o) Provisions, contingent liabilities and contingent assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation.
These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. If the
effect of the time value of money is material, provisions are discounted. The discount rate used to determine the
present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks
specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
Contingent liabilities exist when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Company, or a present obligation that arises from past events where it is either not
probable that an outflow of resources will be required or the amount cannot be reliably estimated. Contingent
liabilities are appropriately disclosed unless the possibility of an outflow of resources embodying economic
benefits is remote.
A contingent asset is a possible asset arising from past events, the existence of which will be confirmed only by
the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the
Company. Contingent assets are not recognised till the realisation of the income is virtually certain. However, the
same are disclosed in the financial statements where inflows of economic benefits are possible.
p) Cash and cash equivalents
Cash and cash equivalents for the purpose of presentation in the statement of cash flows comprises of cash
at bank and in hand, bank overdraft and short term highly liquid investments/bank deposits with an original
maturity of three months or less that are readily convertible to known amounts of cash and are subject to an
insignificant risk of changes in value.
q) Events after the reporting period
Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting
period. The financial statements are adjusted for such events before authorisation for issue.
Non-adjusting events are events that are indicative of conditions that arose after the end of the reporting period.
Non-adjusting events after the reporting date are not accounted but disclosed.
r) Earnings Per Share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
• The profit attributable to owners of the company
• By the weighted average number of equity shares outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the year and excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:
• The after income tax effect of interest and other financing costs associated with dilutive potential
equity shares, and
• The weighted average number of additional equity shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.
The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been
actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive
potential equity shares are deemed converted as at the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined independently for each period presented.
The number of equity 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
s) Offsetting instruments
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise
the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future
events and must be enforceable in the normal course of business and in the event of default, insolvency or
bankruptcy of the Company or the counterparty.
t) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker (CODM) as defined by Ind AS- 108, "Operating segment".
Company's income and expenses including interest are considered as part of un-allocable income and expenses
which are not identifiable to any business segment. Company's asset and liabilities are considered as part of un¬
allocable assets and liabilities which are not identifiable to any separate business segment.
u) Financial Risk Management
Risk management framework
The Company's Board of Director has overall responsibility for the establishment and oversight of the Company's
risk management framework. The Board has established the Risk Management Policy.
The Company's risk management policies are established to identify and analyse the risks faced by the Company,
to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies
and systems 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 control environment in which all employees understand their roles and obligations.
The Audit Committee oversees how management monitors compliance with the company's risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks
faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit function, which
regularly reviews risk management controls and procedures, the results of which are reported to the Audit
Committee.
The Company has exposure to Credit, Liquidity and Market risks arising from financial instruments:
A. Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company's receivables from
customers.
Trade and other receivables:-
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the factors that may influence the credit risk of its customer base,
including the default risk of the country in which customers operate.
The Risk Management Committee has established a credit policy under which each new customer is
analysed individually for Creditworthiness before the Company's standard payment and delivery terms and
conditions are offered. Credit limits are established for each customer and reviewed periodically.
At the end of the reporting period, there are no significant concentrations of credit risk. The carrying
amount reflected above represents the maximum exposure to credit risk.
B. Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Company's
approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its
liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Company's reputation.
C. Market Risk
Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange rates
and interest rates which will affect the Company's financial position. Market risk is attributable to all market
risk sensitive financial instruments including foreign currency receivables and payables.
Capital Management
The Company's objective for capital management is to maximize shareholder wealth, safeguard business
continuity and support the growth of the Company. The Company determines the capital management
requirement based on annual operating plans and long term and other strategic investment plans. The
funding requirements are met through a mix of equity, borrowings and operating cash flows.
Interest rate risk Management
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The company is exposed to interest rate risk because company
borrows funds at both fixed and floating interest rates. The risk is managed by the company by maintaining
an appropriate mix between fixed and variable rate borrowings.
Statement of Cash flows
Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing activities of the Company are based on
classification made in a manner considered most appropriate to Company's business.
Nature of securities
The cash credit facilities are secured by way of pari passu first charge on entire current assets of the Company
including stocks of raw material, goods in transit and book debts along with second pari passu charge on entire
fixed assets of the Company is excluding moulds and dies, Gurgaon and Manesar Plants.
The sales invoice discounting facility has the exclusive charge on debtors of "Maruti Suzuki India Limited" funded
by Yes Bank Ltd.
a) Cash credit facilities outstanding from Axis Bank Limited is Nil (Previous year Rs. 155.20) carry interest of
11.45% computed on the daily basis on the actual amount utilized, and are repayable on demand.
b) Cash credit facilities outstanding from Kotak Mahindra Bank Limited is Rs. 270.12 (Previous year Rs. 446.35)
carry interest of 9.80% computed on the daily basis on the actual amount utilized, and are repayable on
demand.
c) Cash credit facilities outstanding from Yes Bank Limited is Rs. 2,576.35 (Previous year Rs 1,109.90) carry interest
of 10.45% computed on the daily basis on the actual amount utilized, and are repayable on demand.
d) Sales invoice discounting outstanding from Yes Bank Limited is Rs 2,986.88 (Previous year Rs 2,412.20) carry
interest of 7.95% computed on the daily basis on the actual amount utilized, and are repayable on demand.
e) Revolving loan against tentative delivery instruction (TDI) from MSIL outstanding from Kotak Mahindra Bank
Limited is Rs 858.38 (Previous year Rs 1,000.00) carry interest of 9.20% computed on the daily basis on the
actual amount utilized, and are repayable on 75 days from usance.
The quarterly returns or statements of current assets filed by the company with banks are in arrangement with
books of accounts of the company. Further there is no material discrepancy between books & information
submitted to bank.
(iii) Commitments
Estimated amount of contracts, remaining to be executed on land Nil (Previous year ? 2,080.81 lakh), on machinery
/ spare parts of machinery (net of advances) ? 1,306.69 lakh (Previous year ? 370.93 lakh (approx.) payable in USD
86,390 and JPY 5,42,55,000), on factory building ? 529.69 lakh (Previous year Nil).
32. Post retirement employee benefits:
(i) Defined benefit plans such as gratuity
The company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. 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 company has a defined benefit gratuity plan. The scheme is funded with "Life
Insurance Corporation" in the form of a qualifying insurance policy. The present value of obligation is determined
based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service
giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the
final obligation.
The above sensitivity analysis is based on a change in each assumption while holding all other assumptions
constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When
calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method
(present value of the defined benefit obligation calculated with the projected unit credit method at the end of
the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance
sheet.
Risk exposure
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are
detailed below:
Interest rate risk:
The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the
defined benefit obligation will tend to increase.
Salary inflation risk:
Higher than expected increases in salary will increase the defined benefit obligation.
Demographic risk:
This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal,
disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward
and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to
overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically
costs less per year as compared to a long service employee.
(ii) Defined contribution plans such as provident fund
The Company has defined contribution plans namely provident fund. Contributions are made to provident
fund at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund
administered by the Government. The obligation of the Company is limited to the amount contributed and it has
not further contractual nor any constructive obligation. The expense recognised during the year towards defined
contribution plan is as follows:
33. Other income includes interest income ?8.49 lakh (Previous year ?1.51 lakh), tax deducted thereon is ?0.46 lakh
(Previous year Nil lakh), Profit on sale of property, plant and equipment is Nil (Previous year ?2.35 lakh), Duty draw back
received ?2.63 lakh (Previous year ?2.35 lakh).
34. Leases
Company as a lessee
The Company has lease contracts for various items of Land and Building in its operations. Leases generally have lease
terms between 1 and 33 years. The Company's obligations under its leases are secured by the lessor's title to the leased
assets. Generally, the Company is restricted from assigning and subleasing the leased assets and some contracts require
the Company to maintain certain financial ratios.
The Company has a lease contract with his joint venture partner namely Maruti Suzuki India Limited for 33 years for use
of land of Gurugram factory premises on annual rent of ?!/-. The Company has not created ROU assets and liabilities on
this because there is no material impact on the financials.
The Company had total cash outflows for leases of ?192.56 lakh in March 31, 2025 (?189.64 lakh in March 31, 2024).
There are no non cash additions to right-of-use assets and lease liabilities. There are no future cash outflows relating to
leases that have not yet commenced.
35. Investment in equity share is measured at fair value through other comprehensive income as per Ind AS 109.
Company was allotted 12,50 000 equity shares of face value of Rs.10 each in March 1995 by Caparo Maruti Limited (CML)
constituting 10% equity capital of CML in total. The amount of Rs.125 lacs in this regard is reflected as an investment in
the balance sheet of the company. However, CML, illegally, unilaterally passed a resolution in its board cancelling the
shares held by the company and allegedly unlawfully modified the register of members in the year 2004. Accordingly,
the company filed a Plaint before the Hon'ble High Court of Delhi for nullifying such illegal act by CML. The matter is
pending before the Hon'ble High Court of Delhi. Company has not made any provision in this regard in the balance
sheet as the Management is of strong opinion that judicial decision will be in its favour as the Company was arbitrarily
denied its rights as a shareholder and the company firmly believes that it continues to be the lawful shareholder of CML.
The company is unable to ascertain the fair value of investment in equity shares in Caparo Maruti Limited as it is not
practicably feasible to do so and therefore, no fair value adjustment have been made in the books of accounts and these
equity instruments have been carried forward at cost as at Balance sheet date.
36. Segment information
The company is engaged primarily in manufacturing plastic injection moulding parts and moulds & dies. The company
has identified two operating segments i.e.
Plastic injection moulding parts:
The segment comprises manufacturing plastic injection moulding parts.
Moulds & dies:
The segment comprises manufacturing moulds & dies.
Both segments are reportable segment as per Ind AS-108 "Operating Segments". The geographical segmentation is not
relevant, as there is insignificant export.
Segments have been identified considering the nature of product and differential risk and returns of segment. These
business segments are monitored and reviewed by the Chairman cum Managing Director (Chief operating decision
maker) for the purpose of making decisions about resource allocation and performance assessment.
Segment measurement:
The measurement principles for segment reporting are based on IND AS 108. Segment's performance is evaluated
based on segment revenue and profit and loss from operating activities.
1. Operating revenues and expenses related to both third party and inter-segment transactions are included in
determining the segment results of each respective segment.
2. Operating expense comprises of consumption of materials, employee benefits expenses, depreciation and other
expenses.
3. Finance expenses incurred are not allocated to individual segment and the same has been reflected at the Group
level for segment reporting.
4. The total assets disclosed for each segment represent assets directly managed by each segment, and primarily
include receivables, Property, Plant and Equipment, inventories, operating cash and bank balances, and exclude
income tax receivable, land & building which is used commonly for both segments.
5. Segment liabilities comprise operating liabilities and exclude liabilities associated with cash credit borrowings,
deferred tax liabilities, provision for gratuity and GST payable.
6. Segment capital expenditure is solely related to plastic injection moulding parts.
7. Unallocated expenses comprise depreciation & security expenses of commonly used building & group gratuity
contribution.
45. Capital Management
The Company manages its capital to ensure that the company will be able to continue as going concerns while
maximizing the return to stakeholders through the optimization of the debt and equity balance.
The capital structure of the Company consists of net debt (borrowings as detailed in notes 15 and 18 offset by cash
and bank balances) and total equity of the company. The company is not subject to any externally imposed capital
requirements.
The Company's risk management committee reviews the capital structure of the Company on a semi-annual basis. As
part of this review, the committee considers the cost of capital and the risks associated with each class of capital. The
Company monitors capital on the basis of following gearing ratio, which is net debt divided by total equity plus debt.
*Fair value of instruments is classified in various fair value hierarchies based on the following three levels:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques, which maximise the use of observable market data and rely as little as possible on entity specific estimates.
If significant inputs required to fair value an instruments are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs are not based on observable market data, the instruments are included
in level 3.
Management uses its best judgement in estimating the fair value of its financial instruments. However, there are
inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value
estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid
in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting
dates may be different from the amounts reported at each reporting date.
7. Financial risk management:
The Company's Corporate Treasury function provides services to the business, co-ordinates access to domestic and
international financial markets, monitors and manages the financial risks relating to the operations of the company
through internal risk reports which analyses exposures by degree and magnitude of risks. These risks include market risk
(including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
The Corporate Treasury function reports quarterly to the company's risk management committee, an Independent
body that monitors risks and policies implemented to mitigate risk exposures.
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected
by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure.
The sensitivity analysis in the following sections relate to the position as at March 31, 2025 and March 31, 2024. The
sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based
on the financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.
a) Foreign currency risk management
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily
to the trade / other payables, trade / other receivables and derivative assets / liabilities. The risk primarily relate to
fluctuations in US Dollar, EURO and JPY against the functional currencies of the Company. The Company's exposure
to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign
exchange rate fluctuations by assessing its exposure to exchange rate risks.
c) Credit risk management
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to
the Company. The company has adopted a policy of only dealing with creditworthy counterparties and obtaining
sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The
company only transacts with entities that are rated the equivalent of investment grade and above. This information
is supplied by independent rating agencies where available and, if not available, the company uses other publicly
available financial information and its own trading records to rate its major customers. The company's exposure
and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions
concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that
are reviewed and approved by the risk management committee annually.
d) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an
appropriate liquidity risk management framework for the management of the company's short-term, medium-
term and long-term funding and liquidity management requirements. The company manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring
forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Liquidity and interest risk tables
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities
with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial
liabilities based on the earliest date on which the company can be required to pay.
The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the
undiscounted amount is derived from interest rate curves at the end of the reporting period.
Note:
(i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium of any other sources
or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries")
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party
identified by or on behalf of the Company (Ultimate Beneficiaries).
(ii) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company
shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company
("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
52. Ratios
The following are analytical ratios for the year ended March 31,2025 and March 31,2024
1. Long term borrowings Short term borrowings
2. Net Profit after taxes Non-cash operating expenses Interest other adjustments like loss or gain on sale of
Fixed assets etc.
3. Interest Lease payments for the current year Repayments of long term borrowings
4. Purchase of raw material stores and spares including repair & maintenance packaging
5. Total equity Lease liabilities Total borrowings Deferred tax liability - Intangible assets
Reasons for variations
6. Debt Equity Ratio has increased primarily due to increase in total debt.
7. Return on Equity ratio has increased primarily due to increase in turnover and higher profitability thereof.
8. Net capital turnover ratio has decreased primarily due to an increase in current assets which led to decrease in
working capital
9. Net profit ratio has increased primarily due to increase in turnover and higher profitability thereof.
10. Return on Investment ratio primarily increased due to increase in turnover and higher profitability thereof.
53. Previous year figures have been regrouped / rearranged, wherever considered necessary to current year's classification.
The accompanying notes are forming part of these financial statements
As per our report attached
For KMGS & Associates
Chartered Accountants
Firm Registration No: 004730N
Lalit Goel Aditya Jindal Sanjiivv Jindall Sandeep Goel
Partner Chairman cum Managing Director Whole Time Director - Strategy Independent Director
Membership No: 091100 DIN - 01717507 DIN - 00017902 DIN - 08471700
Ravinder Hooda Sandhya Kumari
Place : Gurugram Chief Financial Officer Company Secretary
Date : 23rd May 2025 ICSI M. No. FCS13540
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