4.21. Provision, Contingent Liabilities and Contingent Assets
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 amount recognized 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.
Contingent liabilities are disclosed in the Standalone Financial Statements by way of notes to accounts, unless possibility of an outflow of resources embodying economic benefit is remote.
Contingent assets are not recognised in the financial statements. Contingent assets are disclosed in the Standalone Financial Statements by way of notes to accounts when an inflow of economic benefits is probable.
Warranty Provisions
Provision for warranty-related costs are recognized when the product is sold or service is provided to the customer. Initial recognition is based on historical experience. the Company periodically reviews the adequacy of product warranties and adjust warranty percentage and warranty provisions for actual experience, if necessary. The timing of outflow is expected to be within one to three years.
Note:
(a) The Company incurred H 337.73 Lakhs for the year ended March 31,2025 (March 31,2024: H 307.42 Lakhs) towards expenses relating to short-term leases and leases of low-value assets. The total cash outflow for leases is H 921.08 Lakhs for the year ended March 31, 2025 (March 31,2024: H 863.28 Lakhs), including cash outflow of short-term leases and leases of low-value assets. Interest on lease liabilities for the year ended March 31,2025 is H 171.98 Lakhs (March 31,2024: H 138.71 Lakhs).
(b) Lease contracts entered by the Company majorly pertains for buildings taken on lease to conduct its business in the ordinary course. The Company have taken land and buildings on leases for office, manufacturing and warehouse facilities.
(c) The Company has not received the COVID-19-related rent concessions during the year ended March 31,2025 and March 31,2024.
(d) The weighted average incremental borrowing rate applied to lease liabilities is 13.50% during the year.
(e) The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.
9 Intangible Assets under Development (Contd..)
Significant estimate: Useful life of intangible assets under development
As per Ind AS 38-Intangible Assets, Development costs are capitalised as an intangible asset if it can be demonstrated that the project is expected to generate future economic benefits, it is probable that those future economic benefits will flow to the entity and the costs of the asset can be measured reliably. The company has inhouse research and development unit for development of the new products. The research and development units are duly approved and registered with DSIR (Department of Scientific and Industrial Research). During the year ended March 31,2025 the Company has spent Total J 3,106.22 Lakhs (year ended March 31, 2024; J 1,887.59 Lakhs) on research and development of product out of this total expenditure the company has spent J 1,176.75 Lakhs (year ended March 31,2024; J 310.31 Lakhs) on the eligible development expenses on projects which can demonstrate that these project will generate future economic benefits in the future and cost can be measured reliably. So the eligible amount has been capitalised under Intangible assets and Intangible assets under developement and the balance amount of J 1,929.47 Lakhs (March 31,2024; J 1577.28 Lakhs) is charged to profit and loss account as revenue expenditure.
'Conversion of 6% Compulsorily Convertible Debentures:
During the financial year ended March 31,2024, the Company converted 4,69,484 (Four Lakhs Sixty-Nine Thousand Four Hundred and Eighty-Four Only) 6% Compulsorily Convertible Debentures (CCDs) of J 1065/- each allotted to NextWave Communications Private Limited into 4,69,484 (Four Lakhs Sixty-Nine Thousand Four Hundred and Eighty-Four Only) equity shares of J10/- each of the Company issued at a premium of J 1055/- per share, which is equivalent to J 5,000 Lakhs of the total CCD amount of J 7,500 Lakhs.
Further, 2,34,741 (Two Lakhs Thirty-Four Thousand Seven Hundred and Forty-One Only) CCDs of the Company having face value of J 1065 (Rupees One Thousand and Sixty-Five Only) each converted and allotted to NextWave Communications Private Limited into 2,34,741 (Two Lakhs Thirty-Four Thousand Seven Hundred and Forty-One Only) 6% unsecured Non-Convertible Debentures (“NCDs”) of the Company having face value of H 1065 (Rupees One Thousand and Sixty-Five Only) each, which is equivalent to J 2,499.99 Lakhs.
** Bonus Share Issue:
Board of Directors in its meeting held on September 15, 2023 issued bonus shares at the ratio of 11:1 [i.e. 11 (Eleven) fully paid up equity shares for every 1 (One) equity share held] to the shareholders appearing in the Register of Members as on the Record Date i.e. September 15, 2023.
Note 26.3: 6% Compulsorily Convertible Debentures:
During the FY 2020-21 the Company has issued 6% Compulsorily convertible debentures for H 7,500 Lakhs (704,225 debentures having face value of H 1065 each) on a private placement offer for cash to Nextwave Communication Private Limited. The CCD instrument carry the below terms and conditions.
(i) CCD Shall be Unsecured;
(ii) CCD shall have tenor of 8 Years;
(iii) CCD Shall carry fixed coupon rate of 6% per annum.
(iv) the holder shall have the right to convert all or part of the CCD held by it into equity shares at any point of time after the completion of 12 months from the date of allotment of CCD till expiry of 8 years from date of allotment at a conversion rate of 1:1 i.e. each CCD shall convert into each equity share.
As per Ind AS, Convertible Instruments into fixed number of equity shares with mandatory interest payment is classified as compound financial instrument from the issuer’s perspective. Such compound financial instrument is required to be separated into two components i.e. financial liability and equity. When allocating the initial carrying amount of the compound instrument into financial liability and equity, an entity first determines the fair value of the liability component. The fair value of the financial liability is determined with reference to the fair value of a similar stand-alone debt instrument. The amount allocated to the equity component is residual amount after deducting the fair value of the financial liability component from the fair value of the entire compound instruments.
Note 26.4: 6% Non-Convertible Debentures:
During the year ended March 31,2024, the Company converted 4,69,484 (Four Lakhs Sixty-Nine Thousand Four Hundred and Eighty- Four Only) 6% Compulsorily Convertible Debentures (CCDs) of H 1065/- each allotted to NextWave Communications Private Limited into 4,69,484 (Four Lakhs Sixty-Nine Thousand Four Hundred and Eighty-Four Only) equity shares of H10/- each of the Company issued at a premium of H 1055/- per share, which is equivalent to H 5,000 Lakhs of the total CCD amount of H 7,500 Lakhs.
Further, 2,34,741 (Two Lakhs Thirty-Four Thousand Seven Hundred and Forty-One Only) CCDs of the Company having face value of H 1065 (Rupees One Thousand and Sixty-Five Only) each converted and allotted to NextWave Communications Private Limited into 2,34,741 (Two Lakhs Thirty-Four Thousand Seven Hundred and Forty-One Only) 6% unsecured Non-Convertible Debentures (“NCDs”) of the Company having face value of H 1065 (Rupees One Thousand and Sixty-Five Only) each, which is equivalent to H 2,499.99 Lakhs.
Note:
A) The working capital limit from Punjab National Bank, State Bank of India and IDBI bank Ltd are secured by way of hypothecation of first charge on pari passu basis on entire current assets of the company i.e., hypothecation of stocks of raw materials, finished goods and semi finished goods, stores and spares, book debts etc., both present and future. Further the limit are also secured by way of first charge on pari passu basis on all the movable and immovable properties, both present and future and by pledge of 2,566,585 equity shares of the company held by Nextwave Communications Private Limited and personal guarantee of Shri Anant Nahata. Further the limit from Punjab National Bank, SBI & IDBI are secured by corporate guarantee of HFCL Limited to the extent of H 650 Lakhs and personal guarantee of Shri Mahendra Nahata on pari passu basis.
Primary Security- Pari-passu first charge of hypothecation of stock andreceivables of the company with consortium members (PNB, SBI and IDBI)
Immovable Property-
i) First pari passu charge on immovable property situated at plot no 1-8 situated at khata no 386/1 in mauja bassi patti kather, industrial area, chambaghat, solan, himachal pradesh, 173211. (semi-urban), admeasuring total area: 1488 sq. mtr. in the name of M/s Exicom Tele-systems Limited.
ii) First Pari Passu charge on Plant and Machinery of the company (excluding assets charged against term loan).
iii) Lien 1st charge over fixed deposit (total value H 569 Lakhs under consortium) current values as on March 31, 2025 is H 818.60 Lakhs.
iv) Pledge of 25,66,585 nos. equity shares of Exicom Tele-systems Ltd. held by Nextwave Communications Private Limited on pari passu basis.
v) Negative lien of property situated at Plot No. S-105, S-106, S-107, S-108, S-109, S-110, S-111, S-112 measuring an extent of 74475.40 sq mts at EHMC- Non-SEZ Area, Raviryala Village, Maheshwaram Mandal, Randa Reddy District, Telangana to be created and original sale agreement to be held with bank.
Third Party Guarantee-
Personal Guarantee of Mr. Anant Nahata, Mr. Mahendra Nahata. Corporate Guarantee of HFCL Limited (Amount restricted up to H 650 Lakhs as per consortium agreement)."
B) The working capital limit has been sanctioned by the banks at the interest rate: PNB @11.05%, IDBI @11.95%, SBI @9.75%.
C) Pari passu charge on Fixed/Block Assets present and future limited to H 1097.59 Lakhs but not limited to Plant and Machinery together with accessories electronic spares machinery spares tools and accessories wherever situated inter alia pertaining to
29 Current Financial Liabilities - Borrowings (Contd..)
the guarantor i.e. Exicom Energy Services Private Limited anywhere and elsewhere. Corporate Guarantee of Fellow subsidiary Company i.e. Exicom Energy Services Private Limited aggregating to H 1,097.59 Lakhs
D) IDBI WCDL loan is secured by, First pari-passu charge on the entire current assets of the company both present & future with the consortium banks,
Second Pari-passu Charge on movable & immovable fixed assets of the company (Present & Future) with consortium banks
Second Pari-passu Charge on immovable leasehold property (Land & building) five storied RCC Industrial Structure on Plot No. 1-8 situated at Khata No. 666/1455 Khasra No. 386/1 in Mauja Bassi Patti Kather in Industrial Area, Chambaghat Solan (HP)-173211.
Pari-passu Charge on 25,66,585 nos. equity shares of Exicom Tele-systems Ltd. held by Nextwave Communications Private Limited.
Pari -passu charge on Lien on fixed deposit (total value H 569 Lakhs under consortium) current values as on March 31, 2025 is H 818.60 Lakhs.
Further, Personal Guarantee of Mr. Anant Nahata, Mr. Mahendra Nahata and Corporate Guarantee of HFCL Limited restricted up to H650 Lakhs, CG of Exicom Energy Systems Pvt Ltd of H1,097.59 Lakhs, CG of Nextwave Communications Pvt. Ltd up to limit of H 383.23 Lakhs.
E) Shinhan Bank: WCDL loan is secured by, First pari-passu charge on the entire current assets of the company both present & future with the consortium banks,
Second Pari-passu charge on the entire fixed assets of the Company and immovable leasehold property (land & building) located at Plot No. 1-8, Electronics Complex Ind. Area, Chambaghat, Solan with other Working Capital lenders.
Personal Guarantee of Mr. Anant Nahata.
F) Unsecured Loan
i) During the FY2024-25, Unsecured Loan of INR-2,000 Lakhs has been raised from Parmesh Finlease Limited - NBFC @10.50% and fully repaid.
ii) During the FY2024-25, Unsecured Loan of INR-2,000 Lakhs has been raised from Dhwaja Commodity Services Pvt Ltd.- NBFC @12% and fully repaid.
iii) During the FY2024-25, Unsecured Loan of INR-8,500 Lakhs has been raised from Parameshvari Consulting Private Limited- NBFC @12% and fully repaid.
iv) During the FY2024-25, Unsecured Loan of INR-2,000 Lakhs has been raised from Nextwave Communications Pvt. Ltd. @12% and fully repaid. Further, two new Unsecured Loan of INR-4,500 Lakhs & INR - 3,500 Lakhs has been raised from Nextwave Communications Pvt. Ltd. @8.25%.
v) During the FY2024-25, Unsecured Loan of INR-7,500 Lakhs has been raised fom Infotel Business Solutions Limited @12.25%.
47 Critical accounting estimates and judgments
The estimates and judgements used in the preparation of the said standalone financial statements are continuously evaluated by the Company, and are based on historical experience and various other assumptions and factors (including expectations of future events), that the Company believes to be reasonable under the existing circumstances. The said estimates and judgements are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.
Although the Company regularly assesses these estimates, actual results could differ materially from these estimates - even if the assumptions under-lying such estimates were reasonable when made, if these results differ from historical experience or other assumptions do not turn out to be substantially accurate. The changes in estimates are recognised in the financial statements in the period in which they become known.
* The Company’s pending litigations comprise of claims against the Company and proceedings pending with Tax Authorities / Statutory Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position.
During the financial year 2019-20 the company has received the refund on 23.04.2019 pertaining 2011-12 (H 54.74 Lakhs), 2012-13 ( H 1.27 Lakhs), 2013-14 (H 78.10 Lakhs) against the sales tax assessment relief granted by the Tribunal on 17.11.2018. Against this relief the Sale tax department has filed revision application to the High court and application has been dismissed on 28.03.2019. Now the Sale tax department has filed the application with the Supreme Court and which is pending at this level. Accordingly, H 134.11 Lakhs is treated as Contingent liability.
During the financial year 2020-21 the company has received a demand order of H 130.71 Lakhs against the sales tax assessment for FY 2014-15 from the office of Deputy commissioner of Sale Tax, Patna. Accordingly, H 130.71 Lakhs is treated as Contingent liability. The Company has filed application with Additional Commissioner, Appeal Patna on April 26, 2023.
During the financial year 2023-24 the company has received a demand order of H 4.72 Lakhs against the GST assessment for FY 2017-18 from the State Tax Officer, Ernakulam, Kerala. Accordingly, H 4.72 Lakhs is treated as Contingent liability. The Company has filed application with Joint Commissioner Appeal Mattanchery, Kerala on March 09, 2024.
During the financial year 2024-25, the company has received a demand order of H 1.82 Lakhs against the GST assessment for FY 2018-19 from the office Assistant Commissioner State Taxs, Jaipur, Rajasthan. Accordingly, H 1.82 Lakhs is treated as Contingent liability.
Subsequent to March 31,2025, The Company has received a demand order of H 28.16 Lakhs against the VAT assessment for FY 2017-18 from the office Joint Commissioner of Commercial Taxes Behala Charge, West Bengal. Accordingly, H 28.16 Lakhs is treated as Contingent liability.
The Company periodically reviews all its long term contracts to assess for any material foreseeable losses. Based on such review wherever applicable, the Company has made adequate provisions for these long term contracts in the books of account as required under any applicable law/accounting standard.
As at March 31,2025 the Company did not have any outstanding long term derivative contracts.
51 In the opinion of the Board and of the best of their knowledge and belief, the value of realization in respect of the Current Assets, Loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and the provision for all known and determined liabilities is adequate and not in excess of amount reasonably required.
52 As per Notification No. FEMA 23(R)/2015-RB Dated 12th January, 2016 and RBI guidelines the amount representing the full export value of goods / software/ services exported should be realized and repatriated to India within nine months from the date of export i.e. Date of Invoice. Trade receivable of H 328.81 Lakhs (March 31,2024: H 162.94 Lakhs) is outstanding against export beyond stipulated time as at March 31, 2025.
53 As per master circular on Import of Goods and Services vide ref no. RBI/2015-16/82 Master Circular No.13/2015-16, Dated July 01, 2015(Amended up to November 27, 2015) remittances against imports should be completed not later than six months from the date of shipment. Trade payable of H 2,842.02 Lakhs (March 31, 2024: H 3,107.57 Lakhs) is unpaid against import beyond stipulated time as at March 31,2025.
54 Segmental Reporting
The operating segments have been identified on the basis of nature of products.
i) Segment revenue includes sales and other income directly identifiable with the segment including inter-segment revenue.
ii) Expenses that are directly identifiable with the segment are considered for determining the segment result.
iii) Expenses / Incomes which are not directly allocable to the segments are included under un-allocable expenditure / incomes.
iv) Segment results include margins on inter-segment sales which are reduced in arriving at the profit before tax of the company.
v) Segment assets and liabilities include those directly identifiable with the respective segments. Un-allocable assets and liabilities represent the assets and liabilities that relate to the company as a whole and not allocable to any segment.
vi) Fixed assets that are used interchangeably amongst segments are not allocated to primary and secondary segments.
vii) Inter - Segment revenue :- Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price agreed between the segments. Such transfer prices are either determined to yield a desired margin or agreed on a negotiated basis.
viii) Geographical revenues are allocated based on the location of the customer .
(a) Primary Segment Information
The Company's operating segments are established on the basis of those components of the Company that are evaluated regularly by the Chief Executive Officer (the 'Chief Operating Decision Maker' as defined in Ind AS 108 - ‘Operating Segments’) in deciding how to allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. Operating and reporting segments are primarily Critical Power and EV Charger business. The details of operating and reporting segments are as follows:
56 Employee Stock Option Scheme 2023 ('ESOP Scheme') :
The Company had announced the Employee Stock Option Scheme 2023 (""ESOP Scheme 2023""), which was approved by the shareholders at the Extra-ordinary General Meeting held on September 16, 2023, and subsequently ratified and amended through a shareholder resolution dated September 27, 2024 in the 30th Annual General Meeting. The Scheme provided for a maximum of 4,862,960 stock options, each convertible into one equity share of face value H 10/-.
Options granted under ESOP Scheme 2023 shall not vest earlier than a minimum vesting period of one year and not later than a maximum vesting period of five years from date of grant. The exercise period in respect of vested options shall be subject to a maximum period of four years commencing from the date of vesting.
Under this Scheme, a total of 999,151 options were granted to eligible employees at an exercise price of H 114 per option. The vesting of these options commenced from the respective grant dates, subject to a minimum of one year and a maximum of five years from the grant date.
Over the course of operations, 179,924 options out of the granted pool lapsed and were added back to the ungranted pool, which stood at 3,863,809 options. Hence, total ungranted options are 40,43,733.
Subsequently, during FY 2024-25 upon recommendation of the Nomination and Remuneration Committee (NRC), the Board of Directors, at its meeting held on February 5, 2025, resolved to reduce the ESOP 2023 pool to 819,227 options and reallocate the remaining 4,043,733 ungranted options to a new Employee Stock Option Scheme 2025 (""ESOP Scheme 2025""), subject to shareholder approval.
Accordingly, as of March 31, 2025, 819,227 granted options remain outstanding under ESOP Scheme 2023. During the year, 122,884 options vested, out of which 94,915 options were exercised and are pending for allotment as on March 31,2025. The fair value of the granted options has been estimated using the Black-Scholes Model, considering the terms and conditions of the grant.
The Company has recognised an expense of H 322.65 Lakhs (March 31, 2024 : H Nil) in accordance with Ind AS 102 “Share Based Payments”. The carrying amount of Employee stock options outstanding reserve as at March 31,2025 is H 322.65 Lakhs (March 31, 2024: H Nil ) for ESOP granted to the employees of the Company.
Risk free rate of interest: This is based on the yields on government bonds of term equivalent to the expected life of the option as on the date of grant.
Expected Volatility: The company was recently listed on the Stock Exchange, andhence, there is no appropriate past share price volatility data.Therefore, the volatility has been determined based on the observed historical volatility of listed competitors/comparable companies,allowing for the fact that the Company is unlisted.The company has confirmed the list of competitors.
Expected Term to maturity: It is the period for which the Company expects the options to be alive.The minimum life of stock option is the minimum period before which the options cannot be exercised and the maximum life is the period after which the option can not be exercised.
57 In view of the limited scale of operations at the Company’s Solan (Himachal Pradesh) Facilities and as a step towards cost optimization, the Company introduced a Voluntary Retirement Scheme (VRS) to employees. The Company has paid VRS compensation amounting to H 700.34 lakhs subsequent to the balance sheet date.
58 Financial Risk Management Objectives and Policies
The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.
The Company’s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company's senior management has the overall responsibility for the establishment and oversight of the Company's risk management framework. The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.
58 Financial Risk Management Objectives and Policies (Contd..)
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) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.
Trade Receivables
Customer credit risk is managed by each business unit subject to the Company 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. At March 31, 2025, the Company had top 10 customers that owed the Company more than H 19,806.66 Lakhs (March 31, 2024: H 15,019.45 Lakhs) and accounted for approximately 69.32% (March 31, 2024: 77.19%) of all the receivables outstanding.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 12 & 17. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.
Financial Instruments and Cash Deposits
Credit risk from balances with banks and financial institutions is managed by the management in accordance with the Company’s policy. Counterparty credit limits are reviewed by the management on an annual basis, and may be updated throughout the year. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.
The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2025 and March 31, 2024 is the carrying amounts as illustrated in Note 11,13,19,20 and 21.
59 Financial Instruments by category (Contd..)
Fair Value measurement
Fair Value Hierarchy and valuation technique used to determine fair value :
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and are categorized into Level 1 , Level 2 and Level 3 inputs. (Refer note no.3.5)
There have been no transfers among Level 1, Level 2 and Level 3 during the year.
Significant estimates
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting year. For details of the key assumptions used and the impact of the changes to these assumptions.
60 Modified Special Incentive Scheme (M-SIPS) has been notified on 27th July’2012, with approval of Union Budget, for providing special incentive package to offset the disability and attract investment in electronics System Design and Manufacturing Sector. There is a provision in M-SIPS for reimbursement of 25% of capex investment in Non-SEZ area.
Exicom Tele-System Limited had filed Application with Project cost of H 4500 Lakhs in two phases (Phase I H 3885 Lakhs and Phase II H 645 Lakhs) at Industry Plot no 2A Sector -18 for manufacturing of battery controller for lithium ion batteries, Power system and SMR, application was acknowledged on 13.05.2016. Application was accorded approval on 25.01.2018 under the project type “Expansion”.
During FY18-19, application for incentive/reimbursement for capex investment done in Phase I (Claim period 13.05.2016 to
30.06.2017) was filed on 31.07.2018 for H 1825 Lakhs (out of H 3885 Lakhs of the project cost for Phase I, H 1905 Lakhs was eligible). On verification of the assets by the agency appointed by Ministry of Electronics & Information Technology (MEITY), capex investment amounting to H 1506.71 Lakhs was considered Eligible for disbursement.
Sanction letter for disbursement of MSIPS incentive/reimbursement amounting to H 376.67 Lakhs (25 % of the Eligible capex of H 1506.71 Lakhs) dated 28.01.2019 was received from Ministry of Electronics & Information Technology and Incentive was received on 11.02.2019
During FY23-24, application for incentive/reimbursement for capex investment done in Phase II (Claim period 04.11.2017 to
17.08.2018) was filed on 17.01.2018 for H 578 Lakhs (out of H 614 Lakhs of the project cost for Phase II, H 588 Lakhs was eligible). On verification of the assets by the agency appointed by Ministry of Electronics & Information Technology (MEITY), capex investment amounting to H 412.13 Lakhs was considered Eligible for disbursement.
Sanction letter for disbursement of MSIPS incentive/reimbursement amounting to H 103.03 Lakhs (25 % of the Eligible capex of H 412.13 Lakhs) dated 12.06.2023 was received from Ministry of Electronics & Information Technology and Incentive was received from 26.06.2023 to 05.07.2023.
During FY24-25, application for incentive/reimbursement for capex investment done in Phase I (13.05.2016 to 30.06.2017) was filed on 05.08.2024 of outstanding claim for H 103 Lakhs (out of H 3885 Lakhs of the project cost for Phase I, H 1905 Lakhs was eligible). On verification of the assets by the agency appointed by Ministry of Electronics & Information Technology (MEITY), capex investment amounting to H 98.27 Lakhs was considered Eligible for disbursement.
Sanction letter for disbursement of MSIPS incentive/reimbursement amounting to H 24.57 Lakhs (25 % of the Eligible capex of H 98.27 Lakhs) dated 26.09.2024 was received from Ministry of Electronics & Information Technology and Incentive was received on 01.10.2024.
61 Disaggregation of Revenue
The Company’s primary business segments are Critical Power and EV Charger. Sale of goods are made at a point in time and revenue is recognised upon satisfaction of the performance obligations which is typically upon dispatch / delivery. The Company has a credit evaluation policy based on which the credit limits for the trade receivables are established. There is no significant financing component as the credit period provided by the Company is not significant.
(b) The Company has also undertaken the Pre-IPO Placement, of 5,259,257 Equity Shares at an issue price of H 135.00 per Equity Share (including a premium of H 125.00 per equity share) for cash consideration aggregating to H 7100.00 lakhs.
During the FY 2023-24, The Company has completed Initial Public Offer (IPO) of 3,02,11,200 equity shares comprising a fresh issue of 2,31,69,000 equity shares and offer for sale by selling shareholders of 70,42,200 equity shares of face value of H 10 each at premium of H 132 per share aggregating to H4,2899.90 Lakhs. Pursuant to the IPO, the equity shares of the Company are listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) with effect from March 05, 2024. The Company has also undertaken the Pre-IPO Placement, of 5,259,257 Equity Shares at an issue price of H 135.00 per Equity Share (including a premium of H 125.00 per equity share) for cash consideration aggregating to H 7100.00 lakhs. As on March 31, 2024, the Company had incurred H 3,595.89 Lakhs as IPO related expenses (incl. provision for certain invoices) and allocated such expenses between the Company H 2,871.38 Lakhs and selling shareholders H 724.51 Lakhs. Such amounts were allocated based on agreement with selling shareholders and in proportion to the total proceeds from the IPO. The Company’s share of expenses of H 2,501.66 Lakhs (net of GST credit of H 480.24 Lakhs) has been adjusted to securities premium (Refer note 25 of the standalone financial statements). Subsequent to the listing of shares of Company, the IPO related expenses of H 613.99 Lakhs (excluding GST output of H 110.52 Lakhs) were recovered from the selling shareholders as per the original estimated expenses mentioned in the prospectus filed with RoC. With the finalisation of revised issue expenses as mentioned above, sum of H 155.41 Lakhs is payable to selling shareholders at the end of the year and shown under current liabilities. Refer note 31 of the standalone financial statements.
70 Tritium Acquisition:
Exicom’s wholly owned subsidiary (namely Exicom Power Solutions B.V., a company incorporated in Netherlands) and wholly owned step down subsidiaries (namely Tritium Power Solutions Inc., USA and Tritium Power Solutions Pty Ltd, Australia) have executed a business sale agreement (“Business Sale Agreement”) with the Tritium Group entities in United States of America (namely, Tritium America Corporation and Tritium Technologies LLC) and in Australia (namely, Tritium DCFC Limited, Tritium Holdings Pty Ltd, Tritium Pty Ltd) under which it will acquire business and assets of Tritium group of companies.
The consolidated purchase price for the Tritium Acquisition was H 27,300.00 Lakhs.
71 Other Statutory Information
i) The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the Standalone financial statements included in property, plant and equipment and Right of Use Assets are held in the name of the Company as at the balance sheet date.
ii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current year or previous year.
iii) There are no investment in properties.
iv) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
v) The Company has not advanced any loans or advances in the nature of loans to specified persons viz. promoters, directors, KMPs, related parties; which are repayable on demand or where the agreement does not specify any terms or period of repayment.
vi) The Company has utilised funds raised from issue of securities or borrowings from banks for the specific purposes for which they were issued/taken.
vii) The Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets and the quarterly returns or statements filed by the company with such banks or financial institutions are in agreement with the books of account of the Company except as mentioned hereunder:
71 Other Statutory Information (Contd..)
x) The Company does not have any transaction which is not recorded in the books of accounts but has been surrendered or disclosed as income during the financial 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).
xi) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.
xii) 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.
xiii) The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.
xiv) The Company has not filed any scheme of arrangements in terms of section 230 to 237 of the Companies Act 2013 during the year.
xv) The Company, other than mentioned below, 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
71 Other Statutory Information (Contd..)
xvi) 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 on behalf of the Ultimate Beneficiaries.
72 (i) Previous year figures have been regrouped and reclassified wherever necessary to confirm current year classification
/ presentation.
(ii) Figures representing 0.00 Lakhs are below H 500.
As per our report of even date For and on behalf of the Board of Directors
For Khandelwal Jain & Co. Anant Nahata Subhash Chander Rustgi
Chartered Accountants Managing Director Cum CEO Director
Firm Registration No. 105049W DIN:02216037 DIN:06922968
Place: Gurugram Place: Gurugram
Date: May 23, 2025 Date: May 23, 2025
Ravi Dakliya Sangeeta Karnatak Shiraz Khanna
Partner Company Secretary Chief Financial Officer
Membership No. 304534 M.No. 25216 PAN: AEZPK3682F
Place: Gurugram Place: Gurugram Place: Gurugram
Date: May 23, 2025 Date: May 23, 2025 Date: May 23, 2025
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