n) Provisions
Provisions are recognized when an enterprise has a present obligation (legal or constructive) as a result of past event and
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect
of which a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to its present value
and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best estimates.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.
Provisions for warranty-related costs are recognized when the product is sold or service provided. Provision is estimated
based on historical experience and technical estimates. The estimate of such warranty-related costs is reviewed annually.
o) 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 the control of the Company or a present
obligation that is not recognized 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 cannot be recognized
because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence
in the financial statements.
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 executive Management in deciding
how to allocate resources and in assessing performance. Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decisionmaker (CODM).
The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment
revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their
relationship to the operating activities of the segment.
Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on
reasonable basis have been included under “unallocated revenue / expenses / assets / liabilities”.
q) Borrowing costs
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the 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.
Capitalisation of Borrowing Costs is suspended and charged to the statement of profit and loss during extended periods
when active development activity on the qualifying assets is interrupted. All other borrowing costs are expensed in the
period they occur.
r) 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. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:
i. In the principal market for the asset or liability, or
ii. In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.
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, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised 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:
a) Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
b) Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
c) Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level
input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
s) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
i. Financial assets at amortised cost (debt instruments)
ii. Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains
and losses (debt instruments)
iii. Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments)
iv. Financial assets at fair value through profit or loss
Financial assets at amortised cost (debt instruments)
A ‘financial asset’ is measured at the amortised cost if both the following conditions are met:
i. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows,
and
ii. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest
rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The
losses arising from impairment are recognised in the profit or loss. The losses arising from impairment are recognised in
the profit or loss. This category generally applies to trade and other receivables.
Financial assets at fair value through OCI (FVTOCI) (debt instruments)
A ‘financial asset’ is classified as at the FVTOCI if both of the following criteria are met:
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial
assets, and
b) The asset’s contractual cash flows represent SPPI.
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair
value. For debt instruments, at fair value through OCI, interest income, foreign exchange revaluation and impairment
losses or reversals are recognised in the profit or loss and computed in the same manner as for financial assets measured
at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value
changes recognised in OCI is reclassified from the equity to profit or loss.
Financial assets designated at fair value through OCI (Equity Instruments)
All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading
are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in
other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-
by-instrument basis. The classification is made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument,
excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of
investment. However, the Company may transfer the cumulative gain or loss within equity.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair
value recognised in the statement of profit and loss.
This category includes derivative instruments and listed equity investments which the Company had not irrevocably
elected to classify at fair value through OCI. Equity instruments included within the FVTPL category are measured at fair
value with all changes recognized in the P&L.
Dividends on listed equity investments are recognised in the statement of profit and loss when the right of payment has
been established.
De-recognition
A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is
primarily derecognised (i.e. removed from the Company’s standalone balance sheet) when:
i. The rights to receive cash flows from the asset have expired, or
ii. The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and
either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company
has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control
of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the
Company continues to recognise the transferred asset to the extent of the Company’s continuing involvement. In that
case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured
on a basis that reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the Company could be required to
repay.
Impairment of Financial Assets
In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets and Credit risk exposure:
i. Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits,
trade receivables and bank balance
ii. Trade receivables or any contractual right to receive cash or another financial asset that result from transactions
The Company follows ‘simplified approach’ for recognition of impairment loss allowance on Trade receivables.
The application of simplified approach does not require the Company to track changes in Credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. For recognition
of impairment loss on other financial assets, the Company determines that whether there has been a significant increase
in the Credit risk since initial recognition. If Credit risk has not increased significantly, 12-month ECL is used to provide
for impairment loss. However, if Credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period,
Credit quality of the instrument improves such that there is no longer a significant increase in Credit risk since initial
recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.
Lifetime ECL are the expected Credit losses resulting from all possible default events over the expected life of a financial
instrument. ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the Company expects to receive, discounted at the original EIR. When estimating the
cash flows, the Company is required to consider:
i. All contractual terms of the financial instrument (including prepayment, extension, call and similar options) over
the expected life of the financial instrument. However, in rare cases when the expected life of the financial
instrument cannot be estimated reliably, then the Company is required to use the remaining contractual term of the
financial instrument
ii. Cash flows from the sale of collateral held or other Credit enhancements that are integral to the contractual terms
As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its
trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the
trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default
rates are updated and changes in the forward-looking estimates are analysed.
ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the
statement of profit and loss (P&L). This amount is reflected under the head ‘other expenses’ in the P&L. The balance
sheet presentation for various financial instruments is described below:
i. Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral part of the
measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset
meets write-off Criteria, the Company does not reduce impairment allowance from the gross carrying amount.
For assessing increase in Credit risk and impairment loss, the Company combines financial instruments on the basis of
shared Credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant
increases in Credit risk to be identified on a timely basis.
Financial liabilities
Initial recognition and measurement
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs.
The Company’s financial liabilities include loans and borrowings including bank overdrafts, financial guarantee contracts,
trade and other payables.
Subsequent measurement
Financial liabilities at fair value through profit and loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative
financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships
as defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated
as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the
initial date of recognition, and only if the Criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair
value gains/ losses attributable to changes in own Credit risks are recognized in OCI. These gains/ losses are not
subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised in the statement of profit and loss.
Financial liabilities at amortised cost (Loans and borrowings)
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the
EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
Financial guarantee contracts
Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse
the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms
of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for
transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at
the higher of the amount of loss allowance determined as per impairment requirements of Ind-AS 109 and the amount
recognised less cumulative amortisation.
De-recognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in
the statement of profit or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously
t) Derivative financial instruments
The Company enters into derivative financial instruments to manage its exposure to foreign exchange rate risks, including
foreign exchange forward contracts. Derivatives are initially recognised 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 recognised in profit or loss immediately.
u) Use of estimates
The preparation of Standalone Financial Statements in conformity with Ind AS requires the management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and
the disclosure of contingent liabilities, like provision for employee benefits, provision for doubtful trade
receivables/advances/contingencies, provision for warranties, allowance for slow/non-moving inventories, useful life of
Property, Plant and Equipment, provision for taxation, etc., during and at the end of the reporting period. Although these
estimates are based on the management’s best knowledge of current events and actions, uncertainty about these
assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets
or liabilities in future periods.
v) Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, that are readily convertible to a known amount of cash and subject to an
insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as
defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash
management.
w) Dividend
The Company recognises a liability to pay dividend to equity holders of the parent when the distribution is authorised and
the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.
x) Earnings Per Share (EPS)
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period.
The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue,
bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number
of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.
y) Equity Investment in Subsidiaries and Controlled entities
Investment in Subsidiaries and Controlled entities are carried at cost in the Separate Financial Statements as permitted
under Ind AS 27.
2.4 New and amended Standards
Amendments to Ind AS 109, Ind AS 107, Ind AS 104 and Ind AS 116: Interest Rate Benchmark Reform - Phase 2
The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate
(IBOR) is replaced with an alternative nearly risk-free interest rate (RFR) The amendments include the following practical
expedients:
- A practical expedient to require contractual changes, or changes to cash flows that are directly required by the
reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest
- Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without
the hedging relationship being discontinued
- Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR
instrument is designated as a hedge of a risk component
These amendments had no impact on the standalone financial statements of the Company. The Company intends to use
the practical expedients in future periods if they become applicable.
Conceptual framework for financial reporting under Ind AS issued by ICAI
The Framework is not a Standard and it does not override any specific standard. Therefore, this does not form part of a
set of standards pronounced by the standard-setters. While the Framework is primarily meant for the standard setter for
formulating the standards, it has relevance to the preparers in certain situations such as to develop consistent accounting
policies for areas that are not covered by a standard or where there is choice of accounting policy, and to assist all parties
to understand and interpret the Standards.
The amendments made in following standards due to Conceptual Framework for Financial Reporting under Ind AS
includes amendment of the footnote to the definition of an equity instrument in Ind AS 102 - Share Based Payments,
footnote to be added for definition of liability i.e. definition of liability is not revised on account of revision of definition
in conceptual framework in case of Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets etc.
The MCA has notified the Amendments to Ind AS consequential to Conceptual Framework under Ind AS vide notification
dated June 18, 2021, applicable for annual periods beginning on or after April 1, 2021.
These amendments had no impact on the standalone financial statements of the Company.
Amendments to Ind AS 116: COVID-19-Related Rent Concessions
MCA issued an amendment to Ind AS 116 COVID19-Related Rent Concessions beyond 30 June 2021 to update the
condition for lessees to apply the relief to a reduction in lease payments originally due on or before 30 June 2022 from 30
June 2021. The amendment applies to annual reporting periods beginning on or after 1 April 2021.
Amendments to Ind AS 105, Ind AS 16 and Ind AS 28
The definition of “Recoverable amount” is amended such that the words “the higher of an asset’s fair value less costs to
sell and its value in use” are replaced with “higher of an asset’s fair value less costs of disposal and its value in use”. The
consequential amendments are made in Ind AS 105, Ind AS 16 and Ind AS 28.
These amendments had no impact on the standalone financial statements of the Company.
14 6 Aggregate number of bonus shares, shares issued on rights basis, shares issued for consideration other than cash and shares bought back during the
' period of five years immediately preceding the reporting date
(a) On May 05, 2017, one equity share of face value Rs. 10/- each was split into five equity shares of Rs. 2/- each. Accordingly, 1,00,00,000 authorised equity
shares of Rs. 10/- each were sub-divided into 5,00,00,000 authorised equity shares of Rs.2/- each and 46,83,168 fully paid up shares of Rs.10/- each were sub¬
divided into 2,34,15,840 fully paid up shares of Rs.2/- each.
(b) On May 06, 2 017, the Company issued bonus shares to the existing shareholders, in the ratio of 1:5. The Securities premium account was utilised to the
extent of Rs. 93.66 for the issue of said bonus shares.
(c) On January 22, 2 02 2 (Record Date), the Company issued 9,366,336 equity shares of face value ofRs. 2 each on rights basis to the existing shareholders, in
the ratio of 1:3, for an amount aggregating to Rs. 936.63 Lakhs. The shares were issued at a premium of Rs. 8 per share and consequently the securities
premium account was credited by Rs. 749.31 during the year. The Securities premium account was utilised to the extent of Rs. 81.10 towards expenses
incurred for the issue of said shares on rights basis.
(d) On 8th May,2 02 3, the Company alloted 19,71,656 equity shares of face value of Rs.2/- each on preferential allotment to the existing shareholders, for an
amount aggregating to Rs.470.24lakhs. The shares were issued at a premium of Rs.21.85 per share and consequently the securities premium account was
credited by Rs.430.80 lakhs during the year 2023-24
(b) General reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with
applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the
Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act
2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously
transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.
(c) Retained earnings
The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the financial statements of the Company and
also considering the requirements of the Companies Act, 2013.
(d) FVTOCI reserve
The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are
accumulated within the Equity instruments through Other Comprehensive Income within equity. The Company transfers amounts from this reserve to retained
earnings when the relevant equity securities are derecognised.
Reconciling the amount of revenue recognised in the statement of profit and loss with the contract price
Due to Company's nature of business and the type of contracts entered with the customers, the company does not have any difference between
the amount of revenue recognized in the statement of profit and loss and the contracted price.
Performance obligation
Information about the Company's performance obligations are summarised below:
a) Insulation
The revenue from sale of finished goods is recognised at a point in time coinciding with the transfer of control over goods and in case of
contracts, revenue is recognised over a period of time based on progress of performance certified by the customer in line with the
requirements of Ind AS 115.
b) Trading
The revenue from sale of traded goods is recognised at a point in time coinciding with the transfer of control over goods as per Ind AS 115.
A. Defined contribution plans
The Company makes contributions to Provident Fund, Superannuation Fund and Employee State Insurance Scheme which
are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a
specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 112.91 Lakhs (March 31, 2024:
Rs.90.43 Lakhs) for Provident Fund contributions, Rs. 69.59 lakhs (March 31, 2024: Rs.66.89 Lakhs) for Superannuation
Fund contributions and Rs. 1.27 lakhs (March 31, 2024: Rs. 1.45 lakhs) for Employee State Insurance Scheme contributions
in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the
rules of the schemes.
B. Defined benefit plans
Gratuity
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a
gratuity on departure at 15 days salary (last drawn salary) for each completed year of service subject to a maximum of Rs.
20. The Company has invested the plan assets with the insurer managed funds (Life Insurance Corporation). The insurance
company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market
Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term
rate of return expected on investments of the fund during the estimated term of the obligation.
39 Segment Information
Primary Segment
Based on internal reporting provided to the chief operating decision maker, insulation and trading are two reportable
segments for the Company. Insulation Business includes manufacturing of EPS Products / prefabricated panels and related
service activities. Trading includes motors, export of fabrics, telemedicine equipment's, Information Technology Products etc.
The above segments have been identified taking into account the organisation structure as well as differing risks and returns
of these segments. Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the
segments as also amounts allocated on a reasonable basis. All expenses which are not attributable or allocable to segments
have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are
disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable.
c. Petition filed with National Company Law Tribunal
The erstwhile Managing Director of the Company had filed petition with National Company Law Tribunal ("NCLT") under
sections 241 to 244 of the Companies Act, 2013 during financial year 2018-19. He has sought certain relief and action against
the directors. The Company has intimated to the stock exchange about the matter filed with the NCLT by the erstwhile
Managing Director. The matter is pending before NCLT and there have been no material updates to this matter. Based on the
review of the petition, the Board is of the view that these matters have no effect on financial statements of the Company.
43 Significant accounting judgements, estimates and assumptions
The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires
management to make judgements, estimates and assumptions that affect the reported balances 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.
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 recognised in the financial statements:
(i) Determining the lease term of contracts with renewal and termination options - Company as lessee
The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the
lease, if it is reasonably certain not to be exercised
The Company has lease contracts that include extension and termination options. The Company applies judgement in
evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it
considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the
commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is
within its control and affects its ability to exercise or not to exercise the option to renew or to terminate.
b) Estimates and 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) Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the
higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on
available data from binding sales transactions, conducted at arm's length, for similar assets or observable market prices less
incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived
from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to
or significant future investments that will enhance the asset's performance of the CGU being tested. The recoverable amount
is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used
for extrapolation purposes. These estimates are most relevant to goodwill and other intangibles with indefinite useful lives
(ii) Defined benefit plans
The cost of the defined benefit plan and other post-employment benefits and the present value of such 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, mortality
rates and attrition rate. 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 for plans operated
in India, the management considers the interest rates of government bonds where remaining maturity of such bond
correspond to expected term of defined 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.
Further details about gratuity obligations are given in Note 38.
(iii) Allowance for slow/ non-moving inventory and obsolescence
An allowance for Inventory is recognised for cases where the realisable value is estimated to be lower than the
inventory carrying value. The inventory allowance is estimated taking into account various factors, including prevailing
sales prices of inventory item, gross margins and losses associated with obsolete / slow-moving / redundant inventory
items. The Company has, based on these assessments, made adequate provision in the books.
(iv) Allowance for expected credit loss of trade receivables (ECL Provision)
Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and
control relating to customer credit risk management. The Company undertakes a detailed review of the credit
worthiness of clients before extending credit. Outstanding customer receivables are regularly monitored. Management
monitors the Company's net liquidity position through rolling forecasts based on expected cash flows.
Trade receivables comprise a large number of customers. The Company has credit evaluation policy for each customer
and based on the evaluation, credit limit of each customer is defined. Net Trade receivables as on March 31, 2025 is
Rs.6,213.77 (March 31, 2024 - 5,089.40). The Company believes the concentration of risk with respect to trade
receivables is low, as its customers are located in several jurisdictions and industries and operate in largely independent
markets.
The Company uses the expected credit loss model as per Ind AS 109 - 'Financial Instruments' to assess the impairment
loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables.
The provision matrix considers available external and internal credit risk factors and the Company's historical
experience in respect of customers. The maximum exposure to credit risk at the reporting date is the carrying value of
each class of financial assets disclosed in Note 09
(v) Leases - estimating the incremental borrowing rate
The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to
borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the
right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company 'would have to pay',
which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms
and conditions of the lease. The Company estimates the IBR using observable inputs (such as market interest rates)
when available and is reauired to make certain entity-specific estimates.
(vi) Taxes
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and \the level of future taxable
profits together with future tax planning strategies.
44 Financial risk management objectives and policies
The Company's principal financial liabilities comprise of bank and other borrowings, deposits, lease liabilities, trade and
other payables and financial guarantee contracts. The main purpose of these financial liabilities is to finance and support
the entity's operations. The entity's principal financial assets include trade and other receivables and cash and cash
equivalents that derive directly from its operations.
The entity is exposed to market risk, credit risk and liquidity risk. The entity's senior management oversees the
management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which
are summarised below.
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 other price risk, such as
equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings,
deposits, FVTOCI investments and derivative financial instruments.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the
Company's operating activities (when revenue or expense is denominated in a foreign currency). The Company has not
hedged any portion of its expected foreign currency sales as at March 31, 2025 and March 31, 2024.
Foreign currency sensitivity
The following demonstrates the sensitivity to a reasonably possible change in the foreign currency exchange rates for Rs.,
with all other variables held constant. The impact on the Company's profit before tax is due to changes in the fair value of
monetary assets and liabilities including non-designated foreign currency derivatives and embedded derivatives. The
sensitivity analysis includes only outstanding unhedged foreign currency denominated monetary items and adjusts their
translation at the period end for a 5% change in foreign currency rates.
(iii) . Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is
exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including
deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The
Company only deals with parties which has good credit rating/ worthiness given by external rating agencies or based on
management’s internal assessment. The maximum exposure to the credit risk is equal to the carrying amount of financial
assets as of March 31, 2025 and March 31, 2024 respectively.
(iv) . Liquidity Risk
The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank
deposits and loans. The table below summarises the maturity profile of the Company's financial liabilities based on
contractual undiscounted payments.
The management assessed that cash and cash equivalents, trade receivables, loans, current investments, other financial assets, short
term borrowings, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short¬
term maturities of these instruments.
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to
estimate the fair values:
i. The fair values of quoted equity investments are derived from quoted market prices in active markets.
ii. The fair values of certain unquoted equity investments have been estimated using Discounted Cash-flow Model (DCF). The valuation
is based on certain assumptions like forecast cash-flows, discount rate, etc.
iii. The fair value of borrowings is estimated by discounting expected future cash flows using a discount rate equivalent to the risk-free
rate of return, adjusted for the Credit spread considered by the lenders for instruments of the similar maturity.
iv. Derivatives are fair valued using market observable rates and published prices.
46 Fair Value Hierarchy
Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial instruments, other than those
with carrying amounts that are reasonable approximations of fair values. The management assessed that the cash and cash equivalents,
trade receivables, trade payables, fixed deposits, bank overdrafts and other payables approximate their carrying amounts largely due to
the short-term maturities of these instruments.
Notes
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date.
Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or
indirectly.
Level 3 inputs are unobservable inputs for the asset or liability.
There have been no transfers between the levels during the period.
The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as
their fair values, due to their short-term nature.
They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty
credit risk.
The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate.
47 Capital Management
For the purpose of the Company's capital management, capital includes issued equity capital and 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 value.
The Company's capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term
goals of the Company. The Company determines the amount of capital required on the basis of annual operating plans and long-term fleet
expansion plans. The funding requirements are met through internal accruals and other long-term/short-term borrowings. The Company's
policy is aimed at combination of short-term and long-term borrowings. The Company monitors capital employed using a Debt equity ratio,
which is total debt divided by total equity and maturity profile of the overall debt portfolio of the Company.
49 Standards issued but not yet effective
Ministry of Corporate affairs has issued Companies (Indian Accounting Standards) Amendment rules, 2022 on March 23, 2022, which contains various
amendments to IndAS. Management has evaluated these and have concluded that there is no material impact on Company's financial statement.
50 Other Statutory Information
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami
property.
(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
(iv) 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
(v) 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,
(vi) The Company has not made 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 provision of the Income Tax Act,
1961).
(vii) The Company do not have any transactions with companies struck off.
51 Prior year comparatives
The figures of previous year have been regrouped/reclassified, where necessary, to conform to this year's classification.
The accompanying notes are an integral part of the financial statements
As per our report of even date
For G Balu Associates LLP For and on behalf of the Board of Directors
Chartered Accountants Beardsell Limited
ICAI Firm registration number: 000376S/S200073
Rajagopalan B Amrith Anumolu A V Ram Mohan
Partner Executive Director Independent Director
Membership no.: 217187 DIN:03044661 DIN:02093767
Place: Chennai Place: Hyderabad Place: Chennai
V V Sridharan Kanhu Charan Sahu
Chief Financial Officer Company Secretary
Place: Chennai Place: Chennai
Date : 22-05-2025 Date : 22-05-2025 Date : 22-05-2025
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