(p) Provisions, Contingent Liabilities and Contingent Assets
and Commitments :
Provisions are recognized when the Company has a present
obligation (legal or constructive) as a result of a past event,
it is probable that the Company will be required to settle
the obligation, and a reliable estimate can be made of the
amount of the obligation.
The amount recognized as a provision is the best estimate
of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligations. When
a provision is measured using the cash flow estimated to
settle the present obligation, its carrying amount is the
present obligations of those cash flows (when the effect of
the time value of money is material).
When some or all of the economic benefits required to
settle a provision are expected to be recovered from a third
party, a receivable is recognized as an asset if it is virtually
certain that reimbursement will be received and the amount
of the receivable can be measured reliably.
Contingent assets are not recognised in financial statements
since this may result in the recognition of income that may
never be realised. However, when the realisation of income
is virtually certain, then the related asset is not a contingent
asset and is recognised. A contingent asset is disclosed, in
financial statements, where an inflow of economic benefits
is probable.
(q) Financial Instruments:
Financial assets and financial liabilities are recognized
when a Company becomes a party to the contractual
provisions of the instruments.
Initial Recognition
Financial assets and financial liabilities are initially
measured at fair value (except Trade Receivable which is
at transaction price). Transaction costs that are directly
attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss and
ancillary costs related to borrowings) are added to or
deducted from the fair value of the financial assets or
financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through
profit or loss are recognised immediately in Statement of
Profit and Loss.
Classification and Subsequent Measurement: Financial
Assets
The Company classifies financial assets as subsequently
measured at amortised cost, fair value through other
comprehensive income ("FVOCI") or fair value through profit
or loss ("FVTPL") on the basis of following:
(i) the entity's business model for managing the financial
assets and
(ii) the contractual cash flow characteristics of the
financial asset.
Amortised Cost
A financial asset shall be classified and measured at
amortised cost if both of the following conditions are met:
(i) the financial asset is held within a business model
whose objective is to hold financial assets in order to
collect contractual cash flows and
(ii) the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments
of principal and interest on the principal amount
outstanding.
In case of financial asset classified and measured at
amortised cost, any interest income, foreign exchange
gains/losses and impairment are recognised in the
Statement of Profit and Loss.
Fair Value through OCI
A financial asset shall be classified and measured at fair
value through OCI if both of the following conditions are
met:
(i) the financial asset is held within a business model
whose objective is achieved by both collecting
contractual cash flows and selling financial assets and
(ii) the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments
of principal and interest on the principal amount
outstanding.
Where the Company has elected to present the fair value
gain on equity instruments in other comprehensive income,
there is no subsequent classification of fair value gain
or losses to profit and loss account. Dividend from such
instruments is recognized in profit and loss account as
other income where right to receive is established.
Fair Value through Profit or Loss
A financial asset shall be classified and measured at
fair value through profit or loss unless it is measured at
amortised cost or at fair value through OCI. All recognised
financial assets are subsequently measured in their entirety
at either amortised cost or fair value, depending on the
classification of the financial assets. For financial assets at
fair value through profit or loss, net gain or losses, including
any interest or dividend income are recognised in the
Statement of Profit and Loss.
Classification and Subsequent Measurement: Financial
liabilities
Financial liabilities are classified as either financial liabilities
at FVTPL or 'other financial liabilities'.
Financial Liabilities at FVTPL
Financial liabilities are classified as at FVTPL when the
financial liability is held for trading or are designated upon
initial recognition as FVTPL. Gains or Losses on liabilities
held for trading are recognised in the Statement of Profit
and Loss.
Other Financial Liabilities
Other financial liabilities (including borrowings and
trade and other payables) are subsequently measured
at amortised cost using the effective interest method.
Interest expense (based on effective interest method),
foreign exchange gains and losses and any gain or loss on
derecognition is recognised in the Statement of Profit and
Loss.
Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed
for indicators of impairment at the end of each reporting
period. The Company recognises a loss allowance for
expected credit losses on financial asset. In case of trade
receivables, the Company follows the simplified approach
permitted by Ind AS 109 - Financial Instruments for
recognition of impairment loss allowance. The application
of simplified approach does not require the Company
to track changes in credit risk. The Company calculates
the expected credit losses on trade receivables using a
provision matrix on the basis of its historical credit loss
experience.
Derecognition of financial assets
The Company derecognises a financial asset 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 the asset or if, the Company has
neither transferred nor retained substantially all risk and
reward of the asset, but has transferred control of the asset
to another party.
On derecognition of a financial asset, other than investments
classified as FVOCI, in its entirety, the difference between the
asset's carrying amount and the sum of the consideration
received and receivable and the cumulative gain or loss that
had been recognised in other comprehensive income and
accumulated in equity is recognised in profit or loss if such
gain or loss would have otherwise been recognised in profit
or loss on disposal of that financial asset.
On derecognition of equity investments classified as FVOCI,
accumulated gains or loss recognised in OCI is transferred
to retained earnings.
The Company derecognises a financial asset 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 party.
If the Company neither transfers nor retains substantially all
the risks and rewards of ownership and continues to control
the transferred asset, the Company recognises its retained
interest in the asset and an associated liability for amounts
it may have to pay. If the Company retains substantially all
the risks and rewards of ownership of a transferred financial
asset, the Company continues to recognise the financial
asset and also recognises a collateralised borrowing for the
proceeds received.
On derecognition of a financial asset, other than investments
classified as FVOCI, in its entirety, the difference between the
asset's carrying amount and the sum of the consideration
received and receivable and the cumulative gain or loss that
had been recognised in other comprehensive income and
accumulated in equity is recognised in profit or loss if such
gain or loss would have otherwise been recognised in profit
or loss on disposal of that financial asset.
On derecognition of equity investments classified as FVOCI,
accumulated gains or loss recognised in OCI is transferred
to retained earnings.
Financial liabilities and equity instruments:
(i) Classification as debt or equity
Debt and equity instruments issued by the Company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument.
(ii) Equity instruments
An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued
by a Company are recognised at the proceeds received.
(r) Cash and cash equivalents :
Cash and cash equivalents in the Balance Sheet comprise
cash at bank, Cash in hand and short-term deposits with
banks that are readily convertible into cash which are
subject to insignificant risk of changes in value and are held
for the purpose of meeting short-term cash commitments.
(s) Derivative financial instruments :
Initial recognition and subsequent measurement. The
Company uses derivative financial instruments such as
forward currency contracts, currency options to hedge its
foreign currency risks. Such derivative financial instruments
are initially recognised at fair value on the date on which a
derivative contract is entered into and are subsequently re¬
measured at fair value. Derivatives are carried as financial
assets when the fair value is positive and as financial
liabilities when the fair value is negative. The purchase
contracts that meet the definition of a derivative under Ind
AS 109 are recognised in the Statement of Profit and Loss.
(t) Cash Flow Statement:
Cash flows are reported using the indirect method, whereby
the net profit before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals
of past or future operating cash receipts or payments and
item of income or expenses associated with investing
or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are
segregated.
(u) Segment Reporting:
Operating segments are defined as components of an
enterprise for which discrete financial information is
available that is evaluated regularly by the chief operating
decision maker, in deciding how to allocate resources and
assessing performance. The Companies chief operating
decision maker is the Managing Director.
3. Critical accounting judgements and key sources of
estimation uncertainty
The preparation of the Company's financial statements
requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future
periods.
Key sources of estimation uncertainty
The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the
next financial year, are described below. The Company
based its assumptions and estimates on parameters
available when the financial statements were prepared.
Existing circumstances and assumptions about future
developments, however, may change due to market changes
or circumstances arising that are beyond the control of the
Company. Such changes are reflected in the assumptions
when they occur.
(i) Useful lives of property, plant and equipment :
The Company uses its technical expertise along with
historical and industry trends for determining the
economic life of an asset/component of an asset. The
useful lives are reviewed by management periodically
and revised, if appropriate. In case of a revision, the
unamortised depreciable amount is charged over the
remaining useful life of the assets.
(ii) Defined benefit obligation :
The cost of the defined benefit gratuity plan and the
present value of the gratuity obligation are determined
using actuarial valuations. An actuarial valuation
involves making various assumptions that may differ
from actual developments in the future. These include
the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at
each reporting date.
(iii) Fair value measurement of Financial Instruments :
When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques
including the Discounted Cash Flow model. The inputs
to these models are taken from observable markets
where possible, but where this is not feasible, a degree
of judgement is required in establishing fair values.
Judgements include considerations of inputs such as
liquidity risk, credit risk and volatility.
(iv) Income taxes :
Significant judgements are involved in estimating
budgeted profits for the purpose of paying advance tax,
determining the provision for income taxes, including
amount expected to be paid/recovered for uncertain
tax positions.
(v) Revenue from turnkey project :
The Company has recognised revenue and cost from
this project. Due to the nature of the project, recognition
of revenue and cost involves usage of percentage of
completion method which is determined based on
the progress towards complete satisfaction of that
performance obligation, which involves significant
judgments, identification of contractual obligations
and the Company's rights to receive payments for
performance completed till date.
(vi) Leases :
The Company considers all the extension-options under
the commercial contract for determining the lease-term
which forms the basis for the measurement of right-of-
use asset and the corresponding lease-liability.
(vii) Discount, Incentives & Rebates :
Revenue is measured net of discounts, incentives,
rebates etc. given to the customers on the
Company's sales. The Company's presence across
different marketing regions within the country and
the competitive business environment makes the
assessment of various type of discounts, incentives
and rebates as complex and judgmental.
4. 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.
1. In May 2025, MCA notified amendments to Ind AS 21 - The
Effects of Changes in Foreign Exchange Rates, applicable
w.e.f. April 1, 2025. The Company has reviewed the
amendment and based on its evaluation has determined
that it does not have any significant impact in its financial
statements.
In August 2025, MCA notified the following amendments to:
2. 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 to inform
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
reviewed the amendment and based on its evaluation has
determined that it does not have any significant impact in
its financial statements.
3. Ind AS 12, International Tax Reform - Pillar Two Model
Rules applicable immediately - The amendments provide a
temporary mandatory relief from deferred tax accounting
for top-up tax and disclose that they have applied the relief.
The Company has reviewed the amendment and based
on its evaluation has determined that it is not applicable
Ind AS that has been issued but is not yet effective:
1. Ind AS 1, Presentation of Financial Statements, effective from
April 1,2026, clarify the classification of liabilities as current
or non-current, including liabilities subject to covenants. The
amendments specify that classification is based on rights
existing at the reporting date, unaffected by management's
expectations, and that the right to defer settlement for at
least twelve months must exist and have substance as at
that date. They also require additional disclosures where
liabilities are subject to covenants to be complied with after
the reporting period. Based on its assessment, the Company
does not expect any material impact on the classification of
its liabilities
e. Terms and rights attached to equity shares
The Company has only one class of equity shares having a face value of Rs 10/- per share. Each shareholder is eligible for one
vote per share held. In case of liquidation, the equity shareholders are eligible to receive the remaining assets of the company
after distribution of all preferential amounts, in proportion to their shareholding.
f. The Company has not issued any bonus shares, neither the Company has bought back any of its shares, nor any shares have
been issued pursuant to contract without payment being received in cash during the five years immediately preceding the
balance sheet date
Notes: Nature and Purpose of Reserves
a) Capital Reserve : Capital Reserves are created during business combination on account of merger of Kenson Manufacture
Private Limited in the year ended 31st March, 2013
b) Capital Redemption Reserve : These reserves are created by way of buyback of shares by the Company in the year ended 31st
March, 2017. This reserve will be utilised in accordance with Section 69 of The Companies Act, 2013.
c) Securities Premium : These reserves represent premium on issue of shares and can be utilised in accordance with Section 52
of The Companies Act, 2013.
d) Retained Earnings: These reserves represents net profits earned after reducing all appropriations and transfers.
e) FVOCI-Equity Instruments: Equity instruments through OCI represents unrealised fair value gain(or) loss in investments
measured at FVOCI.
29.1: Effective November 21, 2025, the Government of India has consolidated multiple existing labour legislations into a unified
framework comprising four labour codes collectively referred to as " The New Labour Code". This has resulted in estimated
increase in provision for employee benefits of the Company amounting to Rs 27.40 million presented under Exceptional Items
for the year ended 31.03.2026. The Company will re-evaluate the impact of these Labour Codes upon notification of the rules,
corresponding State level regulations and further clarification/guidance in the matter and impact whereof, if any, will be
recognised thereafter
30.1 : Borrowing costs are capitalised using rates based on specific borrowing, at floating rate 7.77% - 7.98% p.a. linked to external
benchmark ( 7.77% - 7.98% p.a for the year ended 31st March, 2025)
30.2 : During the current year, as per para 6(e) of Ind AS 23 "Borrowing costs", the exchange differences arising from foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs are regrouped from other exchange
differences to finance costs.
30.3 : Finance cost for the year ended 31st March 2026 is net of interest subvention for the Bihar plant aggregating to Rs. 64.44
million(Rs. NIL for the year ended 31st March 2025).
32A Capital Management (Ind AS 1):
The Capital management objective of the Company is to:
i) maximise shareholder value and provide benefits to other stakeholders and,
ii) maintain an optimal capital structure to reduce the cost of capital.
The capital structure of the Company consists of issued capital, share premium and all other equity reserves attributable to
the equity holders. The Company's risk management committee reviews the capital structure of the company. The Company
monitors capital using debt-equity ratio, which is debt divided by equity.
32B Financial Risk Management Objectives (Ind AS 107)
The Company's principal financial liabilities, other than derivatives, comprises of borrowings, 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, investments and cash and cash equivalents that derive directly from its
operations.
The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's overall risk management focuses
on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance of the
Company. The company uses derivative financial instruments, such as foreign exchange forward contracts, cross currency
swaps that are entered to hedge foreign currency risk exposure and hedge interest rate exposure. Derivatives are used
exclusively for hedging purposes and not as trading or speculative instruments.
The Company has policies, procedures and authorisation matrix for utilisation of funds, which ensures deployment of fund in prudent
manner and the availability of funding through an adequate amount of credit facilities to meet obligation when due. The Company
on periodical basis reviews implementation and execution of above policies.
A. Market Risk
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, commodity prices, 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 borrowings.
1) Foreign Currency risk
Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which
fluctuate due to changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates
relates primarily to import of raw materials, capital expenditure and exports. When a derivative is entered for the purpose of
being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure.
The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows established
risk management policies and procedures. It uses derivative instruments like foreign currency forwards and cross currency
swaps to hedge exposure to foreign currency risk.
2) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the
Company's term loans and short term borrowing with floating interest rate. For foreign currency loan with floating rate, the risk
of variation in interest rate is mitigated through cross currency swap. The Company constantly monitors the credit markets
and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.
B. Credit Risk Management
Credit risk arises when a customer or counterparty does not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and
from its financing / investing activities, including deposits with banks, foreign exchange transactions and financial guarantees.
The Company has no significant concentration of credit risk with any counterparty.
Trade Receivable
Trade receivables are consisting of a large number of customers / distributors. The Company has credit evaluation policy for
each customer / distributor and based on the evaluation credit limit of each customer / distributor is defined.
Total trade receivable as on 31st March, 2026 Rs. 3,632.81 million (Rs. 4,229.41 million as on 31st March, 2025). There are no
customers which account for more than 10% of the Company's total revenue from operations for the year ended 31st March,
2026 and 31st March, 2025.
As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision
matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding
is for longer period and involves higher risk. The policy for creating provision for credit losses on trade receivables is as per
following provision matrix:-
Investments, Derivative Instruments, Cash and Cash Equivalent and Bank Deposit:
Credit Risk on cash and cash equivalent, deposits with the banks / financial institutions is generally low as the said deposits
have been made with the banks / financial institutions who have been assigned high credit rating by international and domestic
rating agencies.
Credit Risk on Derivative Instruments are generally low as Company enters into the Derivative Contracts with the reputed Banks
and Financial Institutions.
C. Liquidity Risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable
price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of credit facilities to meet obligations when due. In addition, processes and policies
related to such risks are overseen by senior management. Management monitors the Company's liquidity position through
rolling forecasts on the basis of expected cash flows.
The table below provides details regarding the remaining contractual maturities of financial liabilities and investments held for
managing the risk at the reporting date based on contractual undiscounted payments.
33 Fair Value measurements (Ind AS 113)
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in
an orderly transaction in the principal (or most advantageous) market at measurement date under the current market condition
regardless of whether that price is directly observable or estimated using other valuation techniques. The Company has
established the following fair value hierarchy that categorises the values into 3 levels. The inputs to valuation techniques used
to measure fair value of financial instruments are:
Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. The fair value of all
quoted investments which are traded in the stock exchanges is valued using the closing price or dealer quotations as at the
reporting date.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximize the use of observable market data and rely as little as possible on company specific estimates. Unquoted
investments are valued using the closing Net Asset Value. If all significant inputs required to fair value an instrument are
observable, the instrument is included in Level 2.
Level 3: Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part
using a valuation model based on assumptions that are neither supported by prices from observable current market transactions
in the same instrument nor are they based on available market data.
The management assessed that cash and bank balances, trade receivables, trade payables, cash credits and other financial assets
and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
The following methods and assumptions were used to estimate the fair values:
(a) The fair values of the quoted investments are based on market price/net asset value at the reporting date.
(b) The fair value of unquoted investments is based on closing Net Assets Value
(c) The fair value of forward foreign exchange contracts is calculated as the present value determined using forward exchange
rates and interest rate curve of the respective currencies.
(d) The fair value of the remaining financial instruments is determined using discounted cash flow analysis. The discount rates used
is based on management estimates.
34 Contingent Liability and Commitments not provided for in respect of :
The Company's pending litigations comprise of claims by or against the Company primarily by the workers/employees/
customers/ suppliers etc., and proceedings pending with tax and other government authorities. The Company has reviewed
its pending litigations and proceedings and has adequately provided for where Provisions are required and disclosed the
contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these
proceedings to have a materially adverse effect on its financial results. In respect of litigations, where the management
assessment of a financial outflow is probable, the Company has made adequate provision in the financial statements and
appropriate disclosure for contingent liabilities is given below:
ii) Guarantees
Guarantees given by Banks on behalf of the Company upto Rs. 35.65 million (Rs. 37.16 million as on 31st March, 2025).
iii) Commitments
Estimated amount of Contracts remaining to be executed on Capital account and not provided for are Rs. 598.32 million
(Rs. 1,231.23* million as on 31st March, 2025) and Other Commitments Rs. NIL (Rs. NIL as on 31st March, 2025)
*The Company had entered into an asset purchase agreement with Klaus Waren Fixtures Private Limited and its promoter for
the purchase of 'Aquel' brand alongwith other assets in two tranches. The above figure includes Rs. 204 million (PY Rs.430
million) towards capitalization of land and building, as the registration formalities were completed subsequent to the year-end.
iv) The Hon'ble Supreme Court of India ("SC") by their order dated February 28, 2019, in the case of Surya Roshani Limited & others
v/s EPFO, set out the principles based on which allowances paid to the employees should be identified for inclusion in basic
wages for the purposes of computation of Provident Fund contribution. Pending directions or clarification from the EPFO, the
quantification of impact, if any, is not ascertainable and consequently no effect has been given in the accounts.
35 Employee Benefits
The disclosures required under IND AS 19 " Employee Benefits" are given below :
A Defined Contribution Plans:
Amount recognized as an expense and included in Note 29 under the head "Contribution to Provident and other Funds" of
Statement of Profit and Loss Rs. 97.25 million (Rs. 116.71 million for the year ended 31st March, 2025).
B Defined Benefit Plans:
Gratuity:
The Company operates a defined benefit plan covering eligible employees, which provides a lump sum payment to vested
employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees
salary and the tenure of employment. The Gratuity scheme of the Company is funded for certain employees and non funded for
the remaining employees.
Compensated Absences :
The Company allows privilege leave and sick leave to its employees. Privilege leave and sick leave are accumulated and can
be availed during the period of employment or encashed in case of privilege leave at the time of resignation, retirement or
termination of employment.
xi) Expected rate of return on Plan Assets is based on expectation of the average long term rate of return expected on investments
of the fund during the estimated term of the obligations.
xii) The estimates of future salary increases are considered taking into account inflation, seniority, promotion and other relevant
factors.
xiii) Asset Liability matching strategy:
The money contributed by the Company to the Gratuity fund to finance the liabilities of the plan has to be invested for funded
gratuity plan. The Company has outsourced the investment management of the fund to an Insurance Company. The Insurance
Company in turn manages these funds as per the permissible limits prescribed in the insurance regulation. Due to the restriction
in the type of investment that can be held by the fund,it is not possible to explicitly follow an asset liability matching strategy.
There is no compulsion on the part of the Company to fully prefund the liability of the Plan.
xiv) The Company's expected contribution during next year is Rs. NIL (Rs. NIL as on 31st March, 2025).
38 The Company is primarily engaged in manufacturing and selling of pipes and Fittings and allied products in India. It comprises
of Pipes and Fittings, Bathware Sanitary and Faucet and allied products. As per Ind AS 108 "Operating Segments", specified
under Section 133 of the Companies Act, 2013, there are no reportable operating or geographical segments applicable to the
Company. Further, during the year as well as the previous year, Revenue from sale of products outside India is insignificant and
hence, separate disclosure is not given. No Single customer represents 10% or more of the Company's total Revenue for the year
ended 31st March 2026 and year ended 31st March 2025.
a. Revenue from manufacturing and trading activities
The Company is primarily engaged in manufacturing and selling of pipes and Fittings and allied products in India. It
comprises of Pipes and Fittings, Bathware Sanitary and Faucet and allied products. All sales are made at a point in time
and revenue from contract with customer are recognised when goods are dispatched and the control over the goods sold
are transferred to customers. The Company does not expect to have any contracts where the period between the transfer
of goods and payment by customer exceeds one year. Hence, the Company does not adjust revenue for the time value of
money.
In compliance with Ind AS 115, discounts and incentives provided to customers are treated as variable components of
consideration and have been recognised as revenue deductions instead of other expenses.
The state of Andhra Pradesh has assigned three Villages (Kandulavaripalle, Venkata Chalam & Aman Charla) to the
Company for under-ground Drainage system and similar projects in other states. The Company recognises revenue to the
extent of transaction price allocated to the performance obligation satisfied. The Company measures the progress using
the Output method and the satisfaction of performance obligation is measured based on the achievement of milestone as
per the terms of contract. Pending acknowledgement from the state of Andhra Pradesh, revenue to the extent of Rs. 19.50
million (Rs. 19.50 million for the year ended 31st March, 2025) (gross) is not recognised and corresponding cost incurred
is carried forward under contract assets.
44.1 : Nature of CSR Activities - The Company's CSR activities are focused on healthcare and community well-being through
medical camps, infrastructure, and awareness programmes; education and skill development via foundational learning,
scholarships, and sports facilities; environmental sustainability and rural development through plantation drives, solar-
powered water projects, and infrastructure enhancement. Additional initiatives supported animal welfare, cultural heritage
preservation, and community infrastructure for senior citizens and seekers.
44.2 : It includes Rs. NIL million (Rs. 15.00 million as on 31st March, 2025) of Corporate Social Responsibility unspent expense
related to ongoing projects as at 31st March, 2026. The same was transferred to a special designated account before the end
of the financial year.
45 The Board of Directors of the Company at its meeting held on 19.05.2026 have recommended a final dividend of Rs 1.00 per
share of face value of Rs 10/- each for the year ended 31.03.2026 which is subject to shareholders approval in ensuing annual
general meeting.
46 The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending
against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
Rules made thereunder.
47 Details of Crypto currency or Virtual currency
The Company is not engaged in the business of trading or investing in crypto currency or virtual currency and hence no
disclosure is required.
48 Compliance with number of layers of companies
The Company does not have any subsidiary company accordingly compliance with the number of layers prescribed under
clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 does not arise.
49 Utilisation of borrowed funds
The Company has not advanced any funds or loaned or invested by the Company to or in any other person(s) or entities,
including foreign entities ("Intermediaries"), with the understanding that the intermediary shall whether directly or indirectly lend
or invest in other persons or entities identified in any manner by or on behalf of the Company (Ultimate Beneficiaries) or provide
any guarantee, security or the like on behalf of ultimate beneficiaries.
The Company has not received any funds from any person(s) or entities including foreign entities ("Funding Parties") with the
understanding that such Company shall whether, directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or provide guarantee, security or the like on
behalf of the Ultimate beneficiaries.
50 Relationship with struck off companies
The Company does not have any transaction with companies struck off under section 248 of Companies Act, 2013 or section
560 of Companies Act, 1956 and hence no disclosure is required.
51 Compliance with approved Scheme(s) of Arrangements
The Company has not entered into any scheme of arrangements in terms of sections 230 to 237 of the Companies Act, 2013.
52 Wilful defaulter
As on 31st March, 2026 the Company has not been declared wilful defaulter by any bank/financial institution or other lender.
53 The Company has used accounting software(i.e. ERP)for maintaining its books of account, which have afeature of recording
audit trail (edit log) facility and the same has operated throughout the year for all transactions recorded in the software
including critical fields of non-transactional activities at data base level for which a feature of recording audit trail (edit
log) facility was enabled during the year.
Further, the audit trail has been preserved by the Company as per the statutory requirements for record retention and in
case of non-transactional activities at database level for which a feature of recording audit trail (edit log) was enabled
during the current year.
54 Ratios
The following are analytical ratios for the year ended 31st March, 2026 and 31st March, 2025
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