P) Provisions, contingent liabilities, and contingent assets
A provision is recognised when there is a present obligation (legal or constructive) as a result of a past event
that probably requires an outflow of resources and a reliable estimate can be made of the amount of the
obligation. It the effect of the time value of money is material, provisions are discounted to reflect its present
value using a current pre-tax rate that reflects the current market assessments of the time value of money and
the risks specific to the obligation.
When discounting is used, the increase in the provision due to the passage of lime Is recognized as a finance
cost. Each provision is based on the best estimate of the expenditure required to settle the present obligation at
the balance sheet date.
Contingent liabilities arc 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. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
Contingent assets are generally not recognized but are disclosed when inflow of economic benefit is probable.
Provisions, Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
Q) Income taxes
Tax expense for the year comprises current tax and deferred tax. The tax currently payable is based on taxable
profit for the year.
Taxable profit differs from net profit as reported in the statement of profit and loss because it excludes items of
income or expense that are taxable or deductible in other years and it further excludes items that are never
taxable or deductible. The Company's liability for current tax is calculated using tax rates and tax laws that
have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is the tax expected to be payable or recoverable on temporary differences between the carrying
values of assets and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit and is accounted for using liability method. Deferred tax liabilities are generally
recognised for all taxable temporary differences. In contrast, deferred tax assets are only recognised to the extent
that it is probable that future taxable profits will be available against which the temporary differences can be
utilised.
The carrying value of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will bo available to allow all or part of the asset
to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or
the asset is realised based on the tax rates and tax laws that have been enacted or substantially enacted by the
end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences
that would follow from the manner in which the Company expects, at the end of the reporting period, to cover
or settle the carrying value of its assets and liabilities.
Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority
and there are legally enforceable rights to set off current tax assets and current tax liabilities within that
jurisdiction and there is an intention to settle the asset & liability on a net basis.
Current and deferred tax are recognised as an expense or income in the statement of profit and loss, except
when they relate to items credited or debited either in other comprehensive income or directly in equity, in
which case tax is also recognized in other comprehensive income or directly in equity.
R) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity
shareholders of the Company by the weighted average number of the equity shares outstanding during the
year. For the purpose of calculating diluted earnings per share, net profit or loss for the year attributable to
equity shareholders of the Company and the weighted average number of equity shares outstanding during
the year are adjusted for the effect of all dilutive potential equity shares.
S) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets and liabilities are initially measured at fair value.
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 and loss) are added to
or deducted from the fair value measured on initial recognition of financial asset or financial liability. The
transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value
through profit and loss are immediately recognised in the statement of profit and loss.
Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference
between the fair value and the transaction price is recognized as a gain or loss in the Statement of Profit and
Loss, unless it qualifies to recognized otherwise. However, trade receivables that do not contain a significant
financing component are measured at Transaction price.
(a) Financial assets
a. (i) Classification:
The Company classifies its financial assets in the following measurement categories:
i. those to be measured subsequently at fair value (either through other comprehensive
income, or through profit or loss), and
ii. those measured at amortised cost
The classification depends on the entity's business model for managing the financial assets and the contractual
terms of the cash flows
i. Financial assets at amortized cost
Financial assets are subsequently measured at amortised cost if these financial assets are held within a business
model whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms
of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
The effective interest method is a method of calculating the amortised cost of a financial instrument and of
allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly
discounts future cash receipts or payments through the expected life of the financial instrument, or where
appropriate, a shorter period.
ii. Financial assets measured at fair value
Fair Value through other comprehensive income (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if these financial assets are
held within a business model whose objective is to hold these assets in order to collect contractual cash flows
or to sell these financial assets and 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.
Financial assets included within the FVTOCI category are measured initially as well as at each reporting date
at fair value. Fair value movements are recognised in the OCT. However, the Company recognises interest
income, impairment losses and reversals and foreign exchange gain or loss in the statement of profit and loss.
On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified to the
statement of profit and loss. Interest earned while holding a FVTOCI instrument is reported as interest income
using the effective interest rate method.
The Company in respect of equity investments (other than in subsidiaries, associates and joint ventures) which
are not held for trading has made an irrevocable election to present in other comprehensive income subsequent
changes in the fair value of such equity instruments. Such an election is made by the Company on an instrument
by instrument basis at the time of initial recognition of such equity investments.
Fair value through the statement of profit and loss (FVTPL)
Financial asset not measured at amortised cost or at fair value through other comprehensive income is carried
at fair value through the statement of profit and loss. Fair value changes are recognized in the Statement of
Profit & Loss at each reporting period.
iii. Cash and bank balances
Cash and bank balances consist of:
(i) Cash and cash equivalents - which includes cash in hand, deposits held at call with banks and other short
term deposits which are readily convertible into known amounts of cash, are subject to an insignificant risk of
change in value and have maturities of less than one year from the date of such deposits. These balances with
banks are unrestricted for withdrawal and usage.
(ii) Other bank balances - which includes balances and deposits with banks that are restricted for withdrawal
and usage.
iv. Impairment of financial assets:
The Company recognizes loss allowances using the expected credit loss (HCL) model for the financial assets
and unbilled revenues which arc not fair valued through profit or loss.
The Company recognises life time expected credit losses for all trade receivables and unbilled revenues that do
not constitute a financing transaction. For all other financial assets whose credit risk has not significantly-
increased since initial recognition, loss allowance equal to twelve months expected credit losses is recognised.
Loss allowance equal to the lifetime expected credit losses is recognised if the credit risk on the financial
instruments has significantly increased since initial recognition. The Impairment losses and reversals are
recognized in the Statement of Profit & Loss.
v. De-recognition of financial assets
The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to
another entity. 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 assets 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 recognizes a collateralised borrowing for the proceeds received. On de-recognition of a Financial Asset
(except for Financial Assets measured at FVTOCI), the difference between the carrying amount and the
consideration received is recognized in the Statement of Profit & Loss.
(b) Financial liabilities and equity instruments
Classification as debt or equity Financial liabilities and equity instruments issued by the Company are classified
according to the substance of the contractual arrangements entered into and the definitions of a financial
liability and an equity instrument.
Lquity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Financial Liabilities
Other payables are initially measured at fair value, net of transaction costs, and are subsequently measured at
amortised cost, using the effective interest rate method where the time value of money is significant. Interest
bearing bank loans, overdrafts and issued debt are initially measured at fair value and are subsequently
measured at amortised cost using the effective interest rate method. Any difference between the proceeds (net
of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the
borrowings in the statement of profit and loss.
De-recognition of financial liabilities
The Company de-recognises financial liabilities when, and only when, the Company's obligations are
discharged, cancelled or they expire. The differences between the carrying amount of the financial liability-
derecognized and the consideration paid is recognized in the Statement of Profit & Loss.
Derivative financial instruments
The Company engages in forward contracts primarily to mitigate risks arising from fluctuations in foreign
currency related to its existing financial assets and liabilities, specific commitments, and anticipated
transactions. These derivative contracts are used exclusively for hedging purposes and are not employed for
trading or speculative activities.
In its hedging strategy, the Company designates certain instruments, including derivatives and, in some cases,
non-derivative financial instruments related to foreign currency risk, as fair value hedges. For hedges involving
foreign exchange risk on commitments, the Company also applies fair value hedge accounting.
Under fair value hedge, any changes in the fair value of the designated portion of the hedging instruments that
qualify are recognized immediately in the profit or loss statement. This is done in conjunction with the
recognition of any changes in the fair value of the hedged asset or liability attributable to the hedged risk.
Derivatives are initially recognized and measured at fair value from the date the derivative contract is entered
into. Subsequently, they are re-measured at their fair value at the end of each reporting period.
T) Investment in Joint Ventures & associates
A joint venture is a joint arrangement whereby the parties have the joint control of the arrangement and have
rights to the net assets to joint arrangement. Joint control is contractually agreed sharing of control of an
arrangement which exists only when decisions about the relevant activity require unanimous consent of the
parties sharing control. Investment in joint ventures are carried at cost less accumulated impairment, if any.
Where an indication of impairment exists, the carrying amount of the investment is assessed and written down
immediately to its recoverable amount. On disposal of investments in joint venture, the difference between net
disposal proceeds and the carrying amounts are recognized in the Statement of Profit and I oss.
An associate is an entity over which the investor has significant influence. Investment in associates are carried
at Transaction price.
LI) Non-current assets held for sale and discontinued operations
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use and a sale is considered highly
probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for
assets such as deferred tax assets, assets arising from employee benefits, financial assets and contractual rights
under insurance contracts, which are specifically exempt from this requirement.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to
fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an
asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or
loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised
at the date of de-recognition.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while
they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group
classified as held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are
presented separately from the other assets in the balance sheet. I he liabilities of a disposal group classified as
held for sale arc presented separately from other liabilities in the balance sheet.
A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale
and that represents a separate major line of business or geographical area of operations, is part of a single co¬
ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively
with a view to resale. The results of discontinued operations are presented separately in the statement of profit
and loss.
VO Business Combinations
Business Combinations are accounted for using the acquisition method of accounting, except for common
control transactions which are accounted using the pooling of interest method that is accounted at carrying
values. The cost of an acquisition is measured at the fair value of the assets transferred, equity instruments
issued and liabilities assumed at their acquisition date i.e. the date on which control is acquired.
Goodwill arising on business combination is initially measured at cost, being the excess of the aggregate of the
consideration transferred and the amount recognised for noncontrolling interests, and any previous interest
held, over the fair value of net identifiable assets acquired and liabilities assumed. After initial recognition,
Goodwill is tested for impairment annually and measured at cost less any accumulated impairment losses if
any.
W) Segment Reporting
Operating Segments are reported in a manner consistent with the information reported to the Chief Operating
Decision Maker (CODM) for the purpose of resource allocation and assessment of segment performance based
on product and services.
4. RECENT ACCOUNTING PRONOUNCEMENTS
Ministry of Corporate Affairs ("MCA") has notified amendments to the existing standards Ind AS 1 -
Presentation of financial statements relating to classification of liabilities as current or non-current subject to
covenants, Ind AS 12 - Income Taxes relating to international tax reforms - Pillar Two Model Rules, lnd AS 21
- the effect of changes in foreign exchange rates and Ind AS 107 - Financial Instruments: Disclosures and lnd
AS 7 - Statement of Cashflows relating to disclosure of supplier financing arrangements, applicable from April
1,2025. The Company has assessed that there is no significant impact on its financial statements with respect to
the amendments in Ind AS 1, Ind AS 21 and Ind AS 12.
Definition for Other Equity
i) Bonus shares issued pending allotment; Reserve balance kepi aside. !u be adjusted against bonus share* issued pending allotment. I loivever. in the I V 202-1-25
the bonus is alloted on .3rd April, 2024.
ii) Securities Premium; Securities premium is used to recced premium received on issue of shares Ihe reserve is utilised in accordance with the provisions ol tire
Companies Act. 2013.
iii) Capital Reserve: Ihe excess of fair value of net assets acquired over consideration paid in a common control transaction ts recognised as capital reserve
iv> Retained Earnings: Retained earnings represent the amount that can be distributed as dividend considering the requirements of the Companies Act. 20)3.
v) Other Comprehensive Income: Other ci •mprehensive income comprises items of income and expense (including reclassification adjustments) that are not
recognised In profit or loss a- required or permitted by Ind AS
• The company withheld a liability owed to M/ *. Clean Coats Pvt. l td. ('vendor") due to unsatisfactory work quality, which resulted in a dispute. The vendor disputed
tire withholding and hied a Complaint with the MS.V1E Facilitation Council, lhane. The Council issued an order on Septemlx-r 29. 2017. directing tlx-company to pav
INR J2.03 lakhs along with <xlx-r claims
Subsequently, the company contested the order by filing a suit in the Uoinbay City Civil Court. Dindoshi, on February 9. 201S. Concurrently, the vendor approached
the Bombay High Court for enforcement of tlx- MSWE Facilitation CouiKil's order, lhe Bombay High Court instructed the company to deposit INK 85.53 lakhs
(including interest) with the court. Subsequently deposited amount was withdrawn by the vendor
However. fallowing an Order of the llon'bki Supreme Court of India. Fabcech Technologic-; International Ltd. I Demerged Company) filed an Arbitration Application,
appointing k-gal representation. This application is anticipated to lx- listed and presents a favocabJe chance for tlx- deposited funds to Iv refunded.
The management expresses confidence in resolving the mailer in its favor and therefore, no pmvt«*on has boon recorded m tlx- company's books.
42 Segment Reporting
In accordance with Ind AS 1 CIS "Operating Segments.", segment information has been given in the consolidated Ind AS financial statements, and therefore, no separate
disclosure on segment information is given in these standalone financial statements
i) Defined Contribution Plan
Tire Company makes contributions, determined as a specified percentage n< employee salaries, in respect of qualifying employees (wards Provident Fund and
Employee Stale Insurance Fund, which is a defined contribution plan. The company Has no obligations other than to make the specified contributions. The
contributions are charged to the Statement of Profit and lx>>* a- they accrue. The only amounts included in the balance sheet are those relating to the prior months
contribution that arc i»t due to he paid until the end of repotting period. The amount recognised as an expense towards contribution to Provident Fund and Pension
Fund for live year aggregated toe
INK 5H.33 lakhs lor the year ended March 31,2026
INK 57.63 lakhs for the year ended March 31. M»
ii) Defined Benefit Plan
Description of Plans
Retirement Benefit Plans of the Company include Gratuity and Leave Encashment.
Gratuity & Pension
The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lumpsum payment to vested
employees at retirement, death while in employment or on termination of employment ol an amount equivalent to 15 days salary payable lor each completed year oi
service. subject to a payment ceiling of INK 2d laklv Vesting occurs upon compleimn of five years of service, However, rise completion of vesting period is not
applicable in the case where termination of employment is due to death or permanent disability. Liabilities with regard to the Gratuity Plan are determined by
ai1uari.il valuation on the reporting date.
H. Investment details of plan
The Company Isas a defined benefit gratuity plan In India (partly funded) The entity's defined benefit gratuity plan Is a final salaiv plan for employees- which requires
contributions to be made to a separately administered fund i*. Lrfo Insurance Corporation of India The fund is managed by a trust which Is governed by she Board of
Trustees. The Board uf Trustees arc responsible for the administration of tlx- plan assets and fur the definition of tlx- Investment strategy.
I. Notes
Gratuity Is payable as per entity's scheme as detailed in the report
Actuarial gairts/l<»«‘es are recognized in the period of occurrence under Other Comprehensive Income (OC1).
All above reported figures of OCI are gross of taxation.
Salary escalation & attrition rah' are considered as advised by the entity; they appear to bo in lino with the industry practice considering promotion and demand &
supply of the employee*.
Maturity Analysis of Benefit Payments is undiscounted cashflows considering future salary, attrition Si death in respective year for members as mentioned above for
torsreaWe future ot next 10 years
Average Expected Future Service represents Estimated Term of Pin* • Employment Benefit Obligation.
Weighted Average Duration of the Defined Benefit Obligation is the weighted average of cadi flow timing, where Weights are derived from the present value of each
cash flow to live total present value.
Any benefit payment and contribution to plan assets e> considered to occur end of the year to depict liability and fund movement In the disclosures.
Value of asset provided by the' entity is not audited by it* and the same is considered *s unaudited fan value of plan asset as on the reporting dale
In absence of specific communication as regards contribution by the entity, Expected Contribution in the Next Year is considered as the sum of net liability/assets at
the end of the current year and cunxnt service cost (or rx-vl year, subject to maximum allowable contribution to the Plan Assets over tlx: next vear as per the Income
Tax Rules.
J. Qualitative Disclosures
Para 1OT (a) Characteristics of defined benefit plan
The entity has a defined benefit gratuity plan in India (funded). The entity'* defined beix-fit gratuity plan is a final salary plan for employee*, which tequirc*
cnntributioiw Id K- made to a separately administered fund.
The fund is managed by a trust which is governed by tlx: Bcorri ot Trustees. Tlx: Board of Trustees are responsible for the administration of tlx- plan assets and tor the
definition ot the investment strategy.
Pn» 13*>ll») Risks associated will* defined benefit plan
Gratuity Isa defined benefit plan and entity is exposed to the Following Risks
Interest rite risk A fall In the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the
discount rale generally increases live mark to market value of the assets depending on I lie duration of assel.
Salary Risk: I he present value of the defined benefit plan liability is calculated bv reference to the future salaries of members. As such, an increase in the salary of the
members more than assumed level will increase the plan's liability.
Investment Risk: Die present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference tu market yields at the end
of the repotting period on government bund*. If the return on plan asset is below this rate. It will create a plan deficit. Currently, few the plan In India. It has a relatively
balanced mis of investments in government securities, and other debt instruments
\vset I iability Matching Risk. The plan faces ihe AIM risk as to the matching cash flow Since Ihe plan Is Invested in lines of Rule 101 of Income Tax Rules. isfO. this
generally reduces AIM rvk.
Mortality risk: Since the benefits under the plan is not payable for life tune and payable till retirement age only, plan docs nut leave anv longevity ride.
Concentration Risk: llan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all Ihe assets. Although
probability ot this is very low as insurance companies have to follow stringent regulatory gUKlelir.es which mitigate nsk.
I'ara 13*) (c) Characteristics of defined benefit plans
During ihe year, there were no plan amendments, curtailments and settlements.
Para 147 (a)
A separate trust fund is created to manage the C.ratuitv plan anti the contributions towards the trust fund it done as guided bv rule 11)3 of Income Tax Rules, 1SKi2.
iii) Other Long Term Benefit Plan
The following table sets out the non funded status of the Privilege Leave benefits and ihe amounts recognized In the Company's financial statement*.
Privilege Leave is payable as per entity's scheme as detailed in the report.
Actuarial Gams/ Losses arc accounted lor m the period ol occurrence in the Statement of Profit or loss.
Salary escalation & attrition rate ate considered as advised by the entity, they appear to tv in lira: with the industry practice considering promotion and demand &
Supply of the employees.
During the year, there were no plan amendments, curtailments and settlements.
Any benefit payment and contribution to plan assets ts considered to occur uni of the year to depict liability atvd fund movement In the disclosures.
On November 21.2025, the Government of India notified four Labour Codes, replacing the existing 29 labour laws. The Company has assessed the financial
implications ot these changes, which has no impact in five Company's gratuity and leave encashment liability for the quarter flint year ended March 31. 2026. I lowever,
the Company continues to monitor the developments per laming to Labour Codes and will evaluate impact if any on the re-measurement of the employee benefits
liability
it Capitjl Management
The Company's capital management is intended to create value for shareholders by facilitating five meeting ol long term and slioet term goals ol the Company. The
Company determines the amount of capital required on the basis of annual business plan coupled with long term atvd short term strategic Investment atvd expansion
plans. Tlve funding needs are nvei through equity, cosh generated from operations and long term and shot! term bunk borrowing* on need basis If any. The Company
monitors the capital structure on the basis of gearing ratio i,e. net debs to equity ratio and maturity profile of the overall debt portfolio of the Company Net debt
include* interest bearing borrowing*. Ie«* cash and cash equivalents.
46 Financial B i-k Management
Th- Company'* printfpll financial liabilities comprise borrowing, trade jtvl other pjyjbksi The mam purpose of these financial liabilities is to finance and support CompanvVi
op-iaticsi, livCn«ii|Wi)''*|YttKtp<<l liruWiCW a**stIS unhide Ir.uk-aiidotlvr ti\ enablesand I'Jffland ladisipiisalents Hut derive ilirwily from ittO|vt»luniv
live Company Is exposed to market risk, credit mk atvJ liquidity mi. Ihe Company's senior m.iiugetiy'n; oversees the maiugcnwn! oc these risks. live Company's financial risk,
activities are governed by appropriate pedicles and procedure* aryl :ir.nvi.il nsks are identified, measured anil managed in accordance with the Company’s policies and rtsk
objectives Ihc Board of Director* reviews and agrees policies for maivjgtng each of these risks, rhe r»k management framework aims to:
(I) ci cate a stable busltyw. pl.iiuiing inivsnumynl by red vying the inipu t of currency and Interest rate flustuatunit on the Company's business plaiv
(it) jyhieve greater predictability to earnings by determining the financial value of the expected earnings in advance
1 Market ride:
Market rtsk Is the rt.k of any kiss in iuture earnings, m realisable lau values or In future ..ash flows that may result from a change in live' pryc cd a IUiaii.uI instrument. Ihc value ol a
financial Instrument may change as a result ol changes in mterest rates, loretgn currency exchange rates, opnty pevee fluctuations. liquidity aryl other market changes. Future specific
market movements cannot be nornvsllv prcdxted with reasoruMe accuracy.
C> Market risk - Foreign currency exchange rate risk: The Company enter mto sat aryl purchase uanSKtiuns vlenominatvd in foreign currencies; <oof*.x(Ui-ntly, exposure- to exchange
ran- Fluctuations arise Management moratory tlx- nunsin.nl in foreign curinuy .nut the C.'oinpsriy'sexposure hi each .4 the foreign currency lU**d m the analysis ami study .4
movement in larrlgn currency, the Company takes rvmidial measures to hedge' to reign currency risk through measures like forward currency contracts etc
b> Market risk • Interest r.ucr»k: Intciest rate r.-.k refers to live ponabllliv that live rair value or future cash flows ol a tliuiyl.il instrument will fluctuate became ol clunges In market
interest rate. The Company"s pvbcv r. to maintain a balance of fixed aryl l loafing Interest rate bofTosvings aryl the proportion of fixed atyl floating rate debt ts determined by current
market interest rales. Ihe borrowings of live Company arc principally dctwnnvlcd in livfiar. Ropes and US dollars with mix of fixed and (fixating rjles ol interest Fhese exposures
are reviewed by appropriate levels of management at regular interval
Th C Ivnptny ha. out.landing borrowing* id INK I.WI.95 lakh- and INX 33Z4.Wlakh- at the end of Marsh 31. 3Bhaod Marsh 41. 3005 rs-sysx livvlv
II Credit risk:
Credit risk is the ri*k of financial low fi> th; Companv ri o customer or counter-party fail* to m»vt its <ontr.ytn.il obligations Credit risk encompasses hath the dirixt ri-k of default
and th- risk ol deterioration ol CtXvlMwortllilKW. «• wxll a- concentration nsks. Financial irulniments I ho are •ulifist ti> ciyyvtilmlioiis of Credit resk, prim lipully oei-ist of Cadi k
hank balances, trade receivables, finance receivables and loans and advances. Company regularly reviews the credit limits of the customers aiyl takes action to reduce the rr.k.
Funhur diverse and lorgq customer liases also lediyes the itsk. AU trade receivables are reviewed atyl MKtMd fix default cm quarterly basis.
50
Use balances in mpKt of trade receivable* and payable* and loan* and advances, as appearing in the books of accounts are subject to confirmation* from the respective
parties ami are pending reconciliations / adjustments arising there from, if any. The same is mit expected to have any material impact on the financials statements.
51 A* per the contractual terms with customers, company provide warranty to tlx- customer fix 18 months from the date of sale or 12 month from the date of installation
whichever is earlier. These warranties are tucked by the vendor s warranty on the product No Provision for Warranty has been created since tile vendor of the company
fully covers tlx- product warranty cost pertaining to the material supplied by litem lor potential future warranty claims.
52 Ihe Investment in the equity share* of'ISA Process Equipment IM Lid ffSA-) till February 06,2024 was classified as an investment m associate in accordance with Ind
AS 27. I he said investment cea<«s to be- an investment in assocUle from February t>6,2024 as a company decided to dispose- off its investment in ISA to Thermae Limited
vide Share Purchase and Share Subscription Agreement dated February 06, 2024. Accordingly, as per Ind AS 105 Non-current Assets Held for Sale and Discontinued
Operations, from tlx- cessation date the investment in ISA ha* been valued at lower oi carrying amount or fair value (net of curt)
t he Company has mid the stake of M'l of 5555'- equity shares of TSA Process Equipment Pvt Ltd. ('IS-V| during the FY 2074-25 to Ihermax Limited.
The Company has sold 51A of its investment in wholly-owned subsidiary i.e FABL International Technolopes LLP on April 01, 2025 and was classifed as as investment
in assciates in accordance with Ind AS 27.
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