P. Provisions
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 are measured at the present value of management’s best estimate of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value is
a pre tax rate that reflects current market assessments of the time value of money and the risks specific to the
liability. The increase in the provision due to the passage of time is recognised as interest expense.
Provision is made for an amount of any dividend declared being appropriately authorised and no longer at the
discretion of the entity on or before the end of the reporting period but not distributed at the end of the reporting
period.
Q. Contingent Liabilities and contingent assets
Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their
existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company or present obligation where it is not probable that an outflow of
resourceswill be required orwherea reliableestimateoftheobligation cannot be made.
Contingent asset is not recognised in the financial statements. A contingent asset is disclosed, where an inflow of
economic benefits is probable.
R. Cash Flow Statement
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of
transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and items of income or expense associated with investing or financing cash flows.The cash flows from operating,
investing and financing activities of the Company are segregated based on the available information.
S. Earnings per Share
(i) Basicearnings pershare
Basicearnings persharearecalculated bydividing:
the net profit after tax for theyear attributable to the equity shareholders of the Company
byweighted average number of equityshares outstanding duringtheyear.
(ii) Diluted earnings pershare
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take in to
account:
The after income tax effect of interest and other financing costs associated with dilutive potential equity shares,
and
The weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equityshares.
T. Dividends
Provision is made for an amount of any dividend declared being appropriately authorized and no longer at the
discretion of the entity on or before the end of the reporting period but not distributed at the end of the reporting
period.
U. Asset held for sale
An entity shall classify a non-current asset (or disposal group) as held for sale if its carrying amount will be
recovered principallythrough a sale
transaction ratherthan through continuing use.
For this to be the case, the asset (or disposal group) must be available for immediate sale in its present condition
subject only to terms that are usual and customary for sales of such assets (or disposal groups) and its sale must be
highly probable.Thus, an asset (or disposal group) cannot be classified as a non-current asset (or disposal group)
held for sale, ifthe entity intends to sell it in a distant future.
For the sale to be highly probable, the appropriate level of management must be committed to a plan to sell the
asset (or disposal group), and an active programme to locate a buyer and complete the plan must have been
initiated.Further, the asset (or disposal group) must be actively marketed for sale at a price that is reasonable in
relation to its current fair value. In addition, the sale should be expected to qualify for recognition as a completed
sale within one year from the date of classification, except as permitted by paragraph 9, and actions required to
complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the
plan will be withdrawn. The probability of shareholders’ approval (if required in the jurisdiction) should be
considered as part of the assessment of whether the sale is highly probable
V. Recent 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. During the year ended March 31,
2026, MCA has notified following new standards or amendments to the existing standards applicable to the
Company.
(i) Ind AS1 - Presentation of Financial Statements (Liability Classification)
Amendments to Ind AS 1 revise how liabilities are classified as current or non-current, effective April 1, 2025.
Classification now depends on the entity's "right to defer settlement" at the reporting date. Liabilities are current if
a covenant is breached on or before the reporting date.The definition ofsettlement is broadened, and detailed
disclosures about covenant compliance risks are required.
(ii) Ind AS 7 & 107-Supplier Finance Arrangements
These amendments increase transparency for supplier finance arrangements, requiring disclosures in Ind AS 7
about terms, liability amounts, and payment due dates. Ind AS 107 requires disclosures about liquidity risk and the
impact of these arrangements on liabilities.
(iii) Ind AS 21-Foreign Exchange Effects (Lack of Exchangeability)
Amendments provide guidance on assessing currency exchangeability and, if not exchangeable, require entities
to estimate the spot exchange rateand disclosethe methodology.
(iv) Ind AS 12 - Income Taxes (Pillar Two Rules)
A temporary exception is introduced for recognizing and disclosing deferred tax assets/liabilities related to the
OECD’s Pillar Two global minimum tax rules. Companies must disclose qualitative and quantitative information
about their exposure to these taxes.
In addition to above, The Government of India has officially announced the implementation of four new Labour
Codes, effective 21 November 2025, replacing 29 existing central labour laws. These reforms aim to simplify
compliance, modernize labour regulations,and enhance worker protection across the country.
The above borrowings from Axis includes:
i) The loan of?132.05 lacs (As on March 31,2025:?195.20 lacs) is repayable in total 57 Monthly installments, commenced from
January 2023. Interest Rate of 8.75% p.a. Current Maturities is?68.89 lacs (As on March31,2025: As. 68.89 lacs) reflected under
Current Borrowings.
Security and other details:
Secured by Mortgage on 1 NO. OF HORIZONTAL MACHINING CENTRE HCN-8800.
ii) The loan of?164.17 lacs (As on March 31,2025:? 234.33 lacs) is repayable in total 56 Monthly installments, commenced from
October 2023. Interest Rate of 8.75% p.a. Cu rrent Maturities is ? 76.54 lacs (As on March 31, 2025: ? 76.54) reflected under
Current Borrowings.
Securityand other details:
Secured by Mortgageonl NO.OF MACHINE HCN-10800.
iii) The loan of?5750 lacs (As on March 31,2025:? Nil) is repayable in total 57 Monthly installments, commencing from
September 2026. Interest Rate of 8.5% p.a. Current Maturities is ? 706.14 lacs (As on March 31, 2025: ? Nil) reflected under
Current Borrowings.
Securityand other details:
Secured by Mortgage on land, building, plant & machinery and current assets situated at survey no. 1147,1148,1149 & 1177 of
VillageChibhada,Sub-District Lodhika and District Rajkot360035.
iv) The above borrowingsfrom DMG MORI Finance GMBH (Germany) includes:
The loan of?435.85 lacs (As on March 31,2025:?466.17 lacs) is repayable in total 60 Monthly installments, commenced from
March 2024. Interest Rate of 4% p.a. Current Maturities is ? 119.22 lacs (As on March 31, 2025: ? 97.02 lacs) reflected under
Current Borrowings.
Securityand other details:
Secured by Mortgage on I DMU 80 FD duoBLOCKwith standard accessories.
37. FAIRVALUEMEASUREMENT
Financial Instrument by category and hierarchy
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 in an arm’s length transaction. The Company has made
certainjudgementsand estimates in determining the fair value of the financial instruments that are (a) recognised and
measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial
statements.
The following methods and assumptions were used to estimate the fair values:
i) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current
liabilities, short term borrowing from banks approximate their carrying amounts largely due to short term
maturities of these instruments.
Quoted investments are fair valued at their market price. The fair value of foreign exchange forward contracts is
determined using forward exchange rate at the balance sheet date.
The fair value for loan, security deposit were calculated based on cash flows discounted with current lending rates,
they are carried at amortised cost.
ii) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters
such as interest rates and individual creditworthiness 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 differentfrom theircarrying amounts.
The fair values of non-current borrowings are based on Effective rate of interest. They are classified as level 2 fair
values in the fair value hierarchy due to the use ofdirect/indirect observable inputs.
For financial assets and liabilities that are measured at fair value, the carriying amounts are equal to the fair values.
Level 1: Quoted 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 fairvalue that are not based on
observable market data.
39. FINANCIAL RISK MANAGEMENT
Financial risk management objectives and policies:
The Company’s financial risk management is an integral part of how the company plans and executes its business
strategies.
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price
of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates,
foreign currency exchange rates, equity prices 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.
The Company manages market risk through a finance department, which evaluates and exercises independent
control over the entire process of market risk management. The activities of this department include management of
cash resources, implementing hedging strategies for foreign currency exposures like foreign exchange forward
contracts, borrowing strategies and ensuring compliance with market risk limits and policies.
Market Risk- Interest rate risk
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. In order to optimize the Company’s position with regards to interest income and
interest expenses and to manage the interest rate risk, finance department performs a comprehensive corporate
interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its
total portfolio.
According totheCompany, interest rate riskexposure isonlyforfloating rate borrowings. Forfloating rate liabilities,the
analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was
outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally
to key management personnel and represents management’s assessment of the reasonably possible change in
interest rates.
38. CAPITAL MANAGEMENT
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. Management monitors the return on capital as well as the level of
dividends to ordinary shareholders.
The Company monitors capital using a ratio of'adjusted net debt’to'total equity’. For this purpose, adjusted net debt is
defined as total borrowings including current maturities less cash and cash equivalents including margin money
deposits keptagainst borrowings.Total equity comprisesall components of equity.
The Company monitors capital on the basis of the following gearing ratio:
The Company’s target is to maintain a debt equity ratio under Tl. The gearing ratios were as follows:
Market Risk- Foreign currency risk
Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company operates internationally and portion of the business is transacted in several
currencies and consequently the Company is exposed to foreign exchange risk through its sales and services in
overseas and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate
exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies.
Other market price risks
The Company is exposed to equity price risk, which arises from FVTPL equity securities. The Company has very insignificant
portion of amounts in unquoted equity instruments other than subsidiary. The management monitors the portion of
equity instruments in its investment portfolio based on market indices. For quoted investments carried at fair value
through profit and loss, the impact of 5% increase in the value of portfolio at the reporting date on profit would have been
an increase by Nil lacs before tax (2024-25 Nil lacs, before tax). An equal change in opposite direction would have decreased
profit by Nil before tax (2024-25 Nil lacs, before tax).
Credit Risk
Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage
this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the
financial condition,currenteconomictrends,and analysisof historical bad debtsand ageing offinancial assets.
Trade and other Receivables
The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the
business environment in which the entity operates. Based on the historical data and financial position of party and
chances of recovery, provision/impairment allowance has been considered and created.
Financial Assets
Investment of surplus funds are made only with approved counter parties and within credit limits assigned to each counter
party.
Financial Assets are considered to be of good quality and there is no significant increase in credit risk except as those
disclosed in Fianancial statement.
Cash & Bank Balances
The compnay held cash and bank balances with credit worthy banks and financial institutions. The credit worthiness of
such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine
incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant
credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any
substantial change, the Company expects the historical trend of minimal credit losses to continue.
Liquidity Risk
Liquidity risk is the risk that company will encounter difficulty in meeting its financial obligations as they fall due. Prudent
liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount ofcommitted credit facility to meet obligations when due. Management monitors rolling
forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The
company manages liquidity risk by preparing month on month cash flow projection to monitor liquidity requirement.
B. Commitments
Future Export obligation / commitment under import of capital goods at concessional rate of customs duty as at March
31, 2026 :1762.10 Lacs (March 31, 2025:521.28 Lacs).
40.1 For Asseesment Year 2013-14, 2014-15 & 2015-16, The AO made adjustment to Book profit for MAT computation and same
was challenged to CIT(A)/ITAT by the Company. ITAT refered back matter to CIT(A)/AO to determine claim submitted by
the Company & recalculate Book profit and MAT Credit. The amount of contingent liability involved is ? 658.08 Lacs and
interest as applicable thereon.
The Company has been advised that the outcome of the all above cases which has not been provided for in the books of
accounts will be in favor of the Company.
44. EMPLOYEES BENEFITS (DISCLOSURE AS PER IND AS 19)
The disclosure required under I nd AS 19 "Employees Benefits" are given below:
a) Provident Fund - Defined Contribution Plan:
Contributions to the Provident Fund are made to Provident Fund Organization and all employees are entitled to Provident Fund
benefits. Amount debited to the statement of profit and loss is Rs. 267.10 Lacs during theyear (Rs. 213.16 Lacs during previousyear).
b) Gratuity & Leave Encashment- Defined Contribution Plan:
i. The Company has various schemes of retirement benefits, viz. Superannuation, Gratuity and Leave Encashment. Such liabilities
of Vatva & Chhatral Works are administered by separate trusts formed for this purpose through the Group schemes of Life
Insurance Corporation of India. The liability for the Gratuity and Leave Encashment is determined on the basis of an independent
actuarial valuation done at the year-end. The actuarial valuation method used for measuring the liability is the Projected Unit Credit
method. The obligation are measured as the present value of estimated future cash flows discounted at rates reflecting the
prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligations. The
estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.
The Company has hied for the voluntary judicial liquidation for Wintal Machines SRL, Italy (Wintal) (100% subsidiary) and the
administrator appointed by the Court of Brescia has taken control on all the activities of the Wintal w.e.f. December 30,2024. The
Company has already provided for total investment and receivables from Wintal in standalone financial statements in the past
and itdoes not expect any proceedsfrom the above Judicial Liquidation.
Note 47
The Company has decided to shift both manufacturing plants i.e. Extrusion machinery plant from Vatva (Dist. Ahmedabad) and
Injection machinery plant from Chhatral (Dist. Gandhinagar) to a new state-of-the-art integrated manufacturing facility at
Chibhda Dist. Rajkot. The Injection machinery plant shifting to Chibhda, Rajkot has been completed at one time cost of Rs. 215
Lakhs which include logistics, human resources training and other associated cost, accounted in other expenses for the current
year. The Extrusion machine plant shifting has been substantially completed during the current year at one time cost of Rs. 266.64
Lakhs which include logistics, human resources training and other associated cost accounted in other expenses. The Company
has agreed and paid a total onetime payment to union workers at Extrusion and Injection of Rs. 225.07 Lakhs and Rs. 486.54 Lakhs
respectively. The Company has also settled Thane workers claims for Rs. 450.00 Lakhs. Accordingly, Rs. 1,161.61 Lakhs has been
accounted asan exceptional item during thecurrentyear.
Note 48
During the year Global CNC Pvt Ltd. has shifted to new premises in Chibhda & sold Metoda land and building at Rs. 520 Lakhs
resulting in gain of Rs. 265.68 Lakhs which has been accounted as exceptional items for the year ended March 31,2026.
Note 49
The Company has completed acquisition of Unitech Workholding Systems Private Limited (“Unitech”) on February 10,2026 as per
Share Purchase agreement entered on November 10, 2025 for a total purchase consideration of Rs. 4,200 Lakhs. Accordingly,
Unitech has become subsidiary of the Company and the Company has taken control of the management of Unitech. The
purchase consideration paid has been allocated in accordance with the Ind AS 103 "Business Combinations” on the basis of book
value of the acquired assets and liabilities. Accordingly, the Company has recognized goodwill of Rs. 3,715.37 lakhs. The results of
consolidated accounts are included in the results from February 10,2026; hence previous period figures are not comparable with
current period.
Note 50
The Non cash consideration of Rs. 2,500 Lakhs to the shareholders of Unitech has been settled by way of Shares swap through
issuance of fully paid up 7,37,680 equity shares of the Company on preferential basis at Rs. 338.90 per share during the year.
Note 51
The Company on January 09,2025 had allotted 2,60,62,027 warrants at a price of INR191.85 per warrant (including a premium of Rs.
189.85 per warrant) convertible in to equivalent number of Equity Shares of face value of Rs. 2/- each within a period of 18 months,
on receipt ofthe25%of theconsideration amount per Warrant.
During the year the company allotted of 33,06,203 equity shares on conversion of 33,06,203 warrants, to person belonging to the
Promoter Group Category, on receipt of the balance 75% of the consideration amount.
Note 52
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 Company has assessed impact of these changes on the consolidated financials on the
basisoftheguidance provided by the Institute of Chartered Accountants of India.The incremental onetime impact ofgratuityof
Rs. 98.51 Lakhs arises due to change in wage definition which has been accounted in the employee benefit expenses during the
currentyear.
Note 53
Disclosure pursuant to Ind AS 105 “Non-current assets held for sale and discontinued operations:
Details of assets and liabilities held for sale as at March 31,2026: The Company has shifted operations of Vatva & Chhatral plants to
Chibhda, Rajkot as per Note 7 above. The Company has entered MOU for Jalgaon & Vatva plant sales and Thane Plant is also
available for sales. Following is the major class of assets of these four plants classified as held for sale as at March 31,2026:
Group(s) of assets classified as held for sale: As at 31-3.2026
Property, plant and equipment Rs. 25,853.36 Lakhs
Last year, the Company has accounted for the following exceptional items of ^736.34 Lakhs:
(A) Impairment Provision for Investment in RCube Energy Pvt Ltd (Q2 FY24-25) ? 919.00 Lakhs
(B) Less: Reversal of provision on receipt of funds for ICDon OTS (Q2 FY 24-25) ? 294.34 Lakhs
(C) Add: Pastservicesclaim settled ofservice provider under OTS (Q2 FY24-25) ? 145.15 Lakhs
(D) Less: Receipt ofsalesconsideration for RCube Energy Pvt Ltd (Q4FY24-25) ? 33.47 Lakhs
Total Exceptional Itemsfortheyearended Mar31,2025(A-B C-D) ? 736.34 Lakhs
Note 55
The Company has got approval on March 19,2026 from the Hon’ble National Company Law Tribunal, Ahmedabad Bench, under
the provisions of Sections 230 to 232 of the Companies Act, 2013, for the Scheme of Amalgamation of Global CNC Private Limited
(“Global”), a wholly-owned subsidiary, with the Company, with effect from the Appointed Date, i.e. April 1, 2025. The Scheme has
become effective upon filling of certified copy with the Registrar of Companies, Ahmedabad on March 31,2026. The Scheme has
been given effect to in these financial statements by merging the carrying amount of assets and liabilities pertaining to the
Global with the Company with effect from the Appointed Date. Further, the Company had acquired control over the erstwhile
Global CNC Private Limited w.e.f. February 14, 2025. Consequent to the above, the comparative information in these financial
statements for the year ended March 31,2025 have been restated from the published financial statements to give the impact of
the Scheme for the period February14,2025 to March 31,2025.
Disclosure under regulation 53(f) and 34(3) read together with paragraph A Schedule V
of Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure
Requirements) Regulations,2015.
Note 59
OTHER STATUTORY INFORMATION FOR THE YEAR ENDED 31 MARCH 2026 AND 31 MARCH 2025:
i) The Company do not have any benami property, where any proceeding has been initiated or pending against the Company for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45of!988) and rules made thereunder.
ii) The Company have following transaction with companies struck off under Section 248 of the Companies Act, 2013.
iii) The Company does not have any charge or satisfaction which is yet to be registered with Registrar of Companies beyond the
statutory period.
iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
v) 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.
vi) 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."
vii) The Company do not have any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income in the tax assessments under the Income-tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income-tax Act, 1961).
viii) The Company has not been declared wilful defaulter by any bankor financial institution or Government or any Government
authority or other lender, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
ix) The Company has complied with the number of layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013
read with the Companies (Restriction on number of Layers) Rules, 2017 from the date of their implementation.
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