0. Provisions and Contingencies:
1. Provisions
Provisions for legal claims, product warranties and make
good obligations are recognised when the Company has
a present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources will
be required to settle the obligation and the amount can be
reliably estimated. Provisions are not recognised for future
operating losses.
Where there are a number of similar obligations, the likelihood
that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow with respect to
any one item included in the same class of obligations may
be small.
Long-term provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money.
Short term provisions are carried at their redemption value
and are not offset against receivables from reimbursements.
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.
ii. Contingent Liabilities
Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises
from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.
iii. Contingent Assets
Contingent Assets are not recognised but are disclosed in the
notes to the financial statements.
P. Earnings per Share:
i. Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the Company,
excluding any costs of servicing equity other than
ordinary shares.
- by the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the year.
ii. Diluted earnings per share
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to take into
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 ordinary
shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.
Q. Segment reporting:
Operating segments are reported in a manner consistent
with the internal reporting to the Chief Operating Decision
Maker "CODM" of the Company. The CODM is responsible
for allocating resources and assessing performance of
the operating segment. The Company has monthly review
and forecasting procedure in place and CODM reviews the
operations of the Company as a whole.
R. Exceptional items:
Certain occasions, the size, type or incidence of an item of
income or expense, pertaining to the ordinary activities
of the Company is such that its disclosure improves the
understanding of the performance of the Company, such
income or expense is classified as an exceptional item and
accordingly, disclosed in the notes accompanying to the
financial statements.
2.2 RECENT PRONOUNCEMENTS
Ministry of Corporate Affairs (“MCA”) notifies new
amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time
to time. For the year ended March 31, 2026, MCA has
notified amendments to Ind AS 21-The Effects of Changes
in Foreign Exchange Rates, Ind AS 1-Presentation of
Financial Statements, Ind AS 7-Statement of Cash Flows,
Ind AS 107-Financial Instruments: Disclosures and Ind AS
12, International Tax Reform - Pillar Two Model Rules. The
Company has reviewed the new pronouncements and based
on its evaluation given necessary impact (including additional
disclosures) as applicable.
i) The Board of Directors in its meeting held on 21st April, 2025, recommended the issue of Bonus Equity Share, in the
proportion of 2:1, i.e. 1 (One) bonus Equity Share of ' 10/- (Rupees Ten only) each for every 2 (Two) fully paid-up Equity
Shares of ' 10/- (Rupees Ten only) each held by the Members of the Company. The said bonus issue was approved by the
shareholders of the Company dated 22nd May, 2025.
(d) Terms & Rights attached to each class of shares
The Company has only one class of equity shares having par value of ' 10 per share. Each holder of equity shares is entitled
to one vote per share. In the event of the liquidation of the Company, the holders of equity shares will be entitled to receive
remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.
31. EARNINGS PER SHARE (EPS)
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the
weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted
average number of Equity shares outstanding during the year.
32. DISCLOSURE AS REQUIRED UNDER IND AS 19-EMPLOYEE BENEFITS[A] Defined contribution plans:
The Company makes contributions towards provident fund to defined contribution retirement benefit plan for qualifying
employees. The provident fund contributions are made to Government administered Employees Provident Fund. Both the
employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the
covered employee's salary.
The Company recognised ' 56.95 Lakhs (P.Y: ' 43.50 Lakhs ) for provident fund contributions in the Statement of Profit and
Loss.
[B] Defined benefit plan:
The Company makes annual contributions to Shilchar Technologies Limited Employees' Gratuity Fund managed by LIC, a
funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:
i) On normal retirement/early retirement/withdrawal/resignation: As per the provisions of Payment of Gratuity Act, 1972
with vesting period of 5 years of service.
ii) On death in service: As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.
The following table sets out the status of the gratuity plan and the amounts recognised in the Company's financial statements
as at 31st March, 2026.
Notes:
(i) The Company has received a demand order Under CGST Act, 2017. Based on Company assessment,
the Company believes it has a strong case on merits and does not expect any material impact on its
financial position. Accordingly, The Company is in the process to challenge the said Order before the First
Appellate Authority because it believes the entire demand is erroneous under the relevant provisions of the Act.
(ii) Amount as per demand orders including interest and penalty, wherever indicated in the order.
35. DISCLOSURE PURSUANT LEASES
As Lessor:
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received
after the reporting date.
38. CORPORATE SOCIAL RESPONSIBILITY (CSR)
As per Section 135 of the Companies Act , 2013 , a CSR committee has been formed by the Company. The areas for CSR
activities are promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development
projects as specified in Schedule VII of the Companies Act, 2013.The details of amount required to be spent and actual
expenses spent during the year is as under:
45. BORROWINGS SECURED AGAINST
CURRENT ASSETS
The Company has borrowings from banks secured against
Current Assets and quarterly returns filed with the banks are
in agreement with the books.
46. OTHER STATUTORY INFORMATION
a) The Company do not have any Benami property, where
any proceeding has been initiated or pending against
the Company for holding any Benami property.
b) The Company do not have any transactions with struck
off companies.
c) The Company do not have any charges or satisfaction
which is yet to be registered with ROC beyond the
statutory period.
d) The Company have not traded or invested in Crypto
currency or Virtual Currency during the year.
e) 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:
(i) directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever
by or on behalf of the Company (Ultimate
Beneficiaries); or
(ii) provide any guarantee, security or the like to or on
behalf of the Ultimate Beneficiaries.
f) The Company 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:
(i) directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate
Beneficiaries); or
(ii) provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
g) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961.
h) There are no Scheme of Arrangements that has been approved by the Competent Authority in terms of Sections 230 to
237 of the Companies Act, 2013.
(i) Fair value hierarchy
This section explains the judgments and estimates made in determining the fair values of the financial instruments that are
(a) recognized and measured at fair value. To provide an indication about the reliability of the inputs used in determining fair
value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An
explanation of each level follows underneath the table.
Level 1: Level 1 hierarchy includes financial instruments
measured using quoted prices. This includes mutual funds
that have quoted price. The mutual funds are valued using
the closing NAV.
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 entity-specific estimates.
If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on
observable market data, the instrument is included in level 3.
There are no transfers between levels 1 and 2 during the
year.
The Company's policy is to recognise transfers into and
transfers out of fair value hierarchy levels at the end of the
reporting period.
(ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial
instruments include:
- the use of quoted market prices or dealer quotes for
similar instruments.
- the fair value of the remaining financial instruments is
determined using discounted analysis (if any).
48.FINANCIAL RISK MANAGEMENT
The Company's Board of Directors has overall responsibility
for the establishment and oversight of the Company's risk
management framework.
The Company's risk management policies are established to
identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks. Risk
management policies and systems are reviewed regularly
to reflect changes in market conditions and the Company's
activities.
(A) Credit risk
Credit risk is the risk of incurring a loss that may arise from
a borrower or debtor failing to make required payments.
Credit risk arises mainly from outstanding receivables from
free market dealers, cash and cash equivalents, employee
advances and security deposits. The Company manages
and analyses the credit risk for each of its new clients before
standard payment and delivery terms and conditions are
offered.
(i) Credit risk management
The Company's exposure to credit risk is influenced mainly
by the individual characteristics of each customer. The
demographics of the customer and including the default risk
of the industry, 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 considers the probability of default upon initial
recognition of asset and whether there has been a significant
increase in credit risk on an ongoing basis through each
reporting period. To assess whether there is a significant
increase in credit risk the Company compares the risk of
default occurring on asset as at the reporting date with the
risk of default as at the date of initial recognition. It considers
reasonable and supportive forwarding-looking information
such as:
i) Actual or expected significant adverse changes in
business;
ii) Actual or expected significant changes in the operating
results of the counterparty;
iii) Financial or economic conditions that are expected to
cause a significant change to the counterparty's ability
to meet its obligations;
iv) Significant increase in credit risk on other financial
instruments of the same counterparty;
v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees
or credit enhancements.
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a
repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in
enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in
the statement of profit and loss.
For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instrument, which
requires expected lifetime losses to be recognized from initial recognition of the receivables. When determining whether the
credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit Losses
(ECL), the Company considers reasonable and relevant information that is available without undue cost or effort. This includes
both quantitative and qualitative information and analysis, based on the Company's historical experience and informed credit
assessment and including forward looking information.
(B) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The responsibility for liquidity risk management rests
with the board of directors, which has established an appropriate liquidity risk management framework for the management
of the Company's short-term, medium-term and long-term funding and liquidity management requirements. The Company
manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously
monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
(C) Market risk
(i) Foreign currency risk
Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will
affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is
to manage and control market risk exposures within acceptable parameters, while optimising the return.
The risk is measured through a forecast of foreign currency for the Company's operations.
The Company's exposure to foreign currency risk at the end of the reporting period expressed in Indian Rupee, are as follows:
49. CAPITAL MANAGEMENT
Risk management
For the purpose of the company's capital management,
equity includes equity share capital and all other equity
reserves attributable to the equity holders of the Company.
The Company manages its capital to optimise returns to
the shareholders and makes adjustments to it in light of
changes in economic conditions or its business requirements.
The Company's objectives are to safeguard continuity,
maintain a strong credit rating and healthy capital ratios in
order to support its business and provide adequate return
to shareholders through continuing growth and maximise
the shareholders value. The Company funds its operation
through internal accruals. The management and Board of
Directors monitor the return on capital as well as the level of
dividends to shareholders.
50. IMPACT OF INTRODUCTION OF NEW
LABOUR CODES
On November 21, 2025, the Government of India notified
the four Labour Codes-the Code on Wages, 2019, the
Industrial Relations Code, 2020, the Code on Social Security,
2020, and the Occupational Safety, Health and Working
Conditions Code, 2020-consolidating 29 existing labour
laws. The Ministry of Labour & Employment published draft
Rules and FAQs to enable assessment of the financial impact
due to changes in regulations. The Company has assessed
the impact of the changes, consistent with the Labour Codes,
draft rules and FAQs.
Considering the regulatory-driven nature of this impact, the
Company has presented such incremental impact of ' 60.54
Lakhs in the Statement of profit and loss for the year ended
on March 31, 2026. The Company continues to monitor the finalisation of Central/State Rules and clarifications from the
Government on other aspects of the Labour Code and would provide appropriate accounting effect as appropriate.
51. EVENT AFTER REPORTING PERIOD
The Board of Director recommended final dividend of ' 12.50 per equity share for the financial year ended on 31st March,
2026. The payment is subject to approval of share holder in ensuing Annual General Meeting of the Company. (Previous year
' 12.50 per equity share).
52 These Financial Statements were authorised for issue in accordance with the resolution of the Board of Directors in its
meeting held on 5th May, 2026.
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