C. Claims made by the ex-employees whose services have been terminated in earlier years are not acknowledged
as debt. The matters are frivolous and are disputed under various forums. However, in the opinion of the
management, these claims are not tenable. The Possibility of any liability devolving on the Company is remote
and hence, no disclosure as contingent liability is considered necessary.
36 Capital and other commitments
i. Capital commitment for tangible assets (net of advance paid) - Rs. 1851.80 Lakhs (Previous year : Rs. 269.71
Lakhs) and for intangible assets (net of advance paid) - Nil (Previous year : Nil).
ii. The Company's intention is to continue to provide financial support to its subsidiaries - Pradeep Metals
Limited Inc. (WOS) and Dimensional Machine Works, LLC (SDS).
37 Borrowings secured against current assets
During the year, the Company has taken borrowings from a bank on the basis of security of current assets.
Discrepancies in quarterly returns or statements of current assets filed by the Company to bank with books of
accounts are as mentioned below:
(ii) Fair value hierarchy
The financial instruments are categorized into three levels based on the inputs used to arrive at fair value
measurements as described below:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Valuation techniques for which lowest level input that is significant to the fair value measurement is
directly or indirectly observable;
Level 3: Valuation techniques for which lowest level input that is significant to the fair value measurement is
directly or indirectly unobservable;
The following tables categorise the financial assets and liabilities held at fair value by the valuation
methodology applied in determining their fair value.
Determination of fair values: The following are the basis of assumptions used to estimate the fair value of
financial assets and liabilities that are measured at fair value.
Derivative instruments: For forward contracts, future cash flows are estimated based on forward exchange
rates (from observable forward exchange rates at the end of the reporting period) and contract forward
exchange rates, discounted at a rate that reflects the credit risk of respective counterparties.
42 Significant estimates and assumptions
The Preparation of the Company's standalone financial statements requires management to make estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the
accompanying disclosures, including the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount
of assets or liabilities affected in future periods.
The Key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below. The Company based its assumptions and
estimates on parameters available when the standalone financial statements were prepared. Existing
circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising that are beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.
a Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset's
recoverable amount. An asset's recoverable amount is the higher of an asset's or Cash Generating Unit ( CGU's)
fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or groups of assets. Where the
carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
In determining fair value less costs of disposal, recent market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation model is used. These calculations involves use of significant
estimates and assumptions which includes turnover and earnings multiples, growth rates and net margins used to
calculate projected future cash flows, risk-adjusted discount rate, future economic and market conditions.
b Measurement of defined benefit plan & other long term benefits
The cost of the defined benefit gratuity plan / other long term benefits and the present value of the gratuity
obligation/other long term benefits are determined using actuarial valuations. 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. Due to the complexities involved in the valuation
and its long-term nature, a defined benefit obligation/other long term benefits is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date. The cost of the defined benefit gratuity plan and
other long term benefit and the present value of the gratuity obligation and leave benefit are determined using
actuarial valuations. 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. Due to the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to change
only at interval in response to demographic changes. Future salary increases and gratuity increases are based on
management policy for increase in basic salary.
c Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using valuation techniques including the
Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable markets where possible,
but where this is not feasible, a degree of judgment is required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors
could affect the reported fair value of financial instruments.
d Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected loss
rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment
calculation based on industry practice, the Company's past history and existing market conditions as well as
forward looking estimates at the end of each reporting period. The impairment provisions for financial assets are
based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these
assumptions and selecting the inputs to the impairment calculation, based on the Company's past history, existing
market conditions as well as forward looking estimates at the end of each reporting period.
e Income tax and deferred tax
Provision for tax liabilities require judgements on the interpretation of tax legislation, developments in case law and
the potential outcomes of tax audits and appeals which may be subject to significant uncertainty. Therefore the
actual results may vary from expectations resulting in adjustments to provisions, the valuation of deferred tax
assets, and therefore the tax charge in the Statement of Profit and Loss. Deferred tax assets are recognised only to
the extent that it is probable that future taxable profit will be available against which such deferred tax assets can
be utilized.
f Provision for inventories
Management reviews the inventory age listing on a periodic basis. This review involves comparison of the carrying
value of the aged inventory item with the respective net realisable value. The purpose is to ascertain whether an
allowance is required to be made in the financial statements for any obsolete and slow-moving items. The
Management is satisfied that adequate allowance for absolute and slow-moving/non-moving inventories has
been made in the financial statements.
43 Foreign currency exchange rate risk:
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates
relates primarily to the Company's export revenue. The Company cover its foreign currency risk by booking
forward contract against exports receivables and confirmed export sales orders. The Company also avails bill
discounting facilities in respect of export receivables.
Since a major part of the Company's revenue is in foreign currency and major part of the costs are in Indian
Rupees, any movement in currency rates would have impact on the Company's performance. Consequently, the
overall objective of the foreign currency risk management is to minimize the short term currency impact on its
revenue and cash-flow in order to improve the predictability of the financial performance.
The major foreign currency exposures for the Company are denominated in USD. Additionally, there are
transactions which are entered into in other currencies and are not significant in relation to the total volume of the
foreign currency exposures. The Company hedges export trade receivables (particularly USD and Euro) upto a
maximum of 12 months forward based on historical trends. Hedge effectiveness is assessed on a regular basis.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates
primarily to the Company's long-term debt and short-term debt obligations with floating interest rates. Further, the
Company also avails subvention benefits under MSMED, Act.
Interest rate sensitivity
The Company's total interest cost the year ended 31st March, 2026 was Rs. 513.56 Lakhs and for year ended
31st March, 2025 was Rs. 560.36 Lakhs. The following table demonstrates the sensitivity to a reasonably possible
change in interest rates on that portion of loans and borrowings affected, with all other variables held constant, the
Company's profit before tax is affected through the impact on floating rate borrowings, as follows:
44 Financial risk management objectives and policies
The Company's principal financial liabilities comprise loans and borrowings, trade payables and financial
guarantee contracts. The main purpose of these financial liabilities is to finance the Company's operations and
finance loans taken by WOS. The Company's principal financial assets include loans, trade and other receivables
and cash and cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees
the management of these risks. The Company's senior management consists of Risk Management Committee
(RMC) that advises on financial risks and the appropriate financial risk governance framework for the Company.
The RMC provides assurance that the Company's financial risk activities are governed by appropriate policies and
procedures and that financial risks are identified, measured and managed in accordance with the Company's
policies and risk objectives. It is the Company's policy that no trading in derivatives for speculative purposes may
be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are
summarised as below.
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: interest rate risk, currency risk and other price
risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and
borrowings and deposits.
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign
exchange rates relates primarily to the Company's export revenue.
The Company covers its foreign currency risk by budgeting exports sales & repeat orders from its
overseas customers and the Company books forward contract against exports receivable. The Company
also avails bill discounting facilities in respect of export receivables.
Commodity price risk
The Company is affected by the price volatility of certain commodities. Its operating activities require the
on-going purchase of steel. Due to significant volatility of the price of the steel, the Company has agreed
with its customers for pass-through of increase/decrease in prices of steel. There may be lag effect in case
of such pass-through arrangement.
Commodity price sensitivity
The Company revises its prices to customers on quarterly basis by considering average raw materials
prices prevailing in the previous quarter implying it passes through any increase in prices thereby
minimising the impact on the profit and loss and equity of the Company.
Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities
(primarily trade receivables) and other receivables and deposits, foreign exchange transactions and
other financial instruments.
Expected credit loss and Trade receivables
Customer credit risk is managed by the Company's established policy, procedures and control relating to
customer credit risk management. Further, the Company's customers includes companies having long
standing relationship with the Company. Outstanding customer receivables are regularly monitored and
reconciled. Two customers accounted for more than 10% of the total receivables as at 31st March 2026
(Two customer for 31st March 2025). An impairment analysis is performed at each reporting date on an
individual basis for major clients. In addition, a large number of minor receivables are grouped into homogeneous
groups and assessed for impairment collectively. The calculation is based on historical data, past trend and
standard percentage norms. The maximum exposure to credit risk at the reporting date is the carrying value of
each class of financial assets disclosed in Note 12. The Company does not hold collateral as security . Majority of
the export receivable are covered under the insurance cover. The Company evaluates the concentration of risk
with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and
operate in largely independent markets. No allowance has been made for expected credit loss.
Liquidity risk
As per the Company's policy, there should not be concentration of repayment of loans in a particular financial
year. In case of such concentration of repayment, the Company evaluates the option of refinancing entire or part
of repayments for extended maturity. The Company assessed the concentration of risk with respect to refinancing
its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt
maturing within 12 months can be rolled over with existing lenders and the Company.
The table below summarises the maturity profile of the Company's financial liabilities:
Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. The ratio is
calculated as net debt divided by equity. Net debt is calculated as total borrowing (including current and
non-current terms loans as shown in the Balance Sheet).
The Company monitors capital using 'Total Debt' to 'Equity'. The Company's Total Debt to Equity are as follows:
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call
loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and
borrowing in the current period. No changes were made in the objectives, policies or processes for managing
capital during the years ended 31st March 2026 and 31st March 2025.
46 Segmental disclosure
The Group is primarily engaged in manufacturing of closed die steel forging & processing and generating power
from wind turbine generator and solar power generating system.
45 Capital management
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and
all other equity reserves attributable to the equity holders of the Company. The primary objective of the
Company's capital management is to maximise the shareholder value.
The Company manages its capital to ensure that it will be able to continue as a going concern so, that they can
continue to provide returns for the shareholders and benefits for other stakeholders and maintain an optimal
capital structure to reduce cost of capital. The Company manages its capital structure and make adjustments to, in
light of changes in economic conditions, and the risk characteristics of underlying assets. In order to achieve this
overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial
covenants attached to the borrowings that define the capital structure requirements.
Notes:
a. The operating segments have been reported in a manner consistent with the internal reporting provided to the
Corporate Management Committee, which is the Chief Operating Decision Maker.
b. The business segment comprise the following:
a) Closed Die Forging and Processing
b) Power Generation
c. The geographical information considered for disclosure are: Sales within India and Sales outside India.
iii) Reliance on major customers:
Two customers represents more than 10% of the total revenue. Total revenue from this major customer amounts to
Rs. 3,650.19 Lakhs (Emerson Alfa). In case of previous year only two customer represented more than 10% of
total revenue whose revenue amounted to Rs. 1,824.49 Lakhs. (Alfa)
47 Hedge Accounting
The Company has managed the foreign exchange risk with appropriate hedging activities in accordance with
policies of the Company. The Company's manages currency risk as per trends and experiences. The Company uses
forward exchange contracts to hedge against its foreign currency exposures relating to export receivables. The
Company does not enter into any derivative instruments for trading or speculative purposes.
49.1 Since the Company has spent in excess of the amount which was required to be spent for 2025-26, the
Company is entitled to carry forward the amount spent of Rs. 0.37 Lakhs (Previous Year - Rs. 0.15 Lakhs) to
subsequent three financial years respectively which can be set off against CSR obligations of these years.
However, for accounting purpose, cumulative excess amount spent of Rs. 0.37 Lakhs (Previous Year - Rs.0.15
Lakhs) is not considered as prepaid expenses.
50 Defined benefits and other long term benefit plans
a. Gratuity plan
Funded scheme
The Company has a defined benefit gratuity plan for its employees. The gratuity plan is governed by the payment
of Gratuity Act, 1972. Under the Act, every employee who has completed five years of service is entitled to
specific benefit. The level of benefits provided on the employee's length of service and salary retirement age.
Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary
(last drawn) for each completed year of service as per the provisions of the payment of Gratuity Act, 1972. The
scheme is funded with insurance company in the form of a qualifying insurance policy.
Risk exposure and asset-liability matching
Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies
take on uncertain long term obligations to make future benefits payments.
I. Liability risks
(a) Asset-liability mismatch risk
Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration
with the defined benefit liabilities, the Company is successfully able to neutralize valuation swings caused by
interest rate movements.
(b) Discount rate risk
Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practice
have a significant impact on the defined benefit liabilities.
(c) Future salary escalation and inflation risk
Since price inflation and salary growth are linked economically, they are combined for disclosure purposes.
Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of
liabilities especially unexpected salary increase provided at the management's discretion may lead to
uncertainties in estimating this increasing risk.
II. Asset Risks
All plan assets are maintained in a trust fund managed by a public sector insurer viz. LIC of India. LIC has a
sovereign guarantee and has been providing consistent and competitive returns over the years. The Company has
opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The Company has no
control over the management of funds but this option provides a high level of safety for the total corpus. A single
account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured.
57 The Company is not engaged in the business of
trading or investing in crypto currency or virtual
currency and hence no disclosure is required.
58 The Company has not advanced any funds or
loaned or invested by the Company to or in any other
person(s) or entities, including foreign entities
("Intermediaries"), with the understanding that the
intermediary shall whether directly or indirectly lend or
invest in other persons or entities identified in any
manner by or on behalf of the Company (Ultimate
Beneficiaries) or provide any guarantee, security or the
like on behalf of ultimate beneficiaries.
The Company has not received any funds from any
person(s) or entities including foreign entities ("Funding
Parties") with the understanding that such Company
shall whether, 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 provide guarantee, security
or the like on behalf of the Ultimate beneficiaries.
59 No proceedings have been initiated or are pending
against the Company as on 31st March, 2026 for
holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules
made thereunder.
60 The Company does not have any transaction with
companies struck off under section 248 of Companies
Act, 2013 or section 560 of Companies Act, 1956 and
hence no disclosure is required.
61 The Board of Directors of the Company at their
Meeting held on 3rd March, 2025, approved the
Scheme of Amalgamation of Nami Capital Private
Limited ("NCPL" or "Transferor Company") with
Pradeep Metals Limited ("PML" or "Transferee
Company") and their respective Shareholders
("Scheme") under Sections 230 to 232 read with
Section 66 and other relevant provisions of the
Companies Act, 2013 ("the Act").
Pursuant to the above, the Company filed an application
with BSE Limited under Regulation 37 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, seeking its in-principal approval / no-objection
to the proposed Scheme. BSE Limited, vide its letter
dated 15th July, 2025, conveyed that it has no adverse
observation with respect to the proposed Scheme, in
terms of the applicable SEBI Circular(s).
Thereafter, the Company filed a Company Scheme
Application ("CSA") before the Hon'ble National
Company Law Tribunal, Mumbai Bench ("NCLT"). The
Hon'ble NCLT, upon hearing the said application,
passed the First Motion Order on 8th April, 2026,
thereby directing the Company to convene a Meeting of
its Equity Shareholders for the purpose of considering
and, if thought fit, approving the proposed Scheme of
Amalgamation. Accordingly, the Meeting of the Equity
Shareholders of the Company has been scheduled on
12th June, 2026.
The Second Motion hearing before the Hon'ble NCLT,
for final sanction of the Scheme, is pending and shall be
filed upon receipt of the requisite approvals from the
Equity Shareholders. The Scheme shall become effective
upon receipt of the Order of the Hon'ble NCLT
sanctioning the Scheme and filing of the said Order with
the Registrar of Companies, and such other statutory
and regulatory approvals as may be required under
applicable laws.
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