OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Prospective investors should read the following discussion of our financial condition and results of operations together with the Restated Consolidated and Standalone Financial Information, which are included in “Financial Statements” on page 349, along with “Industry Overview” and “Our Business” on pages 181 and 258, respectively.
This section contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in such forward-looking statements. For details, see “Forward-Looking Statements” on page 22.
All references in this section to a particular Financial Year or FY or Fiscal, unless stated otherwise, are to the 12-month period ended on March 31 of that particular calendar year.
Prior to November 13, 2024, our Company did not have any subsidiaries. Unless stated otherwise, all financial and statistical information as at and for the year ended March 31, 2025 and post March 31, 2025 is given on a consolidated basis and all financial and statistical information as at andfor the years ended March 31, 2024 and 2023 is given on a standalone basis.
We have included certain non-GAAP financial measures and other performance indicators relating to our financial performance and business in this section. Such measures and indicators are not standardised terms and hence a direct comparison of these measures and indicators between companies may not be possible. For further details, see “Certain Conventions, Presentation of Financial, Industry and Market Data and Currency of Presentation - Non-GAAP Financial Measures” on page 20.
Unless otherwise indicated, industry and market data used in this section have been derived from Technopak Report, which was prepared by Technopak. We commissioned Technopak to prepare the Technopak Report specifically for the purpose of the Offer for an agreed fee pursuant to the engagement letter dated May 20, 2024, as amended pursuant to a letter of authorisation dated June 11, 2025. For more details on the Technopak Report, see “Certain Conventions, Presentation of Financial, Industry and Market Data and Currency of Presentation - Industry and Market Data” on page 20. A copy of the Technopak Report will be available on our Companys website at https://www.alltimeplastics. com/files/IndustryReport.pdf
Overview
For an overview of our business, see “Our Business - Overview" on page 258.
Significant Factors Affecting our Results of Operations and Financial Condition
Our results of operations have been, and will be, affected by many factors, some of which are beyond our control. The following is a discussion of certain factors that have had, and we expect will continue to have, a significant effect on our results of operations and financial condition.
Our Revenue from our Top Four Customers and in Particular our Top Customer
Our business largely depends upon our top four customers and in particular our top customer. For details regarding our revenue from our top 10 customers for Fiscals 2025 (consolidated), 2024 (standalone) and 2023 (standalone), see “Our Business - Customers” on page 290.
Our Company and Pyramid Plastics, the entity whose business/ operational assets were acquired by our Company, have been selling products to IKEA, our largest customer in Fiscal 2025 (consolidated), for more than 27 fiscal years, Asda, our second largest customer in Fiscal 2025 (consolidated), for more than 14 fiscal years, Michaels, our third largest customer in Fiscal 2025 (consolidated), for more than four fiscal years, and Tesco, our fourth largest customer in Fiscal 2025 (consolidated), for more than 17 fiscal years. For more details, see “Risk Factors - We do not have long-term agreements for the sale of our products with a majority of our customers. If our customers choose not to source their requirements from us, it could have a material adverse effect on our business, financial condition, results of operations and cash flows beginning on page 39.
Volume of Products Sold and the Average Price per Tonne of Products Sold
Our revenue from sale of products for a particular fiscal year primarily depends on the volume of products we sell and the average price of the products we sell in that fiscal year. While we do not set the price of our products solely on the basis of the volume of materials consumed to make that product, the volume of materials consumed to make a product has a substantial effect on the price we charge for that product. In setting a price for a product, we also take into account factors such as market demand, competitor pricing, and overall production costs. The table below set forth the volume of products sold in tonnes and the average price per tonne of products sold for the fiscal years indicated.
| Particulars | Year ended March 31, | ||
| 2025 (Consolidated) | 2024 (Standalone) | 2023 (Standalone) | |
| Volume of products sold (in tonnes) [A] | 25,843.87 | 23,402.78 | 19,787.55 |
| Average price per tonne of products sold [B = C/A] (Rs. in million) | 0.21 | 0.22 | 0.22 |
| Sale of plastic products [C] (Rs. in million) | 5,553.25 | 5,111.09 | 4,416.08 |
Cost of Materials Consumed (including Changes in Inventories of Finished Goods and Work in Progress)
The cost of materials consumed (including changes in inventories of finished goods and work in progress) represents a significant percentage of revenue from our sale of products. The table below set forth our cost of materials and changes in inventories of finished goods and work-in-progress and the total of the same and the total as a percentage of revenue from sale of products for the fiscal years indicated.
| Year ended March 31, | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| (Rs. in million, except percentages) | |||
| Cost of materials consumed [A] | 3,471.16 | 2,992.45 | 2,806.16 |
| Changes in inventories of finished goods and work-inprogress [decrease/(increase)] [B] | (118.95) | 50.30 | (56.22) |
| Total [C = A + B] | 3,352.21 | 3,042.75 | 2,749.94 |
| Total as a percentage of sale of products [D = C/E] (%) | 60.36% | 59.53% | 62.27% |
| Sale of products [E] | 5,553.25 | 5,111.09 | 4,416.08 |
The prices of the raw materials we need are affected by numerous factors beyond our control, including, among others, the price of oil, production capacity and transportation costs. Plastic raw materials have historically fluctuated to some extent in line with crude oil price fluctuations (source: TechnopakReport).
Fluctuations in global demand, supply, and currency exchange rates further exacerbate the situation, as they influence the base prices of various raw materials (source: Technopak Report).
If the prices of the raw materials we need rapidly increase, we may be unable to increase our product prices in sufficient time to fully offset increasing raw material prices. Our ability to transfer increases in raw material costs to our customers is dependent on, among others, market condition as well as pricing of similar products by our competitors. In the past, we have been successful in transferring increases in raw material costs to customers through increased product prices, although there has typically been a time lag. However, to the extent that we are not able to transfer increases in costs to our customers, or if there is a significant lag in transferring increases in costs to our customers, our business, results of operations, financial condition and cash flows could be adversely affected.
Employee Benefit Expenses
Employee benefit expenses comprise our third largest expense after cost of materials consumed. In Fiscals 2025, 2024 and 2023, our employee benefit are as presented in the table below.
| For the year ended March 31, | ||||||
| 2025 | 2024 | 2023 | ||||
| Particulars | (Consolidated) | (Standalone) | (Standalone) | |||
| Amount (Rs. in million) | Percentage of total income (%) | Amount (Rs. in million) | Percentage of total income (%) | Amount (Rs. in million) | Percentage of total income (%) | |
| Employee benefit expenses | 473.39 | 8.46 | 404.58 | 7.84 | 349.94 | 7.89 |
| Total income | 5,592.35 | 100.00 | 5,158.77 | 100.00 | 4,437.64 | 100.00 |
We seek to reduce our employee benefit expenses as a percentage of our total income by improving our operational efficiency. As our employees are located in India, rising wages in India as well as any change in applicable labour laws, would increase our costs.
Capacity Utilisation
Given the nature of our business, our profitability is partially dependent on our ability to spread fixed production costs over higher production volumes. For details regarding the combined installed capacity at our manufacturing facilities, the polymers processed and capacity utilisation for Fiscal 2025 (consolidated), 2024 (standalone) and 2023 (standalone), see “Our Business - Manufacturing” on page 278.
Our Working Capital Requirements
Our business requires a significant amount of working capital as there is a considerable time lag between the purchase of raw materials and the payment from our customers. We are, therefore, required to maintain a sufficient stock of raw materials at all times in order to meet manufacturing requirements, and have sufficient capital for our operations until we are able to recover costs upon delivery of products, which in turn affects our working capital requirements. Consequently, there could be situations where the total funds available to us may not be sufficient to fulfil our commitments, and hence we may be required to incur additional indebtedness or utilise internal accruals to satisfy our working capital requirements. The table below sets forth our Net Working Capital, trade receivables and trade payables as at March 31, 2025 (consolidated), March 31, 2024 (standalone) and March 31, 2023 (standalone) and our revenue from operations, Net Working Capital Days, Trade Receivables Days, and Trade Payables Days for the fiscal years indicated.
| Particulars | As at and for the year ended March 31, | ||
| 2025 (Consolidated) | 2024 (Standalone) | 2023 (Standalone) | |
| Net Working Capital(1)(*) (Rs. in million) | 1,135.24 | 798.68 | 842.21 |
| Revenue from operations (Rs. in million) | 5,581.67 | 5,128.53 | 4,434.86 |
| Trade receivables (Rs. in million) | 865.68 | 483.44 | 427.65 |
| Trade payables (Rs. in million) | 375.08 | 303.96 | 349.67 |
| Net Working Capital Days(2)(*) (number of days) | 74 | 57 | 69 |
| Trade Receivables Days(3) (number of days) | 57 | 34 | 35 |
| Trade Payables Days(4) (number of days) | 39 | 37 | 46 |
Notes:
(1) Net Working Capital is calculated as total current assets less (i) cash and cash equivalents, (ii) bank balances other than cash and cash equivalents, (iii) total current liabilities, excluding current borrowings ("Net Working Capital").
(2) Net Working Capital Days is calculated by dividing the number of days in the Fiscal by the working capital ratio, which is calculated as revenue from operations divided by Net Working Capital ("Net Working Capital Days ").
(3) Trade Receivables Days is calculated by dividing trade receivables at the end of the Fiscal by revenue from operations and multiplying it by the number of days in the Fiscal ("Trade Receivables Days ").
(4) Trade Payables Days is calculated by dividing trade payables at the end of the Fiscal by purchases for the Fiscal and multiplying it by the number of days in the Fiscal ("Trade Payables Days ").
(*) Non-GAAP Financial Measure.
Our working capital requirements could also increase if we are required to pay higher prices for raw materials or excessive advances for the procurement of raw materials. Some of these factors could result in an increase in our short-term borrowings. An increase in the incurrence of debt will result in an increase in our interest and debt repayment obligations. Continued increases in our working capital requirements could have a material adverse effect on our results of operations and financial condition. We could also become subject to additional covenants, which could limit our ability to access cash flows from operations and undertake certain types of transactions.
Finance Costs
The primary expense in our finance costs is interest on term loans and working capital loans from banks. The table below sets forth our finance costs, including interest on term loans and working capital loans from banks, and such costs as a percentage of total income for the fiscals indicated.
| For the year ended March 31, | ||||||
| 2025 (Consolidated) | 2024 (Standalone) | 2023 (Standalone) | ||||
| Particulars | (Rs. in million) | As a percentage of total income | (Rs. in million) | As a percentage of total income | (Rs. in million) | As a percentage of total income |
| Finance costs | 146.87 | 2.63% | 181.21 | 3.51% | 162.74 | 3.67% |
| Of which: | ||||||
| Interest on term loans and working capital loans from banks | 128.59 | 2.30% | 129.77 | 2.52% | 104.92 | 2.36% |
| Of which: | ||||||
| Interest on term loans | 79.10 | 1.41% | 75.31 | 1.46% | 57.60 | 1.30% |
| Interest on working capital loans from banks | 49.49 | 0.89% | 54.46 | 1.06% | 47.32 | 1.07% |
| Total income | 5,592.35 | 100.00% | 5,158.77 | 100.00% | 4,437.64 | 100.00% |
The table below sets forth the breakdown of our Total Borrowings by fixed and floating interest rates as at the dates indicated.
| As at March 31, | ||||||
| Particulars | 2025 (Consolidated) | 2024 (Standalone) | 2023 (Standalone) | |||
| Floating in million) | Fixed | Floating | Fixed | Floating | Fixed | |
| Borrowings: | ||||||
| From Banks | 1,434.61 | 742.15 | 734.03 | 398.08 | 634.38 | 687.05 |
| From directors and their relatives | - | - | - | 250.00 | - | 285.00 |
| Loan from customer | - | 8.35 | - | 41.35 | - | 110.95 |
| Total Borrowings | 1,434.61 | 750.50 | 734.03 | 689.43 | 634.38 | 1,083.00 |
Changes in Currency Exchange Rates
Although our Companys reporting currency is in Indian Rupees, we transact a significant portion of our business in several other currencies. Certain portions of our income and expenses are generated or incurred in other currencies and certain portions of our assets (trade receivables and cash and cash equivalents) and liabilities (trade payables) are in other currencies, such as United States Dollars (“USD”), Euros (“EUR”), Chinese Yuan (“CNY”), Japanese Yen (“JPY”), and Great Britain Pounds (“GBP”).
The table below sets forth our revenues from sale of plastic products based outside of India for the fiscal years indicated:
| For the year ended March 31, | ||||||
| 2025 (Consolidated) | 2024 (Standalone) | 2023 (Standalone) | ||||
| Particulars | Amount (Rs. in million) | Percentage of total revenue from sale of plastic product (%) | Amount (Rs. in million) | Percentage of total revenue from sale of plastic product (%) | Amount (Rs. in million) | Percentage of total revenue from sale of plastic product (%) |
| Within India | 795.84 | 14.33% | 581.80 | 11.38% | 476.20 | 10.78% |
| Outside India | 4,757.41 | 85.67% | 4,529.29 | 88.62% | 3,939.88 | 89.22% |
| Revenue from sale of plastic products | 5,553.25 | 100.00% | 5,111.09 | 100.00% | 4,416.08 | 100.00% |
The exchange rates between the Indian Rupee and the currencies in which we receive payments for such exports, primarily the USD, have fluctuated in the past and our results of operations have been affected by such fluctuations in the past and may be impacted by such fluctuations in the future. Due to our inherent net foreign currency long position, depreciation of the Indian Rupee against foreign currencies will generally have a positive effect on our reported revenues and operating income and appreciation of the Indian Rupee against foreign currencies will generally have a negative effect on our reported revenues and operating income. There can be no guarantee that such fluctuations will not adversely affect our results of operations. However, the positive effect on depreciation of the Indian Rupee may not be sustained or may not show an appreciable impact in our results of operations in any given financial period due to other variables affecting our results of operations during the same period. Moreover, we expect our cost of imported goods, such as raw materials, imported stores and spares, and other expenses incurred by us may rise during a sustained depreciation of the Indian Rupee against the USD.
Our exposure to the risk of changes in foreign exchange rates relates primarily to our operating activities (when revenue or expense is denominated in a different currency from our functional currency). We hedge a significant portion of our net foreign exchange exposure through forward contracts and foreign currency borrowings. We are exposed to foreign currency risk on the unhedged exposure of foreign currency translation of receivables and trade payables. The table below set forth our total foreign currency receivables, total trade payables, total foreign currency borrowings, the total value of our outstanding forward contracts against net receivables and borrowings, and net gain/(loss) on foreign currency transactions and translation as at and for the fiscal years indicated. For additional quantitative disclosures on foreign currency risk, see “Financial Statements - Note 48 - Financial Risk Management Objectives and Policies - (i) Market Risk - (a) Foreign Currency Risk on page 400.
| As at and for the year ended March 31, | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| in million) | |||
| Total foreign currency trade receivables | 352.83 | 157.27 | 185.48 |
| Cash and cash equivalents in foreign currency (In Exchange Earning Foreign Currency (EEFC) account and cash in hand) | 14.11 | 15.70 | 30.32 |
| Trade payables in foreign currency | (104.64) | (161.85) | (191.14) |
| Foreign currency borrowings (Current ) | (485.46) | (111.28) | (90.65) |
| Foreign currency borrowings (Non-current) | (419.88) | (254.29) | - |
| Outstanding forward contracts against net receivables and borrowings | 1,251.01 | 299.02 | 191.75 |
| Net gain/(loss) on foreign currency transactions and translation | 3.98 | 27.58 | (3JO |
Negligible Contribution of All Time Plastics Pte. Limited, the Company Subsidiary, to the Groups Consolidated Financial Condition as at March 31, 2025 and Results of Operations for the Year ended March 31, 2025
Prior to November 13, 2024, our Company did not have any subsidiaries. All Time Plastics Pte. Limited, a wholly- owned subsidiary of the Company, was incorporated on November 13, 2024 under the laws of Singapore. As per the joint venture agreement dated December 27, 2024, as amended through the amendment agreement dated February 1, 2025, executed amongst All Time Plastics Pte. Limited, our Company, Dragon Bridge Pte. Ltd and All Time Plastics Pte. Limited (the "Joint Venture Agreement"), All Time Plastics Pte. Limited shall undertake the business of enhancing the geographical reach of the products manufactured by our Company and also provide product development inputs to our Company. However, All Time Plastics Pte. Limited did not conduct any business in the year ended March 31, 2025. As such, All Time Plastics Pte. Limited effects on the Groups consolidated financial condition as at March 31, 2025 and results of operations for the year ended March 31, 2025 were negligible. For details, see Note 51 to the Restated Consolidated and Standalone Financial Information in "Financial Statements on page 407.
Pursuant to the Joint Venture Agreement, it is agreed between the parties that Dragon Bridge Pte. Ltd will subscribe to or acquire from our Company, by way of a secondary transfer, such number of shares of All Time Plastics Pte. Limited, such that the shareholding of our Company and Dragon Bridge Pte. Ltd in All Time Plastics Pte. Limited shall be 51.00% and 49.00%, respectively.
Key Performance Indicators and Certain Non-GAAP Measures
In evaluating our business, we consider and use certain non-GAAP financial measures and key performance indicators that are presented below as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures and key performance indicators are not intended to be considered in isolation or as a substitute for the Restated Consolidated and Standalone Financial Information. We present these non-GAAP financial measures and key performance indicators because they are used by our management to evaluate our operating performance. These non-GAAP financial measures are not defined under Ind AS and are not presented in accordance with Ind AS. The non-GAAP financial measures and key performance indicators have limitations as analytical tools. Further, these non-GAAP financial measures and key performance indicators may differ from the similar information used by other companies, including peer companies, and hence their comparability may be limited. Therefore, these matrices should not be considered in isolation or construed as an alternative to Ind AS measures of financial performance or as an indicator of our financial condition, results of operations or cash flows.
Set forth below are certain Ind AS financial measures, Non-GAAP financial measures and statistical measures as at the dates and for the periods indicated:
| As at and for the year ended March 31, | |||
| Particulars | 2025 (Consolidated) | 2024 (Standalone) | 2023 (Standalone) |
| Rs. in million, except as noted | Rs. in million, except as noted | Rs. in million, except as noted | |
| Revenue from operations | 5,581.67 | 5,128.53 | 4,434.86 |
| Gross Profit(1)(*) | 2,229.46 | 2,085.78 | 1,684.92 |
| EBITDA(2)(*) | 1,013.37 | 971.01 | 733.82 |
| Profit for the year | 472.94 | 447.90 | 282.70 |
| Gross Margin(3)(*) (%) | 39.94% | 40.67% | 37.99% |
| EBITDA Margin(4)(*) (%) | 18.16% | 18.93% | 16.55% |
| PAT Margin1^*1 (%) | 8.46% | 8.68% | 6.37% |
| Return on Equity(6) (*)(%) | 19.01% | 22.18% | 17.93% |
| Return on Capital Employed(7) (*)(%) | 16.99% | 22.64% | 17.16% |
| Net Debt-to-Equity Ratio(8) (*) | 0.84 | 0.65 | 0.99 |
| Inventory Turnover Ratio(9)(*) | 7.61 | 9.85 | 7.13 |
| Net Fixed Assets Turnover Ratio(10)(*) | 1.98 | 2.26 | 2.14 |
| Net Working Capital Days(11) (days) | 74 | 57 | 69 |
| Trade Receivables Days(12) (days) | 57 | 34 | 35 |
| Trade Payables Days(13) (days) | 39 | 37 | 46 |
Notes:
(1) Gross Profit is calculated as revenue from operations minus Material Cost ("Gross Profit"). Material Cost is calculated as cost of materials consumed plus changes in inventory offinished goods, stock-in-trade and work-in-progress.
(2) EBITDA is calculated as aggregate of restated profit before tax, depreciation and amortization expense andfinance costs, less other income for the year ("EBIDTA ").
(3) Gross Margin is calculated as Gross Profit expressed as a percentage of revenue from operations ("Gross Margin ").
(4) EBITDA Margin is calculated as EBITDA expressed as a percentage of revenue from operations ("EBIDTA Margin ").
(5) PAT Margin is calculated as profit for year expressed as a percentage of total income ("PAT Margin ").
(6) Return on Equity is calculated as profit for the year divided by total equity at the end of the year ("Return on Equity" or "ROE").
(7) Return on Capital Employed is calculated as earnings before interest and tax divided by Capital Employed. Earnings before interest and tax is calculated as aggregate ofprofit before tax, finance costs, less other income for the year. Capital Employed is calculated as aggregate of total equity, total borrowings less cash and cash equivalent and bank balances other than cash and cash equivalents ("Return on Capital Employed" or "ROCE").
(8) Net Debt-to-Equity Ratio is calculated as Total Borrowings (calculated as the sum of non-current borrowings and current borrowings) less cash and cash equivalent and bank balances other than cash and cash equivalents divided by total equity ("Net Debt-to-Equity Ratio ”).
(9) Inventory Turnover Ratio is calculated as revenue from operations divided by inventory at the end of the year ("Inventory Turnover”).
(10) Net Fixed Asset Turnover is calculated as revenue from sale ofproducts divided by average fixed assets (which includes property, plant and equipment) ("Net Fixed Asset Turnover Ratio”).
(11) Net Working Capital Days is calculated by dividing the number of days in the Fiscal by the working capital ratio, which is calculated as revenue from operations divided by Net Working Capital. "Net Working Capital” is calculated as total current assets less (i) cash and cash equivalents, (ii) bank balances other than cash and cash equivalents, and (iii) total current liabilities, excluding current borrowings ("Net Working Capital Days ”).
(12) Trade Receivables Days is calculated by dividing trade receivables as at the end of the year by revenue from operations and multiplying it by the number of days in the Fiscal.
(13) Trade Payables Days is calculated by dividing trade payables as at the end of the year by purchases and multiplying it by the number of days in the Fiscal.
(*) Non-GAAP Financial Measure. For a table reconciling this Non-GAAP Financial Measure to an Ind AS measure, see "— Reconciliation of Non-GAAP Financial Measures” on page 416.
Reconciliation of Non-GAAP Financial Measures
The following table sets forth our EBITDA and EBITDA Margin, which are non-GAAP financial measures, for the fiscal years indicated.
| For the year ended March 31, | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| (Rs. in million, percentages) | |||
| Profit for the year | 472.94 | 447.90 | 282.70 |
| Less: | |||
| Other income | 10.68 | 30.24 | 2.78 |
| Add: | |||
| Total tax expenses | 169.08 | 154.84 | 94.60 |
| Finance costs | 146.87 | 181.21 | 162.74 |
| Depreciation and amortisation expense | 235.16 | 217.30 | 196.56 |
| EBITDA (A) | 1,013.37 | 971.01 | 733.82 |
| Revenue from operations (B) | 5,581.67 | 5,128.53 | 4,434.86 |
| EBITDA Margin (A/B) (%) | 18.16% | 18.93% | 16.55% |
The following table sets forth our Gross Profit and Gross Margin, which are non-GAAP financial measures, for the fiscal years indicated.
| For the year ended March 31, | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| (Rs. in million, percentages) | |||
| Revenue from operations (A) | 5,581.67 | 5,128.53 | 4,434.86 |
| Less: | |||
| Cost of material consumed | 3,471.16 | 2,992.45 | 2,806.16 |
| Changes in inventories of finished goods, stock-in-trade and work-in-progress | (118.95) | 50.30 | (56.22) |
| Gross Profit (B) | 2,229.46 | 2,085.78 | 1,684.92 |
| Gross Margin (B/A) (%) | 39.94% | 40.67% | 37.99% |
The following table sets forth our PAT Margin, which is a non-GAAP financial measure, for the fiscal years indicated.
| For the year ended March 31, | |||
| Particulars | 2025 (Consolidated) | 2024 (Standalone) | 2023 (Standalone) |
| in million, percentages) | |||
| Profit for the year (PAT) (A) | 472.94 | 447.90 | 282.70 |
| Total income (B) | 5,592.35 | 5,158.77 | 4,437.64 |
| PAT Margin (A/B) (%) | 8.46% | 8.68% | 6.37% |
The following table sets forth our Return on Capital Employed, which is a non-GAAP financial measure, for the fiscal years indicated.
| As at and for the year ended March 31, | |||
| Particulars | 2025 (Consolidated) | 2024 (Standalone) | 2023 (Standalone) |
| (Rs. in million, percentages) | |||
| Profit for the year | 472.94 | 447.90 | 282.70 |
| Less: | |||
| Other Income | 10.68 | 30.24 | 2.78 |
| Add: | |||
| Total tax expenses | 169.08 | 154.84 | 94.60 |
| Finance costs | 146.87 | 181.21 | 162.74 |
| EBIT (A) | 778.21 | 753.71 | 537.26 |
| Total equity | 2,487.79 | 2,019.21 | 1,576.46 |
| Add: | |||
| Total Borrowings (non-current borrowings plus current borrowings) | 2,185.11 | 1,423.46 | 1,717.40 |
| Less: | |||
| Cash and cash equivalents | 83.59 | 106.63 | 158.57 |
| Bank balances other than cash and cash equivalents | 9.08 | 6.73 | 4.38 |
| Capital Employed (B) | 4,580.23 | 3,329.31 | 3,130.91 |
| Return on Capital Employed (RoCE) (A/B) (%) | 16.99% | 22.64% | 17.16% |
The following table sets forth our Net Debt to Equity Ratio, which is a non-GAAP financial measure, as at the dates indicated:
| As at March 31, | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| (Rs. in million, except ratios) | |||
| Non-current borrowings | 1,017.56 | 751.66 | 934.25 |
| Current borrowings | 1,167.55 | 671.80 | 783.15 |
| Total Borrowings | 2,185.11 | 1,423.46 | 1,717.40 |
| Less: | |||
| Cash and cash equivalents | 83.59 | 106.63 | 158.57 |
| Bank balances other than cash and cash equivalents | 9.08 | 6.73 | 4.38 |
| Net Debt (A) | 2,092.44 | 1,310.10 | 1,554.45 |
| Total equity (B) | 2,487.79 | 2,019.21 | 1,576.46 |
| Net Debt to Equity Ratio (A/B) | 0.84 | 0.65 | 0.99 |
The following table sets forth our Inventory Turnover Ratio, which is a non-GAAP financial measure, for the fiscal years indicated.
| As at March 31, | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| (Rs. in million, except ratios) | |||
| Revenue from operations [A] | 5,581.67 | 5,128.53 | 4,434.86 |
| Closing inventory [B] | 733.25 | 520.79 | 622.34 |
| Inventory Turnover Ratio [C = A/B] | 7.61 | 9.85 | 7.13 |
The following table sets forth our Net Fixed Asset Turnover Ratio, which is a non-GAAP financial measure, for the fiscal years indicated.
| As at March 31, | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| (Rs. in million, except ratios) | |||
| Revenue from sale of products [A] | 5,553.25 | 5,111.09 | 4,416.08 |
| Opening Property, plant and equipment [B] | 2,283.88 | 2,237.11 | 1,880.90 |
| Closing Property, plant and equipment [C] | 3,323.95 | 2,283.88 | 2,237.11 |
| Average Property, plant and equipment [D = (B+C)/2] | 2,803.92 | 2,260.50 | 2,059.01 |
| Net Fixed Asset Turnover Ratio | 1.98 | 2.26 | 2.14 |
Significant Accounting Policies
Basis of preparation and statement of compliance
(i) The Restated Consolidated and Standalone Financial Information comprising the Restated Consolidated Statement of Assets and Liabilities as at 31 March 2025, the Restated Consolidated Statements of Profit and Loss (including other comprehensive income), the Restated Consolidated Statement of Changes in Equity and the Restated Consolidated Cash Flow Statement for the year ended 31 March 2025 and the Restated Standalone Statement of Assets and Liabilities as at 31 March 2024 and 31 March 2023, the Restated Standalone Statements of Profit and Loss (including other comprehensive income), the Restated Standalone Statement of Changes in Equity and the Restated Standalone Cash Flow Statement for the year ended 31 March 2024 and 31 March 2023 and the Summary Statement of Material Accounting Policies, and other explanatory information (hereinafter referred to as the “Restated Consolidated and Standalone Financial Information”).
The Restated Consolidated and Standalone Financial Information has been approved by the Board of Directors of the Holding Company at their meeting held on July 20, 2025 and has been specifically prepared by the management as per the requirements of Section 26 of Part I of Chapter III of the Companies Act, 2013, read with Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (“ICDR Regulations”) issued by the Securities and Exchange Board of India (“SEBF), in pursuance of the Securities and Exchange Board of India Act, 1992, for inclusion in the Red Herring Prospectus (“RHP”) and Prospectus to be prepared by the Holding Company in connection with its proposed initial public offer of equity shares of Rs. 2 each of the Holding Company (referred to as the “Offer”) to be filed by the Holding Company with SEBI, National Stock Exchange of India Limited and BSE Limited (together, “Stock Exchanges”) and Registrar of Companies, Maharashtra (“ROC”).
The Restated Consolidated and Standalone Financial Information has been prepared by the management of the Holding Company to comply in all material respects with the requirements:
(a) Section 26 of Part I of Chapter III of the Companies Act, 2013 (the “Act”);
(b) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (“ICDR Regulations”); and
(c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (“ICAI”), as amended from time to time (the “Guidance Note”).
The Restated Consolidated and Standalone Financial Information have been compiled by the management from audited consolidated financial statements of the Group as at and for the year ended 31 March 2025 and the audited standalone financial statements of the Company as at and for the years ended 31 March 2024 and 31 March 2023, all of which were prepared in accordance with the Indian Accounting Standard (referred to as “Ind AS”), as prescribed under section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015, as amended, the presentation requirements of Division II of Schedule III to the Companies Act, 2013, as amended from time to time and other accounting principles generally accepted in India, which have been approved by the Board of Directors of the Holding Company at their meetings held on 04 June 2025, 16 August 2024 and 27 September 2023 respectively.
The audited financial statements referred to above have been prepared by the Holding Companys management on an accrual basis as a going concern on the basis of relevant Ind AS that are effective or elected for early adoption at the Groups reporting date, 31 March 2025.
The Restated Consolidated and Standalone Financial Information do not reflect the effects of events that occurred subsequent to the respective dates of the board meeting for the adoption of the audited financial statements referred to above.
The Restated Consolidated and Standalone Financial Information have been prepared so as to contain information / disclosures and incorporating adjustments set out below in accordance with the SEBI ICDR Regulations:
(a) adjustments to the profits or losses of the earlier year(s) and of the year in which the change in the accounting policy has taken place is recomputed to reflect what the profits or losses of those year(s) would have been if a uniform accounting policy was followed in each of these year(s), if any;
(b) adjustments for reclassification of the corresponding items of income, expenses, assets and liabilities, in order to bring them in line with the groupings as per the consolidated financial statements of the Group for the year ended 31 March 2025 and the requirements of the SEBI ICDR Regulations, if any; and
(c) the resultant impact of tax due to the aforesaid adjustments, if any.
The Restated Consolidated and Standalone Financial Information do not reflect the effects of events that occurred subsequent to the respective dates of the board meeting for the adoption of the audited financial statements referred to above.
Basis of measurement
The Restated Consolidated and Standalone Financial Information have been prepared on a historical cost basis, except for the following:
• Financial assets and liabilities are measured at fair value or at amortised cost depending on classification;
• Derivative financial instruments is measured at fair value;
• Defined benefit plans - plan assets measured at fair value; and
• Lease liability and right-of-use assets- measured at present value of future lease payment.
Consistency of accounting policy
The accounting policies are applied consistently to all the periods presented in the Restated Consolidated and Standalone Financial Information, unless otherwise stated.
Functional currency and rounding of amounts
The Restated Consolidated and Standalone Financial Information are presented in Indian Rupee (Rs.), which is also the functional currency of the Holding Company. All amounts disclosed in the Restated Consolidated and Standalone Financial Information have been rounded-off to the nearest million or decimal thereof as per the requirements of Schedule III of the Act, unless otherwise stated. Amounts less than Rs.50,000/- are presented as Rs.0.00 million. Items included in the consolidated financial statements of each of the Groups entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency) unless the use of a different currency is appropriate.
Current and non-current classification
All assets and liabilities have been classified as current and non-current as per the Groups normal operating cycle and other criteria set out in the Schedule III of the Act and Ind AS 1, Presentation of Financial Statements.
Assets:
An asset is classified as current when it satisfies any of the following criteria:
(a) it is expected to be realised in, or is intended for sale or consumption in, the Groups normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is expected to be realised within twelve months after the reporting date; or
(d) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.
Liabilities:
A liability is classified as current when it satisfies any of the following criteria:
(a) it is expected to be settled in the Groups normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is due to be settled within twelve months after the reporting date; or
(d) the Group does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
Current assets and liabilities include the current portion of assets and liabilities, respectively. All other assets and liabilities are classified as non-current. Deferred tax assets and liabilities are always disclosed as noncurrent.
Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Group has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.
Use of estimates and judgements
The preparation of Restated Consolidated and Standalone Financial Information requires management of the Holding Company to make judgements, estimates and assumptions that affect the reported assets and liabilities, revenue and expenses and disclosures relating to contingent liabilities. Management believes that the estimates used in the preparation of the Restated Consolidated and Standalone Financial Information are prudent and reasonable. Estimates and underlying assumptions are reviewed by Holding Companys management at each reporting date. Actual results could differ from these estimates. Any revision of these estimates is recognised prospectively in the current and future periods.
The following are the critical judgements and estimates:
Judgements
Leases
Ind AS 116 “Leases” requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Group makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Group considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Groups operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.
The Group also exercises the judgement in assessing whether the plant and machinery utilised exclusively for production of the goods for customer is required to be considered as finance lease. In evaluating the agreement with customers, the Group considers the factors such as control of design and use of plant and machinery at its discretion over the economic useful life of these equipment.
Provisions and contingent liabilities
The Group exercises judgement in measuring and recognising provisions and the exposures to contingent liabilities related to pending litigation or other outstanding claims subject to negotiated settlement, mediation, government regulation, as well as other contingent liabilities. Judgement is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual losses may be different from the originally estimated provision. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.
Estimates
Useful lives of property, plant and equipment, and intangible assets
Property, plant and equipment, and intangibles assets represent a significant proportion of the asset base of the Group. The charge in respect of periodic depreciation is derived after determining an estimate of an assets expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Groups assets are determined by the Management at the time the asset is acquired and reviewed periodically, including at each financial period end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.
Expected credit loss
The Group applies Expected Credit Losses (“ECL”) model for measurement and recognition of loss allowance on the following:
• Trade receivables
• Financial assets measured at amortised cost (other than trade receivables).
• Financial assets measured at fair value through other comprehensive income (“FVTOCI”).
In accordance with Ind AS 109, the Group applies ECL model for measurement and recognition of impairment loss on the trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115.
For this purpose, the Group follows ‘simplified approach for recognition of impairment loss allowance on the trade receivable balances. The application of simplified approach does not require the Group to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
As a practical expedient, the Group uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.
In case of other assets, the Group determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to twelve month ECL is measured and recognised as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognised as loss allowance.
Accounting for defined benefit plans
In accounting for post-retirement benefits, several statistical and other factors that attempt to anticipate future events are used to calculate plan expenses and liabilities. These factors include expected return on plan assets, discount rate assumptions and rate of future compensation increases. To estimate these factors, actuarial consultants also use estimates such as withdrawal, turnover, and mortality rates which require significant judgement. The actuarial assumptions used by the Group may differ materially from actual results in future periods due to changing market and economic conditions, regulatory events, judicial rulings, higher or lower withdrawal rates, or longer or shorter participant life spans.
Impairment of non-financial assets
An impairment loss is recognised for the amount by which an assets or cash-generating units carrying amount exceeds its recoverable amount. To determine the recoverable amount, management estimates expected future cash flows from each asset or cash generating unit and determines a suitable interest rate in order to calculate the present value of those cash flows. In the process of measuring expected future cash flows, Management makes assumptions about future operating results. These assumptions relate to future events and circumstances. The actual results may vary and may cause significant adjustments to the Groups assets.
In most cases, determining the applicable discount rate involves estimating the appropriate adjustment to market risk and the appropriate adjustment to asset-specific risk factors.
Management uses valuation techniques in measuring the fair value of financial instruments where active market quotes are not available. Details of the assumptions used are given in the notes regarding financial assets and liabilities. In applying the valuation techniques, Management makes maximum use of market inputs and uses estimates and assumptions that are, as far as possible, consistent with observable data that market participants would use in pricing the instrument. Where applicable data is not observable, Management uses its best estimate about the assumptions that market participants would make. These estimates may vary from the actual prices that would be achieved in an arms length transaction at the reporting date.
Property, plant and equipment Recognition and measurement
All items of property, plant and equipment, including freehold land, are initially recorded at cost. Cost of property, plant and equipment comprises purchase price, non-refundable taxes, levies, and any directly attributable cost of bringing the asset to its working condition for the intended use. The cost includes the cost of replacing part of the property, plant and equipment and borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying property, plant and equipment. Subsequent to initial recognition, property, plant and equipment other than freehold land are measured at cost less accumulated depreciation and any accumulated impairment losses. Freehold land has an unlimited useful life and therefore is not depreciated. The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable (refer to note 1.6 for more details). The Group had applied for the one-time transition exemption of considering the carrying cost on the transition date i.e., 1 April 2020 as the deemed cost under Ind As. Hence regarded thereafter as historical cost. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Items such as spare parts, stand-by equipment and servicing equipment that meet the definition of property, plant and equipment are capitalised at cost and depreciated over their useful life. Costs in nature of repairs and maintenance are recognised in the restated statement of profit and loss as and when incurred.
Advances paid towards the acquisition of property, plant and equipment outstanding at each reporting date is disclosed as capital advance under non-current assets.
Capital work-in-progress included in non-current assets comprises of direct costs, related incidental expenses and attributable interest. Capital work-in-progress are not depreciated as these assets are not yet available for use.
Depreciation
Depreciation on the property, plant and equipment (other than freehold land) is provided based on useful life of the assets as prescribed in Schedule II to the Act except for certain class of assets, based on the technical evaluation and assessment, the Group believes that the useful lives adopted by it best represent the period over which an asset is expected to be available for use. Accordingly, for these assets, the useful lives estimated by the Group are different from those prescribed in the Schedule II.
Depreciation on property, plant and equipment, which are added/disposed-off during the period/year, is provided on pro-rata basis with reference to the month of addition/deletion, in the restated statement of profit and loss.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial period end and, if expectations differ from previous estimates, the change(s) are accounted for as a change in an accounting estimate in accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors.
The estimated useful lives are as follows:
| Property, plant and equipment | Useful life |
| Buildings | 30 years |
| Plant and machinery | 15 years |
| Furniture and fixtures | 8 years |
| Office equipment | 5 years |
| Computers | 3 years |
| Vehicles | 10 years |
Leasehold improvements are amortised over the lower of lease period or estimated useful life, on straight line basis from the date that they are available for use.
De-recognition
An item of property, plant and equipment, is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the restated statement of profit and loss.
Intangible assets
Recognition and measurement
Intangible assets consists of computer software acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss, if any (refer to note 1.6 for more details). Subsequent expenditures are capitalised only when they increase the future economic benefits embodied in the specific asset to which they relate.
Amortisation
The Group amortises intangible assets with a finite useful life using the straight-line method over the following useful lives:
• Computer software 3 years
The amortisation period and the amortisation method for intangible assets with a finite useful life are reviewed at each reporting date.
Inventories
Inventories consists of raw materials and packing materials, stores, spares and consumables, work-inprogress, stock-in-trade and finished goods and are measured at the lower of cost and net realizable value after providing for obsolescence, if any.
Cost of inventories is determined on a weighted moving average basis. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and costs necessary to make the sale.
Cost includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of finished goods and work-in-progress, cost includes an appropriate share of overheads based on normal operating capacity.
Raw materials and packing materials are considered at replacement cost if the finished products, in which they will be used, are expected to be sold at or above cost.
Stores and spares are inventories that do not qualify to be recognised as property, plant and equipment and consists of packing materials, engineering spares (such as machinery spare parts), which are used in operating machines or consumed as indirect materials in the manufacturing process.
Revenue recognition
A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Group can identify each partys rights regarding the distinct goods or services to be transferred (“performance obligations”), the Group can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Group will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer.
Revenues are recorded in the amount of consideration to which the Group expects to be entitled in exchange for performance obligations upon transfer of control to the customer and is measured at the amount of transaction price allocated to that performance obligation. The transaction price of goods sold and services rendered is net of estimated incentives, returns, rebates and applicable trade discounts, allowances, Goods and Services Tax (“GST”) and amounts collected on behalf of third parties.
Sale of products
The majority of customer contracts that the Group enters into consist of a single performance obligation for the delivery of products. The Group recognise revenue from product sales when control of the product transfers, generally upon shipment or delivery, to the customer. The Group records product sales net of estimated incentives/discounts, returns, and other related charges. These are generally accounted for as variable consideration estimated in the same period the related sales occur. The methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly in the light of contractual and legal obligations, historical trends, past experience and projected market conditions. The revenue for such variable consideration is included in the Groups estimate of the transaction price only if it is highly probable that a significant reversal of revenue will not occur once any uncertainty is resolved. In making this assessment the Group considers its historical record of performance on similar contracts.
Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principle outstanding and at the effective interest rate applicable, which is the rate that discounts estimated future cash receipts through the expected life of the financial asset to that assets net carrying amount on initial recognition.
Other Income
Other Income consists of miscellaneous income and is recognised when it is probable that economic benefits will flow to the Group and amount of income can be measured reliably.
Employee benefits
Short-term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as shortterm employee benefits. Benefits such as salaries, wages etc., and the expected cost of ex-gratia are recognised in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
Defined contribution
Post-retirement contribution plans such as Employees Provident Fund, Employees Pension Scheme, Labour Welfare Fund, Employee State Insurance Corporation (“ESIC”) are charged to the restated statement of profit and loss for the year when the contributions to the respective funds accrue. The Group does not have any obligation other than the contribution made.
Defined benefit plans
Gratuity obligations
Post-retirement benefit plans such as gratuity is determined on the basis of actuarial valuation made by an independent actuary as at the reporting date. Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is recognised in other comprehensive income in the period in which they occur. Re-measurement recognised in other comprehensive income is included in retained earnings and will not be reclassified to restated statement of profit and loss.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the restated statement of profit and loss.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in restated statement of profit and loss as past service cost.
Other benefit plans
Liability in respect of compensated absences becoming due or expected to be availed within one year from the reporting date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the reporting date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method at the period-end. Actuarial gains/losses are immediately taken to the restated statement of profit and loss and are not deferred.
Taxes
Income tax expense comprises of current tax expense and deferred tax expense/benefit. Current and deferred taxes are recognised in restated statement of profit and loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity.
Current income tax
Current income-tax is the amount of tax payable on the taxable income for the period/year as determined in accordance with the provisions of the applicable income tax law. The current tax is calculated using tax rates that have been enacted or substantively enacted, at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Deferred tax
Deferred tax is recognised using the Balance Sheet approach on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor the taxable profit.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities.
Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
Group as a lessee
The Groups lease asset classes primarily consist of leases for factory buildings and commercial premises. The Group assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether: (i) the contract involves the use of an identified asset (ii) the Group has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Group has the right to direct the use of the asset.
At the date of commencement of the lease, the Group recognises a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.
The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Group changes its assessment if whether it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and cash at bank including fixed deposit with original maturity period of three months or less and short-term highly liquid investments with an original maturity of three months or less.
Cash flow statement
Cash flows are reported using the indirect method, where by profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expense associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated.
Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of managements best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
Contingencies
Disclosure of contingent liabilities is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is 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 not recognised in the Groups Financial Statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.
Fair value measurement
The Group measures financial instruments at fair value at each reporting date.
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
Classification
The Group classifies its financial assets in the following measurement categories:
• those to be measured subsequently at fair value (either through other comprehensive income, or through restated statement of profit and loss); and
• those to be measured at amortised cost. The classification depends on the entitys business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in restated statement of profit and loss or other comprehensive income. Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Group changes its business model for managing financial assets.
Initial recognition and measurement
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Group commits to purchase or sell the asset. All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through restated statement of profit and loss, transaction costs that are attributable to the acquisition of the financial asset. Trade receivables are initially recognised at transaction price as they do not contain a significant financing component.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at fair value through profit and loss:
- the asset is held within a business model whose objective is to hold assets 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.
Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at fair value through profit and loss.
All financial assets not classified as measured at amortised cost or fair value through other comprehensive income as described above are measured at fair value through profit and loss. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at fair value through other comprehensive income or as at fair value through profit and loss if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Subsequent measurement
Financial assets at amortised cost are subsequently measured at amortised cost using the effective interest method. Interest income is recognised in profit or loss. Any gain or loss on derecognition is also recognised in the restated statement of profit and loss.
Financial assets at fair value through profit and loss are subsequently measured at fair value. Net gains and/or losses, including any interest income are recognised in the profit or loss.
De-recognition
The Group de-recognises a financial asset only when the contractual rights to the cash flows from the asset expires or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.
If the Group enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not de-recognised.
Impairment of financial assets
The Group assesses at each reporting date whether a financial asset or a group of financial assets is impaired. In accordance with Ind AS 109, the Group applies the expected credit loss (ECL) model for measurement and recognition of impairment loss on trade receivables or any contractual right to receive cash or another financial asset. For this purpose, the Group follows a ‘simplified approach for recognition of impairment loss allowance on the trade receivable balances. The application of this simplified approach does not require the Group to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. As a practical expedient, the Group uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.
Financial liabilities
Classification
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value profit and loss or at amortised cost.
Financial liabilities at fair value through profit and loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit and loss. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109.
The Groups financial liabilities include trade and other payables and derivative financial instruments. Initial recognition and measurement
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
Subsequent measurement
Financial liabilities at fair value through profit and loss are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate (“EIR”) method. Gains and losses are recognised in restated statement of profit and loss when the liabilities are de-recognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the restated statement of profit and loss.
This category generally applies to interest-bearing loans and borrowings.
De-recognition
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
The Group also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in restated statement of profit and loss.
Derivative financial instruments
The Group uses derivative financial instruments, such as foreign exchange forward to hedge its foreign currency risks. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. The changes in fair value of such derivative contracts, as well as the foreign exchange gain and losses relating to monetary items are recognised in the restated statement of profit and loss. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Offsetting financial assets and liabilities
Financial assets and liabilities are offset and the net amount is reported in the restated balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.
Earnings per share
Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average numbers of equity shares outstanding during the year are adjusted for events such as bonus issue and share split. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed to be converted as of the beginning of the period, unless they have been issued at a later date.
Segment reporting
Operating segments are defined as components of an entity where discrete financial information is evaluated regularly by the chief operating decision market (“CODM”) in deciding allocation of resources and in assessing performance. The Board of Directors is its CODM. The Companys CODM reviews financial information presented on aggregated basis for the purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that the Group operates in one operating and reportable segment.
Share issue expenses
All the initial public offer related expenditures will be adjusted against the Securities Premium, in accordance with Section 52 of the Companies Act, 2013 on successful completion of the issue, to the extent any balance is available for utilisation under the Securities Premium. Any amounts, in excess of the balance in the Securities Premium account would be expensed off in the Statement of Profit and Loss.
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. During the year ended 31 March 2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Group with effect from 1 April 2024. The Group has reviewed the new pronouncements and based on its evaluation has determined that it does not have any significant impact in its Restated Consolidated and Standalone Financial Information.
New standards and amendments to existing Standards which are issued but are not yet effective and have not been early adopted by the Group
As on the date of preparation of these Restated Consolidated and Standalone Financial Information, there are no new and amended standards that are issued, but not yet effective till 31 March 2025.
Principles of consolidation
Investment in subsidiary
A subsidiary is an entity controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The net assets and results of acquired businesses are included in the consolidated financial statements from their respective dates of acquisition, being the date on which the Group obtains control. The results of disposed businesses are included in the consolidated financial statements up to their date of disposal, being the date control ceases.
The financial statements of the subsidiary are included in these consolidated financial statements from the date that control commences until the date that control ceases. The financial statements of the subsidiary used for the purpose of consolidation are drawn up to the same reporting date as that of the Group and have been prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible, in the same manner, as the Companys separate financial statements.
Non-controlling interests represent that part of the total comprehensive income and net assets of subsidiary attributable to the interest which is not owned, directly or indirectly, by the Holding Company. Non-controlling interests in the net assets of a consolidated subsidiary is identified and presented in the consolidated Balance Sheet separately within equity.
The consolidated financial statements of the Group have been combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group balances and intra-group transactions and resulting unrealised profits. Unrealised losses resulting from intra-group transactions are eliminated unless cost cannot be recovered.
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised within equity. The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised within equity.
The profit and other comprehensive income attributable to non-controlling interest of the subsidiary are shown separately in the consolidated statement of profit and loss and consolidated statement of changes in equity. Upon loss of control, the Group de-recognises the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in the consolidated profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently, it is accounted for as an equity accounted investee or as a FVTOCI or FVTPL financial asset, depending on the level of influence retained.
Principal Adjustments Made in Restating our Audited Financial Statements
For the principal adjustments we made in restating our Audited Financial Statements, see “Financial Statements - Note 50 - Statement of restatement adjustments to audited financial statements on page 404.
Description of Key Components of our Statement of Profit and Loss
Income
Our total income consists of revenue from operations and other income.
Revenue from Operations
Our revenue from operations is generated from (i) sale of products, (ii) other operating income, which includes namely (a) scrap sales; (b) export incentive; (c) service income and (d) others.
Sale of Products
We generate revenue from the sale of plastic consumerware products.
Other Income
Our other income primarily consists of interest income from banks and others, net gain on foreign currency transactions and translation, fair value gain on mutual funds, and profit on disposal of property, plant and equipment.
Expenses
Our total expenses consist of: (i) cost of materials consumed; (ii) changes in inventory of finished goods and work-in-progress, and stock-in-trade; (iii) finance cost; (iv) employee benefit expenses; (v) depreciation and amortisation expense; (vi) impairment losses on financial assets; and (vii) other expenses.
Cost of Materials Consumed
Cost of materials consumed is raw materials at the beginning of the year plus purchases of raw materials during the year less raw materials at the end of the year.
Cost of material consumed primarily consists of commodity plastics, engineering compounds and recycled components.
Changes in inventories of finished goods, work in progress and stock in trade
Changes in inventories of finished goods and work in progress indicates the difference between our opening and closing inventory of finished goods, work-in-progress, and stock in trade.
Employee Benefit Expenses
Our employee benefit expenses comprise employee salaries, wages and bonus, gratuity expenses, contribution to provident and other funds, and staff welfare expenses.
Finance Costs
Finance costs primarily consist of (i) interest on term loans and working capital loans from banks, (ii) interest on borrowings from related parties, (iii) interest expenses on financial liabilities measured at amortised cost, (iv) interest on income tax, (v) interest expenses on lease liability, and (vi) bank charges.
Depreciation and Amortisation Expense
Depreciation and amortisation expense consists of (i) depreciation of property, plant and equipment, (ii) depreciation on right-of-use assets, (iii) amortisation of intangible assets.
Impairment (reversal)/provision on financial assets This refers to the provision or reversal for loss allowance.
Other Expenses
Other expenses primarily comprise (i) contractual services, which are related to contract labour salary, (ii) freight and forwarding, which are the expenses for clearing and forwarding and transportation cost, (iii) power and fuel, which primarily relate to the cost of electricity for our factories.
Tax Expenses
Tax expenses comprise current tax and deferred tax.
Our Results of Operations
The following table sets forth a summary of our restated statement of profit and loss for the fiscal years indicated and such amounts expressed as a percentage of total income:
| For the year ended March 31, | ||||||
| Particulars | 2025 (Consolidated) | 2024 (Standalone) | 2023 (Standalone) | |||
| (Rs. in million) | As a % of total income | (Rs. in million) | As a % of total income | (Rs. in million) | As a % of total income | |
| Revenue: | ||||||
| Revenue from operations | 5,581.67 | 99.81% | 5,128.53 | 99.41% | 4,434.86 | 99.94% |
| Other income | 10.68 | 0.19% | 30.24 | 0.59% | 2.78 | 0.06% |
| Total income | 5,592.35 | 100.00% | 5,158.77 | 100.00% | 4,437.64 | 100.00% |
| Expenses: | ||||||
| Cost of material consumed | 3,471.16 | 62.07% | 2,992.45 | 58.01% | 2,806.16 | 63.24% |
| Changes in inventories of finished goods, stock-in-trade and work-in-progress | (118.95) | (2.13)% | 50.30 | 0.98% | (56.22) | (1.27)% |
| Impairment losses on financial assets | (11.22) | (0.20)% | 10.93 | 0.21% | (7.37) | (0.17)% |
| Employee benefit expenses | 473.39 | 8.46% | 404.58 | 7.84% | 349.94 | 7.89% |
| Finance costs | 146.87 | 2.63% | 181.21 | 3.51% | 162.74 | 3.67% |
| Depreciation and amortisation expense | 235.16 | 4.21% | 217.30 | 4.21% | 196.56 | 4.43% |
| Other expenses | 753.92 | 13.48% | 699.26 | 13.55% | 608.53 | 13.71% |
| Total expenses | 4,950.33 | 88.52% | 4,556.03 | 88.32% | 4,060.34 | 91.50% |
| Profit before tax | 642.02 | 11.48% | 602.74 | 11.68% | 377.30 | 8.50% |
| Tax expenses: | ||||||
| Current tax | 130.90 | 2.34% | 133.56 | 2.59% | 64.28 | 1.45% |
| Deferred tax | 38.18 | 0.68% | 21.28 | 0.41% | 30.32 | 0.68% |
| Total tax expenses | 169.08 | 3.02% | 154.84 | 3.00% | 94.60 | 2.13% |
| Profit for the year | 472.94 | 8.46% | 447.90 | 8.68% | 282.70 | 6.37% |
Fiscal 2025 (Consolidated) Compared to Fiscal 2024 (Standalone)
Revenue
Revenue from Operations
Set forth below is a table showing our revenue from operations for Fiscals 2025 (consolidated) and 2024.
| Particulars | Fiscal 2025 (Consolidated) | Fiscal 2024 (Standalone) | Percentage Increase/ (Decrease) (%) |
| in million) | |||
| Revenue from operations: | |||
| Sale of products | 5,553.25 | 5,111.09 | 8.65% |
| Other operating revenue: | |||
| Scrap sales | 12.16 | 11.11 | 9.45% |
| Export incentive | 13.35 | 0.26 | 5,034.62% |
| Service income | 2.58 | 5.79 | (55.44)% |
| Others | 0.33 | 0.28 | 17.86% |
| Total | 5,581.67 | 5,128.53 | 8.84% |
Our revenue from operations increased by 8.84% to Rs.5,581.67 million for Fiscal 2025 (consolidated) from Rs.5,128.53 million for Fiscal 2024, which increase was primarily due to a 8.65% increase in our sale of products.
Sale of Products
Our sale of products increased by 8.65% to Rs.5,553.25 million for Fiscal 2025 (consolidated) from Rs.5,111.09 million for Fiscal 2024. This increase was primarily due to a 6.91% increase in sale of products to IKEA to Rs.3,309.49 million for Fiscal 2025 (consolidated) from Rs.3,095.68 million for Fiscal 2024, which was primarily due to a 10.43% increase in the volume of products sold to 25,843.87 tonnes in Fiscal 2025 (consolidated) from 23,402.78 tonnes in Fiscal 2024.
Other Income
Other income decreased by 64.68% to Rs.10.68 million for Fiscal 2025 (consolidated) from Rs.30.24 million for Fiscal 2024, which decreased primarily due to net gain on foreign currency transactions and translation of Rs.3.98 million for Fiscal 2025 (consolidated) compared to Rs.27.58 million for Fiscal 2024.
Expenses
Cost of Materials Consumed and Changes in Inventories of Finished Goods, Stock-in-trade and Work-in-progress
Set forth below is a table showing the components of our cost of materials consumed and changes in inventories of finished goods, stock-in-trade and work-in-progress for Fiscals 2025 (consolidated) and 2024:
| Particulars | Fiscal 2025 (Consolidated) | Fiscal 2024 (Standalone) | Percentage Increase/ (Decrease) (%) |
| in million) | |||
| Cost of materials consumed: | |||
| Raw materials at the beginning of the year | 237.94 | 267.89 | (11.18)% |
| Add: Purchases during the year | 3,532.26 | 2,962.50 | 19.23% |
| Less: Raw materials at the end of the year | (299.04) | (237.94) | 25.68% |
| Cost of materials consumed [A] | 3,471.16 | 2,992.45 | 16.00% |
| Add: Changes in inventories of finished goods, work-in-progress JBL | (118.95) | 50.30 | (336.48)% |
| Cost of materials consumed (including changes in inventories) [C = A + B] | 3,352.21 | 3,042.75 | 10.17% |
| Cost of material consumed (including Changes in inventories) as % of revenue from operation [D = C/E] (%) | 60.06% | 59.33% | 1.23% |
| Revenue from operations [E] | 5,581.67 | 5,128.53 | 8.84% |
Our cost of materials consumed (including changes in inventories) increased by 10.17% to Rs.3,352.21 million for Fiscal 2025 (consolidated) from Rs.3,042.75 million for Fiscal 2024. This is primarily due to an increase in purchase during the year by 19.23% to Rs.3,532.26 million for Fiscal 2025 (consolidated) from Rs.2,962.50 million for Fiscal
2024. Our cost of material consumed as percentage of revenue from operation increased by 1.23% in Fiscal 2025 (consolidated) as compared to Fiscal 2024.
Employee Benefit Expenses
Our employee benefit expenses increased by 17.01% to Rs.473.39 million for Fiscal 2025 (consolidated) from Rs.404.58 million for Fiscal 2024. This increase is primarily due to 17.08% the increase in salaries, wages and bonus to employees to Rs.436.96 million for Fiscal 2025 (consolidated) from Rs.373.20 million for Fiscal 2024 which increase was primarily due to the increased in our number of employees increased to 690 employees at March 31, 2025 (consolidated) from 610 employees at March 31, 2024.
Finance Costs
Our finance costs decreased by 18.95% to Rs.146.87 million for Fiscal 2025 (consolidated) from Rs.181.21 million for Fiscal 2024. This decrease was primarily due to a 72.56% decrease in interest on borrowings from related parties from Rs.35.53 million for Fiscal 2024 to Rs.9.75 million for Fiscal 2025 (consolidated), which decrease was primarily due to the repayment of unsecured loan from related parties.
Depreciation and Amortisation Expense
Our depreciation and amortisation expense increased by 8.22% to Rs.235.16 million for Fiscal 2025 (consolidated) from Rs.217.30 million for Fiscal 2024, primarily due to an increase in depreciation of property, plant and equipment by 14.56% to Rs.206.28 million for Fiscal 2025 (consolidated) from Rs.180.07 million for Fiscal 2024.
Other Expenses
Our other expenses increased by 7.82% to Rs.753.92 million for Fiscal 2025 (consolidated) from Rs.699.26 million for Fiscal 2024. This increase was in line with the 8.40% increase in our total income. Our other expenses increased primarily due to a 13.37% increase in our power and fuel to Rs.107.32 million for Fiscal 2025 (consolidated) from Rs.94.66 million for Fiscal 2024 and a 10.07% increase in our contractual services to Rs.233.26 million for Fiscal 2025 (consolidated) from ^211.91 million for Fiscal 2024. The increase in power and fuel and increase contractual services were due to an increase in production to 26,230 tonnes in Fiscal 2025 (consolidated) from 22,839 tonnes in Fiscal 2024.
Tax Expenses
Our total tax expenses increased by 9.20% to Rs.169.08 million for Fiscal 2025 (consolidated) from Rs.154.84 million for Fiscal 2024. Although our profit before tax increased by 6.52% to Rs. 642.02 million for Fiscal 2025 (consolidated) from Rs. 602.74 million for Fiscal 2024, our current tax decreased by 1.99% to Rs.130.90 million for Fiscal 2025 (consolidated) from Rs.133.56 million for Fiscal 2024. This decrease was primarily due to our profit before tax for tax purposes being lower than our profit before tax as per Ind AS, which was due to higher depreciation rates in the Income Tax Act than as per the companies Act. Our tax expense as a percentage of profit before tax was 26.34% for Fiscal 2025 (consolidated) compared to 25.69% for Fiscal 2024.
Profit for the Year
Primarily for the reasons stated above, our profit for the year increased by 5.59% to Rs.472.94 million for Fiscal 2025 (consolidated) from Rs.447.90 million for Fiscal 2024.
Fiscal 2024 (Standalone) Compared to Fiscal 2023 (Standalone)
Revenue
Revenue from Operations
Set forth below is a table showing our revenue from operations for Fiscals 2024 and 2023.
| Particulars | Fiscal 2024 (Standalone) | Fiscal 2023 (Standalone) | Percentage Increase/ (Decrease) (%) |
| in million) | |||
| Revenue from operations: | |||
| Sale of products | 5,111.09 | 4,416.08 | 15.74 |
| Other operating revenue: | |||
| Scrap sales | 11.11 | 10.27 | 8.18 |
| Export incentive | 0.26 | 0.39 | (33.33) |
| Service income | 5.79 | 6.88 | (15.84) |
| Others | 0.28 | 1.24 | (77.42) |
| Total | 5,128.53 | 4,434.86 | 15.64 |
Our revenue from operations increased by 15.64% to Rs.5,128.53 million for Fiscal 2024 from Rs.4,434.86 million for Fiscal 2023, which increase was primarily due to a 15.74% increase in our sale of products.
Sale of Products
Our sale of products increased by 15.74% to Rs.5,111.09 million for Fiscal 2024 from Rs.4,416.08 million for Fiscal 2023. This increase was primarily due to a 19.24% increase in sale of products to IKEA to Rs.3,095.68 million for Fiscal 2024 from Rs.2,596.25 million for Fiscal 2023, which was primarily due to a 18.27% increase in the volume of products sold to 23,402.78 tonnes in Fiscal 2024 from 19,787.55 tonnes in Fiscal 2023.
Other Income
Other income increased by 987.77% to Rs.30.24 million for Fiscal 2024 from Rs.2.78 million for Fiscal 2023, which increase was primarily due to the inclusion of the net gain on foreign currency transactions and translation of Rs.27.58 million for Fiscal 2024 compared to nil in Fiscal 2023.
Expenses
Cost of Materials Consumed and Changes in Inventories of Finished Goods, Stock-in-trade and Work-in-progress
Set forth below is a table showing the components of our cost of materials consumed and changes in inventories of finished goods, stock-in-trade and work-in-progress for Fiscals 2024 and 2023.
| Particulars | Fiscal 2024 (Standalone) | Fiscal 2023 (Standalone) | Percentage Increase/ (Decrease) (%) |
| in million) | |||
| Cost of materials consumed: | |||
| Raw materials at the beginning of the year | 267.89 | 292.25 | (8.34)% |
| Add: Purchases during the year | 2,962.50 | 2,781.80 | 6.50% |
| Less: Raw materials at the end of the year | (237.94) | (267.89) | (11.18)% |
| Cost of materials consumed [A] | 2,992.45 | 2,806.16 | 6.64% |
| Add: Changes in inventories of finished goods, work-inprogress [B] | 50.30 | (56.22) | (189.47)% |
| Cost of materials consumed (including changes in inventories) [C = A + B] | 3,042.75 | 2,749.94 | 10.65% |
| Cost of material consumed (including Changes in inventories) as % of revenue from operation [D = C/E] (%) | 59.33% | 62.01% | (4.32)% |
| Revenue from operations [E] | 5,128.53 | 4,434.86 | 15.64% |
Our cost of materials consumed (including changes in inventories) increased by 10.65% to Rs.3,042.75 million for Fiscal 2024 from Rs.2,749.94 million for Fiscal 2023. This is primarily due to an increase in purchase during the year by 6.50% to Rs.2,962.50 million for Fiscal 2024 from Rs.2,781.80 million for Fiscal 2023. Our cost of material consumed as percentage of revenue from operation decreased by 4.32% in Fiscal 2024 as compared to Fiscal 2023.
Employee Benefit Expenses
Our employee benefit expenses increased by 15.61% to Rs.404.58 million for Fiscal 2024 from Rs.349.94 million for Fiscal 2023. This increase is primarily due to the increase in salaries, wages and bonus to employees of Rs.373.20 million for Fiscal 2024 from Rs.320.57 million for Fiscal 2023. Our number of employees remained unchanged at 610 employees at March 31, 2024 and 610 employees at March 31, 2023.
Finance Costs
Our finance costs increased by 11.35% to Rs.181.21 million for Fiscal 2024 from Rs.162.74 million for Fiscal 2023. This increase was primarily due to a 23.68% increase in interest on term loans and working capital loans from banks to Rs.129.77 million for Fiscal 2024 from Rs.104.92 million for Fiscal 2023, which was primarily due to the increase in (i) interest on terms loans from banks to Rs.75.31 million for Fiscal 2024 from Rs.57.60 million for Fiscal 2023; and (ii) interest on working capital loans from banks to Rs.54.46 million for Fiscal 2024 from Rs.47.32 million for Fiscal 2023.
Depreciation and Amortisation Expense
Our depreciation and amortisation expense increased by 10.55% to Rs.217.30 million for Fiscal 2024 from Rs.196.56 million for Fiscal 2023, primarily due to an increase in depreciation of property, plant and equipment by 11.02% to Rs.180.07 million for Fiscal 2024 from Rs.162.20 million for Fiscal 2023.
Other Expenses
Our other expenses increased by 14.91% to Rs.699.26 million for Fiscal 2024 from Rs.608.53 million for Fiscal 2023. This increase was in line with the 16.25% increase in our total income. Our other expenses increased primarily due to a 25.35% increase in our contractual services to ^211.91 million for Fiscal 2024 from Rs.169.06 million for Fiscal 2023, and a 18.26% increase in freight and forwarding to Rs.123.07 million for Fiscal 2024 from Rs.104.07 million for Fiscal 2023. The increase in contractual services was due to increase in wages of contract labours and the increase in freight outward was due to the increase in sale of products. The total other expenses, excluding contractual services and freight and forwarding, increased by 8.61% to Rs.364.28 million in Fiscal 2024 from Rs.335.40 million in Fiscal 2023.
Tax Expenses
Our total tax expenses increased by 63.68% to Rs.154.84 million for Fiscal 2024 from Rs.94.60 million for Fiscal 2023. Our current tax increased by 107.78% to Rs.133.56 million for Fiscal 2024 from Rs.64.28 million for Fiscal 2023, which increase was primarily due increase in profit before tax. Our tax expense as a percentage of profit before tax was 25.69% for Fiscal 2024 compared to 25.07% for Fiscal 2023.
Profit for the Year
Primarily for the reasons stated above, our profit for the year increased by 58.44% to Rs.447.90 million for Fiscal 2024 from Rs.282.70 million for Fiscal 2023.
Financial Condition
Total Assets
The table below sets forth the principal components of our total assets as at March 31, 2025 (Consolidated), March 31, 2024 (Standalone) and March 31, 2023 (Standalone):
| As at March 31, | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| (Rs. in million) | |||
| Non-current assets: | |||
| Property, plant and equipment | 3,323.95 | 2,283.88 | 2,237.11 |
| Right-of-use-asset | 42.92 | 39.63 | 67.47 |
| Capital work-in-progress | 219.27 | 337.96 | 45.69 |
| Intangible assets | 13.64 | 13.14 | 18.87 |
| Intangible asset under development | - | - | - |
| Financial assets: | |||
| (i) Loan | - | - | 0.17 |
| (ii) Other financial assets | 30.29 | 32.89 | 32.45 |
| As at March 31, | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| (Rs. in million) | |||
| Income-tax assets (net) | 10.80 | 0.35 | 0.31 |
| Other non-current assets | 69.44 | 19.64 | 86.20 |
| Total non-current assets | 3,710.31 | 2,727.49 | 2,488.27 |
| Current assets: | |||
| Inventories | 733.25 | 520.79 | 622.34 |
| Financial assets: | |||
| (i) Investments | - | 1.16 | 1.08 |
| (ii) Trade receivables | 865.68 | 483.44 | 427.65 |
| (iii) Cash and cash equivalents | 83.59 | 106.63 | 158.57 |
| (iv) Bank balances other than cash and cash equivalents | 9.08 | 6.73 | 4.38 |
| (v) Loans | 1.03 | 1.53 | 1.31 |
| (vi) Other financial assets | 11.85 | 6.02 | 1.63 |
| Other current assets | 208.43 | 300.81 | 299.57 |
| Total current assets | 1,912.91 | 1,427.11 | 1,516.53 |
| Total assets | 5,623.22 | 4,154.60 | 4,004.80 |
Our total non-current assets were Rs.2,488.27 million as at March 31, 2023 and increased by 9.61% to Rs.2,727.49 million as at March 31, 2024 and increased by 36.03% to ^3,710.31 million as at March 31, 2025 (consolidated). The increase in our non-current assets from March 31, 2023 to March 31, 2024 was primarily due to increase in capital work-in-progress, which increased from Rs.45.69 million as at March 31, 2023 to Rs.337.96 million as at March 31, 2024 on account of the increase in projects in progress of less than one year. The increase in our noncurrent assets from March 31, 2024 to March 31, 2025 was primarily due to increase in property, plant and equipment, which increased from Rs.2,283.88 million to Rs.3,323.95 million (consolidated) on account of additions to buildings and additions to plant and machinery.
Our trade receivables increased by 13.05% to Rs.483.44 million as at March 31, 2024 from Rs.427.65 million as at March 31, 2023, which was primarily due to a 11.66% increase in our receivables considered good, and further increased by 79.07% to Rs.865.68 million as at March 31, 2025 (consolidated), which was primarily due to a 78.76% increase in our receivables considered good.
Total Equity and Liabilities
The table below sets forth the principal components of our total equity and liabilities as at March 31, 2025 (Consolidated), March 31, 2024 (Standalone) and March 31, 2023 (Standalone):
| As at March 31 , | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| (Rs. in million) | |||
| Equity | |||
| Equity share capital | 105.00 | 10.50 | 10.50 |
| Other equity | 2,382.79 | 2,008.71 | 1,565.96 |
| Total equity | 2,487.79 | 2,019.21 | 1,576.46 |
| Liabilities | |||
| Non-Current Liabilities | |||
| Financial liabilities: | |||
| (i) Borrowings | 1,017.56 | 751.66 | 934.25 |
| (ii) Lease liabilities | 33.44 | 11.32 | 33.54 |
| Deferred tax liabilities (net) | 221.43 | 184.72 | 165.17 |
| Other non-current liability | - | 0.82 | 0.86 |
| Total non-current liabilities | 1,272.43 | 948.52 | 1,133.82 |
| Current liabilities | |||
| Financial Liabilities: | |||
| (i) Borrowings | 1,167.55 | 671.80 | 783.15 |
| (ii) Lease liabilities | 11.16 | 35.90 | 43.52 |
| (iii) Trade payables: | |||
| - Total outstanding dues of micro enterprises and small enterprises | 75.23 | 70.61 | 27.68 |
| - Total outstanding dues of creditors other than micro enterprises and small enterprises | 299.85 | 233.35 | 321.99 |
| (iv) Other financial liabilities | 246.59 | 82.63 | 62.64 |
| Current tax liabilities (net) | - | 29.91 | 3.94 |
| Other current liabilities | 14.82 | 22.13 | 19.20 |
| Provisions | 47.80 | 40.54 | 32.40 |
| Total current liabilities | 1,863.00 | 1,186.87 | 1,294.52 |
| Total equity and liabilities | 5,623.22 | 4,154.60 | 4,004.80 |
Our total equity increased from Rs.1,576.46 million as at March 31, 2023 to Rs.2,019.21 million as at March 31, 2024 and further increased to Rs.2,487.79 million as at March 31, 2025 (consolidated). These increases were due to increases in other equity, which increased from Rs.1,565.96 million as at March 31, 2023 to Rs.2,008.71 million as at March 31, 2024 and further increased to Rs.2,382.79 million as at March 31, 2025 (consolidated), primarily due to retained earnings.
Our total non-current liabilities decreased from Rs.1,133.82 million as at March 31, 2023 to Rs.948.52 million as at March 31, 2024 and increased to Rs.1,272.43 million as at March 31, 2025 (consolidated). The decrease as at March 31, 2024 was primarily due to an decrease in non-current borrowings from Rs.934.25 million as at March 31, 2023 to Rs.751.66 million as at March 31, 2024, which was primarily due to an increase in current maturities of long term borrowing. The increase as at March 31, 2025 was primarily due to an increase in non-current borrowings from Rs.751.66 million as at March 31, 2024 to Rs.1,017.56 million (consolidated), which was primarily due to an increase in working capital loans from banks.
Our total current liabilities decreased from Rs.1,294.52 million as at March 31, 2023 to Rs.1,186.87 million as at March 31, 2024 and increase to Rs.1,863.00 million as at March 31, 2025 (consolidated). These changes were primarily due to the changes in current borrowings and total outstanding dues of creditors other than micro enterprises and small, which were partially offset, by among others, the changes in other financial liabilities and in total outstanding dues to micro enterprises and small enterprises.
Our current borrowings decreased from Rs.783.15 million as at March 31, 2023 to Rs.671.80 million as at March 31, 2024, primarily due to a decrease in working capital loans from banks, partially offset by the current maturities of long term borrowings. Our current borrowings increased from Rs.671.80 million as at March 31, 2024 to Rs.1,167.55 million as at March 31, 2025 (consolidated), primarily due to an increase in working capital loans from banks and current maturities of long term borrowings.
Our total outstanding dues of creditors other than micro enterprises and small enterprises decreased from Rs.321.99 million as at March 31, 2023 to Rs.233.35 million as at March 31, 2024 and increased to Rs.299.85 million as at March 31, 2025 (consolidated), primarily due to increase in purchase during the year.
Liquidity and Capital Resources
Our liquidity requirements primarily relate to capital expenditure and working capital. Our sources of liquidity for Fiscals 2025 (Consolidated), Fiscal 2024 (Standalone) and 2023 (Standalone) were primarily cash generated from operating activities and borrowings from banks and financial institutions.
As at March 31, 2025, our cash and cash equivalents was Rs.83.59 million (consolidated).
Cash Flows
The following table sets forth a summary of our cash flows for the fiscal years indicated:
| Year ended March 31, | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| (Rs. in million) | |||
| Net cash generated from operating activities | 516.84 | 907.54 | 665.21 |
| Net cash used in investing activities | (1,133.41) | (459.67) | (461.84) |
| Net cash (used in)/generated from financing activities | 593.53 | (499.81) | (101.43) |
| Cash and cash equivalents at the beginning of the year | 106.63 | 158.57 | 56.63 |
| Net increase/(decrease) in cash and cash equivalents | (23.04) | (51.94) | 101.94 |
| Cash and cash equivalents at the end of the year | 83.59 | 106.63 | 158.57 |
Operating Activities Fiscal 2025 (Consolidated)
Net cash flow generated from our operating activities was Rs.516.84 million for Fiscal 2025. Our net profit before tax was Rs.642.02 million, which was adjusted for non-cash and other items in a net amount of Rs.356.87 million, resulting in an operating profit before working capital changes of Rs.998.89 million. The key adjustments to operating cash flows included (i) depreciation and amortisation expenses of Rs.235.16 million and (ii) interest on term loans and working capital loans from banks of Rs.128.59 million.
Fiscal 2024 (Standalone)
Net cash flow generated from our operating activities was Rs.907.54 million for Fiscal 2024. Our net profit before tax from continuing operations was Rs.602.74 million, which was adjusted for non-cash and other items in a net amount of Rs.397.54 million, resulting in an operating profit before working capital changes of Rs.1,000.28 million. The key adjustments to operating cash flows included (i) depreciation and amortisation expenses of Rs.217.30 million and (ii) interest on term loans and working capital loans from banks of Rs.129.77 million.
Fiscal 2023 (Standalone)
Net cash flow generated from our operating activities was Rs.665.21 million for Fiscal 2023. Our net profit before tax was Rs.377.30 million, which was adjusted for non-cash and other items in a net amount of Rs.341.26 million, resulting in an operating cash flows before working capital changes of Rs.718.56 million. The key adjustments to operating cash flows included (i) depreciation and amortisation expenses of Rs.196.56 million and (ii) interest on term loans and working capital loans from banks of Rs.104.92 million.
Investing Activities
Fiscal 2025 (Consolidated)
Net cash used in investing activities was ^1,133.41 million during Fiscal 2025, which was primarily due to Rs.1,137.06 million used for the acquisition of property, plant and equipment and intangible assets.
Fiscal 2024 (Standalone)
Net cash used in investing activities was Rs.459.67 million during Fiscal 2024, which was primarily due to Rs.459.32 million used for the acquisition of property, plant and equipment and intangible assets.
Fiscal 2023 (Standalone)
Net cash used in investing activities was Rs.461.84 million during Fiscal 2023, which was primarily due to Rs.444.05 million used for the acquisition of property, plant and equipment and intangible assets.
Financing Activities
Fiscal 2025 (Consolidated)
Net cash generated from financing activities was Rs.593.53 million during Fiscal 2025, primarily owing to Rs.108.84 million in net proceeds generated from our long-term borrowings and net proceeds from short-term borrowings of Rs.652.42 million. This was partially offset by Rs.140.06 million used for finance costs paid.
Fiscal 2024 (Standalone)
Net cash used in financing activities was t499.81 million during Fiscal 2024, primarily owing to a net repayment of t182.59 million for our long-term borrowings, t168.47 million used for finance costs paid on our borrowings and tlll.35 million used for the net repayment of our short-term borrowings.
Fiscal 2023 (Standalone)
Net cash used in financing activities was ^101.43 million during Fiscal 2023, primarily owing to t286.86 million used for the repayment of our long-term borrowings, t142.52 million used for finance costs paid on our borrowings, and t91.05 million used for the net repayment of our short-term borrowings. This was partially offset by t452.47 million in proceeds generated from our long-term borrowings.
Borrowings
As at March 31, 2025 (consolidated), we had total borrowings of t 2,185.11 million, which consisted of noncurrent borrowings, current maturities of non-current borrowings, and current borrowings.
Our loan agreements generally contain covenants, both financial and non-financial, that may limit our ability to pay dividends, make loans, or provide advances without the lenders written consent. The financial covenants include the gearing ratio, debt service coverage ratio, current ratio, interest service coverage ratio, fixed asset coverage ratio, and tangible net worth. Non-financial covenants require, among other things, that the promoter holds more than 51% of the company and that we obtain written consent from the banks for actions such as dividend payments, loans or guarantees to related parties, buybacks of shares, or any additional borrowings. These covenants may limit our ability to pay dividends or make loans or advances to us, subject to the le nders waiver or consent. There were no defaults in repayment of principal or interest to lenders during Fiscal 2025 (Consolidated), Fiscal 2024 (Standalone) and Fiscal 2023 (Standalone). See “Risk Factors - Our financing agreements contain covenants that limit our flexibility in operating our business. Any future failure to meet the conditions under our financing arrangements or obtain any consents thereunder could have a material adverse effect on our business, financial condition, results or operations and cash flows" on page 54.
The following table provides the types and amounts of our outstanding borrowings as at the dates indicated:
| As at March 31, | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| (Rs. in million) | |||
| Non-current borrowings (including current maturities of non-current borrowings) [A] | 1,391.53 | 1,277.49 | 1,225.83 |
| Of which: | |||
| Secured | 1,383.17 | 986.14 | 829.88 |
| Unsecured | 8.36 | 291.35 | 395.95 |
| Current maturities of non-current borrowings [B] | (373.97) | (525.83) | (291.58) |
| Current borrowings [C] | 1,167.55 | 671.80 | 783.15 |
| Of which: | |||
| Secured | 1,159.19 | 391.85 | 686.52 |
| Unsecured | 8.36 | 279.95 | 96.63 |
| Total Borrowings [D = A + B + Cl | 2,185.11 | 1,423.46 | 1,717.40 |
The table below sets forth details of our borrowings with floating interest rates as at March 31, 2025 (Consolidated), March 31, 2024 (Standalone), and March 31, 2023 (Standalone):
| As at March 31, | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| (Rs. in million) | |||
| Variable interest rate borrowings | 1,434.61 | 734.03 | 634.40 |
For further details of security, repayment terms and interest rates for our borrowings, see “Financial Statements - Note 22 - Borrowings - non-current" and “Financial Statements - Note 25 - Borrowings - current" on pages 384 and 386.
Contractual Maturities of Financial Liabilities
The following table sets forth contractual maturities of financial liabilities as at March 31, 2025 (Consolidated). The amounts are gross and undiscounted:
| Particulars* | Payment due by period | |||
| Total | Within one year | 1-5 years | Above 5 years | |
| (in Rs. million) | ||||
| Borrowings | 2,185.11 | 1,167.55 | 1,017.56 | - |
| Trade payables | 375.08 | 375.08 | - | - |
| Other financial liabilities | 246.59 | 246.59 | - | - |
| Lease liabilities (with financing component) | 44.60 | 11.16 | 33.44 | |
| Total | 2,851.38 | |||
Note:
* Fiscal 2025 (consolidated)
Capital Expenditure
The following table sets forth net block of property, plant and equipment by category as the dates indicated. These assets primarily relate to the expansion and enhancement of our manufacturing capabilities, including investments in new production lines, upgrading existing facilities, and incorporating advanced technology to improve efficiency and production capacity.
| As at March 31, | |||
| Particulars(1)(2) | 2025 (Consolidated) | 2024 (Standalone) | 2023 (Standalone) |
| (Rs. in million) | |||
| Freehold lands | 293.51 | 178.96 | 178.96 |
| Buildings | 853.70 | 285.49 | 296.03 |
| Plant and machinery | 2,105.11 | 1,766.99 | 1,715.56 |
| Furniture and fixtures | 18.65 | 15.69 | 12.39 |
| Vehicles | 19.39 | 23.16 | 21.63 |
| Office equipment | 22.26 | 9.16 | 6.54 |
| Computers | 11.33 | 4.43 | 6.00 |
| Total | 3,323.95 | 2,283.88 | 2,237.11 |
Notes:
(1) Property, plant and equipment have been pledged as security for borrowings.
(2) We have not revalued our property, plant and equipment during Fiscals 2025 (consolidated), 2024 or 2023.
Contingent Liabilities and Commitments
The following table sets our contingent liabilities and commitments as at March 31, 2025 (Consolidated), March 31, 2024 (Standalone), and March 31, 2023 (Standalone) respectively as per the Restated Consolidated and Standalone Financial Information:
| As at March 31, | |||
| Particulars | 2025 | 2024 | 2023 |
| (Consolidated) | (Standalone) | (Standalone) | |
| (Rs. in million) | |||
| Contingent Liabilities | |||
| Custom duty dispute(1) | 6.00 | - | 8.58 |
| Commitments | |||
| Estimated amount of contracts remaining to be executed on property, plant and equipment and not provided for | 343.73 | 117.93 | 330.91 |
Note:
(1) It is not practicable for our Company to estimate the timing of cash outflows, if any, in respect to the above pending resolution of the respective proceedings. The amount disclosed above represent the best possible estimates arrived on the basis of available information.
Off-balance Sheet Arrangements
We do not have any off-balance sheet arrangements or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.
Quantitative and Qualitative Disclosure on Market Risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices. The Groups size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:(a) currency risk; (b) price risk; and (c) interest rate risk. The above risks may affect the Groups income and expenses, or the value of its financial instruments.
Foreign Currency Risk
Foreign 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 Groups exposure to the risk of changes in foreign exchange rates relates primarily to the Groups operating activities (when revenue or expense is denominated in a different currency from the Groups functional currency). The Group uses foreign exchange forward contracts for hedging receivables and payable risk. To the extent of lower of exports and imports that the Group undertakes in USD, the Group has a natural hedge against the exposure to foreign currency risks.
Price Risk
We are mainly exposed to the price risk due to our investment in mutual funds. The price risk arises due to uncertainties about the future market values of these investments.
Interest Rate Risk
The Groups main interest rate risk arises from long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk.
For quantitative disclosures on market risk, see “Financial Statements - Note 48 - Financial Risk Management objectives and policies - (i) Market risk on page 400.
Reservations, Qualifications and Adverse Remarks
There are no reservations, qualifications or adverse remarks in the Statutory Auditors examination report on the Restated Consolidated and Standalone Financial Information.
The Statutory Auditors have included certain observations in the annexure to their reports on our Companys audited financial statements for the years ended March 31, 2025 (standalone), March 31, 2024 and March 31, 2023, as required under the Companies (Auditors Report) Order, 2020, which do not require any adjustment to the Restated Consolidated and Standalone Financial Information. These observations have been included in Note 50 Part C to the Restated Consolidated and Standalone Financial Information in “Financial Statements" on page 405. For more details, see “Risk Factors-The Statutory Auditors have included certain observations in the annexure to their reports on the Companys audited financial statements for the years ended March 31, 2025 (standalone), March 31, 2024 and March 31, 2023, as required under the Companies (Auditors Report) Order, 2020” on page 58.
Unusual or Infrequent Events or Transactions
Other than as described in this section and "Our Business”, “Risk Factors” and “History and Certain Corporate Matters - Other material agreements” on page 258, 37 and 314, respectively, there have been no events or transactions which may be described as "unusual” or "infrequent”.
Significant Economic Changes that Materially Affected or are likely to affect Revenue from Operations
Other than as described in this section, and in "Our Business”, "Risk Factors” and "Industry Overview" on pages 258, 37, and 181, respectively, there have been no significant economic changes that materially affected or are likely to affect our revenue from operations.
Known Trends or Uncertainties that have had or are expected to have a Material, Adverse Impact on Revenue from Operations or Other Income
Except as described in this section and “Risk Factors" on page 37, to our knowledge, there are no trends or uncertainties that have had, or are expected to have, a material adverse impact on revenue from operations or other income.
Future Relationships between Costs and Revenue
Other than as described in this section “Our Business" and “Risk Factors” on pages 258 and 37, respectively, there are no known factors which will have a material adverse impact on our costs and revenue.
Material Increases in Revenues and Sales
Material increases in our revenues and sales are primarily due to the reasons described in “- Significant Factors Affecting our Results of Operations and Financial Condition” above on page 410.
New Products or Business Segments
Our financial condition and results of operations were not materially affected by the launch of new products. We did not enter into any new business segments in Fiscals 2025, 2024 or 2023.
Seasonality
Our financial condition and results of operations are not materially affected by seasonal factors.
Suppliers and/or Customer Concentration
We have a supplier concentration. For details, see “Risk Factors- In order to get better pricing by buying in larger volumes, we generally buy the primary raw materials and packing materials we need from few suppliers. For Fiscals 2025, 2024 and 2023, our cost of raw materials and packing materials purchased from our top supplier represented 21.26% (consolidated), 22.86% and 23.65% of our cost of raw materials and packing materials purchased, respectively, and our cost ofraw materials and packing materials purchasedfrom our top 10 suppliers represented 73.24% (consolidated), 75.24% and 75.62% of our cost of raw materials and packing materials purchased, respectively. If any of our top 10 suppliers ceased selling us the raw materials and packing materials we require in the quantities we need and we were unable to find a supplier to replace it, it could have a material adverse effect on our business, financial condition, results of operations and cash flows” on page 40.
We have a customer concentration. For details, see “— Significant Factors Affecting our Results of Operations and Financial Condition - Our revenue from our top four customers and in particular our top customer”, and “Risk Factors - Our business largely depends upon our top four customers and in particular our top customer. For Fiscals 2025, 2024 and 2023, our revenue from our top customer represented 59.29% (consolidated), 60.36% and 58.54% of our revenue from operations, respectively, and our revenue from our top four customers represented 78.42% (consolidated), 83.30% and 82.65% of revenue from operations, respectively. The loss of any of our top four customers, and in particular our top customer, or the loss of revenue from sales to these top customers could have a material adverse effect on our business, financial condition, results of operations and cash flows” on pages 410 and 37, respectively.
Competitive Conditions
For a description of the competitive conditions in the industries in which we operate, see “Our Business - Competition"" and “Industry Overview" on pages 296 and 181, respectively.
Significant Developments after March 31, 2025
Our Company is unaware of any circumstances that have arisen since March 31, 2025 that have a material, adverse effect on, or are likely to affect, our operations or profitability, the value of our assets or our ability to pay our liabilities within the next 12 months.
On July 5, 2025, All Time Bamboo Private Limited was incorporated as our Companys wholly-owned subsidiary under the laws of India, to operate our business relating to bamboo consumerware. For further details, see “Risk Factors-There can be no assurance that the launch of new products or our expansion into manufacturing bamboo consumerware products will be profitable, and even if they are profitable, it will not result in a decrease in our Return on Equity. If the launch of new products proves to be unsuccessful or our expansion into manufacturing bamboo consumerware was to be unprofitable, we could be forced to cease manufacturing such products, which would result in a loss of our investment in developing these products and thereby have an adverse effect on our financial condition, results of operations and cash flows", “Our Business-Our Strategies" and “History and Certain Corporate Matters-Subsidiaries-All Time Bamboo Private Limited" on pages 61, 270 and 312, respectively.
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