m Provisions and contingencies
a) Provision is recognized (for liabilities that can be measured by using a substantial degree
of estimation) when:
b) The company has a present obligation as a result of a past event;
c) A probable outflow of resources embodying economic benefits is expected to settle the
obligation; and
d) The amount of the obligation can be reliably estimated
e) Contingent liability is disclosed in case there is:
f) Possible obligation that arises from past events and 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 enterprise;
g) A present obligation arising from past events but is not recognized when it is not
probable that an outflow of resources embodying economic benefits will be required to
settle the obligation; or
h) A reliable estimate of the amount of the obligation cannot be made.
n Financial Instruments
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
Financial assets
Initial recognition and measurement :
All financial assets are recognised initially at fair value, plus in the case of financial assets not
recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the
acquisition of the financial asset. However, trade receivables that do not contain a significant
financing component are measured at transaction price
Where the fair value of a financial asset at initial recognition is different from its transaction
price, the difference between the fair value and the transaction price is recognised as a gain or
loss in the Statement of Profit and Loss at initial recognition if the fair value is determined
through a quoted market price in an active market for an identical asset (i.e. level 1 input) or
through a valuation technique that uses data from observable markets (i.e. level 2 input).
In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the
difference between the fair value and transaction price is deferred appropriately and recognised
as a gain or loss in the Statement of Profit and Loss only to the extent that such gain or loss arises
due to a change in factor that market participants take into account when pricing the financial
asset.
Subsequent measurement :
For subsequent measurement, the Company classifies a financial asset in accordance with the
below criteria :
I ) The Company’s business model for managing the financial asset and
Ii ) The contractual cash flow characteristics of the financial asset.
Based on the above criteria, the Company classifies its financial assets into the following
categories :
i. Financial assets measured at amortised cost
A financial asset is measured at the amortised cost if both the following conditions
are met :
a. The Company’s business model objective for managing the financial asset is to
hold financial assets in order to collect contractual cash flows, and
b. The contractual terms 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.
This category applies to cash and bank balances, trade receivables, loans and other financial
assets of the Company (Refer note 29 for further details). Such financial assets are subsequently
measured at amortised cost using the effective interest method. The effect of the amortisation
under effective interest method is recognised as interest income over the relevant period of the
financial asset under other income in the Statement of Profit and Loss. The amortised cost of a
financial asset is also adjusted for loss allowance, if any.
ii. Financial assets measured at fair value through other comprehensive income
(FVTOCI)
A financial asset is measured at FVTOCI if both of the following conditions are met :
a. The Company’s business model objective for managing the financial asset is
achieved both by collecting contractual cash flows and selling the financial
assets, and
b. The contractual terms 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
This category applies to certain investments in debt instruments (Refer note 29 for further
details). Such financial assets are subsequently measured at fair value at each reporting date. Fair
value changes are recognised in the Other Comprehensive Income (OCI). However, the Company
recognises interest income and impairment losses and its reversals in the Statement of Profit and
Loss.
On derecognition of such financial assets, cumulative gain or loss previously recognised in OCI
is reclassified from equity to Statement of Profit and Loss
Further, the Company, through an irrevocable election at initial recognition, has measured certain
investments in equity instruments at FVTOCI . The Company has made such election on an
instrument by instrument basis. These equity instruments are neither held for trading nor are
contingent consideration recognised under a business combination. Pursuant to such irrevocable
election, subsequent changes in the fair value of such equity instruments are recognised in OCI.
However, the Company recognises dividend income from such instruments in the Statement of
Profit and Loss when the right to receive payment is established, it is probable that the economic
benefits will flow to the Company and the amount can be measured reliably.
On derecognition of such financial assets, cumulative gain or loss previously recognised in OCI
is not reclassified from the equity to Statement of Profit and Loss. However, the Company may
transfer such cumulative gain or loss into retained earnings within equity.
iii. Financial assets measured at fair value through profit or loss (FVTPL)
A financial asset is measured at FVTPL unless it is measured at amortised cost or at FVTOCI as
explained above. This is a residual category applied to all other investments of the Company
excluding investments in subsidiary and associate companies . Such financial assets are
subsequently measured at fair value at each reporting date. Fair value changes are recognised in
the Statement of Profit and Loss.
Derecognition :
i. A financial asset is derecognised when the right to receive cash flows from the assets
has expired, or has been transferred, and the Company has transferred substantially
all of the risks and rewards of ownership.
In cases where Company has neither transferred nor retained substantially all of the risks and
rewards of the financial asset, but retains control of the financial asset, the Company
continues to recognise such financial asset to the extent of its continuing involvement in the
financial asset. In that case, the Company also recognises an associated liability. The
financial asset and the associated liability are measured on a basis that reflects the rights and
obligations that the Company has retained.
On derecognition of a financial asset, (except as mentioned in (ii) above for financial assets
measured at FVTOCI), the difference between the carrying amount and the consideration
received is recognised in the Statement of Profit and Loss.
Impairment of financial assets :
The Company applies expected credit losses (ECL) model for measurement and recognition
of loss allowance on the following :
i. Trade receivables
ii. Financial assets measured at amortised cost (other than trade receivables)
iii. Financial assets measured at fair value through other comprehensive income
(FVTOCI)
In case of trade receivables, the Company follows a simplified approach wherein an amount
equal to lifetime ECL is measured and recognised as loss allowance
In case of other assets (listed as (ii) and (iii) above), the Company determines if there has been a
significant increase in credit risk of the financial asset since initial recognition. If the credit risk
of such assets has not increased significantly, an amount equal to 12-month ECL is measured and
recognised as loss allowance. However, if credit risk has increased significantly, an amount equal
to lifetime ECL is measured and recognised as loss allowance
Subsequently, if the credit quality of the financial asset improves such that there is no longer a
significant increase in credit risk since initial recognition, the Company reverts to recognising
impairment loss allowance based on 12-month ECL
ECL are measured in a manner that they reflect unbiased and probability weighted amounts
determined by a range of outcomes, taking into account the time value of money and other
reasonable information available as a result of past events, current conditions and forecasts of
future economic conditions.
As a practical expedient, the Company uses a provision matrix to measure lifetime ECL on its
portfolio of trade receivables. 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. At each reporting date, the historically observed default rates and changes in the
forward-looking estimates are updated.
ECL impairment loss allowance (or reversal) recognised during the period is recognised as
income/ expense in the Statement of Profit and Loss.
Financial Liabilities
Initial recognition and measurement :
The Company recognises a financial liability in its Balance Sheet when it becomes party to the
contractual provisions of the instrument. All financial liabilities are recognised initially at fair
value minus, in the case of financial liabilities not recorded at fair value through profit or loss
(FVTPL), transaction costs that are attributable to the acquisition of the financial liability.
Where the fair value of a financial liability at initial recognition is different from its transaction
price, the difference between the fair value and the transaction price is recognised as a gain or
loss in the Statement of Profit and Loss at initial recognition if the fair value is determined
through a quoted market price in an active market for an identical asset (i.e. level 1 input) or
through a valuation technique that uses data from observable markets (i.e. level 2 input).
In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the
difference between the fair value and transaction price is deferred appropriately and recognised
as a gain or loss in the Statement of Profit and Loss only to the extent that such gain or loss arises
due to a change in factor that market participants take into account when pricing the financial
liability.
Subsequent measurement :
All financial liabilities of the Company are subsequently measured at amortised cost using the
effective interest method (Refer note 29 for further details). The cumulative amortisation using
the effective interest method of the difference between the initial recognition amount and the
maturity amount is added to the initial recognition value (net of principal repayments, if any) of
the financial liability over the relevant period of the financial liability to arrive at the amortised
cost at each reporting date. The corresponding effect of the amortisation under effective interest
method is recognised as interest expense under finance cost in the Statement of Profit and Loss.
Derecognition :
A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the derecognition of the original liability
and the recognition of a new liability.
The difference between the carrying amount of the financial liability derecognised and
theconsideration paid is recognised in the Statement of Profit and Loss.
Offsetting of financial assets and financial liabilities :
Financial assets and financial liabilities are offset and the net amount is reported in the Balance
Sheet wherever there is a currently enforceable legal right to offset the recognised amounts and
there is an intention to settle on a net basis or to realise the asset and settle the liability
simultaneously.
o Cash & Cash Equivalents
Cash and cash equivalents comprise cash and cash on deposit with banks and corporations. The
Company considers all highly liquid investments with a remaining maturity at the date of
purchase of three months or less and that are readily convertible to known amounts of cash to be
cash equivalents.
Investment in subsidiary and associate Companies
The Company has elected to recognise its investments in subsidiary and associate companies at
cost in accordance with the option available in Ind AS 27, ‘Separate Financial Statements’. Cost
includes cash consideration paid on initial recognition, adjusted for embedded derivative and
estimated contingent consideration (earn out), if any. The details of such investments are given in
Note Impairment policy applicable on such investments is explained in note 1.3(e) above.
Contingent consideration (earn out) is remeasured at fair value at each reporting date and changes
in the fair value of the contingent consideration are recognised in the Statement of Profit and
Loss
p Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the
effects of transactions of noncash nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with investing or financing cash
flows. The cash flows from operating, investing and financing activities of the Company are
segregated.
q Segment Reporting
• The Company identifies primary segments based on the dominant source, nature of risks
and returns and the internal organization and management structure. The operating
segments are the segments for which separate financial information is available and for
which operating profit/loss amounts are evaluated regularly by the executive
Management in deciding how to allocate resources and in assessing performance.
• The Company has identified business segments as its primary segment. Business
segments are primarily Hi-Tech Fabrication Engineering , Flour Division and Agro
Product trading . Revenues and expenses directly attributable to segments are reported
under each reportable segment. Expenses which are not directly identifiable to each
reportable segment have been allocated on the basis of associated revenues of the
segment and manpower efforts. Assets and liabilities that are directly attributable or
allocable to segments are disclosed under each reportable segment.
ForRATH DINESH AND ASSOCIATES
Chartered Accountants For and on behalf of the Board of Directors
FRN: 008344C
Ajay Kumar Rath Sd/- Sd/-
(Partner) Mahesh Agrawal Gaurav Agrawal
M.No.075111 DIN 00013139 DIN 00013176
UDIN: 25075111BMJMCE9770
Place: Bhopal
Date: 6th May 2025
Sd/- Sd/-
Manjeet Singh Ankit Rohit
Chief Financial Officer Company Secretary
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