Provisions and Contingent Liabilities
Provisions are recognized when the Company has a present legal or constructive obligation because 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.
On an ongoing basis, the Company reviews pending cases, claims by third parties and other contingencies. For
contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial
statements. Loss Contingencies that are considered possible are not provided for but disclosed as Contingent
liabilities in the financial statements. Gain contingencies are not recognized until the contingency has been
resolved and amounts are received or receivable.
Employee Benefit Plans
The details of various employee benefits provided to employees are as under:
Defined Benefit Plan and Other long-term benefits
The liability of gratuity plan is provided based on actuarial valuation under Projected Unit Credit Method at the
end of each financial year. Remeasurement Gains and losses arising from experiences adjustments and changes
in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive
income.
An actuarial valuation involves making various assumptions that may differ from actual developments in the
future. These include the determination of the discount rate; future salary increases and mortality rates.
Company contributes the ascertained liability worked out by Life Insurance Corporation of India with whom the
plan assets are maintained.
Provision for due earned leaves is determined using Projected Unit Cost method, with actuarial valuation being
carried out at Balance Sheet date.
Defined Contribution Plans
Liability for superannuation fund is computed based on the premium calculated and paid to LIC of India in respect
of employees covered under Superannuation Fund Policy.
Provident Fund & ESI liabilities are recognised based on actual liability accrued and paid to respective
authorities.
Other Comprehensive Income
Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the
period, unless a standard requires or permits otherwise.
Items of income or expense that are not recognized in profit or loss but are shown in the statement of profit and
loss as 'other comprehensive income' include re-measurement of defined benefit plans, foreign currency
translation differences arising on translation of foreign operations and fair value gains or (losses) on equity
instruments.
Leases
The Company assesses at inception of contract whether it contains a lease. That is, if the contract conveys the
right to control the use of an identified asset for a period in exchange for consideration.
1. 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 ("Rou 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 re measurement 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 lower of the lease term and the estimated useful life of the assets.
If ownership of the leased asset transferred 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 to be paid to
lessor over the period of lease. In calculating the present value of lease payments, the Company uses its
incremental borrowing rate at the lease commencement date. Accordingly, 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 remeasured if there is a modification, a change in
the lease term, a change in the lease payments or a change in the assessment of an option to purchase the
underlying asset. Lease liabilities have been presented under the head "Non-Current Financial Liabilities”.
iii) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases (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 that are 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.
2. Company as a Lessor
The Company as a lessor needs to classify each of its leases either as an operating lease or a finance lease. A
lease is classified as a finance lease if I it transfers substantially all the risks and rewards incidental to ownership
of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks
and rewards incidental to ownership of an underlying asset.
i) Finance lease
At the commencement date, the Company will recognise assets held under a finance lease in its Balance Sheet
and present them as a receivable at an amount equal to the net investment in the lease. Net investment is the
discount value of lease receipts net of initial direct costs using the interest rate implicit in the lease. For
subsequent measurement of finance leased assets, the Company will recognise interest income over the lease
period, based on a pattern reflecting a constant periodic rate of return on the Company's net investment in the
lease.
ii) Operating lease
The Company will recognise lease receipts from operating leases as income on either a straight-line basis or
another systematic basis. The Company will recognise costs, including depreciation incurred in earning the lease
income as expense.
Service Concession Arrangements
The Company applies Appendix D to Ind AS 115 for public-to-private service concession arrangements where
the grantor controls the services, recipients, pricing, and retains significant residual interest in the infrastructure.
Infrastructure used in a service concession arrangement for its useful life (i.e., whole-life assets) is also within
the scope of Appendix D if the above control criteria are met.
Where the Company receives a right to charge users of the public service (and not a right to receive fixed
payments from the grantor), the arrangement is accounted for under the Intangible Asset Model. The
corresponding intangible asset is recognized in accordance with Ind AS 38 - Intangible Assets, measured at the
fair value of consideration received or receivable for construction or upgrade services rendered.
The intangible asset is amortized over the concession period on a systematic basis, usually on a straight-line
method. Revenue from construction and operational services is recognized over time as per Ind AS 115.
Borrowing costs attributable to construction are capitalized in line with Ind AS 23 - Borrowing Costs
Cost Recognition
Costs and expenses are recognised when incurred and are classified according to their nature. Expenditure
capitalised represents employee costs, stores, admin, travelling, borrowing, manufacturing supplies, and other
expenses incurred for construction including product development undertaken by the Company.
Investment Properties
Investment properties are properties (land and buildings) that are held for long-term rental yields and/or for
capital appreciation. Investment properties are measured initially at cost, including transaction costs. After initial
recognition, investment properties are stated at cost less accumulated depreciation and accumulated
impairment loss, if any. Subsequent expenditure is capitalised to the asset's carrying amount only when it is
probable that future economic benefits associated with the expenditure will flow to the Company and the cost
of the item can be measured reliably. Any repair and maintenance costs are expensed when they are incurred.
Earnings per Share
Basic earnings per share have been computed by dividing net profit or loss for the year attributable to equity
share of the company by the weighted average number of shares outstanding during the year. Partly paid-up
shares are included as fully paid equivalents according to the fraction paid up. Diluted earnings per share have
been computed using the weighted average number of shares and dilutive potential shares, except where the
result would be anti-dilutive.
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.
In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates,
applicable w.e.f. April 1, 2025. The Company has reviewed the amendment and based on its evaluation has
determined that it does not have any significant impact in its financial statements.
In August 2025, MCA notified the following amendments to:
1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 - The amendment relates to
classification of liabilities as current or noncurrent and non-current liabilities with covenants. In the context of
classifying a liability as current, it removes the requirement of existence of a right to defer settlement for at
least 12 months after the reporting date and instead requires that the said right should exist on the reporting
date and have substance. The amendment also introduces guidance on classification of liabilities with
covenants. The Company has no impact of these amendments in its classification criteria of current and non¬
current liabilities.
2. Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. April
1, 2025 - The amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier
finance arrangements and explain the nature of the arrangements, the carrying amount of liabilities and the
range of payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a factor
that may cause concentration of liquidity risk. The Company has reviewed the amendment and based on its
evaluation has determined that it does not have any significant impact in its financial statements.
3. Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The amendments
provide a temporary mandatory relief from deferred tax accounting for top-up tax and disclose that they have
applied the relief. This relief is immediate and applies retrospectively.
(i) There is no delay in the repayment of loans & interest on the date of balance sheet. The Principal and interest
against Term Loan from Tata Capital Financial Services Ltd (having variable interest rate) and Omax Fusions
Pvt Ltd (having fixed rate) is repayable month on month basis till maturity.
(ii) The term loan with an outstanding amount of K 1,150.00 Lakhs out of total sanction amount of K 3,000.00
lakhs is secured through first and exclusive charge created on the company's property in Sector 44, Gurugram
in favour of Tata Capital Financial Services Limited.
(iii) An exclusive equitable mortgage has been created in favour of Yes Bank Limited over property at Plot Nos. 10
& 10A, Sector-20B, Urban Estate, Faridabad, measuring 7676.48 sq. meters. The mortgage amount pertaining
to the non-fund based limit of K 3,300.00 lakhs. This limit has been utilised to provide Bank Guarantees in
favour of The Pradeshiya Industrial & Investment Corporation of Uttar Pradesh Limited (PICUP) as security
against disbursement of incentives due in the form of an interest free loan.
(iv) Term Loan from The Pradeshiya Industrial & Investment Corporation of Uttar Pradesh Limited (PICUP) which
was secured by way of first charge on Land and Building of Bawal & Binola unit and hypothecation on the Plant
and Machinery of Lucknow Unit against loan amounting to K 1,737.53 Lakhs has been repaid and the collateral
security of Binola land and building, Bawal land and building as well as Lucknow unit plant and machinery
stands free of any hypothecation as on date. Further loan of K 3,500.00 Lakhs is secured by way of 2 long term
Bank guarantees issued by Yes Bank.
(i) The unutilised credit limit from Yes Bank amounting to K 220.00 Lakhs is secured by way of first pari passu
charge created in favour of Yes Bank Limited over the entire stock and book debts of the Company, both
present and future, as security for working capital facilities, in alignment with other working capital lenders.
(ii) The company has used the borrowings from banks and financial institutions for the specific purpose for
which it was taken at the balance sheet date.
(iii) Bank Returns/ Stock Statements filed by the Company with its Bankers are materially in agreement with
the books of account.
k) SEGMENT REPORTING:
A. Basis for Segmentation.
An operating segment is a component that engages in business activities from which it may earn revenues and
incur expenses, including revenues and expenses that relate to transactions with any of the other components,
and for which discrete financial information is available.
The board of directors have been identified as the Chief Operating Decision Maker ('CODM'), since they are
responsible for all major decisions w.r.t. the preparation and execution of business plan, budget, planning,
expansion, alliance, joint venture, merger and acquisition, and expansion of any facility.
The Company's board reviews the results of a single segment. The company's board of directors uses Profit after
tax ('PAT') to assess performance of the single operating segments. Accordingly, there is only one reportable
segment which is "Manufacturing of sheet metal components” for carious customers, hence, no specific disclosure
have been made.
B. Information about reportable segments.
The Company deals in one business segment namely the Manufacturing of sheet metal components; therefore,
product-wise revenue disclosures do not apply.
Information about geographical areas
The company operates primarily under a single geographic location i.e. India and accordingly, there are no
separate reportable geographical segments.
C. Revenue from Major Customer.
Revenue generated from one customer amounting to K 46,111.30 Lakhs (Previous year K 36,550.14 Lakhs).
o) Capital Management:
The company manages funds from its existing business and term lenders to ensure that it will continue as a going
concern by efficient allocation of funds towards its new projects, optimization of working capital requirements and
deployment of surplus funds into fixed deposits. The management of the Company reviews the capital structure
on a regular basis. The Board considers the status of debts, cost of capital and movement in working capital.
p) Financial risk management:
Risk Management Framework
The Company's activities expose it to the liquidity risk and credit risk. The Company's board of directors has
overall responsibility for the establishment and oversight of the Company's risk management framework. This
note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the
related impact in the financial statements. The Company manages the financial risks relating to the operations of
the Company. These risks include market risk (including currency risk, interest rate risk and other price risk),
credit risk and liquidity risk. The Company seeks to minimise the effects of these risks by using credit limits to
hedge risk exposures. The use of financial instruments is governed by the Company's policies on foreign exchange
risk and the investment. The Company does not enter into agreements for trade financial instruments, including
derivative financial instruments, for speculative purposes.
1. Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may
result from a change in the price of a financial instrument. The Company's activities expose it primarily to the
financial risks of changes in foreign currency exchange rates and interest rates risk/ liquidity which impact returns
on investments. Keeping in mind the overall small exposure, the company does not enters into derivative financial
instruments to manage its exposure to foreign currency risk including export receivables and import payables.
Future specific market movements cannot be normally predicted with reasonable accuracy.
C. Equity Price risk.
The Company's exposure to equity price risk arises solely from its investments in quoted mutual funds, which are
classified in the Balance Sheet at fair value through profit or loss (FVTPL). The value of these investments may
fluctuate due to changes in the net asset values (NAV) of the underlying securities held by the mutual funds.
Given the diversified nature of mutual fund portfolios, relatively low exposure, and the Company's investment
objectives, the impact of such fluctuations is not considered significant. Accordingly, no specific sensitivity
analysis or management estimation is considered necessary at this stage.
D. Commodity Price Risk.
The Company has entered into contractual arrangements with both customers and suppliers that include price
variance clauses, thereby aligning input and output prices. As a result, the Company is not exposed to significant
commodity price risk. Any fluctuations in commodity prices are contractually adjusted and passed through as per
the terms of the agreements. Accordingly, no material commodity price risk exists for the Company
2. Credit Risk.
Credit risk is the risk that counterparty will not able to 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 and other receivables) and from its financing activities, including deposits with banks and other
financial instruments.
Trade Receivables
The Company follows a 'simplified approach' (i.e. based on lifetime ECL) for recognition of impairment loss
allowance on its trade receivables. For the purpose of measuring lifetime ECL allowance for trade receivables, the
Company estimates irrecoverable amounts based on the ageing of the receivable balances, clubbed with,
historical experience with the customer and/or the industry in which the customer operates and assessment of
litigation, if applicable. Receivables are written off when they are no more deemed collectable.
3. Liquidity risk.
The Company's principal sources of liquidity are 'Cash and Cash Equivalents' and cash flows that are generated
from operations. The Liquidity risk represents the inability of the Company to meet its financial obligations within
stipulated time. To mitigate this risk, the Company maintains sufficient liquidity by way of readily convertible
instruments and working capital limits from banks.
Maturity profile of financial liabilities (Borrowing Lease Liability Government Grants Trade
Payable Other Payable):-
The table below provides details regarding the contractual maturities of financial liabilities at the reporting
rl Ý -
The company is into business of manufacturing and selling sheet metal components having its manufacturing
units in the state of Uttar Pradesh and Haryana. To maximise its revenue, the company is also developing various
products for Railways and commercial vehicle business and exploring the opportunities to increase its customer
base.
During the previous year, the company had sold its Speedomax land resulting in a profit on sale of Property, Plant
and Equipment amounting to K 1,936.20 Lakhs, which has shown as an exceptional item in profit and loss account.
Further, plant and equipment of closed units were valued at cost less impairment and these were classified as
'Assets Held for Sale'.
r) No amount of borrowing costs was capitalized during the year ended March 31, 2026 (Previous years
Nil).
s) As per Ind AS, the financial liability of interest free loan from PICUP is measured at fair value and the difference
between disbursed interest free loan amount and fair value is recognised as Government grant. The Company
has availed the mandatory exception under Ind AS 101 and accordingly, change done in accounting treatment on
the amount carried forward on date of transition. After transition date, the difference between interest free loan
and fair value has been recognised as Government grant as at Balance sheet date. Also Government grant has
been recognised in the Statement of Profit and Loss as income on an internal rate of return basis spread over the
period of grant and interest on fair value of the Government grant on its inception has been recognised as finance
cost.
t) As per Ind AS, all items of income and expense recognised in a period should be included in the Statement of
Profit and Loss for the period, unless a standard requires or permits otherwise. Items of income and expense that
are recognised in profit or loss and as 'other comprehensive income' include re-measurements of defined benefit
plans.
(i) Fair value hierarchy.
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped
into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant
inputs to the measurement, as follows
Level 1: Quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market as determined using
valuation techniques which maximising the use of observable market data rely as little as possible on entity
specific estimates.
Level 3: If one or more of the significant inputs not based on observable market data, the instruments is included
in Level 3.
d) Registration of charges or satisfaction with Registrar of Companies: All applicable cases where registration
of charges or satisfaction is required with Registrar of Companies have been done. No Satisfaction is pending
for the year ended 31 March 2026.
e) Relationship with Struck off Companies:
No transaction has been made with the company struck off under section 248 of The Companies Act, 2013
or section 560 of Companies Act, 1956 during the year ended March 31, 2026.
f) Compliance with number of layers of companies:
No layers of companies has been established beyond the limit prescribed as per close 87 of section 2 of
the companies act, 2013 read with the companies (Restriction on number of layers) Rules, 2017.
g) Loan or advances granted to the promoters, directors and KMPs and the related parties:
No loan or advances in the nature of loans are granted to the promoters, directors, key managerial persons
and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other
person that are:
(a) Repayable on demand or
(b) Without specifying any terms or period of repayment
h) 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 on behalf of the Ultimate Beneficiaries.
i) During the reporting period, the entity reviewed the use of certain properties previously classified under
Property, Plant and Equipment (PPE) and determined that they no longer meet the definition of owner-
occupied property under the applicable accounting standards. As a result, these assets have been
reclassified to Investment Property in accordance with [Ind AS 40/applicable local standard], as they are now
held to earn rental income and/or for capital appreciation. The reclassification was accounted for at the
carrying amount of the assets at the date of change in use, and no gain or loss has been recognized as a
result of this reclassification.
ia) The financial statements of the Company for the year ended 31st March, 2026 were approved and
authorized for issuance by the Board of Directors in its Meeting held on 02nd May, 2026.
The Board of directors has declared an interim dividend of Rs.2.5/- per fully paid-up equity shares of Rs. 10/-
each of the Company for the financial year ended on 31st March, 2026 involving a payment of Rs. 534.71
lakhs in its meeting held on 02nd May, 2026.
j) Assets classified as Held for Sale
Assets are classified as held for sale if their carrying amount will be recovered primarily through sale rather than
through continuing use, if the assets are available for immediate sale in their present condition and if the sale is
highly probable. Immediately before classification as held for sale, the assets are measured in accordance with
the company's accounting policies. Once classified as held for sale, the assets are measured at the lower of their
carrying amount and fair value less costs to sell.
k) Details with respect to the Benami properties:
No proceedings have been initiated or pending against the entity under the Benami Transactions
(Prohibitions) Act, 1988 for the year ended 31 March 2026.
l) The Company has not been declared as a wilful defaulter by any lender who has powers to declare a
company as a wilful defaulter at any time during the financial year or after the end of reporting period but
before the date when financial statements are approved.
m) Event after the reporting period:
No significant adjusting event occurred between the balance sheet date and date of the approval of these
financial statements by the Board of Directors of the Company requiring adjustment of disclosure.
n) Previous year figures have been regrouped/rearranged, wherever considered necessary to conform to
current year classification. The figures in brackets are those in respect of the previous accounting year.
o) The financial statements for the year ended March 31, 2026 were approved by Board of Directors and
authorized on May 02, 2026.
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