(n) Provisions, Contingent Liabilities and Contingent
Assets
(i) Provisions
Provisions are recognized when, based on the Company's present obligation (legal or constructive) as a result
of a past event, it is probable that the Company will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding
the obligation. When a provision is measured using the cash flows estimated to settle the present obligation,
its carrying amount is the present value of those cash flows (when the effect of the time value of money is
material).
(ii) Contingent Liabilities and Assets
Show-cause notices issued by various Government Authorities are generally not considered as obligations.
When the demand notices are raised against such show cause notices and are disputed by the Company,
these are classified as disputed obligations.
The treatment in respect of disputed obligations are as under:
a) a provision is recognized in respect of present obligations where the outflow of resources is probable;
b) all other cases are disclosed as contingent liabilities unless the possibility of outflow of resources is remote.
Contingent liabilities are possible obligations that arise from past events and whose existence will only be
confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control
of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount
cannot be estimated reliably, the obligation is disclosed as a contingent liability. Contingent liabilities are
disclosed on the basis of judgment of the management / independent experts and reviewed at each balance
sheet date to reflect the current management estimate.
Contingent assets are disclosed in the Financial Statements by way of notes to accounts when an inflow of
economic benefits is probable.
(o) Statement of Cash Flow
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of a non-cash nature, 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. The cash flows are segregated
into operating, investing and financing activities.
(p) Segment Reporting
The Company identifies primary segments based on the dominant source, nature of risks and returns and the
internal organisation and management structure. The operating segments are the segments for which separate
financial information is available and for which operating profit / loss amounts are evaluated regularly by the
Chief Operating Decision Making Body (CODM) in deciding how to allocate resources and in assessing
performance.
The accounting policies adopted for segment reporting are in line with the accounting policies of the Company.
(q) Exceptional items :
An ordinary item of income or expense which by its size, nature, occurrence or incidence requires a disclosure in
order to improve understanding of the performance of the Company is treated as an exceptional item in the
Statement of Profit and Loss account
4 Critical Accounting Judgments, Estimates, Assumptions and Key Sources of Estimation Uncertainty
The preparation of the Company's financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities at the date of the financial statements. Estimates and
assumptions are continuously evaluated and are based on management's experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. Uncertainty about
these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount
of assets or liabilities affected in future periods.
(a) Judgements
In the process of applying the Company's accounting policies, management has made the following judgements,
which have the most significant effect on the amounts recognized in the financial statements:
Evaluation of Indicators for Impairment of Property, Plant and Equipment
The evaluation of applicability of indicators of impairment of assets requires assessment of external factors
(significant decline asset's value, significant changes in the technological, market, economic or legal environment,
market interest rates etc.) and internal factors (obsolescence or physical damage of an asset, poor economic
performance of the asset etc.) which could result in significant change in recoverable amount of the Property,
Plant and Equipment.
(b) Assumptions and Estimation Uncertainties
Information about estimates and assumptions that have the significant effect on recognition and measurement
of assets, liabilities, income and expenses is provided below. Actual results may differ from these estimates.
(i) Defined Benefit Obligations
The cost of the defined benefit gratuity plan, the present value of the gratuity obligation and compensated
absences are determined using actuarial valuations. An actuarial valuation involves making various assumptions
that may differ from actual developments in the future. These include the determination of the discount rate,
future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate,
the management considers the interest rates of government bonds in currencies consistent with the currencies
of the post-employment benefit obligation. The mortality rate is based on publicly available mortality tables
for the specific countries. Those mortality tables tend to change only at interval in response to demographic
changes. Future salary increases and gratuity increases are based on expected future inflation rates for the
respective countries.
(ii) Useful lives of Property, Plant and Equipment / Intangible Assets
Property, Plant and Equipment / Intangible Assets are depreciated / amortised over their estimated useful
lives, after taking into account estimated residual value. The useful lives and residual values are based on the
Company's historical experience with similar assets and taking into account anticipated technological changes
or commercial obsolescence. Management reviews the estimated useful lives and residual values of the
assets annually in order to determine the amount of depreciation / amortisation to be recorded during any
reporting period. The depreciation / amortisation for future periods is revised, if there are significant changes
from previous estimates and accordingly, the unamortised / depreciable amount is charged over the remaining
useful life of the assets.
(iii) Contingent Liabilities
In the normal course of business, Contingent Liabilities may arise from litigation and other claims against the
Company. Potential liabilities that are possible but not probable of crystallising or are very difficult to quantify
reliably are treated as contingent liabilities. Such liabilities are disclosed in the Notes but are not recognised.
Potential liabilities that are remote are neither recognised nor disclosed as contingent liability. The management
decides whether the matters need to be classified as 'remote', 'possible' or 'probable' based on expert advice,
past judgements, experiences etc.
(iv) Evaluation of Indicators for Impairment of Property, Plant and Equipment
The evaluation of applicability of indicators of impairment of assets requires assessment of external factors
(significant decline in asset's value, economic or legal environment, market interest rates etc.) and internal
factors (obsolescence or physical damage of an asset, poor economic performance of the idle assets etc.)
which could result in significant change in recoverable amount of the Property, Plant and Equipment and such
assessment is based on estimates, future plans as envisaged by Company.
(v) Allowance for impairment of trade
receivables
The expected credit loss is mainly based on the ageing of the receivable balances and historical experience.
The receivables are assessed on an individual basis or assessed for impairment collectively, depending on
their significance. Moreover, trade receivables are written off on a case-to-case basis if deemed not to be
collectible on the assessment of the underlying facts and circumstances.
(vi) Provisions
Provisions and liabilities are recognised in the period when it becomes probable that there will be a future
outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification of the liability requires the application of judgement
to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and
liabilities are reviewed regularly and revised to take account of changing facts and circumstances.
(vii) Revenue Recognition
The Company's contracts with customers include promises to transfer products and service to the customers.
The Company assesses the products and service promised in a contract and identifies distinct performance
obligations, if any, in the contract. Identification of distinct performance obligation involves judgement to
determine the deliverables and the ability of the customer to benefit independently from such deliverables.
Judgement is also required to determine the transaction price for the contract. The Company exercises
judgement in determining whether the performance obligation is satisfied at a point in time or over time.
The Company considers indicators such as to who controls the asset as it is being created or existence of
enforceable right to payment for performance to date and alternate use of such product, bill and hold
agreements, transfer of significant risks and rewards to the customer, acceptance of delivery by the customer,
etc. The judgment is also exercised in determining the variable consideration, if any, involved in transaction
price.
(Viii) Business Combination
"Acquisition of businesses (except for Business Combinations under Common Control) are accounted for using
the acquisition method. The consideration transferred in a business combination is measured at fair value
which is calculated as the sum of the acquisition date fair values of the assets transferred by the Group,
liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the
Group in exchange of control of the acquiree. Acquisition related costs are generally recognized in consolidated
statement of profit and loss as incurred.
At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognized at their
fair value, except that:
- Deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are
recognized and measured in accordance with Ind AS 12 'Income Taxes' and Ind AS 19 'Employee Benefits'
respectively;
- Assets (or disposal groups) that are classified as held for sale in accordance with Ind AS 105 'Non-current Assets
Held for Sale and Discontinued Operations' are measured in accordance with that Standard.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non
controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the
acquiree (if any) over the net of the acquisition date amounts of the identifiable assets acquired and the
liabilities assumed.
In case of a bargain purchase, before recognising a gain in respect thereof, the Group determines whether
there exists clear evidence of the underlying reasons for classifying the business combination as a bargain
purchase. Thereafter, the Group reassesses whether it has correctly identified all the assets acquired and all
the liabilities assumed and recognises any additional assets or liabilities that are identified in that reassessment.
The Group then reviews the procedures used to measure the amounts that Ind AS requires for the purposes of
calculating the bargain purchase. If the gain remains after this reassessment and review, the Group recognises
it in other comprehensive income and accumulates the same in equity as capital reserve. This gain is attributed
to the acquirer. If there does not exist clear evidence of the underlying reasons for classifying the business
combination as a bargain purchase, the Group recognises the gain, after reassessing and reviewing (as
described above), directly in equity as capital reserve.
When the consideration transferred by the Group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at its
acquisition date fair value and included as part of the consideration transferred in a business combination.
Changes in the fair value of the contingent consideration that qualify as measurement period adjustments
are adjusted retrospectively, with corresponding adjustments against goodwill or capital reserve, as the case
may be. Measurement period adjustments are adjustments that arise from additional information obtained
by the Group during the 'measurement period' about facts and circumstances that existed at the acquisition
date. Measurement period does not exceed one year from the acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as
measurement period adjustments depends on how the contingent consideration is classified. Contingent
consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent
settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is
remeasured at fair value at subsequent reporting dates with the corresponding gain or loss being recognized
in the consolidated statement of profit and loss.
When a business combination is achieved in stages, the Group's previously held equity interest in the acquiree
is remeasured to its acquisition date fair value and the resulting gain or loss, if any, is recognized in the
consolidated statement of profit and loss. Amounts arising from interests in the acquiree prior to the acquisition
date that have previously been recognized in other comprehensive income are reclassified to the consolidated
statement of profit and loss where such treatment would be appropriate if that interest were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which
the combination occurs, the Group reports provisional amounts for the items for which the accounting is
incomplete. Those provisional amounts are adjusted during the measurement period recognising additional
assets or liabilities (if any) to reflect new information obtained about facts and circumstances that existed at
the acquisition date that, if known, would have affected the amounts recognized at that date.
(ix) Share based Option Plan
The Company operates equity settled share- based plan for the employees (Referred to as employee stock option
plan (ESOP)). ESOP granted to the employees are measured at fair value of the stock options at the grant date.
The fair value of employee stock options is determined using the Black-Scholes valuation model. The valuation
incorporates key inputs such as grant date share price, exercise price, expected volatility, expected life, expected
dividends and risk-free interest rate. Such fair value of the equity settled share based payments is expensed on
a straight line basis over the vesting period, based on the Company's estimate of equity shares that will eventually
vest, with a corresponding increase in equity (employee stock option reserve). At the end of each reporting
period, the Company revises its estimate of number of equity shares expected to vest. The impact of the revision
of the original estimates, if any, is recognised in the Statement of Profit and Loss such that cumulative expense
reflects the revision estimate, with a corresponding adjustments to the employee stock option reserve. [Refer
note 39 (a)]
5 Recent pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time.
In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable
w.e.f. April 1, 2025. The Company has reviewed the amendment and based on its evaluation has determined that it
does not have any significant impact in its financial statements.
In August 2025, MCA notified the following amendments to:
(a) Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 - The amendment relates to
classification of liabilities as current or non-current and non-current liabilities with covenants. In the context of
classifying a liability as current, it removes the requirement of existence of a right to defer settlement for at least
12 months after the reporting date and instead requires that the said right should exist on the reporting date and
have substance. The amendment also introduces guidance on classification of liabilities with covenants. The
Company has no impact of these amendments in its classification criteria of current and non-current liabilities.
(b) Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. April 1, 2025
- The amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier finance
arrangements and explain the nature of the arrangements, the carrying amount of liabilities and the range of
been amended to add supplier finance arrangements as a factor that may cause concentration of liquidity risk.
The Company has payment due dates. Ind AS 107 has reviewed the amendment and based on its evaluation
has made the necessary changes in its financial statements.
(c) Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The amendments provide
a temporary mandatory relief from deferred tax accounting for top-up tax and disclose that they have applied
the relief.
The Company has reviewed the amendment and based on its evaluation has determined that it does not
have any significant impact in its financial statements.
7(b) The Company has investment of Rs. 4.09 Cr in 1,90,500 equity shares. The Company has total outstanding balance of
Receivable is Rs.14.14 Cr as on March 31, 2026. As on 31st March 2026, outstanding balance for capital advance is Rs. 14.00
Cr for procurement of capital goods under proposed expansion plan at Changodar plant The company has carried out
impairment testing on its investment based on book values of net assets as at 31st March 2026 of SEPL.
7(c) The Company has investment in TARIL Switchgear Private Limited (TSPL) is Rs 0.17 Cr (P.Y. 0.17 Cr) in 28,000 equity
share.The company has carried out impairment testing on its investment based on book values of net assets as at 31st
March 2026 of TSPL.
7(d) The Company has inverstment in Triveni Transtech (India) Private Limited (formerly known as Posco Poggenamp
Electrical Steel Private Limited) ("Triveni") and representing 51.00% of the equity share capital for cash consideration of
Rs. 12.81 Cr (@ Rs. 9.30 per share) in Equity share 1,37,70,000 ,pursuant to which, the Company has obtained control over
Triveni with effect from January 28, 2025 ("acquisition date").
7(e) The amount of Rs 0.32 Cr (P.Y. Rs 0.32 Cr) shown as deemed equity investments denotes the fair value of financial
guarantee given for Transpares Limited without any consideration.
7(f) The amount of Rs 0.09 Cr (P.Y. Rs 0.09 Cr) shown as deemed equity investments denotes the fair value of financial
guarantee given for TARIL Infrastructure Limited without any consideration.
20(d) Right, Preferences and restrictions attached to Equity Shares
The company has only one class of equity shares having a par value of Rs. 1 per share. Each shareholder is eligible for
one vote per share held. The final dividend, whenever proposed by the Board of Directors is subject to approval of the
shareholders in ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the
Company, the equity share holders are eligible to receive the residual assets of the Company after distribution of all
preferential amounts, in proportion to their shareholding.
20(e) Shares issued for consideration other than cash:
The Company has issued 15,00,82,917 bonus shares of face value of Rs. 1 each during the year ended March 31st 2025, in
the ratio of 1 bonus share for every 1 share held from out of Securities Premium Reserve in terms of the approval by
shareholders in their Extra Ordinary General meeting held on February 03, 2025.
20 (f) During the year ended March 31st 2025, the Company increaded the paid up capital by Rs. 500 Cr through Qualified
Institutions Placement of equity shares. The Allotment Committee of the Board of Directors of the Company, at its
meeting held on June 14, 2024, approved the allotment of 75,18,796 Equity Shares of face value Rs. 1 each to eligible
investors at a price Rs. 665 per equity share including premium of Rs. 664 per equity share.
20 (g) The Company had allotted 1,00,00,011 Equity Shares on 13th October,2023 at a price of Rs. 120/- per Equity Share (at
premium of Rs. 119 per Equity Share) by way of a preferential issue on a private placement basis after shareholder
approval at Extra-Ordinary General Meeting held on 6th October, 2023 and In-Principal approval of Both Stock
Exchanges i.e BSE Limited and National Stock Exchange of India Limited received as on 12th October, 2023.
21(b) Securities Premium is the amount of premium over face value of equity shares issued . The reserve shall be utilized in
accordance with the provision of the Companies Act, 2013.
21(c) The General Reserve is the amounts of profit transferred from retained earnings for appropriation purposes.
21(d) Share based payment reserve represents the fair value of the stock options granted by the Company under the TARIL
Employee Stock Option Plan 2024 accumulated over the vesting period. The reserve will be utilized on exercise of
the options.
27(a) Secured Loans comprise of cash credit & short term loans from banks which are secured by hypothecation of current
assets of the Company on pari passu basis and collaterally secured by residual value of net fixed assets of the Company
excluding fixed assets of Moraiya plant. The facilities are further secured by collateral charge on pari passu basis on
immovable properties situated at Changodar, Moraiya and Odhav at Ahmedabad and Commercial office at
Gurugram. It is further secured by pledge of 4,22,00,000 equity shares of Rs. 1 each held by a director and personal
guarantee of some of the directors.
27(b) The Company has availed borrowings from a bank against the security of its current assets. In the quarterly returns
submitted to bank, the stock shown in the statement are not in agreement with the books of accounts due to the
exclusion of stock lying with job workers, sales recorded on dispatch being considered as goods-in-transit, and certain
pending reconciliation entries. In case of debtors shown in the statements are not in agreement with the books of
accounts due to exclusion of overdue receivables, related party balances and sales recorded on dispatch being
considered as goods-in-transit. In case of current liabilities shown in the statement are not in agreement with the
books of account due to provision for various expenses are accounted subsequently at the time of completion of
quarterly financial results, related party balances and certain pending reconciliation entries.
27(c) Supplier Finance Arrangement :
The company has arranged a Supplier finance arrangement from various banks and third party financing platforms to
facilitate suppliers who are willing to get their bills (duly accepted by the company) discounted.These arrangements
involve the recourse to the Company.
46 Employee Benefit Plans
In accordance with the stipulations of the Indian Accounting Standard 19 “Employee Benefits”, the disclosures of
employee benefits as defined in the Indian Accounting Standard are given below:
(a) Defined Contribution Plan
The Company has recognized an amount of Rs. 1.36 Cr (P.Y. Rs. 1.34 Cr) as expenses under the defined contribution
plan in the Statement of Profit and Loss.
(b) Defined Benefit Plan
Gratuity
General description and benefits of the plan
Under the gratuity plan, the eligible employees are entitled to post retirement benefit at the rate of 15 days salary for
each completed year of service. Vesting period is 5 years and the payment is at actual on superannuation,
resignation, termination, disablement or on death. The liability for gratuity as above is recognized on the basis of
actuarial valuation.
The Company makes contribution to Life Insurance Corporation (LIC) and IndiaFirst Life Insurance for gratuity benefits
according to the Payment of Gratuity Act, 1972.
The Company recognizes the liability towards the gratuity at each Balance Sheet date.
The most recent actuarial valuation of the defined benefit obligation for gratuity was carried out at 31st March 2026 by an
actuary. The present value of the defined benefit obligations and the related current service cost and past service cost,
were measured using the Projected Unit Credit Method, which recognizes each period of service as giving rise to
additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Scheme is
funded through LIC, Canara Bank and IndiaFirst.
Major Risks to the Plan
(i) Actuarial Risk
It is the risk that benefits will come more than expected. This can arise due to one of the following reasons:
Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is
higher than expected.
Actual Mortality rates are higher than assumed mortality rate assumption than the Gratuity benefits will be paid earlier
than expected. Since there is no condition of vesting on the death benefit, the acceleration of Cashflow will lead to an
actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.
The actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity benefits will be paid
earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.
(ii) Investment Risk
The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the
market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate,
it will create a plan deficit.
(iii) Interest Risk
A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in
the return on the plan's debt investments.
(iv) Longevity Risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants both during and after their employment. An increase in the life expectancy of the plan participants
will increase the plan's liability.
(v) Salary Risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the plan's liability.
(vi) Liquidity Risk
Employees with long duration and high salaries resign earlier than expected or in short span of time there may be
liquidity concern for the Gratuity fund.
(vii) Legislative Risk
Changes benefit formula mentioned in Gratuity Act, especially an increase in upper limit could very significantly
increase the amount of Obligation.
(viii) Market Risk
Discount rates are to be based on the yield on Government bonds with tenures matching the expected payments of
Gratuity Liability. Discount rate will have to be reduced if yields drop and this would result in an increase in Obligation.
The following table sets out the status of the gratuity and the amounts recognized in the Company's financial
statements as at 31st March 2026.
The principal assumptions used for the purposes of the actuarial valuations were as follows.
(e) The company provides service type warranty to its customers, such type of warranty are considered as distinct service.
The company uses expected value method in measuring the performance obligation. The revenue from contracts
with customers for the year includes service type warranty of Rs. 8.81 Cr (Previous Year Rs. 7.36 Cr), which has been
deducted from the transaction price.
(f) The revenue from contracts with customers for the year includes variable consideration relating to price variation of
Rs. 149.70 Cr (Previous Year Rs. 85.55 Cr), which has been considered in the transaction price. There were no significant
financing component in the contracts with customers or in revenues recognised from these contracts.
(g) Performance obligations
Sale of Transformers
The performance obligation is satisfied upon delivery of the equipment and payment is generally due within 1 to 3
months from delivery.
The performance obligation to deliver the transformer with a manufacturing lead time of 4 to 8 months has a single
payment option. The customer can pay the transaction price upon delivery of the transformer within the credit
period, as mentioned in the contract with respective customers.
Services Income
The performance obligation is satisfied at the point in time and payment is generally due upon completion of
installation and acceptance by the customers.
50 Operating Segment
The Company primarily operates in the segment of Manufacturing of Transformers. The Chairman and Wholetime
Director/Managing Director of the Company allocate resources and assess the performance of the Company, thus are the
Chief Operating Decision Maker (CODM). The CODM monitors the operating results of the business as a one, hence no
separate segment need to be disclosed.
All non current assets are located in the company's country of domicile.
One customer contributed 10% or more to the company's revenue for FY 2025-26 amounting to Rs 901.29 Cr and for
FY 2024-25 amounting to Rs 649.65 Cr.
52 The Company has long-term contracts as at 31st March 2026 for which there are no material foreseeable losses.
The company did not have any derivative contracts as at 31st March 2026.
53 Financial Instruments Disclosure
Capital Management
For the purpose of the Company's Capital Management, Capital includes issued Equity Capital and all Other Reserves
attributable to the Equity shareholders of the Company. The Primary objective of the Company's Capital Management is
to maximise the shareholders' value. The Company's Capital Management objectives are to maintain equity including all
reserves to protect economic viability and to finance any growth opportunities that may be available in future so as to
maximise shareholder's value. The Company is monitoring Capital using debt equity ratio as its base, which is total debt
divided by total equity.
(ii) Fair Value Measurement:
This note provides information about how the Company determines fair values of various financial assets.
Fair value of the Company's financial assets that are measured at fair value on a recurring basis
Some of the Company's financial assets are measured at fair value at the end of each reporting period. The following table
gives information about how the fair values of these financial assets are determined.
Fair Value of financial assets and liabilities that are not measured at fair value (but fair value disclosures are required)
Management considers that the carrying amounts of financial assets and financial liabilities recognized in the financial
statements approximate their fair values.
Level 1 - Quoted market prices in active market for identical assets or Liabilities.
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
(iii) Financial Risk Management Objectives
While ensuring liquidity is sufficient to meet Company's operational requirements, the Company's Board of Directors also
monitors and manages key financial risks relating to the operations of the Company by analysing exposures by degree
and magnitude of risks. These risks include market risk (including currency risk and price risk), credit risk and liquidity risk.
Market Risk
Market risk is the risk of uncertainty arising from possible market price movements and their impact on the future
performance of a business. The major components of market risk are commodity price risk, foreign currency risk and
interest rate risk.
The primary commodity price risk that the company is exposed to include the price variations in the price of Copper and
Cold Rolled Grain Oriented Steel (CRGO). The mentioned components form a major part of manufacturing of
Transformers. The prices of these commodities lead to increase/ decrease in the cost of Transformers.
Foreign Currency Risk Management
The Company undertakes transactions denominated in different foreign currencies and consequently exposed to
exchange rate fluctuations. Exchange rate exposures are managed within approved policy parameters.
Sensitivity to risk
A 5% strengthening of the INR against key currencies to which the Company is exposed would have led to approximately an
additional Rs 0.26 Cr gain in the Statement of Profit and Loss. A 5% weakening of the INR against these currencies would have
led to an equal but opposite effect of Rs 0.26 Cr.
Interest Rate Risk
It is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt
obligations with floating interest rates.
Price Risk
The Company has deployed its surplus funds into units of mutual fund. The Company is exposed to NAV (net asset value)
price risks arising from investments in these funds. The value of these investments is impacted by movements in liquidity and
credit quality of underlying securities.
NAV price sensitivity analysis
The Sensitivity analyses below have been determined based on the exposure to NAV price risks at the end of the reporting
period. If NAV prices had been 1% higher/lower :
Profit for the year ended 31st March 2026 would increase/decrease by Rs. 1.51 Cr (Previous Year Rs. 2.38 Cr ).
Liquidity Risk
The Company manages liquidity risk by maintaining sufficient cash and cash equivalents and availability of funding through
an adequate amount of committed credit facilities to meet the obligations when due. Management monitors rolling
forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity
management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by
matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with
agreed repayment periods. The information included in the tables have been drawn up based on the undiscounted cash
flows of financial liabilities based on the earliest date on which the Company may be required to pay. The tables include both
interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be
required to pay.
Credit Risk
The Company's customer profile include Government Companies and Industries. Accordingly, the Company's customer
credit risk is moderate. The Company has a detailed review mechanism of overdue customer receivables at various levels
within organization to ensure proper attention and focus for realization.
An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large
number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company
applies Simplified approach for providing the expected credit losses on Trade Receivables as per the accounting policy of the
company.
54 "The borrowing cost capitalised [net of income of Rs. 1.76 Cr (previous year Rs. 0.27 Cr) from temporary deployment of
borrowed funds] during the year is Rs. 4.87 Cr (previous year Rs. 3.03 Cr).
The capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 9.5%"
55 Relationship with Struck off Companies
The Company has not carried out any transactions with companies struck off under Section 248 of the Companies Act,
2013 or Section 560 of the Companies Act, 1956. There is no outstanding balance as at 31st March 2026 in case of said
struck off company.
56 Compliance with number of layers of companies:
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017
57 Compliance with approved Scheme(s) of Arrangements
The Company has not applied for any Scheme of Arrangements under Sections 230 to 237 of the Companies Act, 2013.
58 The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Group for holding any Benami property.
59 Utilisation of Borrowed funds and share premium
Details of Funds advanced or loaned or invested by Company
The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of 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
(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;
60 Details of funds received by Company
The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the company shall
(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.
61 Undisclosed Income
During the year under consideration, no tax assessment under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961) has been initiated/ongoing by the Income Tax Department.
62 Wilful Defaulter
The Company is not declared as wilful defaulter (as defined under the Companies Act, 2013) by any Bank or Financial
Institution or other lender.
64 The Company has assessed internal and external information upto the date of approval of these audited financial
results while reviewing the recoverability of assets, adequacy of financial resources, performance of contractual
obligations, ability to service the debt & liabilities, etc. Based on such assessment, the company expects to fully recover
the carrying amounts of the assets and comfortably discharge its debts & obligations. Hence, the management does
not envisage any material impact on the Audited standalone financial results of the company for the quarter and year
ended March 31,2026.
65 Figures of corresponding previous year have been regrouped /rearranged wherever necessary, to make them
comparable.
66 The Standalone Financial Statements were approved for issue by the Board of Directors on 21th April, 2026.
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