x) Provisions and Contingencies
The assessments undertaken in recognising provisions and contingencies have been made in accordance with Indian
Accounting Standards (Ind AS) 37, 'Provisions, Contingent Liabilities and Contingent Assets'. The evaluation of the likelihood
of the contingent events is applied best judgement by management regarding the probability of exposure to potential loss.
2. PROPERTY, PLANT & EQUIPMENT, RIGHT OF USE ASSETS AND INTANGIBLE ASSETS
Accounting Policy :
Property, Plant & Equipment
a) Recognition and Measurement
Property, plant & equipment held for use in the production or/and supply of goods or services, or for administrative purposes,
are stated in the balance sheet at cost, less any accumulated depreciation and accumulated impairment losses (if any).
Cost of an item of property, plant and equipment acquired comprises its purchase price, including import duties and non¬
refundable purchase taxes, after deducting any trade discounts and rebates, any directly attributable costs of bringing the
assets to its working condition and location for its intended use and present value of any estimated cost of dismantling and
removing the item and restoring the site on which it is located.
In case of self-constructed assets, cost includes the costs of all materials used in construction, direct labour, allocation of
directly attributable overheads, directly attributable borrowing costs incurred in bringing the item to working condition for
its intended use, and estimated cost of dismantling and removing the item and restoring the site on which it is located. The
costs of testing whether the asset is functioning properly, after deducting the net proceeds from selling items produced
while bringing the asset to that location and condition are also added to the cost of self-constructed assets.
Gains or losses arising from the retirement or disposal of Property, Plant & Equipment are determined as the difference
between the net disposal proceeds and the carrying amount of the asset and recognised as income or expense in the
Standalone Statement of Profit and Loss.
b) Depreciation and Amortization
i) Depreciation on property, plant & equipment is provided under Straight Line Method over the useful lives of assets
after net off residual value as prescribed by Schedule II of the Companies Act, 2013. Depreciation due to change in the
value of property, plant and equipment resulting from exchange rate fluctuation has been provided prospectively
over the residual life of the respective assets.
ii) Depreciation in respect of property, plant & equipment added / disposed off during the year is provided on pro-rata
basis, with reference to the date of addition/disposal.
iii) The estimated useful life is reviewed annually by the management at each financial year end.
Intangible Assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are
carried at cost less accumulated amortisation and accumulated impairment loss, if any.
Intangible assets are amortised on straight line basis over its estimated useful life of 5 years.
Right of Use (ROU) Assets
The ROU assets comprise the initial measurement of the corresponding lease liability, lease payments and security deposit made
at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated
depreciation and impairment losses.
ROU assets are depreciated over the shorter period of the lease term and useful life of the underlying asset. If the company is
reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset's useful life. The
depreciation starts at the commencement date of the lease.
As a practical expedient, Ind AS 116 permits a lessee not to separate non-lease components when bifurcation of the payments is
not available between the two components, and instead account for any lease and associated non-lease components as a single
arrangement. The Company has used this practical expedient.
Extension and termination options are included in many of the leases. In determining the lease term the management considers
all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option.
Capital Work in Progress
Capital work-in-progress is stated at cost which includes expenses incurred during construction period, interest on amount
borrowed for acquisition of qualifying assets and other expenses incurred in connection with project implementation in so far as
such expenses relate to the period prior to the commencement of commercial production.
FINANCIAL ASSETS
Accounting Policy :
All financial assets are recognised on trade date when the purchase of a financial asset is under a contract whose term requires
delivery of the financial asset within the timeframe established by the market concerned. Financial assets are initially measured at
fair value, plus transaction costs, except for those financial assets which are classified at fair value through profit or loss (FVTPL) at
inception. All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value.
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.
The Company assess at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109
requires expected credit loss to be measured through a loss allowance."
Classification and Subsequent Measurement
For purposes of subsequent measurement, financial assets are classified:
a) Measured at Amortized Cost
b) Measured at Fair Value Through Other Comprehensive Income (FVTOCI)
c) Measured at Fair Value Through Profit or Loss (FVTPL) and
Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its
business model for managing financial assets."
Measured at Amortized Cost
The Financial assets are subsequently measured at the amortized cost if both the following conditions are met:
The asset is held within a business model whose objective is achieved by both collecting 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 (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR)
method. Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as
FVTPL. Interest income is recognised in the standalone statement of profit and loss"
The amortised cost of a financial assets is also adjusted for loss allowance, if any.
Measured at Fair Value Through Other Comprehensive Income (FVTOCI)
Ý The financial assets are measured at the FVTOCI if both the following conditions are met:
Ý The objective of the business model is achieved by both collecting contractual cash flows and selling the financial assets; and
The asset's contractual cash flows represent SPPI.
Debt instruments meeting these criteria are measured initially at fair value plus transaction costs. They are subsequently measured
at fair value with any gains or losses arising on re-measurement recognized in other comprehensive income, except for impairment
gains or losses and foreign exchange gains or losses. Interest calculated using the effective interest method is recognized in the
standalone statement of profit and loss."
Measured at Fair Value Through Profit or Loss (FVTPL)
Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through
other comprehensive income on initial recognition. Gains or losses arising on re-measurement are recognised in the standalone
statement of profit and loss. The net gains or loss recognised in standalone statement of profit and loss incorporates any dividend
or interest earned on the financial assets and is included in the "Other income" line item.
Refer Note 50 for disclosure related to Fair value measurement of financial instruments.
3. NON-CURRENT FINANCIAL ASSETS - INVESTMENTS
Accounting Policy :
Investment in Joint-venture is measured at cost less impairment loss, if any.
The joint arrangement is structured through a separate vehicle and the legal form of the separate vehicle, the terms of the
contractual arrangement and, when relevant, any other facts and circumstances gives the Company rights to the net assets of the
arrangement (i.e. the arrangement is a joint venture). The activities of the joint venture are primarily aimed to provide the third
parties with an output and the parties to the joint venture will not have rights to substantially all the economic benefits of the
assets of the arrangement.
T? in noillimnd
3.01 I he Company had executed a Limited Liability Partnership Agreement with Metzerplas Cooperative Agricultural Organization Ltd
(an agriculture cooperative incorporated in Israel) dated 14th February 2018, to jointly carry out business activities in the field of
micro-irrigation within the framework of joint-venture. Pursuant to this, an LLP was incorporated on 9th March, 2018, wherein the
Company holds 50% partnership Interest.
6. INVENTORIES
Accounting Policy :
Inventories of raw materials, fuel, stores & spares parts and packing materials are valued at lower of cost or net realisable value
(NRV). However, these items are considered to be realisable at cost, if the finished products, in which they will be used, are
expected to be sold at or above cost. Cost is determined on weighted average basis.
Work in progress (WIP) and finished goods are Valued at lower of cost or NRV. Cost of Finished goods and WIP includes cost of raw
materials, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost of
inventories is computed on weighted average basis.
Waste / Scrap inventory is valued at NRV. Net realisable value is the estimated selling price in the ordinary course of business, less
the estimated costs of completion and the estimated costs necessary to make the sale.
11 CONTRACT ASSETS
Accounting Policy :
Contract assets are recognised when there is excess of revenue earned over billings on contracts. Unbilled receivables where
further subsequent performance obligation is pending are classified as contract assets when the company does not have
unconditional right to receive cash as per contractual terms. Revenue recognition for fixed price development contracts is based
on percentage of completion method. Invoicing to the clients is based on milestones as defined in the contract. This would result
in the timing of revenue recognition being different from the timing of billing the customers. Unbilled revenue for fixed price
development contracts is classified as non-financial asset as the contractual right to consideration is dependent on completion
of contractual milestones.
(a) Securities Premium Reserve : The Reserve represents the premium on issue of shares and can be utilized in accordance
with the provisions of the Companies Act, 2013.
(b) General Reserve : The Reserve is created by an appropriation from one component of equity (generally retained earnings)
to another, not being an item of Other Comprehensive Income. The same can be utilised by the company in accordance
with the provisions of the Companies Act, 2013.
(c ) Retained Earnings : This reserve represents the cumulative profits of the Company and effects of re-measurement of
defined benefit obligations. This reserve can be utilised in accordance with the provisions of the Companies Act 2013.
(d) Other Reserves:
(i) Item of other Comprehensive Income (Re-Measurement of defined benefit plans): Re-measurement,
comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on
plan assets (excluding net interest), is reflected immediately in the Balance Sheet with a charge or credit recognised
in Other Comprehensive Income (OCI) in the period in which they occur. Re-measurement recognised in OCI is
reflected immediately in retained earnings and will not be reclassified to Statement of Profit and Loss.
Accounting Policy :
Lease liability is initially measured at the present value of future lease payments. Lease payments are discounted using the interest
rate implicit in the lease or, if not readily determinable, using the incremental borrowing rate. Lease liability is subsequently
remeasured by increasing the carrying amount to reflect interest on the lease liability and reducing the carrying amount to reflect
the lease payments made.
The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-
use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term
leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company
recognises the lease payments as an operating expense on a straight-line basis over the lease term, unless another systematic
basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. Contingent and
variable rentals are recognized as expense in the periods in which they are incurred.
Accounting Policy :
Deferred tax is provided, on all temporary differences at the reporting date between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected
to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted
at the reporting date. Tax relating to items recognised directly in equity or OCI is recognised in equity or OCI and not in the
standalone statement of profit and loss.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority, but they intend to settle current tax liabilities and assets on a net basis or
their tax assets and liabilities will be realized simultaneously.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the
temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that
it is no longer probable.
21 OTHER NON-CURRENT LIABILITIES
Accounting Policy :
Government grants are recognized at their fair values when there is reasonable assurance that the grants will be received and the
Company will comply with all the attached conditions
a) Government grants are recognised in the statement of profit or loss on a systematic basis over the periods in which the
Company recognises the related costs for which the grants are intended to compensate.
b) Grants related to acquisition/ construction of property, plant and equipment are recognised as deferred revenue in the
Balance Sheet and transferred to the statement of profit or loss on a systematic and rational basis over the useful lives of the
related asset.
The Company earns revenue primarily from sale of engineering & polymer products. It also earns revenue from its Infrastructure
Projects (Engineering, Procurement & Construction services) segment.
The Company follows Ind AS 115 "Revenue from Contracts with Customers" in respect of recognition of revenue from contracts
with customers which provides a control-based revenue recognition model and a five-step application approach for revenue
recognition as under:
a) Identification of the contract(s) with customers;
b) Identification of the performance obligations;
c) Determination of the transaction price;
d) Allocation of the transaction price to the performance obligations;
e) Recognition of the revenue when or as the Company satisfies performance obligation."
Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at
an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
Revenue excludes amounts collected on behalf of third parties.
a) Revenue from sale of goods & services :
Revenue from the sale of engineering and polymer products is measured based on the consideration specified in a contract
with a customer and excludes amounts collected on behalf of third parties. Company recognises revenue at a point in time,
when control is transferred to the customer, and the consideration agreed is expected to be received. Control is generally
deemed to be transferred upon delivery of the products in accordance with the agreed delivery plan"
b) Revenue from infrastructure projects :
According to Ind AS 115 revenue is recognized over time (percentage of completion) either when the performance creates
an asset that the customer controls as the asset is created (e.g. work in progress) or when the performance creates an
asset with no alternative use and an enforceable right to payment as performance is completed to date has been secured.
Revenue is also recognized over time if the customer simultaneously receives and consumes the benefits from goods and
services as performed.
c) Variable Consideration :
If the consideration in a contract includes a variable amount, the company estimates the amount of consideration to
which it will be entitled to in exchange for transferring goods to the customer. In Polymer segment of the Company, Some
contracts with the customers provide them with a right to return and volume rebates. The right to return and volume
rebates gives rise to variable consideration. The amount of variable consideration is calculated by either using the expected
value or the most likely amount depending on which is expected to better predict the amount of variable consideration.
d) Modification in Contract :
Contracts are subject to modification to account for changes in contract specification and requirements. The
Company reviews modification to contract in conjunction with the original contract, basis which the transaction price
could be allocated to a new performance obligation, or transaction price of an existing obligation could undergo
a change. In the event transaction price is revised for existing obligation, a cumulative adjustment is accounted for.
The Company disaggregates revenue from contracts with customers by industry verticals, geography and nature of goods
or services.
Borrowing cost include interest expense calculated using the effective interest method, finance charges in respect of assets
acquired on finance lease and exchange difference arising on foreign currency borrowings to the extent they are regarded as an
adjustment to the finance cost.
Transaction costs in respect of long term borrowing are amortized over the tenure of respective loans using Effective Interest Rate
(EIR) method. All other borrowing costs are recognized in the standalone statement of profit and loss in the period in which they
are incurred.
a) Provisions
i) 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.
Provisions is measured using the cash flows estimated to settle the present obligation and when the effect of time
value of money is material, Provisions are determined by discounting the expected future cash flows (representing
the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre¬
tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
The unwinding of the discount is recognized as finance cost. Reimbursement expected in respect of expenditure
required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.
ii) Decommissioning Liability
Restoration/ Rehabilitation/ Decommissioning cost are provided for in the accounting period when the obligation
arises based on the NPV of the estimated future cost of restoration to be incurred. It includes the dismantling and
demolition of infrastructure and removal of residual material. This provision is based on all regulatory requirements
and related estimated cost based on best available information.
iii) Onerous Contracts
Present obligations arising under onerous contracts are recognized and measured as provisions. An onerous contract
is considered to exist when a contract under which the unavoidable costs of meeting the obligations exceed the
economic benefits expected to be received from it.
b) Contingent Liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence
in the standalone financial statements.
41.02 It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at pending resolution of the
appellate proceedings.
42 Estimated amount of contracts pending execution on capital account and not provided for (net of advances) is C542.07 million
(Previous Years: C340.96 million).
43 The Company has given Corporate Guarantee of C1,098.80 million (Previous Years: C598.80 million) to a Bank for arranging
credit facility for its Joint Venture and has received a Bank Guarantee from its Joint Venture Partner for C Nil million (Previous
Years: C Nil million) as collateral. Borrowings outstanding in the books of account of the Joint Venture from this credit facility is
C711.16 million (Previous Years: C427.17 million).
44 Event Occurring after the Balance sheet date
The dividend declared by the Company is based on profits available for distribution as reported in the financial statements of the
Company. On 30th April, 2025, the Board of Directors of the Company has proposed a dividend of C0.10 (previous year: C0.10 per
equity share) per fully paid-up equity share of C1 each and a pro-rata dividend of C0.025 (previous year: C0.025) per partly paid-up
equity share of ?0.25 each i.e. 25% of the paid-up value in respect of the year ended 31st March, 2025, subject to the approval of
shareholders at the Annual General Meeting. If approved, the dividend would result in a cash outflow of approximately C11.28
million (Previous Years: C 10.52 million).
45 As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. The disclosure in respect of
CSR Expenditure during the current and pervious year as aligned with the CSR Policy of the Company which is in line with the
activities specified in Schedule VII of the Companies Act, 2013 is as under:
47 LEASES
Accounting Policy :
Lease commitments
The Company has lease contracts for certain items of office premises, plant & machinery and land. The Company's obligations
under leases are secured by the lessor's title to the leased assets.
Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.
Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the
date of initial application.
Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.
Set out below are the carrying amounts of lease liabilities included under financial liabilities and right to use asset included under
non-current assets and the movements during the current and previous year.
48 RELATED PARTY DISCLOSURES (Contd.)
48.1 Remuneration paid to directors represents short-term employee benefits and does not includes any long-term employee benefits
post retirement.
48.2 Advance against salary given to directors, is as per the company's policy for its employees.
48.3 All related party transactions entered during the current and previous financial year are in ordinary course of business and on arm's
length basis.
49 SEGMENT REPORTING
Accounting Policy :
The identification of operating segment is consistent with performance assessment and resource allocation by the chief operating
decision maker. An operating segment is a component of the Company that engages in business activities from which it may
earn revenues and incur expenses including revenues and expenses that relate to transactions with any of the other components
of the Company and for which discrete financial information is available. Operating segments of the Company comprises three
segments Engineering, Polymer products and Infrastructure segment. All operating segment's operating results are reviewed
regularly by the chief operating decision maker to make decisions about resources to be allocated to the segments and assess
their performance.
50 FAIR VALUATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (NON-CURRENT AND
CURRENT) (Contd.)
Accounting Policy :
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. Fair value for measurement and/or disclosure purposes in the financial statement is determined on such a basis, leasing
transactions and measurements that have some similarities to fair value but are not fair value, such as net realisable value in
Inventories or value in use in Impairment of Assets.
51 EMPLOYEE BENEFITS (Contd.)
b) Other Long Term Employee Benefits
The liabilities for earned leaves that are not expected to be settled wholly within twelve months are measured as the present
value (determined by actuarial valuation using the projected unit credit method) of the expected future payments to be made
in respect of services provided by employees up to the end of the reporting period and recognised in books of accounts. The
present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market
yields at the end of the reporting period on government bonds. Re-measurements as the result of experience adjustment and
changes in actuarial assumptions are recognized in standalone statement of profit and loss.
c) Post-Employment Benefits
The Company operates the following post-employment schemes:
i) Defined Benefit Plan
The liability or asset recognized in the Balance Sheet in respect of defined benefit plans is the present value of the defined
benefit obligation at the end of the reporting period less the fair value of plan assets. The Company's net obligation in
respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in
the current and prior periods.
The defined benefit obligation is calculated annually by Actuaries using the projected unit credit method. The
liability recognized for defined benefit plans is the present value of the defined benefit obligation at the reporting
date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and
past service costs. Net interest is calculated by applying the discount rate at the beginning of the period to the net
defined benefit liability or asset. Past service cost is recognised in the standalone statement of profit and loss in
the period of a plan amendment. The present value of the defined benefit plan liability is calculated using a discount
rate which is determined by reference to market yields at the end of the reporting period on government bonds.
Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and
the return on plan assets (excluding net interest), is reflected immediately in the Balance Sheet with a charge or credit
recognised in Other Comprehensive Income (OCI) in the period in which they occur. Re-measurement recognised in OCI is
reflected immediately in retained earnings and will not be reclassified to standalone statement of profit and loss.
The Company contributes to fund maintained with Life Insurance Corporation of India.
ii) Defined Contribution Plan
Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation other
than the contribution payable to the Provident fund. Contribution payable under the provident fund is recognised as
expenditure in the standalone statement of profit and loss.
Disclosure pursuant to Indian Accounting Standard (Ind AS) 19 - Employee Benefits are as under :
51 EMPLOYEE BENEFITS (Contd.)
(B) Defined Benefit Plan :
Post employment and other long term employee benefits in the form of gratuity and leave encashment are considered
as defined benefit obligation. The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a
defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit
Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement
and measures each unit separately to build up the final obligation. Under the PUC method a "projected accrued benefit"
is calculated at the beginning of the year and again at the end of the year for each benefit that will accrue for all active
members of the Plan. The "projected accrued benefit" is based on the Plan's accrual formula and upon service as of the
beginning or end of the year, but using a member's final compensation, projected to the age at which the employee is
assumed to leave active service. The Plan liability is the actuarial present value of the "projected accrued benefits" as of the
beginning of the year for active members.
Liability for leave payable at the time of retirement has been recognized on actuarial basis.
The defined benefit obligation calculated as on 31st March, 2025 is based on the existing salary definition (Basic DA) and
the impact of the new definition of Wages under the proposed Code on Wages, 2019 issued by the Government of India
has not been considered since the applicable date for Code of Wages has not yet been notified by the Government.
Risk Exposure:
Defined Benefit Plans expose the Company to actuarial risks such as: Interest Rate Risk, Salary Risk, Demographic Risk and
Regulatory risk.
(a) Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. If
bond yields fall, the defined benefit obligation will tend to increase.
(b) Salary risk : Higher than expected increases in salary will increase the defined benefit obligation.
(c) Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include
mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation
is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It
is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career
employee typically costs less per year as compared to a long service employee.
(d) Regulatory Risk : Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act ,
1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g.
Increase in the maximum limit on gratuity from C1 million to C2 million). An upward revision of maximum gratuity
limit will result in gratuity plan obligation.
The following tables summarises the components of net benefit expense recognised in the statement of profit and
loss and the funded status and amounts recognised in the balance sheet for the Post-retirement benefit plans.
Derivative Financial Instrument
The Company uses derivative financial instruments such as forward, swap, options etc. to hedge against interest rate and foreign
exchange rate risks, including foreign exchange fluctuation related to highly probable forecast sale. The realized gain / loss in
respect of hedged foreign exchange contracts which has expired / unwinded during the year are recognized in the standalone
statement of profit and loss and included in other operating revenue / other expense as the case may be. However, in respect
of foreign exchange forward contracts period of which extends beyond the balance sheet date, the fair value of outstanding
derivative contracts is marked to market and resultant net loss/gain is accounted in the standalone statement of profit and loss.
Company does not hold derivative financial instruments for speculative purposes.
Derivatives and Hedge Accounting
Derivatives are initially recognised at fair value and are subsequently remeasured to their fair value at the end of each reporting
period. The resulting gains / losses are recognised in Statement of Profit and Loss immediately unless the derivative is designated
and effective as a hedging instrument, in which event the timing of recognition in profit or loss / inclusion in the initial cost of
non-financial asset depends on the nature of the hedging relationship and the nature of the hedged item. The Company complies
with the principles of hedge accounting where derivative contracts are designated as hedge instruments. At the inception of the
hedge relationship, the Company documents the relationship between the hedge instrument and the hedged item, along with
the risk management objectives and its strategy for undertaking hedge transaction, which is a cash flow hedge.
Cash Flow Hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised
in the other comprehensive income and accumulated as 'Cash Flow Hedging Reserve'. The gains / losses relating to the
ineffective portion are recognised in the Statement of Profit and Loss. Amounts previously recognised and accumulated in other
comprehensive income are reclassified to profit or loss when the hedged item affects the Statement of Profit and Loss. However,
when the hedged item results in the recognition of a non- financial asset, such gains / losses are transferred from equity (but
not as reclassification adjustment) and included in the initial measurement cost of the non- financial asset. Hedge accounting is
discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge
accounting. Any gains /losses recognised in other comprehensive income and accumulated in equity at that time remain in
equity and is reclassified when the underlying transaction is ultimately recognised. When an underlying transaction is no longer
expected to occur, the gains / losses accumulated in equity are recognised immediately in the Statement of Profit and Loss.
The Company's principal financial liabilities other than derivatives comprise long-term and short-term borrowings, capital
creditors and trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The
Company's principal financial assets other than derivatives include trade and other receivables, cash and cash equivalents and
deposits that derive directly from its operation.
The Company is exposed to market, credit, liquidity and regulatory risks. The Company's senior management oversees the
management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are
summarised below :
(A) 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: commodity risk, interest rate risk and foreign currency risk.
(a) Commodity Price Risk
Company is affected by the price volatility of certain commodities, primarily, Steel, Zinc and PVC Resin. Its operating activities
require the on-going purchase of these materials. The company has arrangement to pass-through the increase/decrease in
Steel and Zinc price through price variance clause in majority of the contract. Resin price is primarily dependent on Crude
Oil prices. There is a certain residual risk carried by the Company that cannot be hedged against. The company effectively
manages deals with availability of material as well as price volatility by widening its sourcing base, through well planned
procurement & inventory strategy and prudent hedging policy on foreign currency exposure.
52 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd.)
(b) 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 rate relates primarily to the
Company's operating activities (when revenue or expense is denominated in a foreign currency). Further, the Company
has foreign currency risk on import of input materials, capital commitment and also borrow funds in foreign currency
for its business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to
exchange rate risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities
are denominated in similar foreign currencies, for the remaining exposers to foreign exchange risks, the Company adopts
a policy of selective hedging based on risk perception of management using derivative, whenever required, to mitigate or
eliminate the risks.
(C) Credit Risks
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company's receivables from customers.
Trade Receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the industry and country in which the customer operates,
also has an influence on credit risk assessment. Credit risk is managed 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 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 adjusted for forward-
53 Capital Management
The Company's objective to manage its capital is to ensure continuity of business while at the same time provide reasonable
returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is
reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic
investments. The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. Apart from internal accrual, sourcing of capital is done through judicious
combination of equity and borrowing, both short term and long term. The Company is not subject to any externally imposed
capital requirements. The Company monitors capital using a debt equity ratio.
56 LOANS AND ADVANCES (REPAYABLE ON DEMAND OR WITHOUT SPECIFYING ANY TERMS OR
PERIOD OF REPAYMENT) TO SPECIFIED PERSON
During the year ended 31st March, 2025, the Company did not provide any loans or advances, which remains outstanding
(repayable on demand or without specifying any terms or period of repayment ) to specified persons. (Previous Year: Nil).
57 RELATIONSHIP WITH STRUCK OFF COMPANIES
The company do not have any transactions with company's struck off under Section 248 of the Companies Act, 2013 or Section
560 of the Companies Act, 1956 during the year ended 31st March, 2025 (Previous year: Nil).
58 DISCLOSURE IN RELATION TO UNDISCLOSED INCOME
The Company do not have any undisclosed income disclosed or surrendered during the year ended 31st March, 2025. (Previous
year: Nil).
59 DETAILS OF BENAMI PROPERTY HELD
The Company do not hold any property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder,
hence there are no proceedings against the company for the year ended 31st March, 2025 and also for the year ended 31st
March, 2024.
60 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)
The Company do not have any charges or satisfaction, which are yet to be registered with ROC beyond the statutory period,
during the year ended 31st March, 2025 and also during the year ended 31st March, 2024.
61 DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY
The company have not traded or invested in crypto currency or virtual currency during the year ended 31st March, 2025 and also
during the year ended 31st March, 2024.
62 The Company has not been declared wilful defaulter by any bank or financial institution or any government or any government
authority during the current year and previous financial year.
63 UTILISATION OF BORROWED FUND AND SHARE PREMIUM
The Company have not advanced or loaned or invested funds to any other person(s) or entity (ies), including foreign entities
(intermediaries) with the understanding that the intermediary shall: (a) directly or indirectly lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or (b) provide any guarantee,
security or the like to or on behalf of the ultimate beneficiaries.
The Company have 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: (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."
64 RIGHT ISSUE OF EQUITY SHARES
The Board of Directors of the Company ('the Board') at its meeting held on 16th August 2023 had approved raising of funds by way
of an issue of equity shares through rights issue ("Rights Issue"). Further, the Rights Issue Committee as constituted by the Board,
at its meeting held on 8th January 2024 & 17th January, 2024 has approved various terms of the Issue and the Letter of Offer for
issue of 1,02,67,021 equity shares of face value of Rs.1 each at a price of Rs.194/- per Equity Share (including premium of Rs.193 per
Equity Share), in the ratio of 1 Equity Shares for every 10 existing fully-paid equity shares held by the eligible equity shareholders
as on the record date i.e. 12th January 2024. The issue period was from 30th January, 2024 to 8th February, 2024. On 19th February,
2024, the Rights Issue Committee as constituted by the Board of the Company approved allotment of 1,02,67,021 partly paid-up
Equity Shares at an issue price of C194 per Equity Shares [(including premium of C193 per Equity Shares) of which C48.50 per equity
Shares has been received on application ( C0.25 has been paid-up on application as share capital and C48.25 as a premium per
equity shares)], to eligible equity shareholders. Subsequently, the board on 28th October, 2024 approved making of first and final
call money, which is received in full except for 109888 number of equity shares, where final call money is pending to be received
till 31st March 2025. Right Issue Committee (RIC) in its meeting held on 30th November, 2024 and 31st December,2024 has approved
for conversion of 9837458 and 319675 respectively number of partly paid equity shares into fully paid equity shares.
65 Balances of certain debtors and creditors are subject to confirmation and reconciliation. In the opinion of the management,
current assets, loan and advances will have value on realization in the ordinary course of business at least equal to the amount at
which they are stated.
66 The Indian Parliament has approved the Code on Social Security, 2020 which would impact contribution by the company towards
Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020
on November 13 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The
Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the
Code become effective.
69 The Company has used the borrowings from bank for the specific purpose for which it was taken at the balance sheet date.
70 The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit
log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit
trail feature is not enabled at the database level. Further there is no instance of audit trail feature being tampered and the audit
trail has been preserved by the company as per the statutory requirements for record retention except at the database level.
71 The management has evaluated all activity of the Company till 30th April, 2025 and conclude that there ware no additional
subsequent event required to be reflected in the Company's standalone financial statements.
72 Previous year figures have been re-grouped / re-classified wherever necessary, to conform to current year classification.
Notes forming part of standalone financial statements 1-72
As per our report annexed For and on behalf of the Board
For J K V S & CO
Chartered Accountants
Firm's Regn No.-318086E
AJAY KUMAR SAJAN KUMAR BANSAL DEVESH BANSAL
Partner Chairman & Managing Director Director
Membership No. 068756 DIN - 00063555 DIN - 00162513
Place: Kolkata SHIV SHANKAR GUPTA ANU SINGH
Dated: 30-04-2025 Chief Financial Officer Company Secretary
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