17. Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will
be required to settle the obligation.
Provisions for onerous contracts are recognized when the expected benefits to be derived by the
Company from a contract are lower than the unavoidable costs of meeting the future obligations
under the contract.
A disclosure for contingent liabilities is made where there is a possible obligation or a present
obligation that may probably not require an outflow of resources or an obligation for which the
future outcome cannot be ascertained with reasonable certainty. When there is a possible or a
present obligation where the likelihood of outflow of resources is remote, no provision or disclosure
is made.
Contingent assets are neither recognized nor disclosed in financial statements.
C. RECENT ACCOUNTING PRONOUNCEMENTS:
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time.
Ind AS 1, Breach of a material covenant- Amendment issued to remove the carve-out allowing classification
of loans as noncurrent on breach of covenants when lender agrees after reporting date to and before
approval of financial statements to not demand payment effective 1 April 2026. The Company has no
impact of these amendments in its standalone financial statements.
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 informing 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 no impact of
these amendments in its standalone financial statements.
Ind AS 12, International Tax Reform - 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. The Company has no impact of these amendments in its standalone financial
statements.
Ind AS 21, The Effects of Changes in Foreign Exchange Rate: The amendments provide guidance on
determining the spot exchange rate when a currency is not exchangeable or exchangeability is limited.
It also introduced enhanced disclosure requirements regarding the nature, effects, and estimation of
exchange rates used in such situations. The Company has no impact of these amendments in its standalone
financial statements.
b) Rights of equity shareholders
The Company has one class of equity shares having a par value of Rs 2 per share. Each shareholder is
eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In
the event of liquidation of the 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.
Nature & Purpose of the Reserve:
Securities premium account: Securities premium account is credited when shares are issued at premium. The
reserve will be utilised in accordance with the provisions of the Companies Act, 2013.
General reserve: The General reserve is created by way of transfer of profits from retained earnings for
appropriation purposes. This reserve is utilised in accordance with the provisions of the Companies Act, 2013.
Retained earnings: Retained earning are the profits/(loss) that the company has earned till date, less any
transfers to general reserve. Retained earnings is a free reserve available to the Company.
Other Comprehensive income (Remeasurement gain/loss on defined benefit plans): Remeasurement of
net defined benefit obligation recognized in other comprehensive income comprises of changes in actuarial
gains and losses and any change in the effect of the asset ceiling, excluding amounts included in net interest on
the net defined benefit liability.
Note:
(i) Working capital loans are secured by way of pari passu charge over present and future movable fixed
assets of the Company and hypothecation of raw materials, finished goods, stores & spares, book debts
etc. in favour of consortium of banks other than specific assets financed by respective banks.
(ii) Further, secured against the personal guarantee of the Managing Director of the Company.
(iii) Working capital loans carries interest ranging 9.75% to 10.35% p.a. (previous year - ranging 9.75% to
11.35% p.a.)
Note 33 : Impact of Labour Codes
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 the assessment of the financial impact due to changes in
regulations. The Company has considered to restructure the compensation of its employees and assessed the
impact of the changes, consistent with the Labour Codes, draft rules and FAQs. Considering the materiality
nature of this impact, the Company has presented such incremental impact under "Employee Benefits Expense"
in the statement of profit and loss for the year ended March 31, 2026.
Note 37 : Segment Reporting
Business Segment
The Company's Board of Directors consisting of Managing Director together with the Chief Financial Officer
has been identified as the Chief Operating Decision Maker (CODM) as defined under Ind AS 108 "Operating
Segments". The CODM evaluates the Company's performance and allocates the resources based on an analysis of
various performance indicators. The Company is primarily engaged in the business of manufacture of Industrial
Fasteners, bolts etc. Since all these segments meet the aggregation criteria as per the requirements of Ind AS
108 on 'Operating segments; the management considers these as a single reportable segment. Accordingly,
disclosure of segment information has not been furnished.
Geographical Segment
Revenue is segregated into two segments namely India (sales to customers within India) and other countries
(sales to customers outside India) on the basis of geographical location of customers for the purpose of reporting
geographical segments. All non current assets are located within India. The accounting policy adopted for
segment reporting are in line with the accounting policies adopted for the preparation of financial statements.
(i) All related party transactions entered during the year were in ordinary course of the business and are
on arm's length basis.
(ii) No amounts in respect of related parties have been written off / written back during the year, nor any
provision been made for doubtful debts / receivables during the year.
(iii) Related party relationships have been identified by the management and relied upon by the Auditors.
(iv) * The above figures do not include payment for provident and other funds. Also, figures for provisions of
compensated expenses and gratuity are not included as separate actuarial valuations are not available.
(v) ** Refer Note no. 49 on Lease accounting
(vi) Working Capital loan of Rs 1,010.53 lakhs (as at March 31, 2025 - Rs. 2,574.27 lakhs) is secured against
the personal guarantee of Chairman and Managing Director of the Company.
DISCLOSURE PURSUANT TO IND AS - 19 "EMPLOYEE BENEFITS"
i) Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit
retirement plan ("The Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump
sum payment to vested employees on retirement (subject to completion of five years of continuous
employment), death, incapacitation or termination of employment that are based on last drawn salary and
tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on
the reporting date and the Company makes annual contribution to the gratuity fund administered by Life
Insurance Corporation of India under Group Gratuity Scheme.
The sensitivity analyses above have been determined based on reasonable possible changes of the respective
assumptions occurring at the end of the reporting period and may not be representative of the actual change.
It is based on a change in the key assumption while holding all other assumptions constant. When calculating
the sensitivity to the assumption, the same method used to calculate the liability recognised in the balance
sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not
change as compared with the previous period.
ii) Compensated Absences: The Company permits encashment of compensated absence accumulated by their
employees on retirement, separation and during the course of service. The liability in respect of the Company,
for outstanding balance of leave at the balance sheet date is determined and provided on the basis of actuarial
valuation as on March 31, 2026 performed by an independent actuary. The Company doesn't maintain any plan
assets to fund its obligation towards compensated absences.
The fair values of the financial assets and liabilities are included at the amount at which the instrument could
be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables,
other current liabilities, short term loans from banks and other financial institutions approximate
their carrying amounts largely due to short term maturities of these instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on
parameters such as interest rates and individual credit worthiness of the counterparty. Based on this
evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair
value of such instruments is not materially different from their carrying amounts.
The Company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly.
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not
based on observable market data.
Fair value estimation
For financial instruments measured at fair value in the Balance Sheet, a three level fair value hierarchy is used
that reflects the significance of inputs used in the measurements. The hierarchy gives the highest priority to
unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest
priority to unobservable inputs (Level 3 measurements).
The categories used are as follows:
• Level 1: quoted prices for identical instruments
• Level 2: directly or indirectly observable market inputs, other than Level 1 inputs; and
• Level 3: inputs which are not based on observable market data.
There were no significant changes in classification and no significant movements between the fair value
hierarchy classifications of financial assets and financial liabilities during the years.
Note 46 : Financial risk factors
The Company's principal financial liabilities comprise of loans, borrowings, trade and other payables. The
purpose of these financial liabilities is to finance the Company's operations and to provide support its operations.
The Company's principal financial assets, trade and other receivables and cash and cash equivalents derive their
value directly from its operations.
The Company's activities exposes it to Liquidity Risk, Market Risk and Credit risk. The Board of Directors reviews
and agrees policies for managing each of these risks, which are summarised as below
a) Liquidity risk
The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are
settled by delivering cash or another financial asset. Liquidity risk management implies maintaining sufficient
cash including availability of funding through an adequate amount of committed credit facilities to meet the
obligations as and when due.
The Company manages its liquidity risk by ensuring as far as possible that it will have sufficient liquidity to meet
its short tem and long term liabilities as and when due. Anticipated future cash flows, undrawn committed
credit facilities are expected to be sufficient to meet the liquidity requirements of the Company.
(i) Financing arrangements
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. The value of a financial instrument may change as a
result of changes in the interest rates, foreign currency exchange rates and other market changes that affect
market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments
including investments and deposits , foreign currency receivables, payables and loans and borrowings.
(i) Foreign currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates. The Company has foreign currency trade payables and trade receivables
and is therefore exposed to foreign exchange risk. The exchange rates have been volatile in the recent years and
may continue to be volatile in the future. Hence the operating results and financials of the Company may be
impacted due to volatility of the rupee against foreign currencies. The Company is not significantly exposed to
foreign currency risk due to their limited transaction in the foreign currency.
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate
because of changes in market interest rates. The Company's long term borrowings have fixed rate of interest
and are carried at amortised costs. The interest rate risk exposure is mainly from changes in fixed and floating
interest rates. The interest rate are disclosed in the respective notes to the financial statement of the Company.
The following table analyse the breakdown of the financial liabilities by type of interest rate:
(c) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual
obligations. The Company is exposed to credit risks from its operating activities, primarily trade receivables, cash
and cash equivalents, deposits with banks and other financial instruments.
To manage the credit risk from trade receivables, the Company periodically assess financial reliability of
customers, taking into account the financial condition, current economic trends, and analysis of historical bad
debts and ageing of accounts receivable. Individual risk limits are set accordingly. The Company considers the
probability of default upon initial recognition of asset and whether there has been a significant increase in credit
risk on an ongoing basis through each reporting period.
Trade and other receivables
The Company considers the probability of default upon initial recognition of assets and whether there has been
a significant increase in credit risks on an ongoing basis throughout each reporting period. The average credit
period allowed to the customers is in the range of 30-90 days.
To assess whether there is a significant change increase in credit risk the Company compares the risks of default
occurring on the assets as at the reporting date with the risk of default as at the date of initial recognition. It
considers the reasonable and supportive forward looking information such as:
(i) Actual or expected significant adverse changes in business.
(ii) Actual or expected significant changes in the operating results of the counterparty.
(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's
ability to meet its obligations
(iv) Significant increase in credit risk on other financial instruments of same counterparty
Note 48 : Capital risk management
The Company's objectives when managing capital are to :
♦ safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders, and
♦ maintain an optimal capital structure to reduce the cost of capital
In order to maintain or adjust the capital structure, the Company may issue new shares, adjust the amount of
dividends paid to shareholders etc.
(c) Dividends
The Company follows the policy of Dividend for every financial year as may be decided by Board
considering financial performance of the Company and other internal and external factors enumerated in
the Company dividend policy.
Note 49
Leases
The Company has taken land and building on lease from a related party for a period of 49 years (March 31, 2025
- 29 years). As per Ind AS 116 "Leases'; the Company has recognised the lease liability at the present value of
remaining lease payments, discounted at the Company's incremental borrowing rate of 10.00% p.a. (March 31,
2025 - 10.00% p.a.) and the right-of-use asset was recognised at an amount equal to accrued lease payments.
* During the year, the Company has received approval from the Maharashtra Industrial Development Corporation
(MIDC), vide letter dated October 27, 2025, for the execution of a sub-lease in respect of a portion of land
admeasuring 13,000 sq. mtrs., forming part of Plot No. C-4/1, Chakan Industrial Area Phase II, originally sub¬
leased from J.N. Marshall & Company (Engg Dept.), a related party, for the period from August 1,2024 to July 31,
2073. Pursuant to the approval, the Company paid a differential premium of Rs. 101.07 lakhs to MIDC, which has
been treated as a lease modification cost and capitalised as part of the right-of-use asset.
Since the revised lease term is effective from August 1,2024, the Company remeasured the lease liability and the
corresponding right-of-use asset from that date in accordance with Ind AS 116. Consequently, the right-of-use
asset and lease liability increased by Rs. 427.27 lakhs and Rs. 417.12 lakhs, respectively, and the resulting gain of Rs.
10.15 lakhs has been recognised in the Statement of Profit and Loss as "Gain on modification of lease arrangement.
Note 50
The Company has been maintaining its books of accounts in the SAP which has feature of recording audit trail of
each and every transaction, creating an edit log of each change made in books of account along with the date
when such changes were made and ensuring that the audit trail cannot be disabled, throughout the year as
required by proviso to sub rule (1) of Rule 3 of The Companies (Accounts) Rules, 2014 known as the Companies
(Accounts) Amendment Rules, 2021.
Additionally, The Company is in compliance with the preservation of audit trail as per the statutory requirements
for record retention.
Note51: Other statutory information
a) The Company does not have any benami property, where any proceeding has been initiated or pending
against the Company for holding any benami property.
b) The Company does not have any transactions with companies struck off.
c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
e) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall
i) 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
ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
f) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall
i) 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
ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
g) The Company does not have any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
h) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act
read with the Companies (Restriction on number of Layers) Rules, 2017.
i) The quarterly returns or statements of current assets filed by the Company with banks or financial
institutions are in agreement with the books of accounts.
j) The Company is not declared wilful defaulter by any bank or financial institution or lender during the year.
k) The Company has used the borrowings from banks and financial institutions for the specific purpose for
which it was taken as at Balance sheet date.
Note 53:
Previous year's figures have been regrouped / rearranged wherever necessary to conform to the current year's
classification.
Note 54 :
The financial statements were approved for issue by the Board of Directors on May 14, 2026.
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