P) Provisions and Contingent liabilities
Provisions for legal claims, service warranties, volume discounts
and returns 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.
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.
A contingent liability is 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 recognised 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 recognised because it cannot
be measured reliably. The Company does not recognise a
contingent liability but disclose its existence in the financial
statements unless the probability of outflow of resource is
remote.
Q) Other Operating Revenues
i) Government Grant
Grants from the government are recognised at their fair
value where there is a reasonable assurance that the grant
will be received and the Company will comply with all
attached conditions.
Government grants relating to income are deferred and
recognised in the profit or loss over the period necessary
to match them with the costs that they are intended to
compensate and presented within other income.
Government grants relating to the purchase of property,
plant and equipment are included in non-current liabilities
as deferred income and are credited to profit or loss on a
straight-line basis over the expected lives of the related
assets and presented within other income.
ii) Export Benefit
Revenue from export benefits arising from Duty
entitlement pass book (DEPB scheme), duty drawback
scheme, merchandise export incentive scheme are
recognised on export of goods in accordance with their
respective underlying scheme at fair value of consideration
received or receivable.
R) Segment Reporting
Operating segments are reported in a manner consistent
with the internal reporting provided to the Chief operating
decision maker (CODM). CODM monitors the operating results
of all strategic business units separately for the purpose of
making decisions about resource allocation and performance
assessment. Segment performance is evaluated based on profit
and loss and is measured consistently with profit and loss in the
financial statements.
S) Contributed equity
Equity shares are classified as equity.
Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of
tax, from the proceeds.
T) Dividends
Provision is made for the 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.
U) Cash and Cash Equivalents
For the purpose of presentation in the Statement of Cash flows,
Cash and Cash equivalents includes cash on hand, deposits held
at call, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible
to known amounts of cash and which are subject to an
insignificant risk of changes in value, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities in
the Balance Sheet.
V) Offsetting financial instruments
Financial assets and financial liabilities are offset and the net
amount is reported in the Balance Sheet where there is a legally
enforceable right to offset the recognised amounts and there is
an intention to settle on a net basis or realise the asset and settle
the liability simultaneously. The legally enforceable right must
not be contingent on future events and must be enforceable
in the normal course of business and in the event of default,
insolvency or bankruptcy of the Company or the counterparty.
W) Rounding of amounts
All amounts disclosed in the financial statements and notes have
been rounded off to the nearest lakhs as per the requirement of
Schedule III, unless otherwise stated.
X) Changes in significant accounting policies
The Company has not been required to apply any new standard,
interpretation or amendment that has been issued and
therefore there were no significant changes in the accounting
policies.
Y) Significant Accounting Judgement estimest & assumptions.
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. Uncertainty
about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying
amount of the assets or liabilities affected in future periods.
Judgements, Estimates and assumptions
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 beyond
the control of the Company. Such changes are reflected in the
assumptions when they occur.
a) Defined benefit plan-Gratuity
The cost of defined benefit plans (i.e. Gratuity benefit) is
determined using actuarial valuations. An actuarial valuation
involves making various assumptions which may differ
from actual developments in the future. These include the
determination of the discount rate, future salary increases,
mortality rates and future pension increases. Due to the
complexity of the valuation, the underlying assumptions 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. In determining the appropriate discount
rate, management considers the interest rates of long term
government bonds with extrapolated maturity corresponding
to the expected duration of the defined benefit obligation. The
mortality rate is based on publicly available mortality tables
for the specific countries. Future salary increases and pension
increases are based on expected future inflation rates for the
respective countries. Further details about the assumptions
used, including a sensitivity analysis, are given in Note 40.
b) Impairment of Financial assets
The impairment provisions of financial assets are based on
assumptions about risk of default and expected loss rates. The
Company uses judgement in making these assumptions and
selecting the inputs to the impairment calculation, based on
Company's past history, existing market conditions as well as
forward looking estimates at the end of each reporting period.
c) Warranty provision
Warranty Provisions are measured at discounted present value
using pre-tax discount rate that reflects the current market
assessments of the time value of money and the risks specific
to the liability. Warranty provisions is determined based on
the historical percentage of warranty expense to sales for the
same types of goods for which the warranty is currently being
determined. The same percentage to the sales is applied for the
current accounting period to derive the warranty expense to
be accrued. It is adjusted to account for unusual factors related
to the goods that were sold, such as defective inventory lying
at the depots. It is very unlikely that actual warranty claims
will exactly match the historical warranty percentage, so such
estimates are reviewed annually for any material changes in
assumptions and likelihood of occurrence.
d) Depreciation/amortisation and useful lives of property plant
and equipment/intangible assets
Property, plant and equipment / Intangible assets are
depreciated /amortised over their estimated useful lives, after
taking into account estimated residual values. Management
reviews the estimated useful lives and residual values of
the assets annually in order to determine the amount of
depreciation / amortisation to be recorded during any
reporting period. The useful lives and residual values are based
on the Company's historical experience with similar assets
and take into account anticipated technological changes. The
depreciation/amortisation for future period is revised if there
are significant changes from previous estimates.
e) Events occurring after Balance Sheet date
The Company evaluates events and transactions that occur
subsequent to the balance sheet date but prior to approval
of the financial statements to determine the necessity for
recognition and/or reporting of any of these events and
transactions in the financial statements. As of date, there are
no subsequent events to be recognized or reported that are not
already disclosed.
f) Provisions
Provisions and liabilities are recognised in the period when it
becomes probable that there will be a future outflow of funds
resulting from past operations or events and the amount of cash
outflow can be reliably estimated. The timing of recognition
and quantification of the liability requires the application of
judgment to existing facts and circumstances, which can be
subject to change. The carrying amounts of provisions and
liabilities are reviewed regularly and revised to take account of
changing facts and circumstances..
Secured term loan
The part of outstanding term loan (including current maturity of long term borrowings as per note 22) amounting to Rs. 10.94 crores is
secured by way of first pari-passu charge over immovable properties of the Company with working capital lenders and also first charge on
movable fixed assets financed by term lenders with FACR of 1.33 and second pari-passu charge on entire current assets of the Company
AND part of term loan (including current maturity of long term borrowings as per note 22) amounting to Rs. 56.71 crores is secured by way
of first pari-passu charge over entire current assets of the Company both present and future with working capital lenders and collaterally
secured by way of 1st pari-passu charge on entire fixed assets of the Company excluding movable fixed assets financed by term lenders,
the outstanding of which is 10.94 crores as mentioned above with FACR of 1.33 and also secured by way of 1st pari-passu charge equitable
mortgage on land and building with working capital lenders and term lenders of Rs 10.94 crores as mentioned above and 2nd pari-passu
charge on fixed assets financed by term lenders of Rs. 10.94 crores and also secured by way of personal guarantee of three promoter
directors on entire term loans.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market (for example foreign exchange forward contracts) 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 transfer of levels during the year.
As of 31st March 2025, 31st March 2024, the fair value of cash and bank balances, trade receivables, other current financial assets and
liabilities, borrowings, trade payables approximate their carrying amount largely due to the short term nature of these instruments. For other
financial assets and liabilities that are measured at amortised cost, the carrying amounts approximate the fair value.
36 Financial risk management
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these
financial liabilities is to provide finance to the Company to support its operations. The Company's principal financial assets include
loans, trade and other receivables, and cash and short-term deposits that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management
of these risks. The Company's senior management ensures that the Company's financial risk activities are governed by appropriate
policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and
risk objectives.
(A) Credit risk
Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the
credit risk at the reporting date is primarily from trade receivables. Trade receivables are typically unsecured and are derived from revenue
earned through government customers and other corporate customers. The Company has used the expected credit loss model to assess the
impairment loss or gain on trade receivables and unbilled revenue, and has provided it wherever appropriate. The following table gives the
movement in allowance for expected credit loss for the year ended 31 March, 2025:
(B) 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. The Company's
objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its
liquidity position and maintains adequate source of financing through the use of short term bank deposits and cash credit facility. Processes and
policies related to such risks are overseen by senior management.
(i) Maturities of financial liabilities
The table below provides details regarding the contractual maturities of significant financial liabilities:
(C) 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 prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and
commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits, investments and foreign
currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at 31st March 2025. The
analyses exclude the impact of movements in market variables on: the carrying values of gratuity, pension obligation and other post¬
retirement obligations; provisions; and the nonfinancial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the
effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of 31st
March 2025.
(i) 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 short term debt obligation
at floating interest rates.The Company's borrowings outstanding as at March 31,2025 comprises of floating rate loans and accordingly,
are expose to risk of fluctuation in market interest rate.
Sensitivity
Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates.
Sensitivity
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjust their translation for the period
end for 1% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the Rupees 1%
against the relevant currency. For a 1% weakening of the Rs. against relevant currency, there would be a comparable impact on the profits
or equity, and the balances below would be negative.
37 Capital management
(a) Risk management
For the purposes of the Company's capital management, Capital includes equity attributable to the equity holders of the Company and all
other equity reserves. The primary objective of the Company's capital management is to ensure that it maintains an efficient capital structure
and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were
made in the objectives, policies or processes for managing capital during the year ended 31st March 2025, 31st March 2024.
The Company monitors capital using net debt to equity ratio, which is net debt (as reduced by Cash and Cash Equivalent) divided by total
equity.
38 Leases
The Company's lease asset classes primarily consist of leases for buildings and plant & machineries. The Company assesses whether a
contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of
an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of
an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially
all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the
asset.
At the date of commencement of the lease, the Company recognises a right-of-use asset (“ROU”) and a corresponding lease liability for
all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases), variable lease and
low value leases. For these short-term, variable lease and low value leases, the Company recognises the lease payments as an operating
expense on a straight-line basis over the term of the lease.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful
life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that
their carrying value may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value
less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which
the asset belongs.
The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of
domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company
changes its assessment if whether it will exercise an extension or a termination option.
Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing
cash flows. Lease liabilities have been included in other financial liabilities. The Company has used a single discount rate to a portfolio of
leases with similar characteristics
(i) Following is carrying value of right of use assets recognised on date of transition and the movements thereof during the year ended March
31, 2025.
vii) The average duration of the defined benefit plan obligation at the end of the reporting period is 13.32 years (31st March 2024: 11
years)
viii) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority, promotion
and other relevant factors including supply and demand in the employment market. The above information is as certified by the Actuary.
ix) The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as
a result of reasonable changes in key assumptions occurring at the end of the reporting period.
x) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated
term of the obligations.
41 Segment Reporting
a) The segment reporting of the Company has been prepared in accordance with Ind AS-108, “Operating Segment” (specified under
section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2015). For management purposes, the
company is organised into business units based on its products and services and has identified two reportable segments viz Metering,
Systems & Services and Consumer, Industrial & Services on the basis of the nature of products, the risk return profile of individual
business and the internal business reporting systems.
b) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue
and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as
“Unallocated”.
c) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investment, tax related assets and other
assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocated”
* Net Profit after taxes Non-cash operating expenses Interest Other non-cash adjustments
** Net Worth Total borrowings Deferred tax liabilities - Deferred Tax Assets
Note : Explanation for change in ratio by more than 25%
(i) Return on equity ratio, ROCE and Net profit ratio are improved due to growth in revenue with stable margins.
(ii) Debt service coverato ratio improved due to growth in profitability of company.
47 Additional regulatory information required by Schedule III of Companies Act, 2013
(I) Details of Benami property: No proceedings have been initiated or are pending against the Company for holding any Benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
(II) Utilisation of borrowed funds and share premium: The Company has not advanced or loaned or invested funds to any other
person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(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 has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:”
(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
(III) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under the
Companies Act, 2013.
(IV) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which
has an accounting impact on current or previous financial year.
(V) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
(VI) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency
during the current or previous year.
(VII) Valuation of PP&E, intangible asset and investment property: The Company has not revalued its property, plant and equipment
(including right-of-use assets) or intangible assets or both during the current or previous year.
(VIII) The company has not granted any loans or advances in the nature of loans either repayable on demand
48 Previous year's figure have been regrouped/ re-arranged, wherever considered necessary to make them comparable with corresponding
year ending 31st March, 2025.
For and on behalf of the Board
As per our report of even date attached Rishi Seth Gautam Seth
For Sakshi & Associates Managing Director Joint MD and CFO
Chartered Accountants DIN- 00203469 DIN- 00203405
F.R.N. : 025099N
Sakshi Kharabanda Lalit Seth Vivek Kumar
Proprietor Director Company Secretary
M.No. : 523802 DIN-00312007 M.No. A18491
UDIN : 25523802BMKTYH4438
Place : New Delhi Place :Kundli
Dated : 22 May, 2025
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