(m) Provisions and Contingencies
Provisions, contingent liabilities and contingent assets are
accounted for and disclosed in accordance with Ind AS 37,
Provisions, Contingent Liabilities and Contingent Assets.
(i) Provisions
Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation. The expense
relating to a provision is presented in the statement of
profit and loss net of any reimbursement. 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 recognized as
a finance cost.
Where the Company expects some or all of the
expenditure required to settle a provision will be
reimbursed by another party, the reimbursement is
recognized when, and only when, it is virtually certain
that reimbursement will be received if the entity
settles the obligation. The reimbursement is treated
as a separate asset.
Provisions are reviewed at each balance sheet date
and adjusted to reflect the current best estimate.
(ii) Contingent Liabilities
Contingent liabilities are disclosed 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 to settle or a
reliable estimate of the amount cannot be made.
(iii) Contingent Assets
Contingent asset being a possible asset that arises
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, is not recognized
but disclosed in the financial statements.
(n) Employee Benefits
Employee benefits are accounted for in accordance with
Ind AS 19, Employee Benefits.
(i) Short-Term Obligations
Liabilities for wages and salaries including non¬
monetary benefits that are expected to be settled
within the operating cycle after the end of the period
in which the employees render the related services
are recognized in the period in which the related
services are rendered and are measured at the
undiscounted amount expected to be paid.
(ii) Other Long-Term Employee Benefit Obligations
Liabilities for leave encashment and compensated
absences which are not expected to be settled wholly
within the operating cycle after the end of the period
in which the employees render the related service
are measured at the present value of the estimated
future cash outflows which are expected to be paid
using the projected unit credit method. The benefits
are discounted using the market yields at the end
of the reporting period on Government bonds that
have terms approximating to the terms of the related
obligation. Remeasurement as a result of experience
adjustments and changes in actuarial assumptions
are recognized in profit or loss.
(iii) Post-Employment Obligations
(iii) (a) Defined Benefit Plans
The Company has defined benefit plans namely
gratuity for employees. The liability or asset
recognized in the balance sheet in respect of
gratuity plans is the present value of the defined
benefit obligation at the end of the reporting
period less the fair value of plan assets. The
defined benefit obligation is calculated by
actuaries using the projected unit credit method.
The present value of the defined benefit
obligation is determined by discounting the
estimated future cash outflows by reference
to market yields at the end of the reporting
period on government bonds that have terms
approximating to the terms of the related
obligation.
The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan
assets. This cost is included in employee benefit
expense in profit or loss.
Remeasurement of gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognized in the
period in which they occur, directly in other
comprehensive income. They are included in
retained earnings in the Statement of Changes
in Equity and in the balance sheet.
Changes in the present value of the defined
benefit obligation resulting from plan
amendments or curtailments are recognized
immediately in profit or loss as past service cost.
(iii) (b) Defined Contribution Plans
The Company has defined contribution plans
for post retirements benefits, namely, Employee
Provident Fund Scheme administered through
Provident Fund Commissioner. The Company's
contribution is charged to revenue every
year. The Company has no further payment
obligations once the contributions have been
paid. The Company's contribution to State Plans
namely Employees' State Insurance Fund and
Employees' Pension Scheme are charged to the
Statement of Profit and Loss every year.
(o) Share-based Payments
As at 31 March 2026, the Company did not have any
employee stock option plan or other share-based payment
arrangement granted or outstanding. Accordingly, Ind AS
102, Share-based Payment, is not applicable for recognition
or measurement in these financial statements.
(p) Cash and Cash Equivalents
Cash flows and cash and cash equivalents are presented in
accordance with Ind AS 7, Statement of Cash Flows.
Cash and cash equivalent in the balance sheet comprise of
cash at banks and on hand and deposits with a maturity of
three months or less, which are subject to an insignificant
risk of changes in value.
(q) Taxes
Current tax and deferred tax are accounted for in
accordance with Ind AS 12, Income Taxes.
Taxes comprise of current income tax and deferred tax.
(i) Current Income Tax
The tax currently payable is based on taxable profit
for the year. Taxable profit differs from 'profit before
tax' as reported in the statement of profit and loss
because of items of income or expense that are
taxable or deductible in other years and items that
are never taxable or deductible. The Company's
current tax is calculated using tax rates that have
been enacted or substantively enacted by the end of
the reporting period.
(ii) Deferred Tax
Deferred tax is recognized on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding
tax bases used in the computation of taxable profits.
Deferred tax liabilities are recognized for all taxable
temporary differences. Deferred tax assets are
recognized for all deductible temporary differences
and tax losses incurred to the extent that it is
probable that taxable profits will be available against
which those deductible temporary differences can
be utilized. Such deferred tax assets and liabilities
are not recognized if the temporary difference
arises from the initial recognition (other than in a
business combination) of assets and liabilities in a
transaction that affects neither the taxable profit nor
the accounting profit.
The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of
the asset to be recovered.
Deferred tax liabilities and assets are measured at
the tax rates that are expected to apply in the period
in which the liability is settled or the asset realized,
based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the
reporting period.
The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from
the manner in which the Company expects, at the
end of the reporting period, to recover or settle the
carrying amount of its assets and liabilities.
(iii) Current and deferred tax for the year
Current and deferred tax are recognized in statement
of profit & loss, except when they relate to items that
are recognized in other comprehensive income or
directly in equity, in which case, the income taxes are
also recognized in other comprehensive income or
directly in equity respectively.
(iv) Offsetting
Current tax assets and current tax liabilities are offset
when there is a legally enforceable right to set off the
recognized amounts and there is an intention to settle
the asset and the liability on a net basis. Deferred
tax assets and deferred tax liabilities are offset when
there is a legally enforceable right to set off current
tax assets against current tax liabilities; and the
deferred tax assets and the deferred tax liabilities
relate to income taxes levied by the same taxation
authority.
(r) Leases
Leases are accounted for in accordance with Ind AS
116, Leases.
The Company's lease asset classes primarily consist of
leases for Building & Warehousing facilities. The Company
assesses whether a contract is or contains a lease, at
inception of a contract. A contract is, or contains, a lease
if the contract conveys the right to control the use of
an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the
right to control the use of an identified asset, the Company
assesses whether:
• The contract involves the use of an identified asset
• The Company has substantially all of the economic
benefits from use of the asset through the period of
the lease and
• The Company has the right to direct the use of
the asset.
At the date of commencement of the lease, the Company
recognizes a right-of-use asset ("ROU") and a corresponding
lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of twelve months
or less (short term leases) and leases of low value assets.
These short-term and leases of low value assets, the
Company recognizes the lease payments as an operating
expense on a straight-line basis over the term of the lease.
The right-of-use assets are initially recognized at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses, if any. Right-of-use assets are
depreciated from the commencement date on a straight¬
line basis over the shorter of the lease term and useful life
of the underlying asset.
The lease liability is initially measured at the present value
of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if
not readily determinable, using the incremental borrowing
rates. The lease liability is subsequently remeasured by
increasing the carrying amount to reflect interest on the
lease liability and reducing the carrying amount to reflect
the lease payments made.
A lease liability is remeasured upon the occurrence
of certain events such as a change in the lease term or
a change in an index or rate used to determine lease
payments. The remeasurement normally also adjusts the
leased assets.
Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments have
been classified as financing cash flows.
(s) Impairment of Non-Financial Assets
Impairment of non-financial assets is assessed and
recognised in accordance with Ind AS 36, Impairment
of Assets.
The Company assesses at each reporting date whether
there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for
an asset is required, the Company estimates the asset's
recoverable amount. An asset's recoverable amount is
the higher of an assets or cash-generating units (CGU)
fair value less costs of disposal and its value in use. The
recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are
largely independent of those from other assets or Company
of assets. Where the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset.
In determining net selling price, recent market transactions
are taken into account, if available. If no such transactions
can be identified, an appropriate valuation model is used.
These calculations are corroborated by valuation multiples,
quoted share prices for publicly traded companies or other
available fair value indicators.
An assessment is made at each reporting date to determine
whether there is an indication that previously recognized
impairment losses no longer exist or have decreased.
If such an indication exists, the Company estimates
the assets or CGU's recoverable amount. A previously
recognized impairment loss is reversed only if there has
been a change in the assumptions used to determine the
asset's recoverable amount since the last impairment loss
was recognized. The reversal is limited so that the carrying
amount of the asset does not exceed its recoverable
amount, nor exceed the carrying amount that would have
been determined, net of depreciation, had no impairment
loss been recognized for the asset in prior years. Such
reversal is recognized in the statement of profit or loss
unless the asset is carried at a revalued amount, in which
case, the reversal is treated as a revaluation increase.
(t) Fair Value Measurement
Fair value measurement and related disclosures are made
in accordance with Ind AS 113, Fair Value Measurement.
The Company measures certain financial instruments at fair
value at each Balance Sheet date.
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:
• In the principal market for the asset or liability, or
• 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, maximizing the
use of relevant observable inputs and minimizing the use
of unobservable inputs.
All assets and liabilities for which fair value is measured
or disclosed in the Standalone financial statements are
categorized 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:
• Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities
• Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable
• 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 recognized in the
Standalone financial statements on recurring basis,
the Company determines whether transfers have
occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is
material 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.
(i) Investments in Subsidiaries
Investments in subsidiaries are accounted for in
accordance with Ind AS 27, Separate Financial
Statements.
Investments in subsidiaries are carried at cost less
accumulated impairment losses, if any, in accordance
with Ind AS 27 - Separate Financial Statements. The
carrying amount of such investments is reviewed
at each reporting date to determine whether there
is any indication of impairment. If such indication
exists, the recoverable amount of the investment is
estimated and an impairment loss is recognised in the
Statement of Profit and Loss to the extent the carrying
amount exceeds the recoverable amount.
(u) Financial Instruments
Financial assets and financial liabilities are recognised
and measured in accordance with Ind AS 109, 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 and financial
liabilities are recognized when the Company becomes a
party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured
at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial instruments (other
than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from
the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets
or financial liabilities at fair value through profit or loss are
recognized immediately in profit or loss. Subsequently,
financial instruments are measured according to the
category in which they are classified.
(i) Financial Assets
(i) (a) Initial recognition and measurement
All financial assets (other than equity investment
in subsidiaries) are recognized 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. Purchases or
sales of financial assets that require delivery
of assets within a time frame established by
regulation or convention in the marketplace
(regular way trades) are recognized on the trade
date, i.e., the date that the Company commits to
purchase or sell the asset.
(i) (b) Subsequent measurement
All recognized financial assets are subsequently
measured in their entirety at either amortized
cost using the effective interest method or fair
value, depending on the classification of the
financial assets.
(i) (c) Classification of Financial Assets
Classification of financial assets depends on the
nature and purpose of the financial assets and
is determined at the time of initial recognition.
The Company classifies its financial assets in the
following measurement categories:
• those to be measured subsequently at fair
value (either through other comprehensive
income, or through profit or loss), and
• those measured at amortized cost
The classification depends on the entity's
business model for managing the financial assets
and the contractual terms of the cash flows.
A financial asset that meets the following two
conditions is measured at amortized cost unless
the asset is designated at fair value through
profit or loss under the fair value option:
• Business model test: the objective of the
Company's business model is to hold the
financial asset to collect the contractual
cash flows.
• Cash flow characteristic test: the
contractual term of the financial asset
give rise on specified dates to cash flows
that are solely payments of principal
and interest on the principal amount
outstanding.
A financial asset that meets the following two
conditions is measured at fair value through
other comprehensive income unless the asset
is designated at fair value through profit or loss
under the fair value option:
• The business model test: the financial asset
is held within a business model whose
objective is achieved by both collecting
cash flows and selling financial assets.
• Cash flow characteristic test: the
contractual term of the financial asset
gives rise on specified dates to cash flows
that are solely payments of principal
and interest on the principal amount
outstanding.
All other financial assets are measured at fair
value through profit or loss.
Equity investment in Other Entities at fair value
through Profit or loss (FVTPL)
Investment in equity instrument of other than
subsidiaries, joint ventures and associates are
classified at fair value through profit or loss,
unless the Company irrevocably elects on initial
recognition to present subsequent changes in
fair value in other comprehensive income for
investments in equity instruments which are not
held for trading.
Financial assets that do not meet the amortized
cost criteria or fair value through other
comprehensive income criteria are measured
at fair value through profit or loss. A financial
asset that meets the amortized cost criteria or
fair value through Other comprehensive income
criteria may be designated as at fair value through
profit or loss upon initial recognition if such
designation eliminates or materially reduces a
measurement or recognition inconsistency that
would arise from measuring assets and liabilities
or recognizing the gains or losses on them on
different bases.
Financial assets which are fair valued through
profit or loss are measured at fair value at the
end of each reporting period, with any gains or
losses arising on Remeasurement recognized in
profit or loss.
(i) (d) Trade & Other Receivables
Trade receivables are recognized initially at fair
value and subsequently measured at amortized
cost less provision for impairment.
(i) (e) Impairment of Financial Assets
The Company assesses impairment based
on expected credit losses (ECL) model to the
following:
• financial assets measured at
amortized cost
• financial assets measured at fair value
through other comprehensive income
Expected credit losses are measured through a
loss allowance at an amount equal to:
• the twelve month expected credit losses
(expected credit losses that result from
those default events on the financial
instruments that are possible within
twelve months after the reporting date); or
• full lifetime expected credit losses
(expected credit losses that result from all
possible default event over the life of the
financial instrument).
In case of trade receivables, the Company follows
a simplified approach wherein an amount equal
to lifetime ECL is measured and recognized as
loss allowance. The Company computes ECL
based on a provision matrix. The provision
matrix is prepared based on historically
observed default rates over the expected life of
trade receivables and is adjusted for forward¬
looking estimates.
(i) (f) Derecognition of Financial Assets
A financial asset is derecognized only when:
• The Company has transferred the
rights to receive cash flows from the
financial asset or
• Retains the contractual rights to receive
the cash flows of the financial asset, but
assumes a contractual obligation to pay
the cash flows to one or more recipients or
• The rights to receive cash flows from the
asset has expired
(ii) Financial Liabilities
(ii) (a) Classification of Debt or Equity
Debt or equity instruments issued by the
Company are classified as either financial
liabilities or as equity in accordance with the
substance of the contractual arrangements
and the definitions of a financial liability and an
equity instrument.
(ii) (b) Equity Instruments
An equity instrument is any contract that
evidences a residual interest in the assets of
an entity after deducting all of its liabilities.
Equity instruments issued by the Company are
recognized at the proceeds received, net of
direct issue costs.
(ii) (c) Financial liabilities
All financial liabilities are subsequently measured
at amortized cost using the effective interest
rate method or at fair value through Statement
of Profit and Loss
(ii) (d) Trade and Other Payables
Trade and other payables represent liabilities for
goods or services provided to the Company prior
to the end of the financial year which are unpaid.
(ii) (e) Borrowings
Borrowings are initially recognized at fair value,
net of transaction costs incurred. Borrowings
are subsequently measured at amortized cost.
Any difference between the proceeds (net of
transaction costs) and the redemption amount
is recognized in the Statement of Profit and Loss
over the period of the borrowings using the
effective interest rate method.
Borrowings are removed from the balance sheet
when the obligation specified in the contract is
discharged, cancelled or expired.
The difference between the carrying amount of
a financial liability that has been extinguished
or transferred to another party and the
consideration paid, including any non-cash
assets transferred or liabilities assumed, is
recognized in the Statement of Profit Loss.
(ii) (f) Derecognition of Financial Liabilities
The Company derecognizes financial liabilities
when, and only when, the Company's obligations
are discharged, cancelled or have expired.
(iii) Offsetting Financial Instruments
Financial assets and liabilities are offset and the net
amount is reported in the balance sheet where there
is a legally enforceable right to offset the recognized
amounts and there is an intention to settle on a
net basis or realize 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.
v) Earnings Per Share:
Earnings per share is computed in accordance with Ind AS
33, Earnings Per Share.
Basic earnings per share are computed by dividing the net
profit for the period attributable to the equity shareholders
of the Company by the weighted average number of equity
shares outstanding during the period. The weighted average
number of equity shares outstanding during the period and
for all periods presented is adjusted for events, such as
bonus shares, other than conversion of potential equity
shares, that have changed the number of equity shares
outstanding without a corresponding change in resources.
Diluted earnings per share is computed by adjusting the
net profit attributable to equity shareholders and the
weighted average number of equity shares outstanding
for the effects of all dilutive potential equity shares, if any.
(w) Dividend Distribution:
Dividend distributions are recognised in accordance with
the applicable requirements of Ind AS.
Interim dividends are recognised as a liability in the period
in which they are approved by the Board of Directors. Final
dividends are recognised as a liability in the period in which
they are approved by the shareholders of the Company.
Dividend recommended by the Board of Directors after
the reporting date is disclosed in the notes to the financial
statements and is not recognised as a liability as at the
reporting date.
(x) Recent pronouncements:
The Ministry of Corporate Affairs has notified amendments
to the Companies (Indian Accounting Standards) Rules,
2015 which are applicable for annual reporting periods
beginning on or after 1 April 2025. These amendments
primarily relate to Ind AS 21, The Effects of Changes in
Foreign Exchange Rates, dealing with lack of exchangeability
of foreign currencies; Ind AS 1, Presentation of Financial
Statements, relating to classification of liabilities as current
or non-current and related covenant disclosures; Ind AS
7, Statement of Cash Flows, and Ind AS 107, Financial
Instruments: Disclosures, relating to supplier finance
arrangements; and Ind AS 12, Income Taxes, relating to
international tax reform / Pillar Two model rules.
Based on the evaluation carried out by the Company, the
amendments applicable for the year ended 31 March
2026 do not have any material impact on the recognition,
measurement, presentation or disclosure of amounts
reported in these financial statements.
Further, certain amendments to Ind AS 1 relating to
removal of specific carve-outs for classification of liabilities
are applicable for annual reporting periods beginning on
or after 1 April 2026. The Company has evaluated the
likely impact of these amendments based on its present
facts and circumstances. Considering that the Company
does not have any covenant-linked financial liabilities
outstanding as at 31 March 2026 which would materially
affect classification, presentation or disclosure of liabilities,
the said amendments are not expected to have a material
impact on the financial statements of the Company.
(y) Operating Segment
Operating segments are identified and disclosed in
accordance with Ind AS 108, Operating Segments.
The Company operates in a single reportable business
segment, i.e., manufacture and sale of helmets and
accessories, in accordance with Ind AS 108 - Operating
Segments. The Chief Operating Decision Maker ("CODM"),
being the Managing Director/Board of Directors, reviews
the operations of the Company as one operating segment.
Accordingly, no separate segment information is required
to be presented.
(z) Government grants
Government grants are accounted for in accordance
with Ind AS 20, Accounting for Government Grants and
Disclosure of Government Assistance.
The Company recognizes government grants only when
there is reasonable assurance that the conditions attached
to them shall be complied with and the grants will be
received. Grants related to assets are treated as deferred
income and are recognized as other operating income in
the Statement of profit & loss on a systematic and rational
basis over the useful life of the asset.
Exports entitlements are recognized when the right to
receive credit as per the terms of the schemes is established
in respect of the exports made by the Company and when
there is no significant uncertainty regarding the ultimate
collection of the relevant export proceeds.
(aa) Previous year figures have been regrouped/reclassified
wherever necessary to conform to the current year
presentation.
Receivables is the right to consideration in exchange for goods or services transferred to the customer. Contract liability is the
company's obligation to transfer goods or services to a customer for which the company has received consideration from the
customer in advance.
Note No: 25.5 Payment Terms
For Domestic Transactions - The company offers specific credit period to customers and payment for the sale is made as per the
agreed credit terms, which may include advance payment in certain cases. The credit term ranges between 0 to 180 days from the
date of invoice/goods receipt date.
For Export Transactions - Exports are made generally on advance, Letter of Credit (LC), Document against Payment. For certain
customers, the credit term ranges between 0 to 180 days from the date of invoice/goods receipt date.
Note No: 25.6 Performance Obligations
The performance obligation for sale of product is considered as fulfilled according to the terms agreed with the respective customer.
Note No: 25.7
The performance obligations are part of contracts that have an original expected duration of less than one year. Therefore, the company
has used the practical expedient to not disclose the transaction price allocated to remaining performance obligations.
Note No: 32 Earnings Per Share (EPS)
Basic EPS amounts are calculated by dividing profit for the year attributable to equity holders of the Company by weighted average
number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing profit attributable to equity holders of the Company by weighted average
number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued
on conversion of all the dilutive potential Equity shares into Equity shares, unless the effect of potential dilutive equity share is
antidilutive.
The weighted average number of equity shares outstanding during the year is adjusted for events such as bonus issue that have
changed the number of equity shares outstanding, without a corresponding change in resources.
Nature of Activities taken under CSR :
The CSR activities undertaken by the group during the year primarily relate to promoting healthcare, including preventive healthcare
and providing medical assistance and support for surgeries for underprivileged children and adults; promoting education including
and by supporting school fees and after-school tuitions; supporting menstrual hygiene and village sanitation initiatives; and
environmental sustainability initiatives, including the maintenance of public spaces.
Terms and conditions of transactions with related parties
The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding
balances at the year-end are unsecured and settlement occurs through banking channel. There have been no guarantees provided
or received for any related party receivables or payables. Trade receivables include Rs. 31.97 million due from related parties as
at 31 March 2026 (Rs. 17.53 million as at 31st March, 2025). These balances are unsecured and arise in the ordinary course of
business. The Company applies a collective ECL model to all trade receivables, and impairment, if any, is not separately identified
for related parties. No significant increase in credit risk has been observed for these balances. This assessment is undertaken
each financial year through examining the financial position of the related party and the market in which the related party
operates.
(B) Defined Benefit Plans and Other Long Term Benefits as per Ind AS 19 Employee Benefits:
With effect from 21 November 2025, the Government of India has implemented the four Labour Codes, including the Code on
Social Security, 2020, which subsumes, inter alia, the erstwhile Payment of Gratuity Act, 1972. During the year, the Company
evaluated the impact of the Labour Codes on its employee benefit obligations, including gratuity and other applicable long-term
employee benefits. The actuarial valuation obtained by the Company for the year ended 31 March 2026 has considered the
applicable provisions of the Labour Codes to the extent relevant. Based on such assessment and valuation, the impact on the
financial statements is not material and has been recognised wherever applicable.
(x) Risk exposure
The gratuity scheme is a final salary Defined Benefit Plan that provides for lump sum payment made on exit either by way of
retirement, death, disability, voluntary withdrawal. The benefits are defined on the basis of final salary and the period of service
and paid as lump sum at exit. The plan design means the risk commonly affecting the liabilities and the financial results are
expected to be:-
(a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds, if bond
yield falls, the defined benefit obligation will tend to increase.
(b) Salary inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.
(c) 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 long career employee.
Note No: 39 Lease related disclosures
The Company has lease for manufacturing facility. With the exception of short-term leases, leases of low-value underlying assets and
leases with variable lease payments, the lease is reflected on the balance sheet as a right-of-use asset and a lease liability. Variable
lease payments which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right
of use assets. The Company classifies its right-of-use assets in a consistent manner to its property, plant and equipment.
The lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset to another
party, the right-of-use asset can only be used by the Company. It also contains an option to extend the lease for a further term. The
Company is prohibited from selling or pledging the underlying leased assets as security. The Company must keep those properties
in a good state of repair and return the properties in their original condition at the end of the lease. Further, the Company is
required to pay maintenance fees in accordance with the lease contract.
40.2 Fair value hierarchy
The fair value measurement of the company's financial and non-financial assets and liabilities utilises market observable inputs
and data as far as possible. Inputs used in determining fair value measurements are categorised into different levels based on how
observable the inputs used in the valuation technique utilised are (the 'fair value hierarchy'):
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, either directly (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).
40.3 Methods and assumptions
(a) The Company's investment in equity shares of Bank of Maharashtra is measured at fair value through P&L, based on quoted
market prices as on the reporting date. This investment is classified as Level 1 in the fair value hierarchy.
All other financial assets and liabilities, including trade receivables, cash and cash equivalents, other bank balances, fixed deposits
(including those with maturity over 12 months), security deposits with vendors, borrowings, lease liabilities, trade payables and other
financial liabilities, are measured at amortised cost.
No transfers occurred between fair value hierarchy levels during the year.
Note No: 41 Financial risk management objectives and policies
The Company's activities expose it to market risk, liquidity risk and credit risk. This note explains the source of risk which the entity
is exposed to and how the entity manages the risk and the related impact in the financial statements. The Board of Directors has
overall oversight of the Company's financial risk management. The Board of Directors reviews and agrees policies for managing each
of these risks, which are summarised below.
a) 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 prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price
risk and commodity price risk. Financial instruments affected by market risks include investments, foreign currency receivables
and payables and borrowings.
The sensitivity analysis in the following sections relate to the position as at 31st March, 2026 and 31st March, 2025.
The analysis exclude the impact of movements in market variables on; the carrying values of gratuity and other post-retirement
obligations; provisions; and the non-financial assets and liabilities.
The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is
based on the financial assets and financial liabilities held as of 31st March, 2026 and 31st March, 2025.
i) Interest Rate Risk
Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. company's financial liabilities comprises mainly of interest-bearing deposits with dealers, however,
these are not exposed to risk of fluctuation in market interest rate as the rates are fixed at the time of contract/agreement
and do not change for any market fluctuation.
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).
(iii) Commodity price risk
The company is affected by the price volatility of certain commodities. Its operating activities require the ongoing
manufacture of helmets, boxes, visors, spare and other accessories and therefore require a continuous supply of raw
materials i.e. Acrylonitrile Butadiene Styrene (ABS) & Polycarbonate (PC) being the major input used in the manufacturing.
Due to the significantly increased volatility of the price of the ABS & PC, the company has entered into various purchase
contracts for these material for which there is an active market. The company's management has developed and enacted
a risk management strategy regarding commodity price risk and its mitigation. The company partly mitigated the risk of
price volatility by entering into the contract for the purchase of these material and further the company increases prices
of its products as and when appropriate to minimize the impact of increase in raw material prices.
b) Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) including
deposits with banks and financial institutions.
Customer credit risk is being driven by company's established policy, procedures and control relating to customer credit risk
management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits
are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.
Expected credit losses for financial assets other than trade receivables
The Company maintains its cash and cash equivalents and bank deposits with reputed banks. The credit risk on these instruments
is limited because the counterparties are bank with high credit ratings assigned by domestic credit rating agencies. Hence, the
credit risk associated with cash and cash equivalent and bank deposits is relatively low.
Other current financial assets include Export benefits receivable from the government. Hence, the credit risk associated with
receivable from government on account of export benefits is relatively low.
Expected credit losses for trade receivables
a. Basis of Recognition
The Company applies the simplified approach under Ind AS 109 - Financial Instruments to measure expected credit losses
(ECL) on trade receivables. Under this approach, the Company recognizes lifetime ECL on all trade receivables, regardless
of credit risk at the reporting date.
b. Methodology
The Company has adopted the flow rate (roll rate) method to estimate the probability of default (PD). This method tracks the
historical transition of trade receivables through ageing buckets. Based on data from the past three financial years, the Company
calculates the cumulative probability of default across these buckets. This approach reflects actual collection trends and default
behaviour observed in the Company's receivables portfolio.
Key parameters used in the ECL model include:
i) Probability of Default (PD): Derived from historical flow rates between ageing buckets.
ii) Loss Given Default (LGD): Based on estimated recoverability of overdue balances.
iii) Exposure at Default (EAD): Gross carrying amount of the receivables.
c. Forward-looking Information
Forward-looking macroeconomic factors have been assessed and incorporated where deemed material. For the current
period, forward-looking adjustments were evaluated and determined to have an immaterial impact on the ECL estimate.
Accordingly, the base PD incorporates management's current view of expected credit risk.
d. Assumptions and Judgments
i) A three-year historical period is considered adequate to capture representative credit behaviour.
ii) The model assumes consistent collection and risk trends unless observed otherwise.
iii) The ECL provision is reviewed and updated regularly to reflect changes in credit risk and forward-looking information.
c) Liquidity Risk
The company's objective is to maintain a balance between continuity of funding and flexibility through the use of long term bank
loans and short term borrowings etc. The company has access to a sufficient variety of sources of funding and debt maturing
within 12 months can be rolled over with existing lenders.
Note No: 42 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 manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by
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In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in
the financial covenants of any interest-bearing loans and borrowing.
Note No: 47 Undisclosed Income
There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (Such
as search or survey), that has not been recorded in books of accounts.
Note No: 48 Crypto Currency
The Company has not traded or invested in Crypto currency or virtual currency during the year.
Note No: 49 Registration or Satisfaction of Charges
The Company does not have any charges or satisfaction of charges, which is yet to be registered with registrar of companies beyond
the statutory period.
Note No: 50 Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an impact on current or previous financial year.
Note No: 51 Utilisation of borrowed funds and share premium
The Company has 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.
The Company has not received any fund from any other person(s) or entity(ies), including foreign entities(intermediaries) 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
Company (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
Note No: 52 Compliance with number of layers of companies:
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
Note No: 53 Revaluation of Property, Plant and Equipment & Intangible Assets
The company has not revalued its Property, Plant and Equipment & Intangible Assets during the year.
Note No: 54 Significant accounting judgments, estimates and assumptions
The preparation of the Company's Standalone financial information requires management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and
the disclosure of contingent liabilities. These include recognition and measurement of financial instruments, estimates of useful lives
and residual value of Property, Plant and Equipment and intangible assets, valuation of inventories, measurement of recoverable
amounts of cash-generating units, measurement of employee benefits, actuarial assumptions, provisions etc.
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. The Company continually evaluates these estimates and assumptions
based on the most recently available information. Revisions to accounting estimates are recognized prospectively in the Statement
of Profit and Loss in the period in which the estimates are revised and in any future periods affected.
A. Judgments
In the process of applying the Company's accounting policies, management has made the following judgments, which have the
most significant effect on the amounts recognized in the financial statements:
Lease
Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option
to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the
expected lease term on lease-by-lease basis. In evaluating the lease term, the Company considers factors such as any significant
leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of
the underlying asset to the Company's operations taking into account the location of the underlying asset and the availability of
suitable alternatives. The lease term in future periods reassessed to ensure that the lease term reflects the current economic
circumstances.
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 Standalone financial
information were prepared. Existing circumstances and assumptions about future developments, however, may change due to
market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions
when they occur.
(i) Contingent liabilities
The 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. The Company
evaluates the obligation through Probable, Possible or Remote model ('PPR'). In making the evaluation for PPR, the Company
take into consideration the Industry perspective, legal and technical view, availability of documentation/agreements,
interpretation of the matter, independent opinion from professionals (specific matters) etc. which can vary based on
subsequent events. The Company provides the liability in the books for probable cases, while possible cases are shown
as contingent liability. The remote cases are disclosed in the Standalone financial information.
(ii) Impairment of financial assets
The impairment provisions for trade receivables are based on assumptions about risk of default and expected loss rates.
The company uses judgment in making these assumptions and selecting the inputs to the impairment calculation based
on the company's past history and other factors at the end of each reporting period.
(iii) Impairment of Assets
An impairment exists when the carrying value of an asset exceeds its recoverable amount. Recoverable amount
is the higher of its fair value less costs to sell and its value in use. The value in use calculation is based on a discounted
cash flow model. In calculating the value in use, certain assumptions are required to be made in respect of highly
uncertain matters, including management's expectations of growth in EBITDA, long term growth rates; and the selection
of discount rates to reflect the risks involved.
(iv) Gratuity benefits
The cost of the defined benefit gratuity plan and the present value of the gratuity 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 and mortality rates. Due to the
complexity of 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.
In determining the appropriate discount rate, management considers the interest rates of government bonds, and
extrapolated maturity corresponding to the expected duration of the defined benefit obligation. The mortality rate is
based on publicly available mortality tables for the specific countries. Future salary increases and pension increases are
based on expected future inflation rates for the respective countries.
(v) Taxes
Provision for tax liabilities require judgments on the interpretation of tax legislation, developments in case law and
the potential outcomes of tax audits and appeals which may be subject to significant uncertainty. Therefore the actual
results may vary from expectations resulting in adjustments to provisions, the valuation of deferred tax liabilities, cash tax
settlements and therefore the tax charge in the statement of profit or loss.
Note No: 56 - Acquisition of Bikerz US Inc
The Company had entered into a stock purchase agreement dated July 22, 2024 with Bikerz Inc. for the acquisition of
100% shares of Bikerz US Inc. In terms of the stock purchase agreement, the business was acquired by the Company with
effect from August 9, 2024, being the date of acquisition. The fair value of assets and liabilities acquired was determined
by the Company and accounted for in accordance with Ind AS 103 - Business Combinations. Consequently, Bikerz US
Inc became a wholly owned subsidiary of the Company during the previous year for a consideration of Rs. 25.61 million.
During the year ended March 31, 2026, the Company made further investment in Bikerz US Inc. Accordingly, the carrying value of
the Company's investment in Bikerz US Inc, being a wholly owned subsidiary, increased to Rs. 43.06 million as at March 31,2026 as
against Rs. 25.61 million as at March 31,2025.
The reason for pursuing the overseas business acquisition was to achieve synergy and facilitate expansion, enabling cost savings,
access to new capabilities, geographic diversification, and a stronger competitive position in global markets.
Details of purchase consideration
Details of the purchase consideration, net assets and goodwill recognised on acquisition during the previous year are as follows:
Note No: 57: Events occurring after the reporting period
There are no material adjusting or non-adjusting events after the reporting period which require disclosure or adjustment in the
financial statements.
Note No: 58 - New and amended standards adopted by the company
The Ministry of Corporate Affairs has notified certain amendments to the Companies (Indian Accounting Standards) Rules, 2015,
which are applicable for annual reporting periods beginning on or after 1 April 2025. These amendments primarily relate to Ind AS
21 - The Effects of Changes in Foreign Exchange Rates, dealing with lack of exchangeability of foreign currencies, and amendments
to Ind AS 7 - Statement of Cash Flows, Ind AS 107 - Financial Instruments: Disclosures and Ind AS 12 - Income Taxes, relating to
disclosure of supplier finance arrangements and international tax reform matters.
The Company has evaluated the applicability of the said amendments to its financial statements. Based on such evaluation, the
adoption of these amendments has not had any material impact on the recognition, measurement, presentation or disclosure of
amounts reported in these financial statements.
Note No: 59 - IND AS issued but not yet effective
The Ministry of Corporate Affairs has notified certain amendments to Ind AS 1 - Presentation of Financial Statements relating to
classification of liabilities as current or non-current, including the assessment of an entity's right to defer settlement of liabilities.
Certain provisions of the said amendments are applicable for annual reporting periods beginning on or after 1 April 2026.
The Company has evaluated the applicability of the above amendments based on its present facts and circumstances. Since the
Company does not have any borrowings or covenant-linked financial liabilities as at 31 March 2026, the said amendments are not
expected to have any material impact on the classification, presentation or disclosure of liabilities in the financial statements of
the Company.
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