You should read the following discussion in conjunction with the Restated Consolidated Financial Information. The Restated Consolidated Financial Information has been prepared by our management as required under the SEBI ICDR Regulations read with the ICAI Guidance Note. For more information, see "Risk Factors Significant differences exist between Ind AS and other accounting principles, such as Indian GAAP, IFRS and U.S. GAAP, which may be material to investors assessment of our financial condition." on page 60.
This Red Herring Prospectus also contains forward-looking statements that involve risks, assumptions, estimates and uncertainties. Our actual results could differ materially from those anticipated in these forward looking statements as a result of certain factors, including but not limited to the considerations described below. For details, see "Forward-Looking Statements" beginning on page 16.
Unless otherwise indicated or the context otherwise requires, the financial information for financial years ended March 31, 2025, 2024 and 2023, included herein is derived from the Restated Consolidated Financial Information included in this Red Herring Prospectus.
Certain non-GAAP financial measures and certain other statistical information relating to our operations and financial performance have been included in this section and elsewhere in this Red Herring Prospectus. Such non-GAAP financial measures should be read together with the nearest GAAP measure. See "Risk Factors Certain Non-GAAP financial measures and other statistical information relating to our operations and financial performance have been included in this Red Herring Prospectus. These Non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with those presented by other companies" on page 54.
The industry-related information contained in this section is derived from the industry report titled ‘Strategic assessment of Transformer market dated August 26, 2025 prepared by CRISIL (the "CRISIL Report"). We have exclusively commissioned and paid for the CRISIL Report for the purposes of confirming our understanding of the industry exclusively in connection with the Offer. We officially engaged CRISIL Limited in connection with the preparation of the CRISIL Report pursuant to an engagement letter dated October 15, 2024. A copy of the CRISIL Report shall be available on the website of our Company at https://aetrafo.com/industry-report.aspx from the date of this Red Herring Prospectus until the Bid/Offer Closing Date. Unless otherwise indicated, the industry-related information contained in this section is derived from the CRISIL Report (extracts of which have been appropriately incorporated as part of "Industry Overview" beginning on page 144).
Overview
We are one of the leading manufacturers of power, auto and inverter duty transformers in India, terms of production volume as of Fiscal 2025 (Source: CRISIL Report). We were among the few companies in India, manufacturing transformers up to and including 200 Mega Volt-Amp ("MVA") capacity and with 220 kilovolts ("kV") voltage (Source: CRISIL Report) prior to the acquisition of BTW-Atlanta Transformers India Private Limited and the commissioning of our Vadod Unit. Following these developments, we have enhanced our manufacturing capabilities and are now able to produce transformers with a rated capacity of up to 500 MVA and with 765 kV. Over a short period, we have witnessed significant growth in terms of revenue from 8,738.83 million to 12,441.80 million from Fiscal 2023 to Fiscal 2025 at a CAGR of 19.32%.
The Indian power sector is poised for significant growth, driven by strong demand from high-growth end markets such as data centres and EV charging networks (Source: CRISIL Report). As these industries expand, they will place additional pressure on grid capacity and resiliency, necessitating the deployment of new, modern transformers (Source: CRISIL Report). Furthermore, the Indian Railways shift towards high-speed trains has created a surge in demand for transformers operating between 66 kV and 133 kV voltage levels. (Source: CRISIL Report)
Indias renewable energy sector is experiencing unprecedented growth, driven by the governments commitment to reducing carbon emissions and increasing the share of clean energy in the power mix (Source: CRISIL Report). The target of achieving 500 GW of non-fossil fuel-based capacity by 2030 has catalyzed large-scale investments in solar, wind, and hybrid energy projects. As renewable energy adoption expands to remote and challenging terrains, there is also growing demand for compact, lightweight, and robust transformer solutions (Source: CRISIL Report). In alignment with Indias renewable energy goals, we recently embraced the green energy transition in 2021 by securing a major order for the supply of eight 80 MVA, 220/33 kV power transformers for Ultra Mega Solar Park in Andhra Pradesh. We successfully conducted a dynamic short circuit test on our 14/17 MVA, 33/4*0.8 kV aluminium foil wound inverter duty transformer, specifically designed for solar power generation applications on February 17, 2022.
With a pan India presence and operations spanning over 30 years in the transformer manufacturing industry, we supply a wide range of transformers starting from 5 MVA/11 kV up to 200 MVA/220 kV. Set forth below is our product portfolio, as on the date of this Red Herring Prospectus:
As of March 31, 2025, we have a customer base in 19 states and three union territories, across India, with a supply of 4,400 transformers, aggregating to 94,000 MVA to various state and national electricity grids, private sector players and prominent renewable energy generation projects and construction companies.
Our Order Book, as on March 31, 2025, amounted to 16,429.58 million. Further, as on March 31, 2025, projects awarded by public sector undertakings and private players contributed to 82.08% and 17.92% to our Order Book.
The details of the break-up of the Order Book, number of orders received during the year, value of orders received during the year, for Fiscals 2025, 2024 and 2023 are set forth below:
| Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | ||||
| Particulars | Number of orders | Amount (in million) | Number of orders | Amount (in million) | Number of orders | Amount (in million) |
| Opening Order Book (A) | 91 | 12,713.80 | 65 | 5,340.62 | 36 | 3,164.60 |
| Incremental orders received in Fiscal (B) | 78 | 14,356.10 | 130 | 15,221.83 | 102 | 9,113.86 |
| Revenue recognized (C) | 94 | 10.640.32 | 104 | 7,848.65 | 73 | 6,937.84 |
| Closing Order Book (D) | 81 | 16,429.58 | 91 | 12,713.8 | 65 | 5,340.62 |
| Percentage completion of the orders (C/ A+B) | - | 39.31% | - | 38.17% | - | 56.50% |
| Outstanding orders as a percentage of the Order Book (D/ A+B) | - | 60.69% | - | 61.83% | - | 43.50% |
We have five manufacturing facilities and operate four fully operational manufacturing facilities, two located at Anand, Gujarat, one at Bengaluru, Karnataka and the Vadod Unit which has commenced commercial production in July, 2025 is located in Vadod, Gujarat. Our fully operational four facilities (including the Vadod Unit which has commenced production in the month of July, 2025) aggregate to 10,94,282.19sq. ft. land area with a combined capacity of 47,280 MVA. Further, with the inclusion of BTW-Atlanta Transformers Private Limited as our wholly owned subsidiary, we have added a facility at Ankhi to our existing facilities, with a total land area aggregating to 904,436.70 sq. ft. and an installed capacity of 15,780 MVA. All five of our facilities will have a combined installed capacity of 63,060 MVA. Our Gujarat Unit I and Gujarat Unit II facilities comprise National Accreditation
Board for Testing and Calibration Laboratories ("NABL") accredited testing laboratories with four transformer testing labs capable of conducting routine tests for transformers up to 200 MVA/ 245kV and one transformer oil testing lab. Our facilities adhere to the industry standards, including ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018, positioning us as a reliable manufacturer of a wide range of transformers, such as power distribution and special duty transformers. These NABL-accredited laboratories have enabled us to conduct all major routine tests internally, thereby reducing our reliance on external third-party laboratories.
Our Company has developed relationships with important players in the transmission and distribution, renewable energy and mobility sectors, which have helped support our growth. As of March 31, 2025, we have a diversified customer base of 208 customers, which include Gujarat Energy Transmission Corporation Limited (GETCO), Adani Green Energy Limited, TATA Power and SMS India.
A graphical representation of our evolution and key milestones is set forth below:
Principal Factors Affecting Our Financial Condition and Results of Operations
Our business, results of operations and financial condition are affected by a number of factors, including:
A. Macro-economic conditions, and the factors affecting the electric equipment-manufacturing and power generation sectors, in India
Our performance is significantly affected by the economic environment, particularly trends in the electric-equipment manufacturing and power generation sectors in India. These industries are influenced by economic growth, regulatory frameworks, government investment, and environmental policies, all of which directly impact demand for power infrastructure projects. A large part of the demand for transformers in India are dependent on the power industry. The demand for power in India is closely linked to economic growth in the country, and to Government policies in the power sector. As the economy grows, economic activities, such as industrial production and personal consumption, also tend to expand, which increases the demand for power. If the Indian economy does not continue to grow at the current rate, it would adversely impact the power sector and hence the demand for transformers.
B. Reliance on our top 10 suppliers
Our principal raw materials, which are integral to the assembly of our systems, include copper, electrical steel, transformer oil, and other custom-made components designed to meet our customers specific technical and design requirements. The volatile pricing of key raw materials and components, such as copper, lamination, MS tanks, radiators, oil, bushings, insulation, and MS frames, coupled with the absence of long-term supply agreements, could significantly affect our cost structure and overall profitability.
Given that a substantial portion of our raw material purchases is concentrated among a limited number of private suppliers, any price increases or disruptions in supply from these suppliers could disproportionately impact our operations. The lack of long-term contracts further exposes us to market fluctuations, complicating the forecasting of costs and effective margin management. This exposure to pricing fluctuations underscores the importance of our ability to negotiate favorable terms with suppliers and, where possible, secure consistent pricing to mitigate potential risks.
Set forth below is a table depicting the cost of raw materials and traded goods from our top 10 suppliers:
| Particular | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Amount (in million) | As a % of the cost of total raw materials purchased | Amount (in million) | As a % of the cost of total raw materials purchased | Amount (in million) | As a % of the cost of total raw materials purchased | |
| Top supplier | 1,132.08 | 12.68% | 1,038.43 | 15.11% | 1,520.11 | 21.62% |
| Top 5 suppliers | 4,190.33 | 46.95% | 3,298.73 | 48.01% | 4,010.41 | 57.04% |
| Top 10 suppliers | 5,518.15 | 61.83% | 4,296.79 | 62.54% | 5,056.72 | 71.93% |
We do not have long- term agreements with our suppliers. We typically place orders with our suppliers in advance, and the price for each order is negotiated based on market conditions and the price for each order of other raw materials, such as copper, is based on the benchmark price we received annually. Prices of such raw materials may fluctuate. If our raw materials become significantly more expensive, we may not be able to pass on the additional costs to our customers and our profit margins may be reduced.
If there are any defaults or failures to make any payments due to our suppliers, this could cause our suppliers to terminate their relationship with us, or resort to litigation to recover any amounts due. The financial instability of suppliers, labour problems experienced by suppliers, disruption in the transportation of the raw materials by suppliers, including as a result of labour slowdowns, transport availability and cost, transport security, inflation and other operational factors relating to suppliers are beyond our control.
C. Competition
We operate in an increasingly competitive market. We face competition from other manufacturers, traders, suppliers and importers of electric equipment in relation to our offerings, in the organized and unorganized sectors. Suppliers in the electric equipment industry compete based on key attributes including technical competence, product quality, strength of sales and distribution network, pricing and timely delivery. While typically our competitors in the organized sector focus more on technology and quality of their products, their unorganized counterparts supply their products at extremely competitive prices, which we may be unable to effectively compete with.
Further, many of our competitors, specifically multinational companies, may have significant competitive advantages, including greater brand recognition and greater access to financial, research and development, marketing, distribution and other resources, larger product offerings and greater specialization than us. Additionally, certain of our competitors may specialise in manufacturing electric equipment within particular product verticals and hence, may be able to dedicate significantly larger resources towards developing and manufacturing technologically superior equipment than us and their brands may gain greater visibility within those product verticals. Our competitors may further, enter into business combinations or alliances that strengthen their competitive positions or prevent us from taking advantage by entering into such business combinations or alliances. Increasing competition may result in pricing pressures or decreasing profit margins or lost market share or failure to improve our market position, any of which could substantially harm our business and results of operations. We will be required to compete effectively with our existing and potential competitors, to maintain and grow our market share and in turn, our results of operations.
For further details in relation to the competition we face and our significant competitors, see "Industry Overview" and "Our Business" on pages 144 and 194, respectively.
D. Working capital requirements and access to capital resources
Our ability to grow depends largely on cost effective avenues of funding. Our business requires significant amount of working capital for day-to-day operations, procurement of raw materials and production as there is considerable time interval between purchase of raw materials and realisation from sale of our finished goods and our inability to meet our working capital requirements may adversely affect our cash flow cycle. In addition, our projects and contracts may require us to incur substantial working capital costs before milestone payments are made to cover these costs for the purpose of ensuring that such projects and contracts are delivered and completed on a timely manner. Further, our working capital requirements also tend to increase if contractual or sales terms do not include advance payments or if under such contractual arrangements, payment is stipulated at the time of delivery of the final product to our customer or post installation and commissioning. In particular, our sales to power utilities require us to incur significant amounts of working capital on account of contractual terms stipulating payments to be made after delivery, which may further be delayed due to their weak financial health. Certain purchase orders may require a considerable increase in materials and production costs particularly in connection with new systems and plants. Set forth below are the details of our net working capital in Fiscal 2025, Fiscal 2024, and Fiscal 2023.
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Net working capital | 2,207.60 | 1,586.35 | 1,365.52 |
Net working capital is calculated as the total of current assets (excluding cash & cash equivalents and bank balances) less total of current liabilities.
We meet our working capital requirements in the ordinary course of business from banks and internal accruals. Set forth below are the details of total outstanding working capital loans and working capital loans as a percentage of total assets on a consolidated basis for March 31, 2025, March 31, 2024, and March 31, 2023:
(in million, except percentages)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Total outstanding working capital loans | 427.67 | 395.99 | 615.48 |
| Working capital loans as % of total assets | 4.94% | 7.08% | 10.98% |
We expect to continue to fund our working capital requirements in the future from cash generated from operations and from working capital loans; however, our inability to meet our working capital requirements through cash from our operations or borrowings, as the case may be, could have a material adverse effect on our business, results of operations and financial condition. Set forth below are the details of our trade receivables days and trade payables days for March 31, 2025, March 31, 2024, and March 31, 2023:
| Particulars | As at March 31, 2025 | As at March 31, 2024 | As at March 31, 2023 |
| Trade receivables days | 103 | 76 |
109 |
| Trade payables days | 124 | 137 |
160 |
Moreover, our working capital requirements will increase in the event we undertake a larger number of orders as we grow our business. In order to manage our working capital effectively, we are working on aligning vendor payment terms with receivables in some cases. Our working capital requirements could increase if there is a considerable difference between the holding levels of our trade payables and our trade receivables and insufficient cash flows may affect our ability to fund our working capital requirements. As we pursue our growth plan, we may be required to raise additional funds by incurring further indebtedness or issuing additional equity to meet our working capital in the future. If we decide to raise additional funds through the incurrence of debt, our interest and debt repayment obligations will increase, and could have a significant effect on our profitability and cash flows and we may be subject to additional covenants, which could limit our ability to access cash flows from operations. If we are unable to implement such channel financing for our large customers in future, it may result in increased borrowings to fund our working capital requirements.
E. Order Book management and execution
As of March 31, 2025, March 31, 2024, and March 31, 2023, our Order Book stood at 16,429.58 million, 12,713.80 million and 5,340.62 million, respectively. Our Order Book represents the value of projects contracted but not yet completed and is a key indicator of future revenue potential. However, it should be noted that the Order Book does not reflect changes in project scope, cost escalations, or other adjustments, due to which it is not directly comparable to actual revenue figures, which account for such variations. While our Order Book provides an indication of the transformers we are expected to deliver and the revenues we anticipate generating from such deliveries, it is important to recognize that the orders in our book are subject to potential cancellations, modifications, or delays by our clients. For a discussion of the risks associated with relying on our Order Book as being indicative of our growth and revenues, see "Risk Factors Our Order Book may not be representative of our future results and our actual income may be significantly less than the estimates reflected in our Order Book, which could adversely affect our business, financial condition, results of operations and prospects" on page 30.
F. Customer relationships
The identity and corresponding expenses and revenues from our top suppliers and customers may vary across financial reporting periods or years, depending on the nature, duration, and timing of ongoing contracts or procurement requirements for specific projects. Our reliance on a concentrated group of suppliers and customers exposes us to potential risks in case of disruptions, pricing changes, or other adverse developments in these relationships. We derived more than 60% of our total revenue from operations from the sale of products to our top 10 customers Fiscal 2025, Fiscal 2024, and Fiscal 2023. The table below sets forth the revenue derived from our top 10 customers, for the periods indicated:
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Amount (in million) | % of total revenue from operations | Amount (in million) | % of total revenue from operations | Amount (in million) | % of total revenue from operations | |
| Top 10 customers | 9,232.67 | 74.21% | 5,623.53 | 64.82% | 6,979.96 | 79.87% |
We depend and expect to continue to depend on our top 10 customers for a substantial portion of our total revenue from operations. Given this dependency on key suppliers and customers, any disruptions, changes in demand, or reductions in business volumes from these relationships could significantly impact our results of operations, financial condition, and overall business prospects.
Additionally, a significant portion of our revenue is derived from government-controlled entities. As a part of our business and operations, we bid for contracts on a continual basis. Contracts are awarded following competitive bidding process and satisfaction of prescribed qualification criteria. Our bids may not always be accepted.
State electricity companies are among our principal customers. We are dependent on the utilities for supply of our transformers to them.
The following table sets out the details of our revenue from supply of transformers to state electricity companies during Fiscals 2025, 2024 and 2023:
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Amount (in million) | % of total revenue from operations | Amount (in million) | % of total revenue from operations | Amount (in million) | % of total revenue from operations | |
| State Electricity Companies | 8,192.80 | 65.85 | 5,678.84 | 65.46 | 7,032.10 | 80.47 |
As of March 31, 2025, 82.08% of our Order Book relies on state electricity companies, and any financial instability or failure to recover dues could significantly impact our business. Additionally, the demand for transformers is closely tied to economic growth and government policies in the power sector. A slowdown in the economy or unfavourable policy changes could negatively affect our revenue and profitability.
Key Performance Indicators and Certain Non-GAAP Measures
The following table sets forth certain financial and operational information for the years indicated:
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Revenue from Operations | 12,441.80 | 8,675.53 | 8,738.83 |
| Growth in Revenue from Operations (%) | 43.41% | (0.72%) | 39.67% |
| EBITDA | 1,998.82 | 1,231.58 | 1,431.15 |
| EBITDA Margin (%) | 16.07% | 14.20% | 16.38% |
| Profit after tax | 1,186.47 | 635.21 | 874.73 |
| PAT Margin (%) | 9.54% | 7.32% | 10.01% |
| RoE (%) | 33.91% | 27.80% | 53.05% |
| RoCE (%) | 39.43% | 42.34% | 57.99% |
| Net Working Capital | 2,207.60 | 1,586.35 | 1,365.52 |
| Net Working Capital Days (days) | 65 | 67 | 57 |
| Order Book | 16,429.58 | 12,713.80 | 5,340.62 |
| Order Book break-up | |||
| Orders from government and public sector entities | 13,485.20 | 9,375.23 | 3,306.68 |
| Private sector entities | 2944.38 | 3,338.57 | 2,033.94 |
Notes:
1. Growth in Revenue from Operations is calculated as a percentage of Revenue from operations of the relevant year less Revenue from operations of the preceding year, divided by Revenue from operations of the preceding year.
2. EBITDA is calculated as Profit/(loss) before tax for the year add finance cost, depreciation and amortisation expenses.
3. EBITDA Margin is calculated as EBITDA divided by Revenue from operations.
4. Profit after tax is Profit after tax after share of profit/(Loss) of Associate as reported in the Restated Consolidated Financial Information.
5. PAT Margin is calculated as Profit after tax after share of profit/(Loss) of Associate divided by Revenue from Operations.
6. Return on Equity is calculated as Profit after tax after share of profit/(Loss) of Associate divided by Net Worth. Net worth has been defined means the aggregate value of the paid-up share capital and other equity.
7. Return on Capital Employed is calculated as EBIT divided by Capital employed. EBIT is calculated as Profit/(loss) before tax for the year as increased by finance cost. Capital employed is defined as total debt (Long Term borrowings + Short Term borrowings) plus Net Worth as on the last date of the reporting period.
8. Net Working capital is calculated as difference between current assets (excluding cash and cash equivalents and bank balances other than cash and cash equivalents) and current liabilities (excluding current borrowings).
9. Net working capital days have been calculated as Net working capital divided by revenue from operations * 365.
Significant Accounting Policies
The significant accounting policies adopted in the preparation of our Financial Statements are set forth below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of Preparation
The Restated Consolidated Financial Information relates to the Company and has been specifically prepared for inclusion in the document to be filed by the Company with the Securities and Exchange Board of India ("SEBI") in connection with the proposed Initial Public Offer (‘IPO) of equity shares of the Group (referred to as the "Offer"). The Restated Consolidated Financial
Information comprise of the Restated Consolidated Balance Sheet as at March 31, 2025, March 31, 2024 and March 31, 2023, the Restated Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Restated Consolidated Cash Flow Statement, the Restated Consolidated Statement of Changes in Equity and Statement of Material Accounting Policies and other explanatory information for the Period ended March 31, 2025, March 31, 2024 and March 31, 2023 (hereinafter collectively referred to as "Restated Consolidated Financial Information").
The Restated Consolidated Financial Information has been prepared to comply in all material respects with the requirements of
Section 26 of Part I of Chapter III of the Companies Act, 2013, as amended (the "Act") read with the Securities and Exchange
Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended from time to time, in pursuance of provisions of Securities and Exchange Board of India Act, 1992 ("ICDR Regulations")
The Restated Financial Information has been compiled by the Management from:
Audited special purpose interim consolidated Ind AS financial statements of the Group as at and for the period ended March 31, 2025prepared in accordance with Indian Accounting Standard (Ind AS) 34 "Interim Financial Reporting", specified under section 133 of the Act and other accounting principles generally accepted in India (the "Special Purpose Interim Consolidated Ind AS Financial Statements") which have been approved by the Board of Directors at their meeting held on January 31, 2025.
The Special purpose Ind AS financial statements as at and for the year ended March 31, 2025, March 31, 2024, and March 31, 2023 have been prepared after making suitable adjustments to the accounting heads from their Indian GAAP values following accounting policies and accounting policy choices (both mandatory exceptions and optional exemptions availed as per Ind AS 101) consistent with that used at the date of transition to Ind AS (April 01, 2021) and as per the presentation, accounting policies and grouping/classifications including revised Schedule III disclosures followed as at and for the period ended March 31, 2025.
The Restated Consolidated Financial Information:
(a) have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/ reclassifications retrospectively in the financial years ended March 31, 2023, 2024 and 2025 to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at and for the period ended March 31, 2025.
(b) do not require any adjustment for modification as there is no modification in the underlying audit reports.
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.
The restated consolidated financial information do not reflect the effects of events that occurred subsequent to the respective dates of board meeting for adoption of the consolidated financial statements and consolidated special purpose financial information.
Basis of Consolidation
The Restated Consolidated financial information comprises the financial statement of the Group, and the entities controlled by the Group including its subsidiaries and associates as, March 31, 2025, March 31, 2024 and March 31,2023. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Specifically, the Group controls an investee if and only if the Group has:
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)
Exposure, or rights, to variable returns from its involvement with the investee, and the ability to use its power over the investee to affects its returns.
Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:
The contractual arrangement with the other vote holders of the investee. Rights arising from other contractual arrangements.
Rights arising from other contractual arrangements.
The Groups voting rights and potential voting rights.
The size of the groups holding of voting rights relative to the size and dispersion of the holdings of the other voting holders.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the Restated Consolidated financial information from the date the Group gains control until the date the Group ceases to control the subsidiary.
The Restated Consolidated financial information are prepared using uniform accounting policies for like transactions and other events in similar circumstances. If a member of the Group uses accounting policies other than those adopted in the restated consolidated financial information for like transactions and events in similar circumstances, appropriate adjustments are made to that Group members financial statements in preparing the restated consolidated financial information to ensure conformity with the Groups accounting policies.
The restated consolidated financial information of all entities used for the purpose of consolidation are drawn up to same reporting date as that of the parent company, i.e. year ended on March 31, 2025, March 31, 2024 and March 31, 2023.
Consolidation procedure:
Combine like items of assets, liabilities, equity, income, expenses and cash flows of the parent with those of its subsidiaries. For this purpose, income and expenses of the subsidiary are based on the amounts of the assets and liabilities recognised in the consolidated financial statements at the acquisition date.
Offset (eliminate) the carrying amount of the parents investment in each subsidiary and the parents portion of equity of each subsidiary
Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between entities of the group (profits or losses resulting from intragroup transactions that are recognised in assets, such as inventory and property, plant and equipment, are eliminated in full).
Restated Consolidated Financial information of Profit and loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial information of subsidiaries to bring their accounting policies into line with the Groups accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
The carrying amount of the investment is adjusted to recognise changes in the Groups share of net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment and is not tested for impairment individually.
| Name of Entity | Relationship | Country of Incorporation | % of holding as on March 31, 2025 | % of holding as on March 31, 2024 | % of holding as on March 31, 2023 |
| Atlanta Transformer Private Limited | Subsidiary | India | 100% | 100% | 100% |
| AE Components Private Limited | Subsidiary | India | 100% | - | - |
Associates:
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The Groups investment in its associate are accounted for using the equity method from the date on which it becomes an associate. On acquisition of the investment, any difference between the cost of the investment and the Groups share of the net fair value of the investees identifiable assets and liabilities is accounted for as follows:
Goodwill relating to an associate is included in the carrying amount of the investment. Such goodwill is not amortised.
Any excess of the Groups share of the net fair value of the investees identifiable assets and liabilities over the cost of the investment (if material) is recognised directly in equity as capital reserve in the period in which the investment is acquired."
The Restated Consolidated Financial Information is presented in millions, except when otherwise indicated.
The said consolidated financial statements have been prepared by making Ind AS adjustments to the audited consolidated financial statements of the company as at and for the year ended March 31, 2025, 2024 and 2023 prepared in accordance with the accounting standards notified under the section 133 of the Act ("Indian GAAP") which was approved by the Board of directors at the meeting held on September 3, 2024 and September 29, 2023, respectively.
These Restated Consolidated Financial Information has been prepared in accordance with the Indian Accounting Standards (referred to as "Ind AS") as prescribed under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules,2015 as amended from time to time.
Use of estimates
The preparation of the Restated Consolidated Financial Information is in conformity with the recognition and measurement principles of Ind AS. It requires management of the Company to make estimates and judgements that affect the reported balances of assets and liabilities, disclosures of contingent liabilities as at the date of standalone financial statements and the reported amounts of income and expenses for the periods presented.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.
The Group uses the following critical accounting estimates in preparation of its consolidated financial statements
(i) Useful lives of property, plant and equipment
The Group reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.
(ii) Fair value measurement of financial instruments
When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow/NAV model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
(iii) Provision for income tax and deferred tax assets
The Group uses estimates and judgements based on the relevant rulings in the areas of allocation of revenue, costs, allowances and disallowances which is exercised while determining the provision for income tax. A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. Accordingly, the Company exercises its judgement to reassess the carrying amount of deferred tax assets at the end of each reporting period.
(iv) Provision for Expected Credit Losses (ECL) of trade receivables
The Group uses a provision matrix to calculate ECLs for trade receivables. The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography, product type, customer type and rating, and coverage by letters of credit and other forms of credit insurance). The provision matrix is initially based on the
Groups historical observed default rates. The Company will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. At every reporting date, the historical observed default rates are updated and changes in the forwardlooking estimates are analysed.
The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate.The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The
Groups historical credit loss experience and forecast of economic conditions may also not be representative of customers actual default in the future. The information about the ECLs on the Groupss trade receivables and contract assets is disclosed in Notes.
(v) Provisions and contingent liabilities
The Group estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.
The Group uses significant judgements to assess contingent liabilities. Contingent liabilities are recognised when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the group or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor disclosed in the standalone financial statements.
Property, Plant and Equipment
Property, plant and equipment (including furniture, fixtures, vehicles, etc.) held for use in the production or supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost less accumulated depreciation and accumulated impairment losses. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses. When significant parts of plant and equipment are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. Freehold land is not depreciated.
Capital work in progress is stated at cost, net of impairment loss, if any. Cost includes items directly attributable to the construction or acquisition of the item of property, plant and equipment, and, for qualifying assets, borrowing costs capitalised in accordance with the Groups accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as-other property assets, commences when the assets are ready for their intended use.
Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
Depreciation is charged on a pro-rata basis at the straight line method over estimated economic useful lives of its property, plant and equipment generally in accordance with that provided in the Schedule II to the Act as provided below.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss. The useful lives for various property, plant and equipment are given below:
| Type of Assets | Period |
| Office Building | 60 Years |
| Buildings | 30 Years |
| Plant and Equipment | 15 Years |
| Furniture and Fixtures | 10 Years |
| Vehicles | 8 Years |
| Office equipment | 5 Years |
| Computers | 3 Years |
| Type of Assets | Period |
| Electrical Installation and Equipments | 10 Years |
Intangible Asset and Amortisation
Intangible assets are recognized only if it is probable that future economic benefits that are attributable to the assets will flow to the Group and the cost of assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized over the period of five years.
Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Group as a lessee
(i) Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the underlying assets.
Right of use assets is evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
(ii) Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.
Group measure the lease liability by (a) increasing the carrying amount to reflect interest on the lease liability; (b) reducing the carrying amount to reflect the lease payments made; and (c) remeasuring the carrying amount to reflect any reassessment or lease modifications.
(iii) Short term Lease:
Short term lease is that, at the commencement date, has a lease term of 12 months or less. A lease that contains a purchase option is not a short-term lease. If the Group elected to apply short term lease, the lessee shall recognise the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.
Company as a lessor
Leases for which the Group is a lessor is classified as finance or operating lease. Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.
Impairment
At the end of each reporting period, the Group assesses, whether there is any indication that an asset may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Recoverable amount is the higher of fair value less costs of disposal and value in use.
When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash generating units, or otherwise they are allocated to the smallest Company of cash-generating units for which a reasonable and consistent allocation basis can be identified.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.
The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Groups cash generating unit (CGU).
If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
Financial instruments
A financial instrument is any contract that gives rise to asset of one entity and a financial liability or equity instrument of another entity. Financial instruments also include derivative contracts such as foreign currency forward contracts, cross currency interest rate swaps, interest rate swaps and currency options; and embedded derivatives in the host contract.
Financial Assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
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 recognized on the trade date, i.e., the date that the group commits to purchase or sell the asset.
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 recognized on the trade date, i.e., the date that the company commits to purchase or sell the asset.
Classifications
The Group classifies its financial assets as subsequently measured at either amortised cost or fair value through other comprehensive income (FVOCI) or fair value through Profit and Loss Account (FVTPL) on the basis of either Groups business model for managing the financial assets or Contractual cash flow characteristics of the financial assets.
Business model assessment
The Group makes an assessment of the objective of a business model in which an asset is held at an instrument level because this best reflects the way the business is managed and information is provided to management.
Debt instruments at amortised cost
A financial asset is measured at amortised cost only if both of the following conditions are met:
It is held within a business model whose objective is to hold assets in order to collect contractual cash flows.
The contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest.
After initial measurement, such financial assets are subsequently measured at amortised cost using the Effective Interest Rate
(‘EIR) method. 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 income in the profit or loss. The losses arising from impairment are recognised in the profit or loss.
Debt instrument at fair value through Other Comprehensive Income (FVOCI)
Debt instruments with contractual cash flow characteristics that are solely payments of principal and interest and held in a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets are classified to be measured at FVOCI.
Debt instrument at fair value through profit and loss (FVTPL)
Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVOCI, is classified as at FVTPL.
In addition, the group may elect to classify a debt instrument, which otherwise meets amortized cost or FVOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency referred to as
‘accounting mismatch).
Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.
Equity Instruments
All equity instruments in scope of Ind AS 109 are measured at fair value and all changes in fair value are recorded in FVTPL. On initial recognition an equity investment that is not held for trading, the group may irrevocably elect to present subsequent changes in fair value in OCI and fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to statement of profit and loss, even on sale of investment. However, the group may transfer the cumulative gain or loss within equity. This election is made on an investment-by-investment basis.
All other Financial Instruments are classified as measured at FVTPL
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the companys balance sheet) when:
The rights to receive cash flows from the asset have expired, or
The group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through arrangement; and either (a) the group has transferred substantially all the risks and rewards of the asset, or (b) the group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the group continues to recognize the transferred asset to the extent of the groups continuing involvement. In that case, the group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the group has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the company could be required to repay.
On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognised) and the sum of (i) the consideration received (including any new asset obtained less any new liability assumed) and (ii) any cumulative gain or loss that had been recognised in OCI is recognised in profit or loss.
Impairment of financial assets
The Group assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and at FVOCI.
For recognition of impairment loss on other financial assets and risk exposure, the Group determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity revert to recognizing impairment loss allowance based on 12 month ECL.
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12 -month ECL is a portion of the lifetime ECL which results from default events on a financial instrument that are possible within 12 months after the reporting date.
With regard to trade receivable, the Group applies the simplified approach as permitted by Ind AS 109, Financial Instruments, which requires expected lifetime losses to be recognised from the initial recognition of the trade receivables.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, amortised cost, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of amortised cost, net of directly attributable transaction costs.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial Liabilities measured at amortised cost
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised 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 statement of profit and loss.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Group may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss.
Derecognition of financial liabilities
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
Reclassification of financial assets
The group determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The groups senior management determines change in the business model as a result of external or internal changes which are significant to the companys operations. Such changes are evident to external parties. A change in the business model occurs when the group either begins or ceases to perform an activity that is significant to its operations. If the group reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The group does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Investments
Investment in Subsidiaries, associates
The investment in subsidiaries and associates are carried at cost as per IND AS 27. The Group regardless of the nature of its involvement with an entity (the investee), determines whether it is a parent by assessing whether it controls the investee. The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Investments are accounted in accordance with IND AS 105 when they are classified as held for sale. On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss. Such non-current assets classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Any expected loss is recognised immediately in the statement of profit and loss.
Employee benefits
Short term employee benefits
Short-term employee benefits are expensed as the related service is provided. 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.
Accumulated compensated absences which are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are treated as short-term benefits. The Group measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.
Defined contribution plans
Obligations for contributions to defined contribution plans are expensed as the related service is provided. The group has following defined contribution plans:
(i) Provident fund
The Group makes specified monthly contributions towards Provident Fund and Employees State Insurance Corporation (‘ESIC).
The contribution is recognized as an expense in the Statement of Profit and Loss during the period in which employee renders the related service.
Defined benefit plans
The groups net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the group, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.
Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in Other Comprehensive Income. Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the net defined liability (asset), to the net defined liability (asset) at the start of the financial year after taking into account any changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs
The Group has following defined benefit plans:
Gratuity
The group provides for its gratuity liability based on actuarial valuation of the gratuity liability as at the Balance Sheet date, based on Projected Unit Credit Method, carried out by an independent actuary The contributions made are recognized as plan assets. The defined benefit obligation as reduced by fair value of plan assets is recognized in the Balance Sheet. Remeasurements are recognized in the Other Comprehensive Income, net of tax in the year in which they arise.
The group has following long term employment benefit plans:
Leave Encashment
Leave encashment is payable to eligible employees at the time of retirement. The liability for leave encashment, which is a defined benefit scheme, is provided based on actuarial valuation as at the Balance Sheet date, based on Projected Unit Credit Method, carried out by an independent actuary.
Employee Benefits
Post-employment benefit plans
Contributions to defined contribution retirement benefit schemes are recognised as expense when employees have rendered services entitling them to such benefits.
For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in full in the statement of profit and loss for the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested, or amortised on a straight-line basis over the average period until the benefits become vested.
The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, and as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to the present value of available refunds and reductions in future contributions to the scheme.
Other employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service. These benefits include compensated absences such as paid annual leave, overseas social security contributions and performance incentives.
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as an actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date.
Revenue recognition
Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled inexchange for those goods or services. The Company collects GST on behalf of the government and, therefore, it is not an economic benefit flowing to the Group. Hence, it is excluded from revenue.
Revenue from the sale of goods is recognized at the point in time when control of the asset is transferred to the customer, generally on the delivery of the goods and there are no unfulfilled obligations.
The Group considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price, the group considers the effects of variable consideration, the existence of significant financing component, non-cash component and consideration payable to the customer like return, allowances, trade discounts and volume rebates.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, price concessions, incentives, and returns, if any, as specified in the contracts with the customers. Revenue excludes taxes collected from customers on behalf of the government.
Revenue from service related activities is recognized as and when services are rendered and on the basis of contractual terms with the parties.
Warranty obligations
The Group generally provides for warranties for general repair of defects that existed at the time of sale. These warranties are assurance-type warranties under Ind AS 115, which are accounted for under Ind AS 37
Other Income
(i) Interest Income
For all debt instruments measured either at amortised cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the Group estimates the expected cash flows instrument.
(ii) Dividend income
Dividend income is recognised when the right to receive payment is established, which is generally when shareholders approve the dividend.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Companys current tax is calculated using tax rates and laws that have beenenacted or substantively enacted by the end of the reporting period.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
(i) When the deferred tax liability arises from the initial recognition of goodwill or 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 taxable profit or loss.
(ii) In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. 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:
(i) 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 taxable profit or loss.
(ii) In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax for the year
Current and deferred tax are recognised in profit or 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 respectively.
Foreign currency transactions
Transactions in foreign currencies are translated into the Groups functional currency at the exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Foreign currency differences are generally recognised in profit or loss.
The gain or loss arising on translation of nonmonetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).
Inventories
Inventories are measured at the lower of Cost and Net Realizable Value. The cost of inventories is based on the first in first-out formula, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, costs include an appropriate share of fixed production overheads based on normal operating capacity.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The Net realisable value of work in progress is determined with reference to the selling prices of related finished products.
Raw materials, components and other supplies held for use in the production of finished products are not written down below cost except in cases where material prices have declined and it is estimated that the cost of the finished products will exceed their net realizable value.
The comparison of cost and net realizable value is made on an item-by-item basis
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Group cannot avoid because it has the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to the contract (i.e., both incremental costs and an allocation of costs directly related to contract activities).
Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value.
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposit held at call with financial institutions, other short - term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.
Earnings per share
Basic earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.
Standards issued but not yet effective
As on the date of release of these restated financial information and Proforma Condensed Consolidated Financial Information, ministry of corporate affairs has not issued any new standards/amendments to existing standards which are effective from April 1, 2024.
Principal Components of Statement of Profit and Loss
Total income
Our total income comprises revenue from operations and other income. We generate majority of our revenue from the sale of transformers and allied products.
Revenue from operations
Our revenue from operations primarily includes revenue from the sale of transformers and allied products, sale of services including erection and commissioning, repair job work, revenue towards incidental services, and testing fees, and from other operating revenues such as scrap sales.
Other income
Our other income primarily includes (i) interest income on deposit, (ii) interest income of financial assets carried at costs, (iii) other interest income, (iii) dividend income, (iv) profit on sale of property, plant and equipment, (v) net gain on foreign currency translation, (vi) reversal of excess expected credit loss, (vii) insurance claimed income, (viii) interest on income tax refund, (ix) miscellaneous receipt, (x) recoveries against bad debt written off, and (xi) sundry balances written back.
Expenses
Our total expenses include the below mentioned expenses:
Cost of material consumed
Our cost of material consumed represents amount incurred towards raw material consumed including the costs of lamination, copper, oil, goods in transit, and other products, and comprises of opening stock at the beginning of the financial year, purchases during the year and less closing stock at the end of the financial year.
Changes in inventories of finished goods, Stock in Trade and work in progress
Our purchase of stock in trade represents the net increase / decrease in the finished goods, work in progress stock, and other stock.
Employee benefits expense
Our employee benefits expense primarily include (i) salaries and wages, (ii) contribution to provident and other funds, and (iii) staff welfare expenses.
Finance costs
Our finance costs primarily include (i) interest expenses, and (ii) other borrowing costs, including acceptance charges, commission on bank guarantees, lease, and other finance cost.
Depreciation and Amortization expense
Our depreciation and amortization primarily include (i) depreciation on plant, property and equipment, (ii) amortization of intangible assets, and (iii) amortization on right-of-use assets.
Other Expenses
Our other expenses primarily include (i) manufacturing expenses such as consumption of stores and tools, erection and commissioning charges, freight and transportation expenses, hire charges on machinery, labour charges, other manufacturing costs, power and fuel consumption, repairs and maintenance of plant and machinery, and testing charges; (ii) selling and distribution expenses such as after sales and services, bad debts, commission to distributors and selling agents, late delivery charges, miscellaneous expenses, other selling and distribution expenses, sales promotion expenses, and warranty expenses; (iii) other expenses, such as corporate social responsibility (CSR) expenditure, donation, freight outward and cartrage, insurance, legal and professional charges, loading and unloading expenses, loss on disposal of PPE, rent, rates and taxes, repair and maintenance of others, travelling and conveyance, (iv) provision for expected credit loss, (v) statutory auditor remuneration, and (v) other expenses.
Tax Expenses
Our tax expenses primarily include current tax, deferred tax, and short/excess provision of tax.
Profit/(loss) after tax for the period
Profit/(loss) after tax for the period includes the profit or the loss for the year.
Results of Operations Based on our Restated Consolidated Financial Information
The following table sets forth select financial data from our statement of profit and loss for Fiscals 2025, 2024 and 2023, the components of which are also expressed as a percentage of total revenue for such periods:
(in million)
| Particulars | For Year ended 31 March 2025 | As a percentage of total income | For Year ended 31 March 2024 | As a percentage of total income | For Year ended March 31, 2023 | As a percentage of total income |
| Income | ||||||
| Revenue From Operations | 12,441.80 | 99.50% | 8,675.53 | 99.48% | 8,738.83 | 99.68% |
| Other Income | 63.05 | 0.50% | 44.96 | 0.52% | 27.73 | 0.32% |
| Total Income | 12,504.85 | 100.00% | 8,720.49 | 100.00% | 8,766.56 | 100.00% |
| Expenses | ||||||
| Cost of materials consumed | 8.614.38 | 68.89% | 6,755.83 | 77.47% | 7,063.07 | 80.57% |
| Changes in inventories of finished goods, Stock in Trade and work in progress | 549.25 | 4.39% | (403.56) | (4.63%) | (679.02) | (7.75%) |
| Employee benefits expense | 294.42 | 2.35% | 216.04 | 2.48% | 169.07 | 1.93% |
| Finance costs | 342.38 | 2.74% | 300.32 | 3.44% | 275.70 | 3.14% |
| Depreciation and amortization expense | 63.05 | 0.50% | 58.60 | 0.67% | 50.98 | 0.58% |
| Other expenses | 1,047.98 | 8.38% | 920.61 | 10.56% | 782.29 | 8.92% |
| Total Expenses | 10,911.46 | 87.26% | 7,847.83 | 89.99% | 7,662.09 | 87.40% |
| Profit/(loss) before tax | 1,593.39 | 12.74% | 872.66 | 10.01% | 1,104.47 | 12.60% |
| Tax expense | ||||||
| Current tax | 390.00 | 3.12% | 235.00 | 2.69% | 225.00 | 2.57% |
| Deferred tax | 6.95 | 0.06% | (1.44) | (0.02)% | 4.77 | 0.05% |
| Short/Excess provision of tax | 9.97 | 0.08% | 5.47 | 0.06% | (0.71) | (0.01)% |
| Total Tax expense | 406.93 | 3.25% | 239.03 | 2.74% | 229.06 | 2.61% |
| Profit/(loss) after tax for the period | 1,186.47 | 9.49% | 633.63 | 7.27% | 875.41 | 9.99% |
| Share of Profit / (Loss) of Associate | 1.58 | 0.02% | (0.69) | (0.01%) | ||
| Profit after tax after share of profit/(Loss) of Associate | 1,186.47 | 9.49% | 635.21 | 7.28% | 874.73 | 9.98% |
| Other Comprehensive Income | ||||||
| OCI that will not be reclassified to P&L | ||||||
| (i) Remeasurements of the defined benefit plans | (3.15) | (0.03%) | (1.78) | (0.02%) | (0.45) | (0.01%) |
| (ii) Equity Instruments through | (0.16) | (0.01%) | 3.18 | 0.04% | 0.94 | 0.01% |
| Other Comprehensive Income OCI that will be reclassified to P&L | ||||||
| Share in OCI Gain/Loss of Associate | (0.83) | (0.01%) | (3.24) | (0.04%) | ||
| Total Other Comprehensive Income | (3.31) | (0.03%) | 0.57 | 0.01% | (2.75) | (0.03%) |
| Total Comprehensive Income for the period | 1,183.16 | 9.46% | 635.78 | 7.29% | 871.98 | 9.95% |
COMPARISON OF THE RESULTS OF OPERATIONS
Fiscal 2025 Compared to Fiscal 2024
Total revenue
Our total revenue increased by 43.40 % to 12,504.85 million for Fiscal 2025 from 8,720.49 million for Fiscal 2024, on account of the factors discussed below.
Revenue from operations
Our revenue from operations increased by 43.41 % to 12,441.80 million for Fiscal 2025 from 8,675.53 million for Fiscal 2024, primarily due to an increase in sales from power transformer which increased by 22.91% to 9,306.52 million for Fiscal 2025 from 7,572.08 million for Fiscal 2024. Sales from inverter duty transformers increased by 186.60% to 1,312.63 million for Fiscal 2025 from Rs 458.00 million for Fiscal 2024.
Other income
Our other income increased by 40.25% to 63.05 million for Fiscal 2025 from 44.96 million for Fiscal 2024, primarily due to increase in reversal of expected credit loss of 12.86 million for Fiscal 2025 from Nil in Fiscal 2024 and an increase in the interest on fixed deposits of 44.60 million for Fiscal 2025 from 34.51 million for Fiscal 2024 and on account of increase in the value of fixed deposits.
Expenses
Our total expenses increased by 39.04 % to 10,911.46 million for Fiscal 2025 from 7,847.83 million for Fiscal 2024, on account of the factors discussed below.
Cost of Material Consumed including change in Inventories of Finished Goods, Stock in Trade and Work in Progress
Cost of material consumed including change in inventory of finished goods, stock in trade and work in progress increased by 44.26% to 9,163.63 million for Fiscal 2025 from 6352.27 million for Fiscal 2024 due to increase in the revenue from operations on account of consumption of major raw materials such as copper to 2,871.61 million for Fiscal 2025 from 2,375.30 million for Fiscal 2024 and lamination to 2,218.59 million for Fiscal 2025 from 1,738.79 million for Fiscal 2024.
Employee Benefits Expense
Our employee benefits expense increased by 36.28 % to 294.42 million for Fiscal 2025 from 216.04 million for Fiscal 2024, primarily due to an increase in salaries, wages and bonus to 261.16 million for Fiscal 2025 from 192.55 million for Fiscal 2024 primarily on accounts of increments provided during year in Fiscal 2025. This was primarily due to an increase in the number of employees to 311 for Fiscal 2025 from 284 for Fiscal 2024.
Finance Costs
Our finance costs increased by 14.01% to 342.38 million for Fiscal 2025 from 300.32 million for Fiscal 2024, primarily due to increase in the commission on bank guarantee to 159.76 million for Fiscal 2025 from 70.38 million for Fiscal 2024. The amount of bank guarantee increased to 2,635.19 million for Fiscal 2025 from 1,442.21 million for Fiscal 2024 which was partially set-off by a reduction in interest expenses from 161.01 million for Fiscal 2024 to 118.67 million for Fiscal 2025 primarily on account of lower utilization of cash credit limits.
Depreciation and Amortization expense
Our depreciation and amortization expense increased by 7.59% to 63.05 million for Fiscal 2025 from 58.60 million for Fiscal 2024, primarily due to additional capitalization in property, plant and equipment aggregating to 61.05 million which was primarily due to an additional purchase of property, plant and equipment.
Other Expenses
Our other expenses increased by 13.84% to 1,047.98 million for Fiscal 2025 from 920.61 million for Fiscal 2024, primarily due to an increase in labour charges 156.44 million for Fiscal 2025 from 115.70 million for Fiscal 2024, increase in commission to distributors and selling agent to 57.17 million for Fiscal 2025 from 43.58 million for Fiscal 2024 and increase in the freight outward and cartage to 219.28 million for Fiscal 2025 from 188.39 million for Fiscal 2024. Further, the late delivery expenses increased to 186.63 million for Fiscal 2025 from 115.86 million for Fiscal 2024.
Tax Expense
Our tax expense increased by 70.24% to 406.93 million for Fiscal 2025 from 239.03 million for Fiscal 2024, primarily due to an increase in the current tax expenses to 390.00 million for Fiscal 2024 from 235.00 million for Fiscal 2024, increase in the deferred tax expenses to 6.95 million for Fiscal 2025 from (1.44) million for Fiscal 2024, increase in the income tax of earlier year to 9.97 million for Fiscal 2025 from 5.47 million for Fiscal 2024. As a result, total tax expense amounted to 406.93 million for Fiscal 2025 from 239.03 million for Fiscal 2024.
Profit after tax for the period
As a result of the foregoing factors, our profit after tax for the period increased by 87.25% to 1,186.47 million for Fiscal 2025 from 633.63 million for Fiscal 2024.
Fiscal 2024 Compared to Fiscal 2023
Total revenue
Our total revenue decreased marginally by 0.53% to 8,720.49 million for Fiscal 2024 from 8,766.56 million for Fiscal 2023, on account of the factors discussed below.
Revenue from operations
Our revenue from operations decreased marginally by 0.72% to 8,675.53 million for Fiscal 2024 from 8,738.83 million for Fiscal 2023, primarily due to non-availability of the bank guarantee limits due to the delay in the enhancement of our existing working capital limits. During the year, our Company enhanced the capacity of cranes and related structures at Anand Unit-I along with setting up of new oven and civil work at the Bangalore Unit.
Other income
Our other income increased by 62.15% to 44.96 million for Fiscal 2024 from 27.73 million for Fiscal 2023, primarily due to increase in interest on fixed deposit receipts to 34.79 million for Fiscal 2024 from 25.22 million for Fiscal 2023. This was on account of increase in the interest rate ranging from 6.75% to 6.90% for Fiscal 2024 from 5.10 % to 6.70% for Fiscal 2023, increase in the income tax refund to 4.47 million for Fiscal 2024 from Nil for Fiscal 2023.
Expenses
Our total expenses increased by 2.42% to 7,847.83 million for Fiscal 2024 from 7,662.09 million for Fiscal 2023, on account of the factors discussed below.
Cost of Material Consumed including change in Inventories of Finished Goods, Stock in Trade and Work in Progress
Consumption of major raw material such as copper, decreased to 2,375.30 million for Fiscal 2024 from 2,377.39 million for Fiscal 2023 and lamination to 1,738.40 million for Fiscal 2024 from 2,064.65 million for Fiscal 2023. Further, cost of material consumed including change in inventory of finished goods, stock in trade and work in progress decreased by 0.50% to 6,352.27 million for Fiscal 2024 from 6,384.05 million for Fiscal 2023 due to decrease in the revenue from operations by 0.72% to 8,675.53 million for Fiscal 2024 from 8,738.83 million for Fiscal 2023.
Employee Benefits Expense
Our employee benefits expense increased by 27.78% to 216.04 million for Fiscal 2024 from 169.07 million for Fiscal 2023, primarily due to increase in salaries, wages and bonus to 192.55 million for Fiscal 2024 from 146.75 million for Fiscal 2023. This was on account of increments provided during the year at average increment rate of 17.00% and increase in the number of employees to 284 for Fiscal 2024 from 220 for Fiscal 2023.
Finance Costs
Our finance costs increased by 8.93% to 300.32 million for Fiscal 2024 from 275.70 million for Fiscal 2023, primarily due to increase in the interest expenses by 20.12% to 161.01 million for Fiscal 2024 from 134.04 million for Fiscal 2023. This was on account of increase in the average utilisation of fund-based limit by 17.00% and average increase in the interest rate by 1.00% and increase in the commission on bank guarantee to 70.38 million for Fiscal 2024 from 60.82 million for Fiscal 2023. The amount of bank guarantee increased to 1,442.21 million for Fiscal 2024 from 1,251.41 million for Fiscal 2023.
Depreciation and Amortization expense
Our depreciation and amortization expense increased by 14.96% to 58.60 million for Fiscal 2024 from 50.98 million for Fiscal 2023, primarily due to capitalization in property, plant and equipment to 232.50 million in Fiscal 2024. Our property, machinery and equipment increased to 59.39 million due to construction of a building of 17.01 million for additional oven at Bangalore facility and additional crane capacity at Unit I from 44.25 million in Fiscal 2023.
Other Expenses
Our other expenses increased by 17.68% to 920.61 million for Fiscal 2024 from 782.29 million for Fiscal 2023, primarily due to increase in the short circuit test expense to 114.23 million for Fiscal 2024 from 60.96 million for Fiscal 2023. This was on account of increase in the number of tests performed during the year, increase in commission to distributors and selling agent to 43.58 million for Fiscal 2024 from 26.26 million for Fiscal 2023 and increase in the after sales and services to 26.28 million for Fiscal 2024 from 15.77 million for Fiscal 2023.
Tax Expense
Our tax expense increased by 4.35% to 239.03 million for Fiscal 2024 from 229.06 million for Fiscal 2023, primarily due to increase in the current tax expenses to 235.00 million for Fiscal 2024 from 225.00 million for Fiscal 2023 and decrease in the deferred tax expenses to (1.44) million for Fiscal 2024 from 4.77 million for Fiscal 2023. However, our income tax of earlier year increased to 5.47 million for Fiscal 2024 from (0.71) million for Fiscal 2023. As a result, the total tax expense amounted to 239.03 million for Fiscal 2024 from 229.06 million for Fiscal 2023
Profit after tax for the period
As a result of the foregoing factors, our profit after tax for the period decreased by 27.62% to 633.63 million for Fiscal 2024 from
875.41 million for Fiscal 2023.
Liquidity and Capital Resources
Historically, our primary liquidity requirements have been to finance our working capital needs for our operations. We have met these requirements through cash flows from operations, equity infusions from shareholders and borrowings. As of March 31, 2025, we had 2,151.18 million in inventories, 4,242.18 million in financial assets including trade receivables, cash and cash equivalents, bank balances other than cash and cash equivalents, loans and other financial assets and 167.20 million in other current assets.
For Fiscals 2025, 2024 and 2023, and our total liabilities based on our Restated Consolidated Financial Information amounted to
5,162.82 million, 3,307.81million and 3,958.65 million respectively.
Cash Flows Based on Restated Consolidated Financial Information
The table below summarizes the statement of cash flows, as per our cash flow statements, for the periods indicated:
| Fiscal | |||
| Particulars | 2025 | 2024 | 2023 |
| (in million) | |||
| Net cash generated by operating activities | 835.76 | 883.11 | 519.75 |
| Net cash generated from / (used in) investing activities | (1,407.12) | (356.53) | (178.16) |
| Net cash used in financing activities | 572.83 | (555.69) | (312.73) |
| Cash and cash equivalents at the end of the year | 3.67 | 2.18 | 31.29 |
Operating Activities
Fiscal 2025
Our net cash generated from operating activities was 835.76 million in Fiscal 2025. Our operating profit before working capital change was 1,954.58 million in Fiscal 2025. The movements in working capital in Fiscal 2025 primarily comprised of (i) increase in the trade receivables of 1,723.71 million, (ii) decrease in other financial assets of 75.98 million, (iii) decrease in the inventories of 237.36 million, (iv) increase in other assets of 185.14 million, (v) increase in trade payables of 718.04 million, (vi) increase in other financial liabilities of 163.80 million, (vii) increase in other liabilities of 10.32 million, and (viii) increase in provisions of 2.87 million
Fiscal 2024
Our net cash generated from operating activities was 883.12 million in Fiscal 2024. Our operating profit before working capital change was 1,214.91 million in Fiscal 2024. The movements in working capital in Fiscal 2024 primarily consisted of (i) decrease in the trade receivables of 786.18 million, (ii) decrease in other financial assets of 73.36 million, (iii) increase in the inventories of 519.30 million, (iv) increase in other assets of 35.17 million, (v) decrease in trade payables of 410.42 million, (vi) decrease in other financial liabilities of 0.07 million, (vii) decrease in other liabilities of 18.61 million, and (viii) increase in provisions of
23.40 million.
Fiscal 2023
Our net cash generated from operating activities was 519.76 million in Fiscal 2023. Our operating profit before working capital change was 1,410.68 million in Fiscal 2023. The movements in working capital in Fiscal 2023 primarily consisted of (i) increase in the trade receivables of 610.32 million, (ii) increase in other financial assets of 50.28 million, (iii) increase in inventories of 645.73 million, (iv) decrease in other assets of 21.58 million, (v) increase in trade payables of 446.51 million, (vi) decrease in other financial liabilities of 4.12 million, (vii) increase in other liabilities of 118.06 million, and (viii) increase in provisions of 7.14 million.
Investing Activities
Fiscal 2025
Our net cash (used) in investing activities was 1,407.12 million in Fiscal 2025. This was primarily due to sales of investment of
31.16 million, payment for bank deposits of 352.67 million, purchase of property, plant and equipment of 1,130.26 million, purchase of intangible assets of 0.59 million, purchase of other investment of 0.15 million, dividends received of 0.12 million, and interest income of 44.96 million.
Fiscal 2024
Our net cash (used) in investing activities was 356.53 million in Fiscal 2024. This was primarily due to payment for bank deposits of 66.18 million, purchase of property, plant and equipment of 322.04 million, purchase of intangible assets of 3.18 million, purchase of other investment of 0.00 million, dividends received of 0.08 million, and interest income of 34.79 million.
Fiscal 2023
Our net cash (used) in investing activities was 178.16 million in Fiscal 2023. This was primarily due to payment for bank deposits of 134.03 million, purchase of property, plant and equipment of 68.46 million, purchase of intangible assets of 0.00 million, purchase of other investment of 0.94 million, dividends received of 0.05 million, and interest income of 25.22 million.
Financing Activities
Fiscal 2025
Our net cash generated in financing activities was 572.84 million in Fiscal 2025. This was primarily due to repayment of lease liabilities of 9.13 million, proceeds from short term borrowings of 32.74 million, proceeds from long term borrowings of 891.60 million and finance cost of 342.38 million
Fiscal 2024
Our net cash (used) in financing activities was 555.69 million in Fiscal 2024. This was primarily due to repayment of lease liabilities of 10.41 million, proceeds from short term borrowings of (217.69) million, proceeds from long term borrowings of (27.27) million and finance cost of 300.31 million.
Fiscal 2023
Our net cash (used) in financing activities was 312.73 million in Fiscal 2023. This was primarily due to repayment of lease liabilities of 9.04 million, proceeds from short term borrowings of 4.93 million, proceeds from long term borrowings of (32.90) million and finance cost of 275.70 million.
Indebtedness
As of March 31, 2025, we had working capital borrowings of 427.67 million, with a debt-to-equity ratio of 0.40 as per the Restated Consolidated Financial Information. Some of our financing agreements include various conditions and covenants that require us to obtain lender consents prior to carrying out certain activities and entering into certain transactions. We cannot assure you that we will be able to obtain these consents and any failure to obtain these consents could have significant adverse consequences for our business. For further information on our agreements governing our outstanding indebtedness, see "Financial Indebtedness" on page 356.
Commitments
The table below sets forth our commitments as of Fiscal 2025 as per the Restated Consolidated Financial Information.
| Particulars | As at and for Fiscal 2025 | As at and for Fiscal 2024 | As at and for Fiscal 2023 |
(in million) |
|||
| Capital Commitments | 471.47 | 378.01 | 20.77 |
| Total | 471.47 | 378.01 | 20.77 |
Contingent Liabilities
The following table sets forth the principal components of our contingent liabilities as of March 31, 2025, as per the Restated Consolidated Financial Information:
| Particulars | As of March 31, 2025 |
| (in million) | |
| Bill receivables discounted with the Bank and not matured | 117.90 |
| Income tax matters in dispute | 9.24 |
| Claims against the Company not acknowledged as debt | 24.10 |
| Total | 151.25 |
Off-Balance Sheet Arrangements
There are no off-balance sheet arrangements in our Restated Consolidated Financial Information.
Related Party Transactions
We enter into various transactions with related parties. For further information see "Restated Consolidated Financial Information" on page 266.
Quantitative and Qualitative Disclosures about Market Risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they become due. The Group manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. Our senior management oversees the management of these risks. Our senior management ensures that our financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with our policies and risk objectives.
Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Groups receivables from customers and investment securities. Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Group assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. The Groups exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. The Groups exposure are continuously monitored.
Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they become due. The Group manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.
(in million)
| Particulars | As at March 31, 2025 | As at March 31, 2024 | As at March 31, 2023 |
| Expiring within one year term loan | 52.34 | 51.28 | 49.48 |
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks are interest rate risk, currency risk and other price risk.
Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the Group has insignificant interest bearing borrowings, the exposure to risk of changes in market interest rates is minimal. The Group has not used any interest rate derivatives.
(i) Exposure to Interest Rate Risk
(in million)
| Particulars | As at March 31, 2025 | As at March 31, 2024 | As at March 31, 2023 |
| Borrowing bearing fixed rate of interest | 10.38 | 34.93 | 21.73 |
| Borrowing bearing variable rate of interest | 1,399.92 | 451.03 | 709.20 |
| Total | 1,410.30 | 485.96 | 730.92 |
(ii) Sensitivity Analysis
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Groups profit before tax is affected through the impact on floating rate borrowings, as follows:
(in million)
| Particulars | As at March 31, 2025 | As at March 31, 2024 | As at March 31, 2023 |
| Interest Rate - Increase by 50 basis points | 7.00 | 2.26 | 3.55 |
| Interest Rate - Decrease by 50 basis points | (7.00) | (2.26) | (3.55) |
Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group also have operations in international market due to which the Company is also exposed to foreign exchange risk arising from foreign currency transactions primarily with respect to the movement in foreign currency 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 foreign currency). The Group manages its foreign currency risk partly by taking forward exchange contract for transactions of sales and purchases and partly balanced by purchasing of goods/services from the respective countries.
Capital Expenditure
For the Fiscals 2025, 2024 and 2023, our capital expenditure (comprising of property, plant and equipment) were 1,250.36 million, 351.59 million and 72.38 million respectively as per our Restated Consolidated Financial Information.
The following table sets forth additions to property, plant and equipment by category of expenditure, for the Fiscals indicated below:
(in million)
| Particulars | As at and for Fiscal 2025 | As at and for Fiscal 2024 | As at and for Fiscal 2023 |
| Capital expenditure | 122.58 | 232.50 | 44.25 |
Change in accounting policies
Other than as disclosed in the Restated Consolidated Financial Information, there have been no changes in accounting policies in Fiscals 2025, 2024 and 2023.
Significant Economic Changes
Other than as described above under the heading titled "Principal Factors Affecting Our Financial Condition and Results of Operations," to the knowledge of our management, there are no other significant economic changes that materially affect or are likely to affect income from continuing operations.
Unusual or Infrequent Events of Transactions
Except as described in this Red Herring Prospectus, there have been no other events or transactions that, to our knowledge, may be described as "unusual" or "infrequent".
Known Trends or Uncertainties
Our business has been affected and we expect will continue to be affected by the trends identified above in the heading titled
"Principal Factors Affecting Our Financial Condition and Results of Operations" and the uncertainties described in the section titled "Risk Factors" on page 26. To our knowledge, except as described or anticipated in this Red Herring Prospectus, there are no known factors which we expect will have a material adverse impact on our revenues or income from continuing operations.
Future Relationship Between Cost and Income
Other than as described in this Red Herring Prospectus, to the knowledge of our management, there are no known factors that might affect the future relationship between costs and revenues.
New products, Services or Business Verticals
Other than as described in "Our Business" on page 194 of this Red Herring Prospectus, there are no new offerings or business verticals in which we operate.
Seasonality of Business
Given the nature of our business operations, we generally do not believe that our business is seasonal.
Suppliers or Customer Concentration
We are dependent on major customers and suppliers for a significant portion of our revenue. For details, see " Principal Factors Affecting Our Financial Condition and Results of Operations"
Competitive Conditions
We expect to continue to compete with existing and potential competitors in respective segments of our offerings. For details, please refer to the discussions of our competition in "Risk Factors" and "Our Business" on pages 26 and 194, respectively.
Reservations, Qualifications and Adverse Remarks Included by Auditors
There are no reservations, qualifications and adverse remarks included by our Statutory Auditors in the Restated Consolidated Financial Information.
Significant Developments After March 31, 2025
Except as disclosed below, there are no significant developments after the date of last balance sheet i.e. March 31, 2025:
Our Company has acquired 100% equity interest in BTW-Atlanta Transformers India Private Limited, a company previously established as a joint venture with Baoding Tianwei Baobian Electric Co. Ltd. On April 8, 2025, Atlanta UHV Transformers LLP transferred its entire 10.00% equity shareholding (i.e. 22,500,000 equity shares) in BTW to AEL. AEL has acquired the remaining 90.00% of the equity share capital of BTW-Atlanta Transformers India Private Limited by way of transfer of 202,500,000 equity shares from Baoding Tianwei Baobian Electric Co. Ltd pursuant to the acceptance of the right of first refusal notice issued by
Baoding. Accordingly, pursuant to the aforementioned acquisition, BTW-Atlanta Transformers India Private Limited has become a wholly owned subsidiary of our Company.
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