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అకౌంట్స్ గమనికలుFabtech Technologies Ltd.
P) Provisions, contingent liabilities, and contingent assets
A provision is recognised when there is a present obligation (legal or constructive) as a result of a past event
that probably requires an outflow of resources and a reliable estimate can be made of the amount of the
obligation. It the effect of the time value of money is material, provisions are discounted to reflect its present
value using a current pre-tax rate that reflects the current market assessments of the time value of money and
the risks specific to the obligation.
When discounting is used, the increase in the provision due to the passage of lime Is recognized as a finance
cost. Each provision is based on the best estimate of the expenditure required to settle the present obligation at
the balance sheet date.
Contingent liabilities arc 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 not
wholly within the control of the Company or a present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot
be made. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
Contingent assets are generally not recognized but are disclosed when inflow of economic benefit is probable.
Provisions, Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
Q) Income taxes
Tax expense for the year comprises current tax and deferred tax. The tax currently payable is based on taxable
profit for the year.
Taxable profit differs from net profit as reported in the statement of profit and loss because it excludes items of
income or expense that are taxable or deductible in other years and it further excludes items that are never
taxable or deductible. The Company''s liability for current tax is calculated using tax rates and tax laws that
have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is the tax expected to be payable or recoverable on temporary differences between the carrying
values of assets and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit and is accounted for using liability method. Deferred tax liabilities are generally
recognised for all taxable temporary differences. In contrast, deferred tax assets are only recognised to the extent
that it is probable that future taxable profits will be available against which the temporary differences can be
utilised.
The carrying value of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will bo available to allow all or part of the asset
to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or
the asset is realised based on the tax rates and tax laws that have been enacted or substantially enacted by the
end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences
that would follow from the manner in which the Company expects, at the end of the reporting period, to cover
or settle the carrying value of its assets and liabilities.
Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority
and there are legally enforceable rights to set off current tax assets and current tax liabilities within that
jurisdiction and there is an intention to settle the asset & liability on a net basis.
Current and deferred tax are recognised as an expense or income in the statement of profit and loss, except
when they relate to items credited or debited either in other comprehensive income or directly in equity, in
which case tax is also recognized in other comprehensive income or directly in equity.
R) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity
shareholders of the Company by the weighted average number of the equity shares outstanding during the
year. For the purpose of calculating diluted earnings per share, net profit or loss for the year attributable to
equity shareholders of the Company and the weighted average number of equity shares outstanding during
the year are adjusted for the effect of all dilutive potential equity shares.
S) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets and liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial liabilities at fair value through profit and loss) are added to
or deducted from the fair value measured on initial recognition of financial asset or financial liability. The
transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value
through profit and loss are immediately recognised in the statement of profit and loss.
Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference
between the fair value and the transaction price is recognized as a gain or loss in the Statement of Profit and
Loss, unless it qualifies to recognized otherwise. However, trade receivables that do not contain a significant
financing component are measured at Transaction price.
(a) Financial assets
a. (i) Classification:
The Company classifies its financial assets in the following measurement categories:
i. those to be measured subsequently at fair value (either through other comprehensive
income, or through profit or loss), and
ii. those measured at amortised cost
The classification depends on the entity''s business model for managing the financial assets and the contractual
terms of the cash flows
i. Financial assets at amortized cost
Financial assets are subsequently measured at amortised cost if these financial assets are held within a business
model whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms
of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
The effective interest method is a method of calculating the amortised cost of a financial instrument and of
allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly
discounts future cash receipts or payments through the expected life of the financial instrument, or where
appropriate, a shorter period.
ii. Financial assets measured at fair value
Fair Value through other comprehensive income (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if these financial assets are
held within a business model whose objective is to hold these assets in order to collect contractual cash flows
or to sell these financial assets and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets included within the FVTOCI category are measured initially as well as at each reporting date
at fair value. Fair value movements are recognised in the OCT. However, the Company recognises interest
income, impairment losses and reversals and foreign exchange gain or loss in the statement of profit and loss.
On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified to the
statement of profit and loss. Interest earned while holding a FVTOCI instrument is reported as interest income
using the effective interest rate method.
The Company in respect of equity investments (other than in subsidiaries, associates and joint ventures) which
are not held for trading has made an irrevocable election to present in other comprehensive income subsequent
changes in the fair value of such equity instruments. Such an election is made by the Company on an instrument
by instrument basis at the time of initial recognition of such equity investments.
Fair value through the statement of profit and loss (FVTPL)
Financial asset not measured at amortised cost or at fair value through other comprehensive income is carried
at fair value through the statement of profit and loss. Fair value changes are recognized in the Statement of
Profit & Loss at each reporting period.
iii. Cash and bank balances
Cash and bank balances consist of:
(i) Cash and cash equivalents - which includes cash in hand, deposits held at call with banks and other short
term deposits which are readily convertible into known amounts of cash, are subject to an insignificant risk of
change in value and have maturities of less than one year from the date of such deposits. These balances with
banks are unrestricted for withdrawal and usage.
(ii) Other bank balances - which includes balances and deposits with banks that are restricted for withdrawal
and usage.
iv. Impairment of financial assets:
The Company recognizes loss allowances using the expected credit loss (HCL) model for the financial assets
and unbilled revenues which arc not fair valued through profit or loss.
The Company recognises life time expected credit losses for all trade receivables and unbilled revenues that do
not constitute a financing transaction. For all other financial assets whose credit risk has not significantly-
increased since initial recognition, loss allowance equal to twelve months expected credit losses is recognised.
Loss allowance equal to the lifetime expected credit losses is recognised if the credit risk on the financial
instruments has significantly increased since initial recognition. The Impairment losses and reversals are
recognized in the Statement of Profit & Loss.
v. De-recognition of financial assets
The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to
another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership
and continues to control the transferred asset, the Company recognises its retained interest in the assets and an
associated liability for amounts it may have to pay. If the Company retains substantially all the risks and
rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset
and also recognizes a collateralised borrowing for the proceeds received. On de-recognition of a Financial Asset
(except for Financial Assets measured at FVTOCI), the difference between the carrying amount and the
consideration received is recognized in the Statement of Profit & Loss.
(b) Financial liabilities and equity instruments
Classification as debt or equity Financial liabilities and equity instruments issued by the Company are classified
according to the substance of the contractual arrangements entered into and the definitions of a financial
liability and an equity instrument.
Lquity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Financial Liabilities
Other payables are initially measured at fair value, net of transaction costs, and are subsequently measured at
amortised cost, using the effective interest rate method where the time value of money is significant. Interest
bearing bank loans, overdrafts and issued debt are initially measured at fair value and are subsequently
measured at amortised cost using the effective interest rate method. Any difference between the proceeds (net
of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the
borrowings in the statement of profit and loss.
De-recognition of financial liabilities
The Company de-recognises financial liabilities when, and only when, the Company''s obligations are
discharged, cancelled or they expire. The differences between the carrying amount of the financial liability-
derecognized and the consideration paid is recognized in the Statement of Profit & Loss.
Derivative financial instruments
The Company engages in forward contracts primarily to mitigate risks arising from fluctuations in foreign
currency related to its existing financial assets and liabilities, specific commitments, and anticipated
transactions. These derivative contracts are used exclusively for hedging purposes and are not employed for
trading or speculative activities.
In its hedging strategy, the Company designates certain instruments, including derivatives and, in some cases,
non-derivative financial instruments related to foreign currency risk, as fair value hedges. For hedges involving
foreign exchange risk on commitments, the Company also applies fair value hedge accounting.
Under fair value hedge, any changes in the fair value of the designated portion of the hedging instruments that
qualify are recognized immediately in the profit or loss statement. This is done in conjunction with the
recognition of any changes in the fair value of the hedged asset or liability attributable to the hedged risk.
Derivatives are initially recognized and measured at fair value from the date the derivative contract is entered
into. Subsequently, they are re-measured at their fair value at the end of each reporting period.
T) Investment in Joint Ventures & associates
A joint venture is a joint arrangement whereby the parties have the joint control of the arrangement and have
rights to the net assets to joint arrangement. Joint control is contractually agreed sharing of control of an
arrangement which exists only when decisions about the relevant activity require unanimous consent of the
parties sharing control. Investment in joint ventures are carried at cost less accumulated impairment, if any.
Where an indication of impairment exists, the carrying amount of the investment is assessed and written down
immediately to its recoverable amount. On disposal of investments in joint venture, the difference between net
disposal proceeds and the carrying amounts are recognized in the Statement of Profit and I oss.
An associate is an entity over which the investor has significant influence. Investment in associates are carried
at Transaction price.
LI) Non-current assets held for sale and discontinued operations
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use and a sale is considered highly
probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for
assets such as deferred tax assets, assets arising from employee benefits, financial assets and contractual rights
under insurance contracts, which are specifically exempt from this requirement.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to
fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an
asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or
loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised
at the date of de-recognition.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while
they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group
classified as held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are
presented separately from the other assets in the balance sheet. I he liabilities of a disposal group classified as
held for sale arc presented separately from other liabilities in the balance sheet.
A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale
and that represents a separate major line of business or geographical area of operations, is part of a single co¬
ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively
with a view to resale. The results of discontinued operations are presented separately in the statement of profit
and loss.
VO Business Combinations
Business Combinations are accounted for using the acquisition method of accounting, except for common
control transactions which are accounted using the pooling of interest method that is accounted at carrying
values. The cost of an acquisition is measured at the fair value of the assets transferred, equity instruments
issued and liabilities assumed at their acquisition date i.e. the date on which control is acquired.
Goodwill arising on business combination is initially measured at cost, being the excess of the aggregate of the
consideration transferred and the amount recognised for noncontrolling interests, and any previous interest
held, over the fair value of net identifiable assets acquired and liabilities assumed. After initial recognition,
Goodwill is tested for impairment annually and measured at cost less any accumulated impairment losses if
any.
W) Segment Reporting
Operating Segments are reported in a manner consistent with the information reported to the Chief Operating
Decision Maker (CODM) for the purpose of resource allocation and assessment of segment performance based
on product and services.
4. RECENT ACCOUNTING PRONOUNCEMENTS
Ministry of Corporate Affairs ("MCA") has notified amendments to the existing standards Ind AS 1 -
Presentation of financial statements relating to classification of liabilities as current or non-current subject to
covenants, Ind AS 12 - Income Taxes relating to international tax reforms - Pillar Two Model Rules, lnd AS 21
- the effect of changes in foreign exchange rates and Ind AS 107 - Financial Instruments: Disclosures and lnd
AS 7 - Statement of Cashflows relating to disclosure of supplier financing arrangements, applicable from April
1,2025. The Company has assessed that there is no significant impact on its financial statements with respect to
the amendments in Ind AS 1, Ind AS 21 and Ind AS 12.
Definition for Other Equity
i) Bonus shares issued pending allotment; Reserve balance kepi aside. !u be adjusted against bonus share* issued pending allotment. I loivever. in the I V 202-1-25
the bonus is alloted on .3rd April, 2024.
ii) Securities Premium; Securities premium is used to recced premium received on issue of shares Ihe reserve is utilised in accordance with the provisions ol tire
Companies Act. 2013.
iii) Capital Reserve: Ihe excess of fair value of net assets acquired over consideration paid in a common control transaction ts recognised as capital reserve
iv> Retained Earnings: Retained earnings represent the amount that can be distributed as dividend considering the requirements of the Companies Act. 20)3.
v) Other Comprehensive Income: Other ci â¢mprehensive income comprises items of income and expense (including reclassification adjustments) that are not
recognised In profit or loss a- required or permitted by Ind AS
⢠The company withheld a liability owed to M/ *. Clean Coats Pvt. l td. (''vendor") due to unsatisfactory work quality, which resulted in a dispute. The vendor disputed
tire withholding and hied a Complaint with the MS.V1E Facilitation Council, lhane. The Council issued an order on Septemlx-r 29. 2017. directing tlx-company to pav
INR J2.03 lakhs along with
Subsequently, the company contested the order by filing a suit in the Uoinbay City Civil Court. Dindoshi, on February 9. 201S. Concurrently, the vendor approached
the Bombay High Court for enforcement of tlx- MSWE Facilitation CouiKil''s order, lhe Bombay High Court instructed the company to deposit INK 85.53 lakhs
(including interest) with the court. Subsequently deposited amount was withdrawn by the vendor
However. fallowing an Order of the llon''bki Supreme Court of India. Fabcech Technologic-; International Ltd. I Demerged Company) filed an Arbitration Application,
appointing k-gal representation. This application is anticipated to lx- listed and presents a favocabJe chance for tlx- deposited funds to Iv refunded.
The management expresses confidence in resolving the mailer in its favor and therefore, no pmvt«*on has boon recorded m tlx- company''s books.
42 Segment Reporting
In accordance with Ind AS 1 CIS "Operating Segments.", segment information has been given in the consolidated Ind AS financial statements, and therefore, no separate
disclosure on segment information is given in these standalone financial statements
i) Defined Contribution Plan
Tire Company makes contributions, determined as a specified percentage n< employee salaries, in respect of qualifying employees (wards Provident Fund and
Employee Stale Insurance Fund, which is a defined contribution plan. The company Has no obligations other than to make the specified contributions. The
contributions are charged to the Statement of Profit and lx>>* a- they accrue. The only amounts included in the balance sheet are those relating to the prior months
contribution that arc i»t due to he paid until the end of repotting period. The amount recognised as an expense towards contribution to Provident Fund and Pension
Fund for live year aggregated toe
INK 5H.33 lakhs lor the year ended March 31,2026
INK 57.63 lakhs for the year ended March 31. M»
ii) Defined Benefit Plan
Description of Plans
Retirement Benefit Plans of the Company include Gratuity and Leave Encashment.
Gratuity & Pension
The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lumpsum payment to vested
employees at retirement, death while in employment or on termination of employment ol an amount equivalent to 15 days salary payable lor each completed year oi
service. subject to a payment ceiling of INK 2d laklv Vesting occurs upon compleimn of five years of service, However, rise completion of vesting period is not
applicable in the case where termination of employment is due to death or permanent disability. Liabilities with regard to the Gratuity Plan are determined by
ai1uari.il valuation on the reporting date.
H. Investment details of plan
The Company Isas a defined benefit gratuity plan In India (partly funded) The entity''s defined benefit gratuity plan Is a final salaiv plan for employees- which requires
contributions to be made to a separately administered fund i*. Lrfo Insurance Corporation of India The fund is managed by a trust which Is governed by she Board of
Trustees. The Board uf Trustees arc responsible for the administration of tlx- plan assets and fur the definition of tlx- Investment strategy.
I. Notes
Gratuity Is payable as per entity''s scheme as detailed in the report
Actuarial gairts/l<»«âes are recognized in the period of occurrence under Other Comprehensive Income (OC1).
All above reported figures of OCI are gross of taxation.
Salary escalation & attrition rah'' are considered as advised by the entity; they appear to bo in lino with the industry practice considering promotion and demand &
supply of the employee*.
Maturity Analysis of Benefit Payments is undiscounted cashflows considering future salary, attrition Si death in respective year for members as mentioned above for
torsreaWe future ot next 10 years
Average Expected Future Service represents Estimated Term of Pin* ⢠Employment Benefit Obligation.
Weighted Average Duration of the Defined Benefit Obligation is the weighted average of cadi flow timing, where Weights are derived from the present value of each
cash flow to live total present value.
Any benefit payment and contribution to plan assets e> considered to occur end of the year to depict liability and fund movement In the disclosures.
Value of asset provided by the'' entity is not audited by it* and the same is considered *s unaudited fan value of plan asset as on the reporting dale
In absence of specific communication as regards contribution by the entity, Expected Contribution in the Next Year is considered as the sum of net liability/assets at
the end of the current year and cunxnt service cost (or rx-vl year, subject to maximum allowable contribution to the Plan Assets over tlx: next vear as per the Income
Tax Rules.
J. Qualitative Disclosures
Para 1OT (a) Characteristics of defined benefit plan
The entity has a defined benefit gratuity plan in India (funded). The entity''* defined beix-fit gratuity plan is a final salary plan for employee*, which tequirc*
cnntributioiw Id K- made to a separately administered fund.
The fund is managed by a trust which is governed by tlx: Bcorri ot Trustees. Tlx: Board of Trustees are responsible for the administration of tlx- plan assets and tor the
definition ot the investment strategy.
Pn» 13*>ll») Risks associated will* defined benefit plan
Gratuity Isa defined benefit plan and entity is exposed to the Following Risks
Interest rite risk A fall In the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the
discount rale generally increases live mark to market value of the assets depending on I lie duration of assel.
Salary Risk: I he present value of the defined benefit plan liability is calculated bv reference to the future salaries of members. As such, an increase in the salary of the
members more than assumed level will increase the plan''s liability.
Investment Risk: Die present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference tu market yields at the end
of the repotting period on government bund*. If the return on plan asset is below this rate. It will create a plan deficit. Currently, few the plan In India. It has a relatively
balanced mis of investments in government securities, and other debt instruments
\vset I iability Matching Risk. The plan faces ihe AIM risk as to the matching cash flow Since Ihe plan Is Invested in lines of Rule 101 of Income Tax Rules. isfO. this
generally reduces AIM rvk.
Mortality risk: Since the benefits under the plan is not payable for life tune and payable till retirement age only, plan docs nut leave anv longevity ride.
Concentration Risk: llan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all Ihe assets. Although
probability ot this is very low as insurance companies have to follow stringent regulatory gUKlelir.es which mitigate nsk.
I''ara 13*) (c) Characteristics of defined benefit plans
During ihe year, there were no plan amendments, curtailments and settlements.
Para 147 (a)
A separate trust fund is created to manage the C.ratuitv plan anti the contributions towards the trust fund it done as guided bv rule 11)3 of Income Tax Rules, 1SKi2.
iii) Other Long Term Benefit Plan
The following table sets out the non funded status of the Privilege Leave benefits and ihe amounts recognized In the Company''s financial statement*.
Privilege Leave is payable as per entity''s scheme as detailed in the report.
Actuarial Gams/ Losses arc accounted lor m the period ol occurrence in the Statement of Profit or loss.
Salary escalation & attrition rate ate considered as advised by the entity, they appear to tv in lira: with the industry practice considering promotion and demand &
Supply of the employees.
During the year, there were no plan amendments, curtailments and settlements.
Any benefit payment and contribution to plan assets ts considered to occur uni of the year to depict liability atvd fund movement In the disclosures.
On November 21.2025, the Government of India notified four Labour Codes, replacing the existing 29 labour laws. The Company has assessed the financial
implications ot these changes, which has no impact in five Company''s gratuity and leave encashment liability for the quarter flint year ended March 31. 2026. I lowever,
the Company continues to monitor the developments per laming to Labour Codes and will evaluate impact if any on the re-measurement of the employee benefits
liability
it Capitjl Management
The Company''s capital management is intended to create value for shareholders by facilitating five meeting ol long term and slioet term goals ol the Company. The
Company determines the amount of capital required on the basis of annual business plan coupled with long term atvd short term strategic Investment atvd expansion
plans. Tlve funding needs are nvei through equity, cosh generated from operations and long term and shot! term bunk borrowing* on need basis If any. The Company
monitors the capital structure on the basis of gearing ratio i,e. net debs to equity ratio and maturity profile of the overall debt portfolio of the Company Net debt
include* interest bearing borrowing*. Ie«* cash and cash equivalents.
46 Financial B i-k Management
Th- Company''* printfpll financial liabilities comprise borrowing, trade jtvl other pjyjbksi The mam purpose of these financial liabilities is to finance and support CompanvVi
op-iaticsi, livCn«ii|Wi)''''*|YttKtp<
live Company Is exposed to market risk, credit mk atvJ liquidity mi. Ihe Company''s senior m.iiugetiy''n; oversees the maiugcnwn! oc these risks. live Company''s financial risk,
activities are governed by appropriate pedicles and procedure* aryl :ir.nvi.il nsks are identified, measured anil managed in accordance with the Companyâs policies and rtsk
objectives Ihc Board of Director* reviews and agrees policies for maivjgtng each of these risks, rhe r»k management framework aims to:
(I) ci cate a stable busltyw. pl.iiuiing inivsnumynl by red vying the inipu t of currency and Interest rate flustuatunit on the Company''s business plaiv
(it) jyhieve greater predictability to earnings by determining the financial value of the expected earnings in advance
1 Market ride:
Market rtsk Is the rt.k of any kiss in iuture earnings, m realisable lau values or In future ..ash flows that may result from a change in live'' pryc cd a IUiaii.uI instrument. Ihc value ol a
financial Instrument may change as a result ol changes in mterest rates, loretgn currency exchange rates, opnty pevee fluctuations. liquidity aryl other market changes. Future specific
market movements cannot be nornvsllv prcdxted with reasoruMe accuracy.
C> Market risk - Foreign currency exchange rate risk: The Company enter mto sat aryl purchase uanSKtiuns vlenominatvd in foreign currencies;
movement in larrlgn currency, the Company takes rvmidial measures to hedge'' to reign currency risk through measures like forward currency contracts etc
b> Market risk ⢠Interest r.ucr»k: Intciest rate r.-.k refers to live ponabllliv that live rair value or future cash flows ol a tliuiyl.il instrument will fluctuate became ol clunges In market
interest rate. The Company"s pvbcv r. to maintain a balance of fixed aryl l loafing Interest rate bofTosvings aryl the proportion of fixed atyl floating rate debt ts determined by current
market interest rales. Ihe borrowings of live Company arc principally dctwnnvlcd in livfiar. Ropes and US dollars with mix of fixed and (fixating rjles ol interest Fhese exposures
are reviewed by appropriate levels of management at regular interval
Th C Ivnptny ha. out.landing borrowing* id INK I.WI.95 lakh- and INX 33Z4.Wlakh- at the end of Marsh 31. 3Bhaod Marsh 41. 3005 rs-sysx livvlv
II Credit risk:
Credit risk is the ri*k of financial low fi> th; Companv ri o customer or counter-party fail* to m»vt its
hank balances, trade receivables, finance receivables and loans and advances. Company regularly reviews the credit limits of the customers aiyl takes action to reduce the rr.k.
Funhur diverse and lorgq customer liases also lediyes the itsk. AU trade receivables are reviewed atyl MKtMd fix default cm quarterly basis.
50
Use balances in mpKt of trade receivable* and payable* and loan* and advances, as appearing in the books of accounts are subject to confirmation* from the respective
parties ami are pending reconciliations / adjustments arising there from, if any. The same is mit expected to have any material impact on the financials statements.
51 A* per the contractual terms with customers, company provide warranty to tlx- customer fix 18 months from the date of sale or 12 month from the date of installation
whichever is earlier. These warranties are tucked by the vendor s warranty on the product No Provision for Warranty has been created since tile vendor of the company
fully covers tlx- product warranty cost pertaining to the material supplied by litem lor potential future warranty claims.
52 Ihe Investment in the equity share* of''ISA Process Equipment IM Lid ffSA-) till February 06,2024 was classified as an investment m associate in accordance with Ind
AS 27. I he said investment cea<«s to be- an investment in assocUle from February t>6,2024 as a company decided to dispose- off its investment in ISA to Thermae Limited
vide Share Purchase and Share Subscription Agreement dated February 06, 2024. Accordingly, as per Ind AS 105 Non-current Assets Held for Sale and Discontinued
Operations, from tlx- cessation date the investment in ISA ha* been valued at lower oi carrying amount or fair value (net of curt)
t he Company has mid the stake of M''l of 5555''- equity shares of TSA Process Equipment Pvt Ltd. (''IS-V| during the FY 2074-25 to Ihermax Limited.
The Company has sold 51A of its investment in wholly-owned subsidiary i.e FABL International Technolopes LLP on April 01, 2025 and was classifed as as investment
in assciates in accordance with Ind AS 27.
A provision is recognised when there is a present obligation (legal or constructive) as a result of
a past event that probably requires an outflow of resources 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 to reflect its present value using a current pre-tax rate that reflects the current market
assessments of the time value of money and the risks specific to the obligation.
When discounting is used, the increase in the provision due to the passage of time is recognized
as a finance cost. Each provision is based on the best estimate of the expenditure required to
settle the present obligation at the balance sheet date.
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 not wholly within the control of the Company or a present obligation that
arises from past events where it is either not probable that an outflow of resources will be required
to settle or a reliable estimate of the amount cannot be made. When there is a possible obligation
or a present obligation in respect of which the likelihood of outflow of resources is remote, no
provision or disclosure is made.
Contingent assets are generally not recognized but are disclosed when inflow of economic benefit
is probable.
Provisions, Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
Q) Income taxes
Tax expense for the year comprises current tax and deferred tax. The tax currently payable is
based on taxable profit for the year.
Taxable profit differs from net profit as reported in the statement of profit and loss because it
excludes items of income or expense that are taxable or deductible in other years and it further
excludes items that are never taxable or deductible. The Company''s liability for current tax is
calculated using tax rates and tax laws that have been enacted or substantively enacted by the
end of the reporting period.
Deferred tax is the tax expected to be payable or recoverable on temporary differences between
the carrying values of assets and liabilities in the financial statements and the corresponding
tax bases used in the computation of taxable profit and is accounted for using liability method.
Deferred tax liabilities are generally recognised for all taxable temporary differences. In contrast,
deferred tax assets are only recognised to the extent that it is probable that future taxable profits
will be available against which the temporary differences can be utilised.
The carrying value of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability
is settled or the asset is realised based on the tax rates and tax laws that have been enacted
or substantially enacted by the end of the reporting period. The measurement of deferred tax
liabilities and assets reflects the tax consequences that would follow from the manner in which
the Company expects, at the end of the reporting period, to cover or settle the carrying value of
its assets and liabilities.
Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the
same tax authority and there are legally enforceable rights to set off current tax assets and current
tax liabilities within that jurisdiction and there is an intention to settle the asset & liability on a net
basis.
Current and deferred tax are recognised as an expense or income in the statement of profit and
loss, except when they relate to items credited or debited either in other comprehensive income
or directly in equity, in which case tax is also recognized in other comprehensive income or directly
in equity.
R) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable
to equity shareholders of the Company by the weighted average number of the equity shares
outstanding during the year. For the purpose of calculating diluted earnings per share, net profit
or loss for the year attributable to equity shareholders of the Company and the weighted average
number of equity shares outstanding during the year are adjusted for the effect of all dilutive
potential equity shares.
S) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial assets and liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through profit
and loss) are added to or deducted from the fair value measured on initial recognition of financial
asset or financial liability. The transaction costs directly attributable to the acquisition of financial
assets and financial liabilities at fair value through profit and loss are immediately recognised in
the statement of profit and loss.
Where the fair value of a financial asset at initial recognition is different from its transaction price,
the difference between the fair value and the transaction price is recognized as a gain or loss
in the Statement of Profit and Loss, unless it qualifies to recognized otherwise. However, trade
receivables that do not contain a significant financing component are measured at Transaction
price.
(a) Financial assets
a. (i) Classification :
The Company classifies its financial assets in the following measurement categories:
i. those to be measured subsequently at fair value (either through other comprehensive income,
or through profit or loss), and
ii. those measured at amortised cost
The classification depends on the entity''s business model for managing the financial assets and
the contractual terms of the cash flows
i. Financial assets at amortized cost
Financial assets are subsequently measured at amortised cost if these financial assets are held
within a business model whose objective is to hold these assets in order to collect contractual
cash flows and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
The effective interest method is a method of calculating the amortised cost of a financial instrument
and of allocating interest income or expense over the relevant period. The effective interest rate is
the rate that exactly discounts future cash receipts or payments through the expected life of the
financial instrument, or where appropriate, a shorter period.
ii. Financial assets measured at fair value
Fair Value through other comprehensive income (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if these financial
assets are held within a business model whose objective is to hold these assets in order to collect
contractual cash flows or to sell these financial assets and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
Financial assets included within the FVTOCI category are measured initially as well as at each
reporting date at fair value. Fair value movements are recognised in the OCI. However, the
Company recognises interest income, impairment losses and reversals and foreign exchange
gain or loss in the statement of profit and loss. On derecognition of the asset, cumulative gain or
loss previously recognised in OCI is reclassified to the statement of profit and loss. Interest earned
while holding a FVTOCI instrument is reported as interest income using the effective interest rate
method.
The Company in respect of equity investments (other than in subsidiaries, associates and joint
ventures) which are not held for trading has made an irrevocable election to present in other
comprehensive income subsequent changes in the fair value of such equity instruments. Such
an election is made by the Company on an instrument by instrument basis at the time of initial
recognition of such equity investments.
Fair value through the statement of profit and loss (FVTPL)
Financial asset not measured at amortised cost or at fair value through other comprehensive
income is carried at fair value through the statement of profit and loss. Fair value changes are
recognized in the Statement of Profit & Loss at each reporting period.
iii. Cash and bank balances
Cash and bank balances consist of:
(i) Cash and cash equivalents - which includes cash in hand, deposits held at call with banks and
other short term deposits which are readily convertible into known amounts of cash, are subject
to an insignificant risk of change in value and have maturities of less than one year from the date
of such deposits. These balances with banks are unrestricted for withdrawal and usage.
(ii) Other bank balances - which includes balances and deposits with banks that are restricted
for withdrawal and usage.
iv. Impairment of financial assets:
The Company recognizes loss allowances using the expected credit loss (ECL) model for the
financial assets and unbilled revenues which are not fair valued through profit or loss.
The Company recognises life time expected credit losses for all trade receivables and unbilled
revenues that do not constitute a financing transaction. For all other financial assets whose credit
risk has not significantly increased since initial recognition, loss allowance equal to twelve months
expected credit losses is recognised. Loss allowance equal to the lifetime expected credit losses
is recognised if the credit risk on the financial instruments has significantly increased since initial
recognition. The Impairment losses and reversals are recognized in the Statement of Profit & Loss.
v. De-recognition of financial assets
The Company de-recognises a financial asset only when the contractual rights to the cash flows
from the asset expire, or it transfers the financial asset and substantially all risks and rewards of
ownership of the asset to another entity. If the Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues to control the transferred asset, the Company
recognises its retained interest in the assets and an associated liability for amounts it may have
to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred
financial asset, the Company continues to recognise the financial asset and also recognizes a
collateralised borrowing for the proceeds received. On de-recognition of a Financial Asset (except
for Financial Assets measured at FVTOCI), the difference between the carrying amount and the
consideration received is recognized in the Statement of Profit & Loss.
(b) Financial liabilities and equity instruments
Classification as debt or equity Financial liabilities and equity instruments issued by the Company
are classified according to the substance of the contractual arrangements entered into and the
definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the
Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds
received, net of direct issue costs.
Financial Liabilities
Other payables are initially measured at fair value, net of transaction costs, and are subsequently
measured at amortised cost, using the effective interest rate method where the time value of
money is significant. Interest bearing bank loans, overdrafts and issued debt are initially measured
at fair value and are subsequently measured at amortised cost using the effective interest rate
method. Any difference between the proceeds (net of transaction costs) and the settlement or
redemption of borrowings is recognised over the term of the borrowings in the statement of profit
and loss.
The Company de-recognises financial liabilities when, and only when, the Company''s obligations
are discharged, cancelled or they expire. The differences between the carrying amount of the
financial liability derecognized and the consideration paid is recognized in the Statement of Profit
& Loss.
Derivative financial instruments
The Company engages in forward contracts primarily to mitigate risks arising from fluctuations in
foreign currency related to its existing financial assets and liabilities, specific commitments, and
anticipated transactions. These derivative contracts are used exclusively for hedging purposes
and are not employed for trading or speculative activities.
In its hedging strategy, the Company designates certain instruments, including derivatives and,
in some cases, non-derivative financial instruments related to foreign currency risk, as fair value
hedges. For hedges involving foreign exchange risk on commitments, the Company also applies
fair value hedge accounting.
Under fair value hedge, any changes in the fair value of the designated portion of the hedging
instruments that qualify are recognized immediately in the profit or loss statement. This is done
in conjunction with the recognition of any changes in the fair value of the hedged asset or liability
attributable to the hedged risk.
Derivatives are initially recognized and measured at fair value from the date the derivative
contract is entered into. Subsequently, they are re-measured at their fair value at the end of each
reporting period.
T) Investment in Joint Ventures & associates
A joint venture is a joint arrangement whereby the parties have the joint control of the arrangement
and have rights to the net assets to joint arrangement. Joint control is contractually agreed sharing
of control of an arrangement which exists only when decisions about the relevant activity require
unanimous consent of the parties sharing control. Investment in joint ventures are carried at
cost less accumulated impairment, if any. Where an indication of impairment exists, the carrying
amount of the investment is assessed and written down immediately to its recoverable amount.
On disposal of investments in joint venture, the difference between net disposal proceeds and the
carrying amounts are recognized in the Statement of Profit and Loss.
An associate is an entity over which the investor has significant influence. Investment in associates
are carried at Transaction price.
U) Non-current assets held for sale and discontinued operations
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount
will be recovered principally through a sale transaction rather than through continuing use and
a sale is considered highly probable. They are measured at the lower of their carrying amount
and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from
employee benefits, financial assets and contractual rights under insurance contracts, which are
specifically exempt from this requirement.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal
group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value
less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment
loss previously recognised. A gain or loss not previously recognised by the date of the sale of the
non-current asset (or disposal group) is recognised at the date of de-recognition.
Non-current assets (including those that are part of a disposal group) are not depreciated or
amortised while they are classified as held for sale. Interest and other expenses attributable to the
liabilities of a disposal group classified as held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of a disposal group classified as
held for sale are presented separately from the other assets in the balance sheet. The liabilities of
a disposal group classified as held for sale are presented separately from other liabilities in the
balance sheet
A discontinued operation is a component of the entity that has been disposed of or is classified
as held for sale and that represents a separate major line of business or geographical area of
operations, is part of a single co-ordinated plan to dispose of such a line of business or area of
operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued
operations are presented separately in the statement of profit and loss.
V) Business Combinations
Business Combinations are accounted for using the acquisition method of accounting, except
for common control transactions which are accounted using the pooling of interest method that
is accounted at carrying values. The cost of an acquisition is measured at the fair value of the
assets transferred, equity instruments issued and liabilities assumed at their acquisition date i.e.
the date on which control is acquired.
Goodwill arising on business combination is initially measured at cost, being the excess of the
aggregate of the consideration transferred and the amount recognised for noncontrolling
interests, and any previous interest held, over the fair value of net identifiable assets acquired
and liabilities assumed. After initial recognition, Goodwill is tested for impairment annually and
measured at cost less any accumulated impairment losses if any.
W) Segment Reporting
Operating Segments are reported in a manner consistent with the information reported to the
Chief Operating Decision Maker (CODM) for the purpose of resource allocation and assessment
of segment performance based on product and services.
4. RECENT ACCOUNTING PRONOUNCEMENTS
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules,2015 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.
* The company withheld a liability owed to M/s. Clean Coats Pvt. Ltd. ("vendor") due to unsatisfactory work quality, which resulted in a dispute. The vendor disputed
the withholding and filed a complaint with the MSME Facilitation Council, Thane. The Council issued an order on September 29, 2017, directing the company to pay
INR 32.03 lakhs along with other claims.
Subsequently, the company contested the order by filing a suit in the Bombay City Civil Court, Dindoshi, on February 9, 2018. Concurrently, the vendor approached the
Bombay High Court for enforcement of the MSME Facilitation Council''s order. The Bombay High Court instructed the company to deposit INR 85.53 lakhs (including
interest) with the court. Subsequently deposited amount was withdrawn by the vendor.
However, following an Order of the Hon''ble Supreme Court of India, Fabtech Technologies International Ltd. (Demerged Company) filed an Arbitration Application,
appointing legal representation. This application is anticipated to be listed and presents a favorable chance for the deposited funds to be refunded.
The management expresses confidence in resolving the matter in its favor and therefore, no provision has been recorded in the company''s books.
42 Segment Reporting
In accordance with Ind AS 108 âOperating Segments", segment information has been given in the consolidated Ind AS financial statements, and therefore, no separate
disclosure on segment information is given in these standalone financial statements.
i) Defined Contribution Plan
The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund and
Pension Fund, which is a defined contribution plan. The company has no obligations other than to make the specified contributions. The contributions are charged to
the Statement of Profit and Loss as they accrue. The only amounts included in the balance sheet are those relating to the prior months contribution that are not due to
be paid until the end of reporting period. The amount recognised as an expense towards contribution to Provident Fund and Pension Fund for the year aggregated to:
INR 57.63 lakhs March 31, 2025
INR 50.00 lakhs March 31, 2024
ii) Defined Benefit Plan
Description of Plans
Retirement Benefit Plans of the Company include Gratuity and Leave Encashment.
Gratuity & Pension
The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lumpsum payment to vested
employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of
service, subject to a payment ceiling of INR 20 lakhs. Vesting occurs upon completion of five years of service. However, the completion of vesting period is not
applicable in the case where termination of employment is due to death or permanent disability. Liabilities with regard to the Gratuity Plan are determined by
actuarial valuation on the reporting date.
H. Investment details of plan assets
The Company has a defined benefit gratuity plan in India (partly funded). The entity''s defined benefit gratuity plan is a final salary plan for employees, which requires
contributions to be made to a separately administered fund i.e. Life Insurance Corporation of India.The fund is managed by a trust which is governed by the Board of
Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy.
I. Notes
Gratuity is payable as per entity''s scheme as detailed in the report.
Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI).
All above reported figures of OCI are gross of taxation.
Salary escalation & attrition rate are considered as advised by the entity; they appear to be in line with the industry practice considering promotion and demand &
supply of the employees.
Maturity Analysis of Benefit Payments is undiscounted cashflows considering future salary, attrition & death in respective year for members as mentioned above.
Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation.
Weighted Average Duration of the Defined Benefit Obligation is the weighted average of cash flow timing, where weights are derived from the present value of each
cash flow to the total present value.
Any benefit payment and contribution to plan assets is considered to occur end of the year to depict liability and fund movement in the disclosures.
Value of asset provided by the entity is not audited by us and the same is considered as unaudited fair value of plan asset as on the reporting date.
In absence of specific communication as regards contribution by the entity, Expected Contribution in the Next Year is considered as the sum of net liability/assets at
the end of the current year and current service cost for next year, subject to maximum allowable contribution to the Plan Assets over the next year as per the Income
Tax Rules.
J. Qualitative Disclosures
Para 139 (a) Characteristics of defined benefit plan
The entity has a defined benefit gratuity plan in India (funded). The entity''s defined benefit gratuity plan is a final salary plan for employees, which requires
contributions to be made to a separately administered fund.
Para 139 (b) Risks associated with defined benefit plan
Gratuity is a defined benefit plan and entity is exposed to the Following Risks:
Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the
discount rate generally increases the mark to market value of the assets depending on the duration of asset.
Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the
members more than assumed level will increase the plan''s liability.
Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end
of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively
balanced mix of investments in government securities, and other debt instruments.
Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this
generally reduces ALM risk.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although
probability of this is very low as insurance companies have to follow stringent regulatory guidelines which mitigate risk.
Para 139 (c) Characteristics of defined benefit plans
During the year, there were no plan amendments, curtailments and settlements.
Para 147 (a)
A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is done as guided by rule 103 of Income Tax Rules, 1962.
iii) Other Long Term Benefit Plan
The following table sets out the non funded status of the Privilege Leave benefits and the amounts recognized in the Company''s financial statements.
F. Notes
Privilege Leave is payable as per entity''s scheme as detailed in the report.
Actuarial Gains/ Losses are accounted for in the period of occurrence in the Statement of Profit or Loss.
Salary escalation & attrition rate are considered as advised by the entity; they appear to be in line with the industry practice considering promotion and demand &
supply of the employees.
During the year, there were no plan amendments, curtailments and settlements.
Any benefit payment and contribution to plan assets is considered to occur end of the year to depict liability and fund movement in the disclosures.
44 Capital Management
The Company7 s capital management is intended to create value for shareholders by facilitating the meeting of long term and short term goals of the Company. The
Company determines the amount of capital required on the basis of annual business plan coupled with long term and short term strategic investment and expansion
plans. The funding needs are met through equity, cash generated from operations and long term and short term bank borrowings on need basis, if any. The Company
monitors the capital structure on the basis of gearing ratio i.e. net debt to equity ratio and maturity profile of the overall debt portfolio of the Company. Net debt
includes interest bearing borrowings less cash and cash equivalents.
The fair value of financial instruments as referred to in note above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the
highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).
The categories used are as follows:
a) Level 1: Quoted prices for identical instruments in an active market -
This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of
investment in quoted equity shares.
b) Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs -
This level of hierarchy includes financial assets and liabilities, measured using inputs other than the quoted prices included within level 1 that are observables for the asset or liability, either
directly (i.e., as prices) or indirectly (i.e., derived from prices). This level of hierarchy includes Company''s derivative contracts.
c) Level 3: Inputs which are not based on observable market data -
This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole
or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor they are based on
available market data.
46 Financial Risk Management
The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company''s operations. The
Company''s principal financial assets include trade and other receivables and cash and cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s financial risk activities are
governed by appropriate policies and procedures and financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of
Directors reviews and agrees policies for managing each of these risks. The risk management framework aims to:
(i) create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the Company''s business plan.
(ii) achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.
I Market risk:
Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial
instrument may change as a result of changes in interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements
cannot be normally predicted with reasonable accuracy.
a) Market risk - Foreign currency exchange rate risk: The Company enter into sale and purchase transactions denominated in foreign currencies; consequently, exposures to exchange rate
fluctuations arise. Management monitors the movement in foreign currency and the Company''s exposure in each of the foreign currency. Based on the analysis and study of movement in
foreign currency, the Company takes remidial measures to hedge foreign currency risk through measures like forward currency contracts etc.
50 The balances in respect of trade receivables and payables and loans and advances, as appearing in the books of accounts are subject to confirmations from the
respective parties and are pending reconciliations / adjustments arising there from, if any. The same is not expected to have any material impact on the financials
statements.
51 As per the contractual terms with customers, company provide warranty to the customer for 18 months from the date of sale or 12 month from the date of
installation whichever is earlier. These warranties are backed by the vendor''s warranty on the product. No Provision for Warranty has been created since the
vendor of the company fully covers the product warranty cost pertaining to the material supplied by them for potential future warranty claims.
52
The investment in the equity shares of TSA Process Equipment Pvt. Ltd. ("TSA") till February 06, 2024 was classified as an investment in associate in accordance
with Ind AS 27. The said investment ceases to be an investment in associate from February 06, 2024 as a company decided to dispose off its investment in TSA to
Thermax Limited vide Share Purchase and Share Subscription Agreement dated February 06, 2024. Accordingly, as per Ind AS 105 Non-current Assets Held for
Sale and Discontinued Operations, from the cessation date the investment in TSA has been valued at lower of carrying amount or fair value (net of cost).
53 Events after the Reporting period
The Company''s Board of Directors approved the sale of 51% equity interest in its wholly-owned subsidiary i.e FABL International Technologies LLP. The
reconstitution deed reflecting this sale was executed after the reporting date but prior to the approval of these standalone financial statements.
Since the event occurred after the reporting period and does not provide evidence of conditions existing at the reporting date, it is classified as a non-adjusting
event under Ind AS 10 - Events after the Reporting Period. Accordingly, no adjustments have been made to the financial statements for the year ended March 31,
2025, in respect of this event.
If the sale of the 51% stake had been recognized as an adjusting event in the current reporting period, it would have resulted in a gain estimated to INR 90.52
Lakhs from the derecognition of the subsidiary in the standalone financial statements.
54 Other disclosure requirements as per Schedule III
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami
property.
(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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 (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
The Company has not received any fund from any person(s) or entity(is), 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.
(v) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the
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.
(vi) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or
other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.
(vii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.
(viii) The Company doesn''t have any co-owned properties or the properties (including properties for which the lease agreement executed and disclosed as ''Right-
of-Use Assets'' in standalone financial information) title deed of which are held by the others.
(ix) The Company has not granted any Loans or Advances in the nature of loans to promoters, Directors, KMPs and granted Loans to the related parties (as
defined under Companies Act, 2013), either severally or jointly with any other person.
55 Previous years'' figures have been re-grouped/ re-classified wherever necessary, to confirm to current period''s classification in order to comply with the
requirements of the amended Schedule III to the Companies Act, 2013.
For Ajmera And Ajmera For and on behalf of the Board of Directors
Chartered Accountants Fabtech Technologies Limited
Firm Registration No.: 018796C CIN: U74999MH2018PLC316357
Sourabh Ajmera Hemant Mohan Anavkar Amjad Adam Arbani
Partner Director Director
Membership No: 166931 DIN: 00150776 DIN: 02718019
UDIN: 25166931BM N PUX8849
Place: Mumbai
Date: 2nd August, 2025
Kalpesh Chauhan Neetu Sunil Buchasia
Chief Financial Officer Company Secretary
Membership No: ACS 61496
Ashwani Singh
Chief Executive Officer
Place: Mumbai
Date: 2nd August, 2025
A provision is recognised when there is a present obligation (legal or constructive) as a result of
a past event that probably requires an outflow of resources 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 to reflect its present value using a current pre-tax rate that reflects the current market
assessments of the time value of money and the risks specific to the obligation.
When discounting is used, the increase in the provision due to the passage of time is recognized
as a finance cost. Each provision is based on the best estimate of the expenditure required to
settle the present obligation at the balance sheet date.
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 not wholly within the control of the Company or a present obligation that
arises from past events where it is either not probable that an outflow of resources will be required
to settle or a reliable estimate of the amount cannot be made. When there is a possible obligation
or a present obligation in respect of which the likelihood of outflow of resources is remote, no
provision or disclosure is made.
Contingent assets are generally not recognized but are disclosed when inflow of economic benefit
is probable.
Provisions, Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
Q) Income taxes
Tax expense for the year comprises current tax and deferred tax. The tax currently payable is
based on taxable profit for the year.
Taxable profit differs from net profit as reported in the statement of profit and loss because it
excludes items of income or expense that are taxable or deductible in other years and it further
excludes items that are never taxable or deductible. The Company''s liability for current tax is
calculated using tax rates and tax laws that have been enacted or substantively enacted by the
end of the reporting period.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying
values of assets and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit and is accounted for using liability method. Deferred tax
liabilities are generally recognised for all taxable temporary differences. In contrast, deferred
tax assets are only recognised to the extent that it is probable that future taxable profits will be
available against which the temporary differences can be utilised.
The carrying value of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability
is settled or the asset is realised based on the tax rates and tax laws that have been enacted
or substantially enacted by the end of the reporting period. The measurement of deferred tax
liabilities and assets reflects the tax consequences that would follow from the manner in which
the Company expects, at the end of the reporting period, to cover or settle the carrying value of
its assets and liabilities.
Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the
same tax authority and there are legally enforceable rights to set off current tax assets and current
tax liabilities within that jurisdiction and there is an intention to settle the asset & liability on a net
basis.
Current and deferred tax are recognised as an expense or income in the statement of profit and
loss, except when they relate to items credited or debited either in other comprehensive income
or directly in equity, in which case tax is also recognized in other comprehensive income or directly
in equity.
Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in
India, which is likely to give future economic benefits in the form of availability of set off against
future income tax liability. MAT is recognised as deferred tax assets in the Balance Sheet when the
asset can be measured reliably and it is probable that the future economic benefit associated
with the asset will be realised.
R) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable
to equity shareholders of the Company by the weighted average number of the equity shares
outstanding during the year. For the purpose of calculating diluted earnings per share, net profit
or loss for the year attributable to equity shareholders of the Company and the weighted average
number of equity shares outstanding during the year are adjusted for the effect of all dilutive
potential equity shares.
S) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial assets and liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through profit
and loss) are added to or deducted from the fair value measured on initial recognition of financial
asset or financial liability. The transaction costs directly attributable to the acquisition of financial
assets and financial liabilities at fair value through profit and loss are immediately recognised in
the statement of profit and loss.
Where the fair value of a financial asset at initial recognition is different from its transaction price,
the difference between the fair value and the transaction price is recognized as a gain or loss
in the Statement of Profit and Loss. However, trade receivables that do not contain a significant
financing component are measured at Transaction price.
(a) Financial assets
a. (i) Classification :
The Company classifies its financial assets in the following measurement categories:
i. those to be measured subsequently at fair value (either through other comprehensive income,
or through profit or loss), and
ii. those measured at amortised cost
The classification depends on the entity''s business model for managing the financial assets and
the contractual terms of the cash flows
i. Financial assets at amortized cost
Financial assets are subsequently measured at amortised cost if these financial assets are held
within a business model whose objective is to hold these assets in order to collect contractual
cash flows and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
The effective interest method is a method of calculating the amortised cost of a financial instrument
and of allocating interest income or expense over the relevant period. The effective interest rate is
the rate that exactly discounts future cash receipts or payments through the expected life of the
financial instrument, or where appropriate, a shorter period.
ii. Financial assets measured at fair value
Fair Value through other comprehensive income (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if these financial
assets are held within a business model whose objective is to hold these assets in order to collect
contractual cash flows or to sell these financial assets and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
Financial assets included within the FVTOCI category are measured initially as well as at each
reporting date at fair value. Fair value movements are recognised in the OCI. However, the
Company recognises interest income, impairment losses and reversals and foreign exchange
gain or loss in the statement of profit and loss. On derecognition of the asset, cumulative gain or
loss previously recognised in OCI is reclassified to the statement of profit and loss. Interest earned
while holding a FVTOCI instrument is reported as interest income using the effective interest rate
method.
The Company in respect of equity investments (other than in subsidiaries, associates and joint
ventures) which are not held for trading has made an irrevocable election to present in other
comprehensive income subsequent changes in the fair value of such equity instruments. Such
an election is made by the Company on an instrument by instrument basis at the time of initial
recognition of such equity investments.
Fair value through the statement of profit and loss (FVTPL)
Financial asset not measured at amortised cost or at fair value through other comprehensive
income is carried at fair value through the statement of profit and loss. Fair value changes are
recognized in the Statement of Profit & Loss at each reporting period.
iii. Cash and bank balances
Cash and bank balances consist of:
(i) Cash and cash equivalents - which includes cash in hand, deposits held at call with banks and
other short term deposits which are readily convertible into known amounts of cash, are subject
to an insignificant risk of change in value and have maturities of less than one year from the date
of such deposits. These balances with banks are unrestricted for withdrawal and usage.
(ii) Other bank balances - which includes balances and deposits with banks that are restricted
for withdrawal and usage.
iv. Impairment of financial assets:
The Company recognizes loss allowances using the expected credit loss (ECL) model for the
financial assets and unbilled revenues which are not fair valued through profit or loss.
The Company recognises life time expected credit losses for all trade receivables and unbilled
revenues that do not constitute a financing transaction. For all other financial assets whose credit
risk has not significantly increased since initial recognition, loss allowance equal to twelve months
expected credit losses is recognised. Loss allowance equal to the lifetime expected credit losses
is recognised if the credit risk on the financial instruments has significantly increased since initial
recognition. The Impairment losses and reversals are recognizeain the Statement of Profit & Loss.
v. De-recognition of financial assets
The Company de-recognises a financial asset only when the contractual rights to the cash flows
from the asset expire, or it transfers the financial asset and substantially all risks and rewards of
ownership of the asset to another entity. If the Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues to control the transferred asset, the Company
recognises its retained interest in the assets and an associated liability for amounts it may nave
to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred
financial asset, the Company continues to recognise the financial asset and also recognizes a
collateralised borrowing for the proceeds received. On de-recognition of a Financial Asset (except
for Financial Assets measured at FVTOCI), the difference between the carrying amount and the
consideration received is recognized in the Statement of Profit & Loss.
(b) Financial liabilities and equity instruments
Classification as debt or equity Financial liabilities and equity instruments issued by the Company
are classified according to the substance of the contractual arrangements entered into and the
definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the
Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds
received, net of direct issue costs.
Financial Liabilities
Trade and other payables are initially measured at fair value, net of transaction costs, and are
subsequently measured at amortised cost, using the effective interest rate method where the
time value of money is significant. Interest bearing bank loans, overdrafts and issued debt are
initially measured at fair value and are subsequently measured at amortised cost using the
effective interest rate method. Any difference between the proceeds (net of transaction costs)
and the settlement or redemption of borrowings is recognised over the term of the borrowings in
the statement of profit and loss.
The Company de-recognises financial liabilities when, and only when, the Company''s obligations
are discharged, cancelled or they expire. The differences between the carrying amount of the
financial liability derecognized and the consideration paid is recognized in the Statement of Profit
& Loss.
Derivative financial instruments
The Company engages in forward contracts primarily to mitigate risks arising from fluctuations in
foreign currency related to its existing financial assets and liabilities, specific commitments, and
anticipated transactions. These derivative contracts are used exclusively for hedging purposes
and are not employed for trading or speculative activities.
In its hedging strategy, the Company designates certain instruments, including derivatives and,
in some cases, non-derivative financial instruments related to foreign currency risk, as fair value
hedges. For hedges involving foreign exchange risk on commitments, the Company also applies
fair value hedge accounting.
Under fair value hedge, any changes in the fair value of the designated portion of the hedging
instruments that qualify are recognized immediately in the profit or loss statement. This is done
in conjunction with the recognition of any changes in the fair value of the hedged asset or liability
attributable to the hedged risk.
Derivatives are initially recognized and measured at fair value from the date the derivative
contract is entered into. Subsequently, they are re-measured at their fair value at the end of each
reporting period.
T) Investment in Joint Ventures & associates
A joint venture is a joint arrangement whereby the parties have the joint control of the arrangement
and have rights to the net assets to joint arrangement. Joint control is contractually agreed sharing
of control of an arrangement which exists only when decisions about the relevant activity require
unanimous consent of the parties sharing control. Investment in joint ventures are carried at
cost less accumulated impairment, if any. Where an indication of impairment exists, the carrying
amount of the investment is assessed and written down immediately to its recoverable amount.
On disposal of investments in joint venture, the difference between net disposal proceeds and the
carrying amounts are recognized in the Statement of Profit and Loss.
An associate is an entity over which the investor has significant influence. Investment in associates
are carried at fair value through Profit & Loss.
U) Non-current assets held for sale and discontinued operations
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount
will be recovered principally through a sale transaction rather than through continuing use and
a sale is considered highly probable. They are measured at the lower of their carrying amount
and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from
employee benefits, financial assets and contractual rights under insurance contracts, which are
specifically exempt from this requirement.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal
group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value
less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment
loss previously recognised. A gain or loss not previously recognised by the date of the sale of the
non-current asset (or disposal group) is recognised at the date of de-recognition.
Non-current assets (including those that are part of a disposal group) are not depreciated or
amortised while they are classified as held for sale. Interest and other expenses attributable to the
liabilities of a disposal group classified as held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of a disposal group classified as
held for sale are presented separately from the other assets in the balance sheet. The liabilities of
a disposal group classified as held for sale are presented separately from other liabilities in the
balance sheet
A discontinued operation is a component of the entity that has been disposed of or is classified
as held for sale and that represents a separate major line of business or geographical area of
operations, is part of a single co- ordinated plan to dispose of such a line of business or area of
operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued
operations are presented separately in the statement of profit and loss.
V) Business Combinations
Business Combinations are accounted for using the acquisition method of accounting, except
for common control transactions which are accounted using the pooling of interest method that
is accounted at carrying values. The cost of an acquisition is measured at the fair value of the
assets transferred, equity instruments issued and liabilities assumed at their acquisition date i.e.
the date on which control is acquired.
Goodwill arising on business combination is initially measured at cost, being the excess of the
aggregate of the consideration transferred and the amount recognised for noncontrolling
interests, and any previous interest held, over the fair value of net identifiable assets acquired
and liabilities assumed. After initial recognition, Goodwill is tested for impairment annually and
measured at cost less any accumulated impairment losses if any.
W) Segment Reporting
Operating Segments are reported in a manner consistent with the information reported to the
Chief Operating Decision Maker (CODM) for the purpose of resource allocation and assessment
of segment performance based on product and services.
X) Non-current assets held for sale
Non-current assets or disposal groups comprising of assets and liabilities are classified as ''held
for sale'' if their carrying amount will be recovered principally through a sale transaction rather
than through continuing use and a sale is considered high probable to be concluded within 12
months from the balance sheet date.
Such non-current assets or disposal groups are measured at the lower of their carrying amount
and fair value less costs to sell. Non-current assets including those that are part of a disposal
group held for sale are not depreciated or amortized while they are classified as held for sale.
4. 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.
For the year ended March 31, 2024, MCA has not notified any new standards or amendments to
the existing standards applicable to the Company.
Definition for Other Equity
i) Bonus shares issued pending allotment: Reserve balance kept aside, to be adjusted against bonus shares issued pending allotment.
ii) Securities Premium: Securities premium is used to record premium received on issue of shares. The reserve is utilised in accordance with the provisions of the
Companies Act, 2013.
iii) Capital Reserve: The excess of fair value of net assets acquired over consideration paid in a common control transaction is recognised as capital reserve.
iv) Retained Earnings: Retained earnings represent the amount that can be distributed as dividend considering the requirements of the Companies Act, 2013.
During the year, no dividends are distributed to the equity shareholders by the Company.
v) Other Comprehensive Income: Other comprehensive income comprises items of income and expense (including reclassification adjustments) that are not
recognised in profit or loss as required or permitted by Ind AS.
41 Contingent Liability
Contingencies:
In the ordinary course of business, the Company faces claims and assertions by various parties. The Company assesses such claims and
assertions and monitors the legal environment on an ongoing basis with the assistance of external legal counsel, wherever necessary. The
Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in
its financial statements if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in
the financial statements but does not record a liability in its accounts unless the loss becomes probable.
* The company withheld a liability owed to M/s. Clean Coats Pvt. Ltd. ("vendor") due to unsatisfactory work quality, which resulted in a
dispute. The vendor disputed the withholding and filed a complaint with the MSME Facilitation Council, Thane. The Council issued an
order on September 29, 2017, directing the company to pay INR 32.03 lakhs along with other claims.
Subsequently, the company contested the order by filing a suit in the Bombay City Civil Court, Dindoshi, on February 9, 2018.
Concurrently, the vendor approached the Bombay High Court for enforcement of the MSME Facilitation Council''s order. The Bombay High
Court instructed the company to deposit INR 85.53 lakhs (including interest) with the court. Subsequently deposited amount was
withdrawn by the vendor.
However, following an Order of the Hon''ble Supreme Court of India, Fabtech Technologies International Ltd. (Demerged Company) filed
an Arbitration Application, appointing legal representation. This application is anticipated to be listed and presents a favorable chance for
the deposited funds to be refunded.
42 Segment Reporting
In accordance with Ind AS 108 "Operating Segments", segment information has been given in the consolidated Ind AS financial statements,
and therefore, no separate disclosure on segment information is given in these standalone financial statements.
i) Defined Contribution Plan
The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards
Provident Fund and Pension Fund, which is a defined contribution plan. The company has no obligations other than to make the specified
contributions. The contributions are charged to the Statement of Profit and Loss as they accrue. The only amounts included in the balance
sheet are those relating to the prior months contribution that are not due to be paid until the end of reporting period. The amount
recognised as an expense towards contribution to Provident Fund and Pension Fund for the year aggregated to:
INR 50.00 lakhs March 31, 2024
INR 50.51 lakhs March 31, 2023
ii) Defined Benefit Plan
Description of Plans
Retirement Benefit Plans of the Company include Gratuity and Leave Encashment.
Gratuity & Pension
The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a
lumpsum payment to vested employees at retirement, death while in employment or on termination of employment of an amount
equivalent to 15 days salary payable for each completed year of service, subject to a payment ceiling of INR 20 lakhs. Vesting occurs upon
completion of five years of service. However, the completion of vesting period is not applicable in the case where termination of
employment is due to death or permanent disability. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on
the reporting date.
46 Financial Risk Management
The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and
support Company''s operations. The Company''s principal financial assets include trade and other receivables and cash and cash equivalents that derive directly
from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The
(i) create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the Company''s business plan.
(ii) achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.
I Market risk:
Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the price of a financial
instrument. The value of a financial instrument may change as a result of changes in interest rates, foreign currency exchange rates, equity price fluctuations,
liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.
a) Market risk - Foreign currency exchange rate risk: The Company enter into sale and purchase transactions denominated in foreign currencies; consequently,
exposures to exchange rate fluctuations arise. Management monitors the movement in foreign currency and the Company''s exposure in each of the foreign
currency. Based on the analysis and study of movement in foreign currency, the Company takes remidial measures to hedge foreign currency risk through
measures like forward currency contracts etc.
b) Market risk - Interest rate risk: Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rate. The Company''s policy is to maintain a balance of fixed and floating interest rate borrowings and the proportion of fixed and
floating rate debt is determined by current market interest rates. The borrowings of the Company are principally denominated in Indian Rupees and US dollars
with mix of fixed and floating rates of interest. These exposures are reviewed by appropriate levels of management at regular interval.
The Company has outstanding borrowings of INR 844.44 lakhs and INR 3,428.71 lakhs at the end of March 31, 2024 and March 31, 2023 respectively.
II Credit risk:
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations. Credit risk encompasses both the
direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. Financial instruments that are subject to concentrations of
credit risk, principally consist of trade receivables, finance receivables and loans and advances. Company regularly reviews the credit of the customers and takes
action to reduce the risk. Further diverse and large customer bases also reduces the risk. All trade receivables are reviewed and assessed for default on quarterly
basis.
The credit risk on bank balances and derivative financial instruments is limited because the counterparties are banks with high credit ratings.
II Liquidity risk:
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient
liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital lines from
various banks. The Company invests its surplus funds in bank fixed deposits and liquid mutual funds, which carry no or low market risk. The Company''s
liquidity position remains strong at:
INR 6,641.33 lakhs as at March 31, 2024
INR 2,389.91 lakhs as at March 31, 2023
comprising of cash and cash equivalents, other balances with banks and current investments.
49 As stated in the Note 2, these are the Company''s standalone financial statements prepared in accordance with Ind AS. For the year
ended March 31, 2023 and March 31, 2022 the Company had prepared its financial statements in accordance with Companies
(Accounting Standards) Rules, 2006, notified under Section 133 of the Act and other relevant provisions of the Act (''previous GAAP'').
The accounting policies set out in Note 3 have been applied in preparing these standalone financial statements for the year ended March
31, 2024 including the comparative information for the year ended March 31, 2023.
In preparing its Ind AS standalone Balance Sheet as at March 31, 2024, March 31, 2023, and April 01, 2022 the Company has adjusted
amounts reported previously in financial statements prepared in accordance with previous GAAP. This note explains the principal
adjustments made by the Company in its financial statements prepared in accordance with previous GAAP, and how the transition from
previous GAAP to Ind AS has affected the Company''s financial position and financial performance.
a) Explanation of transition to Ind AS
In preparing the financial statement, the Company has applied the below mentioned optional exemptions and mandatory exceptions.
Property, Plant and Equipment; and Intangible Assets exemption:
The Company has elected to use the exemption available under Ind AS 101 to continue the carrying value for all of its property, plant
and equipment and intangible assets as recognised in the financial statements as at the date of transition to Ind ASs, measured as per
the previous GAAP and use that as its deemed cost as at the date of transition (April 1, 2022).
Derecognition of financial assets and financial liabilities:
The Company has elected to use the exemption for derecognition of financial assets and liabilities prospectively i.e. after April 1, 2022.
b) Mandatory Exceptions
Estimates
On assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there is no
necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that
were required under Ind AS but not required under Previous GAAP are made by the Company for the relevant reporting dates
reflecting conditions existing as at that date.
Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date
of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and
circumstances existing at the date of transition if retrospective application is impracticable.
Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date
of transition. Measurement of financial assets accounted at amortised cost has been done retrospectively except where the same is
impracticable.
c) On account of transition to Ind AS, there is no material adjustment to the Statement of Cash Flows for the year ended March 31, 2023.
d) Notes on Ind AS adjustments:
1) Security deposits recognised at amortised cost
Audited financials prepared under previous GAAP, all the security deposits were recognised at the transaction value of the
instrument.
Financials prepared under Ind AS 109, all financial assets and liabilities are required to be measured at their respective fair value on
initial recognition with difference being recognised as per the substance of the transaction. Fair value may be determined by
discounting the future cash flows associated with instrument with reference to the rate applicable to a similar instrument (in terms of
maturity, currency etc.). The difference between the fair value and the transaction price shall be recognised as prepaid rent (for
deposit placed) / deferred income (for deposit accepted), and amortised over the period of the lease. The unwinding of the security
deposit as per the effective interest rate method will be recognised as a finance income (for deposit placed) / expense (for deposit
accepted) over the period of the lease.
2) Fair valuation of Unquoted investments, mutual funds and AIF
Audited financials prepared under previous GAAP, current investments were measured at lower of cost or market price as of each
reporting date while long term investments were measured at cost reduced for permanent diminution in value.
Financials prepared under Ind AS, all financial assets are classified into one of the 3 primary categories at either amortised cost, fair
value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL).
All investment in mutual funds and AIF will be classified as subsequently measured at FVTPL. In case of an FVTPL instrument, the
instrument is fair valued at each reporting date and all fair value gains / losses are recorded in the profit and loss account.
3) Remeasurement of defined benefit liabilities
Audited financials prepared under previous GAAP, the Company recognised remeasurement of defined benefit obligations under
statement of profit and loss. Under Ind AS, remeasurement of defined benefit liability / (assets) are recognised in Other
Comprehensive Income. Re-measurements of the net defined benefit liability / (asset) comprise actuarial gains and losses, the return
on plan assets and any change in the effect of the ceiling, excluding amounts included in net interest on the net defined benefit plan.
Accordingly, actuarial gain/loss should be recognized in other comprehensive income and not reclassified to profit or loss in
subsequent periods.
4) Deferred Tax
Audited financials prepared under Previous GAAP requires deferred tax accounting using the income statement approach, which
focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for
deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or
liability in the balance sheet and its tax base. The application of the balance sheet approach has resulted in recognition of deferred tax
on new temporary differences which was not required under Previous GAAP. Also all Ind AS adjustments may have a corresponding
deferred tax impact.
5) Expected Credit Loss on trade receivables and employee loans
The company has developed a model to calculate the Expected Credit Loss for its outstanding trade receivables, as per the guidelines
outlined in IND AS 109. Using this model, the company has made adjustments to its Ind AS financial statements to account for
allowances for doubtful debt based on simplified approach.
6) Leases
Audited financials prepared under Previous GAAP, lease expenses were recorded on a straight-line basis in accordance with AS 19.
Financials prepared under Ind AS, the Company, as a lessee, recognises a right-of-use asset and a lease liability for its leasing
arrangements on contracts conveying the right to control use of the identified assets. The cost of the right-of-use asset comprises of
the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement
date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated depreciation,
accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is
depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use
asset.
51 The balances in respect of trade receivables and payables and loans and advances, as appearing in the books of accounts are subject to
confirmations from the respective parties and are pending reconciliations / adjustments arising there from, if any. The same is not
expected to have any material impact on the financials statements.
52 As per the contractual terms with customers, company provide warranty to the customer for 18 months from the date of sale or 12
month from the date of installation whichever is earlier. These warranties are backed by the vendor''s warranty on the product. No
Provision for Warranty has been created since the vendor of the company fully covers the product warranty cost pertaining to the
material supplied by them for potential future warranty claims.
53 The investment in the equity shares of TSA Process Equipment Pvt. Ltd. ("TSA") till February 06, 2024 was classified as an investment in
associate in accordance with Ind AS 27. The said investment ceases to be an investment in associate from February 06, 2024 as a
company decided to dispose off its investment in TSA to Thermax Limited vide Share Purchase and Share Subscription Agreement
dated February 06, 2024. Accordingly, as per Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations, from the
cessation date the investment in TSA has been valued at lower of carrying amount or fair value (net of cost).
54 Events after the Reporting period
A special dividend of INR 1.5 per share has been declared for each of the 3,23,92,239 fully paid-up equity shares held by the
shareholders. This dividend, distributed from the profit realized on the sale of the company''s stake in TSA Process Equipments Private
Limited, was approved by the shareholders at the Extraordinary General Meeting held on June 4, 2024.
55 Other disclosure requirements as per Schedule III
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.
(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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 (b) provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.
The Company has not received any fund from any person(s) or entity(is), 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.
(v) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the 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.
(vi) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013)
or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.
(vii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.
(viii) The Company doesn''t have any co-owned properties or the properties (including properties for which the lease agreement
executed and disclosed as ''Right-of-Use Assets'' in standalone financial information) title deed of which are held by the others.
(ix) The Company has not granted any Loans or Advances in the nature of loans to promoters, Directors, KMPs and the related parties
(as defined under Companies Act, 2013), either severally or jointly with any other person.
(x) The Company has used the borrowings from the banks only for its intended purpose during the financial year.
(xi) The Company did not have any transaction with companies struck off under Section 248 of the Companies Act, 2013 or Section 560
of Companies Act, 1956 during the current and previous financial year.
56 Previous years'' figures have been re-grouped/ re-classified wherever necessary, to confirm to current period''s classification in order to
comply with the requirements of the amended Schedule III to the Companies Act, 2013.
For Ajmera And Ajmera For and on behalf of the Board of Directors
Chartered Accountants Fabtech Technologies Limited
Firm Registration No.: 018796C CIN: U74999MH2018PLC316357
Sourabh Ajmera Hemant Mohan Anavkar Amjad Adam Arbani
Partner Director Director
Membership No: 166931 DIN: 00150776 DIN: 02718019
UDIN: 24166931BKFCBD5198
Place: Mumbai
Date: July 30, 2024
Guman Mal Jain Neetu Sunil Buchasia
Chief Financial Officer Company Secretary
Membership No: ACS 61496
Ashwani Singh
Chief Executive Officer
Place: Mumbai
Date: July 30, 2024
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