14 Provisions, Contingent Liabilities and
Contingent Assets
Provisions are recognized only when there is
a present obligation as a result of past events
and when a reliable estimate of the amount of
obligation can be made. These are reviewed at
each balance sheet date and adjusted to reflect
the current best estimates.
A Contingent liability is disclosed for:
a. Possible obligation which will be confirmed
only by future events not wholly within the
control of the Company, or
b. Present obligations arising from the past
events where it is not probable that an
outflow of resources will be required to
settle the obligation or a reliable estimate
of the amount of the obligation cannot be
made.
c. Where there is a possible obligation or
a present obligation that the likelihood
of outflow of resources is remote, no
provision or disclosure is made.
A contingent asset is neither recognized nor
disclosed in the financial statements since this
may result in the recognition of income that may
never be realized.
15 Earnings Per Share
Basic earnings per share is computed by dividing
the profit/ (loss) after tax (including the post¬
tax effect of extraordinary items, if any) by the
weighted average number of equity shares
outstanding during the year.
Diluted earnings per share is computed by
dividing the profit/(loss) after tax (including the
post-tax effect of extraordinary items, if any) as
adjusted for dividend, interest and other charges
to expense or income relating to the dilutive
potential equity shares, by the weighted average
number of equity shares considered for deriving
basic earnings per share and the weighted
average number of equity shares which could
have been issued on the conversion of all dilutive
potential equity shares.
Potential equity shares are deemed to be dilutive
only if their conversion to equity shares would
decrease the net profit per share from continuing
ordinary operations. Potential dilutive equity
shares are deemed to be converted as at the
beginning of the period, unless they have been
issued at a later date. The dilutive potential
equity shares are adjusted for the proceeds
receivable had the shares been actually issued
at fair value (i.e. average market value of the
outstanding shares). Dilutive potentially equity
shares are determined independently for each
period presented. The number of equity shares
and potentially dilutive equity shares are adjusted
for share splits/reverse share splits and bonus
shares, as appropriate.
16 Cash Flows
Cash flows are reported using the indirect
method, whereby profit before tax is adjusted for
the effects of transactions of non-cash nature
such as depreciation, provisions, and unrealized
foreign exchange gains and losses, 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. Cash flows from operating, investing
and financing activities of the Company are
presented, accordingly.
17 Segment Accounting
a. The business segment has been considered
as the primary segment
b. The Company’s primary business segments
are reflected based on principal business
activities, the nature of service, the
differing risks and returns, the organization
structure and the internal financial
reporting system.
c. The Company’s primary business includes
design, development, fabrication and
supply of software-based automated test
equipment. This is the only segment as
envisaged in Accounting Standard 17:
‘Segment Reporting’ therefore disclosure
for Segment reporting is not applicable.
18 Events occurring after the Balance Sheet Date
Material events occurring after the balance sheet
are considered up to the date of approval of the
accounts by the board of directors.
G. Changes in Accounting policies in the Financial Years
covered in the Financial Statements:
There have been no changes in the accounting policies
of the company for the years covered in the financial
statements.
A.1.4 Terms/rights attached to equity shares:
i) The company has only one class of shares referred to
as equity shares having a par value of 7 2/- as at 31st
March, 2026.
ii) Each holder of equity shares is entitled to one vote per
share.
iii) In the event 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.
A.1.5 Other disclosures relating to Share Capital
1. The company does not have any holding and subsidiary
companies and hence the disclosure relating to shares
held by any holding company or ultimate holding
company or subsidiaries or associate companies is not
applicable
2. The company does not have any shares reserved for
issue under options and contracts/commitments for
the sale of shares / disinvestment as at the end of each
financial year for the reporting periods
3. The company does not have any securities convertible
into equity / preference shares issued as at the end of
each financial year for the reporting periods
4. There are no calls unpaid by the Directors or officers of
the company.
5. The company does not have any forfeited shares as at
the end of each financial year for the reporting periods
6. For a period of 5 years immediately preceding the
dates as at which this balance sheet is prepared:
(A) The company does not have any class of shares
allotted as fully paid up pursuant to a contract
without payment being received in cash
(B) The company does not have any class of shares
allotted as fully paid up by way of bonus shares
except the 20,00,000 bonus shares allotted in
the ratio of 1:1 vide Members’ resolution dated
07.09.2024 (1 Equity share for every 1 Equity
share held by each shareholder)
(C) The company has not bought back any class of
shares.
7. The Authorised share capital of the company has been
increased from 72,00,00,000/- divided into 20,00,000
equity shares of 710 each to 76,00,00,000/- divided
into 60,00,000 equity shares of 710 each vide the
Extraordinary General Meeting held on 13.08.2024
and subsequently increased to 710,00,00,000/-
divided into 1,00,00,000 equity shares of 710 each
vide the Extraordinary General Meeting held on
18.06.2025.
8. The company has made a private placement of
equity shares of 2,55,319 equity shares of face value
of 710 each fully paid up at face value of 710 each
and Securities Premium of 7230 each vide special
resolution passed in the shareholders meeting held on
22.09.2024.
9. The company has made a private placement of
equity shares of 1,70,207 equity shares of face value
of 710 each fully paid up at face value of 710 each
and Securities Premium of 7283.76 each vide special
resolution passed in the shareholders meeting held on
31.12.2024
10. The company has made a private placement of
equity shares of 25,000 equity shares of face value
of 710 each fully paid up at face value of 710 each
and Securities Premium of 7283.76 each vide special
resolution passed in the shareholders meeting held on
12.02.2025
11. The Company has sub-divided its equity shares from
a face value of 710 each to 72 each, pursuant to the
approval of the shareholders vide ordinary resolution
dated 25.07.2025. Subsequent to the share split, the
revised Authorised share capital of the company is
710,00,00,000/- divided into 5,00,00,000 shares of 72
face value each and Paid-up capital of the company is
74,45,05,260/- divided into 2,22,52,630 shares of 72
face value each. In order to comply with the provisions
of AS-20 (Earnings Per Share), the Basic and Diluted
Earnings Per Share are calculated after considering the
Share split effect for the FY 2024-25.
12. The company has made an allotment of 66,98,400
fresh equity shares of face value of 72 each, fully paid
up at face value of 72 each and securities premium of
7102 each through Initial Public Offer, vide the basis of
allotment approved as per the Board resolution dated
23.01.2026.
a) Adjustment on account of prior period deferred tax expenses of 70.97lakhs with respect to the adjustment of prior
period provision for gratuity has been made under the head “Prior period taxes” in the Statement of Profit and Loss for
the year ending 31.03.2025.
b) Adjustment on account of prior period deferred tax expenses of 7(0.75)lakhs with respect to the change in the gratuity
estimate has been made under the head “Prior period taxes” in the Statement of Profit and Loss for the period ending
31.03.2026.
(b) Defined Benefit Plan
The Company has a defined benefit gratuity plan. The company identifies all of its permanent employees who are
aged not less than 18 years and not more than 58 years as eligible employees for the payment of gratuity and has
obliged to pay the gratuity benefit, upon termination, retirement or death of any such eligible employee, as per the
applicable provisions of the Payment of Gratuity Act, 1972 and rules made thereunder amended from time to time.
The scheme is funded with Life Insurance of India under the “Group Gratuity Scheme”.
The following tables summaries the components of net benefit expense recognised in the Statement of profit and
loss and the funded status and amounts recognised in the balance sheet for the gratuity plan:
The Company ordinarily relies on actuarial valuation issued by the LIC of India under the Group Gratuity Scheme
with whom the company is maintaining the Gratuity fund till the financial year ending 31.03.2025. For the purpose
of Financial Statements for the year ending 31.03.2026 prepared in accordance with Companies Act,2013, the
Company has obtained an independent actuarial valuation for the said period. To ensure uniform actuarial valuation
and consistency across all reporting periods, the resulting adjustments, where applicable, on account of Actuarial
Assumptions have been duly incorporated in the Actuarial loss/gain in accordance with AS-15.
6. Disclosure under AS-16 Borrowing Costs:
Borrowing costs to the extent of 1:13,36,922/- and 1 46,50,165/- incurred during the year ending 31.03.2026 on the
specific borrowings made by the company towards the purchase of residential flat (NSL property) and Establishment of
New Factory (Inluding purchase of Plant & Machinery) respectively which have met the criteria of “Qualifying Asset” are
capitalised as per the provisions of “AS-16 Borrowing Costs” and classified under the head “Capital Work In Progress”.
Notes on Commitments:
1. The company has entered into an agreement of sale with “M/s. NSL SEZ (Hyderabad) Pvt. Ltd." on 17.01.2024 to purchase
a residential housing property No.A-3206, in Tower-A of “NSL East Luxoria" situated at Plot No.6, Sy. No.l(Part), situated
at IDA, Uppal, Medchal-Malkajgiri District of Telangana for a total sale consideration of 7261.29lakhs/- (including GST)
against which, the company has paid advances to the seller to the extent of 7182.73lakhs as on 31.03.2026.
2. The Company paid an Earnest Money Deposit of 7150.06lakhs to Telangana Industrial Infrastructure Corporation Limited
(TGIIC) on 07.03.2025 towards allotment of land. The Provisional allotment has been made vide letter dated 24.04.2025
from TGIIC for a total consideration of 71000.42lakhs/-. Balance consideration of 7850.36lakhs has been made by
the company on 19.06.2025. As the event occurred after the balance sheet date but before approval of the financial
statements for the FY 2024-25, and requires adjustment as per AS-4, the deposit has been classified under “Capital
Advances" under “Other Non-Current Assets" as on 31.03.2025. Considering the same, the balance consideration of
7850.36lakhs has been disclosed under Capital commitments section for the year ending 31.03.2025.
3. The Company has issued an work order to “M/s Sripra Projects" on 20.02.2025 to Construct a residential building at Plot
No 236, Sark Green Plains Layout Tukuguda Village, Hyderabad for a Total consideration of 7136.71lakhs/-(Including
GST) against which, the Company has incurred to the extent of 792.22lakhs/- as on 31.03.2026
4. The Company has issued an work order to “M/s JLC Infra" on 13.09.2025 for site clearance, excavation in soil, rock
cutting (hard/soft rock) and disposal of excavated material at Plot No.6/2 admeasuring to an extent of 8336.82 Sq.Mtrs
Situated at IP Hardware park Ph-II at Mamidipally Village of Balapur(M), Ranga Reddy District for a Total Consideration
of 7 245.32 lakhs/-(Including GST) against which, the Company has incurred to the extent of 7225.24lakhs/- as on
31.03.2026
9. Additional Regulatory Information:i) Title deeds of Immovable Property not held in name of the Company:
The company does not have any such immovable properties included in the Property, Plant and Equipment whose
title deeds / lease deeds are not held in the name of the company
ii) Revaluation of Property, Plant & Equipment and Intangible Assets
The company has not revalued any of its Property, Plant & Equipment and Intangible Assets during the reporting
periods. The disclosure as to whether the revaluation is based on the valuation by a registered valuer as defined
under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 is not applicable
iii) Loans or Advances in the nature of loans granted to promoters, directors, KMPs and the related parties
The company has not granted any loans or advances in the nature of loans to promoters, directors, KMPS and
any other related parties as defined in the Companies Act, 2013 either severally or jointly with any other person
that are either repayable on demand or without specifying any terms or period of repayment during the reporting
periods.
iv) Capital - Work - In Progress (CWIP)
There are two projects under the head of “Capital - Work - In Progress” as on 31.03.2026 with respect to the
ongoing construction of New Factory setup and the ongoing construction of the Company’s Guesthouse and the
disclosures relating to the ageing schedule of the same are as mentioned hereunder:
There are no projects under the “Capital work in progress” whose completion is overdue or has exceeded its cost
compared to its original plan as on 31.03.2026
v) Intangible Assets Under Development (ITAUD)
The company does not have any Intangible Assets under development during the reporting periods and hence the
disclosure relating to the ageing schedule of the intangible assets under development is not applicable
vi) Details of Benami Property held
The company does not hold any benami property under the Benami Transaction (prohibition) act, 1988 and the
rules made thereunder. Hence any proceeding has not been initiated or pending against the company for holding
any benami property under the Benami Transaction (prohibition) act, 1988 and rules made there under.
vii) Disclosure with respect to borrowings from banks/financial institutions based on security of current assets:
The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or
statements of current assets filed by the Company with banks are in agreement with the books of accounts.
viii) Wilful Defaulter
The company has not been declared as wilful defaulter by any bank or financial institution or Government or
Government Authority during the reporting periods.
ix) Relationship with struck off companies
The company does not have any relationship with the struck off companies during any of the reporting periods
x) Registration of charges or satisfaction with Registrar of Companies
The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the
statutory period.
xi) Compliance with number of layers of companies
The Company does not have any subsidiaries therefore disclosure of compliance with number of layers prescribed
under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not
applicable.
xii) Compliance with approved Scheme(s) of Arrangements
The Company does not have any arrangements made in terms of section 230 to 237 of Companies Act 2013, and
hence there is no deviation to be disclosed.
xiii) Utilisation of Borrowed funds and share premium:
During the reporting periods, the Company has not advanced or loaned or invested funds to any other person or
entity, 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
During the reporting periods, the Company has not received any fund from any person or entity, including foreign
entities (Funding Party) with the understanding 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
10. Other Additional Disclosures:
a. There are no amounts set aside and/or proposed to be set aside or withdrawn from/to reserves out of the
profits other than provisions made to meet any specific liability by the company for the period for which Financial
Statements have been prepared including the period ending 31.03.2026
b. The company has no subsidiary companies during the periods /as at the end of the periods covered in the financial
statements. Hence, the disclosure relating to the dividend received and provision made towards the losses of
subsidiary companies is not applicable
c. As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at
least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility
(CSR) activities. The areas for CSR activities are promoting education, promoting gender equality by empowering
women, healthcare, environment sustainability, art and culture, destitute care and rehabilitation, disaster relief,
COVID-19 relief and rural development projects. A CSR committee has been formed by the Company as per the
Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of
the Companies Act, 2013. The provisions of Corporate Social Responsibility (CSR) are applicable from this financial
year.
The Company has fully spent the required amount towards Corporate Social Responsibility (“CSR”) and there are
no unspent CSR amount for the year requiring a transfer to a Fund specified in Schedule VII to the Act, or special
account in compliance with the provision of sub-section (6) of section 135 of the said Act. Detailed disclosures
with respect to the same are as follows:
d. The company does not have any transactions that are omitted to be recorded in the books of accounts and have
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
and also does not have any previously unrecorded income and related assets during the period for which Financial
Statements have been prepared including the period ending 31.03.2026.
e. The company has neither traded nor invested in Crypto Currency or Virtual Currency during the period for which
Financial Statements have been prepared including the period ending 31.03.2026
f. The company does not have any non-resident shareholders during the period for which the Financial Statements
have been prepared including the period ending 31.03.2026. Hence, disclosure regarding remittance in foreign
currencies on account of dividends is not applicable
g. Figures of the previous financial year, including other financial information, have been adjusted / regrouped, in
accordance with the groupings made for the current financial year wherever necessary.
h. Amounts due to entities covered under Micro, Small and Medium Enterprises as defined in the Micro, Small,
Medium Enterprises Development Act, 2006, have been reported to the extent of information memorandum
received from the suppliers
i. During the FY 2024-25, the Company incurred a loss of 145.17 lakhs due to a cyber fraud involving a spoofed
email impersonating a regular vendor. The matter has been reported to the cyber-crime authorities and is under
investigation. The Company has implemented additional control measures to strengthen vendor communication
and payment processes.
j. During the year, the Company received notices dated 28 March 2026 from the Registrar of Companies, Hyderabad
(“ROC”), followed by adjudication orders dated 22 April 2026 in relation to proceedings initiated under Section 42
of the Companies Act, 2013, whereby penalties aggregating to 1 26 crores (Company & Directors) were imposed.
The Company filed appeals against the said adjudication orders before the Regional Director, Hyderabad. Pursuant
to the orders of the Regional Director dated 4 May 2026, the adjudication orders were set aside and the penalties
were reduced to Nil. Accordingly, no liability subsists in respect of the said proceedings as at the date of approval
of these financial statements.
k. The company has been allotted the land from the Telangana State Industrial Investment Corporation (TSIIC) vide its
allotment letter dated 01.08.2025 on conditional basis that the company should be able to generate the invoicing
from the factory established on the allotted land within two years from the date of allotment. The company had
entered into an Agreement of Sale with the TSIIC on 03.09.2025 with respect to the allotment and has obtained
the posession of the land and has commenced the construction activity as on 31.03.2026. The transfer of legal
ownership by way of executing registered sale deed in the favour of the company would be made after the
aforesaid condition has been satisfied by the company. Considering the posession has been obtained but the legal
ownership is not yet transferred to the company, the consideration paid to the TSIIC towards the allotment of land
has been classified under “Capital Advances” under “Long Term Loans and Advances”.
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