g. Provision & Contingent Liabilities
The Company creates a provision when there is a present obligation as a result of past events and it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be
made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation
or a present obligation that may, but probably will not, require an outflow of resources. When the likelihood of outflow of
resources is remote, no provision or disclosure is made.
h. Revenue recognition
The Company derives revenues primarily from the sale of goods, products, and related services.
Revenue from contracts with customers is recognized upon transfer of control of promised products or services to customers
in an amount that reflects the consideration the Company expects to receive in exchange for those products or services.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net
of variable consideration on account of various discounts offered by the Company as part of the contract.
(i) Revenue from sales of goods and services:
Revenue from sales of goods & services is recognized on an accrual basis in the year in which the goods & services are
rendered at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
those goods or services. The timing of when the Company transfers the goods or provides services may differ from the
timing of the customer's payment.
Amounts disclosed as revenue are net of goods and service tax (GST).
Revenue from the sale of goods is recognized at the point in time when control is transferred to the customer.
Generally, the credit period varies between 0-90 days from satisfaction of performance obligations.
(ii) Dividends:
Dividends are recognized in the Statement of Profit and Loss only when the right to receive payment is established.
(iii) Other income:
The Company recognizes income on an accrual basis. However, where the ultimate collection of the same lacks
reasonable certainty, revenue recognition is postponed to the extent revenue is reasonably certain and can be reliably
measured.
i. Leases
The Company as a lessee
The Company's lease asset classes primarily consist of leases for land and buildings. The Company assesses whether a
contract contains a lease at the inception of a contract.
At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and a corresponding lease
liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term
leases) and low-value leases. For these short-term and low-value leases, the Company recognizes the lease payments as an
operating expense on a straight-line basis over the term of the lease.
The lease term includes extension or termination options when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost and subsequently measured at cost less accumulated depreciation
and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term
and the useful life of the underlying asset.
The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted
using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rate. Lease
liabilities are remeasured with a corresponding adjustment to the related right-of-use asset if the Company changes its
assessment of whether it will exercise an extension or a termination option.
The Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset
are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease term.
j. Retirement and other employee benefits
Short term employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by
employees is recognized as an expense during the period when the employees render the services.
Post-employment benefits
Defined benefit plans
The Company pays gratuity to eligible employees. The gratuity is calculated at 15 days' wages for every completed year of
service, in accordance with the Code on Social Security, 2020, and utilizing the Code's revised definition of wages.
The liability in respect of gratuity and other post-employment benefits is calculated using the projected unit credit method
and spread over the period during which the benefit is expected to be derived from employees' services.
Actuarial gains/losses of defined benefit plans in respect of post-employment are charged to the other comprehensive
income.
Defined contribution plans
Payments to defined contribution retirement benefit plans, viz., provident fund for certain eligible employees and pension
fund, are recognized as an expense when employees have rendered the service entitling them to the contribution.
k. Share based payment
The stock options granted to employees under the Company's stock options schemes are measured at the fair value of the
options at the grant date. The fair value of the options is treated as a discount and accounted as employee compensation
cost over the vesting period on a straight-line basis. The amount recognized as an expense in each year is arrived at based
on the number of grants expected to vest. If a grant lapses after the vesting period, the cumulative discount recognized as
an expense in respect of such grant is transferred to the general reserve within equity.
l. Income taxes
Income tax expenses comprise current tax and deferred tax charge or credit.
Current tax is measured on the basis of estimated taxable income for the current accounting period in accordance with the
applicable tax rates and the provisions of the Income-tax Act, 1961 and other applicable tax laws.
Deferred tax is provided on all temporary differences at the reporting date between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are measured at the tax rates
that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted
or substantively enacted at the reporting date. Tax relating to items recognized directly in equity or OCI is recognized in
equity or OCI and not in the statement of profit and loss.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets,
and they relate to income taxes levied by the same tax authority, but they intend to settle current tax liabilities and assets
on a net basis or their tax assets and liabilities will be realized simultaneously.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which
the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the
extent that it is no longer probable.
m. Earnings per share
The basic earnings per share ("EPS") is computed by dividing the net profit/(loss) after tax for the year attributable to the
equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year attributable to the equity
shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares.
n. Foreign currency transactions
In preparing the financial statements of the Company, transactions in currencies other than the Company's functional
currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the
end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at
that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates
prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange rate as at the date of initial transaction.
Exchange differences on monetary items are recognized in the statement of profit and loss in the period in which they arise
except for:
Exchange differences on foreign currency borrowings relating to assets under construction for future productive use,
which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those
foreign currency borrowings;
Exchange differences relating to qualifying effective cash flow hedges and qualifying net investment hedges in
foreign operations.
o. Financial instruments
Financial assets and financial liabilities are recognized when a company becomes a party to the contractual provisions of
the instruments.
Initial recognition:
The Company recognizes a financial asset in its financial statements when it becomes party to the contractual provisions of
the instrument. All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair
value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial assets. However,
trade receivables that do not contain a significant financing component are measured at transaction price.
All financial liabilities at initial recognition are classified as financial liabilities at amortized cost or financial liabilities at fair
value through profit or loss, as appropriate. All financial liabilities classified at amortized cost are recognized initially at fair
value net of directly attributable transaction costs. Any difference between the proceeds (net of transaction costs) and the
fair value at initial recognition is recognized in the statement of profit and loss or in the capital work-in-progress, if another
standard permits inclusion of such cost in the carrying amount of an asset over the period of the borrowings using the
effective interest rate ('EIR') method.
Classification and subsequent measurement: financial assets
The Company classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive
income ('"'FVOQ"") or fair value through profit or loss (""FVTPL"") on the basis of the following:
a. The entity's business model for managing the financial assets; and
b. The contractual cash flow characteristics of the financial asset.
Amortized cost:
A financial asset shall be classified and measured at amortized cost if both of the following conditions are met:
a. The financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows; and
b. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Fair value through OCI:
A financial asset shall be classified and measured at fair value through OCI if both of the following conditions are met:
a. The financial asset is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets; and
b. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding
Fair value through profit or loss:
A financial asset shall be classified and measured at fair value through profit or loss unless it is measured at amortized cost
or at fair value through OCI.
All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending
on the classification of the financial assets.
Impairment of financial assets
The Company assesses on a forward-looking basis the expected credit losses associated with its financial assets carried
at amortized cost (for example, trade receivables and bank balances). The impairment methodology applied depends on
whether there has been a significant increase in credit risk and if so, assesses the need to provide for the same in the
statement of profit and loss.
The Company follows the 'simplified approach' for recognition of impairment loss allowance on trade receivables and all
lease receivables.
Classification and subsequent measurement: financial liabilities
Financial liabilities are classified as either financial liabilities at FVTPL or amortized cost.
Financial liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial
recognition as FVTPL.
Gains or losses on liabilities held for trading are recognized in the statement of profit and loss.
Amortized cost:
Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortized
cost using the effective interest method.
The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter
period, to the net carrying amount on initial recognition.
p. Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with banks that
are readily convertible into cash, which are subject to insignificant risk of changes in value and are held for the purpose of
meeting short-term cash commitments.
q. Financial liabilities and equity instruments
Classification as debt or equity:
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity instruments:
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by a company are recognized at the proceeds received.
r. Derivative financial instruments
The Company enters into derivative financial instruments, viz., foreign exchange forward contracts, to manage its exposure
to foreign exchange rate risks. The Company does not hold derivative financial instruments for speculative purposes.
Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently
remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss
immediately, excluding derivatives designated as cash flow hedges.
s. Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated
using another valuation technique. In estimating the fair value of an asset or a liability, the company takes into account
the characteristics of the asset and liability if market participants would take those into consideration. Fair value for
measurement and/or disclosure purposes in these financial statements is determined on such basis. Normally, at initial
recognition, the transaction price is the best evidence of fair value.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All financial assets and financial liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the
fair value measurement as a whole:
Level 1: Quoted (unadjusted) market prices in active markets 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.
For financial assets and financial liabilities that are recognized at fair value on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting
period.
t. Current versus non current classification
The Company presents assets and liabilities in the balance sheet based on current/non-current classification.
i) An asset is current when it is:
a. Expected to be realized or intended to be sold or consumed in the normal operating cycle,
b. Held primarily for the purpose of trading,
c. Expected to be realized within twelve months after the reporting period, or
d. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.
All other assets are classified as non-current.
ii) A liability is current when:
a. It is expected to be settled in the normal operating cycle,
b. It is held primarily for the purpose of trading,
c. It is due to be settled within twelve months after the reporting period, or
d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.
All other liabilities are classified as non-current.
iii) Deferred tax assets and liabilities are classified as non-current assets and liabilities.
iv) The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash
equivalents.
D. Critical accounting judgements 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. 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.
Key assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year,
are described below. The Company based its assumptions and estimates on parameters available when the financial statements
were prepared. Existing circumstances and assumptions about future developments, however, may change due to market
changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions
when they occur.
i) Useful lives of property, plant & equipment
The Company uses its technical expertise along with historical and industry trends for determining the economic life of an
asset/component of an asset. The useful lives are reviewed by management periodically and revised, if appropriate. In case
of a revision, the unamortized depreciable amount is charged over the remaining useful life of the assets.
ii) Lease term of right-to-use assets
Management reviews its estimate of the lease term of right-to-use assets at each reporting date, based on the expected
utility of the leased property. Uncertainties in this estimate relate to business obsolescence/discontinuance that may
change the lease term for certain right-to-use assets.
iii) Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques including the discounted cash
flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a
degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity
risk, credit risk and volatility.
iv) Defined benefit plans
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation 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.
v) Allowances for credit losses on receivables
The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current
and estimated future economic conditions. The Company considered current and anticipated future economic conditions
relating to industries the Company deals with and the countries where it operates.
vi) Provisions
Provisions and liabilities are recognized 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) Impairment of non-financial assets
For calculating the recoverable amount of non-financial assets, the company is required to estimate the value-in-use of
the asset or the cash generating unit and the fair value less costs to disposal. For calculating value in use, the company is
required to estimate the cash flows to be generated from using the asset. The fair value of an asset is estimated using a
valuation technique where observable prices are not available. Further, the discount rate used in value in use calculations
includes an estimate of risk assessment specific to the asset.
viii) Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss
rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation,
based on the Company's past history, existing market conditions as well as forward-looking estimates at the end of each
reporting period.
ix) Share-based payment
The Company reviews the share-based payment expenses at each reporting date for the estimates pertaining to number of
options that will be exercised by the employees and number of options that will lapse. Significant management judgement
is required to determine the same.
E. Recent Accounting Pronouncements and Amendments to Ind AS
The Ministry of corporate Affairs ("MCA") notified amendments on 07th May, 2025 and 13th August, 2025 under the Companies
(Indian Accounting Standards) Amendment Rules, 2025 and the Companies (Indian Accounting Standards) Second Amendment
Rules, 2025, respectively, which is effective from annual reporting periods beginning on or after 01st April, 2025.
(a) Amendment to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangement
The amendments to Ind AS 7 'Statement of Cash Flows' and Ind AS 107 'Financial Instruments: Disclosures' clarify the
characteristics of supplier finance arrangements and require additional disclosures for such arrangements. The disclosure
requirements in the amendments are intended to assist users of financial statements in understanding the effects of
supplier finance arrangements on an entity's liabilities, cash flows and exposure to liquidity risk. The supplier finance
arrangements during the financial year have been suitably disclosed.
(b) Amendment to Ind AS 1 - Classification of liabilities as current or non-current and non-current liabilities with
covenants:
The amendment specifies the requirements for classifying liabilities as current or non-current in the balance sheet, and
clarifies the following:
(i) An entity's right to defer settlement of a liability for at least twelve months after the reporting period must have
substance and must exist at the end of the reporting period. The classification of a liability as current or non-current
is unaffected by the likelihood that the entity will exercise its right to defer settlement.
(ii) If an entity's right to defer settlement of a liability is subject to covenants, such covenants affect whether that right
exists at the end of the reporting period only if the entity is required to comply with the covenant on or before the
end of the reporting period.
(iii) In case of a liability that can be settled, at the option of the counterparty, by the transfer of the entity's own equity
instruments, such settlement terms do not affect the classification of the liability as current or non-current only if the
option is classified as an equity instrument.
These amendments have no effect on the measurement of any items in the financial statements of the Company. The
Company do not make retrospective adjustments as a result of adopting the amendments to Ind AS 1.
(c) Amendment to Ind AS 12 - Pillar-Two Tax Reforms:
The Company is not within the scope of the OECD Pillar Two Model Rules.
This assessment is based on currently available information and interpretations of the Pillar Two Rules which are evolving.
The Company continues to monitor development in tax legislations and guidance across relevant jurisdictions and the
actual impact, if any, may differ in future periods.
(d) Amendment to Ind AS 21 - Lack of exchangeability:
The Amendments introduces requirement to assess when a currency is exchangeable into another currency and when
it is not. The amendment requires an entity to estimate the spot exchange rate when it concludes that a currency is not
exchangeable into another currency. These amendments had no effect on the financial statements of the Company.
Management Assessment:
The adoption of these amendments to the extend applicable did not have a material impact on the financial statements of
the Company.
d. Terms/rights attached share capital:
The Company has only one class of equity shares having a par value of ' 1 per share. Each holder of equity shares is
entitled to one vote per share and dividend per share on a pari passu basis. The Company declares and pays dividends in
Indian rupees. The dividend proposed by the board of directors (except interim dividend) is subject to the approval of the
shareholders in the ensuing annual general meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of
the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.
a. Terms and nature of security:
Working capital facilities from Axis Bank, HDFC Bank & Kotak Bank are secured by first pari-passu charge on all existing &
future current assets & tangible property, plant and equipment of the Company (other than vehicles). The Company has
also provided collateral security of factory land and building at Jhagadia, Gujarat and Hatkanangale, Maharashtra. The rate
of interest ranges between 8.00% to 9.10% [Previous year: 8.96% to 9.80%].
*In Previous year, a fire incident occurred on 3rd January 2025 at Building No. 2, Hatkanangle, Kolhapur, which was let out. There is no impact on
the business and functions of the Company, and the property is fully insured.
39 FAIR VALUATIONa. Accounting classification and fair values
The following table shows the carrying amounts and level wise fair values of financial assets and financial liabilities. It does
not include the fair value information for financial assets and financial liabilities if their carrying amount is a reasonable
approximation of fair value.
b. Measurement of fair values
Valuation techniques and significant unobservable inputs
The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other
current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current transaction
between willing parties.
40 CAPITAL MANAGEMENT
For the purpose of the Company's Capital Management, capital includes Issued Equity Capital, Securities Premium, and all other
Equity Reserves attributable to the Equity Holders of the Company. The primary objective of the Company's Capital Management
is to maximise the Shareholder's wealth.
In addition, the Company has financial covenants relating to the some of the borrowing facilities that it has to maintain Aggregate
Tangible Net Worth which is maintained by the Company.
Gearing Ratio
I n order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that its
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been
no breaches in financial covenants of any interest-bearing loans and borrowings in the currency period.
No changes have been made in the objectives, policies and processes for managing capital during the years ended 31st March,
2026 & 31st March, 2025.
41 FINANCIAL RISK MANAGEMENT:
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of
these financial liabilities is to finance the operations of the Company. The principal financial assets include trade and other
receivables, cash and short term deposits.
The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.
i) Market Risk:
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main market
risk is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial
instrument, as a result of interest rates, foreign exchange rates and other price risks. Financial instruments affected by market
risks, primarily include loans and borrowings, investments and foreign currency receivables, payables and borrowings.
a) Interest rate risk:
The Company borrows funds in Indian Rupees and Foreign currency, to meet both the long term and short term
funding requirements. The Interest rate risk in terms of Foreign currency is managed through available financial
instruments. Interest on Short term borrowings is subject to floating interest rate and are repriced regularly. The
sensitivity analysis detailed below have been determined based on the exposure to variable interest rates on the
average outstanding amounts due to bankers over a year.
If the interest rates had been 1% higher/lower and all other variables held constant, the company's profit for the year
ended 31st March, 2026 would have been decreased/increased by ' 4.41 Lakhs (Previous Year - ' 5.12 Lakhs).
b) Foreign currency risk:
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in
foreign exchange rates. The Company enters into forward exchange contracts to hedge its foreign currency exposures.
Foreign currency risks from financial instruments at the end of the reporting period expressed in
c) Price risks
The Company's revenue are generated from both domestic and export sales. As most of the products including
raw material and traded goods are imported, any volatility in the price and exchange rate are easily passed on to
the customers. The Company has a risk management policy in place to prudently manage the risk arising from the
volatility in exchange and commodity prices.
ii) Credit Risk
Credit Risk is the risk that a counterparty may default on its contractual obligations resulting in a financial loss to the
Company. It arises from credit exposure to customers, financial instruments viz., Investments in Equity Shares, Debt Funds
and Balances with Banks.
The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low
credit risk.
The Company limits its exposure to credit risk by generally investing only with counterparties that have a good credit
rating. The Company does not expect any losses from non-performance by these counterparties, and does not have any
significant concentration of exposures to specific industry sectors or specific country risks.
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the industry and country in which the customer operates,
also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits
and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal
course of business. The outstanding trade receivables due for a period exceeding 180 days as at the year end is 1.19%
(Previous Year: 0.57%) of the total trade receivables. The company uses Expected Credit Loss (ECL) Model to assess the
impairment loss or gain.
iii) Liquidity Risk:
The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings facilities
by continuously monitoring forecasts and actual cash flows.
The Company has obtained fund and non-fund based working capital lines from banks. The Company monitors funding
options available in the debt and capital markets with a view to maintaining financial flexibility. All payments are made
along due dates and requests for early payments are entertained after due approval and availing early payment discounts.
The Company has a system of forecasting rolling one month cash inflow and outflow and all liquidity requirements are
planned.
Exposure to liquidity risk:
44 EMPLOYEE BENEFITSa. Defined Benefit Plans:Gratuity
The gratuity payable to employees is based on the employee's service and last drawn salary at the time of leaving the
services of the Company and is in accordance with the rules of the Company for payment of gratuity.
Inherent Risk:
The plan is defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining
to the plan. In particular, this exposes the Company to actuarial risk such as adverse salary growth, change in demographic
experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits
to employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risks.
Gratuity is payable as per company's scheme as detailed in the report.
Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI). All above
reported figures of OCI are gross of taxation.
Salary escalation & attrition rate are considered as advised by the Company; they appear to be in line with the industry
practice considering promotion and demand & supply of the employees.
Maturity Analysis of Benefit Payments is undiscounted cash flows considering future salary, attrition & death in respective
year for members as mentioned above.
Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation. Weighted Average
Duration of the Defined Benefit Obligation is the weighted average of cash flow timing, where weights are derived from
the present value of each cash flow to the total present value.
45 IMPACT OF THE IMPLEMENTATION OF NEW LABOUR CODES
The Government of India has implemented the four new Labour Codes, including the Code on Wages, 2019, and the Code
on Social Security, 2020, which came into effect on 21st November, 2025. These Codes have introduced a revised definition of
'wages', mandating that specific components (Basic Pay, Dearness Allowance, and Retaining Allowance) must constitute at least
50% of the total remuneration for the purpose of computing employee benefits. Additionally, the Codes have expanded the
eligibility criteria for gratuity, notably including fixed-term and contractual employees upon completion of one year of service.
I n accordance with the Institute of Chartered Accountants of India (ICAI) guidance and Ind AS 19 (Employee Benefits), the
Company has evaluated the financial impact of these legislative changes. The resultant increase in the Defined Benefit Obligation
(DBO) for Gratuity, amounting to ' 33.43 Lakhs, has been recognized as a 'Past Service Cost'.
This expense has been recognized under 'Employee Benefit Expenses' in the Statement of Profit and Loss for the year ended
31st March, 2026.
46 SHARE BASED PAYMENTS
The Company grants ESOP to Senior Management employees in accordance with the terms of the Plan.
(a) Description of the ESOP plan (graded vesting) that existed during the period:
The Company has granted share based incentives to certain employees on 13th August, 2021 for which approval received
from SEBI on 01st December, 2022 under BRIL Employee Stock Options Scheme 2020 ("BRIL ESOS 2020") approved by
Nomination and Remuneration Committee (NRC). As per the scheme, the number of options that will be granted is based
upon length of service, grades, salary cost of the employee to the Company, performance appraisals and/or any other
factors as determined by NRC. The options granted under this scheme is exercisable by employees within one year from
date of its vesting. The Company has granted options at an exercise price of ' 134.22/-. Option granted will vest in the ratio
of 30:30:40 each year starting from 2nd year from date of grant up to 4th year from date of grant.
Note:
i. The above related party transaction is as disclosed by the management and relied upon by auditor.
ii. Post employment benefits and long term employee benefits are determined on the basis of actuarial valuation for the
Company as a whole and hence segregation is not available.
iii. The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions.
Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been
no guarantees provided or received for any related party receivables or payables. For the year ended 31st March, 2026,
the Company has not recorded any impairment of receivables relating to amounts owed by related parties (Previous
Year: Nil). This assessment is undertaken each financial year through examining the financial position of the related
party and the market in which the related party operates.
Note:
i. The Company has received demand notices from various tax authorities which are being contested. Based on legal advice
and the merit of the cases, the management is of the view that the demands are likely to be dropped/deleted, and hence
no provision has been made in the books.
ii. It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of
the respective proceedings as it is determinable only on receipt of judgments/decisions pending with various forums/authorities.
50 SEGMENT REPORTING:
In accordance with Ind AS 'Operating Segment', segment information has been given in the consolidated financial statements,
and therefore, no separate disclosure on segment information is given in these financial statements.
51 CORPORATE SOCIAL RESPONSIBILITY (CSR):
The detail of amount required to be spent under Section 135 of the Companies Act, 2013 is as follows:
52 Some of the suppliers have sent their intimations of them being the Micro, Small and Medium Enterprises under the Micro,
Small and Medium Enterprises Development Act, 2006. However, there were no amounts payable at the year end together with
interest paid/payable beyond the stipulated period as required under the said Act.
In respect of other suppliers, the Company has not received any intimation regarding their status under the Micro, Small and
Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together
with interest paid/payable as required under the said Act have not been given to that extent.
Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of
information collected by the management. This has been relied upon by auditor.
59 DIVIDEND
The Company has declared a final dividend of ? 1.25 per fully paid share for the financial year 2025-2026. These dividends will be
recognized once they are paid.
60 AUDIT TRAIL
In accordance with rule 3(1) of the Companies (Accounts) Rules 2014, the Company uses accounting software that records an
audit trail of every transaction, including an edit log of each change made in the books of account along with the date of
the change. This audit trail feature has been operational throughout the year and has not been tampered with. However, for
accounting softwares, the audit trail feature was not enabled for databases during the year. The Company has established and
maintained an adequate internal control framework and, based on its assessment, believes that this framework was effective as
of 31st March, 2026.
61 RESEARCH AND DEVELOPMENT EXPENDITURE (R&D)
The Company has incurred research and development expenditure of ' 224.90 Lakhs (previous year: ' 168.46 Lakhs) during
the current year. Of this total, ' 188.13 Lakhs (previous year: ' 152.60 Lakhs) has been transferred to Intangible Assets Under
Development, as it meets the recognition criteria under Ind AS 38, "Intangible Assets." The balance of ' 36.77 Lakhs (previous
*Debt repaid.
**Higher liquidity and faster settlement of short-term obligation.
63 AUTHORIZATION OF FINANCIAL STATEMENTS
The financial statements of the Company for the year ended 31st March, 2026 were authorised for issue in accordance with a resolution of the
board of directors on 13th May, 2026.
64 MISCELLANEOUS
i) Quarterly statements of stocks and other current assets filed by the Company with banks are in agreement with the books of accounts.
ii) The Company has not traded or invested in crypto currency or virtual currency during the year.
iii) 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 like to or on behalf of the Ultimate Beneficiaries.
iv) 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:
(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 like to or on behalf of the Ultimate Beneficiaries.
v) The Company does not have any charges or satisfaction of charges which are yet to be registered with ROC beyond the statutory period.
vi) The Company does not have any scheme of arrangements which have been approved by the Competent Authority in terms of Section 230
to 237 of the Companies Act, 2013.
vii) Provision regarding the number of layers prescribed under Section of Section 2 (87) of the Act read with the Companies (Restriction on
number of layers) Rules, 2017 is not applicable.
viii) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of
Income Tax Act, 1961).
ix) The Company is not declared as willful defaulter by any bank or financial institution or other lenders.
x) There is no transaction with the Struck off Companies under Section 248 or 560 of the Companies, Act 2013.
xi) No proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition)
Act, 1988.
xii) There were no material subsequent events to be recognized or reported that are not already disclosed.
xiii) I n the Opinion of the Board of Directors, the Current Assets, Loans & Advances are realisable in the ordinary course of
business at least equal to the amount at which they are stated in the Balance Sheet. The Provision for all known liabilities is
adequate and not in excess of the amount reasonably necessary.
xiv) The title deeds of all immovable properties (other than properties where the company is the lessee and the lease agreements
are duly executed in favour of the lessee), are held in the name of the Company.
xv) a) Figures have been disclosed in rupees in Lakhs.
b) Previous year's figures have been regrouped and/or reclassified wherever found necessary to confirm current year's
presentation.
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