1.18. Provisions:
Provisions are recognized when, as a result of past event, the Company has a legal or constructive obligation; it is
probable that an outflow of resources will be required to in respect of which a reliable estimate can be made. Provisions
are not discounted to their present value and are determined based on best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.
1.19. Contingent Liabilities:
Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events beyond the control of
the company or a present obligation that arises from past events where it is not probable that an outflow of resources will
be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that
cannot be recognised because it cannot be measured reliably.
1.20. Claims:
Claims against the Company not acknowledged as debts are disclosed after a careful evaluation of the facts and legal
aspects ofthe matter involved.
1.21. Offsetting:
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only
when, the Company currently has a legally enforceable right to set off the amounts and intends either to settle them on a
net basis or to realise the asset and settle the liability simultaneously.
1.22. Earnings per share:
The Company presents basic and diluted earnings per share (‘EPS”) data for its ordinary shares. Basic EPS is calculated
by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of
ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to
ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive
potential ordinary shares.
1.23. Cash flow statement:
Cash flows are reported using the Indirect method. Whereby profit for the period is adjusted for effects of transactions of
a non-cash nature. Any deferrals are accruals of past or future operating cash receipts or payments and item of Income or
expenses associated with investing or financing cash flows. The cash flows from operating investing and financing
activities ofthe company are segregated.
1.24. Segment Reporting:
The operations ofthe company are related to one segment i.e Hydraulic equipment.
1.25. Events after Reporting date:
Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the
reporting period., the impact of such events is adjusted within the financial statements. Otherwise, events after the
Balance Sheet date ofmaterial size ornature are only disclosed.
1.26. Recent Accounting Pronouncements:
Standards issued but not yet effective:
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. For the year ended March 31,2025, MCA
has not notified any new standards or amendments to the existing standards applicable to the Company.
1.27. Critical Accounting Estimates and Judgments:
The preparation of financial statements is in conformity with generally accepted accounting principles which require
management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure of
contingent liabilities at the date of the financial statements and the result of operations during the reporting period.
Although these estimates are based upon management’s best knowledge of current events and actions, actual results
could differ from these estimates. Revisions in accounting estimates are recognized prospectively.
The areas involving critical estimates or judgments are:
Estimates ofuseful life ofproperty, plant and equipment and intangibles
Measurement of defined benefit obligation
Recognition of deferred taxes
Estimation of impairment
Estimation ofprovision and contingent liabilities
c) Performance obligation:
All sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically
upon dispatch/ delivery. The Company does not have any remaining performance obligation for sale of goods or rendering of
services which remains unsatisfied as at March 31,2025 and March 31,2024.
d) Disaggregation of revenue:
Refer Note 54 for disaggregated revenue information. The management determines that the segment information reported is
sufficient to meet the disclosure objective with respect to disaggregation of revenue under Ind AS 115 "Revenue from contract
with customers".
Financial Risk Management:
The Company's activities expose it to market risk, credit risk and liquidity risk. Company's overall risk management
focus on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial
performance.
I. Market Risk
Market risk is the risk of loss of the future earnings, fair values or future cash flows that may result from a change in the
price of a financial instruments. The value of a financial instrument may change as a result of changes in the interest
rates. Foreign currency exchange rates, commodity prices and other market changes that affect market risk sensitive
instruments. Market risk is attributable to all market risk sentive financial instruments including innstruments and
deposits, foreign currency receivables, payable and borrowings.
II. Commodity Risk
Commodity price risk arises due to fluctuation in raw material (fifer prices) linked to various external factors, which can
affect the production cost of the Company. The Company actively manages inventory and un may cases sale prices are
linked to major raw material prices. These risks are reviewed and managed by senior management on continuous basis.
III. Credit Risk:
Credit risk arises when a customer or counterparty does not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk its operating activities (primarily trade
receivables) and from its financing / investing activities including deposits with banks. The company has a prudent and
conservative process for managing its credit risk arising in the course of its business activities. The company is
receiving paymnents regularly from its customers and hence the Company has no significant credit risk.
IV. Liquidity Risk
Liquidity risk is defined as the risk that the company will not be able to settle or meet obligations on time or at reasonable
price. Prudent liquidity risk management implies maintining sufficient cash and karketable securities and the
availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company's
treasury team is responsible for liquidity, funding as well as settlement management. In addition, processess and
policies related to such risks are overseen by senior management. Management monitors the Company's liquidity
position through rolling forecasts based on expected cash flows.
V. Technology Risk
The Company operates in a highly technical field with constant innovation and continuous evolution in technologies
used. The company mitigates this risk through regular contact with customers, regular reviews of new technological
trends, continuous improvement and investment in its manufacturing practices, along with investments in research,
design, and development.
Title deeds ofimmovable properties:
The title deeds of all the immovable properties, as disclosed in note no.2 to the financial statements, are held in the name
of the Company.
NOTE NO. 39
Valuation of Property Plant & Equipment, intangible asset:
The Company has not revalued its property, plant and equipment or intangible assets or both during the current year.
NOTE NO. 40
Loans or advances to specified persons:
No loans or advances in the nature of loans are granted to Promoters, Directors, Key Management Personnels and the
related parties(as defined under Companies Act,1913) either severally or jointly with any other person, that are
repayable on demand or without specfying any terms or period ofrepayment.
NOTE NO. 41
Details of benami property held:
No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act,1988 (45 of 1988) andrules made thereunder.
NOTE NO. 42
Borrowing secured against current assets:
The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of
current assets filed by the Company with banks are in agreement with the books of accounts.
NOTE NO. 43
Wilful defaulter:
The Company has not been declared wilful defaulter by any bank or financial institution or other lender.
NOTE NO. 44
Relatonship with struck off Companies:
The Company has no transactions with the Companies struck off under Section 248 of the Companies Act, 2013 or
Section 560 ofthe Companies Act, 1956
Compliance with number of layers of companies:
The Company has complied with the number of layers prescribed under the Section 2 (87) of the Companies Act, 2013
read with Companies (Restriction on number of layers) Rules, 2017.
NOTE NO. 47
Compliance with approved scheme(s) of arrangements:
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.
NOTE NO. 48
Utilisation of borrowed funds and share premium:
No funds 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 person or entity including foreign entities ("Intermediaries") with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by
or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party (Funding
Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or
entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like onbehalfofthe Ultimate Beneficiaries.
NOTE NO. 49
Undisclosed income:
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under
the Income Tax Act, 1961, that has not been recorded previously in the books of account.
Segment information
The Company deals in only one business segment of manufacturing and sale of Hydraulics products and the Chief
Operating Decision Maker (CODM) reviews the operations of the Company as a whole, hence there is no reportable
segments as per Ind AS 108 “Operating Segments”. The management considers that the various goods provided by the
Company constitutes single business segment, since the risk and rewards from these products are not different from one
another. However the Company has disclosed the following geographical information as follows:
*Other than financial assets, deferred tax assets, Income Tax Asset
c) Information about major customers
There is 1 customer who individually contribute more than 10 percent ofthe entity’s revenue.
Note No.55
Subsequent Events
The Board ofDirectors in their meeting held on 30th May 2025 have proposed a final dividend ofRs.8.50 per equity
share for the year ended 31st March 2025 which is subject to the approval of shareholder at the ensuing Annual General
Meeting and if approved, would result in a cash outflow of approximately Rs. 382.50 lakhs.
Note No. 56
Previous Year's figures have been regrouped wherever necessary to correspond with the current year's figures, except
when otherwise stated, the figures are presented in Rs. lakhs.
As per our report of even date For and on behalf of Board of Directors
for BRAHMAYYA & CO
Chartered Accountants
Firm Regn. No. 000513S
Shravan. K Srinivas VG U. Sri Krishna
Partner Director ED & CEO
Membership No. 215798 DIN:00181826 DIN:008880274
Place:Hyderabad K.Ramyanka Yadav G.SubbaRao
Date : 30-05-2025 CS&CO CFO
Membership No.A45483
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