2.15 Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that the Company will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
The amount recognised 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. When a provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows (when the effect of the
time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be
received and the amount of the receivable can be measured reliably.
Product warranty expenses
The estimated liability for product warranties is recorded when products are sold. These estimates are
established using historical information on the nature, frequency and average cost of warranty claims and
management estimates regarding probable future incidences based on actions on product failures. The
timing of outflows will vary as and when warranty claim will arise.
2.16 Contingent liabilities
Contingent liabilities are disclosed in notes when there is a possible obligation that arises from past
events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the entity.
2.17 Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of
the reporting period.
2.18 Financial instruments
2.18.1 Investment in subsidiaries, associates and joint ventures
The Company has accounted for its investments in subsidiaries, associates and joint ventures at cost
less impairment.
2.18.2 Other financial assets and financial liabilities
Other financial assets and financial liabilities are recognised when Company becomes a party to the
contractual provisions of the instruments.
Initial recognition and measurement:
Other financial assets and financial liabilities are initially measured at fair value. Transaction costs that
are directly attributable to the acquisition or issue of financial assets and financial liabilities (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 recognised immediately in standalone statement of profit and loss.
Subsequent measurement:
Financial assets at amortised cost Financial assets are subsequently measured at amortised cost if
these financial assets are held within a business whose objective is to hold these assets in order to
collect contractual cash flows and contractual terms of financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at fair value through other comprehensive income
Financial assets are measured at fair value through other comprehensive income if these financial assets
are held within business whose objective is achieved by both collecting contractual cash flows on specified
dates that are solely payments of principal and interest on the principal amount outstanding and selling
financial assets.
Financial assets at fair value through profit or loss
Financial assets are measured at fair value through profit or loss unless it measured at amortised cost or fair
value through other comprehensive income on initial recognition. The transaction cost directly attributable to
the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised
in the standalone statement of profit and loss.
Financial liabilities
Financial liabilities are measured at amortised cost using effective interest rate method. For trade and
other payables maturing within one year from the standalone balance sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.
2.18.3 Equity instruments
An equity instrument is a contract that evidences residual interest in the assets of the company after
deducting all of its liabilities. Equity instruments recognised by the Company are recognised at the
proceeds received net off direct issue cost.
2.18.4 Derivative financial instruments and hedge accounting
The Company uses various derivative financial instruments such as interest rate swaps, currency swaps
and forward contracts to mitigate the risk of changes in interest rates and foreign exchange rates. Such
derivative financial instruments are initially recognised at fair value on the date on which a derivative
contract is entered into and are also subsequently measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to the Standalone
Statement of Profit and Loss, except for the effective portion of cash flow hedges which is recognised in
Other Comprehensive Income and later to the Standalone Statement of Profit and Loss when the hedged
item affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently
results in the recognition of a non-financial assets or non-financial liability
Hedges that meet the criteria for hedge accounting are accounted for as follows:
a) Cash flow hedge
The Company designates derivative contracts or non derivative financial assets / liabilities as hedging
instruments to mitigate the risk of movement in interest rates and foreign exchange rates for foreign
exchange exposure on highly probable future cash flows attributable to a recognised asset or liability or
forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the
effective portion of changes in the fair value of the derivative is recognized in the cash flow hedging reserve
being part of other comprehensive income. Any ineffective portion of changes in the fair value of the
derivative is recognized immediately in the Standalone Statement of Profit and Loss. If the hedging
relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued
prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or
loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was
effective remains in cash flow hedging reserve until the underlying transaction occurs. The cumulative
gain or loss previously recognized in the cash flow hedging reserve is transferred to the Standalone
Statement of Profit and Loss upon the occurrence of the underlying transaction. If the forecasted transaction
is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified
in the Standalone Statement of Profit and Loss.
b) Fair value hedge
The Company designates derivative contracts or non derivative financial assets / liabilities as hedging
instruments to mitigate the risk of change in fair value of hedged item due to movement in interest rates,
foreign exchange rates and commodity prices.
Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value
hedges are recorded in the Standalone Statement of Profit and Loss. If the hedging relationship no longer
meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the
effective interest method is used is amortised to Statement of Profit and Loss over the period of maturity.
2.19 Exceptional items
An item of income or expense which by its size, type or incidence requires disclosure in order to improve
an understanding of the performance of the company is treated as an exceptional item and the same is
disclosed in the notes to accounts.
2.20 Tax Input credit
Tax input credit is accounted for in the books in the period in which the underlying service received is
accounted and when there is no uncertainty in availing / utilising the credits.
2.21 Operating Cycle
As mentioned in para 1 above under 'Corporate information', the Company is into development and
manufacture of Electronic products. Based on the normal time between acquisition of assets and their
realisation in cash or cash equivalents, the Company has determined its operating cycle as less than 1
year for manufacturing of products . The above basis is used for classifying the assets and liabilities into
current and non-current as the case may be.
2.22 Key Accounting estimates and judgements
In the application of the Company's accounting policies, the directors of the Company are required to
make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that
are not readily apparent from other sources. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results may differ from
these estimates.
The 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 if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and future
periods.
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty
at the end of the reporting period that may have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year.
2.22.1 Impairment of non-financial assets
Determining whether the asset is impaired requires to assess the recoverable amount of the asset or
Cash Generating Unit (CGU) which is compared to the carrying amount of the asset or CGU, as applicable.
Recoverable amount is the higher of fair value less costs of disposal and value in use. Where the carrying
amount of an asset or CGU exceeds the recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.
The value in use calculation requires the directors to estimate the future cash flows expected to arise from
the cash-generating unit and a suitable discount rate in order to calculate present value. Where the actual
future cash flows are less than expected, a material impairment loss may arise.
2.22.2 Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected
cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to
the impairment calculation, based on Company's past history, existing market conditions as well as
forward looking estimates at the end of each reporting period.
2.22.3 Useful lives of property, plant and equipment
The Company reviews the useful life of property, plant and equipment at the end of each reporting period.
This assessment may result in change in the depreciation expense in future periods.
2.22.4 Employee Benefits
The cost of defined benefit plans are determined using actuarial valuations. The actuarial valuation involves
making assumptions about discount rates, expected rates of return on assets, future salary increases,
mortality rates and future pension increases. Due to the long-term nature of these plans, such estimates
are subject to significant uncertainty.
2.22.5 Litigations
As explained in note 36, the Company is a party to certain commercial disputes and has also received
notification of claims for significant amounts. There are number of factors that may affect the ultimate
outcome in respect of this matter and accordingly, it is difficult to assess the impact of these disputes with
accuracy.
2.23 Discontinued operations and non-current assets held for sale:
Discontinued operation is a component of the Company that has been disposed of or classified as held for
sale and represents a major line of business., Non-current assets and disposal groups are classified as
held for sale if their carrying amount is intended to be recovered principally through a sale (rather than
through continuing use) when the asset (or disposal group) is available for immediate sale in its present
condition subject only to terms that are usual
and customary for sale of such asset (or disposal group)
and the sale is highly probable and is expected to qualify for recognition as a completed sale within one
year from the date of classification. Non-current assets and disposal groups classified as held for sale are
measured at lower of their carrying amount and fair value less costs to sell.
2.24 Lease
The Company recognises right of use assets under lease arrangements in which it is the lessee. Rights to
use assets owned by third parties under lease agreements are capitalised at the inception of the lease and
recognised on the balance sheet. The corresponding liability to the lessor is recognised as a lease obliga¬
tion. The carrying amount is subsequently increased to reflect interest on the lease liability and reduced by
lease payments made. For calculating the discounted lease liability, the lessee's incremental borrowing
rate is used. The incremental borrowing rate is calculated at the rate of interest at which the Company
would have been able to borrow for a similar term and with a similar security the funds necessary to obtain
a similar asset in a similar market. Finance costs are charged to the income statement so as to produce
a constant periodic rate of charge on the remaining balance of the obligations for each accounting period.
Variable rents are not part of the lease liability and the right of use asset. These payments are charged to
the income statement as incurred. If modifications or reassessments occur, the lease liability and right of
use asset are re-measured. Right of use assets are depreciated over the shorter of the useful life of the
asset or the lease term.
2.25 Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs
(INR 00,000), except when otherwise indicated.
2.26 Events after Reporting date :
Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise,
events after the Balance Sheet date of material size or nature are only disclosed.
2.27 Earning Per Share :
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
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.
2.28 Fair value Measurement
All assets and liabilities for which fair value is measured and disclosed in the standalone financial state¬
ments are categorised within the fair value hierarchy, described as follows, based on the lowest level inputs
that is significant to the fair value measurement as a whole:
a) Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
b) 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)
c) Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable
inputs)
For assets and liabilities that are recognised in the standalone financial statements on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy by reassessing
categorisation 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.
* The Company has Received an order from the Sole Arbitrator and the Order dated 3rd Nov 2023 State that the
Company to require to Make Payment of Rs.34.15 lakhs Towards Claim and Rs.3.65 lakhs Towards Legal Cost
to Keltron along with Interest @12.75% Per Annum Computed on Monthly Compounding Basis from the Date of
The Order Till The Date of Payment.
** The Company has received an Order From Cestat Towards of Excise duty for the Period January 2008 to
Mar2010.As per the CESTAT Order Rs..58.82 lakhs is Payable Towards Excise duty on Manufacturing against the
same input credit of Rs.466.90 lakhs paid on imported modems has been admitted by CESTAT the Difference of
Rs.121.35 lakhs has to be Paid by the Company and against which is Rs.116.80 lakhs has been paid by MRO-
TEK Under PLA in Earlier Years and Company is Preferring an Appeal against this Order.
*** The Company received an Order-in-Original (OIO) from the GST Department dated 16th December 2022,
pertaining to the GST (CGST & SGST) liability for the period from July 2017 to March 2019. As per the order, a total
demand of ?269.97 lakhs was raised, along with applicable interest and penalty.
Subsequently, the Company filed an appeal before the First Appellate Authority (Commissioner, Appeals-II, Ban¬
galore) via Form APL-01 dated 24th March 2023. Upon review, the Commissioner (Appeals-II) dropped an
amount of Rs 7.01 lakhs with interest and passed the Order-in-Appeal (OIA), confirming the remaining demand
of Rs 262.96 lakhs, along with interest and penalty under Sections 50 and 74 of the CGST/KGST Act, 2017.
The Company is aggrieved by the Order-in-Appeal and intends to prefer an appeal before the GST Appellate
Tribunal (GSTAT). However, as of now, the GSTAT is not functional.,
Note 40
Financial Risk Management Objective And Policies
The Company's principal financial liabilities comprise Borrowings and Trade payables. The main purpose of
these financial liabilities is to finance the Company's operations. The Company's principal financial assets
include Investments, Trade Receivables, Loans, Cash and Cash Equivalents that derive directly from its
operations.
The Company is exposed to the following risks from its use of financial instruments:
- Credit risk
- Liquidity risk
- Interest rate risk
The Company's board of directors has overall responsibility for the establishment and oversight of the
Company's risk management framework. This note presents information about the risks associated with its
financial instruments, the Company's objectives, policies and processes for measuring and managing risk,
and the Company's management of capital.
The Company's risk management policies are established to identify and analyse the risk faced by the
Company, to set appropriate risk limits and controls and to monitor risk and adherence to limits. Risk manage¬
ment policies and systems are reviewed regularly to reflect changes in market conditions and 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 employee understand their roles and obliga¬
tions.
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 Company's receivables from customers
and loans.
The Company is exposed to credit risk as a result of the risk of counterparties defaulting on their obligations.
The Company's exposure to credit risk primarily relates to investments, trade receivable and cash and cash
equivalents. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The
objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assess
the credit quality of the counterparties taking into account their financial condition, past experience and other
factors.
The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings as¬
signed by credit rating agencies.
The Company's Trade and other receivables are actively monitored to review credit worthiness of the custom¬
ers to whom credit terms are granted and also avoid significant concentrations of credit risks.
Given below is ageing of accounts receivables spread by period of 6 months:
The company continuously monitors defaults of customers and other counterparties , identified either indi¬
vidually or by the group and incorporates this information into its credit risk controls.
Trade receivables consists of large number of customers spread across diverse industries and geographical
areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable and where
appropriate, credit guarantee insurance cover is purchased.
There is no receivable from single external customer outstanding more than 10% of Company's total revenue
for the year ended 31st March 2025 & for previous year ended 31 March, 2024.
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 ap¬
proach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to
meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Company's reputation.
The Company has an appropriate liquidity Risk management framework for the management of short,
medium and long term funding and liquidity management requirements. The Company manages liquidity
risk by maintaining adequate cash reserves, banking facilities, and reserve borrowing facilities by continu¬
ously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and
liabilities.
The Company's treasury department is responsible for managing the short term and long term liquidity
requirements of the Company, short term liquidity situation is reviewed daily by treasury. Long Term liquidity
position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken
according to the situation.
Typically the Company ensures that it has sufficient cash on demand to meet expected operational ex¬
penses for a period of 60 days, including the servicing of financial obligations, this excludes the potential
impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.
c. Market Risk
Market risk is the risk that changes in the market prices, such as foreign exchange rates, interest rates and
equity prices will affect the company's income or the value of its holdings of the financial instruments. The
objective of market risk management is to manage and control market risk exposures with acceptable param¬
eters, while optimising the return.
The Company is exposed to interest rate risk arises mainly from debt. The Company is exposed to interest rate
risk because the fair value of fixed rate borrowings and the cash flows associated with floating rate borrowings
will fluctuate with changes in interest rates.
The Company is also exposed to foreign currency risk on certain transactions that are denominated in a
currency other than the respective entity's functional currency hence exposures to exchange rate fluctuations
arise The risk is that functional currency value of cash flows will vary as a result of movements in exchange
rates.
ii) Foreign currency sensitivity analysis
The Company is mainly exposed to currency fluctuation of USD and EUR.
The following table details company's sensitivity to a 10% increase and decrease in the INR against the
relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated
monetary items and adjusts their transition at the period end for 10% change in foreign currency rates. A
positive numbers below indicates an increase in profit or equity where the INR strengthens 10% against the
relevant currency. For a 10% weakening of the INR against the relevant currency, there would be a comparable
impact on the profit or equity, and the balance below would be negative
D. Capital Management
The Company manages its capital to ensure that Company will be able to continue as going concern while
maximising the return to stakeholders through the optimisation of the debt and equity balance.
The Capital structure of the Company consists of net debt borrowings (Note 18 & Note 21) offset by cash and
bank balances and total equity of the Company.
The Company is not exposed to any externally imposed capital requirements
ii) The Company has no transaction with companies struck off under section 248 of the Companies Act,
2013 or section 560 of the Companies Act, 1956
iii) The Company does not have any Benami property, where any proceeding has been initiated or pending
against for any Benami property.
iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.
v) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
vii) The Company has not advanced or loaned or invested fund to any person(s) or entity(ies), including
foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that
the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
viii) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of
the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as
amended).
ix) The Company does not have any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961
x) The Company has not been declared wilful defaulter by any bank or financial institution or government or
any government authority.
Note 47
Code on Social Security, 2020
The Code on Social Security, 2020 which received the President's assent on September, 2020 subsumes
nine law relating to Social Security, retirement and employee benefits, including the Provident Fund and
Gratuity.
The effective date of the Code and rules thereunder are yet to be notified. The impact of the changes, if any,
will be assessed and recognised post notification of the relevant provisions
Note 48
Amount has been rounded off to nearest Lakhs & decimal thereof.
Note 49
Previous year’s figures have been regrouped / reclassified / restated wherever necessary to correspond
with the current year's classification/disclosure.
As per °ur attached rep°rt of even date For and on behalf of the Board of Directors
F0r K.S.Aiyar & Co of Umiya Buildcon Limited
.. (Formerly known as MRO-TEK Realty Limited)
Chartered Accountants
ICAI Firm’s registration number:100186W
Aniruddha Bhanuprasad Mehta Gauri A Mehta
Chairman & Managing Director Director
Deepak Kamath
DIN No. 00720504 DIN No. 00720443
Partner
Membership Number : 218292
Place : Bengaluru V Vannirajan Prashanth S
Date: 29-04-2025 Chief Financial Officer Company Secretary and
Compliance Officer
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