalf of the Board
F R r V & A • t Sachin Ranka -Chairman & Managing Director (DIN : 00335534)
For R R ™ & Afsociates Shreyans Ranka - Whole Time Director (DIN : 06470710)
Chartered Acc°untants p Sridharan -Whole Time Director (DIN : 03100055)
Firm Registratlon No- 012650C Animesh Banerjee -Whole Time Director (DIN : 07905214)
Rajesh Verma S.K. Sharma -Independent Director (DIN : 01378040)
Partner Rahul Singhvi - Independent Director (DIN : 08816920)
Membership No 404029 G.V. Kalpathy -Independent Director (DIN : 10512773)
Meena Alok Sacheti - Independent Director (DIN : 02266703)
place : Abu Road Alok Jain -Chief Financial Officer
Date : 28th May, 2025 Harshita Hetawal - Company Secretary
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