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అకౌంట్స్ గమనికలుRMC Switchgears Ltd.
(k) Provisions, Contingent Liabilities and Contingent
Assets
A provision is recognised if, as a result of a past event, the
Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle
the obligation.
Provisions for onerous contracts are recognized when
the expected benefits to be derived by the Company
from a contract are lower than the unavoidable costs of
meeting the future obligations under the contract.
A disclosure for contingent liabilities is made where
there is a possible obligation or a present obligation
that may probably not require an outflow of resources
or an obligation for which the future outcome cannot be
ascertained with reasonable certainty. When there is a
possible or a present obligation where the likelihood of
outflow of resources is remote, no provision or disclosure
is made.
Contingent assets are neither recognized nor disclosed
in financial statements.
(l) Property, plant and equipment (PPE)
Property, plant and equipment (PPE) are capitalized on
the day they are ready for use and are stated at cost less
accumulated depreciation and accumalated impairment
losses, if any.
The cost of an item of property, plant and equipment
comprises its purchase price, including import duties
and non-refundable purchase taxes, after deducting
trade discounts and rebates, any directly attributable
costs of bringing the asset to its working condition for
its intended use and estimated costs of dismantling and
removing the item and restoring to the site on which it is
located.
If significant parts of an item of property, plant and
equipment have different useful lives, then they are
accounted for as separate items (major components)
of property, plant and equipment. Subsequent costs are
included in the assets carrying amount or recognized as
a separate asset, as appropriate only if it is probable that
the future economic benefits associated with the item
will flow to the Company and that the cost of the item
can be reliably measured.
Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These are
included in the Statement of Profit and Loss.
Assets which are not ready for their intended use are
disclosed under Capital Work-in-Progress.
(i) Intangible Assets
Intangible assets are carried at cost less any accumulated
amortisation and accumulated impairment losses, if
any.
Transition to Ind AS
On transition to Ind AS, the Company has elected to
continue with the net carrying value of all of its property,
plant and equipment and Intangible Assets recognised
as at April 1, 2024 measured as per the previous GAAP
and use that net carrying value as the deemed cost of the
property, plant and equipment.
(ii) Depreciation and Amortization:
Depreciation is provided on the straight line method
applying the useful lives prescribed in part C of Schedule
II to the Companies Act, 2013.
The range of estimated useful lives of Property, plant
and equipments are as under:
(m) Inventories
Inventory of raw material, stores, spares, semi-finished
goods are valued at lower of cost and net-realizable
value. Cost is determined on the basis of FIFO/Weighted
Average Method. Inventory of rejected material is valued
at cost or net-realizable value whichever is lower. Work-
in-progress generally includes cost of direct material,
labour cost and other manufacturing overheads.
(n) Trade and Other Payables
These amounts represent liabilities for goods and
services provided to the Company prior to the end
of financial year which are unpaid. Trade and other
payables are presented as financial current liabilities
unless payment is not due within 12 months after the
reporting period. They are recognised initially at their
fair value and subsequently measured at amortised cost
using the effective interest method.
(o) Borrowings
Borrowings are initially recognised at fair value, net of
directly attributable transaction costs. Subsequently,
they are measured at amortised cost using the effective
interest rate method. Any difference between the
net proceeds received and the amount repayable is
recognised in the Statement of Profit and Loss over the
tenure of the borrowing using the effective interest rate
method.
(p) Share Capital
Equity Share Capital
Issuance of ordinary shares are recognised as equity
share capital in equity. Incremental costs directly
attributable to the issuance of new equity shares are
recognised as a deduction from equity, net of tax effects,
if any.
(q) Earning per share
Basic earnings per share
Basic earnings per share is calculated by dividing the
profit attributable to owners of the Group by the weighted
average number of equity shares outstanding during the
financial year.
Diluted earnings per share
Diluted earnings per share is calculated by adjusting the
weighted average number of equity shares outstanding
for the effects of all dilutive potential equity shares, if
any. Where there are no dilutive potential equity shares
outstanding during the year, diluted earnings per share
is the same as basic earnings per share.
liiil Terms and Rights attached to equity shares:
The Company has only one class of equity shares having a face value of Rs.10 per share. Each holder of equity shares is entitled to one
vote per equity share. A member shall not have any right to vote whilst any call or other sum shall be due and payable to the Company
in respect of any of the shares of such member. All equity shares of the Company rank pari passu in all respects including the right
to dividend. The dividend is recommended by the Board of Directors and declared by the members at the ensuing Annual general
Meeting.
Footnotes for nature and purpose of reserve:
(i) Securities Premium
Securities premium was created on issue of shares. This reserve is being utilised in accordance with provisions of the Companies
Act, 2013.
(ii) Retained Earnings
Retained earnings are the profits that the companyhas earned till date less any transfers to General Reserve, dividends or other
distributions to shareholders. Retained earnings includes re-measurement loss/(gain) on defined benefit plans, net of taxes that
will not be reclassified to statement of profit and loss. Retained earnings is a free reserve available to the Company.
Footnote (i| Details of Securities given against loans
a) GECL from PNB.
Secured by way of first charge on the fixed assets of the company, both present and future, situated at Tehsil Chaksu, Jaipur
and personal guarantees of Ashok Kumar Agarwal, Ankit Agarwal and Neha Agarwal, Directors of The Company. The loan is
also secured by collateral security of immovable properties located at Plot No. B-11(B&C), Malviya Industrial Area, Jaipur and
Khasra No.157, 163 & 164, Village Badodiya, Chaksu Jaipur (owned by company/ Shri Ankit Agarwal - Director), Apartment no.
1302, type 3 BHK-Sky Villa on 13th Floor in wing no.1 in ''The Crest'' situated at Airport Enclave Scheme, Tonk Road, Durgapura,
Jaipur (owned by RMC Switchgears Limited) and Plot No. 84 & 85, Amrit Nagar, Jaipur (owned by Shri Ankit Agarwal, Director)
on pari-passu basis with The Federal Bank Ltd. , Punjab National Bank, Canara Bank.
b) SIDBI Loan - Solar Power Plant 140.10 Lakhs
Secured by way of first charge by way of hypothecation in favour of plant, machinery, equipment, tools, spares, accessories and
all other assets of the borrower which have been or proposed to be acquired under the project scheme together with extension
of first charge with SIDBI on the duly discharged Fixed Deposits aggregating to Rs. 169.11 lakh placed with SIDBI until full
repayment of the loan and other dues and the joint and several personal guarantees of Mr. Ankit Agrawal, Mr. Ashok Kumar
Agarwal and Mrs. Neha Agrawal.
c) SIDBI Loan - Solar Power Projcet 191 Lakhs
Secured by way of first charge on movable fixed assets financed under the project together with lein on FDRs aggregating to Rs.
57.30 lakh placed with SIDBI, and charge on assets financed under the earlier ARISE Scheme and and joint and several personal
guarantees of Mr. Ankit Agrawal, Mr. Ashok Kumar Agarwal and Mrs. Neha Agrawal.
d) SIDBI Loan - Solar Rooftop Project 1877.77 Lakhs
Secured by way of first charge on plant and machinery and other assets acquired/proposed to be acquired under the project, and
lien on FDRs aggregating to Rs. 66 lakh placed with SIDBI and joint and several personal guarantees of Mr. Ankit Agrawal, Mr.
Ashok Kumar Agarwal and Mrs. Neha Agrawal.
e) SIDBI Loan - Plant & Machinary 300 Lakhs
Secured by way of first charge on plant and machinery and other movable assets acquired/proposed to be acquired under the
project, charge on existing movable assets financed by SIDBI, lien/charge on FDRs amounting to Rs. 50 lakh placed with SIDBI,
and personal guarantees of Mr. Ankit Agrawal, Mr. Ashok Kumar Agarwal and Mrs. Neha Agrawal.
f) SIDBI Loan - Plant & Machinary 1070 Lakhs
Secured by way of first charge on plant and machinery and other movable assets acquired/proposed to be acquired under the
project, extension of charge on existing movable assets charged to SIDBI, lien/charge on FDRs aggregating to Rs. 321 Lakhs
placed with SIDBI, and joint and several personal guarantees of Mr. Ankit Agrawal, Mr. Ashok Kumar Agarwal and Mrs. Neha
Agrawal.
g) SIDBI Loan - Plant & Machinary 114 Lakhs
Secured by extension of charge on FDRs placed with SIDBI and extension of first charge on the Company''s movable assets,
including plant and machinery, equipment, furniture and fixtures, already charged to SIDBI and further secured by irrevocable
and unconditional joint and several personal guarantees of Mr. Ashok Kumar Agarwal, Mr. Ankit Agrawal and Mrs. Neha Agrawal.
h) Vehicles loans
Vehicle loans are secured by hypothecation of the respective vehicle.
I. Cash Credit Limits are under the consortium arrangements amongst Punjab National Bank, Canara Bank, HDFC Bank and Indian Bank
and are primarily secured by way of first pari passu charge on entire current assets, present & future, including entire stocks, book
debts, loans and advances etc. with other consortium banks.
II Cash Credit Limits are further collaterally secured by pari passu charge by creating equitable mortgage of immovable properties on
pari-passu basis with consortium members, located at :
(a) Plot No. 84 & 85, Scheme - Amrit Nagar, Teh-Sanganer, Dist. Jaipur (Owned by Director, Mr. Ankit Agrawal).
(b) Factory Land & Building Plot No. B-11 (B&C), Malviya Nagar Industrial Area, Jaipur (owned by RMC Switchgwears Limited).
(c) Village Badodiya, Khasra No. 157,163 & 164, Chaksu, Jaipur (owned by RMC Switchgwears Limited).
(d) Apartment/ Flat no. 1302 situated at 13th Floor in Wing-1, ''The Crest'' situated at Airport Enclave Scheme, Tonk Road,
Durgapura, Jaipur (owned by RMC Switchgears Limited).
(e) Plot No. 1, 2,3 & 4 Residential scheme Royal Celebrity Homes, Village: Jaisinghpura, Bas Bhankrota, Sanganer, Jaipur
(Owned by Director, Mr. Ankit Agrawal).
The amounts are unsecured and are usually paid within 45 days of recognition.
Refer Note 31 for related party payables.
Parties covered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) have been identified on the basis
of information available with the Company. Disclosures as per Section 22 of the Micro, Small and Medium Enterprises Development
(MSMED) Act, 2006 are as follows:
(A) Defined Contribution Plans
The company recognises contribution payable to the provident fund and employee state insurance scheme as an expenditure, when an
employee renders the related service. The company has no obligation, other than the contribution payable to the funds. The company''s
contribution to defined contribution plans are charged to the Statement of Profit & Loss as incurred.
For the purpose of the Company''s capital management, capital includes issued equity share capital, securities premium and Retained
Earnings.
The primary objective of the Company''s capital management is to safeguard its ability to continue as a going concern and to maintain
an optimal capital structure to support its business operations and growth.
The Company manages its capital structure through a mix of equity and internal accruals and adjusts it in light of changes in economic
conditions and business requirements.
No changes were made in the objectives, policies or processes for managing capital during the year.
(i| Fair value hierarchy
To provide indication about the reliability of the inputs used in determining fair value, the Company has classified its financial
instruments into the three levels prescribed under the accounting standard explained below:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
(ii) Valuation technique used to determine fair value
Financial instruments by category and hierarchy of measurement
(a) Liquidity Risk
The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering
cash or another financial asset. Liquidity risk management implies maintaining sufficient cash including availability of funding through
an adequate amount of committed credit facilities to meet the obligations as and when due.
The Company manages its liquidity risk by ensuring as far as possible that it will have sufficient liquidity to meet its short tem and
long term liabilities as and when due. Anticipated future cash flows, undrawn committed credit facilities are expected to be sufficient
to meet the liquidity requirements of the Company.
(i) Financing arrangements
The Company has access to the following undrawn borrowing facilities as at the end of the reporting period:
As at March 31, 2026, March 31, 2025 and March 31, 2024, the fair value of cash and bank balance, trade receivables, other current
financial assets and liabilities, borrowings, trade payables approximate their carrying amount largely due to the nature of these
instruments.
For other financial assets and liabilities that are measured at amortised cost, the carrying amounts approximate the fair value.
The Company''s principal financial liabilities comprise borrowings, trade payables and other financial liabilities. The main purpose of
these financial liabilities is to finance the Company''s operations.
The Company''s principal financial assets include trade receivables, cash and cash equivalents and other financial assets that arise
directly from its operations.
The Company is exposed to credit risk, liquidity risk and market risk. The Company''s management oversees the management of these
risks and ensures that appropriate policies and procedures are in place to identify, measure and manage such risks in accordance with
the Company''s risk management objectives.
(b) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and
commodity risk. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange
rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive
financial instruments including investments and deposits , foreign currency receivables, payables and loans and borrowings.
(i) Foreign currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign
exchange rates. The Company has foreign currency trade payables and trade receivables and is therefore exposed to foreign exchange
risk. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. Hence the operating
results and financials of the Company may be impacted due to volatility of the rupee against foreign currencies. The Company is not
significantly exposed to foreign currency risk due to their limited transaction in the foreign currency.
liil Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates.
(c) 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. The
Company is exposed to credit risks from its operating activities, primarily trade receivables, cash and cash equivalents, deposits with
banks and other financial instruments.
To manage the credit risk from trade receivables, the Company periodically assess financial reliability of customers, taking into account
the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk
limits are set accordingly. The Company considers the probability of default upon initial recognition of asset and whether there has
been a significant increase in credit risk on an ongoing basis through each reporting period.
(i) During the year, the Company received a GST demand aggregating to Rs. 29.38/- Lakhs. Based on management''s assessment and
advice received, the Company believes that it has a strong case on merits and accordingly no provision has been recognized in the
financial statements. The matter is under dispute and an appeal against the demand has been filed before the appropriate appellate
authority in subsequent to the reporting date. Accordingly, the amount has been disclosed as a contingent liability.
(ii) The Company does not expect any material adverse impact on its financial position as a result of the above matters.
D Terms and conditions of transactions with related parties:
(i) The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding
balances at the period end are unsecured and settlement occurs in cash or credit as per the terms of the arrangement.
(ii) For the year ended 31 March 2026, the Company has not recorded any impairment of receivables relating to amounts owed by
related parties (31 March 2025: Nil).
The Company is primarily engaged in the business of switchgear engineering and execution of EPC contracts for the power distribution
and transmission sector.
The Chief Operating Decision Maker (CODM) evaluates the Company''s performance and allocates resources based on the analysis of
its operations as a single operating segment. Accordingly, the Company has only one reportable segment.
The Company operates predominantly within India and does not have significant operations outside India.
(a) Employee Stock Option Scheme, 2024 ("ESOP 2024â|
The Group has implemented RMC Switchgears Limited Employees Stock Purchase Scheme, 2024. The Scheme was approved by the
shareholders at the Annual General Meeting held on September 28, 2024. Under the scheme, equity shares of the Company are issued
to employees at a price determined by the Board/Committee, which may be at a discount to the fair value of the shares. The scheme
is equity-settled.
During the year ended March 31, 2026, the Company has issued 25,050 equity shares under ESPS 2024 at a price of Rs. 50 per share
to eligible employee.
In accordance with Ind AS 102, the difference between the fair value of the shares at the date of grant and the issue price has been
recognised as employee compensation expense in the Statement of Profit and Loss. Accordingly, employee compensation expense of
Rs. 81.15 lakhs has been recognised during the year.
35 First Time adoption of Ind AS
Transition to Ind AS
These are the Company''s first financial statements prepared in accordance with Ind AS.
The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended March 31, 2026, the
comparative information presented in these financial statements for the year ended March 31, 2025 and in preparation of an opening
balance sheet at April 1, 2024 (The Company''s date of transition).
In preparaing its opening Ind AS balance sheet, the company has adjusted the amounts reported previously in financial statements
prepared in accordance with the accounting standards notified and other relevant provisions of the Act (previous GAAP or Indian
GAAP).
An explanation of how the transition from previous GAAP to Ind AS has affected the company''s financial position, financial performance
and cash flows is set out in the following tables and notes.
A. Exceptions and exemptions availed
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous
GAAP to Ind AS.
A.1 Ind AS optional exemptions
A.1.1 Deemed cost
Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all its property, plant and equipment as
recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as
its deemed cost as at the date of transition to Ind AS after making necessary adjustments. This exemption has also been used for
intangible assets covered by Ind AS 38 Intangible Assets.
Accordingly, the compnay has elected to measure all its property, plant and equipment, intangible assets at their previous GAAP
carrying value.
A.1.2 Investments in subsidiaries
As per Ind AS 27, the company has an option to value its investments in subsidiaries at Previous GAAP Value or Fair Value as deemed
cost . The company has opted for Previous GAAP values as per exemptions available on transition.
A1.3 Fair value measurement of financial assets or liabilities at initial recognition
Ind AS 109 initially recognises financial assets and liabilities at fair value and if fair value differes from transaction price , the difference
is recognsied as gain or loss. The company has elected to apply these requirements of initial recognition prospectively to transactions
entered on or after the date of transition.
A.2 Ind AS mandatory exceptions
A. 2.1 Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of facts and circumstances that
exist at the date of transition to Ind AS.
B. Reconciliations between previous GAAP and Ind AS
Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables
represent the reconciliations from previous GAAP to Ind AS.
C Notes to first time adoption
a Deferred Revenue Expenditure
Under previous GAAP, certain expenses were carried forward as deferred revenue expenditure and amortised over a period of time.
On transition to Ind AS, such deferred revenue expenditure does not meet the definition of an asset in accordance with Ind AS.
Accordingly, the carrying amount of Rs.12.58 lakhs has been adjusted against retained earnings as at the date of transition.
Since Deferred Revenue Expenditure is written off on transition , the amortization charged to PL in the Previous GAAP of Rs. 12.58
lakhs is reversed in PL for the year ended March 31, 2025.
b Financial liabilities measured at amortised cost - transaction costs
Under previous GAAP, processing fees incurred in respect of borrowings were recognised as an expense in the statement of profit and
loss.
On transition to Ind AS, such costs are treated as transaction costs and are adjusted to the carrying amount of the related borrowings
and amortised over the tenure of the loan using the effective interest rate method in accordance with Ind AS 109.
Accordingly, processing fees amounting to Rs. 5.36 Lakhs as expense under previous GAAP have been reversed and adjusted to the
carrying amount of borrowings as at the date of transition. The remaining amount of Rs. 0.95 Lakh has been recognised as finance
cost for the year ended March 31, 2025.
c Deferred tax
Deferred tax has been recomputed on transition to Ind AS in accordance with Ind AS 12, considering the temporary differences arising
between the carrying amounts of assets and liabilities as per Ind AS and their respective tax bases. The resulting impact has been
recognised in retained earnings as at the date of transition and in the statement of profit and loss for the year ended March 31, 2025.
d Revenue
Under previous GAAP, liquidated damages (LD) were presented as part of other expenses. On transition to Ind AS, such amounts
have been reclassified and adjusted against revenue in accordance with Ind AS 115, as these represent variable consideration. This
reclassification has no impact on the profit for the year.
e Share-based payments (ESPS)
Under previous GAAP, shares issued under the Employee Stock Purchase Scheme (ESPS) were accounted for at the issue price
without recognising any employee compensation expense.
On transition to Ind AS, the Company has accounted for such transactions in accordance with Ind AS 102, which requires recognition
of employee share based payment expense based on the fair value of equity instruments granted. Accordingly, the difference between
the fair value of shares and the issue price has been recognised with a corresponding adjustment within equity.
This adjustment results in a reclassification within equity and does not have any impact on total equity.
f Remeasurement of defined benefit obligations
Under Ind AS, Remeasurement i.e. actuarial gains and losses, excluding amounts included in the net interest expense on the net
defined benefit liability are recognised in Other Comprehensive Income instead of statement of profit or loss. Under the previous
GAAP, these Remeasurement gain were forming part of the statement of profit or loss for the year. As a result of this change, profit
for the year ended March 31, 2025 has been decreased by Rs. 23.45 lakhs and the same has been recognised in Other Comprehensive
Income. There is no impact on the equity as at March 31, 2025.
g Retained Earnings
Retained Earnings as at March 31, 2025 and March 31, 2024 has been adjusted consequent to the above Ind AS transition adjustments.
37 Other Statutory information
(i) There are no immovable properties included in Property, Plant and Equipment, whose title deeds are not held in the name of the
Company.
(ii) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding
any benami property.
(iii) The Company does not have any transactions with companies struck off.
(iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority,
as per the available information.
(vi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(vii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company
(Ultimate Beneficiaries) or
(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(viii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party
(Ultimate Beneficiaries) or
(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
(ix) The Company does not have any such 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.
(x) The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with
the books of accounts.
(xi) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken as at
Balance sheet date.
(xii) Previous year''s figures have been regrouped / rearranged wherever necessary to conform to the current year''s classification.
(xiii) The financial statements were approved for issue by the Board of Directors on May 29, 2026.
a) Sales Revenue is recognized when the risk and rewards of ownership are passed on to the
customers, which is generally on dispatch.
b) Revenue from turnkey contracts is recognized based on the stage of completion determined
with reference to the costs incurred on contracts and their estimated total costs. Provision for
foreseeable losses/ construction contingencies on turnkey contracts is made on the basis of
technical assessments of costs to be incurred and revenue to be accounted for.
c) Price Escalation and other claims or variations in the contract work are included in contract
revenue only when:
i) Negotiations have reached to an advanced stage such that it is probable that customer will
accept the claim: and
ii) The amount that is probable will be accepted by the customer and can be measured reliably,
x) Use of Estimates:
The preparation of financial statements requires the management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, as of the date of financial
statements and the reported amount of revenue and expenses of the year. Actual results could
differ from these estimates. The difference between the actual results and estimates are
recognized in the period in which the results are known/materialized.
xi) Borrowing Costs
Borrowing costs attributable to the acquisition, construction or production of qualifying assets
are added to the cost of those assets as Pre-operative Expenses.AII other borrowing costs are
recognized in Statement of Profit and Loss in the period in which they are incurred. Interest
Capitalized during the year is NIL (Previous year Rs. Nil/-)
Xii Employees Benefits:
a) Defined Contribution Plans:
Employees'' own and Employer''s contribution to Provident Funds are contributed bycompany
monthly at a determined rate. These contributions are remitted to theEmployees'' Provident
Fund Organization, India and is charged to Profit and LossAccount on accrual basis.
b) Defined Benefits Plans:
Gratuity: The company provides for gratuity, a defined benefit retirement plan, for its
employees. The plan provides for lump sum payments to the eligible employees at retirement,
death, while in employment, or on termination of employment or otherwise as per the
provisionsof the Payment of Gratuity Act, 1972. The company accounts forliability of future
gratuity benefits based on an external actuarial valuation on projected unit credit method carried
out annually for assessing liability as at the balance sheet date.
xiii) Segment Reporting :
a) Primary Segment:
Company is engaged in "Switch Gear Engineering'' and "EPC contracts for power distribution /
transmission sectorâ which relate to one primary segment i.e. Power.
b) Secondary Segment:
The Company operates predominantly within the geographical limits of India and accordingly
secondary segments have not been considered.
xiv) Deferred Revenue Expenditure:
Deferred Revenue Expenditure incurred is being written off over the period of 5 years
xv) Earnings per Share
Basic earnings per share are calculated by dividing the net profit/ loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year.
During the financial year, the Company has allotted 2,18,500 equity shares on a preferential
basis on 06th December 2024 at an issue price of Rs. 687/- per share, aggregating to a total
consideration of Rs. 15,01,09,500 (Rupees Fifteen Crore One Lakh Nine Thousand and Five
Hundred only).
Further, the Company has allotted 25,000 equity shares under the Employee Stock Purchase
Scheme (ESPS), 2023 to eligible employees during the year.
xvi) Corresponding Figures of previous year have been reclassified/regrouped or rearranged to
make them comparable with the current year figures.
xvii) Disclosures pursuant to Section 186(4) of the Companies Act, 2013:
xvi) Other statutory information:
1. The Company does not have any benami property, where any proceeding has been initiated or
pending against the Company for holding any benami property.
2. The Company has not traded or invested in Crypto currency or Virtual Currency during the
financial year.
3. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company (ultimate beneficiaries) or
(b) provide any guarantee, security.or the like to or on behalf of the ultimate beneficiaries
4. The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(funding party) with the understanding (whether recorded in writing or otherwise) that the
Companyshall:
(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.
5. The Company does not have any such 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.
6. The Company has complied with the number of layers prescribed under clause (87) of section 2 of
the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
7. The Company is not declared willful defaulter by and bank or financial institution or lender during
the year.
8. The Company does not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period.
9. Summary of reconciliation of quarterly returns filed by the company with banks & books of
accounts:
The discrepancies are as a result of our practice of submitting statement on monthly basis within
15 days from the close of each month. These statements are necessary to ensure timely
submission while adhering to regularly deadlines. However, it is important to emphasize that
these discrepancies have not led to any undue advantage or access to excess credit facilities from
the banks. Our commitment to transparency and compliance remains steadfast.
10. The Company has used the borrowings from banks and financial institutions for the specific
purpose for which it was obtained.
11. The title deeds of all the immovable properties, (other than immovable properties where the
Company is the lessee and the lease agreements are duly executed in favour of the Company)
disclosed in the financial statements included in property, plant and equipment and capital work-
in-progress are held in the name of the Company as at the balance sheet date.
12. The Company does not have any transactions with companies which are struck off.
13. Expenditure incurred on Corporate Social Responsibility(CSR) activities:
For & on behalf of the Board of
As per our separate report of even date Directors
For Rakesh Ashok & Company RMC Switchgears Limited
FRN 011273C
ft Ashok Kumar Agrawal
/vvt\J I ^ (⢠[FRN - D1t273pj''* I Chairman Cum Managing Director
--- \ 1/ / (DIN: 00793152)
Membership Number : 407189 4fkit Agarwal
UDIN: CEO cum Whole Time Director
Place: Jaipur (DIN: 00793035)
Dated: 20th May, 2025
(i) Terms and Rights attached to equity shares:
The Company has only one class of equity shares having a face value of ''10 per share. Each holder of equity shares is entitled to one vote per equity share. A member shall not have any right to vote whilst any call or other sum shall be due and payable to the Company in respect of any of the shares of such member. All equity shares of the Company rank pari passu in all respects including the right to dividend. The dividend is recommended by the Board of Directors and declared by the members at the ensuing Annual general Meeting.
(ii) Company doesn''t have any holding or ultimate holding Company.
Nature and purpose of reserve Retained Earnings
Retained earnings represents cumulative profits of the company and effects of remeasurement of defined benefit obligations. This reserve can be utilised in accordance with the provisions of Companies Act, 2013.
Securities Premium
The Securities premium was created on issue of shares. This reserve will be utilised in accordance with provisions of the Act. Capital Reserve
The purpose for which a capital reserve is created is for preparing the company for sudden events like inflation, business expansion, Govt Subsidy to be returned etc.
(A) Nature of Securities:
I. GECL from PNB and Federal Bank
Secured by way of first charge on the fixed assets of the company, both present and future, situated at Tehsil Chaksu, Jaipur and personal guarantees of Ashok Kumar Agarwal, Ankit Agarwal and Neha Agarwal, Directors of The Company. The loan is also secured by collateral security of immovable properties located at Plot No. B-11(B&C), Malviya Industrial Area, Jaipur and Khasra No.157, 163 & 164, Village Badodiya, Chaksu Jaipur (owned by company), Apartment no. 1302, type 3 BHK-Sky Villa on 13th Floor in wing no.1 in ''The Crest'' situated at Airport Enclave Scheme, Tonk Road, Durgapura, Jaipur (owned by Mrs.Neha Agarwal) and Plot No. 84 & 85, Amrit Nagar, Jaipur (onwed by Shri Ankit Agarwal,Director) on pari-passu basis with The Federal Bank Ltd.
II. SIDBI Loan- plant and Machinery
SIDBI Loan is secured by way of first charge in the shape hypothecation on the plant and machinery to be bought out of the term loan disbursed and further secured by lien on the ''Fixed Deposits'' amounting '' 57.30 Lacs plus accrued interest thereon and the personal guarantees of Ashok Kumar Agarwal and Ankit Agarwal and Smt. Neha Agarwal, Directors of Company,
III. SIDBI Loan- Solar plant
SIDBI Loan is secured by way of first charge in the shape hypothecation on the plant and machinery to be bought out of the term loan disbursed and further secured by lien on the ''Fixed Deposits'' amounting '' 66 Lacs plus accrued interest thereon and the personal guarantees of Ashok Kumar Agarwal and Ankit Agarwal and Smt. Neha Agarwal, Directors of Company,
Iv. vehicles loans
Vehicle loans are secured by hypothecation of the respective vehicle.
v. punjab national Bank- Term Loan for plant & Machinery
Loans for plant & machinery are secured by hypothecation of the respective machinery created from the loan.
Nature of Securities:
I First charge on Raw Material, Work-in Progress, Stocks, Finished Good, book debts and entire other Current Assets ofthe Company''s on Pari-Passu with consortium Banks (Present & Future)
II Cash Credit under the consortium arrangements between Punjab National Bank and The Federal Bank Ltd. are collaterally secured by way of equitable mortgage of immovable properties loctated at Plot No. B-11(B&C), Malviya Industrial Area, Jaipur and Khasra No.157, 163 & 164, Village Badodiya, Chaksu Jaipur (owned by company), Apartment no. 1302, type 3 BHK-Sky Villa on 13th Floor in wing no.1 in ''The Crest'' situated at Airport Enclave Scheme, Tonk Road, Durgapura, Jaipur (owned by Mrs.Neha Agarwal) and Plot No. 84 & 85, Amrit Nagar, Jaipur (onwed by Shri Ankit Agarwal,Director) on pari-passu basis with The Federal Bank Ltd.
|
note 28 : contingent LIABILITIES And Commitments |
(Amount in '' Lacs) |
|
|
particulars |
For the year ended 31st March, 2023 |
For the year ended 31st March, 2022 |
|
a) Tax Matters pending with CESTAT |
18.23 |
18.23 |
|
b) Pending Litigation against the company |
5.20 |
0.00 |
|
c) Duty on export obligation under EPCG Scheme on the obligaation yet to be fulfilled |
92.94 |
114.54 |
|
TOTAL |
116.37 |
132.77 |
NOTE 30 : DISCLOSURES SPECIFIED BY MSMED ACT, 2006
The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, disclosure relating to amounts unpaid as at the year end together with interest paid/payable to Micro Enterprises and Small Enterprises and others, under this Act could not be given. As per "The Micro, Small and Medium Enterprises Development Act, 2006, the company is required to identify the Micro, Small and Medium Suppliers and pay interest on overdue beyond the specified period. The Management believes that there are no overdue principal amount/interest payble amount for delayed payment to such vendors at the Balance Sheet Date. Accordingly, there is no liability for interest in respect of payments made during the year or on balances brought forward from previous year.
The accompanying notes are an integral part of the financial statements
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