1. Company overview
in order to reflect the current business, the
company has applied to MCA for change of
name from HBL Power Systems Limited to HBL
Engineering Limited. MCA issued new certificate
of incorporation on 13th November 2024 in the
name of HBL Engineering Limited.
HBL Engineering 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 24th May 2025 and approved by
the Company's Board of Directors at the meeting
held on 24th May 2025.
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) Extended Producer Responsibility (EPR)
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. 30)
3.4 b Useful life, depreciation method and
residual values of Property Plant and
Equipment
The company reviews the useful life,
depreciation methods and residual values
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. 34)
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.
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