2.10.1 Provisions
A provision is recorded when the Company hasa present or constructive obligation as a resultof past events, it is probable that an outflow ofresources will be required to settle the obligationand a reliable estimate can be made of theamount of the obligation.
Provisions are reviewed at the end of eachreporting period and adjusted to reflect thecurrent best estimate. A provision is reversedwhen it is no longer probable that an outflow ofresources embodying economic benefits will berequired to settle the obligation.
Provision for warranty claims is recognisedat the time of sale based on the historicalexperience. Initial estimate of warranty expenseis reviewed annually.
2.10.2 Contingent Liabilities
Contingent liabilities are disclosed when thereis a possible obligation arising from past events,the existence of which will be confirmed only bythe occurrence or non-occurrence of one ormore uncertain future events not wholly withinthe control of the Company. Show cause noticesare not considered as Contingent Liabilitiesunless converted into demand.
The Company's leases primarily consist of leases forcertain plant and machinery, Vehicles and warehouse.The Company, being a lessee, assesses whether acontract contains a lease, at inception of a contract.Company recognises Right-of-Use Asset and leaseliability only when the contract conveys the right tocontrol the use of an identified asset for a period oftime in exchange for consideration.
The right-of-use assets are initially recognised atcost, which comprises the initial amount of the leaseliability adjusted for any lease payments made at orprior to the commencement date of the lease plusany initial direct costs less any lease incentives. Theyare subsequently measured at cost less accumulateddepreciation and impairment losses.
Right-of-use assets, for which the entity is reasonablycertain to exercise the right to purchase aredepreciated from the commencement date on astraight-line basis over the shorter of the lease termand useful life of the underlying asset.
The lease liability is initially measured at amortisedcost at the present value of the future lease payments.
The lease payments are discounted using the interestrate implicit in the lease or, if not readily determinable,using the incremental borrowing rates.
For the short-term and low value leases, the Companyrecognises the lease payments as an operatingexpense on a straight-line basis over the term ofthe lease.
Cash and cash equivalents include cash on handand other short-term, highly liquid investments withoriginal maturities of three months or less that arereadily convertible to known amounts of cash andwhich are subject to an insignificant risk of changesin value.
2.13.1 Classification
The Company classifies its financial assets in thefollowing measurement categories:
(i) Those measured subsequently at fair valuethrough profit or loss (in case of investmentsin mutual funds)
(ii) Those measured at amortised cost.
2.13.2 Measurement
Initial Recognition Measurement
Financial assets are recognised when theCompany becomes party to the contract. TheCompany measures a financial asset initiallyat its fair value, plus in the case of financialassets not recorded at fair value through profitor loss (FVTPL), transaction costs that areattributable to the acquisition of the financialasset. Trade receivables that do not contain asignificant financing component are measuredat transaction price.
2.13.3 Subsequent Measurement
2.13.3.1 Investments
Investments are subsequently measured at Fairvalue through Profit and loss. Income or loss fromthese financial assets is included in other incomeor other expenses.
2.13.3.2 Other Financial Assets
After Initial Measurement, financial assets aresubsequently measured at amortised costusing the effective interest rate method (EIRmethod). Amortised cost is calculated by takinginto account any discount or premium and feesor cost that are an integral part of EIR. The EIRamortisation is included in finance income inthe statement of profit and loss. The lossesarising from impairment are recognised in thestatement of profit and loss.
2.13.4 Impairment of Financial Assets
The Company assesses on a forward lookingbasis the expected credit losses associatedwith its assets carried at amortised cost. Theimpairment methodology applied depends onwhether there has been significant increase incredit risk. Note 7.2 details how the Companydetermines whether there has been a significantincrease in credit risk.
For trade receivables, the Company applies thesimplified approach permitted by Ind AS 109Financial Instruments, which requires ExpectedCredit Losses (ECL) to be recognised from initialrecognition of the receivables.
The application of simplified approach doesnot require the Company to track changes incredit risk. Rather, it recognises impairmentloss allowance based on lifetime ECLs ateach Balance Sheet date, right from itsinitial recognition.
2.13.5 Derecognition of Financial Assets
A financial asset (or, where applicable, a partof a financial asset or part of a group of similarfinancial assets) is primarily derecognised (i.e.removed from the Company's balance sheet)when the rights to receive cash flows from theasset have expired.
2.14.1 Classification
The Company classifies all financial liabilities assubsequently measured at amortised cost.
2.14.2 Initial recognition and measurement
The Company's financial liabilities include tradeand other payables, loans and borrowingsincluding bank overdrafts. All financial liabilitiesare recognised initially at fair value and, in thecase of loans and borrowings and payables, netof directly attributable transaction costs.
2.14.3 Loans and Borrowings
After initial recognition, interest-bearing loansand borrowings are subsequently measured atamortised cost using the EIR method. Gains andlosses are recognised in the Statement of Profitand Loss when the liabilities are derecognised.
Amortised cost is calculated by taking intoaccount any discount or premium on acquisitionand fees or costs that are an integral part of theEIR. The EIR amortisation is included as financecosts in the Statement of Profit and Loss. Thiscategory generally applies to interest-bearingloans and borrowings.
2.14.4 De-recognition
A financial liability is derecognised when theobligation under the liability is discharged orcancelled or expires. When an existing financialliability is replaced by another from the samelender on substantially different terms, or theterms of an existing liability are substantiallymodified, such an exchange or modificationis treated as the derecognition of the originalliability and the recognition of a new liability. Thedifference in the respective carrying amounts isrecognised in the Statement of Profit and Loss.
2.14.5 Offsetting of Financial Instruments
Financial assets and financial liabilities are offsetand the net amount is reported in the balancesheet if there is a currently enforceable legal rightto offset the recognised amounts and there is anintention to settle on a net basis, to realise theassets and settle the liabilities simultaneously.
The Company enters into forward contract tomanage its exposure to foreign currency exchangerisks. These derivative contracts that do not qualifyfor hedge accounting under Ind AS 109, are initiallyrecognised at fair value on the date the contract isentered into and subsequently measured through atprofit or loss. Gains or loss arising from changes in thefair value of the derivative contracts are recognisedin statement of profit and loss.
Final dividend proposed and distributed to equityshareholders is recognised only in the financial year inwhich it is approved by the members of the Companyin the Annual General Meeting. Interim dividend isrecognised when approved by the Board of Directorsat the Board Meeting. Dividend distributed isrecognised in the Statement of Changes in Equity.
Basic earnings per share is calculated by dividing thenet profit or loss for the year attributable to equityshareholders by the weighted average number ofequity shares outstanding during the year.
For the purpose of calculating diluted earnings pershare, the net profit or loss for the year attributableto equity shareholders and the weighted averagenumber of shares outstanding during the year areadjusted for the effects of all dilutive potentialequity shares.
The Company has identified "Domestic Appliances"as a only reportable segment based on the mannerin which operating results are reviewed by the ChiefOperating Decision Maker (CODM).
Errors of material amount relating to prior period(s)are disclosed by a note with nature of prior perioderrors, amount of correction of each such prior periodpresented retrospectively, to the extent practicablealong with change in basic and diluted earnings pershare. However where retrospective restatementis not practicable for a particular period then thecircumstances that led to the existence of thatcondition and the description of how and from wherethe error is corrected are disclosed in notes formingpart of Financial statements.
Cash flow statement is prepared in accordance withthe indirect method prescribed in Ind AS 7 'Statementof Cash Flows'.
Cash flows are reported using the indirect method,whereby profit/(loss) before tax is adjusted for theeffects of transactions of non cash nature and anydeferrals or accruals of past or future cash receiptsor payments. Cash flow for the year is classified asoperating, investing and financing activities.
The preparation of financial statements in conformitywith the generally accepted accounting principlesrequires management to make certain estimatesand assumptions that affect the reported amountof assets and liabilities as of the balance sheet dateand reported revenue and expenses for the year anddisclosure of contingent liabilities as of the date ofbalance sheet. The estimates and assumptions usedin the accompanying financial statements are basedupon the management's evaluation of the relevantcircumstances as of the date of financial statements.Actual amounts could differ from these estimates.
All amounts disclosed in the financial statements andnotes are presented in INR Lakh and has been roundedoff to two decimals as per the requirements of DivisionII of schedule III to the Act, unless otherwise stated.
Nature and purpose of reservesGeneral Reserve
General reserve was created for declaration of dividends as per statutory requirement.
Security Premium
Security Premium represents premium on preferential shares issued (net of issue expenses).
Capital Reserve
Capital reserve was created on forfeiture of shares as per statutory requirement.
Capital Redemption Reserve
Capital redemption reserve was created on Redemption of Preference Shares as per statutory requirement.
Retained Earnings
Retained earnings are the profits that the Company has earned till date, net-off any transfers to general reserve, dividendsor other distributions paid to shareholders.
Revaluation Surplus
Represents Net gains arising on the revaluation of the Company's properties (other than investment properties). Ondisposal of the asset, the balance of the revaluation reserve is transferred to retained earnings.
Note: Above contingent liabilities exclude the demands raised by the Central Excise Department on earlier assessmentaggregating to H1,899.67 lakhs which have been allowed in favour of the Company by the CESTAT. The department hasfiled an appeal with the Honourable Supreme Court, which is pending disposal.
Notes:
1. It is not practicable to estimate the timing of cash outflows, if any, in respect of matters pending resolution of thearbitration/appellate proceedings.
2. The Company has disputed various demands raised by tax authorities in respect of Customs, GST as well as pre-GSTlevies such as sales tax and VAT. These cases are pending before appropriate appellate authorities. The management,based on its evaluation and legal advice, believes that the likelihood of an outflow is not probable at this stage.Therefore, these liabilities have not been recognised in the books of account and are disclosed as contingent liabilities.
3. Claims against the Company not acknowledged as debts represent various claims made by third parties in respect ofcontractual obligations, commercial disputes and other matters. The management, based on legal advice, does notconsider these claims as valid liabilities and has therefore not recognised any provision in the financial statements.
The ultimate outcome of these matters is subject to judicial processes and accordingly these have been disclosedas contingent liabilities.
The Company does not expect any reimbursements in respect of the above contingent liabilities.
4. As per E-waste (Management) Rules, 2022, as amended, the company has an obligation to complete the ExtendedProducer Responsibility (EPR) targets. The Company has fulfilled its obligation for the current financial year at therates prevailing/charged in the market by the EPR agencies. Further, Central Pollution Control Board ("the Board")of India has notified higher floor prices for exchange of EPR certificates, which has been legally challenged beforethe Honourable Delhi High Court by several producers in similar businesses. Since the matter is sub judice, the liabilityarising from difference between the floor prices notified by the Board and the rates prevailing/charged in the marketis disclosed as a contingent liability
Capital commitments represent the estimated value of contracts entered by the Company for acquisition of property,plant and equipment and other capital assets, which remain to be executed as at the balance sheet date. Theseobligations are contractual in nature and are not recognised as liabilities since the related assets have not yet beenreceived or the services have not yet been rendered. Accordingly, these are disclosed as commitments and indicatefuture cash outflows.
The carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, other bankbalances, other financial assets and other financial liabilities (other than those specifically disclosed) are considered tobe the same as their fair values, due to their short-term nature.
The fair value of financial instruments as referred to in note 6.1 above has been classified into three categories dependingon the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active marketsfor identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).
The categories used are as follows:
• Level 1 - Quoted prices (unadjusted) in active markets for identical Assets or Liabilities.
• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, eitherdirectly (i.e., as prices) or indirectly (i.e., derived from prices).
• Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Specific valuation techniques used to value financial instruments include:
1. Use of quoted market prices for Listed instruments
2. Expected credit loss model valued by the independent valuer
The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's riskmanagement framework. The Company has constituted a Risk Management Committee (RMC) for identification,evaluation and mitigation of operations, strategic and external risks. RMC has the overall responsibility for monitoringand recovering the Risk Management Plan and associated practices of the Company.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, toset appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies andsystems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company,through its training and management standards and procedures, aims to maintain a disciplined and constructive controlenvironment in which all employees understand their roles and obligations.
The RMC oversees how management monitors compliance with the company's risk management policies and proceduresand reviews the adequacy of the risk management framework in relation to the risks faced by the Company. Thecommittee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews ofrisk management controls and procedures, the results of which are reported to the audit committee.
Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - willaffect the Company's income or the value of its holdings of financial instruments. Market risk is attributable to all marketrisk sensitive financial instruments including foreign currency receivables and payables. The Company is exposed to marketrisk primarily related to foreign exchange rate risk, interest rate risk and the market value of investments. Thus, Company'sexposure to market risk is a function of investing and revenue generating and operating activities in foreign currency. Theobjective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.
Market risk comprises two types of risks.
7.1.1 Foreign Currency Exchange Rate Risk
The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit or Loss, othercomprehensive income and equity.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange raterisks. Currently the Company follows a policy of hedging 100% of its trade payables. On an overall basis, the Companyhas hedged 98.85% of its foreign exchange exposure thus minimising the currency risk.
7.2 Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meetits contractual obligations, and arises principally from the Company's receivables from customers, investment in mutualfunds and cash and cash equivalents.
The maximum exposure to credit risk was H 19,253.06 and H 17,023.47, as at 31st March, 2026 and 31st March, 2025 respectively,being the total carrying value of trade receivables, investments and other financial assets (Security deposit, Depositswith Authorities and Derivative Assets)
The Company makes provision on trade receivables based on Expected Credit loss (ECL) method based on provision matrix.
Trade Receivables:
The Company has outstanding trade receivables amounting to H 6,054.57 lakhs and H 8,170.13 Lakhs as of March 31, 2026,and March 31, 2025, respectively. Trade receivables are unsecured in nature, except to the extent of security depositsreceived from the distributors. The Company's exposure to credit risk is influenced mainly by the individual characteristicsof each customer. Default on account of Trade Receivables happens when the counterparty fails to make contractualpayment when they fall due.
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determineincurred and expected credit losses. Management believes that the unimpaired amounts that are past due are stillcollectible in full, based on historical payment behavior and extensive analysis of customer credit risk.
The movement in the allowance for impairment in respect of trade receivables during the year was as follows:
The Company is mainly exposed to the other price risk due to its investment in mutual funds. The price risk arises due touncertainties about the future market values of these investments. At 31st March, 2026, the investment in mutual fundsamounts to H 12,71734 Lakhs (31st March 2025: H 8,448.08 Lakhs). These are exposed to price risk. The Company has laidpolicies and guidelines which it adheres to minimise price risk arising from investments in mutual funds. A 1% increase/(decrease) in prices would increase the equity and profit or loss by the amounts shown below.
Liquidity needs of the Company are monitored on the basis of monthly and yearly projections. The company's principalsources of liquidity are cash and cash equivalents, cash generated from the operations and bank borrowings.
The Company manages the liquidity needs by continuously monitoring cash inflows and by maintaining adequate cashand cash equivalents. Net cash requirements are compared to available cash in order to determine any shortfalls.
Short term liquidity requirements consist mainly of sundry creditors, expense payable, employee dues and repayment ofloans arising during the normal course of business as of each reporting date. The Company meets its short-term liquidityrequirements primarily through efficient working capital management and by accessing additional and alternative creditfacilities available in the financial market. The Company has acceptances in line with supplier's financing arrangementswhich might invoke liquidity risk as a result of liabilities being concentrated with few financial institutions instead of adiverse group of suppliers. The Company has established an appropriate liquidity risk management framework for themanagement of the Company's short, medium and long-term funding and liquidity management requirements.
The Company assesses long-term liquidity requirements on a periodical basis and manages them through internalaccruals and bank borrowings.
Equity share capital and other equity are considered for the purpose of Company's capital management. The Companymanages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders.The capital structure of the Company is based on management's judgement of its strategic and day-to-day needswith a focus on total equity so as to maintain investor, creditors and market confidence. The management and theBoard of Directors monitor the return on capital as well as the level of dividends to shareholders. The Company may takeappropriate steps in order to maintain, or if necessary, adjust, its capital structure.
The Board of Directors seeks to maintain a balance between the higher returns that might be possible with higher levelsof borrowings and the advantages and security afforded by a sound capital position.
The Company monitors capital using a ratio of 'adjusted net debt' to 'total equity'. For this purpose, adjusted net debt isdefined as total liabilities, comprising interest-bearing loans and borrowings, less cash and cash equivalents and otherbank balances. Total equity comprises all components of equity.
a) Provident Fund:
The Company's Provident Fund (defined contribution fund) is managed by Regional Provident Fund Commissioner.The Company pays fixed contribution to provident fund at pre-determined rate.
b) Gratuity:
Gratuity is a defined benefit plan, in respect of past services provided by the employees is quantified based onthe actuarial valuation.
The scheme is funded by the Company and the liability is recognised on the basis of contribution payable to the insurer.Disclosure of information as required under Ind AS-19 have been made in accordance with the actuarial valuation.
The summarised position of various defined benefits recognised in the Statement of Profit and Loss, OtherComprehensive Income (OCI) and Balance Sheet and other disclosures are as under:
b. The Company has been sanctioned a working capital facility of H4,000 Lakhs, by SBI Bank, valid up to October 23,2026, H2,000 Lakhs by IDBI valid up to October 13, 2026, and H4,000 Lakhs by ICICI bank valid up to May 26, 2026.The outstanding balance as on March 31, 2026 - H Nil (Previous Year - H Nil). This facility is secured by way of ahypothecation of inventories and receivables on pari-passu first charge basis both present & future.
| Labour Code, 2025
During the year, pursuant to the consolidation of 29 labour regulations into 4 New Labour Codes effective November 21,2025, the company reassessed its employee benefit obligations and recognised an incremental liability of H159.18 Lakhsunder Exceptional items.
22 Recent Ind - AS Pronouncements
Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under Companies(Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March, 2026, MCA has notifiedfollowing Amendment to Ind AS, applicable to the Company w.e.f. April 01, 2025
i) Ind AS 21 - The Effects of Changes in Foreign Exchange Rates Lack of Exchangeability
ii) Ind AS 12 - Income Taxes relating to International Tax Reform - Pillar Two Model Rules - Exception to recognition anddisclosure of deferred tax.
iii) Amendments to Ind AS 7 - Cash flow statement and Ind AS 107 - Financial Instrument Disclosures relating to supplierfinance arrangements.
iv) Ind AS 1 - Presentation of Financial Statements Classification of Liabilities as current or non- current and non- currentliabilities with covenants.
The Company has reviewed the new pronouncements and based on its evaluation has determined that it does nothave any significant impact in its financial statements.
23 Additional Disclosures
Additional information and disclosures as required under Schedule III to the act to the extent applicable to the companyhas been disclosed.
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against theCompany for holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companiesbeyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2026.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreignentities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest inother 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.
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectlylend 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.
(vii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered ordisclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or surveyor any other relevant provisions of the Income Tax Act, 1961).
(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or anygovernment authority.
(ix) The Company has neither declared nor paid any dividend during the year.
(x) Disclosure on number of layer of companies is not applicable as there are no such transactions.
(xi) There are no scheme of arrangements approved by the Competent authority in terms of Sections 230 to 237 of theCompanies Act, 2013 during the year.
(xii) The title deeds of all of the immovable properties included in Property, Plant and Equipment are held in the name ofthe Company.
(xiii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assetsor both during the current or previous year.
(xiv) There are no outstanding loans or advances in the nature of loans that are granted to Promoters, Directors, KMPsand the related parties.