U. Provisions
Provisions for legal claims and returns are recognised when the company has a present legal or constructive obligation as a result of past event, 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 provisions due to the passage of time is recognized as interest expense.
V. Employee benefits
i. Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
ii. Other long-term employee benefit obligations
The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured at the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligations.
Remeasurements as a result of the experience adjustments and changes in actuarial assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
iii. Post-employment obligations
The Company operates the following post-employment schemes:
(a) Defined benefit plans such as gratuity; and
(b) Defined contribution plans such as provident fund and superannuation fund.
(c) Defined benefit plans such as Leave encashment.
Gratuity & Leave Encashment obligations
The liability or assets recognised in the balance sheet in respect of gratuity & Leave Encashment plans are the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expenses in the statement of profit and loss.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailment are recognised immediately in profit or loss.
Defined contribution plans
The company pays provident fund contributions to publicly administered funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due.
iv. Bonus plans
The Company recognizes a liability and an expense for bonuses. The Company recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
W. 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.
X. Dividends
Provision is made for the amount of any dividend declared, being appropriately authorized 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.
Y. Provision for doubtful debts
The Management reviews on a periodical basis the outstanding debtors with a view to determine as to whether the debtors are good, bad or doubtful after taking into consideration all the relevant aspects. On the basis of such review and in pursuance of other prudent financial considerations the management determines the extent of provision to be made in the accounts.
Z. Earnings per share
i. Basic earnings per share
Basic earnings per share are calculated by dividing:
• The profit attributable to owners of the company.
• By the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.
ii. Diluted earnings per share
Diluted earnings per share adjust 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 equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
3. Honorable Bombay High Court has passed winding up order on the petition of M/s Savino Del Beno "Petitioner" (Freight forwarder agent & CHA of company).
Facts of the case - During the year 2010, Petitioner has raised bills for their services but failed to submit Original EP copy to the company, which is essential documents to claim Excise rebate, and accordingly the company withheld their payment. Subsequently, the petitioner has filed a winding up petition against the Company of dues of '0.13 crore. Honorable Mumbai High Court has passed an order allowing the petition and issued directions for the appointment of the official liquidator in winding up order.
On appeal against this order made by the company before Honorable Bombay High Court, Honorable Bombay High Court has given an interim stay order against the winding up order passed (against the Company) dated April 15, 2015. The company has deposited '0.19 crore with interest as per direction of honorable Bombay High Court. The matter is pending before the Bombay High Court. Next hearing in this matter shall come up as per listing of the court.
The amount deposited of '0.19 crore with court is shown in the Balance sheet under Current Assets.
4. The balances under the heads of Trade Receivables, Trade Payables, and Loans and Advances Receivable and Payable are as per the books of accounts and are subject to confirmation by the respective parties, as well as adjustments, if any, upon reconciliation. Balance confirmation emails have been sent to the parties concerned, requesting confirmation or comments by a specified date. It was indicated that, in the absence of a response, the balances stated in the communication would be considered as confirmed. Responses have been received from parties; however, no adverse remarks or objections have been received.
5. During the year '4.50 Crores (P Y. '1.59 Crores) has been credited to the Statement of Profit and Loss in respect of the Foreign Exchange Differences.
6. Segment reporting
The Managing Director has been identified as the Chief Operating Decision Maker ("CODM") as defined under Ind AS 108 - Operating Segments.
The CODM reviews the Company's operating results as a whole for the purpose of making decisions regarding resource allocation and assessing performance. Based on the nature of products, production processes, customer profile, risk and return characteristics, and the internal management reporting system, the Company operates in a single reportable business segment, namely Engineering and Current Sensing Applications.
Accordingly, The Company operates in a single reportable operating segment, e.g., Engineering and Current Sensing applications. The Chief Operating Decision Maker (CODM) reviews the performance of the Company as a single operating unit. Accordingly, separate segment information under Ind AS 108 is not required to be presented.
7. Leases: Effective date and transition
Effective April 1, 2019 the Company has adopted Ind AS 116 Leases. Company applies retrospectively with the cumulative effect of initially applying the Standard recognized at the date of initial application. Company measure lease liability at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate at the date of initial application, and measure that right-of-use asset an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the balance sheet immediately before the date of initial application. The company is following SLM method for depreciation on Right of use assets over lease terms.
9. Disclosure as required by Ind AS-19, Employee Benefits
I. Gratuity
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on retirement/termination is the employees' last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The company contribution "on the basis of actuarially ascertained by the Independent Actuaries" is charged to profit and loss accounts. The amount debited to profit, and loss account is '0.21 Crores. Past service cost due to applicability of New Labour code is '1.74 Crores.
Other long-term employee benefits:
II. Leave encashment
The Company provides for the expected cost of accumulating paid leave which can be carried forward and used in future periods by the employees. The obligation to accumulate paid leaves has been recognized at the end of the reporting period.
In respect of Gratuity & Leave Encashment, provision is made based on the actuarial valuation by an independent actuary. The following information as required under Ind AS-19 is based on the report of the Actuary:
10. Component Accounting for Fixed Assets:
In the opinion of the management, based on internal verification of the assets of the company, there is no major part, in case of any asset, which is significant to the total cost of the asset and whose useful life is different from the useful life of the asset. Hence, there is no change in accounting of fixed assets and depreciation thereon as required under Ind AS 16: Property, Plant, and Equipment.
11. Segment Reporting:
As the Company operates mainly in one Business Segment, i.e. Engineering and Current Sensing applications, hence are considered to be a single primary business segment. There have been no other reportable segments identified by the Chief Operating Decision Maker, and hence no segment reporting is presented under IND AS 108.
12. Impairment of Assets:
During the financial year 2025-26, the Company performed an impairment evaluation of certain assets within its Property, Plant, and Equipment vertical, following internal reviews that indicated a potential reduction in economic utility.
Consequently, an impairment loss of '0.06 Crore (Previous Year: Nil) has been recognized in the Statement of Profit and Loss under the line item 'Other Expenses'.
15. Corporate Social Responsibility (CSR)
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 eradication of hunger and malnutrition, promoting education, healthcare, women empowerment, measures for the benefit of war widows and contributions to incubators has been formed by the company as per the Act. The funds were primarily allocated to a corpus and utilised through the year on these activities which are specified in schedule VII of the Companies Act, 2013.
The amount of expenditure to be spent on CSR activities and financial details as per the Companies Act, 2013 for the F.Y 2025-26 are as under:
16. Financial instruments and risk management
Fair values
1. The carrying amounts of trade payables, other financial liabilities (current), borrowings (current), trade receivables, cash and cash equivalents, other bank balances and loans are considered to be the same as fair value due to their short-term nature.
2. Borrowings (non-current) consists of loans from banks and government authorities, other financial liabilities (noncurrent) consist of interest accrued but not due on deposits other financial assets consist of employee advances where the fair value is considered based on the discounted cash flow.
The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.
Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial instruments, other
than those with carrying amounts that are reasonable approximation of fair values:
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 is determined using valuation techniques, which maximise the use of observable market data and rely as little as possible on entity specific estimates. If significant inputs required to fair value instruments are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is included in level 3.
Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date. In respect of investments as at the transaction date, the Company has assessed the fair value to be the carrying value of the investments as these companies are in their initial years of operations obtaining necessary regulatory approvals to commence their business.
17. Financial risk management
The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest rate), liquidity risk and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
(A) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure. The sensitivity analyses in the following sections relate to the position as at March 31, 2026, and March 31, 2025.
The analysis excludes the impact of movements in market variables on the carrying values of financial assets and liabilities.
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2026, and March 31, 2025.
(i) Foreign currency exchange rate risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the trade/other payables, trade/other receivables assets/ liabilities. The risks primarily relate to fluctuations in US Dollar & EURO against the functional currencies of the Company. To mitigate the Group's exposure to foreign currency risk, cash flows are monitored, and natural hedges are used. (Amounts to be paid and received in a specific currency are expected to be largely offset by one another). The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate
rickc (ii) 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 change in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt obligations with floating interest rates. As the Company has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates. Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.
As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.
(B) Credit Risk
Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current held-to maturity financial assets.
With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. Cash and other collaterals are obtained from customers when considered necessary under the circumstances.
The carrying amount of trade receivables, loans, advances, deposits, cash and bank balances, bank deposits and interest receivable on deposits represents company's maximum exposure to the credit risk. No other financial asset carries a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others.
The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment.
An impairment analysis is performed at each reporting date on an individual basis for major receivables. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds deposits as security from certain customers to mitigate credit risk.
18. Event occurring after the balance sheet date
The Board of Directors has recommended an Equity dividend of '2.20/- per share on face value of '10/- each, for the financial year 2025-26. The proposal is subject to the approval of shareholders at the Annual General Meeting. On approval, the total dividend outgo is expected to be '1.89 Crore based on number of shares outstanding as on March 31, 2026.
19. Other Disclosures
(a) Relationship with Struck off Companies - The Company does not have any transactions or relationships with any companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.
(b) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.
(c) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.
(d) There is no Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
(e) There is no transaction in Crypto Currency or Virtual Currency,
(f) The Company is not declared wilful defaulter by any bank or financials institution or lender during the year.
(g) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.
(h) The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the Standalone financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.
(i) 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.
(j) The Company has not received any funds 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.
20. The previous year's figures have been regrouped, rearranged and reclassified wherever necessary to conform to the current year's presentation.
21. Approval of Financial Statements
The financial statements were approved by the Board of Directors on May 13, 2026.
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