K. Provision, Contingent Liabilities and Contingent Assets:
A Provision is recognized only when:
I. The company has a present obligation as a result of past event and
II. it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and
III. in respect of which a reliable estimate can be made of the amount of the obligation.
Provisions are determined based on management estimate required to settle the obligation at the balance sheet date. These are
reviewed at each balance sheet date and adjusted to reflect the current management estimates.
Contingent Liabilities is disclosed in the notes in case of:
I. a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control of the entity; or
II. a present obligation arising from past events where:
• it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
• the amount of the obligation cannot be measured with sufficient reliability.
Contingent Assets are neither recognized nor disclosed in the financial statements.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
L. Commitments
Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:
I. estimated amount of contract remaining to be executed on capital account and not provided for, and
II. other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of
management.
Other commitments related to sales/procurements made in the normal course of business are not disclosed to avoid excessive
details.
M. Derivatives:
The Company uses foreign exchange forward contracts to hedge its exposure to movements in foreign exchange rates. The use
of these foreign exchange forward contracts reduces the risk or cost to the Company and the Company does not use the foreign
exchange forward contracts for trading or speculation purposes.
The Company recognised the gain or loss on effective hedges in the Statement of Profit and Loss of that period when they arise.
N. Employee Benefits
Employee benefits such as salaries, wages, short-term compensated absences, cost of bonus, ex-gratia and performance linked
rewards falling due wholly within twelve months of rendering the service are classified as short-term employee benefits and are
expensed in the period in which the employee renders the service.
I. Defined contribution plans:
Retirement benefit in the form of provident fund and pension fund is a defined contribution scheme. The Company has no
obligation, other than the contribution payable to the provident fund and pension fund maintained by Government's Employee
Provident Fund Organisation.
The Company recognizes contribution payable to the provident fund and pension fund scheme as an expense, when an employee
renders the related service.
If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already
paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid.
If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is
recognized as an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash
refund.
II. Defined Benefit plans:
Gratuity and Leave Encashment which are defined benefits are accrued based on actuarial valuation as at the Balance
Sheet date. The Company operates a defined benefit gratuity plan in India, which requires contributions to be made to a
separately administered fund. The cost of providing benefits under the defined benefit plan is determined using the projected
unit credit method.
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in
net interest on the net defined benefit liability and the return on plan assets of gratuity (excluding amounts included in net
interest on the net defined benefit liability), are recognized immediately in the balance sheet with a corresponding debit or
credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or
loss in subsequent periods.
Past service costs are recognized in profit or loss on the earlier of:
• The date of the plan amendment or curtailment, and
• The date that the Company recognizes related restructuring costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
The Company recognizes the following changes in the net defined benefit obligation as an expense in the statement of profit and
loss:
• Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine
settlements; and
• Net interest expense or income.
O. Leases:
The company determines whether an arrangement contains a lease by assessing whether the fulfilment of a transaction is
dependent on the use of a specific asset and whether the transaction conveys the right to use that asset in return for payment.
Ind AS 116 "Leases" is effective for annual periods beginning on or after 1st April, 2019. Ind AS 116 sets out the principles for the
recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on
Balance Sheet model similar to the accounting for finance lease under Ind AS-17.
The standard includes two recognition exemptions for lessees- leases of "low - value" assets and short-term leases (i.e. for 12
months or less term). At commencement date of Lease, a lessee will recognise a liability to make lease payments (i.e. the lease
liability) and an asset representing the right to use the underlying asset during the lease term (i.e. the right-of-use asset).
Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expense on the
right-of-use as-set.
There are no identifiable material leases to be reported and there will be no significant impact on finan-cial statement in respect
of Leases
P. Earnings Per Share (EPS)
Basic earnings per share: Basic earnings per share is computed by dividing:
• the profit attributable to owners of the Company
• by the weighted average number of equity shares outstanding during the financial year.
Diluted earnings per Share: Diluted earnings per share is computed after adjusting 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 assum-ing the conversion of all
dilutive potential equity shares.
Q. Other information:
I. The Company has not received any fund from any person(s) or entity(ies), including foreign enti-ties (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
II. 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 (whether recorded in writing or otherwise) 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
R. Previous year figures have been re-grouped/reclassified, wherever necessary to confirm with Current year's grouping/
classification.
The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in
the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the
method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied. The
methods and types of assumptions used in preparing the sensitivity analysis did not change as compared with the previous
period.
30(B) OTHER NOTES ON ACCOUNTS
(1) FAIR VALUE MEASUREMENT
Financial Instrument by category and hierarchy
The fair values of the financial assets and liabilities are 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.
The following methods and assumptions were used to estimate the fair values:
i. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities,
short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term
maturities of these instruments.
ii. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as
interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account
for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their
carrying amounts.
iii. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instrument by valuation technique.
Level 1 : Quoted (unadjusted) price in active markets for identical assets or liabilities
Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly
or indirectly.
Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market
data.
In line with the overall risk management framework and policies, the treasury function provides service to the business, monitors
and manages through an analysis of the exposures by degree and magnitude of risks. It is the Company's policy that no trading
in derivatives for speculative purposes may be undertaken. The company uses derivative financial instruments, if required, to
hedge risk exposures in accordance with the Company's policies as approved by the board of directors.
a) Market Risk - Interest rate risk:
Interest rate risk is risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The company is exposed to interest rate risk pertaining to funds borrowed at both fixed and floating
interest rates. In order to optimize the Company's position with regards to interest income and interest expenses and to
manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the
proportion of fixed rate and floating rate financial instruments in its total portfolio.
The Sensitivity analysis below has been determined based on the exposures to interest rates at the end of the reporting
period. For floating rate liabilities, the analysis is prepared assuming that the amount of the liability as at the end of the
reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest
rate risk internally to key management personnel and represents Management's assessment of the reasonably possible
changes in interest rates.
Note :
The Company does not have any long-term Borrowings hence the above figures are NIL
b) Market Risk- Foreign currency 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 its
operating activities. The Company manages its foreign Currency risk, if required, by hedging transaction that are expected
to occur within a maximum 12 month periods for hedge of forecasted sales and purchases in foreign currency.
The hedging is done, if required, through foreign currency forward contracts. In past year, the company has not much
imports, but has exports which are more, hence foreign exchange exposure for exports proceeds due cover the liability of
import dues, thus hedging was not required to cover foreign exchange exposure of the Company.
Unhedged foreign currency exposure
Market Risk - Foreign Currency Risk:-
i) The following table shows foreign currency exposures in USD, EUR and GBP on financial instruments at the end of the
reporting period.
c) Equity Price Risk
Equity price risk is related to the change in market reference price of the investments in quoted equity securities. The fair
value of some of the Company's investments exposes the company to equity price risks. At the reporting date, the company
do not hold any equity securities. Investment in Mutual Funds are taken at fair value
d) Credit Risk
Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control
relating to customer credit risk management. Credit quality of a customer is assessed based on customer profiling, credit
worthiness and market intelligence. Trade receivables consist of a large number of customers, spread across geographical
areas. Outstanding customer receivables are regularly monitored.
The average credit period is in the range of 01 -90 days. However in select cases credit is extended which is backed by
security deposit/bank guarantee/letter of credit and other forms. The Company's Trade receivables consist of a large number
of customers, across geographies hence the Company is not exposed to concentration risk.
The Company has provided for expected credit loss as per predetermined percentage of outstanding more than the credit
period based on historical credit loss experience, industry practices and the business environment in which the entity operates
and adjusted to forward looking information. Further, the debts are examined and assessed party wise individually by respective
department head and top management, for doubtful recovery, if any. As a final result of the above exercise the expected
credit loss is determined that allowance as required for Credit Loss is being provided.
Financial Assets are considered to be of good quality and there is no significant increase in credit risk.
e) Liquidity Risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management
is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained
fund and non-fund based working capital limits from bank. Furthermore, the Company access to funds from debt markets
and also short-term working capital loans.
The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted
payments.
(3) Excise Duty and GST:
Consequent to the introduction of Goods and Service Tax (GST) with effect from 1st July, 2017, Excise Duty has been subsumed
into GST. In accordance with IND AS. GST is not part of revenue unlike Excise Duty. Accordingly, from 01.07.2017 GST is not
included in revenue and hence is Not added to turnover.
(4) Current Tax: During the year the income tax provision is made for taxes payable for the year ended 31st March, 2025 based on
Computation of Income as per provisions of the Income Tax Act, 1961.
The Company has opted for the option permitted U/s 115BAA of the Income Tax Act 1961 and hence has Provided for Taxation
as per the reduced rate of tax specified therein and will continue to follow this policy as required under the said section 115BAA
of the Income Tax Act,1961.
(15) In accordance with Ind AS-108 - there are no separate segments. However, Operating segments are reported in a manner consistent
with the internal reporting provided by the management who are assessing performance of the operating segments of the Company.
The Company has integrated it's organization structure with respect to it's Machinery and Equipment" manufacturing business and all
products being similar there are no predominantly distinct segments and hence Company's reportable business segment consists of a
single segment "Machinery and Equipment in terms of Ind AS-108. The management has disclosed the growth in Export and domestic
segment as under.
b. Dividend paid during the year ended March 31,2026 include an amount of Rs. 6 per equity share of Rs. 10 towards as Final
dividend for the year ended March 31,2025 and Rs. 12.00 per equity share of Rs. 10 towards as interim dividend for the year
ended March 31,2026 aggregating together to Rs. 2,907.864 (Rs. In Lakhs) (previous year Rs. 5 per equity Share, paid as
interim dividend for year ended March, 31,2025 aggregating to Rs. 807.74 (Rs. In Lakhs) during the year 2024-25) Dividends
declared by the Company are based on the profit available for distribution.
c. Effective from November 21,2025, the Government of India consolidated 29 existing labour regulations into four Labour
codes, namely, The Code on Wages, 2019, The Industrial Relations Code, 2020, The Code on Social Security, 2020 and the
Occupational Safety, Health and Working Conditions Code, 2020, collectively referred to as the ‘New Labour Codes’. The
Company has assessed and accounted the incremental impact of these changes on the basis of the information available
and present labour policy of the company. It is assessed that the impact of changes in New Labour Code will not be
significant since the company has since past many years adopted the labour policy in line of the draft Labour code which is
already reflected in costs and expenses. However, the Government of India is in the process of notifying related rules to the
New Labour Code and the impact of these requirements will be evaluated and appropriately accounted as and when notified.
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