n) Provisions, contingent liabilities and
contingent assets
Provisions are recognised when present
obligations as a result of a past event will
probably lead to an outflow of economic
resources and amounts can be estimated
reliably. Timing or amount of the outflow
may still be uncertain. A present obligation
arises when there is a presence of a legal or
constructive commitment that has resulted
from past events, for example, legal disputes
or onerous contracts. Provisions are not
recognised for future operating losses.
Provisions are measured at the estimated
expenditure required to settle the present
obligation, based on the most reliable evidence
available at the reporting date, including the
risks and uncertainties associated with the
present obligation. Provisions are discounted
to their present values, where the time value
of money is material.
Any reimbursement that the Company can
be virtually certain to collect from a third party
with respect to the obligation is recognised as
a separate asset. However, this asset may not
exceed the amount of the related provision.
All provisions are reviewed at each reporting
date and adjusted to reflect the current best
estimate.
In those cases where the outflow of economic
resources as a result of present obligations is
considered improbable or remote, no liability
is recognised.
Contingent liability is disclosed for:
• Possible obligations which will be
confirmed only by future events not wholly
within the control of the Company or
• Present obligations arising from past
events where it is not probable that an
outflow of resources will be required to
settle the obligation or a reliable estimate
of the amount of the obligation cannot be
made.
Contingent assets are not recognised.
However, when inflow of economic benefits is
probable, related asset is disclosed.
o) Earnings per share
Basic earnings per equity share is computed
by dividing net profit or loss for the year
attributable to the equity shareholders of the
Company by the weighted average number
of equity shares outstanding during the year.
The weighted average number of equity
shares outstanding during the year and for all
periods presented is adjusted for events, such
as bonus shares, other than the conversion of
potential equity shares, that have changed
the number of equity shares outstanding,
without a corresponding change in resources.
Diluted earnings per share is computed
by dividing net profit or loss for the year
attributable to the equity shareholders of the
Company and weighted average number
of equity shares considered for deriving
basic earnings per equity share and also the
weighted average number of equity shares
that could have been issued upon conversion
of all dilutive potential equity shares. The
dilutive potential equity shares are adjusted
for the proceeds receivable had the equity
shares been actually issued at fair value (i.e.
the average market value of the outstanding
equity shares).
p) Fair value measurement
In determining the fair value of its financial
instruments, the Company uses a variety of
methods and assumptions that are based
on market conditions and risks existing at
each reporting date. The methods used to
determine fair value include discounted cash
flow analysis, available quoted market prices
and dealer quotes. All methods of assessing
fair value result in general approximation of
value, and such value may never actually
be realized. For financial assets and liabilities
maturing within one year from the Balance
Sheet date and which are not carried at fair
value, the carrying amounts approximate
fair value due to the short maturity of these
instruments.
Fair value is the price that would be received
to sell an asset or paid to transfer a liability
in an orderly transaction between market
participants at the measurement date,
regardless of whether that price is directly
observable or estimated using another
valuation technique. In estimating the fair
value of an asset or a liability, the Company
takes into account the characteristics of the
asset or liability, if market participants would
take those characteristics into account
when pricing the asset or liability at the
measurement date.
In addition, for financial reporting purposes,
fair value measurements are categorized into
Level 1, 2 or 3 based on the degree to which
the inputs to the fair value measurements are
observable and the significance of the inputs
to the fair value measurement in its entirety,
which are described as follows:
Level 1 inputs are quoted prices /net asset
value (unadjusted) in active markets for
identical assets or liabilities that the company
can access at the measurement date;
Level 2 inputs are inputs, other than quoted
prices included within Level 1, that are
observable for the asset or liability, either
directly or indirectly; and
Level 3 inputs are unobservable inputs for the
asset or liability.
q) Segment reporting
Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision maker.
Chief operating decision maker review the
performance of the Company according to
the nature of products manufactured, traded
and services provided, with each segment
representing a strategic business unit that
offers different products and serves different
markets. The analysis of geographical
segments is based on the locations of
customers.
r) Financial instruments
A financial instrument is defined as any
contract that gives rise to a financial asset
of one entity and a financial liability or equity
instruments of another entity. Financial
instruments also include derivative contracts
such as foreign exchange forward contracts,
embedded derivatives in the host contract,
etc.
Initial recognition and measurement -
Financial assets and financial liabilities are
recognized when the Company becomes
a party to the contractual provisions of the
financial instrument. Financial instrument
(except trade receivables) are measured
initially at fair value adjusted for transaction
costs, except for those carried at fair value
through profit or loss which are measured
initially at fair value. Trade receivables are
measured at their transaction price unless it
contains a significant financing component
in accordance with Ind AS 115 for pricing
adjustments embedded in the contract.
Subsequent measurement [Non-derivative
financial assets]-
i. Financial assets carried at amortised
cost : A financial asset is measured at
the amortised cost, if both the following
conditions are met:
• The asset is held within a business
model whose objective is to hold
assets for collecting contractual cash
flows, and
• Contractual terms of the asset give
rise on specified dates to cash flows
that are solely payments of principal
and interest (SPPI) on the principal
amount outstanding.
After initial measurement, such financial
assets are subsequently measured at
amortised cost using the effective interest
rate (EIR) method.
ii. Financial assets at fair value through
Profit & Loss (FVTPL) : Financial assets,
which does not meet the criteria for
categorization as at amortized cost
or as FVOCI, are classified as at FVTPL.
Financial assets included within the FVTPL
category are measured at fair value with
all changes recognized in the Statement
of Profit & Loss.
Subsequent measurement [Non¬
derivative financial liabilities]-
Subsequent to initial recognition, all
non-derivative financial liabilities are
measured at amortised cost using the
effective interest method.
Trade Receivable
Trade receivables are initially recognised
when they are originated. All other financial
assets and financial liabilities are initially
recognised when the Company becomes
a party to the contractual provisions of
the instrument. A financial asset, except
trade receivable which are recognised
at transaction price as per Ind AS 115, or
financial liability is initially measured at
fair value plus, for an item not at fair value
through profit and loss (FVTPL), transaction
costs that are directly attributable to its
acquisition or issue.
Investment in Subsidiary
When an entity prepares separate
standalone financial statements, it shall
account for investments in subsidiaries,
joint ventures and associates either:
(a) at cost, or
(b) in accordance with Ind AS 109.
Company accounts for its investment in
subsidiary at cost.
Financial guarantee contracts
Financial guarantee contracts are
recognised as a financial liability at the
time the guarantee is issued. The liability
is initially measured at fair value and
subsequently at the higher of (i) the
amount determined in accordance with
the expected credit loss model as per
Ind-AS 109 and (ii) the amount initially
recognised less, where appropriate,
cumulative amount of income recognised
in accordance with the principles of Ind AS
115. The fair value of financial guarantees is
determined based on the present value of
the difference in cash flows between the
contractual payments required under the
debt instrument and the payments that
would be required without the guarantee,
or the estimated amount that would be
payable to a third party for assuming the
obligations.
s) Impairment of financial assets
In accordance with Ind AS 109, the Company
applies expected credit loss (ECL) model for
measurement and recognition of impairment
loss for financial assets. ECL is the weighted-
average of difference between all contractual
cash flows that are due to the Company in
accordance with the contract and all the
cash flows that the Company expects to
receive, discounted at the original effective
interest rate, with the respective risks of default
occurring as the weights. When estimating
the cash flows, the Company is required to
consider:
• All contractual terms of the financial assets
(including prepayment and extension)
over the expected life of the assets.
• Cash flows from the sale of collateral held
or other credit enhancements that are
integral to the contractual terms.
Trade receivables: In respect of trade
receivables, the Company applies the
simplified approach of Ind AS 109, which
requires measurement of loss allowance at
an amount equal to lifetime expected credit
losses. Lifetime expected credit losses are
the expected credit losses that result from all
possible default events over the expected life
of a financial instrument.
Other financial assets: In respect of its other
financial assets, the Company assesses if
the credit risk on those financial assets has
increased significantly since initial recognition.
If the credit risk has not increased significantly
since initial recognition, the Company
measures the loss allowance at an amount
equal to 12-month expected credit losses, else
at an amount equal to the lifetime expected
credit losses.
When making this assessment, the Company
uses the change in the risk of a default
occurring over the expected life of the
financial asset. To make that assessment,
the Company compares the risk of a default
occurring on the financial asset as at the
balance sheet date with the risk of a default
occurring on the financial asset as at the date
of initial recognition and considers reasonable
and supportable information, that is available
without undue cost or effort, that is indicative
of significant increases in credit risk since
initial recognition. The Company assumes
that the credit risk on a financial asset has not
increased significantly since initial recognition
if the financial asset is determined to have low
credit risk at the balance sheet date.
De-recognition of financial assets: A financial
asset is primarily de-recognised when the
contractual rights to receive cash flows from
the asset have expired or the Company has
transferred its rights to receive cash flows
from the asset.
Non-derivative financial liabilities
Subsequent measurement: Subsequent to
initial recognition, all non-derivative financial
liabilities are measured at amortised cost
using the effective interest method.
De-recognition of financial liabilities: A
financial liability is de-recognized when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the de-recognition of the original
liability and the recognition of a new liability.
The difference in the respective carrying
amounts is recognised in the statement of
profit or loss.
Offsetting of financial instruments: Financial
assets and financial liabilities are offset, and
the net amount is reported in the balance
sheet if there is a currently enforceable legal
right to offset the recognised amounts and
there is an intention to settle on a net basis,
to realise the assets and settle the liabilities
simultaneously.
t) Event after the Reporting Period
Events after the reporting period that provide
additional information about the Company's
position at the end of the reporting period
or those that indicate the going concern
assumption is not appropriate are adjusting
events and are reflected in the standalone
financial statements. Events after the end of the
reporting period that are not adjusting events
are disclosed in the notes the standalone
financial statements when material.
u) Share based payments
The Company recognises compensation
expense relating to share based payments
in accordance with Ind AS 102 Share-based
Payment. Stock options granted by the
Company to its employees are accounted
as equity settled options. Accordingly, the
estimated fair value of options granted that is
determined on the date of grant, is charged
to the standalone financial statement of Profit
and Loss on a straight-line basis over the
vesting period of options which is the requisite
service period, with a corresponding increase
in equity.
v) Standards issued but not yet effective
a. New and amended standards adopted
by the Company
The 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
and August 2025, MCA has notified
amendments to various Ind AS which are,
applicable w.e.f. April 1, 2025, are given
below. 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.
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
non-current 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.
These do not have a material impact on
the financial statements.
b. New and amended standards issued but
not effective
Ministry of Corporate Affairs ("MCA")
notifies new standard or amendments to
the existing standards under Companies
(Indian Accounting Standards) Rules as
issued from time to time. During the year
ended March 31, 2026, A new Standard
on Accounting, Ind AS 118 (equivalent to
IFRS 18) - Presentation and Disclosure in
Financial Statements has been introduced
which will be applicable from April 1, 2027
and will replace Ind AS 1 once notified by
the Ministry of Corporate Affairs (MCA).
Ind AS 118 sets out general and specific
requirements for the presentation of
financial statements and for disclosures
in the notes. Additional clarifications
issued in August 2025 relating to liability
classification have been considered by the
Company. These do not have a material
impact on the financial statements.
i. (a) the Board of Directors of the Company in the Board meeting dated August, 29, 2024 and Shareholders
of the Company in the Extra Ordinary General Meeting dated August 29, 2024 have approved the sub¬
division of each of the equity Share of the Company having a face value of E 10/- each in the equity
Share Capital of the Company be sub-divided into 10 Equity Shares having a face value of E 1/- each
("Sub-division").
(b) the Board of Directors at its meeting held on August, 29, 2024, pursuant to Section 63 and other applicable
provisions, if any, of the Companies Act, 2013 and rules made thereunder, proposed that a sum of E 40.96
millions be capitalized as Bonus equity shares out of free reserves and surplus, the equity Shareholders
4,09,63,300 Equity shares of E 1/- each credited as fully paid to the equity Shareholders in the proportion
of 7 (in words seven) equity share for every 10 (in word ten) equity shares held by them. It has been
approved in the meeting of shareholders held on August, 29, 2024. The Board of Directors of the Company
by circular resolution dated August 31, 2024 allotted the Bonus equity Shares to the shareholders of the
Company.
(a) Rupee loan of E Nil (March 31, 2025 : E 9.50 millions) from a Bank is secured by pari passu charge by way of
hypothecation of the respective plant, machinery , equipment, tools, spares accessories and all the other
assets which have been acquired under the scheme and located at the works at Oswal Estate, NH-1, Kutail
Road, Karnal-132037(Haryana). Further, loan was secured by pledge of fixed deposit of E 7.5 millions with
the Bank. Further, loan was secured by personal guarantees of three directors and corporate guarantee
by Shorya Trading Company Private Limited and a promoter group company. Loan carries interest @ Repo
Rate 1.85% (Reset Monthly). The aforesaid loan is repayable in 120 equal monthly instalments from the date
of disbursement i.e. September 28, 2021. The same has been fully paid during the year.
22.1 (a) Loans of E 1,439.39 millions (March 31, 2025 : E 3,986.94 millions) from banks are secured against first
charge over entire current assets, both present and future and pari passu charge over the entire
property, plant and equipment, both present and future located at Oswal Estate, NH-1, Kutail Road,
Karnal-132037 (Haryana) and factory on land measuring 81K-3M-4S in village Kutail - (i)Land measuring
60K-17M being '/> share of 56K-18M comprised in Khewat No. 61, Khatoni No. 64, Rect. No. 119, Killa No.
7(8-0), 8(8-0), 9/1(7-16), 12/2(7-16), 13(8-0), 14/1(6-13) 18/2(7-7), 19/2/1(7-5) Kittas 8. (ii) Land measuring
20K-7M comprised in Khewat No. 346, Khatoni No. 405, Rect. No. 119, Killa No. 6/2(4-0), 14/2(1-7), 15/1(4-0),
16/2/2(3-13), 17/2(7-7) Kittas 5 Situated at Village Kutail, Tehsil Gharaunda Distt Karnal as per jamabarndi
for 2021-2022.
22.1 (b) 1st Pari-Passu charge by way of equitable mortgage of Land measuring 16Bigha - 12 Biswa detailed as
under :-
i) land measuring Land measuring 7 Bigha-18 Biswa comprised in Khewat no. 1881//1830, Khatouni
no. 2932, Khasra no. 3885 (0-14), 3887/2 (1-8), 3890/2 (5-6) as per Jamabandi of Year 2019-2020.
situated at village kutail , Tehsil Gharaunda Distt Karnal-132037.
ii) Land measuring 2 Bigha-15 Biswa comprised in Khewat no. 3255//3173, Khatouni no. 4996, Khasra
no. 3885/2 min (2-15) as per Jamabandi of Year 2019-2020.
iii) Land measuring 3 Bigha-11 Biswa comprised in Khewat no. 1255/1226, Khatouni no. 1970, Khasra no.
3888 (3-11) as per Jamabandi of Year 2019-2020.
iv) Land measuring 2 Bigha-8 Biswa comprised in Khewat no. 2792/2718, Khatouni no. 4180, Khasra no.
3888/1/2 (2-8) as per Jamabandi of Year 2019-2020.
Situated at Kasba Karnal, Tehsil & Distt. Karnal as per Jamabandi for 2019-2020 and Transfer Deed No.
8632/1 dated 29.11.2023 and mutation No. 72848. Further, loan is secured by personal guarantees of four
directors and corporate guarantee by Shorya Trading Company Private Limited.
22.1 (c) The Company has entered into a Suppliers' Credit Program ("Facility") with third parties whereby the
third party pays the suppliers and the Company pays the third party on the due date along with
interest. As the Facility provided by the third party is within the credit period provided by the suppliers,
the outstanding liability towards such Facility has been disclosed under Borrowings.
22.2 The Company regularly submits provisional drawing power (DP) statements on a monthly basis to
State Bank of India Limited, Yes Bank Limited and Citi Bank N.A. by the 20th of the following month.
The DP limit is computed in accordance with the terms and conditions outlined in the sanction letter.
Discrepancies between DP statement and financial statement arise since DP statements are prepared
on a provisional basis after exclusion of certain items of inventory and debtors are done as per the bank
sanction letter. During the current year, the Company has submitted revised DP statements tallying
with the books of accounts for aforesaid period. In FY 25-26, the actual utilization of working capital
remained within the bank sanction/DP limits.
$ excluding interest and penalties, which can not be determined at this stage.
a against E 24.88 millions (March 31, 2025 : E 24.88 millions) have been deposited under protest
(ii) The Company did not comply with the provisions of Section 149(1)(b) of the Companies Act, 2013, concerning
the appointment of a woman director, up to the financial year ended March 31, 2024. Consequently,
the Company has submitted an application for compounding of the offence under Section 441 of the
Companies Act, 2013 with adjudicating authority, which is currently under the disposal of the relevant
authority. The impact of this non-compliance cannot be quantified at this point in time and has therefore
been disclosed as a contingent liability.
It is not possible to predict the outcome of the pending litigations/dispute with accuracy, the Company
believes, based on management expert, that it has meritorious defences to the claims. The Company
believes the pending actions will not require outcome of resources embodying economic benefits and
will not have a material adverse effect upon the results of the operation, cash flows or financial condition
of the Company.
B. Other long-term benefits
The leave obligations cover the Company's liability for privilege leave and sick leave. The amount of
provision made during the year is 4.21 millions (March 31, 2025 - 3.73 millions). The Company does not
have an unconditional right to defer settlement for any of these obligations. However, based on the past
experience, the Company does not expect payment of the entire amount of accrued leaves or availment of
the entire number of accrued leaves by employees within twelve months and accordingly, amounts have
been classified as current and non-current.
C. Defined Benefit Obligation (Unfunded)
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a year of 5 years are eligible for gratuity. The amount of gratuity payable
on retirement/termination is the employees last drawn basic salary per month computed proportionately
for 15 days salary multiplied for the number of years of service subject to maximum of E 2 millions at the time
of separation of from the company.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for
gratuity were carried out as at March 31, 2026. The present value of the defined benefit obligations and the
related current service cost and past service cost, were measured using the Projected Unit Credit Method.
XI. Description of Risk Exposures:
Valuations are performed on certain basic set of pre-determined assumptions and other regulatory
framework which may vary over time. Thus, the Company is exposed to various risks in providing the above
gratuity benefit which are as follows:
Discount rate risk: The present value of the defined benefit obligation is calculated using discount rate
based on Government bonds. The decrease in the bond yield will increase the defined benefit obligation.
Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity pay-outs. This
may arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid
assets not being sold in time.
Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of
salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan
participants from the rate of increase in salary used to determine the present value of obligation will have a
bearing on the plan's liability.
Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the
liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the
assumption.
Note No. 39.5 : Changes in Liabilities from Financing Activities are as under:
As per Ind AS 7, the Company is required to provide disclosures that enable users of financial statements to
evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows
and non-cash changes. The Company did not have any material impact on the Standalone Statement of Cash
Flows other than the following.
Note No. 39.6 : Capital Management
The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary
objective of the Company's capital management is to maximize the shareholder value. The Company's primary
objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital
ratios and safeguard the Company's ability to continue as a going concern in order to support its business
and provide maximum returns for shareholders. The Company also proposes to maintain an optimal capital
structure to reduce the cost of capital. No changes were made in the objectives, policies or processes during the
year ended March 31, 2026 and March 31, 2025.
39.7 Segment Reporting
According to Ind AS 108, identification of operating segments is based on Chief Operating Decision Maker (CODM)
approach for making decisions about allocating resources to the segment and assessing its performance.
The Board of Directors which are identified as a CODM, consist of managing directors, executive directors and
independent directors. The Board of directors of Company assesses the financial performance and position
of the Company and makes strategic decisions. The business activity of the company falls within one broad
business segment viz. "Various types of Pumps & Motors" and substantially sale of the product is within the
country. There are no separate reportable segments under Ind AS 108 "Operating Segments" notified under
the Companies (Indian Accounting Standard) Rules, 2015. Hence, the disclosure requirement of Ind AS 108 of
'Segment Reporting' is not considered applicable.
B. Information about geographical areas
The geographical information analyses the Company revenues by the Company's country of domicile (i.e.
India) and other countries. In presenting the geographical information, segment revenue has been based
on the geographic location of customers. The following is the distribution of the Company revenues and
receivables by geographical market, regardless of where the goods were produced:
iii. Non-current assets
The Company has common non-current assets for business in domestic and overseas markets. Hence,
separate figures for non-current assets/ additions to property, plant and equipment have not been disclosed.
C. Information about major customers (from external customers)
For the year ended March 31, 2026, two customers of the Company constituted more than 10% of the total
revenue of Company, (March 31, 2025, three customer of the Company constituted more than 10% of the
total revenue of Company).
D. The Company provides installation and maintenance services on its certain products at the time of sale in
terms of the contract with customers. These installation and maintenance services are sold together with
the sale of product. Under Ind AS 115, these are considered as three separate performance obligations and
accordingly the sale of the solar pumps is treated as a sale of product and installation and maintenance
is considered as sale of service. The sale of services during the year is E 4,498.68 millions (March 31, 2025:
E 2,955.90 millions) based on the transaction price allocation under Ind AS 115. The remaining performance
obligations related to installation are expected to be satisfied within one year. Accordingly, the practical
expedient available under Ind AS 115 has been applied, and no disclosure in respect of such remaining
performance obligations has been made.
Notes
a) Transactions during the years have been disclosed excluding GST, where applicable
b) All related party transactions entered during the years were in ordinary course of the business. During the
years the Company has not recorded any impairment of receivables relating to amounts owed by related
parties
c) Outstanding balances at the year end are unsecured and interest free except loans given and taken. And
the credit period for subsidiary and associate is 45 days from invoice date.
d) The above information has been determined to the extent such parties have been identified on the basis of
information available with the Company and relied upon by the auditors
Note No. 39.9 : Financial Instrument - Fair Value and Risk Management
The Company maintains policies and procedures to value financial assets or financial liabilities using the best
and most relevant data available. The fair values of the financial assets and liabilities are included at the amount
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
* Investment in subsidiary and associate are measured at cost as per the Ind AS 27 " Separate Financial
statement", hence not presented here.
B. Fair Value Hierarchy
This section explains the judgments and estimates made in determining the fair values of the financial
instruments that are:
a. Recognised and measured at fair value and
b. Measured at amortised cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the Company
has classified its financial instruments into the three levels prescribed under the accounting standard. An
explanation of each level follows underneath the table.
Level 1: Hierarchy includes financial instruments measured using quoted prices. The fair value of all equity
instruments which are traded in the stock exchanges is valued using the closing price as at the reporting
year.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-
the counter derivatives) is determined using valuation techniques which maximize the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair
value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities.
There are no transfers between level 1 and level 2 during the year.
Valuation technique used to determine fair value
The following methods and assumptions were used to estimate the fair values
a. Fair value of cash and bank and other financial assets and liabilities approximate their carrying amounts
largely due to the short-term maturities of these instruments.
b. Fair value of borrowings from banks and other financial liabilities, are estimated by discounting future
cash flows using rates available for debt on similar terms and remaining maturities.
c. Specific valuation techniques used to value financial instruments include:
- the fair value of the remaining financial instruments is determined using discounted cash flow
analysis, where applicable.
Note No. 39.10 : Financial risk management objective and policies
Risk Management Framework
The Board of Directors of the Company have the overall responsibility for the establishment and oversight of
the their risk management framework. The board of directors of each entity has established the processes to
ensure that executive management controls risks through the mechanism of property defined framework. The
Company 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 by the board annually to reflect changes in market conditions and the Company
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 company's audit committee oversees compliance with the Company risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the
Company. The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both
regular and ad-hoc reviews of risk management controls and procedures, the results of which are reported to
the Audit Committee.
The Company has exposure to the following risks arising from financial instruments:
- Credit risk;
- Liquidity risk; and
- Market risk
a Credit Risk
Credit risk arises when a customer or counterparty does 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) and from its financing / investing activities, including deposits with
banks, mutual fund investments and foreign exchange transactions. The Company has no significant
concentration of credit risk with any counterparty.
Trade receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the factors that may influence the credit risk of its customer base,
including the default risk of the industry.
Trade receivables are consisting of a large number of customers. The Management has established a credit
policy under which each new customer is analysed individually for creditworthiness before the Company's
standard payment and delivery terms and conditions are offered. The Company's review includes market
check, industry feedback, past financials and external ratings, if they are available. Sale limits are established
for each customer and reviewed periodically.
The Company establishes an allowance for impairment that represents its expected credit losses in
respect of trade and other receivables. The management uses a simplified approach for the purpose of
computation of expected credit loss for trade receivables. The Company's receivables can be classified into
two categories, one is from the customers/ dealers in the market and second one is from the Government of
India/State. As far as receivables from the Government are concerned, the company does not expect credit
risk.
In monitoring customer credit risk, customers are reviewed according to their credit characteristics, including
whether they are an individual or a legal entity, their geographic location, industry and existence of previous
financial difficulties. The ageing analysis of the receivables has been considered from the date the invoice
falls due.
Cash and bank balances
Credit Risk on cash and cash equivalent, deposits with the banks is generally low as the said deposits have
been made with the banks who have been assigned high credit rating by international and domestic rating
agencies.
Others
Other than trade receivables and others reported above, the Company has no other material financial
assets which carries any significant credit risk.
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 fallen due, under both normal and stressed conditions, without incurring unacceptable losses
or risking damage to the Company's reputation.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities to meet obligations when
due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company
treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the Company's liquidity position (comprising the undrawn
borrowing facilities) and cash and cash equivalents on the basis of expected future cash flows. This is
generally carried out in accordance with practice and limits set by the Company. These limits vary by
location to take into account requirement, future cash flow and the liquidity in which the entity operates. In
addition, the Company's liquidity management strategy involves projecting cash flows in major currencies
and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios
against internal and external regulatory requirements and maintaining debt financing plans.
The bank facilities may be drawn at any time and may be terminated by the bank without notice. Subject
to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in Indian
rupee and have an average maturity within a year.
Maturity profile of Financial liabilities
The table below provides details regarding the remaining contractual maturities of financial liabilities at the
reporting date based on contractual undiscounted payments (excluding transaction cost on borrowings).
c Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other
price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk
include trade payables, trade receivables, borrowings, etc.
i Foreign currency risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily
with respect to the USD . Foreign exchange risk arises from future commercial transactions and recognised
assets and liabilities denominated in a currency that is not the company's functional currency (INR). The risk
is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges
is to minimise the volatility of the rupee cash flows of highly probable forecast transactions by hedging the
foreign exchange inflows on regular basis. The Company also take help from external consultants who for
views on the currency rates in volatile foreign exchange markets.
The Company does not enter into trade financial instruments including derivative financial instruments for
hedging its foreign currency risk.
In respect of assets and liabilities denominated in foreign currencies, the Company's policy is to ensure that
its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when
necessary to address short-term imbalances.
Sensitivity Analysis
Every percentage point changes in the exchange rate for the closing balances between the Indian Rupee
and respective currencies would affect the Company's incremental profit before tax and equity, net of tax
as per below :
ii Interest rate risk
The Company's exposure to the risk of changes in market interest rates relates primarily to debts. To protect
itself from the volatility prevailing, the Company maintain its long term borrowing on fixed interest rate
through derivative instruments for borrowings in foreign currency, in which it agrees to exchange at specific
intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed
upon principal amount.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that
portion of loans and borrowings. With all other variables held constant, the Company's profit before tax is
affected through the impact on floating rate borrowings, as follows.
iii Commodity price risk
Commodity price risk for the Company is mainly related to fluctuations in magnets, iron and copper prices
linked to various external factors, which can affect the production cost of the Company. Since the raw
material costs is one of the primary costs drivers, any adverse fluctuation in prices can lead to drop in
operating margin. To manage this risk, the Company identifying new sources of supply etc. The Company
is procuring materials at spot prices. Additionally, processes and policies related to such risks are reviewed
and controlled by senior management and fuel requirement are monitored by the procurement team.
Note No. 39.H : Leases
a. The Company recognizes the expenses of short-term leases on a straight-line basis over the lease term.
During the year ended, expenses of E 2.34 millions (March 31, 2025 : E 2.18 millions) related to short-term and
low value leases were recognised.
b. On March 31, 2026, lease liabilities were E 95.53 millions (March 31, 2025 : E 27.18 millions). The corresponding
interest expense for the year ended March 31, 2026 was E 4.51 millions (March 31, 2025 E 2.18 millions). The
portion of the lease payments recognized as a reduction of the lease liabilities and as a cash outflow from
financing activities amounted to E 8.55 millions for the year ended March 31, 2026 (March 31,2025 E 13.55
millions).
d. Except as disclosed in note no 39.8 ,there are no income from subleasing right-of-use assets nor any gains
or losses from sales and leaseback for the year ended March 31, 2026 and March 31, 2025.
e. There are no variable lease payments for the year ended March 31, 2026 and March 31, 2025.
Note No. 39.12: Exceptional Items
During the period, the Government of India notified the Code on Wages, 2019, the Industrial Relations Code,
2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code,
2020 ("Labour Codes"). The Company has evaluated the impact of the Labour Codes on its employee benefit
obligations. The incremental impact of E 11.70 millions, being non-recurring in nature, has been recognised as
"Impact of Labour Codes" under "Exceptional items" in the Statement of Profit and Loss for the period.
Note No. 40 : Disclosures pursuant to Section 186 of the Companies Act, 2013:
a. Details pursuant to disclosure requirements of section 186(4) of the Companies Act, 2013 relating to Loan and
Investment by the Company:
41 Employee Share Based Payment
Employee Stock Option Scheme "ESOP-2024" (herein referred as Oswal Pumps Limited ESOP-2024) was approved
by the Board of Directors in their meeting held on August 27, 2024 and by shareholders in their meeting dated
August 27, 2024 respectively. Under ESOP-2024, Nomination and Remuneration Committee is authorised to grant
56,98,870 options to eligible employees of the Group in one or more tranches. The Board on November 13, 2025,
based on the recommendations of the Nomination and Remuneration Committee, approved the grant of
ESOPs to Mr Avadesh K. Singh (President and Chief Operating Officer) having a market value of E 3 millions as on
the date of grant under the Employee Stock Option Plan 2024 in accordance with the terms of his employment
agreement. Options granted under ESOP-2024 shall not vest earlier than a minimum vesting year of one year
and not later than a maximum vesting year of three years from date of grant. The exercise year in respect of
vested options shall be subject to maximum year of four years commencing from the date of vesting. The
options granted under ESOP-2024 carry no rights to dividends and no voting rights till the date of exercise.
The fair value of the share options is estimated at the grant date using Black- Scholes Model, taking into account
the terms and conditions upon which the share options were granted.
The Company has recognised an expense of E 16.71 millions (March 31, 2025 : E 9.55 millions) on grant of 85,313
ESOP granted during the year in accordance with Ind AS 102 "Share Based Payments". The carrying amount of
the ESOP Reserve as at March 31, 2026 is E 28.20 millions (March 31, 2025: E10.55 millions), which includes E 1.93
millions relating to share options granted to employees of the subsidiary company (March 31, 2025: E 1 million).
Share options granted to employees of the subsidiary company are treated as a deemed investment in the
standalone financial statements of the Company.
The exercise price of the share options is E 1 per Equity Share. There are no cash settlement alternatives for
employees.
The expected life of the share options is based on historical data and current expectations and is not necessarily
indicative of exercise patterns that may occur. The volatility is based on annualised standard deviation of the
continuously compounded rates of return based on the peer companies and competitive stocks over a year
of time. The Company has determined the market price on grant date based on latest equity valuation report
available with the Company preceding the grant date.
Note No. 42
As per transfer pricing legislation under section 92 BA of the Income -tax Act, 1961, the Company is required
to use certain specific methods in computing arm's length price of Domestic transactions with subsidiary
and associated enterprises and maintain documentation in this respect. Since law requires existence of such
information and documentation to be contemporaneous in nature, the Company has updated the Transfer
Pricing study to ensure that the transactions with associate enterprises undertaken are at "Arms length basis".
the management is of the view that the same would not have a material impact on these standalone financial
statements.
Note No. 44 Other Statutory Information
a Utilisation of Borrowed funds and share premium
The Company have not advanced or loaned or invested funds during current and in previous financial year
to any other person(s) or entity (ies), 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.
The Company have not received any fund during current and in previous financial year from any persons or
entities with the understanding (whether recorded in writing or otherwise) that the Unit 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.
b Undisclosed Income
The Company does not have any transactions not recorded in the books of accounts that has been
surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during the current
and in previous years (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)
in current and previous financial year.
c Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the current and
previous financial year.
d Core Investment Company (CIC)
The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve
Bank of India. The Company has no CICs as part of the Company.
e Compliance with approved Scheme(s) of Arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact in current
and previous financial year.
f Details of Benami Property held
There are no proceedings which have been initiated or pending against the Company for holding any benami
property under the Prohibition of Benami Properties Transactions Act, 1988 and rules made thereunder in
current and previous financial year.
g Wilful Defaulter
The Company is not declared wilful defaulter by any bank or financial institution or Government or any
Government authority in current years and in previous financial year.
h Compliance with number of layers of companies
The Company has complied with 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 in current year and
in previous financial year.
i Registration of charge or satisfaction with Registrar of Companies
The Company does not have any charges or satisfaction, which is yet to be registered with Registrar of
Companies as at March 31, 2026 and March 31, 2025.
j Relationship with struck off Companies
The Company does not have any transactions with companies struck off during current and in previous
financial year.
k. Audit Trail
The Company has used accounting software (Microsoft Navision) for maintaining its books of account for
the year ended March 31, 2026, which have a feature of recording audit trail (edit log) facility and the same
has operated throughout the year for all relevant transactions recorded in accounting software, except:
i. No audit trail feature was enabled at the database level throughout the year in respect of all the accounting
software (Microsoft Navision) to log any direct data changes;
ii. In respect of accounting software, in which the feature of audit trail (edit log) was enabled but was not
capturing the nature of changes made for certain categories of transactions.
There is no any instance of audit trail feature being tampered with during the year. Additionally, the audit
trail, wherever available has been preserved as per the statutory requirements for record retention.
The Company has migrated to Dynamic 365 Business Central from Microsoft Navision w.e.f. April 01, 2026 and
is in the process of establishing necessary controls and documentations regarding audit trail.
Note No. 45
The Company has completed its IPO of 22,595,114 equity shares of face value E 1 each at an issue price of E 614
per share (including a share premium of E 613 per share) and as a result the equity shares of the Company
were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on June 20, 2025. The issue
comprised of a fresh issue of 14,495,114 equity shares aggregating to E 8,900.00 millions and offer for sale of
8,100,000 equity shares by selling shareholders aggregating to E 4,973.40 millions.
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