6.7 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable estimate can
be made of the amount of the obligation.
Contingent Liability is disclosed in case of a present obligation
arising from past events, when it is not probable that an outflow
of resources will be required to settle the obligation or where no
reliable estimate is possible. Contingent liabilities are not recognised
in financial statements but are disclosed in notes.
Contingent asset is a possible asset that arises from past events
and whose existence will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly
within the control of the entity. Contingent assets are not recognised
in financial statements and are disclosed in notes when it is virtually
certain that economic benefits will inflow to the Company.
6.8 Foreign Currency Transactions
Transactions in foreign currency are recorded at exchange rates
prevailing at the date of transactions. Exchange differences arising
on foreign exchange transactions settled during the year are
recognised in the statement of profit and loss of the year.
Monetary assets and liabilities denominated in foreign currencies
which are outstanding, as at the reporting date are translated at the
closing exchange rates and the resultant exchange differences are
recognised in the statement of profit and loss.
Non-monetary items that are measured in terms of historical cost
in a foreign currency are recognised using the exchange rate at date
of initial transactions, are not retranslated.
In respect of forward contracts, the premium or discount on
these contracts is recognized as income or expenditure over the
period of the contract. Any profit or loss arising on the cancellation
or the renewal of such contracts is recognized as income or
expense for the year.
6.9 Impairment
Non-financial assets
The carrying amount of non- financial assets other than inventories
are assessed at each reporting date to ascertain whether there is
any indication of impairment. If any such indication exists then the
asset's recoverable amount is estimated. An impairment loss is
recognised as an expenses in the Statement of Profit and Loss,
for the amount by which the asset's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an
asset's fair value less cost to sell and value in use. Value in use
is ascertained through discounting of estimated future cash flows
using a discount rate that reflects the current market assessments
of the time value of money and the risk specific to the assets.
For the purpose of assessing impairment, assets are grouped at
the lowest levels into cash generating units for which there are
separately identifiable cash flows.
An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount.
An impairment loss is reversed only to the extent that asset's
carrying amount does not exceed the carrying amount that would
have been determined, net of depreciation or amortisation, if no
impairment had been recognised.
Financial assets
The Company assesses at each date of balance sheet whether a
financial asset or a group of financial assets is impaired. Ind AS
109 requires expected credit losses to be measured through a
loss allowance. In determining the allowances for doubtful trade
receivables, the Company has used a practical expedient by
computing the expected credit loss allowance for trade receivables
based on a provision matrix. The provision matrix takes into account
historical credit loss experience and is adjusted for forward looking
information. The expected credit loss allowance is based on the
ageing of the receivables that are due and allowance rates used in
the provision matrix.
6.10 Cash and Cash Equivalents
For presentation in the Statement of Cash Flows, cash and cash
equivalents includes cash on hand, other short-term, highly liquid
investments with original maturities of three months or less that
are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
6.11 Borrowing Costs
Borrowing costs directly attributable to the acquisition,
construction or production of a qualifying asset that necessarily
takes a substantial period of time to get ready for its intended
use or sale are capitalized as part of the cost of the asset, until
such time as the assets are substantially ready for the intended
use or sale. Interest income earned on temporary investment of
specific borrowings pending their expenditure on qualifying assets
is deducted from the borrowing costs eligible for capitalisation.
The borrowing costs other than attributable to qualifying assets are
recognised in the profit or loss in the period in which they incurred.
6.12 Financial Instruments
The company recognizes financial assets and financial liabilities
when it becomes a party to the contractual provisions of the
instrument. Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities
(other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the fair
value of the financial asset or financial liabilities, as appropriate,
on initial recognition. Transactions costs directly attributable to the
acquisition of financial assets or financial liabilities at fair value
through profit or loss are recognised immediately in Statement of
Profit and loss.
Financial assets
All regular way purchases or sale of financial assets are recognised
and derecognised on a trade date basis. Regular way purchases
or sales are purchases or sale of financial assets that require
delivery of assets within the time frame established by regulation or
convention in the market place. All recognised financial assets are
subsequently measured in their entirety at either amortized cost or
fair value, depending on the classification of the financial assets.
Classification of Financial Assets
(i) Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost
if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
(ii) Financial assets at fair value through other
comprehensive income
A financial asset is subsequently measured at fair value
through other comprehensive income if it is held within
a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
(iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above
categories is subsequently fair valued through profit or loss.
(iv) Financial liabilities
Financial liabilities are subsequently carried at amortized cost
using the effective interest rate method. For trade and other
payables maturing within one year from the balance sheet
date, the carrying amounts approximate fair value due to the
short maturity of these instruments.
(v) Equity instrument
An equity instrument is any contract that evidences a residual
interest in the assets of the Company after deducting all of
its liabilities. Equity instruments are recorded at the proceeds
received, net of direct issue costs.
Derecognition
The company derecognizes a financial asset when the
contractual rights to the cash flows from the financial asset
expire or it transfers the financial asset and the transfer
qualifies for derecognition under Ind AS 109. A financial
liability (or a part of a financial liability) is derecognized from
the company's balance sheet when the obligation specified in
the contract is discharged or cancelled or expires.
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.
6.13 Segment Reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision maker.
The company considers Ramming Mass as its single segment in
which the company operates. The Company has also dealt in Some
Other products but their volumes are nominal hence no reportable
segments are there.
6.14 Fair Value Measurement
The Company measures financial instruments at fair value at
each balance sheet date. 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. The fair value of an asset or a liability is measured using
the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their
economic best interest.
All assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorised within the fair
value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for
identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input
that is significant to the fair value measurement is directly or
indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that
is significant to the fair value measurement is unobservable.
6.15 Recent accounting pronouncements
The Ministry of Corporate Affairs (""MCA"") issues new standards
and amendments to existing standards under the Companies
(Indian Accounting Standards) Rules from time to time. On May 9,
2025, the MCA issued amendments to Ind AS 21 - The Effects
of Changes in Foreign Exchange Rates, providing enhanced
guidance on assessing currency exchangeability and determining
the appropriate exchange rate when a currency is not readily
exchangeable. Further, on August 13, 2025, the MCA notified the
Companies (Indian Accounting Standards) Second Amendment
Rules, 2025, introducing revisions to multiple standards, including:
•Ind AS 1: Clarifications on the classification of liabilities as
current or non-current, including considerations relating to
covenant compliance and the entity's right to defer settlement
as at the reporting date. •Ind AS 7 and Ind AS 107: Additional
disclosure requirements for supplier finance arrangements aimed
at enhancing transparency regarding their effect on liabilities and
cash flows. •Ind AS 12: A temporary exception from recognising
deferred tax assets and liabilities arising from the OECD Pillar
Two global minimum tax rules, together with related disclosure
requirements. • Ind AS 101: Transitional relief for first-time
adopters with respect to lease classification. These amendments
are effective upon publication in the Official Gazette and will apply
to annual reporting periods beginning on or after April 1, 2026.
The Company has assessed the impact of these amendments on
its financial statements and does not expect any material impact on
account of the same.
Note 12.2 Terms/ Rights attached to Equity Shares
The company has only one class of Equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share
and during the financial year 24-25 the company has issued Bonus Equity Shares in the proportion of 1 (one) Bonus Equity Share of ' 10/- each for
every 1 (one) existing fully paid-up Equity Share of ' 10/- each to the Equity Shareholders whose name was appearing in the Register of Members as
on record date November 29, 2024.
In the event of liquidation of company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all
preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Board of Directors of the company in their meeting held on April 30, 2025 confirm allotment of 6760 shares @ face value of ' 10/- each to the specified
employees under RPEL Employee Stock Option Scheme 2018, the shares were listed on BSE Limited and National Stock Exchange w.e.f May 13, 2025.
Board of Directors of the company in their meeting held on April 30, 2025 confirm allotment of 6760 shares @ face value of ' 10/- each to the
specified employees under RPEL Employee Stock Option Scheme 2018, the shares were listed on BSE Limited and National Stock Exchange
w.e.f May 13, 2025.
(C) Defined Benefit Plan:-
Gratuity
The company has defined benefit plan which provides for gratuity payment. The plan provides a lump sum gratuity payment to eligible employees
at retirement or termination of their employment. The amounts are based on the respective employee's last drawn salary and the year of
employment with the company.
These plans typically expose the Company to actuarial risks such as: Investment, Interest rate, longevity and salary risk:
A) Actuarial Risk: It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in obligation
at a rate that is higher than expected.
Variabilty in mortality rates : If actual mortality rates are higher than the assumed mortality rates asssumption than the Gratuity Benefits
will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an
actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.
Variabilty in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity Benfits will
be paid earlier than expected.The impact of this will depend on whether the benefits are vested as at the resignation date.
B) Investment risk: For funded plans that rely on insurers for managing the assets,the value of assets certified by the insurer may not be
fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate.
This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter
valuation period.
C) Liquidity risk: Employees with high salaries and long durations or those higher in hierarchy,accumulate significant level of benefits. If some
of such employees resign/retire from the company there can be strain on the cashflows.
D) Market risk: Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One acturial
assumption that has material effect is the discount rate. The discount rate reflects time value of money. An increase in discount rate leads
to decrease in Defined Benefit Obligation of the plan benefits and vice-versa. This assumption depends on the yields on the corporate /
government bonds and hence the valuation of the liability is exposed to fluctuations in the yields as at the valuation date.
E) Legislative risk: Legislative risk is the risk of increase in the plan laibilities or reduction in the plan assets due to change in legislation /
regulation. The Government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees.
This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognised immediately in the year
when any such amendement is effective.
No other post-retirement benefits are provided to the employees.
The present value of the defined benefit obligation were carried out as at March 31,2026 by a certified actuary of the Institute of Actuaries
of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using
the projected unit credit method.
Note-33 Capital Management
The capital structure of the Company consists of net debt and total equity of the Company. The Company manages its capital to ensure that the
Company will be able to continue as going concern while maximising the return to stakeholders through an optimum mix of debt and equity within the
overall capital structure. The Company's risk management committee reviews the capital structure of the Company considering the cost of capital and
the risks associated with each class of capital.
Note-34 Related Party Disclosures
The Company has made the following transactions with related parties as defined under the provisions of Indian Accounting Standard-24 issued by the
Institute of Chartered Accountants of India.
List of related parties with whom transactions have taken place during the year along with the nature and volume of transaction is given below from
01.04.2025 to 31.03.2026.
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.The following methods and assumptions were used to estimate the fair values:
1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying
amounts largely due to the short-term maturities of these instruments.
2) Long-term variable-rate borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors,
credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. Risk of other factors
for the company is considered to be insignificant in valuation.
Note 37: Financial Risk Management
Financial risk management policy and objectives
The key objective of the Company's financial risk management is to ensure that it maintains a stable capital structure with the focus on total equity to
uphold investor, creditor, and customer confidence and to ensure future development of its business. The Company is focused on maintaining a strong
equity base to ensure independence, security, as well as financial flexibility for potential future borrowings, if required without impacting the risk profile
of the Company.
Company's principal financial liabilities, comprise Borrowings from Banks, trade and other payables. The main purpose of these financial liabilities is
to finance Company's operations and plant expansion. Company's principal financial assets include investments, trade and other receivables, deposits
with banks and cash and cash equivalents, that derive directly from its operations.
Company is exposed to market risk, credit risk and liquidity risk.
The Company's Board oversees the management of these risks. The Company's Board is supported by senior management team that advises on
financial risks and the appropriate financial risk governance framework for the Company. The senior management provides assurance to the Company's
Board 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.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
i) 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 price risk. Financial instruments affected by market risk include
investments in equity shares, security deposits, trade and other receivables, deposits with banks and financial liabilities.
The sensitivity analysis in the following sections relate to the position as at March 31, 2025 and March 31, 2026. The sensitivity of the relevant
income statement item is the effect of the assumed changes in respective market risks.
a) Foreign currency risk
Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign
exchange rate. The company is exposed to foreign exchange risk arising from foreign currency transactions primarily to EURO & USD.
Foreign currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change by 5% in USD exchange rates, with all other
variables held constant.
b) Interest rate risk
Interest rate risk is the risk that changes in market interest rates will lead to change in interest income and expense for the Company. In order
to optimize the Company's position with regards to interest income & expense and to manage the interest risk, the Company performs
comprehensive interest risk management by balancing the proportion of fix & variable rate financial instruments.
c) Commodity Risk
Commodity risk is defined as the possibility of financial loss as a result of fluctuation in price of Raw Material/Finished Goods and change in
demand of the product and market in which the company operates. The Company is exposed to the movement in price of key raw materials
in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw
materials used in operations. The company forecast annual business plan and execute on monthly business plan. Raw material procurement
is aligned to its monthly/annual business plan and inventory position is monitored in accordance with future price trend.
ii) Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed to credit risk
mainly from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks.
Credit risk on trade receivables is managed by the Company through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company has no concentration
of risk as customer base in widely distributed both economically and geographically.
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 homogenous groups and assessed for impairment collectively. The calculation is based on exchange losses historical data.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold
collateral as security. The Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix
to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit
risk factors such as financial condition, ageing of outstanding and the Company's historical experience for customers.
b) Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with
Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each
counterparty. Company monitors rating, credit spreads and financial strength of its counter parties. Company monitors ratings, credit
spread and financial strength of its counter parties. Based on ongoing assessment Company adjust it's exposure to various counterparties.
Company's maximum exposure to credit risk for the components of balance sheet is the carrying amount.
iii) Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow obligations without incurring unacceptable
losses. Company's objective is to, at all time maintain optimum levels of liquidity to meet its cash requirements. Company closely monitors its
liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft, debt from banks
at optimised cost and cash flow from operations.
Note 38- Corporate Social Responsibilty (CSR)
As per Section 135 of the Companies Act, 2013 read with guidelines issued by Department of Public Enterprises, GOI, the Company is required to
spend, in every financial year, at least two per cent of the average net profits of the Company made during the three immediately preceding financial
years in accordance with its CSR Policy. The details of CSR expenses for the year are as under:
Note-41 Segment Reporting
The company operates in only one Segment i.e. 'Ramming Mass'. Accordingly, the Company is a single segment Company in accordance with Ind AS
108-Operating Segment.
Note-42
The previous year figures have been regrouped, rearranged and reclassified whenever necessary.
Note-43- Information required against additional disclosures as per amendments in Schedule III of Companies Act, 2013 are as
under:-
a. Title deeds of Immovable Property not held in name of the Company (Para a(ii)(XIII)(Y)(i))- There are no immovable properties owned by the
company whose title deeds are not held in its name.
b. Revaluation of Property, Plant & Equipment (Para a(ii)(XIII)(Y)(ii)) - During the year under review the company has not revalued its property,
plant & Equipment.
c. Loan & Advance made to promoters, directors, KMPs and other related parties (Para a(ii)(XIII)(Y)(iii))- The Company has provided loans and
advance to the parties covered under this clause. The same has been disclosed in Note no. 34 Related Party Disclosure
d. Intangible Assets under development (Para a(ii)(XIII)(Y)(v))- There are no intangible assets under development.
e. Details of Benami property held (Para a(ii)(XIII)(Y)(vi))- No proceeding has been initiated or pending against the company for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder
f. Willful Defaulter (Para a(ii)(XIII)(Y)(viii))- The company has not been declared as wilful defaulter by any bank or financial institutions
or other lenders.
g. Relationship with struck of Companies (Para a(ii)(XIII)(Y)(ix))- Following are the transactions (Including Investment in Securities / Shares held
by Struck off company & Other Outstanding balances) with companies struck off u/s 248 of the Companies Act 2013, or section 560 of the
Companies Act, 1956:
h. Registration of charges and satisfaction with Registrar of Companies (Para a(ii)(XIII)(Y)(x))- There are no charges or satisfaction of charges
which are yet to be registered with Registrar of Companies beyond the statutory period.
i. Compliance with number of layers of companies (Para a(ii)(XIII)(Y)(xi)) - The company has not made violation of requirements related to
number of layers of companies as prescribed under clause 87 of Section 2 read with Commpanies (Restriction of number of Layeers) Rules 2017.
j. Compliance with approved Scheme(s) of Arrangements (Para a(ii)(XIII)(Y)(xiii)) - Not Applicable
k. Utilization of Borrowed funds and share premium (Para a(M)(XMI)(Y)(xiv)) - No funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons(s) or entity(ies), including
foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in
party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding
Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on
behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
l. Undisclosed Income (Para a(iii)(ix))- Company has not surrendered or disclosed any transaction which was not recorded in the books of
accounts as income during the year in the tax assessment under the Income Tax Act.
m. Details of Crypto Currency or Virtual Currency (Para a(iii)(xi))- The company has not traded or invested in Crypto Currency or Virtual Currency
during the financial year.
Note-44
On November 21, 2025, the Government of India notified the four Labour Codes - 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 - consolidating 29 existing labour laws.
The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in
regulations. The Company has assessed the same & there is no material impact of these changes and to the best information available, consistent with
the guidance provided by the Institute of Chartered Accountants of India. The Company continues to monitor the finalisation of Central / State Rules
and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect (if any) on the basis of
such developments as needed.
AS PER OUR REPORT OF EVEN DATE For and on behalf of the Board of Directors
Raghav Productivity Enhancers Ltd.
For A. Bafna & Co.
Chartered Accountants
Firm Reg. No. 003660C
Sd/- Sd/- Sd/-
CA Rajat Sharma Rajesh Kabra Sanjay Kabra
(Partner) (Managing Director) (Whole Time Director)
M. No. 428792 DIN:00935200 DIN:02552178
Sd/- Sd/-
Deepak Jaju Neha Rathi
Date : April 24, 2026 (CFO) (Company Secretary)
Place : Jaipur Pan No. : AIDPJ5564H Membership No:38807
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