(P) Provisions, Contingent Liabilities and Contingent Assets:
Provisions:
A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event,
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. Provisions are not discounted to their present value and are
determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed
at each reporting date and adjusted to reflect the current best estimates.
Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the statement of profit and loss net of any reimbursement.
Provision for expected credit losses (ECL) of trade receivables and contract assets:
The Company uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision matrix
is initially based on the Company's historical observed default rates. The Company will calibrate the matrix to adjust
the historical credit loss experience with forward-looking information. At every reporting date, the historical observed
default rates are updated and changes in the forward-looking estimates are analysed.
Contingent Liabilities:
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond control of the Company or a present obligation that is
not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there is a liability that can't be recognised because it can't be measured
reliably. The Company does not recognise the contingent liability but disclose its existence in its financial statements.
Contingent assets:
Contingent assets are disclosed where an inflow of economic benefits is probable.
Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.
(Q) Commitments:
Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:
(i) estimated amount of contracts remaining to be executed on capital account and not provided for;
(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.
(R) Leased Assets:
The Company's lease asset classes primarily consist of leases for land and buildings. The Company assesses whether a
contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
(i) the contract involves the use of an identified asset;
(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease; and
(iii) the Company has the right to direct the use of the asset.
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 right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted
for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease
incentives.
They are subsequently measured at cost less accumulated depreciation and impairment losses.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term.
ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term
and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes
in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual
asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such
cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
The lease liability is initially measured at amortized cost 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 rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding
adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension
or a termination option. Lease liability and ROU asset have been separately presented in the Balance Sheet and lease
payments have been classified as financing cash flows.
(S) Borrowing Costs:
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs
incurred in connection with the borrowing of funds. Borrowing costs also include exchange differences to the extent
regarded as an adjustment to the borrowing costs.
(T) Revenue Recognition:
The Company recognizes revenue, when or as control over distinct goods or services is transferred to the customer;
i.e. when the customer is able to direct the use of the transferred goods or services and obtains substantially all of the
remaining benefits, provided a contract with enforceable rights and obligations exists and amongst others collectability
of consideration is probable taking into account customer 's creditworthiness.
Revenue is the transaction price the Company expects to be entitled to. In determining the transaction price, the Company
considers effects of variable consideration and consideration payable to the customer, if any.
Variable Consideration
If the consideration in a contract includes a variable amount, the company estimates the amount of consideration to which
it will be entitled to in exchange for transferring goods to the customer. Some contracts with the customers provide them
with a right to return and volume rebates. The right to return and volume rebates gives rise to variable consideration. The
amount of variable consideration is calculated by either using the expected value or the most likely amount depending
on which is expected to better predict the amount of variable consideration.
Sale of goods: Revenues are recognized at a point in time when control of the goods passes to the buyer, usually upon
either at the time of dispatch or delivery in accordance with the terms of sale. In case of export sale, it is usually recognised
based on the shipped-on board date as per bill of lading. Revenue from sale of goods is net of taxes.
Sale of services: Revenues are recognized over time on a straight-line basis or, if the performance pattern is other than
straight line, as services are provided/rendered.
Other income:
Interest income from Fixed Deposits is recognised using the effective interest rate method.
Dividend income is recognised when the right to receive payment is established.
(U) Earnings Per Share:
Basic earnings per share is computed by dividing the net profit after tax attributable to the equity shareholders for the
year by the weighted average number of equity shares outstanding for the year.
Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity
shares were exercised or converted during the year. Diluted earnings per share is computed by dividing the net profit
after tax attributable to the equity shareholders for the year adjusted for effect of interest and other financing costs,
net of taxes, associated with dilutive potential equity share by aggregate of weighted average number of equity shares
considered for deriving basic earnings per share and weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares into equity shares.
(V) Cash and Cash Equivalents:
Cash and Cash equivalents include cash and cheque in hand, bank balances, demand deposits with banks and other
short-term highly liquid investments that are readily convertible to known amounts of cash & which are subject to an
insignificant risk of changes in value where original maturity is three months or less.
(W) Cash Flow Statement:
The Cash flow statement is prepared segregating the cash flows from operating, investing, and financing activities. Cash
flow from operating activities is reported using indirect method. Under the indirect method, the net profit is adjusted for
the effects of:
(i) transactions of a non-cash nature.
(ii) any deferrals or accruals of past or future operating cash receipts or payments and
(iii) items of income or expense associated with investing or financing cash flows.
(X) Cash Dividend:
The Company recognizes a liability to pay dividend when the distribution is authorised and the distribution is no
longer at the discretion of the Company i.e. when the dividend distribution is being approved by the shareholders.
A corresponding amount is recognized directly in equity.
(Y) Segment Reporting:
Operating segments are reported in a manner consistent with the internal reporting provided to Chief Operating Decision
Maker (CODM).
The Company has identified its Chairman & Managing Director as CODM which assesses the operational performance
and position of the Company and makes strategic decisions.
(Z) Recent Accounting Pronouncements:
Ministry of Corporate Affairs (“MCA") notifies new standard or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. The Company has reviewed the new pronouncements
and based on its evaluation has determined the impact thereof on its financial statements as set out below.
(A) Effective from April 01, 2025
The Company has adopted, with effect from 01 April 2025, the following new and revised standards and interpretations.
Their adoption has not had any significant impact on the amounts reported in the financial statements.
1. Ind AS 21 — The Effects of Changes in Foreign Exchange Rates
The amendment clarifies accounting for currencies that lack exchangeability and requires use of an estimation
technique to determine the exchange rate in such cases. The Company's foreign currency transactions and balances
are denominated in freely exchangeable currencies (USD, EUR, AED and CHF). Accordingly, the Company has
reviewed the amendment and determined that it does not have any significant impact in its financial statements.
2. Ind AS 1 — Presentation of Financial Statements
The amendment removes the requirement of an 'unconditional right' to defer settlement of a liability and instead
requires that the right to defer must exist on the reporting date and have substance. The amendment also introduces
guidance on classification of liabilities with covenants. The Company's non-current borrowings are not subject to
any financial covenants and the right to defer repayment is substantive as at March 31, 2026. Accordingly, the
Company has no impact of this amendment in its classification of current and non-current liabilities.
3. Ind AS 7 — Statement of Cash Flows and Ind AS 107 — Financial Instruments: Disclosures
The amendments require entities to disclose information about supplier finance arrangements, including the
nature of the arrangements, the carrying amount of liabilities forming part of such arrangements and the range
of payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a factor that may
cause concentration of liquidity risk. 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.
4. Ind AS 12 — Income Taxes (Pillar Two Model Rules)
The amendment provides a mandatory temporary exception from deferred tax accounting for Pillar Two
top-up taxes and requires entities to disclose whether they have applied the exception. The Company has no
impact of these amendments in its classification criteria of current and non current liabilities.
(B) Standards notified but not yet effective
Ind AS 1 — Presentation of Financial Statements
An amendment effective for annual periods beginning on or after April 01, 2026 (to be applied retrospectively) clarifies that
where a covenant breach occurs on or before the reporting date and the liability becomes payable on demand, it must be
classified as current even if the lender subsequently agrees not to demand repayment. The liability may be classified as non¬
current only if the lender has, before the reporting date, granted a grace period of at least 12 months within which the breach
can be rectified and repayment cannot be demanded. The Company's non-current borrowings are not subject to any financial
covenants. Accordingly, this amendment is not expected to have any impact on the financial statements of the Company.
iv Rights, preferences and restrictions attached to equity shares
The Company has one class of shares i.e. Ordinary shares having a par value of ' 10/- per share. Each holder of Equity
shares is entitled to one vote per share.
Each Shareholder is eligible for one vote per share held. In the event of liquidation, Ordinary shareholders will be eligible
to receive the assets of the company after distribution of all preferential amounts, in Proportion to the number of equity
shares held by the shareholders.
The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject
to the approval of the Shareholders in the ensuing Annual General Meeting except in the case of Interim Dividend.
v Preference Shares:
The Company has the power to issue cumulative redeemable preference shares. In the event of liquidation, the Preference
shareholders of the Company have the preference over equity shares when it comes to payment of dividend and
return of capital.
Nature & Purpose of the Reserve:
(a) Capital reserve: Capital reserve created at the time of acquisition. The reserve will be utilised in accordance with the
provisions of the Act.
(b) Securities Premium Reserve: Securities premium reserve is credited when shares are issued at premium. The reserve
will be utilised in accordance with the provisions of the Act.
(c) Capital Redemption Reserve: Capital redemption reserve is being created by transfer from Retained earnings at the
time of buy back of equity shares in accordance with the Act. The reserve will be utilised in accordance with the provi¬
sions of the Act.
(d) General Reserve: The General reserve is created by way of transfer of profits from retained earnings for appropriation
purposes. This reserve is utilised in accordance with the provisions of the Act.
(e) Amalgamation Reserve: The Amalgamation reserve is created for amalgamation of Brite Automotive and Plastics
Limited with Bright Brothers Limited pursuant to the Scheme of amalgamation being sanctioned by the High Court.
This reserve is utilised in accordance with the provisions of the Act.
(f) Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to
general reserve, dividends or other distributions paid to shareholders.
Notes:
a) It is not possible to estimate the timings of outflow of the contingent liabilities.
b) The Company do not expect any reimbursement in respect of the contingent liabilities.
c) Most of the issues of litigation pertaining to Central Excise/Service Tax/Income Tax are based on interpretation of
the respective Law & Rules thereunder. Management has been opined by its counsel that many of the issues raised
by revenue will not be sustainable in law as they are covered by judgments of respective judicial authorities which
supports its contention. As such no material impact on the financials of the Company is envisaged.
d) Sales Tax and Entry Tax related litigation/demand primarily pertains to non-submission of required declaration
forms in time due to non- receipt of the same from customers and/or some interpretation related issues. However
in most of the cases, required documents are being filed and minor impact if any, shall be given in the year of final
outcome of respective matter in appeal.
e) Other issues are either in ordinary course of business or not of substantial nature and management is reasonably
confident of their positive outcome. Management shall deal with them judiciously and provide for appropriately, if
any such need arises.
44. Financial Instruments:
Fair value hierarchy
The Management assessed that fair value of cash and cash equivalents, trade receivables, investments in term deposits,
loans, other financial assets (except derivative financial instruments, if any), trade payables, and other financial liabilities
(except derivative financial instruments, if any) is considered to be equal to the carrying amount of these items due to
their short-term nature. There were no significant changes in classification and no significant movements between the fair
value hierarchy classifications of financial assets and financial liabilities during the period.
This section explains the judgments and estimates made in determining the fair values of the financial instruments that are
measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication
about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments
into three levels prescribed under the Indian Accounting Standards. An explanation of each level follows underneath
the table:
46. Risk Management:
Financial risk management objective and policies
The Company's financial risk management is an integral part of how to plan and execute its business strategies.
The Company's financial risk management policy is set by the Managing Board. The risk management policies aim to
mitigate the following risks arising from the financial instruments: (a) Liquidity risk ;(b) Market risk and (c) Credit risk.
A. Financial risk factors
The Company's principal financial liabilities comprise borrowings, deposits from dealers and trade and other
payables. The purpose of these financial liabilities is to finance the Company's operations and to provide to support
its operations. The Company's principal financial assets include investments, loans, trade and other receivables, and
cash and cash equivalents that derive directly from its operations. The Company is exposed to the following risk
arising from the financial instruments: (a) Liquidity risk; (b) Market risk and (c) Credit risk.
The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities
that are settled by delivering cash or another financial asset. Liquidity risk management implies maintaining
sufficient cash including availability of funding through an adequate amount of committed credit facilities to
meet the obligations as and when due.
The Company manages its liquidity risk by ensuring as far as possible that it will have sufficient liquidity
to meet its short term and long term liabilities as and when due. Anticipated future cash flows, undrawn
committed credit facilities are expected to be sufficient to meet the liquidity requirements of the Company.
(b) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and
price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include
investment, deposits, foreign currency receivables and payables. The value of a financial instrument may
change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other
market changes that affect market risk sensitive instruments.
(i) Foreign currency risk
Foreign currency risk can only arise on financial instruments that are denominated in a currency other
than the functional currency in which they are measured. The Company's functional and presentation
currency is INR. The Company has not entered into any transaction, in currency other than functional
currency, for purchase of raw material or capital assets nor availed any foreign currency loans, which
remains outstanding as at year end.
Foreign currency risk sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in USD with all other
variables held constant. The impact on the Company's profit before tax and equity is due to changes in
the fair value of monetary assets and liabilities. Foreign currency exposures recognised by the Company
that have not been hedged by a derivative instrument or otherwise are as under:
The Company's exposure to price risk arises from investments held by the Company and classified in the
balance sheet at fair value through profit and loss. To manage its price risk arising from its investments,
the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits
set by the Company in accordance with the guidelines provided by the Board of directors of the Company.
Exposure
Investments in Equity Instruments and Mutual funds (including investment through Venture funds)
The Company's quoted equity instruments and in mutual funds are subject to the market price risk arising from
the fluctuation in the market price of those instruments. This risk arises from instruments which are classified as
Fair value through P&L wherein the price fluctuations, based on the historical trends, are not very significant.
(c) Credit Risk
Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed.
To manage this, the Company periodically assess financial reliability of counter party, taking into account
the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts
receivable. The Company considers the probability of default upon initial recognition of assets and whether
there has been a significant increase in credit risks on an on-going basis throughout each reporting period.
To assess whether there is a significant change increase in credit risk the Company compares the risks of default
occurring on the assets as at the reporting date with the risk of default as at the date of initial recognition.
It considers the reasonable and supportive forward looking information such as;
(i) Actual or expected significant adverse changes in business
(ii) Actual or expected significant changes in the operating results of the counterparty.
(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's
ability to meet its obligations
(iv) Significant increase in credit risk on other financial instruments of same counterparty
The company categorises financial assets based on the assumptions, inputs and factors specific to the class of
financial assets into High-quality assets, negligible credit risk; Quality assets, low credit risk; Standard assets,
moderate credit risk; Substandard assets, relatively high credit risk; Low quality assets, very high credit risk;
Doubtful assets, credit-impaired.
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing
to engage in a repayment plan with the Company. The Company categorises a loan or receivable for write off
when a debtor fails to make contractual payments greater than one year past due. Where loans or receivables
have been written off, the Company continues engage in enforcement activity to attempt to recover the
receivable due. Where recoveries are made, these are recognized in profit or loss.
B. Commodity Risk
The Company is exposed to the risk of price fluctuation of raw materials proactively managed through forward
booking, inventory management and proactive vendor development practices.
47. Capital risk management
The Company's objectives when managing capital are to:
Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.
The Company sets the amount of capital required on the basis of annual business and long-term operating plans which
includes capital and other strategic investments. The Company's intention is to maintain a stable and strong capital
structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future
development and growth of its business.
(b) Defined benefit plan
(i) Gratuity:
In accordance with applicable laws, the company provides for gratuity, a defined benefit retirement plan
(“The Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump sum payment
to vested employee on retirement (subject to completion of five years of continuous employment), death,
incapacitation or termination of employment that are based on last drawn salary and tenure of employment.
Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the
Company makes annual contribution to the gratuity fund administered by Life Insurance Corporation of India
under their respective Group Gratuity Schemes.
54. Segment Reporting
The Company is engaged in the activities relating to manufacture and sale of process plastics and the Chief Operating
Decision Maker (Board of Directors) review the operating results as a whole for the purposes of making decisions about
resources to be allocated and assess its performance, the entire operations are to be classified as a single business segment,
namely process plastics. The geographical segments considered for disclosure are India and Rest of the World. All the
manufacturing facilities are located in India.
(i) The Product wise break up - Please refer Note 32
(ii) Geographical information.
56. Assets provided as security
(a) Vehicle loans are taken from the banks against hypothecation of the vehicles purchased, repayable in 60 monthly
installments with interest rates ranging from 7.40% to 9.99%.
(b) (i) Sales Invoice Financing/Export Packing Credit/Cash Credit/Overdraft from Kotak Mahindra Bank are secured
against on all existing and future receivables/current assets/movable assets/movable fixed assets with the Sales
Invoice Financing/Export Packing Credit/Cash Credit/Overdraft of 65.00 Cr carry interest rates as follows:
(ii) Term loan from Kotak Mahindra Bank Ltd. are secured against on all existing and future receivables/current
assets/movable assets/moveable fixed assets/Fixed Deposit lien marked in favour of KMBL with the term
loan of 20.00 Cr carry Repo Rate 3.25% p.a. as at 31.03.26 payable in monthly basis. The term loan tenor
84 month(s) (7 Years), last instalment due in August 2032.
(iii) Term loan from Yes Bank Ltd. are secured against on all existing and future receivables/current assets/movable
assets/moveable fixed assets/Fixed Deposit lien marked in favour of YBL with the term loan of 13.58 Cr carry
Repo Rate 3.25% p.a. as at 31.03.26 payable in monthly basis. The term loan tenor 72 month(s) (6 Years
including 12 months moratorium), last instalment due in January 2029.
(iv) Cash Credit from Yes Bank Ltd. are secured against on all existing and future receivables/current assets/
movable assets/movable fixed assets with the Cash Credit of 10.00 Cr carry Repo 3.25% p.a. as at 31.03.26.
(c) The collateral security (Applicable for all facilities) secured by way of mortgage over Puducherry and Bhimtal Properties.
62. Other Statutory Information:
i) The Company do not have any benami property, and no proceeding has been initiated against the Company for
holding any benami property.
ii) During the year ended March 31, 2026, the company has not revalued any property, plant and equipment and
intangible assets.
iii) There are no scheme of arrangements which have been approved by the Competent Authority in terms of sections
230 to 237 of the Companies Act, 2013 during the reporting periods.
iv) The Company do not have any transactions with companies struck off.
v) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
vi) The Company have not traded or invested in crypto currency or virtual currency during the financial year.
vii) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (ultimate beneficiaries) or
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
viii) The Company have 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 funding party (ultimate beneficiaries) or
b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
ix) Company does not have any such 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 the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961.
x) The Company have not declared wilful defaulter by any banks or any other financial institution at any time during
the financial year.
xi) The title deeds of the freehold & leasehold lands, Buildings are registered in the name of the Company. No deeds
are pending for registration in this regard.
xii) 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.
63. The previous period's figures have been re-grouped/re-classified wherever required to conform to current year's
classification. All figures of financials have been rounded off to nearest lakhs rupees.
64. Events after Reporting Period
The Board of Directors have recommended a payment of final dividend of ' 2.00 per equity share of the face value of
' 10 each for the financial year ended 31st March, 2026. Final dividend is subject to approval of Shareholders.
65. Approval of Financial Statements
The Standalone Financial Statements were approved for issue by the Board of Directors on May 12, 2026.
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