The following discussion and analysis is intended to convey the managements perspective on our financial condition and results of operations for the financial years ended, March 31, 2025, March 31, 2024, and March 31, 2023. The following information is qualified in its entirety by, and should be read together with, the more detailed financial and other information included in this Red Herring Prospectus, including the information contained in "Risk Factors", "Industry Overview", "Our Business" and "Restated Financial Information " on pages 35, 155, 216 and 308, respectively, as well as financial and other information contained in this Red Herring Prospectus as a whole.
Our financial year ends on March 31 of each year, and references to a particular Financial Year or Fiscal are to the 12-month period ended March 31 that year, unless the context indicates otherwise. In this Red Herring Prospectus, unless specified otherwise, any reference to "the Company" or "our Company" refers to Jain Resource Recycling Limited, on a standalone basis, and a reference to "we", "us", "our" or "Jain Metal Group" or "JMG", is a reference to our Company and our subsidiaries and associate, on a consolidated basis.
Unless otherwise stated or the context otherwise requires, the financial information for the financial years ended, March 31, 2025, March 31, 2024, and March 31, 2023, included in this section has been derivedfrom the Restated Financial Information included in this Red Herring Prospectus on page 308. We have also included various financial and operational performance indicators in this Red Herring Prospectus, some of which have not been derived from the Restated Financial Information. The manner of calculation and presentation of some of the financial and operational performance indicators, and the assumptions and estimates used in such calculations, may vary from that used by other companies in India and other jurisdictions. Also see "Risk Factors— This Red Herring Prospectus includes certain Non-GAAP Measures, financial and operational performance indicators and other industry measures related to our operations and financial performance. The Non-GAAP Measures and industry measures may vary from any standard methodology that is applicable across the Indian metal recycling industry and, therefore, may not be comparable with financial or industry related statistical information ofsimilar nomenclature computed and presented by other companies " on page 76. Ind AS differs in certain respects from Indian GAAP, IFRS and U.S. GAAP and other accounting principles with which prospective investors may be familiar. We have not attempted to quantify the impact of the IFRS or U.S. GAAP on the financial information included in this Red Herring Prospectus, nor do we provide a reconciliation of our financial information to IFRS or U.S. GAAP. Also see "Risk Factors— Significant differences exist between the Indian Accounting Standards ("Ind AS") and other accounting principles, such as IFRS, which may be material to investors assessments of our financial condition. " on page 89.
Some of the information in this section, including information with respect to our plans and strategies, contain forward-looking statements that involve risks and uncertainties. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. You should read "Forward-Looking Statements " and "Risk Factors " on pages 34 and 35, respectively, for a discussion of the risks and uncertainties related to those statements that may affect our business, financial condition or results of operations.
Unless stated otherwise, industry and market data used in this section have been extracted from the CRISIL Report, exclusively prepared, commissioned and paidfor by our Company for the purposes of the Offer and issued by CRISIL who was appointed by our Company pursuant to an engagement letter dated September 09, 2024. For further information, see "Risk Factors —Industry information included in this Red Herring Prospectus has been derivedfrom the CRISIL Report, which was prepared by CRISIL and exclusively commissioned and paid for by our Company for the purposes of the Offer, and any reliance on information from the CRISIL Report for making an investment decision in the Offer is subject to inherent risks ", which was prepared by CRISIL and exclusively commissioned and paid for by our Company for the purposes of the Offer, and any reliance on information from the CRISIL Report for making an investment decision in the Offer is subject to inherent risks. " on page 44. Also see "Certain Conventions, Presentation of Financial, Industry and Market Data" on page 31. The CRISIL Report will be available on the website of our Company at www.jainmetalgroup.com from the date of the Red Herring Prospectus until the Bid/Offer Closing Date. Unless otherwise indicated, financial, operational, industry and other related information derived from the CRISIL Report and included herein with respect to any particular year refers to such information for the relevant calendar year.
OVERVIEW
For details regarding the overview of the Company, see "Our Business - Overview" on page 216.
SIGNIFICANT FACTORS AFFECTING OUR FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Our results of operations and financial condition are affected by a number of important factors including: Availability and cost of raw materials consumed
Our ability to remain competitive and profitable depends on our ability to source and maintain a stable and sufficient supply of raw materials. We source raw materials for our recycling process for manufacturing nonferrous metal products of (i) lead and lead alloy ingots; (ii) copper and copper ingots; and (iii) aluminium alloy ingots. Set forth below is the cost of raw materials consumed as a percentage of our revenue for last three Fiscals.
(in Rs million, except percentage data)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Cost of Lead sourced from suppliers (Z million) | 23,996.31 | 18,728.11 | 9,181.51 |
| Percentage of cost of raw materials consumed (%) | 37.25% | 46.31% | 33.15% |
| Percentage of revenue from operations (%) | 33.68% | 42.29% | 29.97% |
| Cost of Copper sourced from suppliers (Z million) | 32,653.38 | 18,484.43 | 17,309.82 |
| Percentage of cost of raw materials consumed (%) | 50.69% | 45.71% | 62.50% |
| Percentage of revenue from operations (%) | 45.82% | 41.74% | 56.49% |
| Cost of Aluminium sourced from suppliers (Z million) | 2,287.86 | 2,445.13 | 677.77 |
| Percentage of cost of raw materials consumed (%) | 3.55% | 6.05% | 2.45% |
| Percentage of revenue from operations (%) | 3.21% | 5.52% | 2.21% |
| Cost of Precious Metals sourced from suppliers (Z million) | 6,930.72 | - |
- |
| Percentage of cost of raw materials consumed (%) | 10.76% | - | - |
| Percentage of revenue from operations (%) | 9.73% | - | - |
We maintain cordial relationships with our suppliers as we depend on them for materials and components required and typically purchase materials and components on a purchase order basis. Furthermore, in order to ensure standards of quality, adherence to delivery schedules, and fulfilment of contractual obligations, we follow a thorough vendor evaluation, selection, and quality control process while choosing our suppliers. Our vendor selection process involves five-steps commencing from our Company personnels visiting scrap yards, inspecting the raw material scrap, sharing details of the prospective vendor with the existing vendors of the Company for background and reliability check, conducting an in-house check on the raw material and on boarding the vendor basis results of the internal quality check and mutual agreement on pricing terms. We import major of our raw materials such as lead scrap, copper scrap, aluminium scrap and precious metals from the United States of America, Malysia, Kuwait, United Kingdom, UAE, Brazil, Colombia contributing to 52.27% in Fiscal 2025. The table below sets forth details of raw materials imported, which is also expressed as a percentage of total purchase of raw materials in the periods/ years indicated:
(in Rs million, except percentage data)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Raw Material Procurement (Domestic) (Z million) | 15,471.49 | 7,975.82 | 7,171.06 |
| Percentage of total purchase of raw materials (%) | 23.10% | 19.48 | 25.77 |
| Raw Material Procurement (International) (Z million) | 51,505.63 | 32,957.75 | 20,652.24 |
| Percentage of total purchase of raw materials (%) | 76.90% | 80.52 | 74.23 |
| Total | 66,977.11 | 40,933.56 | 27,823.30 |
Note: the above figures are from consolidated purchase register before hedging and directly attributable adjustments.
Any restrictions, either from the Central or state governments of India, or from countries which we import from or on account of any other geopolitical events, on such imports may adversely affect our business, prospects, financial condition and results of operations. Also, see "Risk Factors - Political, economic or other factors that are beyond our control may have an adverse effect on our business and results of operations" on page 78.
Any shutdown, slow-down or under-utilization of our manufacturing facility.
Our operations are subject to operating risks, including but not limited to, forced or voluntary closure of our Facilities, including as a result of regulatory actions, problems with supply chain continuity, including as a result
of natural or man-made disasters at our manufacturing facility, manufacturing shutdowns, breakdown or failure of equipment, equipment performance below expected levels of efficiency, obsolescence of our equipment and production facility, industrial accidents and the need to comply with the directives of relevant government authorities, disruption in electrical power or water resources, fire and industrial accidents, which may entail significant repair and maintenance costs, labour disputes, strikes, lock-outs that may result in temporary shutdowns or manufacturing disruptions, any changes in the availability of power or water availability which impacts the entire region. We may be required to shut down our manufacturing facility, from time to time, for capacity expansions, enhancements and equipment upgrades. Further, any unscheduled, unplanned or prolonged disruption of our manufacturing operations could reduce our ability to meet the conditions of our contracts and adversely affect sales and revenues from operations in such period. Our expansion plans including the setting up of new manufacturing facilities are subject to similar operating risks which may result in shutdowns, underutilization and unscheduled/unplanned disruptions which in turn could affect our revenue from operations in the future. Further, our ability to maintain our profitability depends on our ability to maintain sufficient levels of capacity utilization.
Capacity utilization is affected by our product mix, our ability to carry out uninterrupted operations, labor shortages or unrest, industry/ market conditions as well as overhead costs and manufacturing costs. In the event that there is a decline in the demand for our products, or if we face prolonged disruptions at our existing operational or proposed Facilities including due to interruptions in the supply of electricity or as a result of labor unrest, or are unable to procure raw materials, we would not be able to achieve and maintain optimum levels of capacity utilization at our Facilities, resulting in operational inefficiencies which could have a material adverse effect on our financial condition and results of operations.
Changes in price and availability of raw materials
Our operations and ability to procure raw materials at competitive prices is affected by global commodity prices, inflation and our ability to negotiate with our suppliers effectively. For example, pricing and availability of commodities like lead scrap, copper scrap and lead scrap can be volatile due to numerous factors, including but not limited to general domestic and international economic conditions, geopolitical tensions, extreme weather shocks, import duties and tariffs and foreign currency exchange rates (Source: CRISIL). Fluctuations in the cost of raw materials, supply interruptions or raw material shortages has a direct impact on our ability to manufacture products on time and within budget (Source: CRISIL) Price increases or decreases in these metals can significantly affect our profitability. For the purposes of safeguarding our financial position against this price volatility, we utilize hedging strategies exclusively within the metals market by entering futures derivative contracts on the LME. We may not be able to pass through all cost increases which could adversely affect our results of operations. Conversely, a reduction in product prices within the industry could lead to decreased revenue and margins for us if there is no corresponding reduction in raw material costs.
Foreign exchange fluctuations
Our consolidated financial statements are prepared in Indian rupees. However, a portion of our sales is denominated in currencies other than Indian rupees, particularly the U.S. dollar, and our purchases of raw materials from overseas suppliers are denominated primarily in U.S. dollars. Accordingly, our consolidated financial statements may be affected by exchange rate fluctuations. To the extent that we incur costs in one currency and derive sales in another currency, our results of operations may be affected by the relative strengths of the two currencies. Although the impact of exchange rate fluctuations has in the past been partially mitigated by our hedging strategies, including forward exchange contracts, we have foreign currency exposures that have not been hedged by a derivative instrument or otherwise. For more details, see "Risk Factor- We are exposed to risks associated with foreign exchange rate fluctuations" on page 48. Our results of operations have historically been affected by exchange rate fluctuations, and there can be no assurance that such strategies will be effective in eliminating or reducing the adverse impact of future fluctuations.
NON-GAAP FINANCIAL MEASURES
We use certain supplemental non-generally accepted accounting principles measures ("Non-GAAP Measures") to review and analyze our financial and operating performance from period to period, and to evaluate our business, and for forecasting purposes. Although these Non-GAAP Measures are not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that they are useful to an investor in evaluating us because they are widely used measures to evaluate a companys operating and financial performance. Further, our management believes that when taken collectively with financial measures
prepared in accordance with Ind AS, these Non-GAAP Measures may be helpful to investors because they provide an additional tool for investors to use in evaluating our ongoing results and trends. Presentation of these Non- GAAP Measures should not be considered in isolation from, or as a substitute for, analysis of our historical financial performance, as reported and presented in our Restated Financial Information set out in this Red Herring Prospectus.
These Non-GAAP Measures are not defined under Ind AS, are not presented in accordance with Ind AS and have limitations as analytical tools which indicate, among other things, that they do not reflect our cash expenditures or future requirements for capital expenditure or contractual commitments; changes in, or cash requirements for, our working capital needs; and the finance cost, or cash requirements. Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and these measures do not reflect any cash requirements for such replacements. These Non-GAAP Measures may differ from similar titled information used by other companies, including peer companies, who may calculate such information differently and hence their comparability with those used by us may be limited. Therefore, these Non- GAAP Measures should not be viewed as substitutes for performance or profitability measures under Ind AS or as indicators of our operating performance, cash flows, liquidity or profitability. For further details, see "Risk Factor - This Red Herring Prospectus includes certain Non-GAAP Measures, financial and operational performance indicators and other industry measures related to our operations and financial performance. The Non-GAAP Measures and industry measures may vary from any standard methodology that is applicable across the Indian metal recycling industry and, therefore, may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies. " on page 76.
EBITDA, EBITDA Margin and PA T, PA T Margin
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) = Profit Before Tax (PBT) + Finance Costs + Depreciation & Amortization - Other Income. "EBITDA Margin" is a profitability ratio we use to calculate the percentage of profit we generate from our revenue from operations; it is defined as EBITDA Margin (%) = (EBITDA / Revenue from operations) * 100. "PAT Margin" is a measure of how much profit after tax is generated as a percentage of revenue from operations and is calculated as PAT / Revenue from Operations) * 100 . The table below gives our PAT, EBITDA, for the periods indicated, and sets out our EBITDA Margin and PAT Margin, for the periods indicated.
(in Rs million, except percentage data)
| Particulars | For Fiscal | ||
| 2025 | 2024 | 2023 | |
| EBITDA | 3,685.82 | 2,272.18 | 1,241.76 |
| EBITDA Margin (%) | 5.17% | 5.13% | 4.05% |
| PAT | 2,232.87 | 1,638.27 | 918.10 |
| PAT margin (%) | 3.13% | 3.70% | 3.00% |
Return on Capital Employed
Return on capital employed ("RoCE") is calculated as (Earnings Before Interest and Taxes (EBIT) / Average Capital Employed (here Capital Employed = Net worth + Total Debt + Deferred Tax Liability)) * 100. The table below sets out the ROCE for the periods indicated.
| Particulars | As of Fiscal | ||
| 2025 | 2024 | 2023 | |
| RoCE (%) | 24.22% | 19.13% | 12.31% |
Return on Equity
Return on equity ("RoE") is calculated as (PAT / Average Equity (here Equity = Equity Share Capital + Other Equity - OCI re-classifiable to P&L)) * 100. The table below sets out the RoE for the periods indicated.
| Particulars | As of Fiscal | ||
| 2025 | 2024 | 2023 | |
| RoE (%) | 40.77% | 57.66% | 59.94% |
Net Debt to Equity Ratio
We monitor our capital and financial leverage levels using the debt-to-equity ratio. We calculate Net debt to equity ratio by dividing Net debt (i.e., borrowings (current and non-current)- Cash and bank balances) by (Equity Share Capital + Other Equity - OCI re-classifiable to P&L). The table below sets out the calculation of our debt-to- equity ratio, as of the dates indicated below.
(in Rs million, unless otherwise specified)
| Particulars | As of Fiscal | ||
| 2025 | 2024 | 2023 | |
| Net Debt (A) | 6,716.20 | 6,091.79 | 5,870.42 |
| Equity (B) | 7,261.67 | 3,691.60 | 1,990.88 |
| Net Debt to Equity Ratio (A)/(B) | 0.92 | 1.65 | 2.95 |
Debtor Days
"Debtor Days" quantifies our effectiveness in collecting our receivables or money owed by customers and is calculated as Average Trade Receivables / (Revenue from Operations / 365). The table below sets out our debtor days, for the periods indicated below.
| Particulars | For Fiscal | ||
| 2025 | 2024 | 2023 | |
| Debtor Days | 8.01 | 18.03 | 27.67 |
Creditor Days
"Creditor Days" quantifies our effectiveness in paying our payables or money owed to vendors and is calculated as Average Trade Payables / (COGS / 365). The table below sets out our creditor days, for the periods indicated.
| Particulars | For Fiscal | ||
| 2025 | 2024 | 2023 | |
| Creditor Days | 3.59 | 2.68 | 4.52 |
Inventory Days
"Inventory Days" is the number of days a business is holding its inventory before selling it and is calculated as Average Inventory / (Cost of Goods Sold (here COGS = Cost of materials consumed + Purchases of Stock -intrade + Changes in Inventories of finished goods, work-in-progress and stock in trade + Direct Manufacturing Costs) / 365). The table below sets out our inventory days, for the periods indicated below.
| Particulars | For Fiscal | ||
| 2025 | 2024 | 2023 | |
| Inventory Days | 33.72 | 39.69 | 43.59 |
Net Working Capital Days
Net working capital Days describes the number of days it takes for us to convert our working capital into revenue and is calculated as Inventory Days + Debtor Days - Creditor Days. The table below sets out details of our working capital days, as of the periods indicated below.
| Particulars | For Fiscal | ||
| 2025 | 2024 | 2023 | |
| Net Working Capital Days | 38.14 | 55.04 | 66.74 |
PRESENTATION OF FINANCIAL INFORMATION
The restated financial information of our Company comprise the restated statement of assets and liabilities as of March 31,2025 March 31, 2024, and March 31, 2023 the restated statement of profit and loss (including Other Comprehensive Income), the restated statement of changes in equity, the restated statement of cash flows for the financial years ended, March 31, 2025, March 31, 2024, and March 31, 2023, and the statement of material accounting policies, and other explanatory information (collectively, the "Restated Financial Information").
The Restated Financial Information have been compiled from the audited Ind AS financial statements of the Company for the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023 and the audited Ind AS financial statements of the Company as of and for the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023 each prepared in accordance with Ind AS as prescribed under section 133 of the Companies Act read with the Companies (Indian Accounting Standards) Rules 2015, as amended, and other accounting principles generally accepted in India
SUMMARY OF MATERIAL ACCOUNTING POLICIES
I Current versus non-current classification:
All assets and liabilities have been classified as current and non-current based on the Groups normal operating cycle and the other criteria set out in Schedule III to the Companies Act, 2013.
Assets
An asset is classified as current when it satisfies any of the following criteria:
a) It is expected to be realised in, or is intended for sale or consumption in, the Groups normal operating cycle;
b) It is held primarily for the purpose of being traded;
c) It is expected to be realised within 12 months after the reporting date; or
d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets. All other assets are classified as noncurrent.
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
a) It is expected to be settled in the Groups normal operating cycle;
b) It is held primarily for the purpose of being traded;
c) It is due to be settled within 12 months after the reporting date; or
d) The Group does not have an unconditional right to defer settlement of the liability for at least 12 months
after the reporting date. Terms of liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
Current liabilities include the current portion of non-current financial liabilities. All other liabilities are classified as non-current.
Operating Cycle.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The Group has identified 12 months as its operating cycle.
II. Use of Estimates
The preparation of consolidated financial statements in conformity with Indian Accounting Standards (Ind-AS) requires that the management of the Group make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of the financial statements, as well as the results of operations during the reporting period. Although these estimates are based on managements best knowledge of current events and actions, actual results could differ from these estimates and are recognized in the period in which the results are known or materialized.
III. Property, Plant and Equipment
Under the previous GAAP (Indian GAAP), all assets were carried at cost, less accumulated depreciation and accumulated impairment losses, if any. On transition to Ind-AS, the Group has elected to continue with the carrying value for all of its property and equipment recognized as of April 01, 2023 (date of transition to Ind-AS) measured as per the previous GAAP and use that carrying value as its deemed cost as at the date of transition.
Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment in value, if any. Cost includes the purchase price (inclusive of import duties and non-refundable purchase taxes, after deducting trade discounts and rebates), other costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, and an initial estimate of the costs of dismantling, removing the item, and restoring the site on which it is located, if any.
If the Group has acquired Property, Plant and Equipment on a deferred term basis and the terms are beyond normal credit terms, the property, plant, and equipment will be recognized at the cash price equivalent, i.e., the discounted amount.
The cost of assets not ready for use as at the balance sheet date is disclosed under Capital Work-In-Progress.
The cost of replacement spares or major inspections relating to property, plant, and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Group, and the cost of the item can be measured reliably. When parts of an item of property, plant, and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant, and equipment.
Depreciation
Depreciation on Property, Plant, and Equipment (PPE) is provided on the Written Down Value (WDV) Method over the useful life of the asset as specified in Schedule II to the Companies Act, 2013. In determining the depreciable value of the assets, the Group has retained the residual value at 5% of the capitalized value of the assets. The useful life of the assets is as tabulated below:
| Category | Useful life |
| Buildings | 30 years |
| Leasehold Improvements - Factory Premises | Over the lease term |
| Leasehold Improvements - Rental Premises | Over the lease term |
| Plant and machinery | 15 years |
| Computers | 3 years |
| Electrical equipment | 10 years |
| Office equipment | 5 years |
| Furniture and fixtures | 10 years |
| Vehicles | 10 years |
The depreciation charge on additions and deletions is restricted to the period of use. Depreciation methods, useful lives, and residual values are reviewed annually by the Group.
IV. Intangible Assets
Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized on a straight line basis over their estimated useful life as given below.
| Category | Useful life |
| Software | 3 years |
Amortization method and useful lives are reviewed annually by the group.
V Leases
As lessee
The Group assesses whether a contract contains a lease at the inception of the contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group evaluates whether: (1) the contract involves the use of an identified asset, (2) the Group has substantially all of the economic benefits from the use of the asset during the lease term, and (3) the Group has the right to direct the use of the asset.
The Group recognizes a right-of-use asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and leases for low-value underlying assets. For these short-term leases and leases for low-value underlying assets, the Group recognizes the lease payments as an operating expense on a straight-line basis over the lease term.
Certain lease arrangements include options to extend or terminate the lease before the lease term ends. Right-of- use assets and lease liabilities include these options when it is reasonably certain that the option to extend the lease will be exercised or the option to terminate the lease will not be exercised.
The right-of-use assets are initially recognized at cost, which includes the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date of the lease, plus any initial direct costs, less any lease incentives. They are subsequently measured at cost less accumulated depreciation/amortization and impairment losses.
Right-of-use assets are depreciated/amortized from the commencement date to the end of the useful life of the underlying asset if the lease transfers ownership of the underlying asset by the end of the lease term, or if the cost of right-of-use assets reflects that the purchase option will be exercised. Otherwise, right-of-use assets are depreciated/amortized from the commencement date on a straight-line basis over the shorter of the lease term and the useful life of the underlying asset.
Right-of-use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For impairment testing purposes, 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.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rate. Lease liabilities are re-measured with a corresponding adjustment to the related right- of-use asset if the Group changes its assessment of whether it will exercise an extension or termination option.
VI. Impairment
Assessment is done annually as to whether there is any indication that an asset (tangible and intangible) may be impaired. For the purpose of assessing impairment, the smallest identifiable Group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or Groups of assets, is considered as a cash-generating unit. If any such indication exists, an estimate of the recoverable amount of the asset/cash-generating unit is made. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount. Recoverable amount is the higher of an assets or cash-generating units fair value less cost to sell and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased. In such cases, impairment losses are reversed to the extent the assets carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had previously been recognized.
VII. Borrowing Cost
Borrowing costs that are directly related to acquiring, constructing, or producing a qualifying asset are capitalized during the time required to complete and make the asset ready for its intended use. These costs include interest calculated using the effective interest method, incurred by the Group in relation to borrowed funds. Additionally, borrowing costs encompass exchange differences, but only to the extent that they are considered an adjustment to borrowing costs.
VIII Inventories
• Inventories include raw material, consumable stores, work-in-progress, finished goods, and stock in trade.
• Inventories are valued at cost or net realizable value, whichever is lower. The cost is determined using the First-In-First Out method.
• The cost of finished goods and work-in-progress comprises raw material, direct labour and other direct and attributable costs, other direct costs, and related production overheads.
• Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.
IX. Foreign Currency Transaction
A. Functional and presentation currency
These consolidated financial statements are presented in Indian Rupees (INR), which is also the Groups functional currency. All amounts have been rounded to the nearest million, unless otherwise indicated.
B. Transactions and closing balances
i. Foreign currency transactions are initially recorded in the Groups functional currency using the spot exchange rate prevailing on the transaction date.
ii. Monetary assets and liabilities denominated in foreign currencies are retranslated at the spot exchange rate on the reporting date. Any exchange gains or losses arising from the settlement or retranslation of these monetary items are recognized in the profit and loss statement.
iii. Non-monetary items carried at historical cost in a foreign currency are translated based on the exchange rate applicable on the date of the original transaction.
X. Revenue Recognition:
The Group determines the recognition of revenue by applying a structured five-step model, ensuring compliance with applicable accounting standards.
i. Identify the contract with a customer - The Group assesses whether an agreement exists that creates enforceable rights and obligations.
ii. Identify the performance obligations - The Group determines the distinct goods or services promised in the contract.
iii. Determine the transaction price - The Group establishes the amount of consideration it expects to be entitled to in exchange for fulfilling its performance obligations.
iv. Allocate the transaction price to performance obligations - The Group distributes the transaction price among the identified performance obligations based on their standalone selling prices.
v. Recognize revenue when (or as) performance obligations are satisfied - The Group recognizes revenue when control of the goods or services transfers to the customer, either at a point in time or over time, as applicable."
Revenue from Sale of Goods, Scrap, and Service Income:
Sales, including those from scrap, are recognized when the buyer obtains control of the products as per the contractual terms, with revenue recorded net of returns and rebates. Control implies the authority to use the goods and derive the majority of their economic benefits. Typically, control is considered transferred when the goods are either dispatched to the customer or made available for their collection, provided that ownership rights have been passed to the buyer and the Group no longer retains significant risks or obligations related to the delivered goods.
The Group recognizes revenue from service contracts in its Statement of Profit and Loss once the corresponding performance obligations have been fulfilled. Revenue is recorded when control over the contracted goods or services is transferred to customers, reflecting the expected consideration in exchange for those goods or services.
In determining the transaction price, the Group evaluates the contract terms and its established business practices. The transaction price represents the amount the Group anticipates receiving in exchange for delivering goods or services, excluding any amounts collected on behalf of third parties, such as indirect taxes. Consideration in a contract may be fixed, variable (subject to minimal risk of reversal), or a combination of both. As most sales occur on an advance payment basis or with short credit terms not exceeding one year, the Group does not account for any financing element in its revenue recognition. Revenue figures presented exclude applicable goods and services tax.
The Group allocates the transaction price to each distinct performance obligation in a way that appropriately reflects the expected consideration. Upon entering into a contract, an assessment is made to determine whether each performance obligation is satisfied over time or at a specific point in time
Advance payments received for performance obligations yet to be fulfilled are recorded as contract liabilities and classified under other liabilities in the financial statements. Conversely, when the Group completes a performance obligation before receiving payment, a contract asset or receivable is recognized, depending on whether further performance is required before the payment becomes due.
A contract asset signifies the Groups right to receive consideration for goods or services already delivered, provided that the receipt of payment depends on additional performance. A contract liability, on the other hand, arises when the Group receives advance payments for goods or services that are yet to be delivered. These liabilities are recognized as revenue when the Group meets its contractual obligations.
The Group does not anticipate having contracts where the duration between the transfer of goods or services and the receipt of payment from customers exceeds one year. Consequently, the transaction price is not adjusted for the time value of money.
Other Income
Interest: Interest income is recognized on effective interest method taking into account the amount outstanding and the rate applicable.
Dividend: Dividend income is recognized when the right to receive dividend is established.
Insurance Claims: Insurance claims are accounted for on the basis of claims lodged with insurance Company and to the extent that there is a reasonable certainty in realizing the claims.
Export Incentive: Income from export incentives, such as duty drawback and the Remission of Duties and Taxes on Export Products (RoDTEP), is recognized on an accrual basis when there are no significant uncertainties regarding the amount of consideration to be derived and its ultimate collection
XI Employee Benefits
1. Short - Term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognized in the period in which the employee renders the related service.
2. Defined Contribution Plans
Contribution towards provident fund/Employee State Insurance for employees working with the Groups operations in India is made to the regulatory authorities, where the Group has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Group does not carry any further obligations, apart from the contributions made on a monthly basis.
3. Defined Benefit Plan
The Group provides for gratuity, a defined benefit plan (the "Gratuity Plan") which is unfunded covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation, or termination of employment, of an amount based on the respective employees salary and the tenure of employment. The Groups liability is actuarially determined (using the Projected Unit Credit method) at the balance sheet date. Actuarial losses/gains are recognized in other comprehensive income in the year in which they arise. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss.
4. Other Long term employee benefits
Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year, are treated as short-term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences, as the additional amount expected to be paid as a result of the unused entitlement as at the balance sheet date. Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year, are treated as other long-term employee benefits. The Groups liability is actuarially determined (using the Projected Unit Credit method) at the balance sheet date. Actuarial losses/gains are recognized in the Profit and Loss Statement in the year in which they arise.
XII Taxes on Income
Tax expenses for the period, comprising current tax and deferred tax, is included in the determination of the net profit or loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the relevant prevailing tax laws. Tax expenses relating to the items in profit and loss are treated as current tax as part of profit and loss, while those relating to items in other comprehensive income (OCI) are recognized as part of OCI.
Deferred tax is recognized for all temporary differences between the carrying amounts of assets and liabilities in the Restated Financial Information and their corresponding tax bases used in the computation of taxable profit. Deferred tax assets are recognized and carried forward only to the extent that it is probable that taxable profit will be available against which those deductible temporary differences can be utilized. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. At each Balance Sheet date, the Group re- assesses unrecognized deferred tax assets, if any, and recognizes them to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax, and when the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation law.
XIII. Financial Instruments
Financial Assets
Initial Recognition and Measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial assets contractual cash flow characteristics and the Groups business model for managing them. With the exception of Trade and other Receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI) on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model.
The Groups business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortised cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognised on the trade date, i.e., the date that the Group commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
i. Financial assets at amortised cost (debt instruments)
ii. Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains and losses (debt instruments)
iii. Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)
iv. Financial assets at fair value through profit or loss Financial assets at amortised cost (debt instruments)
A ‘financial asset is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
This category is the most relevant to the Group. 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 in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. The Groups financial assets at amortised cost includes Trade and other Receivables.
Financial assets at fair value through OCI (FVTOCI) (debt instruments)
A ‘financial asset is classified as at the FVTOCI if both of the following criteria are met:
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the
financial assets, and
b) The assets contractual cash flows represent SPPI.
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. For debt instruments, at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value changes recognised in OCI is reclassified from the equity to profit or loss.
The Groups debt instruments at fair value through OCI includes investments in quoted debt instruments included under other non-current financial assets. Financial assets designated at fair value through OCI (equity instruments).
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under Ind AS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-byinstrument basis. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 applies are classified as at FVTPL.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit and loss when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.
The Group elected to classify irrevocably its non-listed equity investments under this category.
Financial assets at fair value through profit or loss
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assets at fair value through profit or loss are carried in the Restated Summary Statement of Assets and Liabilities at fair value with net changes in fair value recognised in the restated summary statement of profit and loss.
This category includes derivative instruments and listed equity investments which the Group had not irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are recognised in the restated summary statement of profit and loss when the right of payment has been established.
Compoundfinancial instruments
The liability component of a compound financial instrument is initially recognised at the fair value of a similar liability that does not have an equity conversion option. The equity component is initially recognised at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts.
Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortised cost using the effective interest method. The equity component of a compound financial instrument is not measured subsequently.
Interest related to the financial liability is recognised in profit or loss (unless it qualifies for inclusion in cost of asset). In case of conversion at maturity, the financial liability is reclassified to equity and no gain or loss is recognised.
Embedded Derivatives
A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host and accounted for as a separate derivative if: the economic characteristics and risks are not closely related to the host; a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and the hybrid contract is not measured at fair value through profit or loss.
Embedded derivatives are measured at fair value with changes in fair value recognised in profit or loss. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair value through profit or loss category.
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 Groups consolidated balance sheet) when:
i. The rights to receive cash flows from the asset have expired, or
ii. 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 the risks and rewards of the asset nor transferred control of the asset, the Group continues to recognise the transferred asset to the extent of the Groups continuing involvement. In that case, the Group also recognises 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 Group could be required to repay.
Impairment of Financial Assets
The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in two stages:
For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 months (a 12-month ECL).
For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
For Trade and other Receivables and other financial assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.
Financial Liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Groups financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts, and derivative financial instruments.
Subsequent measurement
For purposes of subsequent measurement, financial liabilities are classified in two categories:
• Financial liabilities at fair value through profit or loss
• Financial liabilities at amortised cost (loans and borrowings)
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. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
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/ losses 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 restated summary statement of profit and loss. The Group has not designated any financial liability as at fair value through profit or loss.
Financial liabilities at amortised cost (Loans and borrowings)
This is the category most relevant to the Group. 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 restated summary statement of profit and loss.
This category generally applies to borrowings.
Financial guarantee contract
Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument.
Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee.
Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 115.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognised in the restated summary statement of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the Restated Summary Statement of Assets and Liabilities if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Derivative Financial Instruments and Hedge Accounting
Initial recognition and subsequent measurement
In order to hedge its exposure to commodity price risks, the Group enters into futures and option contracts. The Group does not hold derivative financial instruments for speculative purposes. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to the statement of profit and loss. Hedges that meet the strict criteria for hedge accounting are accounted for, as described below:
i) Fair value hedges
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the statement of profit and loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in the statement of profit and loss.
Hedge accounting is discontinued when the Group revokes the hedge relationship, the hedging instrument or hedged item expires or is sold, terminated, or exercised or no longer meets the criteria for hedge accounting.
XIV. Fair Value
Fair value represents the price at which an asset could be sold or a liability could be settled in an orderly transaction between market participants as of the measurement date. The determination of fair value assumes that the transaction occurs either:
In the principal market where the asset or liability is most actively traded, or
If a principal market is unavailable, in the most advantageous market that provides the best possible price for the asset or liability. The Group must have access to the principal or most advantageous market for fair value measurement.
Fair value is estimated based on the assumptions that market participants would apply when pricing the asset or liability, considering their economic best interest. For non-financial assets, fair value measurement reflects the
assets highest and best use, meaning the way it would generate the maximum economic benefit—either through its use or by selling it to another market participant who would optimize its utility.
The Group applies valuation techniques that are appropriate for the circumstances and supported by sufficient data, prioritizing observable inputs while minimizing reliance on unobservable inputs. All assets and liabilities measured or disclosed at fair value in the financial statements are classified into a three-tier hierarchy based on the lowest level of input significant to the measurement:
Level 1 - Market prices quoted in active markets for identical assets or liabilities, without adjustments.
Level 2 - Valuation models relying on observable market data, either directly or indirectly.
Level 3 - Valuation methods based on unobservable inputs, where market data is not readily available.
For assets and liabilities subject to recurring fair value measurement, the Group assesses any movement between hierarchy levels at each reporting date based on the lowest level of significant input used in the valuation.
For fair value disclosures, the Group categorizes assets and liabilities based on their nature, characteristics, and associated risks, aligning them with the fair value hierarchy outlined above.
XV Government Grants
Income comprises export incentives and other recurring and non-recurring benefits received from the government, collectively referred to as "incentives." Government grants represent financial assistance provided by the government in the form of resource transfers to an entity, based on past or future compliance with specific conditions related to its operating activities. The Group qualifies for government subsidies for manufacturing units situated in designated regions.
Government grants are recognized when there is reasonable assurance that the Group will meet the specified conditions and receive the grant. These grants are recorded in the Statement of Profit and Loss either systematically, in line with the recognition of related expenses they are intended to offset, or immediately if the corresponding costs have already been incurred.
Grants related to assets are deferred and amortized over the assets useful life. Grants linked to income are shown as a reduction against the associated expenditure, while grants provided as incentives without any ongoing performance obligations are recognized as income in the period they are received.
XVI. Provisions and Contingent Liabilities
Provisions: Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to their present value unless the effect of the time value of money is material. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events 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 or a reliable estimate of the amount cannot be made. When there is a possible obligation or a present obligation in respect of which the likelihood of an outflow of resources embodying economic benefits is remote, no provision or disclosure is made.
XVII Segment Reporting
In accordance with Ind AS 108, the identification of operating segments for reporting purposes is based on the internal reports reviewed by the Groups management to allocate resources and assess performance. The Board of Directors, collectively functioning as the Groups Chief Operating Decision Maker (CODM) under Ind AS 108, evaluates segment performance using key financial and operational metrics. These metrics may evolve over time to align with changes in the Groups performance assessment framework.
The Group allocates common costs to each segment based on their respective contributions to the total common costs. Revenue, expenses, assets, and liabilities that relate to the Group as a whole and cannot be reasonably attributed to specific segments are classified under unallocated revenue, expenses, assets, and liabilities. The Groups segment information is prepared in line with the accounting policies adopted for the preparation and presentation of its consolidated financial statements.
XVIII. Earnings Per Share Basic Earnings Per Share
Basic earnings per share is calculated by dividing the profit (or loss) attributable to the owners of the Group by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for bonus issue, bonus element in a rights issue to existing shareholders, share split, and reverse share split (consolidation of shares).
Diluted Earnings Per Share
Diluted earnings per share is computed by dividing the profit (considered in determination of basic earnings per share) after considering the effect of interest and other financing costs or income (net of attributable taxes) associated with dilutive potential equity shares by the weighted average number of equity shares considered for deriving basic earnings per share, adjusted for the weighted average number of equity shares that would have been issued upon conversion of all dilutive potential equity shares.
XIX. Cash & Cash Equivalents
Cash and cash equivalents comprises cash on hand and at banks and short-term deposits with an original maturity 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.
XX. Investment in Associate :
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 over those policies. The Groups investments in its associate are accounted for using the equity method. Under the equity method, the investment in an associate is initially recognised at cost. 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. Thus, reversals of impairments may effectively include reversal of goodwill impairments. Impairments and reversals are presented within ‘Share of profit of an associate in the statement of profit or loss. The restated statement of profit and loss reflects the Groups share of the results of operations of the associate. Any change in OCI of those investees is presented as part of the Groups OCI. In addition. In addition, when there has been a change recognised directly in the equity of the associate, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate. If an entity s share of losses of an associate equals or exceeds its interest in the associate (which includes any long-term interest that, in substance, form part of the Groups net investment in the associate), the entity discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports profits, the entity resumes recognising its share of those profits only after its share of the profits equals the share of losses not recognised. The aggregate of the Groups share of profit or loss of an associate is shown on the face of the statement of profit and loss outside operating profit. The financial statements of the associate or are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its associate. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value, and then recognises the loss as ‘Share of profit of an associate in the restated summary statement of profit and loss. Upon loss of significant influence over the associate, the Group measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retained investment and proceeds from
disposal is recognised in profit or loss.
Critical accounting judgements, assumptions and key sources of estimation uncertainty
The following are the critical judgements, assumptions concerning the future, and key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year for the Group.
i. Useful lives of property, plant and equipment
As described above, the charge in respect of periodic depreciation for the year is derived after determining an estimate of an assets expected useful life and the expected residual value at the end of its life. The useful lives and residual values of the Groups assets are determined by the management at the time the asset is acquired and reviewed annually. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements in production or from a change in market demand of the product or service output of the asset.
ii. Evaluation of indicators for impairment of assets:
The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors, such as significant changes in market conditions, economic environments, technological advancements, asset utilization, physical damage, or adverse legal/regulatory changes, which could result in deterioration of the recoverable amount of the assets of the Group.
iii. Allowance for expected credit loss:
The allowance for expected credit loss represents the groups estimate of potential losses within its credit portfolio. This estimate is based on the groups historical experience with similar receivables, current and past due balances, dealer termination rates, write-offs, collections, ongoing monitoring of portfolio credit quality, and both current and anticipated economic and market conditions. If the current economic and financial conditions persist or worsen, there could be an additional decline in the financial condition of the groups debtors, which might not have been fully accounted for when determining the allowances recorded in the financial statements.
iv. Employee Benefits
The cost of defined benefit plans are determined using actuarial valuation, which involves making assumptions about discount rates, expected rates of return on assets, future salary increases, and mortality rates. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty.
v. Taxation
Significant assumptions and judgements are involved in determining the provision for tax based on tax enactments, relevant judicial pronouncements and tax expert opinions, including an estimation of the likely outcome of any open tax assessments / litigations. Deferred income tax assets are recognized to the extent that it is probable that future taxable income will be available, based on estimates thereof. Significant assumptions are also involved in evaluating the recoverability of deferred tax assets recognised on unused tax losses of the Group.
vi. Contingent liabilities:
The company is involved in legal disputes and tax matters across multiple jurisdictions, with various cases currently pending. Due to the inherent uncertainty of such issues, it is challenging to forecast their ultimate resolution. These legal cases and claims present complex factual and legal challenges, influenced by numerous variables such as the specific details of each case, the jurisdiction, and the differences in relevant laws. In the regular course of operations, the company seeks advice from legal professionals and other experts regarding litigation and tax-related issues. A liability is recorded by the company when it is deemed likely that an unfavourable outcome will occur, and the potential loss can be reasonably estimated.
vii. Provisions:
At each balance sheet date, based on managements judgment and any changes in facts or legal circumstances, the Group evaluates the need for provisions related to outstanding contingent liabilities. However, the actual outcome in the future may differ from this assessment.
CHANGES IN ACCOUNTING POLICIES
There have been no changes in our accounting policies during Fiscal 2025, Fiscal 2024 and Fiscal 2023.
PRINCIPAL COMPONENTS OF STATEMENT OF PROFIT AND LOSS
Income
Our income comprises revenue from operations and other income.
Revenue from operations
The revenue from our operations comprises sales of products, income from work, sales of traded goods and other operating revenues.
Other income
Our other income comprises, interest income contract cancellation income, profit on sale of property, plant and equipment, profit on sale of investments, mark-to -market adjustment on investments, gain on currency fluctuations and translations, gain on foreclosure of lease, write back of provision, gain on extinguishment of compulsorily convertible preference shares, and miscellaneous income.
Expenses
Our expenses primarily comprise cost of materials consumed, purchase of stock- in- trade, changes in inventories of finished goods by products and work-in-progress, employee benefit expense finance costs, depreciation and amortisation expense and other expenses.
Cost of materials consumed
Cost of materials consumed consists of opening and closing inventory of raw materials and purchases and hedging gain/(loss).
Purchases of stock -in-trade
Purchases of stock-in-trade consist of purchase of traded goods such as coal and toor dal.
Changes in inventories of finished goods by products and work-in-progress
Changes in inventories of finished goods, by products and work-in-progress consumed consist of opening and closing inventory of work-in-progress, finished goods and stock in trade.
Employee benefits expenses
Employee benefits expenses includes salary, wages & allowances, remuneration to Key Managerial Personnel, contribution to provident and other funds, gratuity, compensated absences, staff welfare expenses.
Finance costs
Finance costs includes interest expense on leases, interest expense on preference shares (CCPS/OCRPS), interest expense on optionally fully convertible debentures (OFCD), interest expense on other borrowings
Depreciation and amortization expense
Depreciation and amortization expense includes depreciation on property, plant and equipment, amortisation on right-of-use assets, amortisation of intangible assets.
Other expenses
Other expenses includes power and fuel charges, labour charges, freight outwards, equipment hiring charges, repairs & maintenance on plant and machinery, job work charges, rent-machinery, sales promotion, commission paid, clearing charges, loss on currency fluctuations and translations, mark-to -market adjustment on investments, auditors remuneration, membership & subscription charges, loss on sale of property , plant & equipment, office maintenance/ office expenses, professional charges, rent, rates & taxes, expected credit loss for trade and other receivables, corporate social responsibility, travelling & conveyance, vehicle maintenance, insurance, provision for diminution in value of investments, bank charges, miscellaneous expenses.
Tax Expenses
Our tax expenses comprise current tax, tax of earlier years and deferred tax charge/(benefit)
OUR RESULTS OF OPERATIONS
The table below sets forth, for the periods indicated, certain items from our restated statement of profit and loss, in each case also stated as a percentage of our total income.
(in ^ million, except percentage data)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Amount | % of Total Income | Amount | % of Total Income | Amount | % of Total Income | |
| INCOME | ||||||
| Revenue from operations | 71,257.68 | 99.49% | 44,284.18 | 98.74% | 30,640.7 1 | 98.60% |
| Other income | 363.86 | 0.51% | 564.23 | 1.26% | 434.55 | 1.40% |
| Total income (I) | 71,621.54 | 100% | 44,848.41 | 100.00% | 31,075.2 6 | 100.00 % |
| EXPENSES | ||||||
| Cost of materials consumed | 64,421.91 | 89.95% | 40,437.44 | 90.16% | 27,696.9 6 | 89.13% |
| Purchase of stock in trade | 1,110.97 | 1.55% | 1,198.50 | 2.67% | 1,311.0 2 | 4.22% |
| Changes in inventories of finished goods, by products and work-in-progress | (221.47) | (0.31%) | (1,540.96) | (3.44) % | (1,128.7 2) | (3.63) % |
| Employee benefits expense | 306.70 | 0.43% | 324.10 | 0.72% | 144.31 | 0.46% |
| Finance costs | 847.08 | 1.18% | 533.48 | 1.19% | 304.79 | 0.98% |
| Depreciation and amortization expense | 156.69 | 0.22% | 156.92 | 0.35% | 135.30 | 0.44% |
| Other expenses | 1,951.32 | 2.72% | 1,592.91 | 3.55% | 1,375.3 8 | 4.43% |
| Total expenses (II) | 68,573.20 | 95.74% | 42,702.39 | 95.21% | 29,839.0 4 | 96.02% |
| Profit before tax (I-II) | 3,048.34 | 4.26% | 2,146.02 | 4.79% | 1,236.2 2 | 3.98% |
| Share of loss from associate | (2.41) | (0.00%) | - | - | - | - |
| Restated Profit before Tax (V+VI) | 3,045.93 | 4.25% | 2,146.02 | 4.78% | 1,236.2 2 | 3.97% |
| Tax expense | ||||||
| Current tax | (691.42) | (0.97%) | (530.46) | (1.18%) | (350.63) | (1.13%) |
| Income tax for earlier years | (49.56) | (0.07%) | - | - | - | - |
| Deferred tax charge/(benefit) | (72.08) | (0.10%) | 22.71 | 0.05 % | 32.51 | 0.10% |
| Total tax expenses | (813.06) | (1.14%) | (507.75) | (1.13%) | (318.12) | (1.03%) |
| Profit for the year (V - VI) | 2,232.87 | 3.12% | 1,638.27 | 3.65% | 918.10 | 2.95% |
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Amount | % of Total Income | Amount | % of Total Income | Amount | % of Total Income | |
| Other comprehensive income/(loss) | ||||||
| (A) Items that will not be reclassified to profit or loss: | ||||||
| Remeasurement gain/losses) on the defined benefit plan | 9.14 | 0.01% | 2.91 | 0.01% | 0.08 | 0.00% |
| Income tax relating to above item | (2.31) | (0.00%) | (0.74) | 0.00% | (0.02) | 0.00% |
| Gain/(Loss) on translation of foreign subsidiary | 1.02 | 0.00% | - | - | - | - |
| Total | 7.85 | 0.01% | 2.17 | 0.00% | 0.06 | 0.00% |
| Total other comprehensive income for the year (net of tax) | 7.85 | 0.01% | 2.17 | 0.00% | 0.06 | 0.00% |
| Total comprehensive income for the year (net of tax) (VII + VIII) | 2,225.02 | 3.11% | 1,636.10 | 3.65% | 918.04 | 2.95% |
Product-wise revenue from operations
Our product-wise reporting reflects our product-wise break-down of our revenue from sale of products. The table below sets forth, for the periods indicated, a product-wise break-down of our revenue sale of products.
(in million, except percentage data)
| Particulars | Fiscal 2025 | % of total revenue from operations | Fiscal 2024 | % of total revenue fron operations | Fiscal 2023 | % of total revenue from operations |
| Lead & Lead Alloy Ingots | 28,119.15 | 39.46% | 20,762.29 | 46.88% | 10,702.49 | 34.93% |
| Copper & Copper Ingots | 31,938.82 | 44.82% | 19,281.92 | 43.54% | 18,154.19 | 59.25% |
| Aluminium & Aluminium Alloys# | 2,731.98 | 3.83% | 2,718.33 | 6.14% | 353.07 | 1.15% |
| Others | 1,503.85 | 2.11% | 1,521.64 | 3.44% | 1,430.96 | 4.67% |
| Precious Metal | 6,963.88 | 9.77% | - | - | - | - |
| Total | 71,257.68 | 100.00% | 44,284.18 | 100.00% | 30,640.71 | 100.00% |
FISCAL 2025 COMPARED TO FISCAL 2024 Income
Our total income increased by 59.70% from Rs 44,848.41 million in Fiscal 2024 to Rs 71,621.54 million in Fiscal 2025 primarily due to increase in revenue from operations.
Revenue from operations
Our revenue from operations rose by 60.91%, from Rs44,284.18 million in Fiscal 2024 to ^71,257.68 million in Fiscal 2025. The growth was mainly driven by a 65.64% increase in sales of copper and copper ingots and a 35.43% increase in sales of lead and lead alloy ingots due to higher customer demand. Additionally, our Refining Facility, which was operational from August 8, 2024, contributed 9.77% of total revenue, amounting to Rs6,963.88 million, through refining of gold and silver.
Other income
Our other income decreased by 35.51% from Rs564.23 million in Fiscal 2024 to Rs363.86 million in Fiscal 2025 primarily due to the absence of one-time gains recorded in the Fiscal 2024 on account of Rs160.55 million from currency fluctuations and translations and Rs131.10 million from extinguishment of preference shares, along with lower miscellaneous income of Rs6.04 million as compared to Rs21.99 million in Fiscal 2024. This decline was, however, partially offset by higher interest income of Rs78.68 million in Fiscal 2025 as against Rs242.05 million in Fiscal 2024 and profit on sale of investments of Rs21.08 million as compared to Rs2.84 million in Fiscal 2024.
Expenses
Our total expenses rose by 60.58%, increasing from Rs42,702.39 million in Fiscal 2024 to Rs68,573.20 million in Fiscal 2025. This growth was mainly driven by a 59.31% rise in the cost of materials consumed amounting to Rs23,984.47 million, along with higher expenses of ^1,319.49 million from changes in inventories reflecting an 85.63% increase, a 58.78% increase in finance costs amounting to Rs313.60 million, and a 22.50% rise in other expenses amounting to Rs358.42 million. These increases were partly offset by a 7.30% reduction in purchase of stock-in-trade amounting to Rs87.53 million, a 5.37% decline in employee benefit expenses amounting to Rs17.40 million, and a marginal 0.15% decrease in depreciation and amortization expense amounting to Rs0.23 million.
Cost of materials consumed
Our cost of materials consumed increased by 59.31% from Rs 40,437.44 million in Fiscal 2024 to Rs 64,421.91 million in Fiscal 2025 primarily due to (i) higher procurement of raw materials on account of increased scale of operations. and (ii) an increase in customer demand for lead & lead alloy ingots and copper & copper ingots. Further, our raw material cost of material consumed as percentage revenue from operation decreased from 0.91% from 91.31%in Fiscal 2024 to 90.41%in Fiscal 2025, this is primarily due to operating cost leverages.
Purchase of stock in trade
Our purchase of stock in trade decreased by 7.30% from Rs 1,198.50 million in Fiscal 2024 to Rs 1,110.97million in Fiscal 2025 primarily due to lower trading activity during the year.
Change in inventories of finished goods, work in progress and stock in trade.
Changes in inventories of finished goods and work-in-progress and stock in trade has increased by 85.63% from Rs (1,540.96) million in Fiscal 2024 to Rs (221.47) million in Fiscal 2025 primarily due to lower accumulation of inventories due to increase in sales during the year compared to the previous year..
Employee benefits expense
Our employee benefits expense declined by 5.37%, reducing from Rs324.10 million in Fiscal 2024 to Rs306.70 million in Fiscal 2025, primarily because the one-time remuneration of Rs90 million paid to our Promoter, Kamlesh Jain, in Fiscal 2024 was not paid. This decline, however, was partially offset by higher remuneration and related benefits provided to our Key Managerial Personnel ("KMPs") and Senior Management Personnel ("SMPs") in Fiscal 2025
Finance costs
Our finance costs increased by 58.78% from Rs 533.48 million in Fiscal 2024 to Rs 847.08million in Fiscal 2025 primarily due to higher borrowings.
The increase was mainly driven by:
• Working capital borrowings, particularly bill discounting ( Rs 253.28 million vs Rs 12.45 million) and working capital loans ( Rs 1,615.43 million vs Rs 783.82 million), reflecting higher utilization for funding operations.
• Unsecured loans from directors and their relatives, which increased to Rs 475.20 million in Fiscal 2025 as compared to Rs 22.57 million in Fiscal 2024.
• Partially offset by lower usage of overdraft facilities ( Rs 431.28 million vs Rs 1,197.15 million) and pre - shipment finance ( Rs 671.96 million vs Rs 841.06 million).
This reflects a shift in the borrowing mix with greater reliance on bill discounting, working capital loans, and unsecured loans to support the expanded scale of business operations.
Depreciation and amortization expense
Our depreciation and amortization expenses decreased by 0.15% from t 156.92 million in Fiscal 2024 to t 156.69 million in Fiscal 2025 primarily due to no significant additions in fixed assets during the year.
Other expenses
Our other expenses increased by 22.50% from t 1,592.91 million in Fiscal 2024 to t1,951.32 million in Fiscal 2025 primarily due
• Labour charges increased from t 503.01 million in Fiscal 2024 to t 607.68 million in Fiscal 2025 up by t 104.67 million (20.81%), reflecting higher operational requirements.
• Professional charges increased from t 38.29 million in Fiscal 2024 to t 84.93 million in Fiscal 2025 up by t 46.64 million (121.83%), largely due to higher consultancy and compliance-related expenses.
• Bank charges increased from t 28.02 million in Fiscal 2024 to t 61.51 million in Fiscal 2025 up by t 33.49 million (119.51%), in line with higher banking transactions.
• CSR expenditure increased from t 12.86 million in Fiscal 2024 to t 29.85 million in Fiscal 2025 up by t 16.99 million (132.13%), in compliance with statutory requirements.
• Office maintenance expenses increased from t 9.95 million in Fiscal 2024 to t 38.02 million in Fiscal 2025 up by t 28.07 million (282.19%).
This increase was partially offset by a reduction in:
• Freight outwards, which decreased marginally by 3.52% from t 230.31 million in Fiscal 2024 to t 222.21 million in Fiscal 2025 down by t 8.10 million.
• Sales promotion expenses, which decreased by 32.46% from t 26.88 million in Fiscal 2024 to t 18.16 million in Fiscal 2025 down by t 8.72 million. •
• Other Expenses as a percentage of revenue from operations decreased by 0.86% from 3.60% in Fiscal 2024 to 2.74% in Fiscal 2025 indicating economies of scale.
Profit before tax for the year
As a result of the factors discussed above, our profit before tax for the year increased by 42.05% from t 2,146.02 million in Fiscal 2024 to t 3,048.34 million in Fiscal 2025 primarily due to increase in revenue from operations.
Tax expenses
Our tax expenses increased by 60.13% fromt 507.75 million in Fiscal 2024 to t 813.06 million in Fiscal 2025 primarily due to increase in revenue from operations and profit before tax.
Profit after tax for the year
As a result of the factors discussed above, our profit after tax for the year increased by 36.29% from t 1,638.27 million in Fiscal 2024 to t 2,232.87 million in Fiscal 2025.
FISCAL 2024 COMPARED TO FISCAL 2023
Income
Our total income increased by 44.32% from t31,075.26 million in Fiscal 2023 to t44,848.41 million in Fiscal 2024 primarily due to an increase in revenue from operations.
Revenue from operations
Our revenue from operations increased by 44.53% from t 30,640.71 million in Fiscal 2023 to t44,284.18 million in Fiscal 2024 primarily due to an increase in sales of lead & lead alloy ingots from t10,702.49 million in Fiscal 2023 to t 20,762.29 million in Fiscal 2024 as a result of increase in customer demand. The table below sets forth the revenues from sale of manufactured goods and others as a percentage of revenue from operations for respective Fiscals.
(in Rs million, except % data)
| Particular | Fiscal 2024 | Fiscal 2023 | ||
| Amount | % of revenue of operation | Amount | % of revenue of operation | |
| Lead & Lead Alloy Ingots | 20,762.29 | 46.88% | 10,702.49 | 34.93% |
| Copper & Copper Ingots | 19,281.92 | 43.54% | 18,154.19 | 59.25% |
| Aluminium & Aluminium Alloys# | 2,718.33 | 6.14% | 353.07 | 1.15% |
| Others* | 1,521.64 | 3.44% | 1,430.96 | 4.67% |
| Total | 44,284.18 | 100.00% | 30,640.71 | 100.00% |
*It includes sales of traded goods and other operating income # Our aluminium plant commenced its operations from November 18, 2022.
Other income
Our other income increased by 29.84 % from t 434.55 million in Fiscal 2023 to t 564.23 million in Fiscal 2024 primarily due to an increase in interest income from t 179.05 million in Fiscal 2023 to t 242.05 million in Fiscal 2024 and one time gain from extinguishment of CCPS amounting to t131.10 million in Fiscal 2024.
Expenses
Our expenses increased by 43.11% from t 29,839.04 million in Fiscal 2023 to t42,702.39 million in Fiscal 2024 primarily due to an increase in cost of material consumed, employee benefit expense and finance cost. Although our total expense has increased in absolute terms however it has decreased as percentage of revenue due to economies of scale.
Cost of materials consumed
Our cost of materials consumed increased by 46.00% from t27,696.96 million in Fiscal 2023 to t40,437.44 million in Fiscal 2024 primarily due to an increase in customer demand for lead & lead alloy ingots.
Purchase of stock in trade
Our purchase of stock in trade decreased by 8.58% from t1,311.02 million in Fiscal 2023 to t1,198.50 million in Fiscal 2024 due to reduction of sale volume of traded goods i.e. coal.
Change in inventories of finished goods, work in progress and stock in trade.
Changes in inventories of finished goods and work-in-progress and stock in trade has decreased by 36.52% from t (1128.72) million in Fiscal 2023 to t (1,540.96) million in Fiscal 2024 primarily due higher inventory of finished goods amounting of t2,690.87 million in Fiscal 2024 as compared to t 576.45 million in Fiscal 2023.
Employee benefits expense
Our employee benefits expense increased by 124.58% from t 144.31 million in Fiscal 2023 to t 324.10 million in Fiscal 2024 primarily due to an increase in (i) remuneration to Key Managerial Personnel (including one-time pay-out of t90 million to our Promoter, Kamlesh Jain in Fiscal 2024), and (ii) salary, wages and allowance due to increase in number of employees from 378 in Fiscal 2023 to 408 in Fiscal 2024 and increment to the existing employees.
Finance costs
Our finance costs increased by 75.03% from Rs304.79 million in Fiscal 2023 to Rs 533.48 million in Fiscal 2024 primarily due to an increase in short term borrowings to cater the increase in volume of procurement of raw materials.
Depreciation and amortization expense
Our depreciation and amortization expenses increased by 15.98% from Rs135.30 million in Fiscal 2023 to Rs 156.92 million in Fiscal 2024 primarily due to an increase in the gross carrying value of plant and equipment from Rs 509.32 million in Fiscal 2023 to Rs645.38 million in Fiscal 2024 as lower write-off of asset values.
Other expenses
Our other expenses increased by 15.82 % from ^1,375.38 million in Fiscal 2023 to Rs 1,592.91 million in Fiscal 2024 primarily due to an increase in labour charges, power, fuel, and freight outwards due to increase in production volume. However, our other expenses as a percentage to revenue from operations decreased from 4.49 % in Fiscal 2023 to 3.59% in Fiscal 2024 indicating economies of scale.
(in f million)
| Particular | Fiscal 2024 | Fiscal 2023 |
| Power and fuel charges | 429.08 | 299.28 |
| Labour Charges | 503.01 | 462.38 |
| Freight Outwards | 230.31 | 168.49 |
| Others | 430.51 | 445.23 |
| Total | 1,592.91 | 1,375.38 |
Profit before tax for the year
As a result of the factors discussed above, our profit before tax for the year increased by 73.59% from Rs 1,236.22 million in Fiscal 2023 to Rs 2,146.02 million in Fiscal 2024.
Tax expenses
Our tax expenses increased by 59.61% from Rs 318.12 million in Fiscal 2023 to Rs 507.75 million in Fiscal 2024 primarily due to an increase in profit and deferred tax was Rs (22.71) million Fiscal 2024 compared to Rs (32.51) million in Fiscal 2023.
Profit after tax for the year
As a result of the factors discussed above, our profit after tax for the year increased by 78.44% from Rs 918.10 million in Fiscal 2023 to Rs 1,638.27 million in Fiscal 2024.
CASH FLOWS
The table below sets forth our cash flows for the periods indicated:
(in f million)
| Particulars | Fiscal | ||
| 2025 | 2024 | 2023 | |
| Net cash generated from operating activities | 35.82 | 333.62 | 108.66 |
| Net cash (used in)/ from investing activities | (259.67) | (933.68) | (86.53) |
| Net cash (used in)/ from financing activities | (354.32) | 1,358.93 | 31.99 |
| Net increase/ (decrease) in cash and cash equivalents | (578.17) | 758.87 | 54.12 |
| Cash and cash equivalents at the beginning of the year | 814.05 | 55.18 | 1.06 |
| Cash and cash equivalents at the end of the year | 235.88 | 814.05 | 55.18 |
Fiscal 2025
Cash flows from operating activities
In Fiscal 2025, while the Company reported a profit before tax of Rs 3,045.93 million, the net cash generated from operating activities stood at only Rs 35.82 million, reflecting the impact of significant non-cash adjustments and working capital movements. Key adjustments included finance costs of Rs 847.08 million, depreciation and amortisation of Rs 156.69 million, interest income of Rs (320.73) million, provision for diminution in value of investments of Rs (46.95) million, and mark-to-market fair value hedge adjustments of Rs (62.46) million. The sharp divergence was primarily driven by working capital changes, notably an increase in other assets of Rs 2,269.67 million and inventories of Rs 1,038.96 million, which were partly offset by a decrease in trade and other receivables of Rs 528.93 million and an increase in trade payables of Rs 752.80 million. Further movements included an increase in provisions of Rs 11.14 million and a decrease in other current liabilities of Rs 825.62 million, collectively resulting in lower cash flows from operations despite robust profitability
Cash flows from investing activities
The net cash used in investing activities in Fiscal 2025 was Rs 259.67 million, which was attributable primarily towards which was attributable primarily towards purchase of property, plant and equipment including capital work-in-progress and advances amounting to Rs 389.68 million and investments made during the year of Rs 175.86 million, partially offset by interest received of Rs 313.86 million and proceeds from sale of property, plant and equipment of Rs 52.52 million.
Cash flows from financing activities
The net cash flow from financing activities in Fiscal 2025 was Rs 354.32 million, which was attributable primarily to repayment of non-current borrowings amounting to Rs 1,356.36 million and interest paid of Rs 740.93 million, partially offset by proceeds from issue of optionally fully convertible debentures of Rs 1,300.00 million, procee ds from current borrowings of Rs 420.57 million and proceeds from issue of equity shares of Rs 33.54 million. .
Fiscal 2024
Cash flows from operating activities
The net cash generated from operating activities in Fiscal 2024 was Rs 333.62 million while profit before tax was Rs 2,146.02 million. The difference was attributable primarily to finance costs, depreciation and amortisation expense, interest income, unrealized gain on investments, mark to market adjustment on account of fair value hedge and gain on extinguishment of compulsory convertible preference shares.
Further there were also working capital changes including an increase in other assets of Rs 1,325.64 million, increase in inventories of Rs1,969.90 million, decrease in trade and other receivables of Rs 708.81 million, increase in loans and advance of Rs0.93 million decrease in trade payables of Rs 63.61 million, increase in provisions of Rs5.44 million and increase in other current liabilities of Rs 993.16 million
Cash flows from investing activities
The net cash used in investing activities in Fiscal 2024 was Rs933.68 million, which was attributable primarily towards acquisition of property, plant and equipment, proceeds from disposal of property, plant and equipment, interest received, investments made during the year, purchase of mutual funds /shares during the year, sale of mutual funds during the year, loans given during the year and investment in fixed deposits.
Cash flows from financing activities
The net cash flow from financing activities in Fiscal 2024 was Rs1,358.93 million, which was attributable primarily to proceeds from issue of equity shares, proceeds of non-current borrowings, repayment of non-current, borrowings, proceeds of current borrowings, repayment of current borrowings, payment towards to acquisition of shares of subsidiary, JGTPL payment of lease liability and interest paid.
Fiscal 2023
Cash flows from operating activities
The net cash generated from operating activities in Fiscal 2023 was Rs 108.66 million, while profit before tax was Rs 1,236.22 million. The difference was attributable primarily finance costs, depreciation and amortisation expense, interest income, unrealised gain on investments and mark to market adjustment on account of fair value hedge
Further there were also working capital changes including an increase in other assets of Rs 374.59 million, decrease in inventories of Rs11L51 million, increase in trade and other receivables of Rs 437.42 million, decrease in loans and advance of Rs16.75 million decrease in trade payables of Rs42.75 million, increase in provisions of Rs3.87 million and decrease in other current liabilities of Rs 221.90 million
Cash flows from investing activities
The net cash used in investing activities in Fiscal 2023 was Rs86.53 million, which was attributable primarily to acquisition of property, plant and equipment, proceeds from disposal of property, plant and equipment, interest received, purchase of mutual funds /shares during the year, sale of mutual funds during the year, loans given during the year and redemption of fixed deposits.
Cash flows from financing activities
The net cash flow from financing activities in Fiscal 2023 was Rs 31.99 million, which was attributable primarily Proceeds from issue of equity shares, proceeds of non-current borrowings, repayment of non-current borrowings, proceeds of current borrowings, repayment of current borrowings and interest paid
FINANCIAL INDEBTEDNESS
As of July 31, 2025, our Companys total outstanding borrowings were Rs 10,407.16 million. The table below sets forth details of our Companys outstanding borrowings:
(in Rs million, except percentage data)
| Category of borrowings | Amount sanctioned | Amount outstanding |
(in f million) |
||
| Funded | ||
| Secured | ||
| (i) Term Loans | 29.16 | 15.76 |
| (ii) Working Capital Facilities/Cash credits | 14,084.5 | 9,905.06 |
| Unsecured | ||
| (i) Treasury Limits/Hedging (LER) | 160 | - |
| (ii) Loan from director | - |
453.4 |
| (iii) Loan from other parties | - |
22.91 |
| Total | 14,273.66 | 10,397.14 |
| Non-Funded | ||
| Secured | ||
| SBLC for Buyers Credit | 455.5 | 10.02 |
| Unsecured | ||
| Treasury Limits/ Hedging (LER) | - | - |
| Total | 455.5 | 10.02 |
As certified by the Independent Chartered Accountant, pursuant to their certificate dated September 18, 2025.
(2> Notes:
1. The total borrowing limits availed includes Fund Based and Non-Fund based facilities that are used interchangeably by the company.
2. The bifurcation between Funded and Non-Funded credit facilities has been carried out based on explicit classification available in the bankers confirmation of balance. Where such bifurcation is not expressly mentioned, the classification has been made based on the end-use nature of the facility, standard banking nomenclature, and representation from the Company. The same has been documented for completeness. For instance, in respect of the credit facilities sanctioned by ICICI Bank to the Company, it is noted that the Standby Letter of Credit (SBLC) facility is expressly classified in the sanction documentation as a Non-Fund Based facility. However, the Company, based on the internal understanding of the structure and nature ofdeployment of the underlying facility, has interpreted the same to be in the nature of a Fund-Based facility. It is clarified thatfor the purposes of this certificate, the saidfacility has been disclosed herein under the category of Fund Based limits.
3. Although the confirmation of balance capture the sanctioned limits for Forward Contracts, the outstanding balances with respect to those have not been provided by the bankers.
4. With respect to borrowings from banks and financial institutions, the amounts reported above are based on direct balance confirmations obtained from the respective lenders. In the case of unsecured borrowings from parties other than banks or financial institutions, reliance has been placed on the Management Representation Letters and on the ledger extracts from the books of account of the Company and its subsidiaries. The figures reported above exclude accrued interest, except in respect of the SBLC facility availed from HDFC Bank, where the outstanding balance includes the interest component.
5. The details of Corporate Guarantees issued by the Company in relation to facilities availed by group companies or associates have been compiled based on internal records and confirmations provided by the management. Furthermore, guarantee obligations referenced in lender sanction documents have been duly considered and incorporated into our working file. However, in the absence of direct confirmations from lenders, primary reliance has been placed on the information furnished by the Company.
6. The Company has advanced loans to its subsidiaries as on July 31, 2025. Since the amounts are presented on a consolidated basis, the same is subsequently eliminated and hence not disclosed in this certificate.
For further details, see "Financial Indebtedness" on page 410.
CREDIT RATINGS
The cost and availability of capital is dependent, among other factors, on our short-term and long-term credit ratings. Ratings reflect a rating agencys opinion of our financial strength, operating performance, strategic position and our ability to meet our obligations. Details of our credit ratings during the last three Fiscals are provided below:
| Rating Agency | Instrument | Rating / Outlook | ||
| Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | ||
| CRISIL/Brickwork | Long term loans | CRISIL A/Stable | CRISIL A-/Positive | CRISIL A-/Stable |
| CRISIL/Brickwork | Short term loans | CRISIL A1 | CRISIL A2+ | CRISIL A2+ |
Also see "Risk Factors — A downgrade in sovereign credit rating of India and other jurisdictions we operate in may affect the trading price of the Equity Shares and our business and results of operations" on page 79.
CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS
The table below sets forth our undiscounted contractual maturities of significant financial liabilities as of March 31, 2025. These obligations primarily relate to our contractual maturities of significant financial liabilities such as borrowings, trade payables and other financial liabilities. The amounts are on a gross basis and undiscounted contractual cash flow includes contractual interest payment and excludes netting arrangements.
(in Rs million)
Undiscounted contractual maturities of significant financial liabilities as of March 31, 2025
| Particulars on demand | Less than 1 year | 1 to 5 years | More than 5 years | Total |
| Borrowings | 9,164.41 | 34.76 | - | 9,199.18 |
| Lease liabilities | 16.91 | 47.92 | 19.07 | 83.90 |
| Trade payables | 1,035.08 | - |
- |
1,035.08 |
| Other Financial Liabilities | 470.08 | 0.58 | - | 470.66 |
| Total | 10,686.48 | 83.26 | 19.07 | 10,788.82 |
The Company has secured loans from banks that contain loan covenants. A future breach of covenants may require the Company to repay the loan earlier than indicated in the above table.
CONTINGENT LIABILITIES AND COMMITMENTS
Set out below are our contingent liabilities and commitments as of March 31,2025.
| (in f million) | |
| Contingent Liabilities and commitments | As of March 31,2025 |
| Disputed Sales Tax / VAT demand/ Central Excise | 72.07 |
| Disputed income tax demand | 54.58 |
| Disputed GST Demand | 77.40 |
| Disputed Custom Demand | 13.35 |
| Export Obligation | - |
| Total | 217.40 |
Also see "Risk Factors — Our contingent liabilities as stated in our Restated Financial Statements could adversely affect our financial condition" on page 54.
OFF-BALANCE SHEET COMMITMENTS AND ARRANGEMENTS
We do not have any off-balance sheet arrangements, or other relationships with other entities that would have been established for the purpose of facilitating off-balance sheet arrangements.
RELATED PARTY TRANSACTIONS
We have engaged in the past, and may engage in the future, in transactions with related parties. For further information relating to our related party transactions, see "Related Party Disclosures" on page 389.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to the following risks arising from financial instruments:
1. Commodity price risk
2. Market risk
3. Interest rate risk
4. Foreign currency risk
5. Credit risk; and
6. Liquidity risk
Risk Management Framework
Financial risk management
The Company is exposed to market risk, credit risk and liquidity risk. The Company monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of risks.
The following disclosures summarize the Companys exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.
Commodity price risk
The Company is exposed to the movement of base metal commodity prices on the London Metal Exchange (LME). Any decline in the prices of the base metals that the Company produces and sells will have an immediate and direct impact on the profitability of the businesses. As a Company policy, the Company aims to sell the products at prevailing market prices. The commodity price risk in input commodity such as of Lead, Copper and Aluminium, is hedged on back-to-back basis through future derivative contracts on LME through registered brokers, ensuring no price risk for the business and the same is followed for output commodity. Hedging is used primarily as a risk management tool. The hedging activities are subject to strict limits set out by the Board and to a strictly defined internal control and monitoring mechanism. Decisions relating to hedging of commodities are taken at the Executive Committee level, basis clearly laid down guidelines.:
Economic Hedging of Prices realised on Commodity Contracts 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 conditions. Market risk mainly comprises of interest rate risk, currency risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, Trade and other Receivables and derivative financial instruments. The Companys activities expose it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and other price risk.
There has been no change to the Companys exposure to market risks or the manner in which these risks are being managed and measured.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the Company has insignificant interest bearing borrowings, the exposure to risk of changes in market interest rates is minimal.
Foreign currency risk
The company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising derivative contracts. The risk management objective of the company is to hedge risk of change in the foreign currency exchange rates associated with its direct & indirect transactions denominated in foreign currency. Since most of the transactions of the company are denominated in its functional currency (INR), any foreign exchange fluctuation affects the profitability of the Company and its financial position. Hedging provides stability to the financial performance by estimating the amount of future cash flows and reducing volatility. The Company does not enter into a foreign exchange transaction for speculative purposes i.e. without any actual / anticipated underlying exposures.
The carrying amounts of the companys foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:
(in Rs million, except percentage data)
| Currency | Liabilities as at | ||
| Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |
| EURO | |||
| - In Foreign Currency | - | - | - |
| - In Indian Rupee | - | - | - |
| AED | |||
| - In Foreign Currency | 45.85 | 0.00 | 0.00 |
| - In Indian Rupee | 1,066.06 | 0.18 | 0.18 |
| JPY | |||
| - In Foreign Currency | - | 0.00 | 0.16 |
| - In Indian Rupee | - | 0.00 | 0.10 |
| USD | |||
| - In Foreign Currency | 72.02 | 72.49 | 55.30 |
| - In Indian Rupee | 6,125.09 | 6,043.32 | 4,546.48 |
(in Rs million, except percentage data)
| Currency | Assets as at | ||
| Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |
| EURO | |||
| - In Foreign Currency | - | - | 0.02 |
| - In Indian Rupee | - | - | 2.11 |
| AED | |||
| - In Foreign Currency | 25.03 | - | - |
| - In Indian Rupee | 581.85 | - | - |
| JPY | |||
| - In Foreign Currency | - | - | 0.05 |
| Currency | Assets as at | ||
| Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |
| - In Indian Rupee | - |
- |
0.03 |
| USD | |||
| - In Foreign Currency | 62.17 | 69.52 | 33.31 |
| - In Indian Rupee | 5,191.88 | 5,795.89 | 2,738.79 |
Foreign Currency sensitivity analysis
The below table demonstrates the sensitivity to a 5% increase or decrease in the relevant foreign currency against INR, with all other variables held constant. The sensitivity analysis is prepared on the net unhedged exposure of the Company as at the reporting date. 5% represents managements assessment of reasonable possible change in foreign exchange rate.
(in Rs million, except percentage data)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| A. Financial Assets | |||
| EURO | - |
- |
0.11 |
| AED | - | - | - |
| JPY | - | - | 0.00 |
| USD | (268.84) | 289.79 | 136.98 |
| B. Financial Liabilities | |||
| EURO | - | - | - |
| AED | 0.01 | 0.01 | |
| USD | 306.25 | 302.17 | 227.32 |
| Net Impact (A-B) | (37.41) | (12.39) | (90.24) |
(in Rs million, except percentage data)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| A. Financial Assets | |||
| EURO | - | - | 0.08 |
| JPY | - | - | 0.00 |
| USD | 268.84 | 216.86 | 102.47 |
| AED | - |
- |
- |
| B. Financial Liabilities | |||
| AED | - | 0.01 | 0.01 |
| USD | 306.25 | 226.12 | 170.11 |
| Net Impact (A-B) | (37.41) | (9.27) | (67.57) |
In managements opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The companys exposure of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the companys short-term, medium-term and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
OTHER QUALITATIVE FACTORS
RECENT ACCOUNTING CHANGES
There are no recent accounting changes which would have been applicable to our Company from March 31, 2025 UNUSUAL OR INFREQUENT EVENTS OF TRANSACTIONS
Other than as described elsewhere in this Red Herring Prospectus, to our knowledge, there have been no other events or transactions that, may be described as "unusual" or "infrequent" and which materially affect or are likely to affect our revenue from operations.
SIGNIFICANT ECONOMIC CHANGES THAT MATERIALLY AFFECT OR ARE LIKELY TO AFFECT INCOME FROM CONTINUING OPERATIONS
Our business has been subject, and we expect it to continue to be subject, to significant economic changes that materially affect or are likely to affect income from continuing operations identified above in "-Significant Factors Affecting Our Financial Condition and Results of Operations" and the uncertainties described in "Risk Factors" on pages 415 and 35, respectively
KNOWN TRENDS OR UNCERTAINTIES
Our business has been affected, and we expect will continue to be affected by the trends identified above in "Significant Factors Affecting Our Financial Condition and Results of Operations" and the uncertainties described in "Risk Factors" on pages 415 and 35, respectively. 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 "Risk Factors" and "Our Business" on pages 35 and 216, and this section respectively, to our knowledge there are no known factors that may adversely affect our business prospects, results of operations and financial condition.
EXTENT TO WHICH MATERIAL INCREASES IN NET SALES OR REVENUE ARE DUE TO INCREASED SALES VOLUME, INTRODUCTION OF NEW PRODUCTS OR SERVICES OR INCREASED SALES PRICES
Changes in revenue for last three Fiscals are as described in "Fiscal 2025 compared to Fiscal 2024", and "Fiscal 2024 compared to Fiscal 2023" above on pages 435 and 438, respectively.
COMPETITION
For information on our competitive conditions and our competitors, see "Risk Factors", "Industry Overview and "Our Business on pages 35, 155 and 216.
SIGNIFICANT DEVELOPMENTS AFTER MARCH 31, 2025, THAT MAY AFFECT OUR FUTURE RESULTS OF OPERATIONS
Except as disclosed below and as disclosed elsewhere in this Red Herring Prospectus, to our knowledge, no circumstances have arisen since March 31, 2025, that materially and adversely affect or are likely to affect our operations, trading or profitability, or the value of our assets or our ability to pay our liabilities within the next 12 months.
1. On July 19, 2025, the Company has entered into a settlement agreement, for the exit of the Company from Shareholding of Sun Minerals due to disagreement between the transferor and the Company;
2. Subsequent to the reporting date of March 31, 2025, and prior to the date of approval of the restated financial statements, Jain Ikon Global Ventures (FZE) has discontinued its previously licensed activities and obtained approval for a new licensing activity from the relevant regulatory authority.
3. The Board of Directors of the Company approved the voluntary liquidation of Jain Ikon Global Venture (FZE), Sharjah on the meeting held on August 24, 2025.
4. The Company subscribed to the Charter of Jain Investments Private Limited, Sri Lanka in the year 20232024; no capital contribution has been remitted, no shares have been allotted, and no bank accounts have been opened using the Companys funds. The Board of Directors, vide minutes dated August 24, 2025, has resolved to initiate winding up of the said entity in accordance with applicable law, and any impact is limited to winding up related costs, if any.
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