1. Company overview
HBL Power Systems Limited ("HBL" or "The Company") is a public limited company incorporated and domiciled in India and has its registered office at Hyderabad, Telangana State, India. The Company has its primary listings on the BSE Limited and National Stock Exchange of India Limited in India. The financial statements were reviewed by the Audit Committee in its meeting held on 27th May 2024 and approved by the Company's Board of Directors at the meeting held on 27th May 2024.
The principal activities of the Company comprise of manufacturing of different types of batteries including Lead Acid, Nicad, Silver Zinc, Lithium and Railway & Defence Electronics and other products. The Company is also engaged in service activities related to the above products.
2. Statement of compliance
These standalone financial statements have been prepared in accordance with Indian Accounting Standards (referred to as " Ind AS" ) as prescribed under section 133 of Companies act 2013 read with companies (Indian accounting standards) rules as amended from time to time.
3.1 Basis of preparation
The financial statements have been prepared on the historical cost convention and on an accrual basis, except for the following material items that have been measured at fair value as required by relevant Ind AS:
i) Certain financial assets and liabilities (refer accounting policy on financial instruments);
ii) Defined benefit and other long-term employee benefits
iii) Provision for warranties
iv) Lease liability on right of use assets
3.2 Functional and presentation currency
The financial statements are presented in Indian rupees, which is the functional currency of the Company and the currency of the primary economic environment in which the Company operates. All financial information presented in Indian rupees has been rounded off to the nearest lakh of rupees except share and per share data.
3.3 Operating cycle:
Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
3.4 Use of judgments, estimates and assumptions
The preparation of standalone financial statements are in confirmity with the recognition and measurement principles of Ind As requires management of the company make estimates and judgements that effect the reported balances of Assets and Liabilities, disclosures of contingent liabilities as at the date of standalone financial statements and reported amounts of income and expenses for the periods presented. Estimates and underlying assumptions are reviewed on a perodic basis. Revisions to accounting estimates are recognised in the period in which estimates are revised and future periods are effected.
The company uses the following critical accounting judgements, estimates and assumptions in the preparation of its standalone financial statements.
3.4 a Revenue recognition
i) Revenue from contracts with customers that meet the recognition criteria under paragraph 9 of Ind AS 115 are recognised when (or as) a performance obligation is satisfied by transferring a promised good or service to a customer, for the amount of the transaction price that is allocated to that performance obligation.
ii) The company exercises judgement for identification of performance obligations, determination of transation price, allocation of transation price to each distinct performance obligation and determining whether the performance obligation is satisfied at a point in time or over a period of time. These judgements have been explained in detail under the note on revenue.(refer note no. 31 )
3.4 b Useful life of Property Plant and Equipment
The company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods (refer note no.5 )
3.4 c Employee benefits
The accounting of employee benefits in the nature of defined benefit requires the company to use assumptions. These assumptions have been explained under employee benefit note (refer note no. 35 )
3.4 d Leases
The company evaluates if an arrangement qualifies be a lease as per requirements of Ind As 116. Identification of lease requires significant judgement. The company uses significant judgement in assessing the lease
term (including anticipated renewals) and applicable discount rate. (refer note no. 9 )
3.4 e Impairment of investments/Intangible Assets
The company reviews its carrying value of investments and Intangible Assets carried at cost (net of impairment, if any) annually or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount the impairment loss is accounted in the statement of profit and loss account.
3.4 f Provision for Income tax and deferred taxes
The company uses judgements based on the relevent rulings in the areas of allocation of revenue, costs, allowances and disallowances which is exercised while determining provision for income tax. A deferred tax asset is recognised to the extent that it is probable that its future taxable profits will be available against which the deductable temporary differences and tax losses can be utilised accordingly the company exercises its judgement to re assess carrying amount of deferred tax asset at the end of each reporting period.
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