3.8 Provisions and Contingent Liabilities
Provisions are recognized if the Company has a reliably estimated present obligation (legal or
constructive) as a result of a past event and it is probable that an outflow of resources will be
required to settle the obligation. Provisions are measured based on the best estimate of expenditure
required to settle the obligation as at the date of balance sheet. In cases where the effect of the
time value of money is material, provisions are discounted to reflect its present value using current
pre-tax rate reflecting the risk specific to the obligation. When discounting is used, the increase in
the amount of provision due to the passage of time is recognized as finance cost.
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.
Contingent liabilities are disclosed when there is a possible obligation arising from past events,
which is contingent upon the occurrence or non-occurrence of one or more uncertain future events,
which are not fully within the control of the Company or when there is a present obligation arising
from past events where it is either not probable that an outflow of resources will be required to
settle the obligation or the amount cannot be reliably estimated.
A contingent asset is not recognised but disclosed in the fl nancial statements where an inflow
of economic benefit is probable. Commitments includes the amount of purchase order (net of
advance) issued to counterparties for supplying/ development of assets and amounts pertaining
to Investments which have been committed but not called for.
Provisions, contingent assets, contingent liabilities and commitments are reviewed at each balance
sheet date.
3.9 Revenue Recognition
Sale of goods
Revenue is recognised at transaction value when the performance obligations are satisfied and
the control of the product is transferred, being when the goods are delivered as per the relevant
terms of the contract at which point in time the Company has a right to payment for the asset,
customer has legal title of the asset, customer bears significant risk and rewards of ownership
and the customer has accepted the asset or the Company has objective evidence that all criteria
for acceptance have been satisfied. Payment for the sale is made as per the credit terms in the
agreements with the customers. The credit period is generally short term, thus there is no significant
financing component.
Rendering of services
The performance obligation under service contracts are provision of various services as set forth
in the contracts. Revenue from rendering of services are recognised over a period of time by
reference to the stage of completion as the customer simultaneously receives and consumes the
benefit provided by the Company’s performance. Payment for the service rendered is made as per
the credit terms in the agreements with the customers. The credit period is generally short term,
thus there is no significant financing component.
Dividend and interest income
Dividend income from investments is recognised when the shareholder’s right to receive payment
has been established (provided that it is probable that the economic benefits will flow to the Company
and the amount of income can be measured reliably).
Interest income from a financial asset is recognised when it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably. Interest income
is accrued on a time basis, by reference to the principal outstanding and at the effective interest
rate applicable, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to that asset’s net carrying amount on initial recognition.
Revenue disaggregation as per business segment and geography are contained in the segment
information given in Note 26.3.
3.10 Employee Benefits
Short-term benefits
All short-term employee benefit obligations are measured on an undiscounted basis and expensed
as the related services are rendered.
Defined contribution plans
Contribution to defined contribution plans like provident fund, superannuation fund, employee state
insurance, etc are charged as an expense to the extent of periodic contribution required to be made
as and when services are rendered to the Company. The Company has no further obligations
beyond the periodic contribution in respect of defined contribution plans.
Defined benefit plans
The Company provides for gratuity, a defined benefit plan, to all eligible employees. The amount
recognized as employee benefit expense in the Statement of Profit and Loss is the cost of accruing
employee benefits promised to the eligible employees over the year and costs of past/future service
benefit changes and similar costs. The defined benefit plan surplus or deficit as on the date of
balance sheet comprises the difference between fair value of plan assets and present value of the
defined benefit liabilities, discounted at the yield rate at the reporting date on risk free government
bonds.
All re-measurements of defined benefit liabilities and assets are recognized in other comprehensive
income and are subsequently not reclassified to the Statement of Profit and Loss. The Company
has an employees’ gratuity fund managed by the Life Insurance Corporation of India.
3.11 Share-based Payments
Equity-settled share-based payments to employees are measured at the fair value of the equity
instruments at the grant date. Details regarding the determination of the fair value of equity-settled
share-based transactions are set out in Note 26.9.
The Company makes equity settled share based payment to selected employees under its ESOP
program. The fair value of options granted as on grant date, calculated by an independent valuer on
the basis of Black Scholes model, is recognized as employee benefit expense with a corresponding
increase in equity over the vesting period. At the end of each reporting period, the expense is
reviewed and adjusted to ref i ect changes to the level of options expected to vest. Fresh equity
shares are issued upon exercise of vested options.
3.12 Income-tax Expenses
Income-tax expenses comprises current tax and deferred tax and is recognized in the Statement
of Profit and Loss except to the extent that it relates to an item which is recognized directly in
equity or in other comprehensive income. Current tax is the expected tax payable on the taxable
income using applicable tax rates enacted or substantively enacted as at the reporting date and
any adjustments relating to income-tax of previous years.
Deferred tax is recognized in respect of temporary difference between the carrying amounts of
assets and liabilities as per the fi nancial statements and taxation laws. Deferred tax liability is
recognized based on the expected manner of realization or settlement of the difference in carrying
amounts applying tax rates enacted or substantively enacted as at the reporting date. Deferred
tax assets are recognized only to the extent that it is probable that future taxable profits will be
available to utilize the same. Deferred tax assets are reviewed at each reporting date and reduced
to the extent that it is no longer probable that it will be realized.
Current tax assets and liabilities are offset when there is a legally enforceable right to set them off
and there is an intent to settle them on a net basis. Deferred tax assets and liabilities are set off
when they are related to income-tax levied by the same taxation authority and there is a legally
enforceable right to set off current tax assets and liabilities.
3.13 Foreign Currency
In preparing the fi nancial statements of the Company, transactions in currencies other than the
entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at
the dates of the transactions. The income and expense of foreign branch operations are translated
using average exchange rates. At the end of each reporting period, monetary items denominated in
foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried
at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at
the date when the fair value was determined. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated. Exchange differences on monetary items
are recognised in the Statement of Profit and Loss in the period in which they arise.
3.14 Earnings Per Share
The Company presents the basic earnings per share by dividing the net profit for the period
attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding
during the period. Where ordinary shares are issued without a corresponding change in resources
like bonus issue, the weighted number of equity shares outstanding during the period as well as
all periods presented are adjusted for such events.
Diluted earnings per share is computed by dividing the net profit after tax by the weighted average
number of equity shares considered for deriving basic earnings per share and also weighted average
number of equity shares that could have been issued upon conversion of all dilutive potential equity
shares. Dilutive potential equity shares are deemed converted as of the beginning of the period,
unless issued at a later date. Dilutive potential equity shares are determined independently for each
period presented. The number of equity shares and potentially dilutive equity shares are adjusted
for bonus shares, consolidation of shares, etc. as appropriate.
3.15 Segment Reporting
The Company reports business and geographic segments in a manner consistent with the reporting
provided to the Chief Operating Decision Maker, in line with Ind-AS 108.
3.16 Dividend Distributed to Equity Shareholders
Dividend distributed to equity shareholders is recognized as distribution to owners of capital in the
Statement of Changes in Equity after it is approved by the Members.
3.17 Borrowings and related costs
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in the Statement of Profit and Loss over the
period of the borrowings using the effective interest method. Fees paid on the establishment of
loan facilities are recognised as transaction costs of the loan to the extent that it is probable that
some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down
occurs. To the extent there is no evidence that it is probable that some or all of the facility will be
drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the
period of the facility to which it relates.
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 recognised in the Statement of Profit
and Loss as other gains/(losses).
Borrowings are classified as current liabilities unless the Company has an unconditional right to
defer settlement of the liability for at least 12 months after the reporting period. Where there is a
breach of a material provision of a long-term loan arrangement on or before the end of the reporting
period with the effect that the liability becomes payable on demand on the reporting date, the entity
does not classify the liability as current, if the lender agreed, after the reporting period and before
the approval of the financial statements for issue, not to demand payment as a consequence of
the breach.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended
use or sale, are added to the cost of those assets, until such time as the assets are substantially
ready for their intended use or sale. Interest income earned on the temporary investment of specific
borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs
eligible for capitalization. All other borrowing costs are recognised in the Statement of Profit and
Loss in the period in which they are incurred.
3.18 Cash flow statement
Cash flows are reported using the indirect method, whereby profit/(loss) before tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future
cash receipts or payments. The cash flows from operating, investing and financing activities of the
Company are segregated based on the available information. Cash and cash equivalents includes
balances in current accounts, debit balance in cash credit accounts, cash on hand and cheques/
drafts on hand. Bank overdrafts are shown within borrowings in current liabilities in the balance
sheet.
26.1.3 Commitments
Estimated amount of contracts remaining to be executed on capital account: ' 489.70 lakhs (Previous Year - ' 49.19 lakhs).
Note. 26.2 Employee Benefits
The Company has accounted for the Long term defined benefits and contribution schemes as under:
26.2.1 Defined Contribution Schemes
Contributions to Provident Fund and Employee State Insurance are made monthly to the respective Authorities.
Contribution to Superannuation fund for eligible employees is made by way of premium to Life Insurance Corporation
of India through the Trust and charged to the Statement of Profit and Loss for the year.
26.2.2 Defined Benefit Scheme
The Company has defined benefit scheme in the form of gratuity to employees.
Contribution to gratuity is made to Life Insurance Corporation of India through the Gratuity Fund as per the scheme
framed by the Corporation. The disclosure under Ind-AS 19 in this regard is given hereunder:
Note 26.3 Segment Reporting
The Chief Operating Decision Maker evaluates the Company’s performance and allocates resources based on the
analysis of various performance indicators by business segments and geographic segments. Accordingly, information
has been presented both along business segments and geographic segments. The accounting principles used in the
preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments
and are as set out in the material accounting policies.
Accordingly, the business segments of the Company are:
(i) Manufacturing Units
(ii) Service Units
(iii) Others
and the geographic segments of the Company are:
(i) India
(ii) Outside India
Reporting for business segment is on the following basis:
Segment Revenue relating to individual segment is recorded in accordance with accounting policies followed by the
Company. All expenditure, which are directly attributable to a business segment is charged to the respective segment.
The income and costs which cannot be reasonably attributed to any specific business segment are shown as unallocable
expenses (net of income)
Segment Results represents the profit before tax earned by each segment excluding fi nance costs and unallocable
expenses (net of income).
For the purpose of monitoring segment performance and allocating resources between segments:
Property, plant and equipment employed in the operations are allocated to the segment to which the activity relates.
The depreciation on the corresponding assets is charged to the respective segments.
All other assets that are directly attributable to a particular segment of operations are allocated to the respective
reportable segments.
All liabilities (other than borrowings, current and deferred tax liabilities) that are directly attributable to a particular segment
of operation are allocated to the respective reportable segments.
The following is an analysis of the Company’s revenue and results from operations by reportable segment.
Note 26.4 Financial Instruments
Capital Management
The Company’s business model is working capital centric. The Company manages its working capital needs and long-term
capital expenditure, through a balanced mix of capital (including retained earnings), short term debt and long-term debt.
The capital structure of the Company comprises of net debt (borrowings reduced by cash and bank balances) and equity.
The Company is not subject to any externally imposed capital requirements.
The Company reviews its capital requirements on an annual basis as part of its Annual Operating Plan. As part of the
Annual Operating Plan, the Company estimates the capital required and formulates the broad financing mechanism
for the same.
Investment in subsidiaries are carried at cost net of accumulated impairment losses, if any. All other financial assets
and liabilities are carried at amortized cost.
Financial Risk Management
The Company’s activities expose it to market risk (including currency risk, interest rate risk and other price risk), credit
risk and liquidity risk. The Company seeks to minimise the effects of these risks by taking various measures.
The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative
purposes.
Market risk
The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and
interest rates. The Company manages such risks through natural hedge.
Foreign Currency risk management
The Company undertakes transactions denominated in foreign currencies, resulting in exposure to exchange rate
fluctuations. The foreign currency transactions primarily relate to imports and exports. Considering the volume of imports
and exports, exchange rate exposures of the Company are managed through natural hedge..
The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the
end of the reporting period are as follows:
Interest rate risk management
The Company’s exposure to interest rate risk is limited to the extent of Working capital and Term Loan funding availed
from the Bankers, which is at the External Benchmark Lending rate subject to a periodic reset.
Interest rate sensitivity analysis
The interest rate sensitivity analysis is being done based on the assumption that the amount of liability outstanding at
the end of the period was outstanding for the whole year and all other variables remaining constant:
If interest rates had been 50 basis points higher: The fi nance cost, for the financial year 2024-25, would have been
higher and profits (pre-tax) would have been lesser by ' Nil (FY 2023-24: ' 4.32 lakhs).
If interest rates had been 50 basis points lower: The finance cost, for the financial year 2024-25, would have been lower
and profits (pre-tax) would have been higher by ' Nil (FY 2023-24: ' 4.32 lakhs).
This is mainly attributable to Company’s exposure to interest rates on its variable rate borrowings.
Other price risks
Company’s investments in equity instruments are restricted to its investment in its subsidiaries, which are held for strategic
purposes rather than for trading. The Company, as on the reporting date of March 31,2025 has five subsidiaries. All
the five subsidiaries are incorporated abroad, closely held companies and unlisted.
As the purpose of all such investments are strategic rather than for trading, the Company does not recognise any impact
of sensitivity in the equity prices.
Credit Risk Management
The credit risk to the Company arises primarily from customers defaulting on their contractual obligations, thus resulting
in financial loss to the Company.
As part of mitigation process to address the risk, the Company evaluates the credentials of a customer before participating
in the tender or before quoting for their order. The Company evaluates the potential customers’ credentials by considering
various factors such as:
(i) their financial health based on the publicly available financial statements;
(ii) their credit rating, available in the public domain;
(iii) their repute in the market; and
(iv) past experience, if the Company has done any business with them earlier.
The Company makes provision on its financial assets, on every reporting period, as per Expected Credit Loss Method.
The percentage at which the provision is made, is determined on the basis of historical experience of such provisions,
modified to the current and prospective business and customer profile.
Trade receivables consist of large number of customers, spread across diverse industries and geographical areas.
Many of the customers of the Company comprise of Public Sector Undertakings, with whom the Company does not
perceive any major risk.
Liquidity Risk Management
The liquidity requirements of the Company are met by Equity (including internal accruals) and working capital funding
from the banks. The liquidity requirements for the operations are met by allocating the cash flows from the customers.
The Company has established a practice of prioritising the regulatory payments, employee related payments and
supplier/ site level payments.
Fair value measurements
Fair value of financial assets and liabilities measured at amortised cost: Trade receivables, cash and cash equivalents,
other bank balances, loans and other financial assets are at carrying values that approximate fair value. Borrowings,
trade payables and other financial liabilities are at carrying values that approximate fair value. If measured at fair value
in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy.
Note 26.14 Details of security provided for Borrowings
Loans repayable on demand from bank represents cash credit facility enjoyed by the Company from its working capital
bankers and is secured by pari passu charge on the current assets of the Company with collateral security comprising
immovable properties of the Company, second charge on plant & machinery purchased out of subsisting term loan, first
charge on other plant & machinery. The security coverage also extends to non-fund based facilities extended by the
working capital bankers. The cash credit facility carry interest rate linked to benchmark lending rates. The facilities are
also secured by personal guarantee of Mr. Thomas John, Mr. Manoj Joseph, Mr. Rajesh John and Mr. Manesh Joseph.
Term loan from bank comprise of a) loan availed to procure fixed assets that are secured by first charge on the assets
purchased from the term loan and repayable in 48 to 60 equal monthly instalments (plus interest) and b) working capital
term loan (WCTL) under Emergency Credit Line Guarantee Scheme secured by second charge on the security offered
for cash credit. The repayment term for the WCTL is 36 equal monthly instalments (plus interest) after a principal
moratorium for 12 months from the date of first drawdown.
Term loan from financial institution comprise of facilities availed for purchase of vehicle and is secured by vehicle purchased
and personal guarantee of Mr. Thomas John. The loans are repayable in 35 to 60 Equated Monthly Instalments.
Residual value:
In respect of Property, Plant and Equipment which have completed the useful life, the carrying amount as on 01.04.2014
or 5% of the cost, whichever is lower, is retained as residual value in the books.
26.19.3 As the estimated recoverable amounts of the assets / cash generating units of the Company are higher than their
carrying amount, no impairment of assets has been reocgnised in the accounts of the Company in line with relevent Ind AS.
26.19.4 The Company did not have any outstanding loan or advance due from any of the Promoters, Directors, Key
Management Personnel or other related parties as at 31st March, 2025, nor was any loan or advance extended during
the year.
26.19.5 The Company has duly hied necessary quarterly returns to the banks which have extended credit facilities on
the basis of security of current assets of the Company and such quarterly statements are in agreement with the books of
account. The Company has used its borrowed funds only for the purposes for which they were borrowed. The Company
has not been declared as a wilful defaulter by any bank or financial institution or other lender.
26.19.6 The Company did not have anything to report in respect of the following:
(a) Benami properties
(b) Trading or investment in crypto or virtual currency
(c) Giving/receiving of any loan or advance or funds with the understanding that the recipient shall lend, invest, provide
security or guarantee on behalf of the Company/funding party
(d) Transactions not recorded in books that were surrendered or disclosed as income during income-tax assessment
(e) Charges or satisfaction not registered with ROC beyond statutory period
(f) Title deeds in respect of freehold immovable properties not being held in the name of the Company.
(g) Transactions with struck-off companies
(h) Non-compliance with number of layers as prescribed under the Companies Act, 2013, read with Companies
(Restriction on number of Layers) Rules, 2017.
26.19.7 During the FY 2024-25, the Company has incurred a revenue expenditure (excluding depreciation) of ' 250.44
lakhs and capital expenditure of ' 18.87 lakhs in relation to Research & Development. (FY 2023-24: ' 208.69 lakhs
and ' 32.30 lakhs, respectively).
26.19.8 During the FY 2022-23, the Board has approved the proposal of Bridgestone Mining Solutions Australia Pty
Ltd to sell its 26% stake in Thejo Australia Pty Ltd (TAPL) at the book value as on 31st March, 2022 with the shares
being purchased by the Company or bought back by Thejo Australia Pty Ltd or as a combination of both in one or more
tranches/transactions to be completed on or before 31st March 2025, subject to all necessary statutory compliances.
Accordingly, the Company has purchased 16% stake in TAPL during FY 2023-24 and remaining 10% stake during FY
2024-25. With this, the TAPL has become a wholly-owned subsidiary of the Company.
26.19.9 During the FY 2024-25, the Company has purchased 2 Nos of shares held by Mr. Alberto Roldan in Thejo Brasil
Comercio E Servicos Ltda (“Thejo Brasil”). With the purchase of shares held by Mr. Alberto, Thejo Brasil became a
wholly owned subsidiary of the Company. The Company has also subscribed 1,25,000 shares of Thejo Brasil at face
value of BRL 1/- each during the year.
26.19.10 The Board has recommended a dividend of ' 5/- (Rupees Five Only) per equity share of face value of ' 10/-
each (fully paid) for the FY 2024-25. Dividend will be treated as an appropriation from Reserves & Surplus during the
period in which it is approved by the Members. No provision is being made in the accounts for the current financial year
in respect of dividend recommended by the Board after the balance sheet date.
Note 27 Previous Year Figures
Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s
classification / disclosure.
As per our report of even date For and on behalf of the Board
For BRAHMAYYA & CO.
Chartered Accountants V A GEORGE THOMAS JOHN
Firm Registration IMo. 000511S Executive Chairman Vice Chairman
L RAV| SANKAR DIN 01493737 DIN 00435035
Partner
M N°. 025929 MANOJ JOSEPH M D RAVIKANTH
Place : Chennai Managing Director Chief Financial Officer and
Date : 28th May, 2025 DIN 00434579 Secretary
| 