(xii) Provision for E-waste/Plastic-waste
Provision for E-waste/Plastic-waste management cost are
recognized when the liability in respect of product sold
to customer is established in accordance with E-waste
Management Rules, 2022 as notified by Government of
India. Initial recognization is based on liability computed
based on Extended Producer Responsibility as Promulgated
in said Rules including cost to comply the said regulation.
(xiii) Impairment - non-financial assets
At each reporting date, the Company reviews the carrying
amounts of its non-financial assets to determine whether
there is any indication of impairment. If any such indication
of impairment exists, then the asset's recoverable
amount is estimated. For impairment testing, assets are
grouped together into the smallest group of assets that
generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets or cash
generating units (CGUs).
The recoverable amount of an asset or CGU is the greater
of its value in use and its fair value less costs to sell.
Value in use is based on the estimated future cash flows,
discounted to their present value using a discount rate
that reflects current market assessments of the time value
of money and the risks specific to the asset or CGU. An
impairment loss is recognised if the carrying amount of an
asset or CGU exceeds its estimated recoverable amount.
Impairment losses are recognised in the Statement of
Profit and Loss.
An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount.
Such a reversal is made only to the extent that the asset's
carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.
(xiv) Employee benefits
i) Short-term benefits
Short term employee benefit obligations are measured
on an undiscounted basis and are expensed as the
related services are provided. A liability is recognised
for the amount expected to be paid e.g. under short¬
term cash bonus, if the Company has a present legal
or constructive obligation to pay this amount as a
result of past service provided by the employee, and
the amount of obligation can be estimated reliably.
Post-employment benefit plans
ii) Defined contribution plans
The defined contribution plan is a post-employment
benefit plan under which an entity pays fixed
contributions into a separate entity and will
have no legal and constructive obligation to pay
further amounts.
Provident fund and Employee State Insurance: The
Company makes specified monthly contributions
towards Government administered Provident fund
(other than Company managed fund) and Employee
State Insurance scheme in respect of certain
employees. Obligations for contributions to defined
contribution plans are recognised as an employee
benefit expense in Statement of Profit and Loss in
the periods during which the related services are
rendered by employees.
Superannuation Fund : Contributions are made
to a scheme administered by the Life Insurance
Corporation of India to discharge superannuating
liabilities to the employees, a defined contribution
plan, and the same is expensed to the Statement of
Profit and Loss. The Company has no liability other
than its annual contribution.
iii) Defined benefit plans
A defined benefit plan is a post-employment benefit
plan other than a defined contribution plan. The
Company's net obligation in respect of defined
benefit plans is calculated by estimating the amount
of future benefit that employees have earned in the
current and prior periods, discounting that amount
and deducting the fair value of any plan assets.
Provident Fund
Retirement benefit in the form of Provident Fund is a
defined contribution scheme. The Company has no
obligation, other than the contribution payable to the
fund. The Company recognizes contribution payable
through provident fund scheme as an expense,
when an employee renders the related services.
If the contribution payable to scheme for service
received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the
scheme is recognised as liability after deducting the
contribution already paid. If the contribution already
paid exceeds the contribution due for services
received before the balance sheet date, then excess
is recognised as an asset to the extent that the
prepayment will lead to, for example, a reduction in
future payment or a cash refund.
Gratuity
The Company provides for gratuity, a defined
benefit plan (the Gratuity Plan), covering all eligible
employees in accordance with the payment of
Gratuity Act, 1972, the Gratuity plan provides a lump
sum payment to vested employees on retirement,
death, incapacitation or termination of employment.
These are funded by the Company and are
managed by LIC.
The calculation of defined benefit obligation is
performed annually by a qualified actuary using the
projected unit credit method. When the calculation
results in a potential asset for the Company, the
recognised asset is limited to the present value
of economic benefits available in the form of any
future refunds from the plan or reductions in future
contributions to the plan (‘the asset ceiling’). In
order to calculate the present value of economic
benefits, consideration is given to any minimum
funding requirements.
The obligation is measured at the present value of
estimated future cash flows. The discount rate used
for determining the present value of obligation under
defined benefit plans, is based on the market yields
on Government securities as at the balance sheet
date, having maturity periods approximating to the
terms of related obligations.
Remeasurements of the net defined benefit liability,
which comprise actuarial gains and losses, the
return on plan assets (excluding interest) and the
effect of the asset ceiling (if any, excluding interest),
are recognised in other comprehensive income.
The Company determines the net interest expense
(income) on the net defined benefit liability (asset)
for the period by applying the discount rate used
to measure the defined benefit obligation at the
beginning of the annual period to the then-net
defined benefit liability (asset), taking into account
any changes in the net defined benefit liability
(asset) during the period as a result of contributions
and benefit payments. Net interest expense and
other expenses related to defined benefit plans are
recognised in Statement of Profit and Loss.
When the benefits of a plan are changed or when a
plan is curtailed, the resulting change in benefit that
relates to past service ( 'past service cost' or ‘past
service gain') or the gain or loss on curtailment is
recognised immediately in the Statement of Profit
and Loss. The Company recognises gains and losses
on the settlement of a defined benefit plan when the
settlement occurs.
iv) Other long-term employee benefits
The Company's net obligation in respect of long¬
term employee benefits other than post-employment
benefits is the amount of future benefit that
employees have earned in return for their service
in the current and prior periods; that benefit is
discounted to determine its present value. The
obligation is measured on the basis of an annual
independent actuarial valuation using the projected
unit credit method. Remeasurements gains or losses
are recognised in the Statement of Profit and Loss in
the period in which it arises.
v) Share based payment
Employees of the Company receive remuneration
in the form of stock options (ESOP) as share
based payment transactions under the Company’s
Employee Stock Option Plan. These are equity
settled share-based payment transactions.
The cost of equity settled transactions is determined
based on the fair value at the date when the grant is
made using an appropriate valuation model.
That cost is recognised, together with a corresponding
increase in share-based payment reserves in equity,
over the period in which the service conditions are
fulfilled in employee benefits expense. The cumulative
expense recognised for equity settled transaction at
each reporting date until the vesting date reflects the
extent to which the vesting period has expired and
the Company’s best estimate of the number of equity
instruments that will ultimately vest. The statement
of profit and loss expense or credit for a period
represents the movement in cumulative expense
recognised as at the beginning and end of that period
and is recognised in employee benefits expense.
No expense is recognised for awards that do
not ultimately vest because service conditions
have not been met.
The dilutive effect of outstanding options is reflected
as additional share dilution in the computation of
diluted earnings per share.
(xv) Provisions and contingent liabilities
Provisions
Provisions are recognised when the Company has a
present legal or constructive obligation as a result of a
past events, 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.
If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects
current market assessments of the time value of money
and the risks specific to the liability. When discounting is
used, the increase in the provision due to the passage of
time is recognised as a finance cost.
Contingent liabilities
Contingent liabilities are possible obligations that arise
from past events and whose existence will only be
confirmed by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control
of the Company. Where it is not probable that an outflow
of economic benefits will be required, or the amount
cannot be estimated reliably, the obligation is disclosed
as a contingent liability, unless the probability of outflow of
economic benefits is remote.
(xvi) Revenue recognition
Sale of goods
Nature and timing of satisfaction of performance
obligations, including significant payment terms
Customers obtain control of goods when the goods are
delivered to and have been accepted at their premises.
Invoices are generated at the time of dispatch of goods.
Invoices are usually payable as per terms of contract or
mutually agreed. Some contracts permit the customer to
return an item. Returned goods are exchanged only for
new goods - i.e. no cash refunds are offered.
Revenue recognition
Revenue arising from the sale of goods is recognized when
the customer obtains control of the promised asset, i.e.
either at the delivery or dispatch of goods (based on the
agreed terms of sale with the respective customers), which
is the point in time when the customer has the ability to
direct the use of the goods and obtain substantially all of
the remaining benefits of the goods.
Revenue towards satisfaction of a performance obligation
is measured at the amount of transaction price (net of
variable consideration) allocated to that performance
obligation. The transaction price of goods sold is net of
variable consideration on account of various discounts and
schemes offered by the Company as part of the contract.
For contracts that allow the customers to avail the
discount, the Company estimates the value of discount
based on the terms of the scheme and past experience of
the Company. For contracts that permit the customer to
return an item, revenue is recognised to the extent that it is
highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur.
Sale of services
Nature and timing of satisfaction of performance
obligations, including significant payment terms
Customers obtain control of services when the services
are completed to the satisfaction of the Customer. Invoices
for services issued are usually payable as per terms of
contract or mutually agreed.
Revenue recognition
Revenue arising from the sale of services is recognized
at the point in time when the Company satisfies the
performance obligation and the services are completely
rendered to the customer.
Revenue towards satisfaction of a performance obligation is
measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation.
Contract balances
Trade receivables
A receivable represents the Company’s right to an amount
of consideration that is unconditional (i.e., only the passage
of time is required before payment of the consideration is
due). Refer to accounting policies of financial assets in 2.b
(iii)) Financial instruments.
Advances from customers (contract liability)
Advances from customers (contract liability) is the
obligation to transfer goods to a customer for which the
Company has received consideration (or an amount of
consideration is due) from the customer. If a customer
pays consideration before the Company transfers goods
to the customer, an advance from customer is recognised.
The Company recognises the advance from customer
for consideration received in respect of unsatisfied
performance obligations. The unaccrued amounts are
not recognised as revenue till all related performance
obligations are fulfilled. The transaction price received
in advance does not have any significant financing
component as the difference between the promised
consideration and the cash selling price of the goods
arises for reasons other than the provision of finance.
Interest income
Interest income or expense is recognised using the
effective interest rate method.
The effective interest rate is the rate that exactly discounts
estimated future cash receipts or payments through the
expected life of the financial instrument to the gross
carrying amount of the financial asset or amortised cost of
the financial liability.
In calculating interest income and expense, the effective
interest rate is applied to the gross carrying amount of
the asset (when the asset is not credit-impaired) or to the
amortised cost of the liability. However, for financial assets
that have become credit-impaired subsequent to initial
recognition, interest income is calculated by applying the
effective interest rate to the amortised cost of the financial
asset. If the asset is no longer credit-impaired, then the
calculation of interest income reverts to the gross basis.
(xvii) Government grants / assistance
Government grant / assistance in relation to export of
goods is recognized in the Statement of Profit and Loss
when there is reasonable assurance that the Company will
comply with the conditions attaching to it, and that the
grant/assistance will be received.
(xviii) Commission
The commission paid / payable on sales is recognised in
accordance with the terms of contracts with agents. As the
Company acts as a principal, the commission is recognised
as an expense in the Statement of Profit and Loss.
(xix) Borrowing costs
Borrowing costs attributable to the acquisition or
construction of a qualifying asset are capitalised as part
of the cost of the asset. A qualifying asset is one that
necessarily takes substantial period of time to get ready
for intended use. Other borrowing costs are recognised as
an expense in the period in which these are incurred.
(xx) Income tax
Income tax expense comprises of current tax and deferred
tax. It is recognised in the Statement of Profit and Loss
except to the extent that it relates to items recognised in
other comprehensive income or directly in equity.
Current tax
Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect
of previous years. The amount of current tax reflects the
best estimate of the tax amount expected to be paid or
received after considering the uncertainty, if any relating to
income taxes. It is measured using tax rates enacted at the
reporting date.
Current tax assets and current tax liabilities are offset
only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the asset
and settle the liability on a net basis.
Deferred tax
Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes.
Deferred tax is also recognised in respect of carried
forward tax losses and tax credits. Deferred tax is not
recognised for:
• temporary differences arising on the initial recognition
of assets or liabilities in a transaction that is not
a business combination and that affects neither
accounting nor taxable profit or loss at the time of
the transaction; and
• temporary differences related to investment in
subsidiary to the extent that the Company is able to
control the timing of the reversal of the temporary
differences and it is probable that they will not reverse
in the foreseeable future;
Deferred tax is measured at the tax rates that are expected
to apply to the period when the asset is realised or the
liability is settled, based on the laws that have been
enacted or substantively enacted by the reporting
date. The measurement of deferred tax reflects the tax
consequences that would follow from the manner in which
the Company expects, at the reporting date, to recover or
settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities
and assets, and these relate to income taxes levied by
the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax
liabilities and assets on a net basis or their tax assets and
liabilities will be realised simultaneously.
Deferred tax assets are recognised to the extent that it is
probable that future taxable profits will be available against
which these can be used. The existence of unused tax
losses is strong evidence that future taxable profit may not
be available. Therefore, in case of a history of recent losses,
the Company recognises a deferred tax asset only to the
extent that it has sufficient taxable temporary differences
or there is convincing evidence that sufficient taxable profit
will be available against which such deferred tax asset
can be realised. Deferred tax assets - unrecognised or
recognised, are reviewed at each reporting date and are
recognised/ reduced to the extent that it is probable/ no
longer probable respectively that the related tax benefit
will be realised.
Deferred tax assets and deferred tax liabilities are offset
only if there is a legally enforceable right to offset current
tax liabilities and assets levied by the same tax authorities.
(xxi) GST/ value added taxes paid on acquisition of
assets or on incurring expenses
Expenses and assets are recognised net of the amount of
GST/value added taxes paid, except:
- When the tax incurred on a purchase of assets
or services is not recoverable from the taxation
authority, in which case, the tax paid is recognised as
part of the cost of acquisition of the asset or as part
of the expense item, as applicable
- When receivables and payables are stated with the
amount of tax included.
The net amount of tax recoverable from, or payable to,
the taxation authority is included as part of receivables or
payables in the balance sheet.
(xxii) Earnings per share
The Company presents basic and diluted earnings per
share (EPS) data for its equity shares.
Basic earnings per share are calculated by dividing
the profit attributable to owners of the Company by the
weighted average number of equity shares outstanding
during the financial year.
Diluted EPS is determined by adjusting the figures used in
the determination of basic earnings per share to take into
account the after income tax effect of interest and other
financing costs associated with dilutive potential equity
shares, and the weighted average number of additional
equity shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.
(xxiii) Segment reporting
Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker is
considered to be the Board of Directors who makes strategic
decisions and is responsible for allocating resources and
assessing performance of the operating segments.
(xxiv) Dividend
Provision is made for the amount of any dividend
declared, being appropriately authorised and no longer at
the discretion of the Company, on or before the end of
the reporting period but not distributed at the end of the
reporting period.
Dividend is recognized when the Company’s right to
receive the payment is established, which is generally
when shareholders approve the dividend.
(xxv) Derivative financial instruments
The Company uses derivative financial instruments i.e.,
forward and futures currency contracts to hedge its foreign
currency risks. Such derivative financial instruments are
initially recognised at fair value on the date on which a
derivative contract is entered into and are subsequently re¬
measured at fair value. Derivatives are carried as financial
assets when the fair value is positive and as financial
liabilities when the fair value is negative. Any gains or
losses arising from changes in the fair value of derivatives
are taken directly to statement of profit and loss. The
Company has not applied hedge accounting.
(xxvi) Equity share capital
Equity shares are classified as equity. Incremental
costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax,
from the proceeds.
(xxvii) Recent accounting pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time.
In May 2025, MCA notified amendments to Ind AS 21
- The Effects of Changes in Foreign Exchange Rates,
applicable w.e.f. April 1, 2025. The Company has
reviewed the amendment and based on its evaluation has
determined that it does not have any significant impact in
its financial statements.
In August 2025, MCA notified the following amendments to:
1. Ind AS 1, Presentation of Financial Statements,
applicable w.e.f. April 1, 2025 - The amendment
relates to classification of liabilities as current or non¬
current and non-current liabilities with covenants.
In the context of classifying a liability as current, it
removes the requirement of existence of a right to defer
settlement for at least 12 months after the reporting
date and instead requires that the said right should
exist on the reporting date and have substance. The
amendment also introduces guidance on classification
of liabilities with covenants. The Company has no
impact of these amendments in its classification
criteria of current and non-current liabilities.
2. Ind AS 7, Statement of Cash Flows and Ind AS
107, Financial Instruments: Disclosures, applicable
w.e.f. April 1, 2025 - The amendment in Ind AS 7
requires to inform users of financial statements of
the existence of supplier finance arrangements and
explain the nature of the arrangements, the carrying
amount of liabilities and the range of payment due
dates. Ind AS 107 has been amended to add supplier
finance arrangements as a factor that may cause
concentration of liquidity risk. The Company has
reviewed the amendment and based on its evaluation
has determined that it does not have any significant
impact in its financial statements.
3. Ind AS 12, International Tax Reform - Pillar Two Model
Rules applicable immediately - The amendments
provide a temporary mandatory relief from deferred
tax accounting for top-up tax and disclose that they
have applied the relief. This relief is immediate and
applies retrospectively. The Company has reviewed
the amendment and based on its evaluation has
determined that it does not have any significant
impact in its financial statements
d. Terms / rights attached to equity shares
The Company has only one class of equity share. The par value of the shares is Rs. 2 per share. Each holder of the equity share is
entitled to one vote per share and is entitled to dividend, declared if any. The paid up equity shares of the Company rank pari-pasu in
all respects, including dividend. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders
in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of the equity shares will be entitled to
receive the remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion
to the number of equity shares held by the shareholders.
e. The company has neither issued, allotted any share for consideration other than cash, nor has issued bonus shares during the
period of five years immediately preceding the balance sheet date. Further no shares have been reserved for issue under contract /
commitments for sale of shares / disinvestment by the company.
General reserve are free reserves of the Company which are kept aside out of the Company's profits to meet the future
requirements as and when they arise. The Company had transferred a portion of the profit after tax to general reserve
pursuant to the earlier provisions of the Companies Act, 1956.
a. Provision for litigation and related disputes includes estimates made mainly for probable claims arising out of litigations /
disputes pending with sales tax authorities and other creditors. The probability and the timing of the outflow with regard to
these matters depends on the ultimate settlement / conclusion with the relevant parties.
b. Product warranty and return costs are determined using reasonable estimates based on costs incurred in the past and are
provided for in the year sale is made. These include free replacements, breakages, returns etc. in respect of sewing machines
and domestic appliances. The Company expects to incur the related expenditure over the next year.
c. Provision for E-waste/Plastic-waste management cost are recognized when the liability in respect of product sold to customer
is established in accordance with E-waste Management Rules, 2022 as notified by Government of India. Initial recognization is
based on liability computed based on Extended Producer Responsibility as Promulgated in said Rules including cost to comply
the said regulation.
Sensitivity analysis for key assumptions used:
If expected cost differ by 10% from management’s estimate, while holding all other assumptions constant, the provision for warranty
and other cost may increase/ decrease by Rs. 72.13 (31 March 2025: Rs. 56.11).
** Investment in Brand Trading (India) Pvt Ltd is valued at FVTPL.
* The carrying amounts of trade receivables, trade payables, lease liability, cash and cash equivalents, bank balances other than cash and cash
equivalents and other current financial assets and other current financial liabilities, approximates the fair values, due to their short-term nature.
The other non-current financial assets represents bank deposits pledged as securities with government authorities, the
carrying value of which approximates the fair values as on the reporting date.
There has been no transfers between Level 1, Level 2 and Level 3 for the year ended 31 March 2026 and 31 March 2025.
Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
Valuation processes
The finance department of the Company includes a team that performs the valuations of financial assets and liabilities
required for financial reporting purposes, including level 3 fair values. This team reports directly to the Senior Management.
Discussions on valuation and results are held between the Senior Management and valuation team atleast once every
quarter in line with the Company's quarterly reporting periods.
Quantitative information about the significant unobservable inputs used in Level 3 fair value measurements are as below:
Method - Replacement cost method
Significant unobservable input - Interest rate of the Deposits
Sensitivity - A change of 100 basis points would increase/decrease the fair value by Rs. 2.36 lakhs
Financial risk management
The Company’s principal financial liabilities comprise trade, other payables and lease liabilities. The main purpose of these
financial liabilities is to provide finance to the Company to support its operations. The Company’s principal financial assets
include security deposits, loans, trade and other receivables, and cash and cash equivalents including bank deposits that
are derived directly from its operations.
b. The Company has exposure to the following risks arising from financial instruments:
• Credit risk ;
• Liquidity risk ;
• Market Risk - Interest rate ; and
• Market Risk - Foreign currency
28 Fair value measurement and financial instruments (Contd..)
Risk management framework
The Board of Directors of the Company is responsible for framing, implementing and monitoring the risk management plan for
the Company. It is responsible for reviewing the risk management policy and ensuring its effectiveness.
The Company's risk management policy is established to identify and analyse the risks faced by the Company to set appropriate
risks limits and controls and to monitor risks and adherence to limits. Risk management policy is reviewed regularly to reflect
changes in market conditions and the Company's activities.
The Board of Directors of the Company oversee how management monitors compliance with Company's risk management
policy and procedures and reviews the adequacy of the risk management framework in relation to the risk faced by the Company.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations.
Credit risk on cash and cash equivalents, bank deposits (included in other financial assets) and other bank balances is
limited as the Company generally invests in deposits with banks with high credit ratings assigned by domestic credit
rating agencies. The loans primarily represents security deposits given to lessor for lease of office and other commercial
premises. Such deposit will be returned to the Company on vacation of these premises. The credit risk associated with
such deposits is relatively low.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are
typically unsecured and are derived from revenue earned from customers primarily located in India and certain parts of
South Asia. The Company does monitor the economic environment in which it operates. The Company manages its credit
risk through credit approvals, establishing credit limits and continuously monitoring credit worthiness of customers to
which the Company grants credit terms in the normal course of business.
The Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision
matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account
available internal credit risk factors such as the Company's historical experience for customers. Based on the business
environment in which the Company operates, management considers that the trade receivables are in default (credit
impaired) if the payments are more than 90 days past due. However, the Company based upon past trends, determine an
impairment allowance for loss on receivables outstanding for more than 360 days past due.
Majority of trade receivables are from domestic customers, which are fragmented and are not concentrated to individual
customers. Trade receivables as at year end consists Rs. 2,402.29 (31 March 2025: Rs. 2,940.71) relating to revenue
generated from sewing machines and related accessories and Rs. 1,457.13 (31 March 2025: Rs. 1,523.80) relating to
revenue generated from domestic appliances business.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial assets. The Company's approach to manage liquidity is to
have sufficient liquidity to meet it's liabilities when they are due, under both normal and stressed circumstances, without
incurring unacceptable losses or risking damage to the Company's reputation.
The Company believes that its liquidity position, including total cash (including margin deposits, excluding bank deposits
under lien, interest accrued but not due and unpaid dividend) of Rs. 8,316.58 as at 31 March 2026 (31 March 2025:
Rs. 6,193.75) anticipated future internally generated funds from operations, and its fully available, revolving undrawn
credit facility of Rs. 2,950.00 (31 March 2025: Rs. 2,500.00) will enable it to meet its future known obligations in the
ordinary course of business. However, if a liquidity needs were to arise, the Company believes it has access to financing
arrangements, value of unencumbered assets, which should enable it to meet its ongoing capital, operating, and other
liquidity requirements. The Company will continue to consider various borrowing or leasing options to maximize liquidity
and supplement cash requirements as necessary.
The Company's liquidity management process as monitored by management, includes the following:
- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.
- Maintaining rolling forecasts of the Company’s liquidity position on the basis of expected cash flows.
- Maintaining diversified credit lines.
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 prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such
as equity price risk. Financial instruments affected by market risks include deposits, investments and foreign currency
receivables and payables. The sensitivity analysis in the following sections relate to the position as at 31 March 2026 and
31 March 2025. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity,
pension obligation and other post-retirement obligations; provisions; and the non-financial assets and liabilities. The
sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is
based on the financial assets and financial liabilities held as of 31 March 2026 and 31 March 2025.
A. Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the
Company’s borrowings with floating interest rates.
28 Fair value measurement and financial instruments (Contd..)
Exposure to interest rate risk
The Company’s interest rate risk arises majorly from the borrowings carrying floating rate of interest. These obligations
exposes the Company to cash flow interest rate risk. The exposure of the Company’s borrowing to interest rate
changes as reported to the management at the end of the reporting period are as follows:
B. Currency risk
Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign
exchange rates. The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange
rates on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuations between
the functional currency and other currencies from the Company's operating, investing and financing activities.
Exposure to foreign currency risk
The summary of quantitative data about the Company's exposure to currency risk in USD, as expressed in Indian
Rupees, as at 31 March 2026 and 31 March 2025 are as below:
28 Fair value measurement and financial instruments (Contd..)
Sensitivity analysis
A reasonably possible strengthening (weakening) of the Indian Rupee against below currencies at 31 March 2026
and 31 March 2025 would have affected the measurement of financial instruments denominated in foreign currency
and affected Statement of Profit and Loss by the amounts shown below. This analysis is performed on foreign
currency denominated monetary financial assets and financial liabilities outstanding as at the year end. This analysis
assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast
sales and purchases.
29 Capital Management
The primary objective of the management of the Company’s capital structure is to maintain an efficient mix of debt and equity in
order to achieve a low cost of capital, while taking into account the desirability of retaining financial flexibility to pursue business
opportunities and adequate access to liquidity to mitigate the effect of unforeseen events on cash flows. Management also monitors
the return on equity.
The Board of directors regularly review the Company’s capital structure in light of the economic conditions, business strategies and
future commitments.
For the purpose of the Company’s capital management, capital includes issued share capital, securities premium and all other equity
reserves. Debt includes cash credit facilities, working capital demand loan and term loan from banks.
During the financial year ended 31 March 2026, no significant changes were made in the objectives, policies or processes relating
to the management of the Company’s capital structure.
30 (a) Employee stock option plan
The shareholders of the Company had approved ‘Singer India - Employee Stock Option Plan 2023 ("ESOP 2023")’ through
Postal Ballot dated May 28, 2023 by way of special resolution. The plan envisaged grant of stock options to eligible
employees at an exercise price as may be decided by the Nomination and Remuneration Committee. The Company has
constituted a Nomination and Remuneration Committee ('NRC') to administer and governing the scheme.
Employees of the Compnay are eligible for being granted Options under the Plan. The specific Employees to whom the
Option would be granted, and their Eligibility Criteria shall be determined by the NRC. The Plan shall be applicable to the
Company and Options may be granted to the Employees of the Company, as determined by the NRC at its sole discretion.
The Share-based payment plan is equity-settled. Details of the plan and an analysis of the total charge by type of award
is set out below.
Under the Plan, upto 3,600,000 stock options can be issued to eligible employees of the Company, including any Director
of the Company, whether whole time or otherwise excluding the Independent Directors. Each option, upon vesting, shall
entitle the holder to acquire one equity share of Rs. 2 each fully paid up. The options granted will vest gradually over a
period not earlier than one year and not later than four years from the date of Grant of such Options.
31 Contingent liabilities (to the extent not provided for)
The Company is a party to various indirect taxation disputes and legal claims, which are not acknowledged as debts as detailed
below. Significant management judgement is required to ascertain that it is not probable that an outflow of resources embodying
economic benefits will be required to settle the taxation disputes and legal claims.
The Company is in legal proceedings for various disputed legal matters related to various creditors, ex-employees, Value Added Tax
(VAT) and other commercial matters that arise from time to time in the ordinary course of business. The amounts involved in these
proceedings, not acknowledged as debt, are:-
The Company believes, based on advice from counsels/experts, that the views taken by authorities are not sustainable and
accordingly no provision is required to be recorded in the books of account.
Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if
any, in respect of the above as it is determinable only on receipt of judgements / decisions pending with various forums/ authorities.
Accordingly, the above mentioned contingent liabilities are disclosed at undiscounted amount.
33 Employee benefits
The Company contributes to the following post-employment benefit plans in India.
Defined contribution plan
(a) The Company pays Employees Provident Fund contributions to the appropriate government authorities at rate specified as
per regulations.
An amount of Rs. 217.27 (31 March 2025: Rs. 186.61) has been recognised as an expense in respect of the Company’s
contribution to Provident Fund deposited with the relevant authorities and has been shown under Employee benefits expense
in the Statement of Profit and Loss.
(b) The Company pays Employees State Insurance contributions to the appropriate government authorities at rate specified as
per regulations.
An amount of Rs. 5.08 (31 March 2025: Rs. 5.78) has been recognised as an expense in respect of the Company’s contribution
to Employees State Insurance deposited with the relevant authorities and has been shown under Employee benefits expense
in the Statement of Profit and Loss.
(c) The Company pays Super Annuation Fund contributions to Life Insurance Corporation of India the appropriate government
authorities at rate specified as per regulations.
An amount of Rs. 8.71 (31 March 2025: Rs. 9.26) has been recognised as an expense in respect of the Company’s contribution
to Super Annuation Fund deposited with the relevant authorities and has been shown under Employee benefits expense in the
Statement of Profit and Loss.
Defined benefit plan
Provident fund and other fund
The company makes provident and other funds to defined contribution plan for eligible employees. Under the scheme, the company
is required to contribute a specified percentage of the payroll costs. The Company has no obligation, other than the contribution
payable to the fund. The Company recognises contribution payable to the provident fund scheme as an expense, when an employee
renderes the related service.
Gratuity
The Company makes annual contribution to a gratuity fund administered by trustees and managed by Life Insurance Corporation
of India (LIC). Every employee is entitled to the benefit equivalent to 15 days of total gross salary last drawn for each completed
year of service. Gratuity is payable to all eligible employees of the Company on retirement or separation or death or permanent
disablement in terms of the provisions of the Payment of Gratuity Act. The Company accounts its liability for future gratuity benefits
based on actuarial valuation, as at balance sheet date, using the projected unit credit method. Liability for employee benefit has
been determined by an actuary in conformity with the principles set out in the Indian Accounting Standard 19, the details of which
are as hereunder.
The sensitivity analysis are based on a change in above assumption while holding all other assumptions constant. The changes
in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant
actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit
credit method at the end of the reporting year) has been applied, as has been applied when calculating the provision for defined
benefit plan recognised in the Balance Sheet.
The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous years.
Risk exposure:
The defined benefit plan is exposed to a number of risks, the most significant of which are detailed below:
a. Investment risk:
The present value of the defined benefit obligation is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting period on government bonds.
b. Interest rate risk:
A decrease in bond interest rate will increase the plan liability.
c. Longevity risk:
The present value of the defined plan liability is calculated by reference to the best estimate of the mortality of plan
participants. An increase in the life expectancy will increase the plan's liability.
d. Salary risk:
Higher than expected increase in salary will increase the defined benefit obligation.
34 Segment reporting
A. Basis for Segment reporting
Factors used to identify the entity’s reportable segments, including the basis of organisation
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker (CODM). The CODM is considered to be the Board of Directors who makes strategic decisions and is responsible for
allocating resources and assessing performance of the operating segments.
The principal activities of the Company comprises selling of sewing machines, related accessories and domestic appliances.
Accordingly, the Company has two reportable segments as follows:
• Sewing machines and related accessories
• Domestic appliances
Segment revenue and expenses:
Segment revenue and expenses represents revenue and expenses that are either directly attributed to individual segments or
are attributed to individual segments on a reasonable basis. The remainder of the revenue and expenses are categorized as
unallocated which mainly comprises finance costs and other operating expenses and certain other income since the underlying
assets/liabilities/services are used interchangeably. The Company believes that it is not practical to provide segment disclosures
relating to these unallocated revenue and expenses, and accordingly these are separately disclosed as “unallocated”.
Segment assets and liabilities:
Segment assets includes all operating assets used by a segment which are directly attributed to individual segments or are
attributed to individual segments on a reasonable basis. Segment liabilities include all operating liabilities which are directly
attributed to individual segments or are attributed to individual segments on a reasonable basis. The remainder of assets and
liabilities are categorized as unallocated, since the Company believes that it is not practical to allocate the same over reportable
segments on a reasonable basis.
35 Related party disclosures (Contd..)
d. Terms and Conditions
All transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions and
within the ordinary course of business. Outstanding balances at the year end are unsecured and settlement occurs in cash.
Transactions relating to dividend are on the same terms and conditions that are offered to other shareholders. There have been
no guarantees provided or received for any related party receivables or payables. This assessment is undertaken each financial
period through examining the financial position of the related party and the market in which the related party operates.
B. Events after the reporting period
a. The Company has evaluated all the subsequent events through 27 May 2026, which is the date on which these financial
statements were issued, and no events have occurred from the balance sheet date through that date except for matters
that have already been considered in the financial statements.
b. Dividend
Dividend declared by the Company is based on profits available for distribution. On 27 May 2026, the Board of Directors
of the Company have proposed a final dividend of Rs.0.40 per equity share (face value of Rs. 2 per equity share) for the
year ended 31 March 2026 subject to the approval of shareholders at the upcoming Annual General Meeting.
39 Corporate social responsibility
Under Section 135 of the Companies Act, 2013, the Company is required to spend, in every financial year, atleast 2% of the average
net profits of the Company made during the three immediately preceding financial years on Corporate Social Responsibility (CSR),
pursuant to its policy in this regard.
40 The Company has a comprehensive system of maintenance of information and documents that are required by the transfer
pricing legislation under section 92-92F of the Income Tax Act, 1961. The management is of the opinion that its international
transactions, if any, with the associated enterprises are at arm’s length so that the aforesaid legislation will not have any impact on
the financial statements, particularly on the amount of tax expense and that of provision for taxation.
41 On November 21, 2025, the Government of India notified the four Labour Codes - 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
- consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable
assessment of the financial impact due to changes in regulations.
The Company has assessed and disclosed the incremental impact of these changes in line with the guidance provided by the
Institute of Chartered Accountants of India. Considering the materiality and regulatory driven, non recurring nature of this impact, the
Company has presented such incremental impact as Statutory impact of new Labour Codes under Exceptional Items.
The incremental impact consisting of gratuity of Rs 50.09 lakhs and compensated absences of Rs.23.01 lakhs primarily arises
due to change in wage definition. 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.
42 The Bureau of India Standard (""BIS"") certification marked license number CM/L - 41000049170 ('License') as per IS 15449:
Part 1: 2004 granted to a vendor that supplies a sub category of mechanical household Zig-Zag machines which was cancelled by
the BIS w.e.f. 8 August 2023 by serving a notice dated 14 August 2023. This affected the Company's ability to import mechanical
household Zig-Zag sewing machines. The BIS, through its committee comprising industry representatives, has revised the applicable
standards and notified the Gazette and that the Company’s future imports of Zig Zag sewing machines will be brought under the
scope of the revised standards. The Company filed a writ petition with the Delhi High Court on 10 November 2023 to stay/quash
the order cum notice of cancellation of the License/setting aside the IS 15449: Part 1: 2004 and passing of appropriate directions
to amend the prevailing regulations in line with the updated technological norms. In view of the notification of the revised standard
and based on the management assessment, the Company decided to withdraw its writ petition. Accordingly, the Hon'ble Delhi High
Court, vide its order dated 22 January 2026, permitted withdrawal of the petition and dismissed the matter as withdrawn.
42 (Contd..)
In the meantime earlier, the Company sought a No Objection Certificate (“NOC”) dated 18 October 2023 from the Ministry of
Commerce & Industry to import such Zig-Zag machines without a BIS mark in order to maintain its supply of goods. This NOC
expired on 17 January 2024 and the Company obtained the NOC for a further extended period of three months w.e.f. 14 February
2024 which expired on 13 May 2024. During this period, the Company had continued to import such Zig- Zag machines without a
BIS mark. The Company applied for another NOC on 12 August 2024 and obtained it on 14th November 2024, valid for period of
three months which expired on 13th February 2025, The Company has applied for NOC on 12 September 2025, 23 October 2025
and 05 December 2025 and obtained it on 19 September 2025, 03 November 2025 and 11 December 2025 respectively. All of these
NOCs are expired on 12 February 2026.
The BIS license marked license number CM/L - 9700010710 ('License') as per IS 15449: Part 1: 2004 issued to the Company’s own
factory situated at Jammu to manufacture household Zig-Zag machines, Consequent upon the revision of IS15449: Part1:2004 as
IS15449 : PART 1:2024, license has been revised effective 6th November 2025 as per license endorsement no 11, dated 7 November
2025 issued by BIS. Additionally, pursuant to the amendments executed as of 12 November 2025 to the existing Trademark License
Agreements with the Trademark Licensor, the Company has obtained the right to manufacture and / or outsource zig-zag sewing
machines to be sold in India, under the Singer & Merritt Brands, and available only the to Licensor for export to and other Country
Worldwide, in accordance with the agreed Royalty fees and the terms of the agreements.
43 Additional information:
(i) No proceeding has been initiated or pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(ii) The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender.
(iii) There are no transaction which has been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961.
(iv) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.-
(v) The Company is not part of any group (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016).
(vi) There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with
the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”)
by or on behalf of the Company or
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
43 Additional information: (Contd..)
(vii) There are no funds which have been received by the Company from any persons or entities, including foreign entities (“Funding
Parties”), 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 (“Ultimate Beneficiaries”)
by or on behalf of the Funding Party or
b) provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
(viii) The Company has not traded or invested in crypto currency or visual currency during the year.
(ix) The Company does not have any subsidiary, hence clause (87) of section 2 of the Act read with Companies (Restriction on
number of layers) Rules, 2017 is not applicable to the Company.
(x) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.
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