3.2.9 Provision for liabilities and charges, Contingent liabilities and contingent assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present
obligation as a result of past events and it is probable that there will be an outflow of resources. Liabilities
which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated
as contingent, and disclosed by way of notes to the accounts. Contingent assets are neither recognized nor
disclosed in the Financial statements.
3.2.10 Taxation
a) Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to
the taxation authorities. The tax rates and tax laws used to compute the amount are those that are applicable at
the reporting date. Current income tax relating to items recognised outside profit or loss is recognised outside
profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation
to the underlying transaction either in OCI or directly in equity.
b) The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow the deferred tax asset to be
utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in
other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.
c) Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the
form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that
the Company will pay normal income tax. In the year in which the MAT credit becomes eligible to be recognized
as an asset in accordance with the recommendations contained in guidance note issued by the Institute of
Chartered Accountants of India, the said asset is created by way of a credit to the Profit and Loss Account and
shown as MAT Credit Entitlement under Loans & Advances. The Company reviews the same at each balance
sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer
convincing evidence to the effect that Company will pay normal Income Tax during the specified period.
3.2.11 Employee benefit schemes
Retirement benefits to employees comprise contribution to Provident Fund, Gratuity and Leave Encashment
under the scheme of the company. The company makes yearly contribution to the Provident Fund authorities
in accordance with the provisions of the relevant statute. The contributions to the provident fund are charged to
the statement of profit and loss for the year.
a) Gratuity
Gratuity is a defined benefit obligation. The liability is provided for on the basis of actuarial valuation made at
the end of each financial year. Valuation is done on “Projected Unit Credit Method”. Gratuity is administered by
a trust formed for this purpose through the Group Gratuity with Life Incorporation of India.
b) Leave encashment
Leave encashment liability, being a retirement benefit, is accounted for on actuarial valuation basis.
3.2.12 Foreign currency transactions
Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction. Foreign
currency denominated monetary assets and liabilities are restated into the functional currency using exchange rates
prevailing on the balance sheet date. Gains and losses arising on settlement and restatement of foreign currency
denominated monetary assets and liabilities are included in the statement of profit and loss. The Company's financial
statements are presented in INR. The Company determines the functional currency as INR on the basis of primary
economic environment in which the entity operates.
3.2.13 Earnings per share
Earning Per Share (EPS) is 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 determined as per
Accounting Standard.
For the purpose of calculating Diluted Earning Per share, the Net Profit or Loss for the period attributable to equity
shareholders is divided by the Weighted Average Number of shares outstanding during the period determined as per
Accounting Standard after adjusting for the effects of all dilutive potential equity shares.
The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented
for any share splits and bonus shares issues including for changes effected prior to the approval of the financial
statements by the Board of Directors.
3.2.14 Cash Flow Statement
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits.
Cash flows are reported using the indirect method, whereby a profit before tax is adjusted for the effects of
transactions of non cash nature and any deferrals or accruals of past or future cash payments or receipts. The cash
flows from operating, financing and investing activities of the company are segregated.
3.2.15 Segment Reporting
The entire operations of the company relates to only one Segment, VIZ. Automobile Components. Hence, as per IND
AS-108 issued by ICAI, there is no reportable Segment
3.2.16 Research and development
Revenue expenditure towards research and development is charged to the statement of profit and loss in the year it
is incurred. Capital expenditure on research and development related to property, plant and equipments is included
in the cost of related property, plant and equipments.
3.2.17 Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement
at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent
on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that
right is not explicitly specified in an arrangement. Operating lease payments are recognised as an expense in the
statement of profit and loss on a straight-line basis over the lease term.
3.2.18 Use of Estimates
The preparation of the financial statements in conformity with Ind AS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income, expenses and disclosures of contingent assets and liabilities at the date of these financial
statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ
from these estimates under different assumptions and conditions. Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate
is revised and future periods affected. In particular, information about significant areas of estimation uncertainty and
critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in
the financial statements.
3.2.19 Share Issue Expenses
Share issue expenses are adjusted from Securities Premium Account at the time of issue of respective shares as
prescribed under the provisions of companies Act.
3.2.20 Derivative Financial Istruments
The Company enters into derivative financial instruments viz. foreign exchange forward contracts to manage its
exposure to interest rate, foreign exchange rate risks and commodity prices. The Company does not hold derivative
financial instruments for speculative purposes. 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 excluding derivatives designated as
cashflow hedge.
3.2.21 Hedge Accounting
a) Hedging instruments are initially measured at fair value, and are re-measured at subsequent reporting dates.
Changes in the fair value of these derivatives that are designated and effective as hedges of future cash flows
are recognised in other comprehensive income and accumulated under the heading reserve and the ineffective
portion is recognised immediately in the statement of Profit and Loss
b) Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised,
or no longer qualifies for hedge accounting. For forecasted transactions, any cumulative gain or loss on the
hedging instrument recognised in hedging reserve is retained until the forecast transaction occurs upon which it
is recognised in the statement of profit and loss. If a hedged transaction is no longer expected to occur, the net
cumulative gain or loss accumulated in hedging reserve is recognised immediately to the statement of profit and
loss.
Defined Contribution Plans: -
The Company has recognised INR 18.55 lakhs as expenses in the Statement of Profit and loss account for the year,
(P.Y. INR 16.11 Lakhs)
Defined Benefit Plans: -
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.
The scheme is funded.
The following tables summarize the components of net benefit expense recognized in the Statement of Profit & Loss,
the funded Status and amounts recognized in the balance sheet for the respective plans (As per Actuarial Valuation
as on 31st march 2025)
Explanation for Variance Exceeding 25%
There is no variation exceeding 25% in respect of ratios above requiring explanation
In the opinion of the management, the value on realization of current assets, loans & advances in the ordinary
46 course of business would not be less than the amount at which they are stated in the Balance Sheet and
provisions for all known liabilities has been made.
47 Previous year figures have been regrouped/ reclassified wherever found necessary to correspond with the current
year classification
48 All amounts in the financial statements are rounded off to Lakhs with two digits, except as otherwise stated.
49 Current year figures are shown in bold prints
As per our report of even date For and on behalf of the Board of Directors of
For RAKESH RAJ & ASSOCIATES TALBROS ENGINEERING LIMITED
Chartered Accountants
FRN: 005145N
Sd/- Sd/- Sd/-
(Abhishek Kumar) Vijay Kumar Sharma Ankush Jindal
Partner Executive Director Executive Director
DIN:06394784 DIN:03634690
Membership No. 519429 Sd/- Sd/-
Date: 20.05.2025 Divam Mittal Manoj Kumar Chauhan
Place: Faridabad Company Secretary Chief Financial Officer
UDIN: 25519429BMJKTY5570 M.No. : A74699
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