K. Provisions, Contingent Liabilities and Contingent Assets
A provisions are recognized when the Company has a present
obligation as a result of past events and it is probable that an
outflow of resources will be required to settle the obligation in
respect of which a reliable estimate can be made. If the effect of
the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when appropriate These
are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.
A 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 or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability is not
recognized but its existence is disclosed in the financial statements.
L. Taxation
The tax expenses for the period comprises of current tax and
deferred income tax. Tax is recognized in Statement of Profit and
Loss, except to the extent that it relates to items recognized in the
Other Comprehensive Income. In which case, the tax is also
recognized in Other Comprehensive Income.
Current tax assets and liabilities are measured at the amount
expected to be recovered from or paid to the Income Tax
authorities, based on tax rates and laws that are enacted at the
Balance sheet date.
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 profit. Deferred tax assets are recognized
to the extent it is probable that taxable profit will be available
against which the deductible temporary differences, and the carry
forward of unused tax losses can be utilized. 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 carrying amount of Deferred tax liabilities and assets
are reviewed at the end of each reporting period. The Company
offsets deferred tax assets and deferred tax liabilities if it has a
legally enforceable right and these relate to taxes on income
levied by the same governing taxation laws.
M. Borrowing Costs
Borrowing costs are recognized as an expense in the period in
which they are incurred except the borrowing cost attributable to
acquisition / construction of qualifying assets are capitalized as a
part of the cost of such assets up to the date when such asset is
installed and put to use. A qualifying asset is one that necessarily
takes substantial period of time to get ready for its intended use.
N. Segment Reporting
The Company deals in Pre-Engineered Buildings, Structure Steels,
Steel Roofing and Components thereof and hence requirement of
Indian Accounting Standard 108 "Operating Segments" issued by
ICAI are not applicable.
O. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit
or loss for the period attributable to equity shareholders (after
deducting attributable taxes, if any) by the weighted average
number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period
are adjusted for the effects of all dilutive potential equity shares.
P. Operating Cycle
All assets and liabilities have been classified as current or non¬
current as per the company’s normal operating cycle and other
criteria set out in Schedule III to the Companies Act, 2013. Based
on the nature of product and the time between acquisition of
assets for processing and their realization in cash and cash
equivalents, the company has ascertained its operating cycle as
12 months for the purpose of current/non-current classification of
assets and liabilities.
2.3: There are no projects under CWIP / Intangible Assets which are overdue or which have exceeded its planned cost.
2.4: The Company does not have any investment property as on the Balance Sheet date.
2.5: Depreciation Expenditure includes 99.38 Lacs for FY 2025-26 and 83.30 Lacs for FY 2024-25 of Amortization of
ROU Assets.
The Company has adopted the M&B Engineering Limited Employee Stock Option Plan 2024’ ("ESOP 2024" / "Plan") Pursuant to the
resolutions passed by the Board on June 06, 2024 and the Shareholders on June 06, 2024, the Company has approved the M&B Employee
Stock Option Plan 2024 (ESOP Scheme 2024). The ESOP Scheme 2024 has been amended vide Board resolution dated July 14, 2025 and
our Shareholders’ special resolution dated July 15, 2025 in terms of rationalization of few provisions namely alignment of Employee
definition, vesting schedule, individual grant ceiling, as per applicable SEBI Regulations, extension of exercise period, and other
consequential changes.
The Compensation Committee namely Nomination and Remuneration Committee has determined the exercise price and pricing formula,
following the guidelines laid down by Ind AS 102 - Share Based Payment. The fair value of options has been determined by the Nomination
and Remuneration Committee using Black-Scholes valuation method from time to time in accordance with ESOP scheme 2024.
Pursuant to M&B Engineering Limited Employee Stock Option Plan 2024 ("ESOP 2024" / "Plan"), the Company is authorized to Grant up to
7,50,000 options at its discretion. On July 15, 2025, the Company granted 2,52,800 options to eligible employees which were further
bifurcated into Loyalty Options and Performance Options that will vest over a four-year period.
The expense recognized for employee services received during the year is '170.99 Lacs (March 31, 2025: INR Nil)
There were no cancellations or modifications to the awards in year ending March 31, 2026 or March 31, 2025.
During the year ended March 31, 2026, the Company has completed its Initial Public Offer ("IPO") of 1,68,88,474 equity shares (including
57,306 equity shares issued to employees) of face value of '10 each at an issue price of share '385 per share ('349 per share for equity
shares issued to employees) comprising fresh issue of 71,48,215 equity shares and offer for sale of 97,40,259 equity shares by selling
shareholders, resulting in equity shares of the Company being listed on National Stock Exchange of India Limited ('NSE') and BSE Limited
('BSE') on August 6, 2025.
Consequent to allotment of fresh issue, the paid up equity share capital of the company stands increase from '5,000 Lacs consisting of
5,00,00,000 equity shares of; '10 each to '5,714.82 Lacs consisting of 5,71,48,215 equity shares of '10 each.
I. The Company does not have any investment property.
II. As per the Company's accounting policy, Property, Plant and Equipment and intangible assets are carried at historical cost (less
accumulated depreciation & impairment, if any), hence the revaluation related disclosures required as per Additional
Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.
III. No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
IV. The Company has adhered to debt repayment and interest service obligations on time. Wilful defaulter related disclosures
required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.
V. Details of transactions with struck off companies: (?)
VI. All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies have been
filed. No registration or satisfaction is pending at the year ended 31st March 2026.
VII. The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013
read with Companies (Restriction on number of Layers) Rules, 2017.
VIII. 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 beneficiary.
IX. The Company have 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 on behalf of the Ultimate Beneficiaries
X. The Company has not operated in any crypto currency or virtual currency transactions.
XI. During the year the Company has not disclosed or surrendered, any income other than the income recognised in the books of
accounts in the tax assessments under Income Tax Act, 1961
?
i Investments in Associate and Subsidiaries
Investments in Associate and Subsidiaries have been accounted at historical cost. Since these are scoped out of Ind AS 109 for the purposes of
measurement, the same have not been disclosed under fair value classification.
ii Financial Instrument measured at Amortised Cost
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are reasonable approximation
of their fair values since the company does not anticipate that the carrying amounts would be significantly different from the values that would
eventually be received or settled.
iii Levels 1, 2 and 3 : Valuation Techniques and Key Inputs
Level 1 : It includes Investment that has a quoted price and which are actively traded on the stock exchanges. It is being valued using the closing price as
at the reporting period on the stock exchanges.
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 all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
iv There have been no transfers between Level 1, 2 and 3 during the years.
42.1: Financial Risk Management
The Company's financial liabilities comprise mainly of borrowings, trade and other payables and financial assets comprise mainly of investments,
cash and cash equivalents, other balances with banks, loans, trade and other receivables.
"The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of the Company monitors the risk as per risk management policy.
Further they also have oversight in the area of financial risks and controls.
The following disclosures summarize the Company's exposure to financial risks. Quantitative sensitivity analysis have been provided to reflect the
impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company."
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 risk
comprises three types of risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk includes borrowings,
investments, trade payables, trade receivables and loans.
Within the various methodologies to analyse and manage risk, Company has implemented a system based on “sensitivity analysis” on symmetric
basis. This tool enables the risk managers to identify the risk position of the entities. Sensitivity analysis provides an approximate quantification of the
exposure in the event that certain specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:
- a parallel shift of 100-basis points of the interest rate yield curves in major currencies.
- a simultaneous, parallel foreign exchange rates shift in which the INR appreciates / depreciates against all currencies by 5%
- 10% increase / decrease in prices of all investments traded in an active market, which are classified as financial asset measured at FVTPL.
The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market conditions and reflects estimated
changes resulting from the sensitivity analysis. Actual results that are included in the Statement of profit and loss may differ materially from these
estimates due to actual developments in the global financial markets.
The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations and
provisions.
The following assumption has been made in calculating the sensitivity analysis:
The sensitivity of the relevant statement of 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 March 31, 2026 and March 31, 2025.
Interest Rate Sensitivity
Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates. The following table demonstrates the
sensitivity of floating rate financial instruments to a reasonably possible change in interest rates. The risk estimates provided assume a parallel shift of 100
basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated
based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the
period.
B Credit Risk
Credit risk is the risk that a 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 primarily trade receivables, loans and other financial assets including deposits with banks. Credit risk arising from
trade receivables is managed in accordance with the Company's established policy, procedures and control relating to customer credit risk
management.
Trade Receivables
Customer credit risk is managed by each business unit subject to the Company's established policy and procedures. Trade receivables are non-interest
bearing. Historical experience of collecting receivables of the Company is supported by low level of past default and hence the credit risk is perceived to
be low.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company's finance department in accordance with the Company's
policy. Investments of surplus funds are made only with approved counterparties. Credit risk arising from these financial assets is perceived to be very
low.
Other financial assets
This comprises mainly of deposits, Loans to employees and other intercompany receivables. Credit risk arising from these financial assets is limited.
C Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are
settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. The
Company's objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors
its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing from both banks and financial
institutions at an optimised cost.
The table below analysis non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the
reporting date to the contractual maturity date. The amounts disclosed under the ageing buckets are the contractual undiscounted cash flows and
includes contractual interest payments.
1. Significant growth in current assets, particularly trade receivables and cash balances, while current liabilities remained relatively stable
during the year.
2. On account of repayment / reduction of borrowings and lease liabilities coupled with increase in shareholders' equity due to retained
profits during the year.
3. Due to significant increase in net working capital arising from higher current assets compared to the growth in revenue from operations.
The Ministry of Labour & Employment (MoLE), Government of India. has announced the implementation of four Labour Codes viz. the
Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and
Working Conditions Code, 2020, effective November 21, 2025. On the basis of information available, the Company has assessed and
accrued the incremental impact for these changes at current estimate of 99.14 Lacs and disclosed as an 'Exceptional Item- Statutory
impact of new Labour Codes' in the audited financial results of the Company for the quarter and year ended March 31, 2026. The
Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the
Labour Code and would provide appropriate accounting effect on the basis of such developments as needed.
As per IND AS 19 "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting standard are given below:
(a) Defined Contribution Plans
Contribution to Defined Contribution plan, recognized as expense for the year is as under:
During the year, the company has recognized the following amounts in the Profit & Loss Account:
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting
period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation as it is unlikely that the change
in assumptions would occur in isolation of one another, as some of the assumptions may be correlated
Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been calculated using the projected
unit credit method at the end of the reporting period, which is the same method as applied in calculating the Defined Benefit Obligation as recognized in
the balance sheet
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years
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